Business news from Ukraine

Business news from Ukraine

SUGAR PRODUCTION IN UKRAINE AS OF DECEMBER 4 AMOUNTES TO 1.5 MLN TONNES

Sugar production in Ukraine as of December 4 amounted to 1.517 million tonnes. According to the Ukrtsukor National Association of Sugar Producers, at present sugar refineries in the country have processed 11.25 million tonnes of sugar beets. As reported, Ukraine started a new sugar making season on August 31.
In 2018, the area under sugar beets was 280,000 hectares, which is 13% less than in 2017.
Ukraine exported 560,400 tonnes of sugar in the 2017/2018 agricultural year (September-August), which is 27.2% less than in the previous agri-year. Sugar production in the 2017/2018 agri-year increased by 6.5% and amounted to 2.14 million tonnes. Some 46 sugar factories were operating during the season.

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UKRAINE REDUCES CRUDE STEEL PRODUCTION

Ukraine reduced crude steel production 1% year-on-year in January-November 2018 to 19.3 million tonnes, according to preliminary data.
The Ukrmetallurgprom (Dnipro) association told Interfax that roll output grew 1% to 16.835 million tonnes, and pig iron production rose 3% to 18.78 million tonnes.
Crude steel production was 1.744 million tonnes in November alone, down 2.5% from October, roll production was 1.473 million tonnes, down 3.6%, and pig iron 1.695 million tonnes, down 5%.

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MAIN PIPE ENTERPRISES OF UKRAINE INCREASE FERROUS METALS PIPE PRODUCTION

The main pipe enterprises of Ukraine in January-October 2018 increased production of pipes from ferrous metals by 7.62% compared to the same period in 2017, to 941,600 tonnes, including 97,500 tonnes in September. The Ukrtruboprom association told Interfax-Ukraine the enterprises of the association in January-October 2018 raised production of pipes by 16.7%, to 677,800 tonnes, in October to 68,300 tonnes.
Khartsyzsk Pipe Plant (Donetsk region), located in the government uncontrolled zone, remained idle in January-October 2018, while in January-October 2017 it made 3,400 tonnes of pipes. Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 13.6% compared to January-October 2017, to 240,900 tonnes (22,100 tonnes in September), Interpipe Novomoskovsk Pipe Plant increased output by 17.9%, to 95,300 tonnes (10,200 tonnes), while Interpipe Niko Tube raised production by 25.2%, to 309,400 tonnes (32,800 tonnes). Dnipropetrovsk Pipe decreased pipe production by 13.5%, to 13,400 tonnes, making 1,100 tonnes in October. Production at Centravis grew by 7.2%, being 16,400 tonnes of stainless pipes (1,900 tonnes).

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UKRAINE TO BOOST GRAIN, OILSEEDS PRODUCTION TO 100 MLN TONNES BY 2022 – EXPERT

Ukraine in 2022 would increase grain and oilseeds production from 90 million tonnes in 2018 to 100 million tonnes, President of the Ukrainian Grain Association (UGA) Mykola Horbachev has said. “We expect that by 2022 Ukraine will increase the production of grain and oilseeds to 100 million tonnes, exports will be up to 70 million tonnes. By this time, the port capacity will be enough to unload these volumes,” he said in an interview with Interfax-Ukraine.
“This year we already have more than 90 million tonnes. This season we expect a record grain yield thanks to corn. We had 6 tonnes per hectare in good years before, and this year we already have 7.8 tonnes from 1 ha. We are approaching normal rates. For example, in the United States, the average corn yield is 11 tonnes per ha,” Horbachev said.
At the same time, according to him, next year we can expect a slight decline in cereal production, since the record corn harvest may not repeat.
“We predict a total grain and oilseed harvest of 92 million tonnes. If next year the corn harvest is usual, this figure will decrease by almost 9 million tonnes. But this is more associated with corn. We expect the same (that is, usual) harvest for major crops, since the acreage has not changed,” the president of the UGA said.
According to him, the export of grain without processing products for the current year is planned at the level of 52-52.5 million tonnes. However, companies may have difficulties with timely delivery of grain to ports due to difficulties with Ukrzaliznytsia.
“We can work at the level of 5 million tonnes of exports per month. But it must somehow be predicted: about 6 million tonnes of corn were sold in October-November, but it is not a fact that it will have time to get to the port. Thus, some companies had a situation when they could not ensure the availability of cargo in the port. They purchased grain in Argentina or Brazil and supplied it from those countries, not from Ukraine,” Horbachev said.

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KYIVSKY CARDBOARD MILL SEES 17% RISE IN PRODUCTION

Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, produced goods worth UAH 4.626 billion in January-October 2018, which was 17.7% up year-over-year.
Thus, production growth in the ten months ending October 2018 somewhat increased compared to the same period last year, when the growth was 16.5%, the UkrPapir association said.
Corrugated packaging output grew by 9.2%, to 198.5 million square meters, which was the second highest result among producers of corrugated packaging in Ukraine after Rubizhne cardboard packaging mill in Luhansk region (with Trypilsky packaging plant).
Production of cardboard increased 4.5%, to 173,650 tonnes. Production of package cardboard alone grew by 13.4%, to 117,110 tonnes, while box cardboard output fell by 10.2%, to 56,540 tonnes.
Production of base paper (for sanitary products) stood at 66,350 tonnes, which is 6% up. Toilet paper output grew by 5.6%, to 355.4 million rolls.
Corrugated packaging output in total in Ukraine (including other producers) grew by 0.6% January through October 2018, to 840.7 million square meters, that of paper and cardboard increased by 5%, to 798,500 tonnes and toilet paper – by 0.7%, to 562.85 million rolls.
Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world.

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DTEK NAFTOGAZ PLANS TO INCREASE GAS PRODUCTION IN 2019

DTEK Naftogaz LLC intends to increase natural gas production in 2019 by 10-12% (by 170-200 million cubic meters) compared to the expected production in 2018, to 1.8 billion cubic meters, manager on regulatory issues in the company Yulia Borzhemska has said during the XVI International Forum “Fuel and Energy Complex of Ukraine: Present and Future” in Kyiv.
According to the agency’s calculations, taking into account DTEK gas production in January-September 2018 in the amount of 1.242 billion cubic meters, the expected production in the current year will be 1.66 billion cubic meters.
“Next year, thanks to innovations, we will have a growth of 10-12%,” she said.
As reported, DTEK Naftogaz plans to achieve production of 2 billion cubic meters of natural gas until 2023.
DTEK Naftogaz is an operating company responsible for the oil and gas sector within DTEK energy holding. The assets portfolio of DTEK Naftogaz includes Naftogazvydobuvannia and Naftogazrozrobka, which carry out hydrocarbon exploration and production on three license areas in Poltava and Kharkiv regions.

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