Smart Maritime Group (SMG) of Smart-Holding, combining Kherson and Mykolaiv shipyards, earlier planned in 2020 to increase revenue from sales of products by about 20% compared to 2019, to UAH 600 million from more than UAH 500 million, however, due to the deterioration of the situation production volumes may decrease.
According to Dmytro Krasnikov, the CEO of Smart Maritime Group, the key task was to develop an updated business development strategy in two main areas: maintaining and developing the company’s main profile – shipbuilding and ship repairs, as well as diversification of activities involving all the existing potential of our shipyards.
According to him, the company has expertise in the manufacture of large metal structures, its specialized unit previously participated in a number of projects for the development of road infrastructure in Ukraine, was involved in the manufacture of equipment for mining and processing plants. This is one of the promising areas. The development of the strategy is at the final stage, in the near future it will be submitted for approval to the management company Smart-Holding.
The company strengthens the team, expects the arrival of several top managers in sales and human resources.
Concerning the influence of coronavirus on the company’s work, its head pointed to a decrease in economic activity, there is a lack of liquidity in the market, many clients do not have funds to finance repairs and work. The volume of orders is declining, many contractors, especially from Europe, took a break. General uncertainty leads to the fact that investment projects are frozen.
Given this, SMG adopted a cost-cutting program if the situation drags on for a long time, although it is forecasted that by the third quarter the economic activity of all entities, including the company’s customers, will begin to recover.
