Business news from Ukraine

Business news from Ukraine

Zelenskyy and Stubb discuss defense cooperation and drone production

During his working visit to New York, Ukrainian President Volodymyr Zelenskyy met with Finnish President Alexander Stubb to discuss the situation on the battlefield, Ukraine’s defense needs, and international cooperation.
According to the press service of the Ukrainian president, “the meeting discussed Ukrainian-Finnish defense cooperation, specifically the joint production of drones and the exchange of experience in this area.”
Zelenskyy noted that Ukraine needs air defense systems, including man-portable air defense systems. He also briefed his interlocutor on the current stage of implementation of the agreements reached during the NATO summit in Washington.
“Volodymyr Zelenskyy emphasized that it is important for Ukraine to obtain permission from its partners and the means to strike deep into Russian territory,” the press service reports.
The parties also discussed what international efforts are needed to achieve a lasting and just peace for Ukraine, as well as the role of the Global South in this process.

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“Zelenyi Park” increased production by 25% in January and August

Zelenyi Park LLC (Izyaslav, Khmelnytskyi region), which produces corrugated paper (fluting) and containerboard, increased its production by 24.8% in January-August this year compared to the same period in 2023, to UAH 357.3 million.
According to statistics provided by Ukrpapir Association to Interfax-Ukraine, the company slightly accelerated the growth rate of this indicator over the first eight months of the year, up from 22.2% over the first seven months.
In January-August, production in physical terms increased by 10.8% to 20.25 thousand tons. At the same time, in August, the company increased production of fluting and test liners by 12.6% by August 2023 and by 52% by July this year – up to 3.43 thousand tons.
Green Park LLC was registered in 2011 and manufactures products from waste paper.
The factory is equipped with Finnish Valmet equipment, which allows it to produce fluting and testliner with a density of 70 to 200 g/sq m and a roll width of up to 2.8 m.
According to the Clarity Project, the owner of 100% of Zelenyi Park LLC is Cyprus-registered Carton Mill Limited, and the ultimate beneficiaries are Kyiv resident Volodymyr Shandra and co-owner of ATB Corporation Gennadiy Butkevych.
The company ended 2023 with a loss of UAH 78.2 million (56% higher than a year earlier) on a 6.8% drop in revenue to UAH 498.6 million, and in the first half of this year increased revenue by 58.4% to UAH 258 million in January-June 2023, but suffered a loss of more than UAH 47 million.

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“Slavic Wallpaper-KFTB” increased its wallpaper production by 4%

JSC Slavic Wallpaper-KFTB (Koryukivka, Chernihiv region), a leading Ukrainian wallpaper producer, produced 11.2 million conventional pieces of wallpaper in January-August 2024, up 3.9% compared to the same period in 2023.
According to statistics provided by Ukrpapir Association to Interfax-Ukraine, the company’s output growth rate slowed further in the first eight months of the year compared to the same period last year: it was 8.9% in the first six months and 6.8% in the first seven months.
Also, in monetary terms, the factory’s production volume in January-August increased by 2% to UAH 851.5 million.
In August, the company produced 1.32 million meters of wallpaper, which is 13.8% less than in August-2023 and 15.8% less than in July this year.
The EBA has no data on wallpaper production in Ukraine in January-August 2024, as the State Statistics Service has stopped providing it.
As reported, in 2023, Slavic Wallpaper-KFTB increased its wallpaper production by 19% compared to 2022, to 16.2 million meters, 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, especially through retail channels, had significantly decreased.
JSC Slavic Wallpaper-KFTB produces more than 10 types of wallpaper from the economy segment (paper, duplex, acrylic) to premium wallpaper (vinyl, non-woven, hot stamped).
In addition, the factory produces its own latex, water-dispersion paint under the Latex brand.

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“Naftogaz” increased gas production by 7.7%

In January-August 2024, JSC Ukrgasvydobuvannya and PJSC Ukrnafta increased commercial gas production by 7.7% (by 0.7 bcm) compared to the same period last year – up to 9.8 bcm.
These data were made public by Oleksiy Chernyshov, CEO of Naftogaz Group, at the European Business Association’s event Global Forecast. Strengthening Unity”.
Chernyshov also clarified that the group’s oil and condensate production during this period amounted to 1.3 million tons, compared to 1.2 million tons in January-August 2023. The plan for the year is 2 million tons, with 1.8 million tons in 2023.
According to him, Naftogaz is one of the largest investors in the country’s economy with an annual volume of investments and capital expenditures of about $2 billion.
Earlier, UGV reported an increase in commercial gas production by 7.2% to 9.26 billion cubic meters over 8 months of 2024.
As reported, Naftogaz’s consolidated quarterly report says that the group’s forecasted commercial gas production for 2024 is expected to reach 14.6 bcm. In February, Chernyshov said that the group’s goal for this year was to get closer to 15 billion cubic meters.

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Kokhava Paper Mill accelerates production growth rate to 67%

In January-August 2024, Kokhavyno Paper Mill (KPM, Lviv region), which produces sanitary paper products, increased its production by 67.4% year-on-year to UAH 1 billion 279 million, according to statistics from UkrPapir Association.
As reported, in the first seven months of the year, the mill’s production growth was 61.1%, and in the first six months of the year it was 54.5% compared to the same period last year.
According to the association’s statistics provided to Interfax-Ukraine, the production of the base paper for sanitary products at the mill increased by 34.8% to 37.7 thousand tons over the eight months.
The production of toilet paper in rolls remained at the last year’s level – 90.4 million units. KPF confidently ranks second in terms of its output after Kyiv CPP.
As reported, in October last year, Kokhava Pulp and Paper Mill put into operation a paper machine for the production of cellulose base paper (previously, it produced only waste paper-based products). To organize such production in 2021, the mill attracted a EUR 13.8 million loan from the EBRD.
Kokhava Pulp and Paper Mill, which has been operating since 1939, produces base paper for sanitary and hygiene products, as well as toilet paper and paper towels. Before the new machine was put into operation, the mill had two pulp mills with a total capacity of 40 thousand tons of base paper per year.
In 2023, the plant increased its production by 18% compared to 2022 to UAH 1 billion 151.2 million, while net profit increased 2.7 times to UAH 137 million.

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“Poninkivska CPPF-Ukraine” increases corrugated packaging production by 19%

Poninkivska Cardboard and Paper Mill-Ukraine (PKPF-Ukraine, Khmelnytsky region), a major Ukrainian corrugated cardboard producer, increased its corrugated packaging output by 19% in January-August 2024 compared to the same period in 2023, to 63.64 million square meters.
According to statistics provided to Interfax-Ukraine by Ukrpapir Association, the mill continues to be one of the top three producers of corrugated packaging after Kyiv Cardboard and Paper Mill and Trypillia Packaging Plant.
Over eight months, the company also increased its production of containerboard (including corrugated paper) by 4.1% to 51.3 thousand tons, and produced more paper by 75% to 0.72 thousand tons.
In monetary terms, in January-August, PCBF-Ukraine produced products worth UAH 1 billion 742.5 million (+16.5%).
As reported with reference to the data collected by the association from the main enterprises of the industry, in January-August 2024, the production of paper and cardboard in Ukraine increased by 3% compared to the same period in 2023 – up to 390.5 thousand tons, cardboard boxes – by 17%, to 384.3 million square meters.
Poninkivska Paper Mill (formerly Poninkiv Cardboard and Paper Mill), once the largest producer of school notebooks, now has one main production line – paper and cardboard, producing mainly corrugated cardboard and corrugated packaging, as well as wrapping and waste paper.
The plant is part of the United Cardboard Company-Ukraine (UCC, Lutsk) owned by businessman Mykola Lobov, whose production assets include, among others, Lutsk KPF-Ukraine (Volyn region), which produced 41.4 thousand tons of various cardboard in eight months (according to Ukrpapir), almost the same as last year, and 31.8 million square meters of corrugated boxes, compared to 2.7 million square meters a year earlier.
As reported, in 2023, PCBF-Ukraine produced products worth almost UAH 2 billion 450 million, up 3% year-on-year. Net profit increased 2.7 times to UAH 27 million.

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