Business news from Ukraine

Beer production in Ukraine in January-October decreased by almost 30%

Production of beer in Ukraine (except non-alcoholic with alcohol content up to 0.5% vol.) in January-October 2022 decreased by 28.6% compared to the same period of 2021 – to 103.8 million dal, according to the website of the brewers’ organization Ukrpivo.
It is noted that the industry is gradually recovering after the fall of production of this drink in the first quarter by 50% due to the Russian invasion and the shutdown of some of the breweries of the country. Thus, in the first four months of this year the decline was 42.8% over the same period of last year, in January-May – 36.4%, in January-June – 32%, in January-July and January-August – 31.6%, and in January-September – 30.5%.
According to Ukrpiva, there is also a recovery in the production of malt. In particular, after the fall in the first quarter of 2022 by 40.8% and a sharp decline in June by 50.6%, in January-October the rate of production decreased to 17.7% compared to the same period in 2021 – 146.5 thousand tons of malt was produced.
As reported, Ukraine in 2021 produced 5% less beer compared to 2020 – 170.5 million dal, and in 2020, its production decreased by 0.4% compared to 2019 – 179.7 million dal.
Malt production in 2021 was 218,500 tons, down 19.5% from a year earlier. At the same time, its production in 2020 decreased by 18% compared to 2019, to 275 thousand tons.

,

Krivoy Rog Iron Ore Plant decreased production of marketable iron ore from underground mining by 26.8%

Krivoy Rog iron-ore combine (KZHRK) in January-October of this year reduced the production of marketable iron ore underground mining by 26.8% compared to the same period last year – up to 2.654 million tons.
According to the company, in October, mines “Pokrovskaya”, “Krivoy Rog”, “Kozatskaya” produced 40 thousand tons each, “Ternovskaya” – 30 thousand tons.
The total output of the Company last month amounted to 150 thous. tons, while in September it was 200 thous. tons, in August – 270 thous. tons, in July – 280 thous. tons.
As reported, KZHRK in 2021 increased the production of iron ore from underground mining by 12.7% compared to 2020 – up to 4.298 million tons.
KZHRK specializes in underground mining of iron ore. KZHRK has four mines: “Pokrovska” (formerly “October”), mine “Krivorizka” (“Rodina”), “Kozatska” (formerly “Gvardeyskaya”) and “Ternovskaya” (formerly the Ordzhonikidze mine, then named after Lenin).
Starmill Limited owns 99.88% of the company.
KZHRK is owned by Metinvest Group and Privat Group. The company’s operational management is carried out by Privat Group.

, ,

Yuzhny Mining and Processing Plant resumes production after downtime

Yuzhny Mining and Processing Integrated Works (YuGOC, Dnipropetrovsk Region) will resume production on November 7 after a slowdown since July 1 this year.
According to the official information of the plant, the operational business plan for the current month will be 173 thousand tons of iron ore concentrate. Commodity products will be sent to steelmakers Kametstal and Zaporizhstal.
At the same time, it is specified that the planned production volume is distributed between the two ore-dressing plants (ROF) of the plant, which will work around the clock. A total of four processing sections will start operating.
The production process also begins in the open pit of Yugokhta, where 398 thousand tons of yellow ore will be extracted and sent for processing. Transportation of raw materials will be performed by railway transport.
Production also starts with a reduced load in the department of railway transport, crushing and transporting complex, slurry systems shop. Personnel of subdivisions will come out of downtime partially, depending on the need. Auxiliary shops will also be operating.
According to the press release, the November 2022 production plan is 13.4% lower than the same period last year. The reason for the decrease in volumes is a number of objective factors. First and foremost, it is the impossibility of shipping commercial goods by sea from Odessa ports. Electricity shortage, which emerged since early October, has also contributed to production decrease.
As previously reported, since July 1, 2022 Yuzhnoye Mining and Processing Plant has been on forced downtime. The stoppage of production was caused by Russia’s military aggression in Ukraine. In particular, due to the blockage of Odessa sea ports, YGOK lost the ability to send commodity products to consumers in Asia and North Africa.
As reported, in 2021, Yuzhny GOK increased the production of iron ore concentrate by 6.1% compared to 2020 – up to 13 million 581.8 thousand tons.
Yuzhny GOK is one of the main producers of iron ore raw materials – concentrate in Ukraine. It is engaged in mining and enrichment of poor ferruginous quartzite to produce iron ore concentrate.
The raw material base of the plant are quartzites from the Skolevatskoe deposit, located in the central part of the Krivoy Rog iron-ore basin.
YGOK at the beginning of the war was controlled by Metinvest Group and Lanebrook Ltd. (formerly the majority shareholder of Evraz Group, withdrew from the group in 2018), which acquired a 50% stake in YGOK from Privat Group (Dnipro) in late 2007.

,

Ovostar reduced egg production by 5%

Agro-industrial group of companies “Ovostar Union”, one of the leading producers of eggs and egg products in Ukraine, in January-September 2022 reduced the production of chicken eggs in shell by 5.1% compared to the same period in 2021 – 1.19 billion eggs. , while their sales decreased by 2.4% – to 824 million units.
According to the report of the group of companies published on the website of the Warsaw Stock Exchange on Tuesday, Ovostar increased the export of eggs by 6.7% in the first nine months of this year, to 223 million eggs, as a result of which the share of foreign deliveries in the company’s sales increased by 2 percentage points. P. – up to 27% from 25%.
“During the third quarter of 2022, the group’s companies continued to operate under the pressure of risks and uncertainties caused by the ongoing Russian military invasion of Ukraine. Given the specifics of the current operating environment in Ukraine, management assesses the group’s operational results as satisfactory,” said Borys Belikov, CEO of the company. the words of which are given in the message of the holding.
Also, Ovostar processed 339 million eggs in January-September 2022, which is 10% less than its figures for the same period last year.
The number of birds “Ovostara Union” as of September 30, 2022 amounted to 6.84 million heads (14.2% less than on the same date a year earlier), including laying hens – 5.75 million heads (- 13.3%.
Sales of dry egg products of Ovostar for the three quarters of this year decreased by 55.9% compared to January-September 2021 – to 1.16 thousand tons, and the share of their exports in the total sales structure did not change, remaining at the level of 68% .
At the same time, sales of liquid egg products decreased by 26.4% – to 7.53 thousand tons, the share of their exports amounted to 41% against 28% in the same nine months of 2021.
The average selling price of chicken eggs in shell in the specified reporting period of the current year remained at the last year’s level – $0.076/piece, dry egg products increased by 80%, up to $8.63/kg, liquid egg products – by 10%, up to 1 83 $/kg.
The Ovostar Union group of companies is a vertically integrated public holding company, one of the leading producers of chicken eggs and egg products in Europe. The manufacturer has been a certified exporter to EU countries since 2015.
The holding company of the group is Ovostar Union N.V. in mid-June 2011, it held an IPO of 25% of the shares on the Warsaw Stock Exchange and raised $33.2 million. The majority stake in the company is owned by Prime One Capital Limited, which is controlled by its CEO Boris Belikov and chairman of the board of directors Vitaly Veresenko.
Ovostar received $1.65 million in net profit in 2021, which is 38% less compared to 2020. Its EBITDA fell 29% to $5.7 million, while revenue increased 35% to $133.3 million.

, ,

KZHRK reduced production of salable underground iron ore by almost 25%

Kryvyi Rih Iron Ore Plant (KZHRK) in January-September of this year reduced the production of commercial iron ore from underground mining by 24.4% compared to the same period last year – to 2.504 million tons.
According to the enterprise, in September the Pokrovskaya, Krivorozhskaya, Kozatskaya and Ternovskaya mines produced 50,000 tons each. In total, the plant produced 200 thousand tons of products last month, while in August – 270 thousand tons, in July – 280 thousand tons.
As reported, KZHRK in 2021 increased the production of underground iron ore by 12.7% compared to 2020 – up to 4.298 million tons.
KZHRK specializes in underground mining of iron ore. KZHRK has four mines: Pokrovska (former Oktyabrskaya), Kryvorizka (Rodina), Kozatska (former Guards) and Ternivska (former Ordzhonikidze Mining Administration, then Lenin ).
Starmill Limited owns 99.88% of the mill’s shares.
KZHRK is owned by the Metinvest group and the Privat group. The operational management of the enterprise is carried out by the Privat group.

, ,

Zaporizhkoks reduced production of blast-furnace coke by 17.7%

PJSC “Zaporozhkoks”, one of the largest producers of coke products in Ukraine, which is part of the “Metinvest” group, in January-September of this year reduced the production of blast-furnace coke by 17.7% compared to the same period last year – up to 527.9 thousand tons. tons.

According to the company, 61.3 thousand tons were produced in September.

“The decrease in production compared to the same period last year is associated with a shortage of raw materials caused by military operations,” the company explains.

As reported, in 2021, Zaporizhkoks reduced production by 1.9% compared to 2020, to 837.2 thousand tons.

“Zaporozhkoks” produces about 10% of coke produced in Ukraine, owns a full technological cycle for processing coke products. In addition, it produces coke oven gas and pitch coke.

Metinvest is a vertically integrated mining group of companies. Its main shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.

Metinvest Holding LLC is the management company of the Metinvest group.

, ,