Business news from Ukraine

Centravis invests over EUR3.5 mln in production

Centravis Production Ukraine, a part of Centravis Ltd. holding, will invest over EUR3.5 million in the company’s production and development this year.

According to the company’s press release on Tuesday, Oleksandr Hripas, Head of Technical Development at Centravis, said that in 2022, Centravis focused on adapting to work in a full-scale war.

“We managed to quickly rebuild and maintain a high level of production and exports. This year, the team decided to resume investments. In total, we plan to invest over EUR 3.5 million in the modernization and development of production facilities. Most of the investments have been utilized, and the work is ongoing,” he said.

He also clarified that the main areas of investment are energy modernization, primarily energy efficiency measures and reduction of electricity consumption.

The company is strengthening its capabilities to operate in the face of electricity supply restrictions. A process metering system has already been launched, and electricity consumption has been significantly reduced, by up to 30% in some production areas. The company is also working to ensure uninterrupted water supply after the Kakhovka hydroelectric power plant was blown up.

In addition, the company invests in environmental modernization and environmental impact reduction. Thus, the chemical pipe treatment area was reconstructed, a system of specialized software for monitoring chemical indicators was launched, and a water recycling system was set up at certain units of technological equipment.

Investments are also being made in the modernization of non-production infrastructure, which includes the repair of premises, roads, stormwater drainage, roofs, etc.

A separate investment project is the launch and development of a new production facility in Uzhhorod. The company is creating one of the leading centers for the production of tool pipes for cars in Zakarpattia. The company plans to purchase another rolling mill soon, the third one.

The press service reminds that the new facility started operating in February this year and has already reached a production volume of about 255 thousand meters of pipes per month, or more than 60 tons. The main customers are well-known global automakers, including Volkswagen, Audi, BMW, Chevrolet.

“There will be no development without investment. That is why we are looking for investment opportunities despite the difficult operating environment. At the end of the year, we will evaluate the entire scope of work and plan for 2024. It is important not to stop and to provide our customers with the appropriate level of quality and service,” said Yuriy Atanasov, CEO of Centravis, as quoted by the press service.

“Founded in 2000, Centravis is one of the ten largest producers of seamless stainless steel pipes in the world. Its main production facilities are located in Nikopol (Dnipropetrovska oblast), and in 2023, a branch of the company was opened in Uzhhorod.

The company employs over 1400 people.

The company’s supply geography exceeds 50 countries. Currently, Centravis has offices in the United States, Germany, Italy, Switzerland, Poland, and the United Arab Emirates. “Centravis cooperates with Benteler Automotive, Buhlmann Group, Webco – with various companies on different continents.

Centravis Ltd. holding was established on the basis of Nikopol Stainless Pipe Plant CJSC, service and trading companies of Production and Commercial Enterprise YUVIS LLC. Its shareholders are members of the Atanasov family. Centravis Ltd. owns 100% of the shares in Centravis Production Ukraine.

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Zhydachiv Pulp and Paper Mill increased production by 8%

In January-August 2023, Zhydachiv Pulp and Paper Mill (ZhPPM, Lviv region) produced products worth UAH 359.5 million, up 7.8% year-on-year.

According to statistics provided to Interfax-Ukraine by UkrPapir Association, in physical terms, the company’s output of corrugated packaging increased by 18.8% to 15.2 million square meters, containerboard by 24.8% to 10.9 thousand tons, and paper by 7.4% to almost 3 thousand tons.

In particular, in August, the plant increased its paper and cardboard production by 6.3% to almost 2 thousand tons by August 2022, while corrugated packaging production remained at the same level as last year, up to 1.96 million square meters. Compared to July this year, paper and cardboard production increased by 16.5%, while corrugated packaging production remained almost unchanged.

Zhytomyr Pulp and Paper Mill has a paper production capacity (base paper for corrugation, linerboard, cover paper) of 43 thousand tons per year, cardboard production capacity of 50 thousand tons, corrugated cardboard and corrugated packaging capacity of 120 million square meters, and cast containers (tray for 30 eggs) capacity of 72 million units per year.

As reported with reference to the association’s data obtained from the main industry enterprises, in January-August 2023, they produced a total of 361.56 thousand tons of paper and cardboard (10.2% more), and 335.2 million square meters of cardboard boxes (+18.3%).

In 2022, Zhydachiv Pulp and Paper Mill produced goods worth UAH 510.8 million, up 23.1% year-on-year, and net profit increased by 67.5% to UAH 41.76 million.

Ruta has doubled its production volume in 8 months

In January-August 2023, Ruta, a major Ukrainian manufacturer of sanitary and hygienic paper products, whose management company is VGP JSC (Lutsk), produced UAH 1 billion 086.4 million worth of products, which is 97.1% more than in the same period in 2022.

According to UkrPapir’s statistics provided to Interfax-Ukraine, the company has thus slightly accelerated the growth rate of production in monetary terms compared to the same period last year: in seven months, the figure was 96.7%, and in six months – 95.7%.

In terms of volume, the production of toilet paper in rolls increased 1.5 times, exceeding 89 million units, which is still the third best result in the industry after Kyiv Cardboard and Paper Mill (165 million units) and Kokhava Paper Mill (90.4 million units).

VGP’s brand portfolio includes napkins, toilet paper, paper handkerchiefs, and kitchen towels under the Ruta, Ruta Selecta, Fesko, Nosovic, Polotenechko, 100% paper, Servetta, and Ecolo brands. The assortment includes more than 189 items.

As reported with reference to Ukrpapir’s data, in 2022, VGP JSC produced products worth UAH 977.61 million, which is 2.8% more than a year earlier. At the same time, according to the company’s report, in physical terms (tons), production decreased by 27% due to the loss of some markets with the beginning of Russia’s military aggression in Ukraine.

Exports accounted for more than a quarter of sales in 2022. The paper used as the basis for production was purchased mainly from producers in Turkey and Romania.

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Kyiv Pulp and Paper Mill increased production by 9%

In January-August 2023, the volume of commercial output of Kyiv Cardboard and Paper Mill (Kyiv Pulp and Paper Mill, Obukhiv, Kyiv region), Ukraine’s industry leader in this indicator, amounted to UAH 4 billion 941.4 million, up 9% compared to the same period in 2022.

According to statistics provided by UkrPapir Association to Interfax-Ukraine, the plant’s production of corrugated boxes increased by 25.2% in volume terms, to 148.7 million square meters. Cardboard output increased by 10.4% to 111 thousand tons, driven by a 16.6% increase in containerboard production to 91 thousand tons, while boxboard production decreased by 11.2% to 20 thousand tons.

At the same time, according to UkrPapir, the output of the base paper for sanitary and hygiene products remains negative: in January-August, it decreased by almost 27% to 29 thousand tons, while the production of toilet paper in rolls decreased by 25.6% to 194.95 million units.

Despite the decline in toilet paper production, the plant maintains a strong leadership in its production in Ukraine. In total, in the first eight months of 2023, the country’s major enterprises produced 393.84 million rolls (down 2%).

According to the industry association’s data from the main industry enterprises, in January-August this year, Ukraine recorded a 10.2% increase in paper and cardboard production (up to 361.56 thousand tons) and an 18.3% increase in cardboard boxes (335.19 million square meters).

Kyiv Pulp and Paper Mill is one of Europe’s largest cardboard and paper products producers, employing over 2,500 people.

As reported, in 2022, the mill produced UAH 7 billion 432 million worth of products, which is 3.5% less than in 2021.

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Ukrgazvydobuvannia ensures increase in production

JSC Ukrgazvydobuvannia has completed the drilling of several new wells since the beginning of 2023 and put into operation the necessary infrastructure at one of the new fields, which allows an additional 1.2 million cubic meters of gas to be produced per day, the company said in a press release.

According to acting general director of Ukrgazvydobuvannia Oleh Tolmachev, after confirming the presence of significant gas reserves at the new field, the company developed a program for its intensive development.

“We have drilled new wells and equipped the necessary infrastructure, which now allows us to produce a significant amount of blue fuel and transport it to the gas transportation system of Ukraine. This is another component of our plan to increase the production of our own fuel for the needs of the country,” he noted.

More than 250 workers from all 11 structural divisions of Ukrgazvydobuvannia and about 80 units of special equipment are involved in the implementation of the gas production project.

As reported, the company has a goal of increasing natural gas production by 1 billion cubic meters in 2023 – up to 13.5 billion cubic meters. In 2022, it produced 12.5 billion cubic meters of natural gas (commercial), which is 3% less than in 2021.

NJSC Naftogaz Ukrainy owns 100% of the shares of Ukrgazvydobuvannia.

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Ukraine ranks 28th in world in wine production

Ukraine ranks 28th in the world in wine production according to data for 2022, reported in the center of socio-economic research “CASE Ukraine”.

“We produced as of 2022 660 thousand hectoliters, or 0.26% of the world wine market,” – stated the experts.

According to the report, the first place belongs to Italy with 49.843 million hectoliters, which is 19.3% of total world production, the second – France (45.59 million hectoliters, 17.65%), the third – Spain (35.7 million hectoliters, 13.83%).

The analysts attributed the reasons for Ukraine’s low wine production to the destruction of vineyards in the Soviet Union during the fight against alcoholism, the Russian Federation’s transformation of the wine-growing regions of Kherson and Mykolaiv regions into a frontline zone since the occupation of Crimea in 2014, as well as the absence of a land market until 2020 and the existence of restrictions on land acquisition by legal entities and foreign investors.

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