Business news from Ukraine

Business news from Ukraine

British-based Ferrexpo raises production of pellets by 5%

British-based Ferrexpo Plc, which in Ukraine, in particular, controls Poltava and Yeristovo ore mining and processing plants (Poltava GOK and Yeristovo GOK), in January-November of this year, according to recent data, increased the total production of pellets by 5% compared to the same the period of 2019, to 10.16 million tonnes.

A representative of the company informed Interfax-Ukraine that during this period the output of concentrate increased by 4.8%, to 12.7 million tonnes.

In November, the company produced 980,000 tonnes of pellets and 1.2 million tonnes of concentrate.

According to the company, Ferrexpo in the first quarter of 2020 compared to the same period in 2019 increased its total pellet production by 7.4%, to 2.725 million tonnes. In particular, the production of pellets with a 65% iron content was 2.652 million tonnes (an increase of 9.1%), with a 62% iron content some 73,330 tonnes (a decrease of 31.8%).

In the second quarter of this year, Ferrexpo increased its pellet production by 5.4% from the previous quarter, to 2.873 million tonnes, in particular it produced 2.848 million tonnes of pellets with a 65% iron content (an increase of 7.4%), 24,700 tonnes with a 62% iron content (a decrease of 66.3%).

In the third quarter of 2020, total pellet production decreased by 12% compared to the second quarter, to 2.537 million tonnes from 2.873 million tonnes, while no pellets with a 62% iron were produced.

Ferrexpo is an iron ore company with assets in Ukraine.

Ferrexpo owns 100% of shares in Poltava GOK, 100% in Yeristovo GOK and 99.9% in Belanovo GOK.

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M-30 road to be built next year

President of Ukraine Volodymyr Zelensky has announced that in 2021, on the 30th anniversary of Ukraine’s independence, within the framework of the Big Construction program, it is planned to open the longest highway in the country – M-30 – from Stry in Lviv region to Izvaryne in Luhansk region.

“Our whole philosophy is aimed at uniting Ukraine, and this is what the infrastructure is about. We want to unite the west and the east with one large high-speed highway which is called M-30. This will be the longest road in Ukraine – 1,400 kilometers. It will go from Stry, but so far only to reach Pokrovsk, because 200 kilometers of this road is in the temporarily occupied part of Luhansk region,” Zelensky said during a working trip to Zaporizhia.

Deputy Head of the President’s Office Kyrylo Tymoshenko said that part of the route was restored in 2020, the rest will be restored next year. According to him, even without taking into account 200 km in the temporarily occupied territory, this route is still the longest in Ukraine.

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SHARE OF BUSINESS AND PREMIUM CLASS HOUSING IN KYIV UP TO 35% IN 2020

Some 20 new residential complexes appeared in the primary housing market in the business and premium class segment in 2020, increasing their share in the overall market structure by 4 and 1 percentage points (p.p.), respectively.
“Now the market knows about almost 90 business class residential complexes compared to the supply of 70 residential complexes at the end of last year, thus the share of this class in the market structure rose by 4 points (up to 29%), and the share of premium class by one point (up to 6%). There is a growing trend towards better and more comfortable housing,” NAI Ukraine told Interfax-Ukraine.
So, according to its data, up to 30% of layouts in the supply of business and premium projects are options with increased comfort, providing for the presence of terraces, apartments with improved view characteristics, increased areas, penthouses and two-level housing. The increased areas of premises allow the use of various functional and design solutions.
For example, an average two-room business class apartment has an area of 70-80 sq m, and premium up to 90 sq m. Three-room apartments range from 90 to 150 sq m, and it is here that consumers’ demands are concentrated.
“The main discovery of AIA Home Design Trends Survey, which summed up the U.S. housing market in 2020, was the catastrophic drop in popularity of dense buildings and smart solutions, and among the design trends – the increased size and number of windows. Significant spending time at home due to the pandemic and remote work prompted many to reconsider their housing requirements in favor of increasing the area, space, attractiveness of the environment. These trends are equally relevant for the Ukrainian market,” Maryna Hurevych, the head of the consulting department at NAI Ukraine, said.

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DNIPROTIAZHMASH TO INCREASE SALE OF COKE-CHEMICAL EQUIPMENT

JSC Dniprotiazhmash (Dnipro), a large enterprise of heavy engineering, part of the scientific and production group Dniprotechservice, in 2020 plans to increase the number of products shipped for the coke industry by 24% (or 153 units) compared to 2019, to 795 units, Viacheslav Pronsky, the marketing director of the enterprise, has said.
“We’ve mastered the equipment for coke oven batteries relatively recently – we had to do it after the related plant Slovtiazhmash in Sloviansk (Donetsk region), also part of Dniprotechservice, unfortunately, did not survive the conflict time, a particularly acute period of events in the east of Ukraine in 2014-2015. We have adopted technologies, documentation and expertise from our colleagues, and for the fifth year we have been producing this equipment,” he told the Interfax-Ukraine agency.
According to the top manager, in 2020 Dniprotiazhmash intends to increase the share of coke-chemical equipment in the total sales of equipment for the mining and metallurgical sector from 23% in 2019 to 25% (or about UAH 186 million) in the current year, which was also facilitated by the shipment of two coal loading machines worth more than UAH 30 million each one.
“Our customers are almost all coke-chemical enterprises in Ukraine (in Avdiyivka, Dnipro, Zaporizhia, Kamyanske, Kryvy Rih and Mariupol) and Kazakhstan (Temirtau), as well as several enterprises in Russia. This year, negotiations have begun, and we are already participating in tenders for coke-chemical products for Western consumers, in particular for all of ArcelorMittal’s assets in Europe,” Pronsky said.

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UKRAINE INTERNATIONAL AIRLINES LAUNCHES CORPORATE AIR TOURS OVER KIEV

Ukraine International Airlines (UIA, Kyiv) is launching corporate air excursions over Kyiv lasting one hour.
According to the airline’s website, departure and arrival will be carried out from Boryspil International Airport on board an Embraer 195 aircraft with a maximum capacity of 116 seats.
The service is available only for corporate clients, the cost of one seat with a full load of the aircraft is the equivalent of $ 70 in hryvnias.
“A flight over Kyiv is not only an incredible experience, but also an opportunity to learn how aviation works from professionals. During an hour-long excursion, the pilots will tell what they have only heard about before: what are flight maps, echelon and briefing, what kind of weather is considered unfavorable for the flight, and much more,” UIA said in a statement.
The airline also offers custom pricing.

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UKRAINE TO PURCHASE 0.5 MLN ANTIGEN TESTS

Ukraine received $3.7 million from the Global Fund to Fight AIDS, Tuberculosis and Malaria, which will allow purchasing 500,000 antigen tests with full kits of personal protective equipment and 160 oxygen concentrators at the beginning of 2021, according to the Health Ministry’s website.
According to the statement, within the cooperation with the Global Fund in 2021-2023, Ukraine will receive another $135 million, which will be aimed at achieving several strategic goals: ensuring access to timely detection, diagnosis and treatment of tuberculosis and HIV, as well as the introduction of effective models of care oriented on patient.

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