Business news from Ukraine


JSC Kremenchuk Plant of Road Machines (Kredmash, Poltava region) in January-June increased the production and sales of asphalt and soil mixing units by 21.4% compared to the same period in 2020, to 34 units.
According to a report on the company’s website, in June, the plant shipped products to Vinnytsia, Odesa, as well as for export.
As reported, the growth in production and sales of products at the plant is primarily associated with the road construction program in Ukraine. In particular, in January-June last year, due to the intensification of road construction, the plant produced 28 units, while for the whole of 2019 – 26.
In June of this year, Kredmash also produced spare parts, components and assemblies for UAH 22 million, consumer goods – for UAH 10.4 million.
Kredmash specializes in the development and manufacture of asphalt mixing plants, spare parts for construction and road equipment, tank trucks, bitumen trucks, iron and steel castings, consumer goods (seamers).
In 2020, the plant produced and sold 54 units, net income increased by 12%, to UAH 1.088 billion, net profit tripled – to UAH 69.14 million. Some 61.3% of total sales were exported, and the main competitors at the plant are German-based Ammann, Teltomat, Lintec, Italian-based Mavini, Bernandi, Sim, Czech-based Askom, Finnish-based Amomatik.

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PrJSC Poltava Oil Crushing Plant, one of the largest producers of sunflower oil in Ukraine, saw UAH 104.65 million in net loss in 2020 versus UAH 63.15 million in net profit a year earlier.
According to the company’s statement in the information disclosure system of the National Securities and Stock Market Commission, its assets during the year grew by 1.7%, to UAH 1.32 billion, and the uncovered loss amounted to UAH 49.29 million versus UAH 54.92 UAH million of net profit a year earlier.
According to the results of the year, the total accounts receivable of PJSC Poltava Oil Crushing Plant decreased by 65.5%, to UAH 180.19 million.
According to the report, at the annual meeting of shareholders scheduled for April 16, it is planned to obtain approval for the company to carry out significant transactions with a total value of up to UAH 5 billion, which can be used by the company to conduct business in 2021. The agenda of the meeting also includes the appointment of Niva-Audit to conduct a statutory audit of the company’s financial statements for 2019.
According to the unified public register of legal entities and private entrepreneurs, the Poltava Oil Crushing Plant belongs to the largest shareholder of the Kernel agricultural holding Andriy Verevsky.

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PrJSC Poltava Mining and Processing Plant (Poltava GOK, Komsomolsk, Poltava region), the main asset of Ferrexpo Group, has launched a new technological complex for production of finished goods – Section No. 9 of the concentrating plant, the total cost of the project exceeded $100 million.
According to Ferrexpo’s expectations, the project will make it possible to produce an additional 2 million tonnes of finished products, which will increase the company’s sales volumes by about UAH 2 billion per year, starting from July 1 this year. The implementation of this project will increase the plant’s installed capacity to more than 15 million tonnes of concentrate per year.
Section No. 9 is a modern complex of the production chain, which includes additional crushing and dressing areas, a new electrical substation, a system for transferring prepared raw materials and finished products, as well as additional conveyor lines, the press release says. The main equipment manufacturer for it is Metso Outotec. Other leading world companies also participated in the project implementation process and Ukrainian contractors from different regions were involved. Construction took over four years.
At the same time, the company indicates that this investment has already provided payments to the state budget and budgets of other levels in the amount of about UAH 400 million and will further bring up to UAH 300 million of such payments annually.
As reported, Ferrexpo plc in January-June 2020 increased the processing of iron ore concentrate – raw materials for pellets – by 6.3% compared to the same period in 2019, to 7.002 million tonnes.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrexpo owns 100% of shares of Poltava GOK, 100% of Yeristovo GOK and 99.9% of Belanovo GOK.

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The State Agency of Automobile Roads of Ukraine (Ukravtodor) plans to complete the repair of the M-03 Kyiv-Kharkov highway within Poltava region in 2020.
Ukravtodor said on Telegram the total length of the road within Poltava region is 285 km. At the same time, 265 km of roads are on the balance of the service in the region. Another 4 km of the road that passes through Poltava is on the balance of the city council, due to a question about the repair of which the project of the complete update of the M-03 road was frozen for some time.
According to the agency, in order for the situation to budge, a budget program was formed in the national budget of Ukraine on the initiative of the government and Ukravtodor to repair the M-03 road section within Poltava. It is to be repaired this year.
“The section of the Kyiv-Kharkiv route that passes through Poltava has remained a stumbling block for many years. This year, thanks to the coordinated cooperation of all branches of government, we managed to attract financing for the repair of the problem area,” the press service said citing head of Ukravtodor Oleksandr Kubrakov.

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The Poltava international airport plans to develop a freight terminal, the airport as reported on its website.
Acting Director General of municipal enterprise Airport Poltava Volodymyr Okara and a representative of Umbrella Group Taras Shebediuk signed a memorandum of cooperation to develop the freight terminal at the airport on October 21.
The memo is intended to attract investors for building the freight terminal, which will become the important infrastructure facility for strategic development of the airport.
The parties emphasized their interest in ensuring that the airport is focused not only on passengers, but also on freight transportation.
According to Okara, Bulgarian and German investors became interested in the development of the Poltava airport. In addition, the airport had previously signed a memorandum of cooperation with a Lithuanian company for the construction of the freight terminal.
In addition, it is reported that in November, private airline Ukrainian Helicopters will begin to be based on the territory of the Poltava airport: the contract is unlimited and involves permanent deployment. For providing the site, the airport will receive UAH 150,000-250,000 monthly depending on operations.
Previously, the base of Ukrainian Helicopters was located in Kremenchuk (Poltava region).

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Poltava mining and processing plant (PGOK, Ferrexpo Poltava Mining, Horishni Plavni, Poltava region), the largest producer of iron ore pellets in Ukraine, by the decision of its sole shareholder, Swiss-based Ferrexpo AG, intends to increase its charter capital by 62.3%, or UAH 1.185 billion through an additional issue of shares without public offering.
The corresponding issue of shares was registered by the National Commission for Securities and the Stock Market of Ukraine on October 18.
At the time of the decision on the issue (July 31 of this year), the charter capital of PGOK amounted to UAH 1.902 billion and was divided into 191 million shares with a par value of UAH 9.96. The sources of increase in the charter capital are cash in foreign currency.
The term for the placement of shares is from October 4 to November 20 of this year.
As reported, Ferrexpo AG, which owned a 99.1167% stake in PGOK, in June of this year forcibly bought back shares from minority shareholders under a squeeze-out procedure and increased its stake to 100%. The buyback price amounted to UAH 34.24.
Ferrexpo Plc, which owns 100% of Ferrexpo AG, which in turn owns 100% of Poltava GOK and 100% of Yeristovo GOK, is traded on the London Stock Exchange (LSE).
Since the beginning of July this year, the price of Ferrexpo shares on the LSE fell by almost 2.1 times, to GBP1.354 per share, which is the lowest level since January 2017.

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