A modern tractor plant may be built in Ukraine, Minister of Agrarian Policy and Food Vitaliy Koval said following a meeting with representatives of the Korean company LS Group and Dmytro Pryputnyi, co-chairman of the Verkhovna Rada’s group on interparliamentary relations with the Republic of Korea.
“The construction of the tractor plant is not only a possible investment, but also a strategic step for the development of the Ukrainian agricultural sector. After all, since the beginning of Russia’s full-scale invasion of Ukraine, we have lost more than 8,000 units of machinery and equipment, of which more than a thousand units are tractors,” he wrote in a telegram on Thursday.
Koval noted that the Ministry of Agrarian Policy and Food is constantly working to update and modernize the material and technical base of the agricultural sector.
“We are interested in LS Group’s many years of experience and advanced technologies in the production of agricultural machinery, which they are ready to integrate into production in Ukraine. Korean investors are looking for potential partners to implement the project. Therefore, the Ministry of Agrarian Policy helps to establish such cooperation in the format of a joint Ukrainian-Korean enterprise,” the Minister emphasized.
According to him, the possibility of implementing bioenergy projects in Ukraine, in particular bioethanol production, as well as the prospect of creating a technology center to produce engines for agricultural machinery and other equipment, were also discussed with LS Group management.
The construction of the tractor plant is expected to strengthen the industrial base, create new jobs, and strengthen Ukraine’s position as a producer of high-quality agricultural machinery. This will allow Ukraine to increase its own production of agricultural machinery, which is one of the priorities of the Strategy for the Development of Agriculture and Rural Areas in Ukraine until 2030, the statement said.
LS Group is one of the leaders in the South Korean industry. Its model range includes tractors with a capacity of 30 to 150 horsepower.
According to preliminary data, JSC Kharkiv Tractor Plant, belonged to DCH Group of businessman Oleksandr Yaroslavsky, completed 2019 with a net profit of UAH 71.8 million, whereas the loss was UAH 81.4 million in 2018.
According to information on the agenda of the shareholders’ general meeting on April 23, the uncovered loss amounted to UAH 582.76 million by the beginning of 2019 (UAH 654.06 million in 2018).
The draft decision of the meeting provides for directing the net profit received in 2019 to replenish working assets, not to pay dividends.
According to the plant, in 2019, its current liabilities decreased 6.8%, to UAH 1.374 billion, long-term ones increased 45%, to UAH 266 million.
The total receivables as of January 1, 2020 amounted to UAH 155.4 million (UAH 96.71 million in 2019), total assets were UAH 1.280 billion (1.262 billion).
The plant’s equity capital has a negative value of UAH 362.75 million, charter capital was UAH 4.35 million by the beginning of 2020.
According to the plant’s website, it produced 585 units of equipment in 2019 (12% more than in 2018) and sold 638 units (16% more). The plant’s revenue increased by 22%, to almost UAH 800 million.
To date, the plant has about 1,100 employees; the average salary is UAH 10,000 (UAH 7,800 by the beginning of 2019).
Kharkiv Tractor Plant, founded in 1930, currently produces dozens of models of tractors and special-purpose equipment designed for work in agriculture, public utilities and construction areas. The main product range is represented by small tractors with a capacity of 35 hp, as well as large wheeled and tracked tractors with a capacity of 150-280 hp.
