Business news from Ukraine

Business news from Ukraine

SWEDISH SCANIA PLANS TO BOOST UKRAINIAN HEAVY TRUCK MARKET SHARE TO 14% THIS YEAR

Swedish Scania, one of the world’s leading manufacturers of heavy duty trucks, plans to increase its share in the segment of new heavy trucks (full weight over 16 tonnes) to 14% this year, while in 2017 it was 11.4%, Commercial director of Scania Ukraine Andriy Kurylo has told Interfax-Ukraine. According to him, in 2017 in the Scania Ukraine dealer network sold 323 trucks in Ukraine, while the market of these trucks was 2,834 units (all brands, including Western brands, as well as MAZ, KrAZ, KAMAZ and Chinese manufacturers), including 1,838 vehicles of the Western brands (the “Great Seven” plus Ford).
According to Kurylo, this year the market of new heavy trucks can grow by at least 50%, since already by the results of the first quarter the market showed this increase in comparison with the same period of the last year.
“Scania in Ukraine is among the leaders of the market, and our share in it has been stable for the past two years – about 20% among Western brands and about 11% among all manufacturers. But if in 2016 truck sales in Ukraine were low, then in 2017 thanks to deferred demand, the market has almost doubled,” Kurylo said.
He stressed that this year the company plans to continue working with “top customers.”
“This year we have quite aggressive plans. We intend to increase our share primarily by launching a new series of trucks in Ukraine, which has been operating in Europe for two years and has very positive feedback,” the commercial director said.
Scania introduced in Ukraine a new complete line of new generation trucks for all types of transportation, in the creation of which more than SEK 20 billion was invested, late March.
Commenting on the development of the company’s dealer network in Ukraine, Kurylo said that today, Scania has 11 centers, including three opened last year and one this year. He also said that the company offers customers not only new, but also used Scania trucks. The distribution company Scania Ukraine LLC has been operating on the Ukrainian market since 1998 (before that there was a representative office since 1993). SCANIA is part of the division of Volkswagen Truck & Bus GmbH and one of the world’s leading manufacturers of trucks and buses with weight of over 16 tonnes.

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UKRAINE POWER RESOURCES VOWS TO ATTRACT EUR 140 MLN IN WIND POWER IN ODESA REGION

Ukraine Power Resources plans to build a wind power plant in Odesa region, Odesa Regional State Administration’s press service has reported.
According to the report, the construction of wind turbines is to begin this autumn. According to the project, it is planned to place 26 wind turbines with a total capacity of 100 megawatts in Lymansky district between the villages of Vyzyrka and Liubopil. Representatives of the company have already met with the leadership of the communities and villages located around the territory where it is planned to implement the project, the regional administration said.
“We have chosen Odesa region, because it has excellent natural wind resources. We are now choosing a turbine manufacturer and holding talks with investors who can provide the financing. EUR 140 million in investment will be attracted at the first stage of the project. In October we will get a building permit and immediately start it,” Ukraine Power Resources CEO Peter Gish said.
According to the company’s website, Gish is a co-founder of Ukraine Power Resources. Over the last two decades, he has successfully participated in the development of over 2.1 GWs of wind power capacity in six countries.

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EBRD COULD SIGN AGREEMENT WITH UKRZALIZNYTSIA TO PROVIDE FUNDS TO BUY WAGONS

The European Bank for Reconstruction and Development (EBRD) could sign one more agreement with public joint-stock company Ukrzaliznytsia in 2018 to provide funds to buy wagons. An Interfax-Ukraine correspondent has reported that Deputy Director of the EBRD for Ukraine Marina Petrov gave the information at the Ukrainian Infrastructure Forum 2018 in Kyiv.
“We hope that in the near term we will sign one more deal on the purchase of wagons,” she said, not specifying the details of the future agreement.
Petrov also said that the annual total volume of lending in the infrastructure area of Ukraine by the EBRD is up to EUR 300 million.
“We expect that EUR 150-300 million, which we usually make in the transport sector a year, we would make this year,” Petrov said.
As reported, Ukrzaliznytsia seeks to buy around 9,000 new wagons in 2018, including 5,180 from third parties. 3,400 out of 5,180 wagons to be bought from third parties some will be bought using the planned loan of the EBRD.

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UKRAINE SEES 4.7% RISE IN COKE PRODUCTION

Ukrainian by-product coke plants increased production of lump coke with 6% moisture by 4.7% in January-March 2018 year-over-year, to 2.705 million tonnes.
The Ukrkoks association of -product coke enterprises (Dnipro) told Interfax-Ukraine that some 930,000 tonnes of coke was made in March.
Ukrkoks Director General Anatoliy Starovoit said that the plants stably produce coke. Avdiyivka by-product coke plant and ArcelorMittal Kryvyi Rih are loaded almost in full.
ArcelorMittal Kryvyi Rih launched the reconstructed coke-oven battery five. It is planned that the battery will reach its full capacity in May, Starovoit said.
He said that in January-March 2018 some 233,000 tonnes of coke was imported.
“ArcelorMittal Kryvyi Rih did not import coke in March… Azovstal and Dniprovsky steel works imported coke last month,” he said.