Business news from Ukraine

DANOSHA TO START BUILDING BIOGAS PLANT IN 2017

KYIV. March 16 (Interfax-Ukraine) – Danosha, a company with 100% Danish capital (Ivano-Frankivsk region), plans to begin the construction of a biogas plant with a capacity of 1.1 MW in 2017.

“We are starting the construction of the second biogas plant. One is already running at one of our largest pig complexes in the village of Kopanky, Ivano-Frankivsk region. The construction of the next biogas plant will be started this year. It should be more advanced than the previous one,” head of the department of external relations and company development Liubov Bohachevska told reporters at the sixth IFC International Forum on Food Safety in Kyiv.

According to her, the construction of the plant is designed for two years. Funds for the project implementation are to be attracted from NEFCO international financial organization and IFU investment fund.

Danosha intends to expand production. At present the total number of pigs is 180,000 animals.

“We are planning to expand, but we need new farms. We plan to build them and would like to increase livestock numbers by 11,900 animals,” she said.

She clarified now Danosha continues seeking a land plot for building a meat processing plant.

VISTEC MACHINE BUILDING PLANT SIGNIFICANTLY INCREASES NET PROFIT IN 2016

KYIV. March 16 (Interfax-Ukraine) – PJSC Vistec machine building plant (Bakhmut, Donetsk region), in 2016, according to preliminary data, saw a net profit of UAH 34.14 million, while a year earlier it was UAH 280,000.

According to information on the agenda of a general meeting of shareholders scheduled for April 13, the company’s retained earnings by the beginning of this year amounted to UAH 62.77 million.

Current liabilities last year slightly decreased, to UAH 124.3 million, long-term liabilities rose to UAH 1.08 million.

Its total debtor indebtedness by January 1, 2017 amounted to UAH 106.66 million, which is 10.4% more than a year earlier, while the value of assets increased by 18%, to UAH 205.04 million.

The number of the plant personnel reduced by 110 people, to 709 employees.

PJSC Vistec specializes in production of round-link chains for various purposes, welding electrodes, metal cutting tools and goods made of metal powder. The enterprise also has forge-press and wire-nail production.

UKRAINE TO CONSIDER CREATION OF INDUSTRIAL PARK ON MODEL OF ISTANBUL – UKRAINIAN PM

KYIV. March 16 (Interfax-Ukraine) – Ukrainian authorities would consider the possibility of creating an industrial park on the model of the Istanbul park.

The press service of the Cabinet of Ministers of Ukraine reported that on Wednesday as part of his official visit to Turkey Ukrainian Prime Minister Volodymyr Groysman visited the Istanbul industrial park and met top managers of the SAHA Istanbul, the association of defense and aerospace complex.

Groysman said that Ukrainian science, especially in the aerospace sector, aircraft building and military area is very fruitful.

He said that Ukraine and Turkey are all-sufficient to make a joint product if the countries unite their opportunities.

After the meeting the Ukrainian prime minister instructed to study the possibilities of creating the industrial park in Ukraine on the model of the park in Istanbul, which would discover the entire potential of Ukrainian science and technologies.

Top managers of the Istanbul park expressed their readiness to provide a free-of-charge place in the Istanbul park for one university and one enterprise from Ukraine.

UKRAINE, TURKEY AGREE ON MUTUAL ENTRY OF CITIZENS BY ID-CARDS

KYIV. March 15 (Interfax) – Ukraine and Turkey have agreed on the possibility of mutual trips of citizens on the basis of internal passports in the form of ID cards, Spokesman for the PM Dmytro Stoliarchuk wrote on Twitter.

A corresponding agreement was signed between the governments of the two countries in Ankara on Tuesday during the official visit of Prime Minister Volodymyr Groysman.

“Ukraine and Turkey signed an agreement that simplified the mutual trips of citizens. Now it is possible to travel without visas using ID-cards,” Stoliarchuk wrote.

Besides, Ministries of Education of Ukraine and Turkey signed a cooperation agreement.

“The Education Ministries of Ukraine and Turkey opened the way to the creation of joint master’s programs in strategically important spheres,” the press secretary of the Ukrainian prime minister wrote.

The press service of the Cabinet of Ministers of Ukraine said that the agreement on the entry of citizens stipulates that citizens of Ukraine and citizens of Turkey, who use passports in the form of ID cards with a contactless electronic chip, will be able to enter, leave, follow transit and stay without visas on the territory of Turkey and Ukraine, respectively, for up to 90 days within 180 days.

The provisions of the memorandum on cooperation between the Ministry of Education and Science of Ukraine and the Council of Higher Education of Turkey provide for the creation of joint bachelor, master and postgraduate programs in the fields of nuclear energy, nuclear safety, aviation and space technologies, support for the study and teaching of Ukrainian and Turkish languages, the implementation of academic exchange programs.

APK-INVEST SEES 3.9-FOLD RISE IN NET PROFIT IN 2016

KYIV. March 15 (Interfax-Ukraine) – Private joint-stock company APK-Invest (Donetsk region), a large pork producer in Ukraine, saw a 3.9-fold rise in net profit, to UAH 252.2 million.

The company said that its assets last year grew by 35.7%, to UAH 4.41 billion.

Total bills receivable came to UAH 239.67 million compared to UAH 181.4 million in 2015.

Current liabilities grew by 37%, reaching UAH 738.1 million. The company posted a 3.6-fold rise in undistributed profit, to UAH 373.1 million.

APK-Invest is a vertically integrated agro-industrial company with a complete closed cycle of production of chilled pork from growing grain and animal feed production to production and sale of meat goods.

The company has production facilities in Krasnoarmiysk and Kostiantynivka districts of Donetsk region.

The main owner is Borys Kolesnikov.

BUSINESSMAN YURUSHEV’S ZHYTOMYR FURNITURE FACTORY TO BE BUILT IN ZHYTOMYR-SKHID INDUSTRIAL PARK

KYIV. March 15 (Interfax-Ukraine) – The Zhytomyr furniture factory that will manufacture furniture from the products made by Korosten MDF (medium density fibreboard) plant LLC (Zhytomyr region) will be created on the territory of the Zhytomyr-Skhid industrial park, the press service of Zhytomyr City Council has reported.

Last week the lawmakers of the city council signed a memorandum of partnership with Zhytomyr furniture factory LLC.

Some 1,250 jobs will be created.

“The investor promises to pay average salary of at least UAH 8,000 a month. The new furniture plant of the European model is not only UAH 2.5 billion of investment in the city economy, but this is the creation of new jobs. The factory will be the leader in furniture production in Ukraine,” the press service said, citing Zhytomyr Mayor Serhiy Sukhomlyn.

According to the register, Zhytomyr furniture factory LLC with the charter capital of UAH 1 million was registered on March 1, 2017. 99% of its capital belongs to Ukrbudinvest venture corporate investment fund affiliated with Leonid Yurushev and 1% belongs to Yurushev.

The ultimate beneficiary of Zhytomyr furniture factory LLC and Korosten MDF Plant is Yurushev.

Korosten MDF Plant manufactures medium density fibreboard (300,000 cubic meters a year) and laminate flooring (6 million cubic meters) under the REZULT trademark.

Yurushev is also the ultimate beneficiary of Ukrainian Holding Wood Sawing Company LLC that processes 1.2 million cubic meters of timber a year. It produces commercially sawn timber under the REZULT brand and wood pellets.

The Zhytomyr-Skhid industrial park on almost 25 ha was registered by the Economic Development and Trade Ministry in October 2016.