Production of natural gas in Ukraine in January-August 2019 increased, according to recent data, by 0.9% (by 130 million cubic meters) compared to the same period in 2018, to 13.882 billion cubic meters, according to data from JSC Ukrtransgaz.
According to the calculations of the Interfax-Ukraine agency, gas production by Ukrgazvydobuvannia amounted to 10.073 billion cubic meters (0.6% less compared to January-August 2018), by PJSC Ukrnafta to 773.6 million cubic meters (9.9% more), and other companies to 3.036 billion cubic meters (4.3% up).
In August 2019, gas production amounted to 1.694 billion cubic meters (4.8% less compared to August 2018), in particular by extraction by Ukrgazvydobuvannia totaled 1.205 billion cubic meters (7.2% less), Ukrnafta some 100.9 million cubic meters (7.6% more), and other companies some 387.9 million cubic meters (down by 0.01%).
Ukraine officially opened a new sugar production season on September 1 with the production of sugar beet at Radekhivsky Tsukor LLC, the National Association of Sugar Producers Ukrtsukor has said. According to its website, this year the most part of sugar plants of Ukraine postponed a start of new season of beet refining for later terms.
“The reason is unfavorable weather conditions, because in most regions of Ukraine, soil crust has formed due to hot and dry weather, which complicates the technological process of harvesting. In other parts of the country, due to heavy rains, the sugar content of root crops decreased, so the farmers stopped field works, expecting higher quality indicators of the crops. These very factors influence the reduction of sugar beet digging,” the association quotes its deputy board chairman Ruslan Yanenko as saying.
Besides, Ukrtsukor expects better situation on the fields, and the most number of plants will start operating in the end of September. In total, 32 sugar plants will work in new season.
As reported, the production of sugar in the 2018/2019 marketing year decreased by 15%, to 1.82 million tonnes. Some 42 sugar refineries operated during that season.
According to estimates of Ukrtsukor, the number of operating sugar plants in 2019/2020 will drop from 42 to 32, when sugar production is predicted on the level of 1.1-1.2 million tonnes.
Feednova LLC, which is a part of Effective Investments Group of Companies, plans to launch in May 2020 a first phase of production of animal fats and feed additives for farm animals and pets in Busk of Lviv region worth $12 million.
As the company’s press service told Interfax-Ukraine, refinery capacity of the first phase will total 130,000 tonnes of raw materials per day. The first phase of the plant will include two production lines.
The launch of the second phase scheduled for February 2021. It will consist of three lines processing 90 tonnes of raw materials per day.
The total capacity of the plant will allow producing 100 tonnes of ready products per day. Investments in two phases are estimated at $20 million.
FeedNova is a modern enterprise that produces feed additives for farm animals and pets.
FeedNova provides services on the collection, transport, preparation and processing of material of animal by-products, which can no longer be used as food for humans.
Effective Investments Group of Companies was founded in 2007. It manages business projects in Ukraine.
Ukrainian businessman Ihor Kolomoisky has proposed to increase the iron ore production royalty from 8.8% to 75%. “… If you export raw materials [from the country], then give back at least 75% from $80 per tonne – this is $60, and keep $20,” Kolomoisky said in an interview with the Censor.net ezine.
According to the businessman, these current royalty rates stimulate the export of raw materials.
“However, there is a second option – don’t sell ore right away!.. Produce steel – you have capacities, and instead of loading enterprises you reduce capacities, because now it is easier for you to sell ore, and not engage in production,” Kolomoisky said.
In addition, he stated the need for nationalization of the largest enterprises and the development of mineral resources.
“For the salvation of Ukraine, the universal nationalization of large state-forming enterprises plus the nationalization of the deposit development, that is, in several sectors, we need state capitalism,” the businessman said.
The Elektrostal steel smelting enterprise (Kurakhove, Donetsk region) in January-July 2019 saw 65.5% decrease in production of continuous cast steel billets, to 62,000 tonnes compared to the same period of 2018.
As the representative of the enterprise told Interfax-Ukraine, the enterprise stood idle from January to the middle of March, and partially resumed its operation from the middle of March 2019. Now the enterprise is working to one third of its capacities.
It produced 10,000 tonnes of billets in July, 14,000 tonnes in June, 10,000 in May, 17,000 in April and 11,000 in March 2019.
Previously the reason for this situation is the rise in prices for scrap ferrous metal, which makes production unprofitable.
Elektrostal in 2018 reduced the production of continuous cast steel billets by 34.2% compared with 2017, to 289,000 tonnes.
Donetsk Metal Rolling Plant (DMPZ) since 2000 began to experience a shortage of purchased steel billets for its own rolling production, as a result of which it was decided to build a steelmaking enterprise – Elektrostal.
DMPZ specializes in the production and sale of metal products – long products, cast iron pipes, structural elements of ferrous metals, nuts and shovels.
Production of vehicles in Ukraine through January-July 2019 decreased by 12.6% compared with the same period of 2018, to 3,562 vehicles, assembly of Skoda passenger cars by Eurocar Plant saw 12.4% slowdown, to 3,066 cars.
According to statistics of Ukrautoprom association posted on its website, thus decline rate of vehicle production slightly slowed down compared to the similar period of 2018 and was 23.5%.
The production of commercial vehicles was 2.5 times less: only 46 vehicles were manufactured for the seven month (excluding AvtoKrAZ, which has stopped disclosing production information since August 2016), including 39 by Cherkasy Bus (29 in 2018), and seven by Zaporizhia Automobile Plant (ZAZ, 85 vehicles)
The production of buses saw light negative trend by 2.4%: 450 buses were produced, against 461 a year earlier. The Cherkasy Bus with 220 buses for the mentioned period remained the leader of their production, the Chernihiv Automobile Plant increased production by five buses and produced 99 units, the ZAZ produced 40 buses against 24 a year ago, Bogdan Corporation manufactured 44 buses against 4 items a year ago, and the Chasiv Yar Bus Plant saw 47% fall in bus production, to 47 units.
The association reported that in July the national enterprises assembled 613 vehicles that 2.8 times more that in July 2018 and 10% more that in June 2019.
This growth pace is linked to the increase of assembly of Skoda passenger cars by Eurocar Plant up to 534 units against 150 in July 2018.
The producers of commercial cars increased output up to 25 units in July (five units in 2018), while bus production shrank from 66 to 54 units. The biggest number of buses was produced by the Cherkasy Bus.
As reported, in 2018, the Ukrainian automakers produced only 6,616 vehicles. This was 23% less than a year earlier, and production capacity was loaded less than 1.5%.
