Business news from Ukraine

Coca-Cola starts construction of new plant in China

Swire Coca-Cola has started construction of a plant in Guangdong Province, China, Xinhua reports.

The Coca-Cola bottler’s investment in this project will amount to 1.25 billion yuan ($176 million).

The enterprise will cover an area of about 128 thousand square meters and will be equipped with 11 bottling lines, warehouses and other auxiliary facilities. Once the plant is up and running, the Chinese company’s production capacity is expected to increase by about 66% compared to the current level.

Swire Coca-Cola Managing Director Su Wei said that the company will continue to increase its investments in China. From 2023 to 2032, the planned volume of investments in the Chinese market will exceed 12 billion yuan.

“Expanding our operations in such a dynamic and fast-growing market is really exciting and exciting for us,” she said.

Swire Coca-Cola is the fifth largest bottler of Coca-Cola Co. in the world in terms of sales. The company has five bottling plants in Guangdong province with 14 production lines.

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Prydniprovsky Plant increased its net profit by 24%

PrJSC Prydniprovsky Plant (Dnipro), one of the largest dairy processing companies in Ukraine (Zlagoda and Lyubimchik brands), increased its net profit by 24% in 2023 compared to 2022, to UAH 165.116 million.

According to the company’s report in the NSSMC disclosure system, its revenue for the year increased by 22.8% to UAH 2.522 billion, assets by 37.1% to UAH 788.76 million, and debt obligations by 1.7 times to UAH 127.914 million. At the same time, the company increased its staff by 12 people to 932 employees.

At the annual meeting on April 19, the shareholders decided to pay UAH 4.340 million in dividends based on the company’s performance in 2023. The Supervisory Board of PrJSC Prydniprovsky Iron and Steel Works decided to draw up a list of persons entitled to receive dividends by June 1, 2024. The amount of dividends per 1 ordinary registered share is UAH 0.62. Dividends will be paid from June 1 to October 30 directly to shareholders, in particular, to individuals through the cash desk, and to legal entities to their bank accounts.

The Supervisory Board is confident that the payment of dividends will not worsen the company’s condition.

Prydniprovsky was founded in 1990 on the basis of Dnipropetrovs’k Hormone and Milk Plant No. 2. It manufactures products under the Zlagoda and Lyubimchyk brands. It includes: Vasylkivsky Cheese Plant, Tsarychansky Butter Plant, Pereshchepynsky Dairy Plant, and Novomoskovsky Fruit Fillers Production Shop. The company’s milk processing capacity exceeds 250 tons per day.

According to the Unified State Register of Legal Entities and Individual Entrepreneurs, the ultimate beneficiaries of Prydniprovsky Plant are Andriy Veretennikov (46.71%) and Tetiana Nenarochkina (43.42%), former deputy of the Dnipro City Council.

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Ostchem’s plants increased fertilizer production by only 1% due to 35% increase in imports

The plants of nitrogen holding Ostchem produced 520.6 thousand tons of mineral fertilizers in the first quarter of 2024, which is only 1% more than in the first quarter of 2023 (515.5 thousand tons), the holding said in a statement on Wednesday.

“The growth in production of the Ukrainian chemical industry has stopped due to the uncontrolled growth in fertilizer imports from Poland, as well as Russia-friendly Azerbaijan and Turkmenistan,” the company said.

According to the company, in the first quarter of 2024, fertilizer imports increased by 35% to 701.2 thousand tons.

It is specified that Cherkasy Azot produced 404.3 thousand tons in January-March this year, while Rivne Azot produced 128 thousand tons of fertilizers.

According to the report, the production structure remains fairly stable: ammonium nitrate is the leader (246 thousand tons produced), followed by urea-ammonium nitrate (UAN) (123.8 thousand tons) and urea (123.5 thousand tons). Production of limestone-ammonium nitrate (LAM) increased slightly year-on-year to 15.8 thousand tons, and ammonia to 9.08 thousand tons.

Ostchem noted that it met its obligations in full during the spring sowing season, but in 2024 the negative industry trend intensified, with fertilizer imports significantly exceeding domestic production.

“In the first quarter of 2024, imports amounted to 701.2 thsd tonnes, exceeding domestic production by 35%. Imports continue to kill domestic production: four fertilizer producers have already been shut down – OPP, Dniproazot, Rivneazot and Sumykhimprom,” commented Oleg Arestarkhov, Head of Corporate Communications at Group DF.

It is noted that Ukrainian producers continue to lose ground in the Ukrainian market in most fertilizer segments, except for UAN.

“First of all, Ukrainian chemical plants are dramatically losing the urea market: in the first quarter, Ukraine produced 123.5 thousand tons of urea, while imports amounted to 181 thousand tons. 88% of all imported urea came from Azerbaijan and Turkmenistan, countries friendly to Russia,” Arestarkhov added.

According to him, Poland is also strengthening its position as the largest importer of fertilizers to Ukraine, as it is currently flooded with cheap Russian and Belarusian fertilizers that are not subject to EU sanctions, which is why all the excess fertilizers from the Polish market are being redirected to Ukraine.

According to Ostchem, in 2023, Poland imported 1.016 million tons of urea, of which urea from Russia accounted for 34% (345 thousand tons). At the same time, in the first quarter of 2024, Poland has already become the undisputed leader among importers of such fertilizers as ammonium nitrate (52 thousand tons out of 109.7 thousand tons of total imports), ammonium sulfate nitrate (7.9 thousand tons out of 9.4 thousand tons), UAN (17.4 thousand tons), and NPK (63.2 thousand tons out of 144.3 thousand tons) in the Ukrainian market.

In the first quarter, Ukraine imported 121.9 thousand tons of sulphate (China is the leader with 75.3 thousand tons) and 74.6 thousand tons of superphosphate (Bulgaria – 37.3 thousand tons and Greece – 27.4 thousand tons),

“Unfortunately, behind the loud slogans of Ukrainian government officials within the Buy Ukrainian campaign, there are no practical steps to reduce imports and protect the Ukrainian fertilizer producer,” Arestarkhov emphasized, recalling the specific proposals of the Ukrainian Chemists Union to protect the domestic market that were submitted to the government.

Ostchem is the nitrogen holding of Dmitry Firtash’s Group DF, which unites the largest mineral fertilizer producers in Ukraine. Since 2011, it has included Rivne Azot and Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are out of operation and located in the occupied territories.

Cherkasy Azot PrJSC (Cherkasy, Ukraine) is one of the largest Ukrainian chemical companies. Its design production capacity is 962.7 thousand tons per year of ammonia, 970 thousand tons per year of ammonium nitrate, 891.6 thousand tons of urea, and 1 million tons per year of UAN.

Rivne Azot is one of the largest Ukrainian chemical companies in Western Ukraine. On April 12, 2024, Group DF and South Korean Hyundai Engineering signed an agreement to build a chemical hub in Rivne. The project envisages the construction of green ammonia and hydrogen plants based on renewable energy sources; new enterprises and production sites for nitrogen fertilizers and chemical derivatives.

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Quantum Systems opens UAV plant in Ukraine

German unmanned aerial vehicle manufacturer Quantum-Systems has opened an unmanned aerial vehicle (UAV) plant in Ukraine, the press service of Quantum-Systems reports.
“The new plant will be the company’s second facility in Ukraine and is expected to employ about 100 people by the end of the year,” the company said in a statement.
According to the information, it will be able to produce up to 1 thousand UAVs per year.
“The new plant is expected to increase production capacity to 1,000 drones per year, including the production of spare parts,” Quantum-Systems said.
It is also indicated that the company will invest up to EUR6 million over the next two years in the production of UAVs in Ukraine.
As reported, Quantum-Systems’ Vector medium-range drones have been in operation in Ukraine since May 2022. So far, 212 systems have been provided with funding from the German government. The company said that 500 UAVs are expected to be delivered to Ukraine by the end of the year.
Quantum-Systems has been operating a service, support, training, and logistics center in Ukraine since last year, employing 25 Ukrainian employees. They train drone pilots and implement technological advances in reconnaissance systems on-site.
Quantum Systems is a dual-purpose company with about 250 employees. The production facility in Ukraine is the fourth of the company’s seven plants located around the world.

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Ukrainian ice cream producer buys plant in Poland

Ukrainian ice cream and frozen semi-finished products producer Three Bears has acquired Nordis, which owns a plant for the production of semi-finished products and ice cream in Poland, the company’s founder Dmytro Ushmayev told the Ukrainian edition of Forbes.

“We have indeed acquired the Nordis plant in Poland. Nordis is similar in potential to Three Bears,” Ushmayev said.

The owner of the company refused to disclose the amount of the deal and clarified that the Ukrainian company plans to invest in the development of production in Poland.

According to the Ministry of Justice of Poland, in September 2023, the management of the Polish plant for the production of semi-finished products and ice cream Nordis changed. Dmitry Ushmayev, founder of Three Bears, became the new owner of the company. Andriy Tyshchenko, director of the Ukrainian manufacturer, has also joined Nordis’ supervisory board.

Nordis owns a plant in western Poland and warehouses. The company produces more than 100 types of ice cream and semi-finished products. Nordis also has a distribution network in 19 cities in Poland. The previous owner and CEO of Nordis was Slawomir Jankowski.

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Eurocar plant reduced net profit by 2.2 times

According to preliminary data, Eurocar JSC (Solomonovo, Zakarpattia region), which produces Skoda cars and is part of the Atoll Holding group of companies, ended 2023 with a net profit of UAH 37.25 million, which is almost 2.2 times less than in 2022.

According to the announcement of the annual shareholders’ meeting on April 30, as a result, retained earnings as of the beginning of 2024 increased by 16.5% to UAH 262.95 million.

The shareholders plan to use the net profit, as in the previous year, to replenish working capital, and not to accrue or pay dividends.

According to the publication, last year Eurocar increased its current liabilities by 85.4% to UAH 290.21 million, while its long-term liabilities increased slightly (by 3.2%) to UAH 1 billion 460 million.

Total accounts receivable amounted to UAH 707 million, down 22.7% over the year, while assets increased by 10.5% to UAH 2 billion 278 million due to a 2.5-fold increase in inventories to UAH 767.12 million and a 19.2% increase in cash to UAH 82.05 million.

“Eurocar has been producing passenger cars since December 2001. In June 2022, the plant resumed large-scale assembly (SKD) of Škoda cars, which was stopped with the start of Russia’s military aggression in Ukraine, but does not publish production statistics.

According to Auto-Consulting, in 2023, as in the previous year, Skoda cars took the fourth place in the rating of new passenger car sales in Ukraine, with an increase of 74.7% to 4.95 thousand units, while the market share increased to 7.61% compared to 7.08%.

According to the NSSMC, as of the third quarter of 2022, more than 68.84% of Eurocar’s shares are owned by Atoll Holding, whose beneficial owner is Oleg Boyarin, another 20% is owned by Prostir Capital LLC, and 10% by Iberia Motor Company of Poland.

According to Clarity-project, in 2023, the plant increased its net income by 73.6% year-on-year to UAH 4 billion 226 million.

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