Business news from Ukraine

Business news from Ukraine

KMZ Industries to manufacture grain storage silos in Chernihiv region

Elevator equipment manufacturer KMZ Industries (Karlivsky Machine Building Plant, Poltava region) has signed an agreement to manufacture silos and transport equipment for an agricultural enterprise in Chernihiv region, the company’s press service reported on Facebook.

According to the report, the customer, which specializes in corn cultivation and dairy farming, plans to increase its grain storage capacity for more flexible inventory management.

Under the agreement, KMZ Industries will manufacture three flat-bottom silos with a total capacity of 21,950 cubic meters, an operational silo for truck loading with a volume of 90 cubic meters, and transport equipment (bucket elevators and chain conveyors) with a capacity of 50 and 100 tons/hour.

To implement the project, the farm plans to take advantage of a state program that provides 25% compensation for the cost of domestically produced agricultural machinery and equipment.

Vladislav Perehodko, head of the regional representative office of KMZ Industries, noted that this case illustrates the trend of agricultural producers investing in the expansion of existing elevator sites with a focus on energy efficiency.

KMZ Industries is the largest manufacturer of elevator equipment in Ukraine and produces a full range of products, including silos, grain dryers, transport equipment, and separators, as well as providing automation and installation services.

According to the company, it has built more than 5,000 facilities. KMZ Industries silos with a total volume of more than 12.5 million cubic meters are in operation.

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KMZ Industries won tender to manufacture 16 silos for feed mill in Kharkiv region

KMZ Industries (Karlivsky Machine-Building Plant, KMZ, Poltava region) has won a tender for the manufacture of hoppers for a new feed mill being built in the Kharkiv region in 2026, the company’s press service reported on Facebook.

According to the report, KMZ Industries will manufacture 16 metal silos with a total capacity of 1,084 cubic meters to expand the customer’s production capacity as part of the project. The hoppers will be used to store raw materials and semi-finished products for feed production.

“Investments in compound feed production demonstrate the desire of agricultural companies to increase added value, build more closed production cycles, and develop domestic processing. It is precisely such projects that form the long-term basis for the growth of the industry and determine the vector of development of the Ukrainian agro-industrial complex,” the company noted.

For KMZ Industries, this project is its first experience of cooperation with the customer and, at the same time, a continuation of its work in the agricultural processing segment, where the company already has practical experience in implementing similar solutions.

KMZ Industries is the largest manufacturer of elevator equipment in Ukraine and produces a full range of products, including silos, grain dryers, transport equipment, and separators, as well as providing automation and installation services.

According to the company, it has built more than 5,000 facilities. KMZ Industries silos with a total volume of more than 12.5 million cubic meters are in operation.

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LARGEST SUGAR PRODUCER IN UKRAINE TO INVEST $15 MLN IN NEW SILO CONSTRUCTION

Agroholding Astarta, the largest sugar producer in Ukraine, is investing $15 million in the construction of a new silo in the city of Chernihiv. The decision of the board of directors of the group of companies was published on the Warsaw Stock Exchange (WSE) on Wednesday evening.
According to Astarta, the construction of this facility will will further strengthen the company’s network of seven grain and oilseeds handling facilities and expand its reach to Chernihiv region.
The total capacity of simultaneous storage of grain and oilseeds will be 70,000 tonnes. Commissioning of the first stage of the silo with a capacity of 58,000 tonnes is scheduled for July 2022.
Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine.

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SILO CAPACITIES IN UKRAINE ALLOW STORING 60-65% OF GRAIN

The grain storage facilities in Ukraine allow storing around 60-65% of harvest, Deputy Minister of Economic Development, Trade and Agriculture Taras Vysotsky has said.
“The implementation of the agrarian potential of Ukraine needs to modernize the existing logistic infrastructure and further development. Today, grain storage facilities allow storing some 60-65% of the harvested crop. The total one-time grain, leguminous and oilseeds storage capacity is 45.4 million tonnes,” he wrote on his Facebook page on Friday.
According to the deputy minister, the shortage of storage facilities is observed in all regions. According to the ministry, under the government program to support agricultural producers in 2019, 55 producers from 16 regions received government support in the direction of partial reimbursement of the cost of building and reconstructing grain storage and processing enterprises, the total amount of compensation exceeded UAH 526 million.
“Thanks to the support, an additional 61 facilities with a throughput capacity of about 1 million tonnes were obtained and more than 500 jobs were created,” Vysotsky said.

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JAPANESE COMPANY LAUNCHES SILO IN KYIV REGION, INVESTMENTS TOTALES UAH 60 MLN

Kivshovavta Agro LLC (Kyiv region) belonged to Japan’s Kivshovavta is launching a silo with a storage capacity of 16,000 tonnes in the village of Kivshovata, Kyiv region, the company’s press service has reported. The press service said that with the launch of the silo the storage facilities of the company will be around 30,000 tonnes. Investment in the first and second stages of the silo totaled some UAH 60 million, and over UAH 100 million were sent to buy grain from other producers.
“The first stage of the silo was completed before 2017. In the past year it was reconstructed and expanded,” the company said.
Kivshovavta Agro seeks to boost land bank four times in coming five years, to 10,000 ha and build one more silo. Kivshovavta Agro LLC was founded in 2009. Its owner – SDGs Corporation – bought the company in Q4 2016. Kivshovavta Agro is the only enterprise of SDGs Corporation in Ukraine. The company plants wheat, sunflower, corn, soybeans. Its land bank is 2,500 ha.

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CYPRUS-REGISTERED DNIPRO AGRO ALLIANCE PLANS TO BUY SILO FROM SWISS GLENCORE

Dnipro Agro Alliance Ltd. (Nicosia, Cyprus) plans to acquire PJSC Bozhedarivsky Elevator belonged to Renaisco B.V., a subsidiary of Switzerland’s Glencore International. According to the materials of the Antimonopoly Committee of Ukraine, Dnipro Agro Alliance Ltd. applied to the committee for getting permit to buy over 50% in Bozhedarivsky Elevator.
Dnipro Agro Alliance Ltd. Plants grain, leguminous crops and oilseeds. The ultimate beneficiaries of the company are co-owners of Dnipro Agro Group Mykhailo Koshliak, Yevhen and Vasyl Astion. Dnipro Agro Group is a vertically integrated group of companies, the core business of which is the production, storage, sale of grain and oilseeds.

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