In January-October 2023, Ruta, a major Ukrainian manufacturer of sanitary and hygienic paper products, whose management company is VGP JSC (Lutsk), produced UAH 1 billion 345.6 million worth of products, which is 83.8% more than in the same period in 2022.
According to UkrPapir’s statistics provided to Interfax-Ukraine, the company has thus slowed down the growth rate of production in monetary terms slightly compared to the same period last year: in nine months, the figure was 90%, and in eight months, 97.1%.
In terms of volume, the company’s production of toilet paper in rolls increased by 47% to 111.3 million units, which is still the third best result in the industry after Kyiv Cardboard and Paper Mill (213.3 million units) and Kokhava Paper Mill (113 million units).
The company produces pulp-based sanitary and hygiene products from imported base paper.
VGP’s brand portfolio includes napkins, toilet paper, paper handkerchiefs, and kitchen towels under the Ruta, Ruta Selecta, Fesko, Nosovic, Polotenchko, 100% paper, Servetta, and Ecolo brands. The assortment includes more than 180 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 in Turkey and Romania.
Cardboard and Paper Company LLC (Lviv), a major Ukrainian manufacturer of cardboard tubes and sanitary products, increased its production by 11.5% in January-October 2023, up to UAH 1 billion 070.5 million, compared to the same period in 2022.
According to UkrPapir Association statistics provided to Interfax-Ukraine, the company increased its output of cardboard products by 3.4% to 22.7 thousand tons and of base paper for sanitary products by 12.5% to 6.5 thousand tons in physical terms. Production of toilet paper in rolls increased by 52.3% to 5.13 million units.
At the same time, in October, the company increased its paper and cardboard production by 36% compared to the same month last year, to 3.04 thousand tons, which is 2.7% less than in September this year.
LLC “Cardboard and Paper Company” produces products and semi-finished products from waste cardboard (cardboard sheets, corners, sleeves), cellulose and recycled waste paper (toilet paper, towels, napkins TM Papero). The company supplies its products, in particular, to the EU countries.
Among its customers are Biosphere and Arterium corporations, Nestle, Khlibprom, and Yarych confectionery.
As reported, in 2022, the factory increased its commercial output by 51.5% compared to 2021, up to UAH 1 billion 186 million, without stopping work during the year. Net profit tripled to UAH 263.7 million.
In January-October 2023, Zhydachiv Pulp and Paper Mill (ZhPPM, Lviv region) produced products worth UAH 444.6 million, up 7.6% year-on-year.
According to statistics provided to Interfax-Ukraine by UkrPapir Association, in physical terms, corrugated packaging output increased by 21.2% to 19.2 million square meters, containerboard by almost 27% to 13.5 thousand tons, and paper by 11% to 3.7 thousand tons.
In particular, in October, the plant increased production of paper and cardboard by 66.4% to 1.8 thousand tons by October 2022, and corrugated packaging by 54.6% to 2.3 million square meters. Compared to September this year, paper and cardboard production increased by 15.4%, and corrugated packaging by 23%.
Zhytomyr Pulp and Paper Mill has a paper production capacity of 43 thousand tons per year (base paper for corrugation, linerboard, cover paper), cardboard production capacity of 50 thousand tons, corrugated cardboard and corrugated packaging capacity of 120 million square meters, and injection molded 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, over ten months in Ukraine, there was an increase in the production of paper and cardboard by 11.4% (up to 454.9 thousand tons), cardboard boxes – by 18.1% (up to 428.7 million square meters).
In 2022, Zhydachiv Pulp and Paper Mill produced goods worth UAH 510.8 million, up 23.1% year-on-year, with net profit increasing by 67.5% to UAH 41.76 million.
In January-October 2023, Kokhavyno Paper Mill (KBF, Lviv region), which produces sanitary paper products, increased its production by 22.5% compared to the same period in 2022, to UAH 959.6 million, according to statistics from UkrPapir Association.
According to the data provided to Interfax-Ukraine, in physical terms, the production of paper base for sanitary products increased by 2.4% to 34.6 thousand tons. In particular, in October, its output increased by 3.4% to 3.64 thousand tons by October 2022, which is also 23.4% more than in September this year.
The production of toilet paper in rolls increased by 3.9% to 113 million units during this period. KPF retains the second place in terms of its output after Kyiv CPP (213.3 million units), slightly ahead of VGP JSC (TM Ruta).
Kokhava Paper Mill, which has been operating since 1939, produces the base paper for sanitary and hygiene products, as well as toilet paper and paper towels.
The mill has practically not stopped production since the beginning of Russia’s full-scale aggression in Ukraine.
As reported, in 2023, KPF produced products worth UAH 975.3 million, up 44.8% year-on-year. Net profit decreased by 12.7% to UAH 52.4 million.
“Metinvest reduced steel production by 43% year-on-year to 1.531 million tons in January-September this year, according to a press release from the parent company Metinvest B.V. on Wednesday, following the results of the third quarter and nine months of this year.
During this period, pig iron production decreased by 46% to 1.344 million tons, coke production by 31% to 948 thousand tons, and commercial coke production increased by 7% to 644 thousand tons.
At the same time, it is noted that due to the outbreak of Russia’s large-scale military aggression against Ukraine on February 24, 2022, Metinvest decided to suspend production at a number of its enterprises in Mariupol, Avdiivka and Zaporizhzhia, including Azovstal, Ilyich Iron and Steel Works of Mariupol, Avdiivka Coke and Zaporizhzhia Coke. Later, Zaporizhzhia-based enterprises of the Group resumed production.
As of today, the Group’s Ukrainian enterprises, except for those located in Mariupol and Avdiivka, continue to operate at varying levels of utilization, taking into account security, electricity supply, logistics and economic factors.
In the third quarter of 2023, pig iron production decreased by 10% quarter-on-quarter to 425 thousand tons, mainly due to the shutdown of blast furnace No. 1 at Kametstal for a scheduled overhaul. As a result, steel production decreased by 8% to 499 thousand tons. Over the first nine months of the year, the Group’s iron and steel production decreased by 46% and 43%. The suspension of production at the Mariupol plants from the end of February 2022 was partially offset by volumes at Kametstal.
In the third quarter, the Group produced 159 thousand tonnes of semi-finished products, down 27% quarter-on-quarter, mainly due to higher domestic consumption at downstream stages.
In addition, in the first nine months of 2023, the output of semi-finished products decreased by 26% to 657 thousand tons due to the absence of production at Mariupol plants since the end of February 2022. This was partially offset by an increase in the production of commercial billets at Kametstal’s facilities.
In the third quarter, Metinvest’s output of finished products decreased by 3% quarter-on-quarter to 583 thousand tons. At the same time, flat products production decreased by 27 thousand tons to 267 thousand tons due to a reduction in the order book at the rolling mills in Italy and the UK. This was partially offset by an increase in galvanized cold-rolled coil production at Unisteel Ukraine as the fourth inductor was restarted after being shut down for overhaul in the second quarter.
At the same time, long products production increased by 9 thousand tons to 316 thousand tons, mainly due to an increase in the rebar order book at Kametstal.
In the first nine months of 2023, finished product output fell by 26% to 1.728 million tons. At the same time, flat products production decreased by 666 thousand tons to 847 thousand tons due to the shutdown of Mariupol’s plants. This was partially offset by an increase in hot-rolled plates production at re-rolling mills in Italy and the UK as third-party slab supplies were restored.
In turn, long products output increased by 72 thousand tonnes to 881 thousand tonnes due to the stabilization of billet production at Kametstal and normalization of supplies to Promet Steel in Bulgaria.
There was no output of rail and pipe products as they were produced at Mariupol-based plants.
Coke production in the third quarter decreased by 9% quarter-on-quarter to 299 thousand tons, mainly due to lower coke demand at Kametstal. Over the first nine months of the year, this figure fell by 31% to 948 thousand tons due to the suspension of production at Azovstal and Avdiivka Coke.
As reported earlier, in January-March 2023, Metinvest reduced steel production by 75% compared to the same period in 2022 to 491 thousand tons, pig iron production also by 75% to 448 thousand tons, and coke production by 59% to 318 thousand tons, including a 1% increase in commercial coke production to 213 thousand tons.
In the first half of 2023, the Group reduced steel production by 57% year-on-year to 1.032 million tonnes, pig iron by 59% to 918 thousand tonnes, and coke by 40% to 648 thousand tonnes, including a 7% increase in commercial coke production to 429 thousand tonnes.
“In 2022, Metinvest decreased steel production by 69% compared to 2021, to 2.918 million tons, pig iron by 72%, to 2.743 million tons, coke by 64%, to 1.653 million tons, including commercial coke by 49%, to 811 thousand tons.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA.
Metinvest’s major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
Kormotech, a leading Ukrainian manufacturer of cat and dog food, will expand its production in Kėdainiai, Lithuania, investing more than EUR60 million in four production stages to be commissioned in 2025-2028, the company’s press service told Interfax-Ukraine.
“Lithuania is now our window to the world. Our plant in Kėdainiai has become a reliable support for us – it always operates at 100% capacity, while in Ukraine we have to take into account the risks of shutdowns due to the war. We aim to further expand our capacity in Lithuania by building four additional production lines by 2028,” said Rostyslav Vovk, CEO and co-owner of Kormotech.
Kormotech launched its first foreign plant in Kėdainiai, Lithuania, in 2020. Currently, more than 170 specialists from Ukraine and Lithuania work at the wet feed production facility with a capacity of more than 20 thousand tons per year.
“Our successful experience of building and operating in Lithuania, favorable conditions in the free economic zone, support from Invest Lithuania and our well-established network of partners and suppliers led us to the decision to expand the enterprise,” emphasized Vovk.
Kormotech plans to launch the first new production line by 2025, adding a line each year until the four production lines are fully operational in 2028. As the expansion project progresses, the company will be interested in finding qualified engineers, technologists, and other highly specialized professionals in both Ukraine and Lithuania. With the new expansion project, Kormotech will double its current workforce in Lithuania, adding 200 new jobs in five years.
According to Elius Civilis, Director General of Invest Lithuania, the Lithuanian state agency, Kormotech’s expansion shows that Lithuania is open to foreign investors and creates truly favorable conditions for them.
“In Kėdainiai, Kormotech has built a modern, highly automated plant employing local specialists of various competencies. The company’s decision to expand its facilities and double the team size demonstrates the quality of both the local business infrastructure and talent,” emphasized Chivilis.
In Ukraine, Kormotech is constantly expanding its production capacity. During 2022-2023, the company invested about $14 million to modernize dry feed production and expand wet feed production by almost 70%.
“We plan to build new production facilities in Ukraine immediately after the war ends,” said Vovk.
Kormotech is a global family-owned company with Ukrainian roots that has been producing high-quality cat and dog food under the Optimeal, CLUB 4 PAWS, Woof, Meow! The company has production facilities in Ukraine and the EU. The product range includes more than 650 items.
The company is among the TOP-60 global pet food manufacturers and TOP-20 most dynamic pet food brands. Kormotech sells products of its own brands and those of its partners in 40 countries.
Currently, the company employs about 1300 people in five countries – Ukraine, Lithuania, Poland, Romania, and the United States.
Invest Lithuania is a non-profit agency under the Ministry of Economy of the Republic of Lithuania. Its mission is to attract foreign investment. It serves as a point of contact for foreign companies and accompanies international business at every stage of the process of starting a business in Lithuania, providing information on recruitment, tax benefits and financing options.
