Metal companies of Ukraine plan in October 2019 to boost steel smelting by 5.4% compared with the forecast for September, to 1.95 million tonnes from 1.85 million tonnes. According to the Ukrmetallurgprom association, the plan for October foresees growth in production of pig iron by 5.7%, to 1.85 million tonnes from 1.75 million tonnes, and growth in production of rolled steel by 3% compared with the forecast for September, to 1.7 million tonnes from 1.65 million tonnes.
The association said that 42.44 million tonnes of iron ore concentrate were produced in January-August (106% compared to the same period in 2018), 21.11 million tonnes of sinter (102%), 14.76 million tonnes of pellets (103%), 6.87 million tonnes of gross coke (96%), 13.73 million tonnes of pig iron (101%), 14.66 million tonnes of steel (105%), 12.52 million tonnes of rolled products (102%), 740,000 tonnes of pipe products (101%).
In August, 1.83 million tonnes of pig iron were produced (111% compared to July 2019), 1.94 million tonnes of steel (109%), 1.54 million tonnes of rolled metal (102%).
As of September 10, 2019, of the main existing production facilities in operation are: 18 of 21 blast furnaces, eight of nine open-hearth furnaces, 14 of 16 converters, 5 of 15 electric furnaces and 15 of 15 continuous casting machines (CCM).
In August 2019, about 2.4 million tonnes of iron ore raw materials were delivered to metal enterprises (100% compared to July 2019). There was no import of iron ore in August.
Interpipe tube and wheel company has been prequalified by Tatweer Petroleum and has been included in the list of approved linear pipe suppliers for the Bahrain market.
“We have been prequalified by Tatweer Petroleum due to our experience in the region. Earlier, Interpipe completed a number of orders for the largest Middle East shipbuilding company ASRY (Arab Shipbuilding & Repair Yard). Now we plan to increase our presence in the pipe market for the oil and gas industry in Bahrain,” the director of the pipe division of the group, Vera Smal, said.
At the same time, the report does not specify the volume of pipe deliveries within the framework of completed orders, as well as the expected volumes of product sales to this region.
Interpipe is a Ukrainian industrial company, a manufacturer of steel pipes and railway wheels. In 2018, Interpipe sold 857,000 tonnes of finished products, including 189,000 tonnes of railway products.
Biopharma, a top-ten pharmaceutical producer in Ukraine specializing in plasma-based, recombinant and other drugs, has officially opened its innovative fractionator in Bila Tserkva (Kyiv region), the only biopharmaceutical plant of its kind in Eastern Europe and the near region. There are no plasma fractionation plants in any neighboring countries – the closest are in Austria, South Africa and China. This unique plasma fractionation technology enables the plasma component of human blood to be processed to extract life-saving drugs, requires advanced research and development, GMP-certified equipment and facilities, and investments exceeding $75 million.
“September 20 will become a new page in the modern scientific and industrial history of Ukraine, as not just a new production facility was launched, – a new science-based industry was launched based on high technologies. This puts Ukraine on par with countries such as the USA, Austria, Germany and allows Ukraine to enter the world market with medicines, the production of which requires its own R&D base, high culture of production, development of donor infrastructure according with the highest standards. Today, Ukraine has proved that it is capable of that!” – Kostyantyn Efymenko, president of Biopharma group of companies emphasized.
Biopharma’s new facility is the first and only plasma fractionation plant in Ukraine that will have the capacity to process up to one million liters of plasma per year. This will fully meet the country’s internal needs for plasma-based drugs, which is an important element of national security of Ukraine. By replacing imported drugs with high-quality Ukraine-processed plasma products, Biopharma estimates that the country will save up to $100 million per year. In addition, the launch of the new plant will allow Biopharma to double the significant amount of local and state taxes paid, making the сompany the largest taxpayer in Bila Tserkva, contributing more than all local businesses combined.
“We believe in the high potential of Ukraine and its pharmaceutical industry in particular. Together with our partners, we haven’t stopped investing and, in the difficult times of the new history, continued to systematically develop the company. I am proud that Biopharma has mastered the advanced and very sophisticated technology that is available in few countries in the world. This is why we’ll be able to compete not only on the local market, but also on the global one”, – Vasyl Khmelnytsky, founder of UFuture, said.
Lenna Koszarny, Founding Partner and CEO, Horizon Capital, added: “Horizon Capital’s EEGF II Fund and Dutch development finance bank FMO invested in Biopharma in 2012 to address the serious issue of 120 tons of plasma thrown out each year not processed into life-saving drugs, because a plant like this did not exist in Ukraine. We were attracted by the vision of operating shareholder Kostyantyn Efymenko and through his leadership and commitment as well as the dedication of the Company’s committed shareholders and excellent management team, this vision has become a reality. In June 2015, Biopharma launched a state-of-the art greenfield non-plasma plant, and today, we are proud to launch the most modern plasma fractionation plant in Central and Eastern Europe and contribute to Biopharma’s success”.
The new plant is equipped with modern machinery produced by the world-known manufacturers such as Stilmas, Olsa, GEA Westfalia, General Electric healthcare, Pall, Steriline. It has three production lines for albumin, immunoglobulin and factor VIII drugs that are critical for victims of severe injuries and burns, for people fighting cancer, hemophilia, for pregnant women and other patients.
Linda Broekhuizen, Chief Investment Officer of FMO, says: “FMO congratulates the shareholders and management of Biopharma with the launch of the new fractionator plant. A great milestone that underlines the company’s entrepreneurial drive and commitment to investing in growth, even though the Ukrainian economy has undergone tremendous challenges. This state-of-the-art facility provides jobs and reduces dependence from imports, both healthy ingredients to further economic growth.”
The opening ceremony was attended by more than 1,000 guests, including government representatives, medical professionals, the business community from Ukraine and from over 20 countries.
Contact for the media: Tetyana Shvets, +38067 604 3 555.
ADDITIONAL INFORMATION
Biopharma is a Ukrainian immunobiological pharmaceutical company that develops and manufactures drugs based on human blood, recombinant drugs, probiotics based on spore-forming bacteria and traditional drugs. The company produces about 20 million packages of drugs per year. The number of employees – more than 500 people. The company exports drugs to 36 countries. At least 4 times a year, Biopharma is a subject to quality review by foreign and Ukrainian auditors.
UFuture is a holding company of Ukrainian entrepreneur Vasyl Khmelnytsky that integrates his business and impact-investment projects. The Company has a diversified portfolio of assets in real estate, industry, infrastructure, renewable energy, pharmaceuticals, and IT. As of today, UFuture’s assets are estimated at $550 million with total capitalization of the businesses invested in exceeding $1 billion.
Horizon Capital is the leading private equity firm in Ukraine, backed by over 40 institutional investors in four funds with over $850 million in assets under management. Its Ukraine-focused funds have invested over $700 million in 140 companies employing over 52,000 people in Ukraine and neighboring countries. Horizon Capital is a value-added investor, backing visionary entrepreneurs leading transformational businesses in Ukraine and the near region.
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a close to 50-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.7 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally.
Vice-President for Energy Union Maroš Šefčovič has said that it was managed to establish positive, constructive working atmosphere during the EU-Ukraine-Russia trilateral gas talks in Brussels between the Russian and Ukraine economy ministers. “We have agreed that there will be an inter-ministerial consultation with the two companies [NY and Russia’s Gazprom] participating to hammer out the remaining interlinked issues. We would resume our meeting at political level by the end of October when, I hope, we will have more progress achieved on the remaining issues,” he said at a press conference in Brussels after the third round of the trilateral gas talks on Thursday.
According to him, it is necessary that the case be organized with a good chronology, and it is necessary that the Ukrainians do a good job of transmitting European rules and unbundling of the gas transportation system.
The EU also explained to the Russian side that, from a legal point of view, the extension of the current contract will not be possible, because there will be other counterparties, and Naftogaz will no longer exist from January 1. The current contract does not comply with the rules of the EU, he said. New solutions should be found, Šefčovič said.
He said that the duration of a future contract is important for investment into the Ukrainian transit system.
“To conclude, there was good atmosphere and constructive spirit today that, I believe, creates a necessary precondition for the next round of trilateral gas talks and for having everything settled before the end of this year,” he said.
UFuture investment group of Ukrainian entrepreneur Vasyl Khmelnytsky has no plan to expand its portfolio of investments in the pharmaceutical industry, while will develop the Biopharma project.
“I do not plan to invest in other pharmaceutical projects, so far only Biopharma, need to be professional in one thing,” the founder of UFuture Investment Group, Vasyl Khmelnytsky, told Interfax-Ukraine on the sidelines of the International Forum on Blood Components and Preparations in Kyiv.
At the same time, Khmelnytsky noted that he will be able to evaluate the effectiveness of investments in Biopharma after the start of the fractionator plant.
“How satisfied we are with the investments in Biopharma will be seen in a year, two or three, when the plant starts working. Now $75 million has been invested, a fractionator has been built,” he said.
Khmelnytsky stressed that this project of the Biopharma plant is “a plus for the country and a plus for the pharmaceutical industry.”
“We will pay taxes in the country, people will work in Ukraine, they will receive wages, the medicines that we produce will be of the same high quality as European ones, but cheaper by at least 30%,” he said.
The founder of UFuture noted that the country should create conditions for enterprises to be built in Ukraine, including pharmaceutical.
“We don’t need to buy drugs abroad so that they earn added value there. We’d better produce them here to get jobs, taxes and cheaper drugs, which can then be exported to different countries,” he said.
As reported, Biopharma opens a fractionator plant that will produce blood plasma derived medicines. The factory installed equipment from the world manufacturers in the industry: Stilmas, Olsa, GEA Westfalia, General Electric healthcare, Pall, and Steriline.
The Verkhovna Rada of Ukraine on September 19 extended the law on financial restructuring for three years. Some 300 MPs voted for the corresponding decision.
According to the website of the National Bank of Ukraine (NBU), the bill supported by the MPs also provides for the clarification of legislation in order to more optimally conduct the relevant procedures by the banks. In particular, it is allowed to conduct a joint restructuring procedure for several debtors who are related parties but have different creditors, the document clarifies conditions for the assignment of claims in a financial restructuring procedure and the norms regarding concentration, which should facilitate the restructuring process in terms of coordination with the Antimonopoly Committee of Ukraine. In addition, the rules regarding the determination of the moment of reimbursement for creditors’ losses, providing for the satisfaction of claims through mortgage, were clarified.
According to the report, the National Bank believes that the next, no less important task, is creating a full-fledged secondary market for distressed debts and developing the corresponding infrastructure.
“It is necessary not only to solve the problems of working with existing bad debts, but also to think about the future. With the intensification of lending, new non-performing loans (NPL) will inevitably appear, so it is necessary to create civilized conditions and instruments for effective work with NPL in order to prevent their accumulation on the balance sheets of banks in the future,” the NBU press service said citing Kateryna Rozhkova, the first deputy governor of the NBU.
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