Business news from Ukraine


Owner of one of Ukraine’s largest confectionery companies PJSC Production Association Konti (Donetsk region) Borys Kolesnikov plans to build a chocolate factory in the center of Ukraine. “We are thinking about expanding the range of both APK-Invest and Konti, and we want to build a large chocolate factory for Konti in the center of Ukraine, and several other APK-Invest production facilities, some of which will be unique for our country. I will not disclose details yet. As the construction is over, you’re invited to a ribbon-cutting ceremony,” the owner of the companies said in an interview with Radio NV.
As reported, PrJSC APK-Invest (Donetsk region), one of the largest pork producers in Ukraine, plans to increase pig population by 75%, to one million pigs. The company also intends to introduce several new technologies in agriculture, which are widely used in Western Europe and the United States, but are new not only for Ukraine, but also for many countries of Eastern Europe. APK-Invest (TM Myasna Vesna) is a vertically integrated agro-industrial company with a complete closed cycle for the production of chilled pork: from growing grain and making compound feeds to producing and selling meat products.
In 2017, APK-Invest increased its net profit by 3.5 times to UAH 889.1 million, net income by 37.9%, to UAH 2.664 billion.
According to the National Securities and Stock Market Commission’s information disclosure system, the direct owner of 98% of the PrJSC’s shares at the end of 2017 was Ukrinvest LLC, the beneficiaries of APK-Invest, according to the state register, are Borys Kolesnikov and his wife Svitlana. The Konti Group was founded in 1997. The main production assets are Donetsk, Kostiantynivka, Horlivka confectionery factories (Ukraine) and two factories in Kursk (Russia). The main brands are Bonjour desserts, SuperKontik and Belissimo cookies, BisKonti soft biscuits, Amour and Jack sweets.

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Mauntex Agro LLC (Kharkiv) plans to reconstruct the former complex for fattening cattle and build new facilities for a pig farm with a closed production cycle in the village Dniprovske, Dnipropetrovsk region, according to the website of the Ministry of Ecology and Natural Resources. According to its data, the area of the complex will be 18.14 hectares. It is assumed that the annual capacity of the pig farm will reach 36,370 piglets (piglets weighing 30-32 kg) for subsequent fattening and 30,638 fattened young pigs with a live weight of 115-120 kg for sale to the meat processing plant.
The construction of the pig farm is to be carried out in ten stages. The start of the production cycle is planned after the commissioning of all construction stages.
According to the unified state register of legal entities and individuals, the founders of Mauntex Agro are Serhiy Zapara and Petro Maliar. The company is engaged in breeding pigs, meat production, meat products sale, as well as growing grain and oilseeds.

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Odesa Regional State Administration has signed a memorandum of cooperation with the wind energy company Soratano Ukraine LLC. According to the press service of the administration, the document provides for the construction of a wind power plant in Bilhorod-Dnistrovsky district of Odesa region. The total amount of investments is about EUR250 million.
“We’ve agreed to cooperate in the implementation of a project, which provides for the construction of a 100 MW power plant,” the press service said citing Head of Odesa Regional State Administration Maksym Stepanov.
The report also notes that the power plant is designed for 30 wind generators. The investor plans to complete the construction until 2020.
According to open data, the founder of Soratano Ukraine LLC is Cypriot SORATANO LTD, the ultimate beneficiary is a citizen of Belgium residing in Ukraine. At the same time, there are no online references to the implementation of such projects by these companies. As reported, Odesa Regional State Administration agreed to implement a similar project with little-known Ukraine Power Resources.

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Agromars Complex LLC (Kyiv region) intends to build a plant for processing bio waste, according to the company’s website. “We discussed the design and construction of a bio waste processing plant with the leadership of the German company Kablitz. We agreed to build a plant for processing chicken manure with other waste to generate heat and electricity,” deputy technical director of the company Oleksandr Surmach said.
The company said the plant would process 330 tonnes of manure per day, producing 4.4 MWh of heat and 6.2 MWh of electricity. The preliminary construction period of the facility is about two years. The payback period is three or four years. For the construction of the plant, Agromars plans to raise funds from the European Bank for Reconstruction and Development. “Agromars plans to sell electricity to the state at a feed-in tariff. Today the German company is preparing a commercial offer. In the near future, we will sign a cooperation agreement,” the company said.
Agromars is the second largest producer of poultry in Ukraine (the Havrylivski Kurchata brand), a vertically integrated holding with a closed production cycle.

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Only innovative entrepreneurs can buy apartments in UNIT.City Innovation Park. Vasyl Khmelnytsky, an entrepreneur and founder of UNIT.City, made this statement in an interview for AIN. “We have already built and sold about three million square meters and know this market well. We want to turn the idea into reality: to sell apartments only to people who promote innovations. When they go out for a walk here in the evening, they will start discussing something and can come up with a brilliant idea together. We see a blue ocean in it: we create the enabling environment where a success case can meet another success case, resulting in something greater. This is an experiment,” the businessman underlined.
He said he realized that such approach would put some restrictions on the company and narrow down a range of potential buyers. However, it is essential for him to make UNIT.City a home for visionaries, not for officials or people who deal with trade or cash-out transactions.
Vasyl Khmelnytsky placed emphasis that UNIT.City meant not simply buildings, but a big infrastructure facility focused on innovations and education.
When asked if people who deal with IT innovations and earn €20,000-40,000 a year can afford housing in UNIT.City, Mr Khmelnytsky said that it would be quite possible. With $1,500 per square meter, a 50 sq m apartment would cost $75,000. With a four-year installment plan offered by the businessman, it would cost about $20,000 a year.
According to Vasyl Khmelnytsky, UNIT.City is a long-term project where one can expect return on investment in several years only. Therefore, it is hard to go without international partners. To this end, the company has initially focused on global standards in construction technologies and transparency in financing.
The businessman pointed out that he planned to extend these practices to other regions of Ukraine. The company has already started building UNIT.City in Lviv and plans to do so in Kharkiv. Vasyl Khmelnytsky said $50 million has been invested in the project up to date. According to his estimates, total investment will amount to $700-800 million to be partly financed with office rental income and sales of apartments.
Vasyl Khmelnytsky said he had a strategy to develop UNIT.City. The park is expected to be completed in 2025. However, much depends on the demand for buildings and on the political environment, he said.
“UNIT.City is now completing two buildings, with 75% of each being already commissioned. This is an excellent performance for the local market, as it is typical for Ukraine to commission buildings for two years. Now we have a request for several new buildings at once, so a couple of construction projects are underway simultaneously. However, tomorrow something can happen, for example, the political situation will change in the country, bringing our entire strategy down. Our further actions may change. Therefore, I do not make any fixed plans. The company has the opportunity to build residential facilities here for two years or for five years — everything will depend on the demand,” Mr Khmelnytsky said, describing the project in a nutshell.

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Ukraine Power Resources and Yuzhne Energy intend to build wind power plants with an installed capacity of 120 and 72 megawatts in the Lymansky district of Odesa region, the press service of the Ukrainian Wind Energy Association (UWEA) has said, following the signing of a memorandum between these companies and Odesa Regional State Administration.
According to UWEA estimates, the total investment in these two projects will be about EUR 270 million.
The press service did not say when the projects would be implemented.
Ukraine Power Resources was founded by American Peter A. Gish and Yuzhne Energy by Lithuanian Egidijus Simutis.

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