Business news from Ukraine

“Zaporizhstal” intends to improve quality of steel products

Zaporizhstal Iron and Steel Works intends to implement a number of measures to improve the quality of rolled metal products in the near future.

According to the company, Zaporizhstal hosted Metinvest’s Customer Focus Conference, where representatives of the company’s relevant departments and enterprises discussed projects to improve the quality of steel products.

“Zaporizhstal was not chosen as a venue for the conference by chance, as today the plant is one of the key metal producers in Ukraine. In fact, by the end of 2023, every second ton of Ukrainian steel was produced at Zaporizhstal. This demonstrates the scale and role of the enterprise for the national mining and metals industry, but at the same time requires even greater responsibility from Zaporizhzhia steelmakers in terms of quality and customer focus,” the company said in a statement.

It is also specified that the conference resulted in a number of applied solutions to achieve and maintain consistently high quality of Zaporizhstal’s rolled steel products, which will be implemented in the near future.

As reported, Zaporizhstal has spent over UAH 1.2 billion since the start of the full-scale invasion to upgrade production equipment and wastewater treatment facilities at the complex. At the same time, in 2023, the plant invested UAH 750 million in projects to maintain the stability and reliability of the company’s main technological facilities, which is half as much as in 2022, with an investment volume of UAH 500 million.

During the full-scale invasion, the program focused on maintaining and updating equipment to ensure its reliable operation in unforeseen conditions.

In 2024, Zaporizhstal plans to implement a capital investment program totaling about one billion hryvnias. The program is aimed at maintaining and modernizing equipment, implementing functional programs for occupational health and safety, information technology, and social sphere.

“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries around the world.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management PrJSC (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

,

Passenger flow through western border of Ukraine in January 2023, thousand

Passenger flow through western border of Ukraine in January 2023, thousand

Source: Open4Business.com.ua and experts.news

Chornomorsk port resumes exporting agricultural products

Shipment of agricultural products from the Chornomorsk seaport (Odesa region), whose infrastructure was severely damaged by a Russian missile attack last week, is gradually resuming, Spike Brokers brokerage company reported in a telegram channel.

The brokers noted that in 2023, the share of the Chornomorsk port in the structure of export shipments by water transport was 36%, while the Danube ports accounted for 32%, the Odesa port – 17%, and the Pivdenny port – 15%.

“Over the past week, freight rates for the transportation of corn by ‘coaster’ to the east coast of Italy decreased by $3, to Spain and Israel – by $2. The freight for the transportation of grain by panamaxes from the deep-water ports of Odesa to China and Vietnam decreased by $4,” the experts noted.

As of April 22, the rates for transportation from the port of Chornomorsk to Italy (east coast) amounted to $29-30 (30-35 thousand tons), Spain (Mediterranean) – $30-32 (30-35 thousand tons), Vietnam – $52-54 (60-65 thousand tons), China – $54-56 (60-65 thousand tons).

At the same time, the market rates for transportation by freight from the port of Izmail to the port of Constanta (Romania) as of the specified date are EUR18-22 (4.5-5 thousand tons), to the ports of the Mediterranean coast of Spain – $35-37 (30-35 thousand tons). The rates of transportation from the port of Reni to the ports of Israel range from $33-35 (30-35 thsd tonnes), Spike Brokers stated.

According to a grain market source, who wished to remain anonymous, such a restriction could lead to temporary disruptions in the delivery of products to the terminals of Kernel, Risoil and Viterra groups. In addition, the shutdown of grain terminals could lead to a reduction in April exports of Ukrainian grain via the Black Sea grain corridor to 5 million tons, compared to the expected 8 million tons.

As reported, on April 10, the Russian occupiers damaged railroad sidings to a number of grain terminals located in the port of Chornomorsk during the morning shelling of Odesa region. This resulted in temporary disruptions in the delivery of products to the terminals of Kernel, Risoil and Viterra.

“On the day of the shelling, Ukrzaliznytsia introduced a convention on freight transportation that was to be in effect until April 13, and then extended twice – first until April 17, then until April 22, after which it was lifted.

, , ,

Swiss parliament approves $5.5 bln aid to Ukraine

A Swiss parliamentary committee voted late on Thursday night in favor of allocating 5 billion Swiss francs ($5.5 billion) in aid to Ukraine, Reuters reports.

“A Swiss parliamentary committee voted late on Thursday night to allocate 5 billion Swiss francs ($5.5 billion) in aid to Ukraine as part of a broader package aimed at boosting the defense capabilities of neutral Switzerland. Backed by lawmakers from center-left and center-right parties, the upper house’s security committee approved the package, which provides 10.1 billion francs in additional funds for the army, along with the amount for Ukraine,” it said.

The plan was adopted by 8 votes to 5, with right-wing parties opposed. It is noted that it will have to pass a number of parliamentary hurdles before the plan becomes law.

“The parliament statement said the multi-billion dollar package was conceived as an extraordinary contribution to Swiss security and ‘peace in Europe’ in the wake of the war Russia is waging against Ukraine,” the statement said.

The parliament also said that the Ukrainian part of the package is aimed at supporting the reconstruction and repair ofeveryday infrastructure necessary for life in Ukraine.

, ,

Ukrainian agricultural holding MHP establishes a company in Albania

On Thursday, the Antimonopoly Committee of Ukraine (AMCU) allowed Slovenian poultry producer Perutnina Ptuj, part of MHP agricultural holding, and Balfin – Balkan Finance Investment Group sh.p.k. (Tirana, Albania) to establish a joint venture in Albania, Perutnina Ptuj Albania sh.p.k., the agency’s website reports.

In addition, it is reported that the AMCU has approved the indirect acquisition of more than 50% in four other companies through Perutnina Ptuj Albania sh.p.k: Driza sh.p.k., Fresh Chicken Albania 2019 sh.p.k., Industria Foragjere (VEAF) sh.a., EURO ALB 2009 SHPK (Fier, Albania).

The newly established joint venture Perutnina Ptuj Albania sh.p.k. also intends to acquire the assets of Kompleksi Patos and Qendra Prinderore, owned by businessman Gikmet Driza.

The Albanian Antimonopoly Authority has already approved the deal at a meeting on March 19.

“The proposed transaction will not increase the market power of any of the parties involved in the transaction and is not expected to create problems for competition in terms of horizontal and vertical effects,” the Albanian regulator said in a statement.

According to it, the partnership agreement on the future transaction was signed between Perutnina Ptuj d.o.o. and Balfin on December 8, 2023. According to the document, Perutnina Ptuj will own 81% and Balfin 19% in the Perutnina Ptuj Albania JV, which will be jointly controlled by both companies.

Then, on December 29, Perutnina Ptuj and Balfin signed an agreement with Hikmet and Sula Driza to purchase 100% of the shares of Driza Sh.p.k., Fresh Chicken Albania 2019 sh.p.k. and Industria Foragjere (VEAF) sh.a.

The transfer of assets will take place on the day of fulfillment of all preliminary conditions of the agreement, including all necessary approvals and permits.

It is indicated that Perutnina Ptuj Albania sh.p.k. specializes in investing in poultry farming. It will be engaged in poultry breeding, production of feed, meat and poultry products, trade and services.

Currently, Perutnina operates in Albania only through Kosmonte Foods Tirana distributor.

Balfin SHPK is one of the leading enterprises in Albania. The company specializes in investing in financial instruments, real estate, tangible and intangible assets, providing consulting services and is owned by Samir Mane. The company operates in the retail, real estate, asset management, banking, and energy sectors and was not previously present in the Albanian poultry market.

Driza Sh.p.k. specializes in the cultivation, breeding and production of poultry meat, poultry products and by-products, as well as the purchase, processing, packaging and storage of agricultural and livestock products. Owned by Albanian citizens Hikmet, Sulo and Besnik Driza.

Fresh Chicken Albania 2019 sh.p.k. specializes in poultry slaughter, procurement, processing, packaging and cold storage of agricultural and livestock products, all types of semi-finished and finished products of plant or animal origin. The company is owned by Sulo Driz.

Industria Foragjere, d.d. (VEAF) is engaged in the construction of feed mills, production and trade (wholesale and retail) of feeds, concentrates, vitamins and raw materials (fish meal, meat meal, cereals, bran and other similar products). It is owned by Hikmet Driza and Driza.

EURO ALB 2009 sh.p.k. is engaged in growing crops, purchasing, processing and cold storage of agricultural and livestock products. In addition, it specializes in the production of poultry meat, products and products of their processing, wholesale and retail in the country and abroad, etc. The company is owned by Besnik Driza.

MHP is the largest chicken producer in Ukraine. It also produces grain, sunflower oil, and processed meat products. Its shares are traded on the main floor of the London Stock Exchange. MHP supplies chilled chicken half-carcasses to the European market, which are processed, in particular, at its facilities in the Netherlands and Slovakia. In February 2019, the holding completed the acquisition of Slovenian company Perutnina Ptuj.

In the first nine months of 2023, MHP posted a net profit of $122 million compared to a loss of $269 million in the same period of 2022, while its revenue increased by 22% to $2 billion 294 million and EBITDA by 20% to $329 million.

In particular, the European segment (Perutnina Ptuj) increased its revenue by 19% to $411 million and its EBITDA by 17% to $68 million.

,

Almost 226,000 applications for weapons permits filed by Ukrainians in 8 months

Almost 226 thousand applications for weapons permits have been filed by Ukrainians in 8 months, according to the Ministry of Internal Affairs. More than 210 thousand of them were approved. The average number of applications per month has increased 1.8 times compared to the first months of the Unified Weapons Register.

93% of the applications submitted to the Register between June 2023 and February 2024 were approved, which is more than 210 thousand permits.

In the first three months of operation, Ukrainians submitted more than 57 thousand applications, of which 87% were approved. Later, the demand for weapons grew. Thus, over the next 5 months, Ukrainians submitted significantly more applications – more than 168 thousand applications. Of these, more than 160 thousand or 95% were approved.

Most often, requests are submitted through the Single Window, but despite the growth in the number of people wishing to obtain a gun permit, its popularity has declined. Over 65 thousand people have used the service in the 8 months of its existence. More than half of the applications were received in the first three months of the site’s operation.

The situation is similar with applications through the chatbot: more than 14 thousand people have applied there since then. 62% of applications were submitted in the first 3 months. To illustrate, during the first months of the project’s existence, every sixth application was submitted through the bot, while in the next 5 months, every 30 applications were submitted through the bot.

On June 23, the electronic Unified Firearms Register was launched in Ukraine. Since then, citizens have been able to submit an application for a permit to purchase, store, or carry weapons, report a change of residence in the context of the place of storage of weapons, and apply for a permit extension online. In addition, the service provides information about their registered weapons.