Business news from Ukraine

Business news from Ukraine

“Ukrgasvydobuvannya” increased gas production by 7.2%

In January-August 2024, Ukrgasvydobuvannya JSC (UGV) increased commercial gas production by 7.2% compared to the same period last year – up to 9.26 billion cubic meters, the company reported on its Facebook page.

During this period, UGV completed drilling 62 wells, of which 52 were put into operation. Of these, 23 have an initial daily flow rate of more than 100 thousand cubic meters.

“We continue to actively drill wells, introduce new technologies, explore new fields – we do everything to increase gas production every day. The cubic meters of gas and oil produced make Ukraine more stable and provide a reliable rear for our soldiers,” said Serhiy Lahno, Chairman of Ukrgasvydobuvannya.

As reported, in 2023, the company produced 13.224 bcm of commercial gas, which is 0.679 bcm more than in 2022.

“In 2023, Ukrgasvydobuvannya launched 86 new wells, 24 of which had an initial flow rate of more than 100 thousand cubic meters.

NJSC Naftogaz of Ukraine owns 100% of Ukrgasvydobuvannya shares.

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“Dneprovsky Iron and Steel Works” reduced rolled steel production by 54.6%

Dnipro Metallurgical Plant (DMZ), a part of DCH Steel of businessman Aleksandr Yaroslavsky’s DCH Group, cut rolled steel production by 54.6% year-on-year to 33.8 thousand tons in January-August this year.

According to information in DCH Steel’s corporate newspaper on Thursday, the company did not produce rolled metal products in August, but rolling shop No. 2 shipped 2.3 thousand tons of steel products to consumers. In August 2023, the company produced 4.4 thousand tons of rolled metal products.

“The August rolling campaign has been postponed to September due to a change in the delivery time of billets. The rollers are planning to start working on September 13, and it all depends on the pace of billets supply by the customer,” the company said in a statement.

At the same time, coke production in the first eight months of 2024 decreased by 2% to 194 thousand tons. In August, coke production decreased by 6.7% compared to the previous month to 24.4 thousand tons. In August 2023, 25.8 thousand tons of coke were produced.

As reported, in 2023, DMZ increased its rolled metal output by 86.2% compared to 2022, up to 105.6 thousand tons, and coke output by 38.5%, up to 292.7 thousand tons.

In 2022, the plant reduced rolled steel production by 74.2% compared to 2021, to 58.4 thousand tons, and coke production by 56.3%, to 211.3 thousand tons.

DMZ specializes in the production of steel, pig iron, rolled products and products made from them.

On March 1, 2018, DCH Group signed an agreement to buy Dnipro Metallurgical Plant from Evraz.

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“Slavic Wallpaper-KFTB” increased its wallpaper production by 7%

JSC Slavic Wallpaper-KFTB (Koryukivka, Chernihiv region), a leading Ukrainian wallpaper producer, produced 9.9 million conventional pieces of wallpaper in January-July 2024, up 6.8% year-on-year.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company’s production growth rate slowed in the first seven months of the year compared to the same period last year, which was 8.9% in the first half of the year.
At the same time, in monetary terms, the factory’s production volume in January-July increased by 5.3% to UAH 757.6 million.
In July, the company produced 1.57 million units of wallpaper, which is 3% less than in July 2023 and 8% less than in June this year.
The EBA has no data on the total production of wallpaper in Ukraine in January-July 2024, as the State Statistics Service has stopped providing it.
As reported, in 2023, Slavic Wallpaper-KFTP increased its wallpaper production by 19% compared to 2022, to 16.2 million meters, while production 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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Zelenyi Park increased production by 22% in January-July this year

Zelenyi Park LLC (Iziaslav, Khmelnytskyi region), which produces corrugated paper (fluting) and containerboard, increased its production by 22.2% in January-July this year compared to the same period in 2023, to almost UAH 297 million.

According to UkrPapir Association’s statistics provided to Interfax-Ukraine, the company’s output increased by 10.5% in physical terms to 16.8 thousand tons. At the same time, in July, the company reduced production of fluting and testliner by 35% to 2.25 thousand tons by July 2023.

Zelenyi Park LLC was registered in 2011 and manufactures products from waste paper (the volume of acceptance of pressed sorted waste paper starts from 18 tons).

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, 100% of the company is owned by Cyprus-registered Carton Mill Limited, and the ultimate beneficiaries are Kyiv resident Volodymyr Shandra and ATB co-owner Gennadiy Butkevych.

The company ended 2023 with a loss of UAH 78.2 million (56% more 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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Beer production in Ukraine increased by 6.9%

Beer production in Ukraine in January-July 2024 reached 84.4 million dal, up 6.9% 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 for 7 months of 2024 is 84.4 million dal, or 106.9% compared to the same period in 2023. At the same time, this figure is only 80.9% of the production volume for 7 months of 2021,” the statement said.
Beer production in Ukraine in 2022 decreased by 27.9% compared to 2021 – to 122.8 million dal.
By the end of 2022, the brewing industry had partially recovered from a 50% drop in production in the first quarter due to the Russian invasion and the shutdown of some breweries.
Thus, in the first four months of the year, the decline amounted to 42.8% compared to the same period in 2021, January-May – 36.4%, January-June – 32%, January-July and January-August – 31.6% each, January-September – 30.5%, January-October – 28.6%, January-November – 28.1%, and 27.9% in the previous year.

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Kokhava Paper Mill accelerated its production growth rate to 61%

Kokhavyn paper mill (KBF, Lviv region), which produces sanitary and hygienic paper products, in January-July 2024 increased its output by 61.1% against the same period of 2023 – up to UAH 1 billion 069 million, according to the statistics of the association “UkrPapir”.
As reported, at the end of the half-year the factory’s production growth amounted to 54.5% to the same period last year.
According to the statistical data of the association provided to Interfax-Ukraine, in physical terms, the production of paper-base for sanitary-hygienic products at the factory for seven months increased by 33.6% – up to 32.5 thousand tons.
The output of toilet paper in rolls increased by 1.5% to 80.1 million pieces. KPF confidently ranks second in its output after Kyiv PPC.
As it was reported, in October 2023 Kokhava BF commissioned a paper machine for production of cellulose base paper (earlier they produced only on recovered paper basis). KBF attracted EUR13.8 mln loan from EBRD to organize such production in 2021.
Kokhavinskaya PF, which has been operating since 1939, produces backing paper for sanitary goods, as well as toilet paper and paper towels. Prior to the commissioning of the new machine, it had two PPMs with a total capacity of 40,000 tons of backing paper per year.
In 2023, the mill increased its output by 18% compared to 2022 – up to UAH 1 bln 151.2 mln, net profit increased 2.7 times – up to UAH 137 mln.

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