President of Ukraine Petro Poroshenko at a meeting with Chief Executive Officer of DP World Sultan Ahmed Bin Sulayem has discussed the prospects of investing in Ukraine.
According to the presidential press service, Poroshenko noted the participation of the DP World official in a meeting of the National Investment Council and thanked him for his efforts to improve the investment climate in Ukraine.
The head of state noted the importance of increasing opportunities for investment in Ukraine and invited DP World to invest not only in the development of port infrastructure facilities.
In addition, the parties discussed the company’s plans to participate in the privatization program in Ukraine and continue investing in the state economy in the field of railway transport and agriculture.
Sultan Ahmed Bin Sulayem, in turn, thanked the president of Ukraine for the opportunity to participate in the meeting of the National Investment Council, noting the benefits of such meetings for business representatives.
DP World is one of the world’s largest port operators.
Myronivsky Hliboproduct (MHP) plans to invest over $250 million in 2018 in the launch of the second line at Vinnytsia poultry farm, a biogas complex in Vinnytsia and modernization of existing production facilitiles.
“Total investment this year would be over $250 million. Some $160-170 million will be sent to launch the second line of Vinnytsia poultry farm in a month and a half, near $20 million – to build the second biogas complex in Vinnytsia. The rest of the investment will be sent to modernize existing production facilities,” MHP CFO Viktoria Kapeliushna told Interfax-Ukraine.
According to her, now MHP is considering proposals for the purchase of new assets in several countries.
“The other day the Commercial Court of Rennes (France) decided to satisfy the proposal to buy French Doux – not ours, but of a consortium represented by the French manufacturer LDC and the company from Saudi Arabia Al-Munajem .It is not a matter of selling the company, but selling assets. We were in the process and we saw how things were going. We are still monitoring the European market, the Middle East market, but we are not yet ready to make statements. We are considering proposals in several countries,” the CFO said.
The board’s plans for appointment Roberto Banfi, who previously was in charge of the Middle East region in a large Brazilian company BRF, to the position of director in the middle of June are related to the interest of MHP in the markets of this region.
“The Middle East is interesting. We see growth potential in the markets of this region both for small carcasses, quarters and for processed products. The trade and distribution company has been operating in the UAE for over a year,” Kapeliushna said.
She said that in 2018, as for EBITDA the agroholding intends to reach the level of 2017, possibly 5% higher. As MHP expects, the driver will be the increase in production volume associated with the launch of the second line of the Vinnytsia poultry farm.
MHP is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
The company supplies cooled halved carcasses of hens to the European market. They are processed there, including at its enterprises in the Netherlands and Slovakia.
The Sikorsky Kyiv international airport (Zhuliany) seeks to invest UAH 500 million to expand Terminal A in 2018-2019, Board Chairman Denys Kostrzhevsky has said.
“This year capital investment in the amount of some UAH 500 million will be sent to expand Terminal A. We plan to commission the terminal before May 2019,” he said in an exclusive interview with Interfax-Ukraine.
Kostrzhevsky also recalled that in 2017, Master-Avia managing company built a new apron with an area of 25,000 square meters in the airport.
He said that Master-Avia conducted the thorough analysis and designed a project on reconstruction of the runway of the airport, enlarging it by 600 meters. The runway would be able to service aircraft of Airbus А321 and Boeing 737-900 type.
“We need to settle the legal and technical issues: to finish the allocation of a land parcel for the airport and the extension of the runway in the conditions of the rough terrain. This is difficult to do, but the project includes these works and it is likely that it would be done. The approximate cost of this reconstruction is EUR 84 million. The airport asked the Kyiv City Administration to provide the required sum or start the process of attracting an investor,” Kostrzhevsky said.
He also said that be believes it logical to reconstruct the runway of the airport using budget funds.
“The state or the city is interested in the airport being developed and operating. If the decision on the public private partnership is made, it would depend on the proposal of officials if Master-Avia participates in it or not,” he said.
Kyiv International Airport (Zhuliany) is located in the business center of the capital, seven km from the city center. It is the second largest airport in Ukraine in terms of the number of flights and passenger traffic.
The airport has three terminals with a total area is 21,000 square meters. Terminal B is separate facility for business-class service, it is part of the Fixed Base Operator (FBO) system. The airport’s runway is able to handle B-737 and A-320 aircraft.
Austria’s HEAD International Holding GmbH, the subsidiary of Head UK Ltd, plans to invest EUR80 million in the construction of its “new largest plant” in the territory of Vinnytsia industrial park, First Deputy Prime Minister, Minister of Economic Development and Trade of Ukraine Stepan Kubiv said after a meeting with the company representatives.
“The project in Ukraine will be implemented in three stages: in 2019-2020 there will be the construction of 1-1.5 hectares of new production facilities. It is planned to attract about 200-300 people,” he wrote on Facebook.
According to the official, in 2020-2021 it is planned to build an additional 1-1.5 hectares of new production facilities and create jobs for 600 people, and during the last third stage in 2022-2023 to build another 1.5-2 hectares of new production facilities and expand the working staff to 1,000 people.
Kubiv added that after the completion of the last stage of the project, HEAD plans to annually spend about UAH 150 million on wages for workers.
“After the successful implementation of the project, the company will also consider the possibility of transferring some of its teams in the field of digital technologies or IT to Vinnytsia and moving additional production facilities to Ukraine,” he said.
Head UK Ltd. is one of the world’s leading manufacturers and sellers of sports equipment and clothing. The company’s business includes five divisions: winter sports, racket games, diving, sportswear and licensing. The trademarks of the company are HEAD, Penn, Tyrolia, Mares, SSI, and rEvo.
T.B.Fruit, one of the largest processors of fruits and berries in Ukraine, intends to invest EUR3-5 million in the launch of a mandarin processing plant with a capacity of 50,000-60,000 tonnes in Georgia by December 2018. “Mandarins will be processed in Georgia and imported to Ukraine. In late autumn this year we’ll start production. This will be the processing of 50,000-60,000 tonnes of mandarins,” group founder Taras Barschovsky told Interfax-Ukraine.
According to him, mandarin juice produced in Georgia will be bottled in Ukraine under the trademark Galicia.
The founder of the group pointed out that 35-40% of T.B.Fruit’s business is concentrated in Ukraine.
T.B.Fruit Group was established in July 2011, uniting all assets of Taras Barschovsky: Yablunevy Dar, T.B.Fruit Dwikozy fruit processing plant in Poland, Tank Trans Ukraine and Tank Trans Polska, which transport bulk cargo by road, and a fruit-growing complex, which includes apple-trees, cherry-trees, and strawberry and raspberry fields on 700 hectares.
T.B.Fruit Group owns eight juice concentrate plants in Ukraine, Moldova and Poland.
T.B.Fruit produces freshly squeezed juice under the Galicia trademark in Ukraine.
The Milk Alliance Group preliminarily plans to boost investment by over 20% in 2018 compared with 2017, to UAH 148 million. “Last year, we spent UAH 122 million on capital investments and the development of our enterprises. This year we planned UAH 148 million, but I see that we will spend about UAH 170 million. We have not yet invested in line with the capital investment plan, since the appetite comes with eating Chairman of the Supervisory Board of the Group Serhiy Vovchenko told reporters. Total capital investments of the group since 2012 have amounted to UAH 485 million.
According to the head of the council, in the second half of 2018 a new line will be launched at the Bashtanka Cheese Factory.
“Under the order of the Arab countries, we have started making mozzarella, which is subject to deep freezing, in blocks for their pizzerias. Now they also asked for grated frozen cheese and mozzarella. This equipment for slicing and shock freezing will cost about EUR 70,000. We have already ordered the equipment. It was made for us under an individual order,” Vovchenko said.
The chairman of the council said that the plans to expand the capacities at the Yagotyn butter factory and the plant for the production of the Yagotynske dlia Dietei brand.
“This year in Yagotyn we are completing the project of a high-tech warehouse. The construction stage was completed before the New Year. Now we are equipping it with process automation, storage and shipment units. We are talking about logistics processes. This is a multimillion-dollar investment. At the Yagotyn factory we will install a new cold room for butter this year,” Vovchenko said. He said that the group plans to increase the area of the Yagotynske dlia Dietei plant by 30% (village Zgurivka, Kyiv region). “We are increasing the plant’s area, first of all, to improve logistics. We intend to install one more ultrafiltration unit and an additional packaging line for “spoonful yogurts” where we can produce up to eight tonnes of products per day. The technical capacity will increase by 15%,” Vovchenko said.
He said that the group seeks to finish the project in Q3 2018. “We have stopped producing milk in glass bottles. It is expensive in production, and instead we launched another packaging line last year. Now we have milk and cream in packages for 200 grams. This year we are putting a new line ordered in Israel, for the Hopsy trademark, “spoonful yogurts” and desserts. It will cost us $1 million with installation,” he said.
Milk Alliance was established in June 2006 as a holding company with a charter capital of UAH 23.5 million and a balance sheet, 99.9% of which consists of long-term financial investments.
