Weidmann Malyn paper factory (MPF, Zhytomyr region), the only producer of electrical insulating board for power engineering machines in Ukraine, reduced production by 12.6% in January-August 2020 compared with January-August 2019, to UAH 351.85 million, the UkrPapir association has said.
According to UkrPapir data provided to Interfax-Ukraine, in physical terms during this period the factory cut industrial paper production by 8.3%, to 3,650 tonnes, whereas transformer board production increased by 26%, to 3,580 tonnes.
MPF Weidmann, founded in 1871 and a member of the Weidmann international group from 2000, is the only company in Eastern Europe that can supply almost all kinds of electrical insulating paper and cardboard meeting regional and international standards.
The factory produces transformer board, electrical insulating paper for power cables and transformer windings, crepe paper and other types of paper for industrial use, such as, packaging, filtration, and wallpaper.
According to recent data, metallurgical plant Azovstal (Mariupol, Donetsk region), a member of Metinvest Group, in January-August 2020 increased production of general rolled metals by 3.6% compared to the same period last year, to 2.66 million tonnes.
The representative of the enterprise told Interfax-Ukraine that during this period steel production increased by 3.2%, to 2.82 million tonnes, cast iron production increased by 8.3%, to 2.52 million tonnes.
In August, Azovstal produced 380,000 tonnes of general rolled metals, 410,000 tonnes of steel and 366,000 tonnes of cast iron.
Azovstal in 2019 reduced production of general rolled metals by 3.2% compared to 2018, to 3.753 million tonnes, production of steel by 1.6%, to 4.016 million tonnes, production of cast iron by 6.3%, to 3.475 million tonnes.
The enterprise belongs to Metinvest Group, the main shareholders of which are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the management company of Metinvest Group.
Ukrainian metal and mining enterprises in January-August 2020 decreased rolled steel output 1.5% year-over-year, to 12.337 million tonnes.
According to the Ukrmetallurgprom association, steel smelting fell by 6.2%, to 13.742 million tonnes, cast iron output by 0.9%, to 13.599 million tonnes.
In August 2020, Ukrainian metal companies produced 1.69 million tonnes of rolled steel, 1.887 million tonnes of steel, and 1.858 million tonnes of cast iron.
As reported, Ukrainian metal and mining enterprises in 2019 cut rolled steel output by 1% year-over-year, to 18.4 million tonnes. Steel smelting fell by 1%, to 20.8 million tonnes, cast iron output by 2%, to 20 million tonnes.
The Verkhovna Rada of Ukraine has approved some fiscal incentives for the development of electric transport in Ukraine, in particular, VAT and import duty exemption from 2021 until 2028 for equipment and spare parts for own production of electric transport (passenger cars, electric buses, electric trucks and special-purpose vehicles).
Bill No. 3476 amending the Tax Code and bill No. 3477 amending the Customs Code were passed at the first reading by 316 and 308 lawmakers respectively.
The proposed exemption will not apply only to equipment for the production of trolleybuses, because their output has already been established in Ukraine.
In addition, bill No. 3476 proposes to exempt the electrical industry companies selling electric motors for the production of electric vehicles (with the exception of trolleybuses), lithium-ion batteries, chargers, as well as automobile companies selling electric cars of their own production from paying income tax until December 31, 2033.
The bill proposes to extend or expand benefits for importers and buyers of electric vehicles.
It is proposed, in particular, to extend the VAT exemption for import and/or supply of electric cars until December 31, 2025 (currently the benefit is valid until the end of 2022).
A buyer of an electric car before December 31, 2030 is also offered to be exempted from paying the mandatory pension insurance fee, be provided with a tax discount on the payment of personal income tax, but these standards are proposed to be introduced from January 1, 2026.
According to an explanatory note to the bills, there is a sufficient industrial potential of Ukraine in the production of electric vehicles. In particular, there are five bus plants, a truck plant, and the facilities, which produce 300,000 passenger cars at three plants.
However, today the government is stimulating the import of electric vehicles, not their production. In particular, from January 1, 2016, there is no import duty, exemption from VAT is extended until 2022 and the excise rate is set at EUR 1 per 1 kW/h of battery capacity.
“The introduction of preferential taxation increased the import of electric vehicles from 1,706 vehicles in 2016 to 7,542 vehicles in 2019, but used electric vehicles are dominating in the market (93% in 2019),” the authors of the bills said.
ELECTRIC VEHICLES, EQUIPMENT, IMPORTED, PARLIAMENT, PRODUCTION
Plans to resume domestic vaccine production are being discussed in Ukraine, Ukrainian Health Minister Maksym Stepanov said in an interview with Radio Liberty.
“You probably know that in Ukraine, apparently back in the 1990s, the production of any vaccine was completely destroyed. Now we have repeatedly talked with the President of the country to start restoring vaccine production. This concerns influenza, this applies to other vaccines, which we use every year,” Stepanov on the air of the Saturday Interview program.
According to the minister, the country has a corresponding scientific potential.
“We have a good school. Of course, this process is not very fast. It will take several years for us to have our own vaccine developed by our scientists. At the same time, I have already held several meetings with our entrepreneurs who have appropriate production lines. Farmak, Lekhim, which have the corresponding certified lines for the production of vaccines,can produce either a Ukrainian vaccine, if it appears, or another,” Stepanov said.
There is no technical capacity in Ukraine to conduct research and development of any vaccines, including against coronavirus, but preparations are underway for mass production, Ukrainian President Volodymyr Zelensky has said.
“From the very beginning of the pandemic, we gathered all specialists. We have brilliant doctors, and this is true. Technically, we could not produce any vaccines, or develop from the point of view of science – there is no medical technical equipment. With all due respect, once again, to our doctors and scientists. There are no questions for them, they are great. But there was nothing at all, there were no laboratories, vaccine production – I will tell you frankly, now there are already several enterprises that are ready for mass production,” he told reporters during a working visit to Mykolaiv region.
Zelensky noted that the Health Ministry of Ukraine has already begun negotiations with the countries that are developing vaccine against coronavirus.
“If we manage to get the vaccine from one country or another, we are ready to produce it on a large scale, helping other countries and, first of all, helping Ukrainians,” the president stressed.
In addition, it is planned to create a research center in Ukraine specializing in the development of vaccines.
“The question is global about science, medicine, the development of vaccines for the future, so this task has already been set. The Ministry of Health and the prime minister are gathering scientists separately, we will create a separate center, gather the best scientists of Ukraine, so that we could be ready for any future challenges. It takes time, but I believe that if we have a desire, we will do the rest,” Zelensky said.
