FAO (Food and Agriculture Organization of the United Nations) in September raised the forecast for world wheat harvest in 2022 to 787.2 million tons, which is 1% more than was harvested in 2021, according to a summary of the organization.
“And, perhaps, (the indicator) will reach an even higher, record level. This is due to a higher than expected harvest in the European Union and the Russian Federation,” the document says.
In general, world grain production will decrease by 1.7% – to 2 billion 768 million tons, including feed grain – by 2.8%, to 1 billion 468 million tons, “due mainly to unfavorable agrotechnical conditions in the United States “explain FAO experts.
In addition, global rice production in 2022 is expected to reach 512.8 million tonnes, down 2.4% from the all-time high of 2021. The decline in the forecast compared to September is due to a prolonged summer drought, high temperatures in China and flooding in Pakistan, the document says.
As expected, grain consumption in the 2022/2023 agricultural year may decrease by 0.5% – to 2 billion 788 million tons, mainly due to a decrease in feed consumption.
Projects for the construction of factories for the production of float glass products in the Zakarpattia and Kirovohrad regions for EUR195 million and $250 million, respectively, have been presented in Ukraine.
According to the presentation by Silverland Industrial Park, the project in the village of Klyucharki (Mukachevskiy district, Zakarpattia region) is estimated at EUR195 million, with 10% of the amount coming from the company’s own investments. The area of the land plot for construction is 19 hectares. The capacity of the production line will be 750 tons/day.
“Before the start of a full-scale war, the demand for glass in the Ukrainian market was 28-30 million square meters per year. Our company will be able to cover at least 50% of this demand. Independent production will reduce dependence on external suppliers, contribute to the post-war reconstruction of Ukraine In the future, there is an opportunity to enter the international export market,” Silverland representative Matvey Isichenko said at the International Investment Fair from UkraineInvest on Thursday.
The project implementation period is two years, the expected payback period is 4 years. The internal rate of return is estimated by the company’s analysts at 10%, the EBITDA margin is 31%.
According to Isichenko, there are no competitors in this area on the Ukrainian market, and the proximity of the enterprise to the western border will allow establishing cooperation with the nearest European countries and reducing logistics costs.
The implementation of the Genesis Engineering float glass plant project in the Kirovograd region is estimated at $250 million, while the company’s own investments will amount to $80 million. The area of land for the construction of the plant is 38 hectares.
“We are planning to build a plant in the central part of Ukraine, which gives us a good balance of access to high-quality raw materials and the target market, both domestic and export,” said Georgy Idiatullin, owner of Genesis Engineering.
The plant’s production capacity will be 510 tons/day, or 18 million square meters. m of glass per year. Products include clear glass 2-19 mm thick, with different finishes and shades. The production is planned to use equipment that will reduce emissions into the environment by 70%.
The implementation of the project will create 340 new jobs. The construction period is 3 years, the expected payback period of the project is 10 years. The internal rate of return is estimated by analysts at 11.28%, the EBITDA margin is 28%. According to the project implementation plan, in the first year of operation, the export income will be approximately $40 million.
Products will be certified according to European standards and export-oriented, Idiatullin said.
“There is a fairly large shortage of such products in the world, and the predicted growth of the world market is 8%, the European market is 6.5% annually. The volume of the world market today is $105 billion, the volume of the Ukrainian market for 2020 was $200 million and was completely dependent on imports “, – said the speaker during the presentation.
According to Opendatabot, Silverland IP LLC was established in May 2022. Among the founders are Andrey Isichenko and Alexander Popov (34% each), as well as Mikhail Lashin (32%).
Genesis Engineering LLC was established in 2014. Its owners are Georgy Idiatullin (50%), Konstantin Shcherban (33%) and Vladlena Kisilenko (16%).
The investment company BGV Group Management has launched a new plant for the production of crushed stone products in the Zhytomyr region, investments in construction amounted to $22 million.
“Our company BGV Group Management has officially launched a state-of-the-art crushed stone plant. Fully automated, with the latest technological Swedish SANDVIK equipment, mining equipment and infrastructure built from scratch. We did all this literally in the forest, greenfield and during a full-scale war in the country,” said member of the board of directors of the investment company Sergei Voitsekhovsky.
According to him, the production capacity of the plant is 1.5 million tons of rock mass per year. Granite Quarry LLC operates on the basis of the Zherevsky deposit with an area of 63.2 hectares, the reserves of which amount to 46 million cubic meters of rock.
The opening of the plant will create 200 new jobs in the region, Voitsekhovsky emphasized.
BGV Group Management is an investment company of Gennady Butkevich, developing businesses and projects in the mining, processing, energy efficiency, retail and development sectors.
The American company Amsted Rail intends to open the production of bearings and components for railcars in Lviv. According to the press service of the Lviv Regional Military Administration, this was announced today at a meeting with the head of the LOVA Maxim Kozitsky, Amsted Rail global business director Eric Luhmann.
“We intend to open the production of bearings and components for cars in Lviv. This can be either the construction of a plant or cooperation with a company that is already operating on the market,” the press service of the Lviv Regional Military Administration quoted Luman as saying.
According to Luman, the company is now looking for a territory, a warehouse of one of the factories in the Lviv region, in order to transfer equipment there.
As stated in the press service, Amsted Rail plans to “return to the Ukrainian market part of the railway components, the production of which ceased due to the Russian invasion.”
“The Lviv region is ready to work with international partners – the favorable location of the region will allow everyone who wants to work in the region to cooperate with Europe. I am sure that the cooperation between Amsted Rail and the plant in the Lviv region,” the press service quotes the words of the head of LOV Maxim Kozitsky.
According to the Lviv OVA, Amsted Rail has been operating in Ukraine since 2004 and manufactures products related to the road industry.