Business news from Ukraine

Business news from Ukraine

Kokhavynka Paper Mill slowed production growth to 39% in March

Kokhavynka Paper Mill (KBF, Lviv region), which produces sanitary paper products (TM Kokhavynka), increased its production by 39% in January-March this year compared to the same period in 2022, up to UAH 278.8 million, according to statistics from UkrPapir Association.

As reported, in January-February of this year, the growth of this indicator was 47% compared to the same period in 2022.

According to UkrPapir’s statistics provided to Interfax-Ukraine, in physical terms, production of the base paper for sanitary products increased by 6.4% to 10.34 thousand tons in the first quarter.

Including in March, its output increased by 10% by March 2022 (the factory practically did not stop production with the start of Russia’s full-scale aggression in Ukraine).

At the same time, the output of toilet paper in rolls in January-March increased by 9.2% (in January-February, the increase was 21.6%) to 33.48 million units, and KBF confidently retains the second place in terms of its output after Kyiv pulp and paper mill (56.54 million units), which reduced production of this product by 29% in January-February.

Kokhavynske Pulp and 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 paper machine capacity is 19 thousand tons per year, and the processing equipment capacity is 90 million rolls per year.

As reported, last year KBF produced products worth UAH 975.3 million, up 44.8% year-on-year.

Net profit, according to opendatabot, decreased by 12.7% to UAH 52.4 million, while revenue increased by 46.5% to UAH 978.9 million.

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“Vilis” launched production of instant pasta

Vilis (Rivne), one of the largest pasta producers in Ukraine, launched a new line for the production of instant pasta, the head of Rivne regional state administration Vitaly Koval said.
“For the manufacture of noodles, the company uses only Ukrainian products, many of which are Rivne products. And this is exactly the philosophy of added value, when grain grown in the Rivne region is processed in the Rivne region. And then the finished product is “exported” not only to Ukraine but also to different countries of the world,” Koval wrote on Facebook.
Construction of the enterprise was launched in October 2021. To launch the new line “Vilis” attracted UAH 50 million under the program “Affordable credits 5-7-9″. The enterprise plans to produce 6 thousand tons of instant noodles per year.
Vilis” is one of the largest Ukrainian producers of pasta and jam. The company was founded in 1996 and in 1998 it opened its first pasta production line. The company owns Vilis, Makarella, Italino, Viverelli, and also packs products under Private Label of a number of retail chains, in particular, Premiya, Povna Chasha, Nash Krai, Pervy Ryad, Clever and others. Products are sold within the country and exported to dozens of countries. PE “Willis” has its own logistics department and technology park.
The authorized capital of “Vilis” in the amount of 27,5 million UAH is divided between its head Viktor Zhabchik (60%), Sergiy Zhabchik (20%) and Irina Plesetskoy (20%).
According to opendatabot, earnings of “Vilis” in 2022 increased 2,4 times – up to 232,44 million UAH, net profit – 3,4 times, up to 14,56 million UAH.

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Cement production in Ukraine in 2022 decreased by 51% – Association

Cement production in Ukraine in 2022 decreased by 51% compared to 2021 – to 5.4 million tons, while its consumption was 35% of the indicator of the previous year, according to the association “Ukrcement”.
“Eight enterprises of the Association in 2022 produced cement strategically important for the country, which was primarily used on important construction sites of defense value. The decline in cement consumption led, respectively, to a decrease in production. At the same time, January 2022 was a record for cement production in the last six years”, – said Liudmila Krypka, executive director-head of the scientific and technical information department of the association “Ukrcement”.
According to her, export of products to the European Union helped slow down production decline. For example, cement exports for the year decreased by only 3.7% and amounted to 935 thousand tons, while imports decreased 14.8 times to 39 thousand tons.
In the structure of imports last year, 46.5% were ordinary cements, 41.6% – white cements, 10.9% – other hydraulic cements, 1% – alumina.
“The dynamics of cement exports 2022 indicates that the Ukrainian producers have fully provided the domestic market and continued to support their production with deliveries to other countries, mainly to the EU,” – said the expert.
In turn, Ukrainian companies in 2022 produced 16 types of cement, among which the most popular were cements with slag. At the same time manufacturers continue searching for ways to increase the efficiency of Portland cement while reducing the share of clinker, which is one of the main factors of reducing CO2 emissions, emphasizes Krypka.
The association is also considering using shredded construction waste from demolished buildings (linoleum, carpets, polyethylene, rubber, wood, plastic, roofing felt etc.) to burn in cement kilns as an alternative fuel, which can reduce the need for energy.
Last year “Ukrcement” in cooperation with SE “GosdorNII” published “Album of standard designs of rigid road clothes”, which contains information on variants of road clothes taking into account the category of roads, region, soil, technology.
“Road construction is a material-intensive production with a high proportion of the cost of raw and basic materials. Lack of bitumen forces us to switch to the best practices and domestic construction materials. Detailed characteristics of each construction are collected in the album, as well as technologies of restoration or strengthening of road with cement concrete”, – points out the executive director of the association.
Association “Ukrcement” was created in January 2004 by reorganization of Ukrainian concern of enterprises and organizations of cement and asbestos cement industry “Ukrcement”.

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Cherkasy Azot increased production in January-February

Cherkasy-based Azot, part of Ostchem’s nitrogen holding company, produced 235,000 tons of mineral fertilizers in January-February 2023, up 23% from January-February last year, Group DF press service said Wednesday.
“Production in February 2023 was 123,700 tons of products per month, the highest since the start of the all-out war,” the release specified.
According to it, urea was the key product, due to which the company showed an increase in production volumes in January-February 2023. Its production for two months increased almost three times – up to 67.4 thousand tons.
UAN production also increased by more than 10%, from 50.9 thousand tons to 56.2 thousand tons, while the volume of ammonium nitrate production slightly decreased – by 2%, to 102.2 thousand tons.
“This year, because of military risks, farmers delayed until the last moment the decision to buy mineral fertilizers, there was a significant deferred demand. As a result, in January-February demand for our products increased significantly. It is logical that the company increased its capacity utilization to 70-75%,” Vitaliy Sklyarov, Cherkasy Azot’s chief executive officer, said in a statement.
According to him the enterprise is not reducing loading in March because the agrarians continue to actively buy fertilizers and many have not formed the stocks enough for the spring sowing campaign.
Sklyarov stressed that in March and April the company will continue to work at 70-80% of its capacity, “as long as there will be a high demand from the side of farmers”. He specified that today all basic fertilizer production facilities of ammonia, ammoniac acid, ammonium nitrate, urea and UAN are operating at the plant.
“The catalyst for the sharp increase in demand in 2023 was a decrease in selling prices for mineral fertilizers during the ‘hot’ season, which was possible due to lower prices for gas, the main raw material for the production of fertilizers,” also noted the head of the board.
According to him, the growth of demand is limited by the financial capabilities of fertilizer consumers: on the one hand, the support of farmers by the state has a significant effect, but on the other hand, access to finance for small and medium agrarians is still very limited.
It is reported that since the beginning of 2023 Nitrogen Holding Ostchem reduced the cost of urea by 9 thousand UAH – to 29 thousand UAH/ton, ammonium nitrate – by 8.5 thousand UAH, to 28.5 thousand UAH/ton, UAN – by 4 thousand UAH, to 29 thousand UAH/ton.
Ostchem enterprises produced 1.75 million tons of mineral fertilizers in 2022, of which Cherkassy Azot produced 1.117 million tons.

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Trypillya Packaging Plant increased production by 1.5 times

In January-February 2010, the Tripolskij packaging plant (TUK, Ukrainka, Kyiv oblast), a subsidiary of the Rubizhne carton and packaging plant (Lugansk oblast), produced UAH 430.11 mln worth of products, which is 48.7% more than during the same period in 2022.
According to Interfax-Ukraine agency statistical data provided by UkrPapir association, during this period the mill produced 22.97 mln. sq. m of corrugated packaging, which is 29.8% more, which is the second result by volume of production after Kyiv Cardboard and Paper Mill (35.45 mln. sq. m).
In total, the main enterprises of the industry, which provided the data to the association UkrPapir, in January and February, produced 78.5 million square meters of carton packaging – 0.6% less than during the same period, which was almost before the war in 2022.
Before the full-scale invasion of Ukraine by Russia, Rubizhne carton factory together with TUK predominantly led the market of corrugated packaging manufacturers in Ukraine – in January-February 2022, both companies produced more than 28 million square meters of corrugated packaging (including TUK – 19.2 million square meters), and the total production volume in money terms was UAH 667 million.
After the destruction the plant in Rubizhne stopped, and the legal entity PJSC Rubizhne CPC was re-registered in Kiev.
TUK produces a wide range of corrugated products.
According to the resource opendatabot, PJSC “RKTK” owns 99.96% in LLC “TUK”, and the ultimate beneficiary is the general director of Rubizhansky KTK Hennadii Minin, who since September 2022 has also managed Tripoli packing plant.

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“Papir-Mal” has increased its production by more than 2.5 times in 2 months

In January-February the Papir-Mal cardboard and paper mill (Malyn, Zhytomyr oblast) produced output for 76.94 mln UAH, which is more than 2.5 times higher than in two months of 2022.
According to statistics from UkrPapyr Association, the increase of production was caused by a 2.5-fold growth in output of containerboard (including paper for corrugation) to 11.76 thousand tons, while production of base paper for sanitary products decreased by 21.3% to 0.69 tons and toilet paper rolls – by 26%, to 2.63 million pieces.
Thus, the total output of paper and paperboard increased 2.2-fold to 12.45 thousand tons.
As reported, last year the mill put into operation the second cardboard machine (KDM) with a production capacity of 800m/min (twice more than the first), which allowed “Papir-Mal” to reach a positive total dynamics of paper and cardboard production by the end of the year, despite a drop in paper output by 37%.
With the beginning of a full-scale military aggression of Russia against Ukraine on February 24, 2022 the mill completely stopped production and postponed the launch of the second paper machine, but in March it resumed production.
The production volume of the company in 2022 decreased by 4.7% against 2021 – to 247 mln hryvnia.

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