Business news from Ukraine

One of world’s largest manufacturers of seamless stainless pipes “Centravis” stopped production

PJSC Centravis Production Ukraine (Centravis Production Ukraine), part of the holding Centravis Ltd., suspended the production process last week due to shelling by Russian invaders of the city of Nikopol, Dnepropetrovsk region, where the company’s assets are located.
“The Russians continue their terror against the civilian population of Ukraine, the shelling of civilian infrastructure. Nikopol was no exception. The employees of Centravis were not injured. The production equipment was not damaged,” Chief Sales Officer (CSO) Artem Atanasov said in a letter to customers in Friday.
According to him, at the time of the escalation, the administration of Centravis took additional security measures to protect employees and their families.
“We continue to ship products. The main production was temporarily stopped this week, but we plan to restart it on Monday, July 25,” the sales director stated.
At the same time, he noted that the supply of blanks to the enterprise is stable. “We continue to accept orders, there is an opportunity to place orders for September and beyond,” Atanasov said.
He added that the logistics team is actively working and constantly looking for better and safer ways to deliver finished products. Sales offices around the world in Essen, Milan, Krakow, Lugano, Houston and Dubai are open, financial and administrative customer support departments also continue to work.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnepropetrovsk region). Included in the top 10 global players, supplies pipes to more than 70 countries from different regions, in particular to Thyssenkrupp, Buhlmann, BMW, Alstom, Linde, Samsung, Volkswagen.
Before the Russian aggression, more than 1,400 people worked at the enterprise.
Holding Centravis Ltd. was created on the basis of CJSC “Nikopol Stainless Pipe Plant”, service and trading companies LLC “Production and Commercial Enterprise “UVIS”. Its shareholders are members of the Atanasov family.
Owned by Centravis Ltd. 100% of the shares of PJSC “Centravis Production Ukraine” is located.

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Cardboard and Paper Company raises production by 42.1%

Cardboard and Paper Company LLC (Lviv), a major Ukrainian manufacturer of cardboard tubes and sanitary and hygienic products, increased production by 42.1% in January-June compared to the same period in 2021, to UAH 501.28 million.
According to the statistics of the UkrPapir association provided to Interfax-Ukraine, in kind, over this period, the company increased the production of paper – the basis for sanitary and hygienic products – by 12%, to 3,440 tonnes, while increasing the production of toilet paper in rolls by 39%, to 2.1 million pieces.
At the same time, the output of cardboard products fell by 2.2%, to 12,840 tonnes.
According to the statistics of UkrPapir, the factory continued to work all months since the beginning of the year, reducing the production of paper and cardboard in March, but in April and May it already increased their production by 16.4% and 6.7%, respectively (compared to the same months last year), and in June by 7.7%.
Cardboard and Paper Company (before 2011 it was Lvivkartonoplast) produces goods and semi-finished products from recycled cardboard (cardboard sheets, corners, tubes) and cellulose paper (toilet paper, towels, napkins of White Line and Papero trademarks).
In 2021, the company produced products worth UAH 782.7 million, which is 46.7% more than in 2020.

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UKRTRUBOPROM ENTERPRISES CUT PRODUCTION OF PIPES BY 27% IN JAN-JUNE – CEO

In January-June of the current year, the enterprises of the Ukrtruboprom association, according to recent data, reduced production of pipes by 27.1% compared to the same period last year, to 226,900 tonnes.
According to a press release from the association on Wednesday, in January, Ukrtruboprom enterprises increased production of pipes by 2.2 times compared to the same period last year, to 61,300 tonnes, and in February by 16.2%, to 49,000 tonnes, but production has been declining since March.
So, in March, production of pipes amounted to 3,500 tonnes (5.9% compared to March 2021), in April – 18,500 tonnes (32.1% compared to March 2021), in May – 51,400 tonnes (86.5%), and in June – 43,200 tonnes (64.5%).
It is specified that in general, in the first half of the year, all plants showed a negative trend. Interpipe Niko Tube and Trubostal reduced production of seamless pipes by 14% and 44.4% respectively, Centravis stainless pipes by 25%, Interpipe Novomoskovsk Pipe Plant electric-welded pipes by 37.6%.
Heorhiy Polsky, General Director of Ukrtruboprom, noted that at the beginning of the year, pipe plants were increasing their output amid favorable external market conditions, which were mainly due to the post-COVID recovery of the global economy and high hydrocarbon prices. However, the full-scale invasion of Russian troops into the territory of Ukraine led to a severe decline in production: in March, almost the entire industry stopped.

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BEER PRODUCTION IN UKRAINE DECREASES BY 32% IN FIRST HALF OF YEAR

Beer production in Ukraine (except non-alcoholic beer with an alcohol content of up to 0.5% vol.) in January-June 2022 decreased by 32% compared to the first half of 2021 – to 57.6 million dal.
As reported on the site of the industry organization of brewers “Ukrpyvo”, in the first half of 2022, the recovery of beer production is recorded after the fall in the first quarter, when this indicator decreased by 50% compared to January-March – from 34.1 million dal to 17.1 million dal
In the future, the production of beer in the country was restored – according to the results of four months of this year, the decline was 42.8% compared to the same period last year, in May – 36.4%, in June – 32%.
According to “Ukrpiva”, malt production in the first half of 2022 decreased by 50.6% compared to January-June 2021 – to 55.1 thousand. tons, while according to the results of the first quarter of 2022, its production decreased by 40.8%.
As reported, Ukraine produced 5% less beer in 2021 compared to 2020 – 170.5 million dal, and in 2020 its production decreased by 0.4% compared to 2019 – to 179.7 million dal.
Malt production in 2021 amounted to 218.5 thousand tons, which is 19.5% less than in 2020. At the same time, in the year before last, its production decreased by 18% compared to 2019, to 275 thousand. tons

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FERREXPO CUTS PELLET PRODUCTION BY 14% IN H1, BY 23% IN Q2 2022 DUE TO LOGISTICAL PROBLEMS CAUSED BY WAR

British Ferrexpo plc, which controls in Ukraine, in particular, Poltava and Yeristovo mining and processing plants, reduced production of pellets by 14% in January-June 2022 compared to the same period last year, to 4.797 million tonnes.
According to the company’s press release on Thursday, pellet production in the second quarter of this year decreased by 23% compared to the first quarter, and by 27% by April-June 2021, to 2.085 million tonnes.
In the first half of 2022, production of premium pellets with an iron content of 65% amounted to 4.707 million tonnes (a decrease of 13%), including in the second quarter – 1.994 million tonnes (a decrease of 26% compared to the previous quarter and 28% compared to the same period last of the year). Output of direct reduced iron pellets (DRI, 67% of iron) in January-June amounted to 90,000 tonnes (an increase of 33% compared to six months of 2021), which were produced in the second quarter of this year, while they were not produced in the first one.
Pellets with an iron content of 62% were not produced in January-June of the current year.
At the same time, total production of marketable products (pellets and iron ore concentrate) over six months of 2022 decreased by 16%, to 4.816 million tonnes, in the second quarter compared to the first one – by 22%, and versus April-June 2021 – by 28%, to 2.103 million tonnes. In particular, output of commercial concentrate over six months of 2022 decreased by 88%, to 19,000 tonnes, the entire volume was produced in the second quarter, while there was no output in January-March.
The company explains the decline in pellet production by the ongoing war of the Russian Federation in Ukraine and the associated logistical restrictions. The Group continues to operate one to three of its pelletizing lines, reflecting the availability of logistics in Ukraine.
Sales in the first half of 2022 were 4.4 million tonnes, a decrease of 21% year-on-year and reflecting logistical constraints. At the same time, the group is negotiating with a number of logistics providers to resume access to maritime markets through neighboring countries.
Jim North, Chief Executive Officer of Ferrexpo, noted in his comment that the company continues to work and adapt its business in Ukraine as new risks emerge.
“We also continue to be impressed by the remarkable resilience of the people of Ukraine, despite the continual bombardment over the last four months. Our production result in the second quarter of 2022 reflects the determination of our people, our suppliers and our customers… In terms of logistics availability, which remains the largest constraint on our business at the present time, we are advancing efforts to increase seaborne exports and have made initial deliveries to customers,” he said.
Ferrexpo is an iron ore company with assets in Ukraine.

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UKRAINIAN PLANT “TEKHKOMPLEKT” BEGAN PRODUCTION OF GRAIN CARRIERS

The Tekhkomplekt special equipment plant, which has production facilities in the Kyiv and Poltava regions, has begun production of grain trucks with a large load under the AGRiLine marking, the company reports on its website.
“The first model of a grain carrier, called MEGA Koshmanivets, was released in partnership with our dealer, Eridon Tech, and the entire line of grain carriers will be produced under the AGRiLine label and will be mounted on truck chassis, semi-trailers and trailers,” the message says.
The body of the grain truck MEGA Koshmanivets has unloading back and on the right side, the volume of loading with agricultural crops is designed for 35 cubic meters. m.
A Chinese truck with a gross weight of 33.5 tons and a permissible load capacity of 24.5 tons is used as the base chassis, but, as noted in the message, a grain carrier with such a body volume and based on any other chassis with a gross weight of 32 tons or more is recommended to load up to 20 tons.
Among the advantages of the grain truck body, Tekhkomplekt notes the use of Strenx 700 high-strength steel for the manufacture of load-bearing elements of the platform and sides, Hyva hydraulics, imported factory fittings for tipping the body, and other structural advantages.
The production of AGRiLine grain carriers has passed the necessary tests and is certified by Ukrainian notification authorities.
The plant is currently forming a portfolio of orders for 2023.
Plant “Tekhkomplekt” is an enterprise with a full cycle of production of special equipment and superstructures on the chassis of cars of various brands. The resources of the enterprise allow to repair and re-equip up to 100 trucks and commercial vehicles monthly. For 24 years of operation, the plant has shipped more than 35 thousand units to customers. special equipment.
Earlier it was reported that in connection with the abandonment of the Belarusian (MAZ) and Russian (GAZ) manufacturers, which were previously actively used as new base chassis, Tekhkomplekt is expanding their model range, including through Asian manufacturers.

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