Business news from Ukraine

“Nibulon” will change management structure of elevators

One of the largest grain market operators in Ukraine, Nibulon JV LLC (Mykolaiv), will change its elevator management model to optimize resource use and create an effective management system, the agricultural holding’s press service reported on Facebook.

According to the report, in 2024, Nibulon’s 22 elevators will be organized into six groups:

– Mykolaiv: the largest group, which includes the Transshipment Terminal, Kolosivsky Elevator, Vradiyivsky Elevator, Novoodesskyi and Voznesenskyi branches;

– Kremenchuk: Kremenchuk, Globinsk and Hradyzk branches;

– Poltava region: Romodan, Reshetylivka, Skorokhodiv, and Maryanivka branches;

– Cherkasy: Zolotonosha, Pereyaslav, Vitove branches;

– Zakhidna: currently unites the Teteriv, Smotrych, and Denikhiv branches, and will be joined by Khmilnyk after the expansion of storage capacity and installation of a dryer scheduled for fall 2024;

– Zaporizhzhia-Dnipro: Ternivska, Khortytsia and Zelenodolska branches.

The only branch that will continue to operate independently is Bessarabian, as it is located at a great distance from all other elevator groups and is focused on grain transshipment rather than storage and processing.

Each group will now have a unified administration, which will include a director, chief accountant and technical staff: chief engineer and chief power engineer. It will also be serviced by a service team responsible for scheduled and overhaul repairs at branches.

Each group of elevators will be assigned a shift team consisting of grain handling operators and other specialists who will assist the branches during the busiest periods of operation.

The department plans to automate all elevators, equip them with sensors that will record the equipment’s service life and automatically transfer this data to a single service center. The center will be staffed by dispatchers who will be responsible for monitoring the operation of all elevators’ equipment.

“As a result, we expect to increase the efficiency of the elevator business through optimization and automation, reduce the cost of services through the rational use of resources and increase salaries for branch teams by 30-40%,” Nibulon summarized.

Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.

In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.

Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.

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Ukreximbank and Nibulon agree on long-term debt restructuring

State-owned Ukreximbank (Kyiv) and one of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), signed agreements on long-term debt restructuring of the company’s financial obligations in late January, the press service of the financial institution reported on Tuesday.

“Thanks to this, the parties ensured, on the one hand, a working asset and the return of funds to the state bank, and, on the other hand, an acceptable level of financial burden for one of the market leaders, which makes it possible for it to function successfully,” the state bank’s website reports.

Andriy Vadatursky, CEO of the agricultural holding, noted that Ukreximbank is the company’s largest creditor, and cooperation with the bank started 27 years ago.

In particular, he recalled that earlier, thanks to the support of Ukreximbank, Nibulon managed to build a sea transshipment terminal in Mykolaiv, and in 2013-2014 the company’s largest loan portfolio to the bank was recorded at $165 million, which, according to him, “characterizes the level of cooperation and mutual understanding that we have achieved in previous years and confirmed now during the restructuring.”

“I am convinced that now we should not wait for help from abroad, we should look for support and understanding on our territory. We have found this support in our Ukrainian banks, which are the embodiment of government policy,” Vadatursky stated.

JV Nibulon LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries. In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.

Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.

According to the National Bank of Ukraine, as of November 1, 2023, Ukreximbank ranked 3rd (UAH 255.01 billion) among 63 banks operating in the country in terms of total assets.

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“Nibulon” buys Scania tractors and STAS semi-trailers

One of the largest grain market operators in Ukraine, Nibulon JV LLC (Mykolaiv), has purchased 76 Scania R450 Euro 5 tractors and 64 semi-trailers from the Belgian manufacturer STAS as part of its strategy to develop its logistics business, the grain trader’s press service reported on Facebook.

According to Nibulon, the first batch of purchases amounts to 30 sets, of which five have already entered Ukrainian roads.

The company explained that due to the reorientation of logistics chains in the war, Nibulon is forced to use combined routes, including the transportation of grain by truck. The company uses such routes in its southern branches, in particular, in Voznesenskiy and Novoodesskiy river terminals, as well as from the terminal in Mykolaiv, which currently serves as a dry port, to Bessarabskiy.

To minimize the load on the roads and environmental impact, agricultural products from all water elevators located along the Dnipro River and blocked due to the explosion of the Kakhovka hydroelectric power station are transported by road to the elevators for rail shipment.

To reduce the weight of the road train and increase the payload, 30 of the 64 semi-trailers are all aluminum, including the frame. All tractors are equipped with 13-liter economical engines with an output of 450 hp and a torque of 2350 Nm and a Scania Opticruise automatic transmission.

In addition, for safe driving, an AEB emergency braking system, headlights and LED fog lights are installed. 7 units of equipment are used in the ADR FL configuration, which will be used for fuel transportation.

“Thanks to a diversified transport system that includes road, rail and water transport, Nibulon has managed to build new supply chains, reduce the cost of our logistics and thus increase the purchase prices for farmers,” says Sergiy Kalkutin, Logistics Director.

According to him, in 2024, the logistics department plans to completely renew the truck fleet of the freight transport service. In particular, trucks from Scania Ukraine will be an effective enhancement of the business, Nibulon believes.

At the conclusion of the agreement, Håkan Jyde, CEO of Scania Ukraine, noted that the company is proud to partner with Nibulon.

“We are pleased to be involved in the realization of an important goal – to ensure food exports in the interests of the Ukrainian economy and global food security,” said Håkan Jyde. – “We facilitate the work of the exporter and provide financial instruments to reduce the burden on business. Thus, the entire contract was financed on lease by Scania Credit Ukraine and insured with hull insurance. All trucks are also connected to the Scania FMS fleet monitoring system. “We are currently offering Nibulon the wide range of services and driver training offered by Scania Ukraine, as it is in our common interest to improve the performance of our vehicles,” said the head of Scania Ukraine.

“Nibulon expressed gratitude to Scania Ukraine and Scania Credit Ukraine for their long-term cooperation and support in the implementation of the truck fleet renewal project.

Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a capacity for simultaneous storage of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.

In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.

Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.

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Nibulon to allocate $12 mln to develop its elevators in 2024

One of the largest grain market operators in Ukraine, Nibulon JV LLC (Mykolaiv), plans to continue the reform of agricultural production in 2024, develop a de-mining unit, modernize its agricultural machinery fleet for $20 million, logistics for $14 million, and elevators for $12 million, said Andriy Vadatursky, CEO of the agricultural holding.

“Next year is the year of implementing the strategies we have developed. We have to achieve greater efficiency in all areas and comprehensively modernize the company. This will allow our people to receive higher salaries and the company to strengthen its competitiveness – both its own and the industry’s in the global market,” he wrote on Facebook on the occasion of the 32nd anniversary of Nibulon’s foundation.

According to the CEO of the agricultural holding, as part of the agricultural production reform, the company will continue to develop conservation tillage technologies, introduce automation and stabilize relations with landowners.

Mr. Vadatursky noted that the agricultural holding managed to return more than 4,000 hectares of land in Mykolaiv region to operation this year thanks to the launch of a new humanitarian demining unit. “Nibulon expects to receive four demining vehicles, which is facilitated by DEG Impulse gGmbH. The sappers trained by the agricultural holding will not only clear the land bank owned by Nibulon, but will also provide services to everyone.

According to him, the $20 million received from the Danish Export Investment Fund (EIFO) will be used to purchase Claas, Horshch, Hardi, Bednar, etc. agricultural machinery.

Almost $14 million has already been allocated to modernize the agricultural holding’s logistics, which has helped to upgrade the fleet and develop the port infrastructure.

As the war forced Nibulon to reorient its export chains due to the loss of river navigation, the grain trader increased the share of grain transportation by trucks. For this purpose, the company purchased 74 new Scania trucks, STAS trailers, as well as new fuel trucks and tanks.

The port infrastructure of the Bessarabian branch was strengthened by two new Liebherr reloaders, which allow for additional transshipment of up to 1000 tons of grain per hour and will be used in other logistics models of the company.

“Thanks to the USAID Economic Support for Ukraine project, Nibulon has expanded its railroad fleet with 50 hopper cars built at Karpaty.

“The bulk of the investments will be directed to the construction of a new elevator at the Khmelnytskyi branch, reconstruction of Vradiyivskyi and Kolosivskyi elevators. In addition, Nibulon is planning to improve the automated control system of elevator complexes,” Vadatursky said.

According to him, a new SCADA software solution will be created on the basis of the existing system to ensure a continuous, transparent and controlled technological process. This will allow receiving data in real time, saving resources, increasing staff productivity and, accordingly, their salaries.

Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.

In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses from Russia’s full-scale military invasion have reached $400 million. The grain trader is currently operating at 30% of capacity and has set up a special unit to clear agricultural land of mines.

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Fuel trade, energy, tuton: which companies became the leaders of Ukrainian wholesale during the great war?

How has the full-scale war changed the top 10 Ukrainian wholesalers?

According to the Opendatabot Index, almost half of the top 10 most successful Ukrainian wholesalers are businesses that trade in solid, liquid, gaseous fuels and similar products.

The top 10 of the Index in the wholesale trade sector includes Okko, WOG, West Petrol Market (fuel) and DTEK Trading, which trades in energy products. The list also includes businesses that sell tobacco (Tedis Ukraine and Philip Morris Sales and Distribution). Only two companies on the list sell food: MHP (meat) and Kernel Trade (grain). The Index also includes Optima Pharm and Metinvest-SMC. Together, these businesses earned UAH 458.95 billion last year.

For the second year in a row, Kernel Trade, a part of Andriy Verevsky’s Kernel Group, has been the unchanging leader in wholesale trade. In 2022, the company’s revenue amounted to UAH 67.92 billion, down 21% compared to 2021 (UAH 85.79 billion).

OKKO (Vitaliy Antonov, Universal Investment Group – UIG) moved up to the 2nd position in the ranking with revenue of UAH 67.29 billion. The company’s earnings grew 1.6 times year-on-year in 2022.

Tedis Ukraine, a tobacco company owned by Borys Kaufman, rounds out the top 3. Last year, the company increased its revenue by 7% and earned UAH 64.95 billion. It is worth noting that at the same time, the revenue of another company in the Index that specializes in tobacco wholesale, Philip Morris Sales and Distribution (the Ukrainian branch of the international tobacco manufacturer Phillip Morris International), decreased by 15% in 2022.

Yuriy Kosyuk’s MHP ranks fourth in the Index. This company specializes in the wholesale of meat and meat products. Its revenue in 2022 amounted to UAH 46.73 billion and remained almost unchanged compared to 2021 (UAH 46 billion).

Andriy Gubsky’s Optima Farm took fifth place in the list. In 2022, the company’s revenues decreased by 4% to UAH 44.34 billion.

DTEK Trading, owned by Rinat Akhmetov, saw the largest revenue increase – 1.8 times over the year. The company’s revenue of UAH 36.68 billion allowed it to rise from 18th place in the 2021 ranking to 7th in the 2022 ranking.

But another Akhmetov company in the top 10, Metinvest-SMC, saw its revenues decline by 42% (2021 – UAH 51.39 billion, 2022 – UAH 29.86 billion),

Who did the full-scale war push out of the top 10 Ukrainian wholesalers?
It is worth noting that in 2022, the top 10 Ukrainian wholesalers underwent significant changes compared to 2021.

Last year, 2 companies specializing in energy trading dropped out of the list.
We are talking about United Energy, a company associated with Kolomoisky, which was the second largest earner in the country before the outbreak of full-scale war. Last year, United Energy earned 3.6 times less revenue than in 2021 (UAH 17.24 billion) and lost 19 rating points.

Chemical Trade (owned by Dmitry Firtash) also did not make it to the top. Having reduced its revenue by 1.4 times, the company dropped to the 12th position in the ranking.

Also, two businesses specializing in grain wholesale dropped out of the top ten:
– Nibulon (Andriy Vadatursky) and Nibulon (Andriy Vadatursky). The company’s revenues last year decreased 2.7 times by 2021, and a significant share of its facilities and equipment is still under occupation.
– ADM-Ukraine (a subsidiary of the international agro-industrial corporation Archer Daniels Midland Company): their revenue decreased by 1.5 times by 2021.
It is worth noting that the total revenue of the top 10 wholesale companies in 2022 decreased by 10% compared to the top 10 in 2021.

The OpenDataBot Index is an analytical tool for assessing the real situation and geography of Ukrainian business, based on data from state registers, OpenDataBot registers, financial statements of companies, information on relations with Russia, sanctions lists, and other analytical tools of OpenDataBot.

https://opendatabot.ua/analytics/index-wholesale-2023

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Nibulon to buy 13 HORSCH seeders for sowing corn, rapeseed and sunflower

One of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), has signed an agreement with German agricultural machinery manufacturer HORSCH to purchase 13 seeders for sowing corn, rapeseed and sunflower at the AGRITECHNICA-2023 exhibition in Hannover.

“HORSCH Maestro seed drills are among the best and most technologically advanced on the sowing equipment market. They are convenient and productive, and their high sowing accuracy will allow us to perform operations efficiently and quickly at operating speeds of up to 15 km/h,” the company wrote on Facebook.

Nibulon explained its choice by the constant improvement of the machines by the manufacturer, testing on a production scale, including in Ukraine. In addition, HORSCH has a well-developed service base in Ukraine, which allows it to operate and maintain equipment with minimal downtime.

“We are striving to optimize our production processes and improve the quality and productivity of sowing to a new level,” Nibulon summarized and thanked HORSCH for its cooperation.

As reported, Nibulon also signed an agreement to purchase 29 agricultural machines with German agricultural machinery manufacturer CLAAS at AGRITECHNICA-2023. It is planned that 10 combines, 15 tractors and 4 telescopic loaders will be used for crop production in the 2024 season.

Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.

In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses from Russia’s full-scale military invasion reached $400 million. The grain trader is currently operating at 30% of capacity and has set up a special unit to clear agricultural land of mines.

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