Business news from Ukraine

Business news from Ukraine

“Zaporozhkoks” increased coke production by 2.1% in 2024

Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and part of Metinvest Group, increased blast furnace coke production by 2.1% year-on-year in 2024 to 874.7 thousand tons from 856.8 thousand tons.

According to the company, it produced 74.2 thousand tons of coke in December.

As reported, Zaporozhkoks increased its blast furnace coke output by 16% in 2023 compared to 2022, up to 856.8 thousand tons from 737.4 thousand tons.

“Zaporozhkoks produces about 10% of coke in Ukraine and has a full technological cycle of coke products processing. It also produces coke oven gas and pitch coke.

“Metinvest is a vertically integrated mining group of companies. Its 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.

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Ukraine increased gas production in 2024

According to the results of 2024, the volume of natural gas production in Ukraine is estimated at 19.1 billion cubic meters, which is 400 million cubic meters more than in 2023 (18.7 billion cubic meters) and 600 million cubic meters more than in 2022 (18.5 billion cubic meters), said Artem Petrenko, Executive Director of the Association of Gas Producers of Ukraine (AGPU).

“According to preliminary estimates of our association, this year gas production in Ukraine will amount to about 19.1 billion cubic meters. Compared to 2023, we see an increase of more than 400 million cubic meters,” he said during an online meeting on the results of the year and prospects for the development of the energy sector of Ukraine at Energy Club on December 30.

According to the Executive Director, the positive trend of gas production growth in 2024 was ensured by both state-owned JSC Ukrgasvydobuvannya and PJSC Ukrnafta and private sector companies.

“Since August, the negative trend in private companies has been broken, and we have been recording an increase in gas production by private companies since August, and in five months they have managed to increase average daily gas production by more than 25%,” Petrenko said.

Also, according to preliminary data of the AGCU, more than 140 wells were drilled in Ukraine in 2024.

“This actually repeats the record-breaking year of 2023, when more than 150 wells were drilled. In total, over almost three years of full-scale invasion, gas producers have drilled more than 360 new wells,” the expert added.

According to him, since 2018, when the state provided incentives for drilling to Ukrainian gas producers, state and private companies have started drilling more than 720 wells in the country.

According to Petrenko, amid the ban on gas exports, Naftogaz of Ukraine continues to transparently buy gas on the Ukrainian Energy Exchange (UEEX) not only from producers but also from all market participants willing to sell gas on Naftogaz’s terms. According to the AGCU, since 2023, Naftogaz has purchased almost 2 billion cubic meters of gas at the UEEX.

“Under the conditions of closed exports, this is the only effective mechanism of cooperation between Naftogaz and participants, which is an incentive for private companies to increase gas production,” he emphasized.

At the same time, the Executive Director believes that in 2025, a negative factor for Ukrainian gas production will be the level of gas transmission tariffs, which the National Energy and Utilities Regulatory Commission (NEURC) increased for GTS Operator of Ukraine LLC by more than 4.5 times for internal entry points to the GTS starting January 1.

“This will affect not only state-owned companies but also private ones, as under the moratorium on gas price increases, it will reduce the investment opportunities of companies that they could direct to increase Ukrainian gas production,” Petrenko said.

As reported, gas transportation tariffs for internal entry points to the Ukrainian gas transmission system will increase 4.6 times from UAH 101.93 per 1 thousand cubic meters per day to UAH 464.37 per 1 thousand cubic meters per day starting January 1, 2025, and 4 times for external entry points, from UAH 124.16 per 1 thousand cubic meters per day to UAH 501.97 per 1 thousand cubic meters per day.

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Bloomi LLC increased production by 3.7%

Blumi LLC (Odesa), a manufacturer of sanitary and hygienic paper products under the Snow Panda brand, produced UAH 369 million worth of products in January-November 2024, up 3.7% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company slowed the growth rate of this indicator in 10 months of 2024 compared to the same period in 2023, which was 10.3% in the first 10 months of the year.
In physical terms, the production of toilet paper increased by 5.5% to 43.8 million rolls.
As reported, over 11 months, the main Ukrainian producers of sanitary paper products produced 584.84 million rolls of toilet paper, up 4.5% year-on-year.
Bloomi, which was registered in 2014, produces pulp-based sanitary products (toilet paper, napkins, towels) from imported raw paper. The products are manufactured at the facilities of Omega Brokers PE, one of the leading Ukrainian manufacturers of detergents, disinfectants and sanitary products.
In 2023, the company almost doubled its production volume by 2022 to UAH 367.3 million.
The company is co-owned equally (25% each) by four Odesa-based entrepreneurs.

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Ruta TM increased production by 7.7%

In January-November 2024, Ruta, a major Ukrainian manufacturer of sanitary and hygienic paper products, whose management company is VGP JSC (Lutsk), produced products worth UAH 1 billion 588 million, up 7.7% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company has thus slightly accelerated the positive dynamics of production volumes over the first 11 months of the year compared to the same period last year, which it reached in the first nine months.
In physical terms, the company’s production of toilet paper in rolls slightly exceeded the previous year’s figure and amounted to 121.68 million units, which remains the third best result in the industry after Kyiv Cardboard and Paper Mill (248 million units) and Kokhava Paper Mill (125 million units).
The company produces pulp-based sanitary and hygienic products from imported base paper.
VGP’s portfolio includes dry and wet wipes, toilet paper, paper handkerchiefs, and kitchen towels. The assortment includes more than 180 items.
As reported, in 2023, VGP JSC produced products worth UAH 1 billion 611 million, which is 64.8% more than in 2022.

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“Slavic Wallpapers” increased production by 2.2%

Slavic Wallpaper-KFTP JSC (Koryukivka, Chernihiv region), a leading Ukrainian wallpaper producer, produced 15.37 million conventional pieces of wallpaper in January-November 2024, up 2.2% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company’s output growth rate for the first 11 months of the year was almost the same as in the same period last year: it was 2.3% in the first 10 months.
In monetary terms, the factory’s production increased by 1% to UAH 1 billion 168 million in January-November.
In November, the company produced 1.32 million units of wallpaper, up 1.2% compared to November 2023, but down 9.3% compared to October this year.
The Association does not have data on wallpaper production in Ukraine in general for 11 months of 2024, as the State Statistics Service has stopped providing it.
JSC Slavic Wallpaper-KFTP produces more than 10 types of wallpaper from the economy segment (paper, duplex, acrylic) to premium wallpaper (vinyl, non-woven, hot stamped), as well as its own latex, water-dispersion paint under the Latex brand.
As reported, in 2023, Slavic Wallpapers-KFTP increased its wallpaper production by 19% compared to 2022, to 16.2 million units, production volume increased by 38.2% to UAH 1 billion 249 million, and net profit increased almost eightfold to UAH 47.7 million.
Earlier, the company noted that as a result of Russian aggression, sales volumes have significantly decreased, especially through retail channels.

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Beer production in Ukraine increased by almost 5%

Beer production in Ukraine in January-November 2024 reached 129.8 million dal, up 4.9% compared to the same period in 2023, according to the website of the industry organization of brewers Ukrpyvo.
“The expert estimate of beer production in Ukraine (except for non-alcoholic beer with an alcohol content of up to 0.5 vol%) for 11 months of the year is 129.8 million dal, which is 104.9% compared to the same period in 2023. At the same time, this figure is only 82.5% of the production volumes for 11 months of 2021,” the statement said.
As reported, beer production in Ukraine in 2023 increased by 7.8% compared to 2022. At the same time, in 2022, it fell by 27.9% compared to 2021 – to 122.8 million dal.

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