Business news from Ukraine

Business news from Ukraine

STATE-OWNED ARTYOMSOL SEES 2.6% RISE IN SALT PRODUCTION

State-owned enterprise Artyomsol (Donetsk region) produced over 1.48 million tonnes of salt in January-September, which is 2.6% more than a year ago.
According to the report on the website of the state-owned enterprise, from the beginning of the year, Artyomsol produced 338,500 tonnes of bulk milled salt, which is 20.7% higher than in January-September 2018.
The output of salt packaged in flexible containers increased 13%, to 49,300 tonnes, salt blocks – by 15%, to 2,300 tonnes.
At the same time, according to the information of the SOE for the first nine months of this year, the production of packaged salt decreased by 8.9%, to 134,700 tonnes. Production of salt packed in bags was less than 4.9%, salt briquettes – 18.7% compared with the same period a year earlier. In addition, iodized salt production was 13.1% less (only 41,700 tonnes).
The state-owned enterprise said that 763,100 tonnes of salt were shipped to foreign consumers in January-September 2019, which is 8% more compared to the same period in 2018.
Hungary, Poland, Slovakia, and Romania remain the main importers of Artyomsol products.
“The results of the enterprise’s work were significantly affected by the steadily increasing cost of transportation of goods by rail by Ukrzaliznytsia. This factor reduces the competitiveness of salt of the Ukrainian producer,” the company said.
Artyomsol is the largest enterprise for extraction and sale of sodium chloride (NaCl) in Central and Eastern Europe. Its production facilities are located in Soledar (Donetsk region). The company exports products to 15 countries.

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DUBINSKY SUBMITS BILLS ANNULLING MILITARY LEVY TO RADA

Deputy Head of the parliamentary committee for finances, tax and customs policies (the Servant of the People parliamentary faction) Oleksandr Dubinsky last week registered bills No. 2252 and No. 2253 annulling the military levy.

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DARNITSA PHARMACEUTICAL COMPANY PLANS TO DEVELOP IN FOREIGN MARKETS

Darnitsa pharmaceutical company plans to develop in foreign markets, in particular through the acquisition of companies or joint development. This was reported by head of the board of directors of Darnitsa Group Dmytro Shymkiv in Kyiv. He noted that the purchase of foreign companies is one of the “instruments to increase the share of exports.”
According to him, Darnitsa is currently conducting due diligence of several companies, and although Shymkiv did not provide details, he added that the company is studying the issue of acquiring companies not only abroad.
Currently, Darnitsa has about 365 registrations in foreign markets.
“Not all Ukrainian pharmaceutical manufacturers will withstand the requirements for 2D coding of pharmaceutical packaging. In 2020, we will see interesting processes in the Ukrainian market,” he said.
According to him, in 2020 the company plans to invest about EUR4 million in development and research.
As reported, in 2018 Darnitsa invested about EUR3.5 million in development and research, while annually the company invests about 10% of gross income in this direction.
Darnitsa pharmaceutical company is one of the ten largest pharmaceutical manufacturers in Ukraine and the top ten largest hospital suppliers. Its ultimate beneficiary is Hlib Zahoriy.

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UKRAINE INTERNATIONAL AIRLINES READY TO BUY UKRAINIAN MASS-PRODUCED AIRCRAF

Ukraine International Airlines (UIA) is ready to purchase medium-haul aircraft of Ukrainian production, provided they are launched into mass production, chairman of the supervisory board and co-owner of UIA Aron Mayberg has said in an interview with Mind.ua.
“UIA is the only airline in Ukraine that is actively and consistently developing domestic flights. It’s another matter that with the abolition of VAT, the company will be able to more actively increase the fleet for domestic flights. The preliminary plans for next year include replenishment of the fleet with at least two Embraer 195s, and if all will turn out favorably this figure may increase to four,” he said.
According to Mayberg, UIA is interested in buying medium-haul aircraft, the cost of transportation in which in terms of one seat will be $30-40. This will make it possible to sell tickets from $20-22 to $70-80 on a flight.
At the same time, he emphasized that mass production is a prerequisite for the purchase of Ukrainian aircraft by airlines.
“It’s not only a matter of cost. Aircraft need to be mass-produced, and not be made in three individual planes, for which it is not clear where to get pilots, spare parts and how to service them. Serial production is not developed in one day. This is a long and complex process. We really need a medium-haul aircraft with a capacity of 70-100 seats. If Ukraine makes such a successful aircraft, we would buy it,” Mayberg said.

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IRON ORE MINES OF UKRAINE’S METINVEST INCREASE OUTPUT IN JAN-SEPT 2019

Iron ore mines run by Ukraine’s Metinvest raised output in January-September 2019. An industry source told Interfax that Northern Mining (Pivnichny GOK) produced 6.542 million tonnes of merchant iron ore pellets in the 9M, up 1% year-on-year, including 422,000 tonnes in September; and 9.147 million tonnes of iron or concentrate, up 13.4%, including 923,000 tonnes in September.
Central Mining (Central GOK) raised merchant pellet output 0.1% in 9M 2019 to 1.779 million tonnes and concentrate 1.8% to 3.259 million tonnes, including respectively 209,000 tonnes and 390,000 tonnes in September.
Inhulets Mining (INGOK) reduced concentrate output 0.9% in 9M to 8.351 million tonnes, including 918,000 tonnes in September.
The vertically integrated Metinvest’s main shareholders are System Capital Management (SCM, 71.24%) and Smart Holding (23.76%).

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MILK PRODUCTION IN UKRAINE IN JAN-SEPT DECREASES BY 3.5%

Milk production in Ukraine in January-September 2019 decreased by 3.5% compared to the same period in 2018, to 7.61 million tonnes.
According to the State Statistics Service, in January-September 2019, farmers produced 2.42 million tonnes of meat (live weight), which is 6.4% more than in the same period of 2018.
Egg production grew by 4.3%, to 13.02 billion units.

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