Business news from Ukraine

“Nibulon” buys Scania tractors and STAS semi-trailers

One of the largest grain market operators in Ukraine, Nibulon JV LLC (Mykolaiv), has purchased 76 Scania R450 Euro 5 tractors and 64 semi-trailers from the Belgian manufacturer STAS as part of its strategy to develop its logistics business, the grain trader’s press service reported on Facebook.

According to Nibulon, the first batch of purchases amounts to 30 sets, of which five have already entered Ukrainian roads.

The company explained that due to the reorientation of logistics chains in the war, Nibulon is forced to use combined routes, including the transportation of grain by truck. The company uses such routes in its southern branches, in particular, in Voznesenskiy and Novoodesskiy river terminals, as well as from the terminal in Mykolaiv, which currently serves as a dry port, to Bessarabskiy.

To minimize the load on the roads and environmental impact, agricultural products from all water elevators located along the Dnipro River and blocked due to the explosion of the Kakhovka hydroelectric power station are transported by road to the elevators for rail shipment.

To reduce the weight of the road train and increase the payload, 30 of the 64 semi-trailers are all aluminum, including the frame. All tractors are equipped with 13-liter economical engines with an output of 450 hp and a torque of 2350 Nm and a Scania Opticruise automatic transmission.

In addition, for safe driving, an AEB emergency braking system, headlights and LED fog lights are installed. 7 units of equipment are used in the ADR FL configuration, which will be used for fuel transportation.

“Thanks to a diversified transport system that includes road, rail and water transport, Nibulon has managed to build new supply chains, reduce the cost of our logistics and thus increase the purchase prices for farmers,” says Sergiy Kalkutin, Logistics Director.

According to him, in 2024, the logistics department plans to completely renew the truck fleet of the freight transport service. In particular, trucks from Scania Ukraine will be an effective enhancement of the business, Nibulon believes.

At the conclusion of the agreement, Håkan Jyde, CEO of Scania Ukraine, noted that the company is proud to partner with Nibulon.

“We are pleased to be involved in the realization of an important goal – to ensure food exports in the interests of the Ukrainian economy and global food security,” said Håkan Jyde. – “We facilitate the work of the exporter and provide financial instruments to reduce the burden on business. Thus, the entire contract was financed on lease by Scania Credit Ukraine and insured with hull insurance. All trucks are also connected to the Scania FMS fleet monitoring system. “We are currently offering Nibulon the wide range of services and driver training offered by Scania Ukraine, as it is in our common interest to improve the performance of our vehicles,” said the head of Scania Ukraine.

“Nibulon expressed gratitude to Scania Ukraine and Scania Credit Ukraine for their long-term cooperation and support in the implementation of the truck fleet renewal project.

Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a capacity for simultaneous storage of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.

“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.

In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.

Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.

Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.

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Truck market grew by 70% in 9 months – AUTO-Consulting

The truck market in Ukraine in January-September of this year increased by 70% compared to the same period in 2022 – up to 3.5 thousand units, in particular, in September the increase was 72%, according to the information and analytical group AUTO-Consulting.

“The positive news for the truck market in September is the strong demand for most segments of vehicles. Trucks were actively bought, ordered and received. Therefore, the result of 72% was quite natural. In addition, the business continues to rebuild its logistics and expand its own fleet,” the company said in a statement on its website on Tuesday.

At the same time, it is stated that growth is recorded by almost all operators, “but it is already becoming clear that a new leader of the Ukrainian truck market has taken the place of MAZ and KAMAZ.”

AUTO-Consulting notes that Swedish Scania has been leading in sales for four months in a row with a strong lead over its competitors.

“In September, Scania took 23.4% of the Ukrainian market, and 38% in the segment over 16 tons. In fact, we can say that it was Scania that took the market share of MAZ and KAMAZ, which are deprived of access to the Ukrainian market,” the report says.

Experts also note an almost threefold increase in sales compared to last year for MAN and Iveco, as well as active sales of DAF and Ford Tucks.

“Peugeot, Renault and Ford have begun to develop new segments, increasingly offering their vehicles instead of GAZ and Chinese manufacturers. Tractors and dump trucks are the top sellers, but many interesting projects are being implemented in the utilities and energy sectors. And here is a great merit of Ukrainian manufacturers of superstructures, who are actively experimenting with new chassis,” the experts say.

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SWEDISH SCANIA OPENED NEW SERVICE STATION IN UKRAINE

Scania Ukraine opened a new Scania Brovary service station with a total area of 1,110 sq.m. near the Brovarskaya ring road at the intersection of the M95 and H07 highways, the distribution company’s press service reported.

“By the decision to open a new service station in the Kiev region, we want to confirm our commitment to the Ukrainian market. We are aware of all the risks for our investments, but we want to be closer to our customers, whose activities are important for the Ukrainian society, especially in the current conditions,” the press quotes – the service of the General Director of Scania Ukraine LLC Hokan Jyde in a message on the website on Thursday.

The station includes service boxes, warehouse and office premises. At the same time, 8 trucks can be serviced in it, there is also a large spare parts warehouse.

As reported, the new station became the 12th in the company’s service network.

Oleksandr Titskiy, Director of Dealer Network and Dealer Development in Ukraine, noted that taking into account the location of the station (where the main routes run from north to west and south), the company sees a huge need for the provision of services for the repair and maintenance of trucks not only in this part of the region, therefore, in the future, the center can be significantly expanded, and will provide a greater range of services for carriers.

The opening of the station was attended by Swedish Ambassador to Ukraine Tobias Tyberg, who noted that Sweden supports Ukraine with defense equipment, humanitarian aid, provides financial support, and continues to work with Ukraine on reforms in local self-government, energy independence, and environmental protection.

“Today ScaniaGroup is opening a new facility near Kyiv. Scania trucks will help Ukraine restore what Russia is destroying. Nothing can break the resilience of Ukrainians,” the ambassador tweeted.

The distribution company with foreign investments “Scania Ukraine” has been operating on the Ukrainian market since 1998 (before that, there was a representative office in 1993). In 2020, the company’s revenue decreased by 6% compared to 2019 – to UAH 1 billion 651 million, net profit decreased by 22.7% – to UAH 42.4 million.

According to Scania Ukraine (mid-last year), since 1997, it has paid EUR97.8 million in taxes to the Ukrainian treasury and has invested more than EUR38.8 million in the opening of service stations, new jobs, equipment and employee training.

In 2020, the company occupied 27.4% of the Ukrainian market for trucks manufactured in Europe. Its income amounted to UAH 1.65 billion, net profit UAH 42.4 million.

As reported, at present, out of 12 Scania service centers (including the new one), 10 are working, only the stations in Kharkov and Kramatorsk are closed.

A few days ago, the company reopened its distribution site in Bucha.