Kovalska Group has received EUR27m in project financing from Invest International (Netherlands) for 10 years to develop production of aerated concrete blocks and panels in Rozvadova (Lviv region), the group’s CEO Sergiy Pilipenko said.
“The vital investment, which was supported by the Dutch Good Growth Fund and the Dutch government, will allow the company to implement the technology of production of environmentally friendly aerated concrete blocks and panels Aircrete Europe. This technology will work at the new production facility, which is currently under construction in Rozvadov in Lviv region,” Pilipenko wrote on Facebook on Thursday evening.
According to him, the total amount of investment in the project is EUR42 million.
As reported, in 2020, Kovalska closed a deal worth UAH 63 million to acquire Rozvadov Stroymaterialy LLC, which owns a production complex with a total area of about 140 hectares.
In early 2022, Kovalska started construction of two new plants (Siltek-branded dry mixes and concrete production) in Lviv region, with an estimated total investment of over EUR60 mln for the first phase alone. The Group also expected to resume the realization of the project of construction of aerated concrete plant in the production complex in Rozvadov.
Kovalska Industrial and Construction Group has been operating in the construction market of Ukraine since 1956. It unites more than 20 enterprises in the sphere of raw materials extraction, production and construction. Products are represented by the brands “Concrete from Kovalska”, “Avenue”, Siltek. Kovalska enterprises operate in Kyiv, Zhytomyr, Lviv and Chernihiv regions. The aerated concrete plant in the Kherson region has been out of operation since the beginning of the occupation.
The group also includes Kovalska Real Estate, which builds residential projects in Kyiv. Its portfolio includes more than 20 completed residential projects.
Kyiv-based industrial and construction group (ICG) Kovalska raised EUR32 mln credit from Invest International (the Netherlands) to build two factories in Lviv region, according to group general director Serhiy Pylypenko.
Kovalska started construction of two new factories (for dry mixes under Siltek trademark and for concrete production) in Lviv region at the beginning of 2022, with total investments supposed to exceed EUR60 mln just for the first stage. According to Pilipenko, as of February 2022, more than EUR15 million had already been invested for the purchase of equipment and building structures, but with the outbreak of war, the project was frozen.
“Finding funding under war conditions was a “starry-eyed” task. During shelling and air raids, we continued to negotiate with international financial institutions, but in response we heard only words of support and compassion. No one was prepared to give real money. But we got the result we needed. Invest International (the Netherlands) decided to grant EUR 32mln project financing to Kovalska”, Mr. Pilipenko said on Facebook.
According to him, the construction of the plants will start “closer to summer”.
PSG Kovalska has been working on the construction market of Ukraine since 1956. It combines more than 20 enterprises in the sphere of extraction of raw materials, production and construction. The production is presented by brands “Concrete from Kowalska”, “Avenue”, Siltek and others. The enterprises of Kowalska operate in Kyiv, Zhytomyr, Lviv, Kherson and Chernihiv regions.
In addition, the group includes Kovalska Real Estate, which is engaged in construction of residential buildings in Kiev. In its portfolio – more than 20 completed residential projects.
