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.
The Victory Harvest Charitable Foundation will receive 10 combine harvesters and five John Deere brand tractors from the foundation of American philanthropist Howard G. Buffett, which will be transferred exclusively for use by Kherson farmers for harvesting and during the next sowing season, the Foundation’s press service has reported.
“Russia’s war against Ukraine has become especially devastating for the people of Kherson region. The flooding of lands caused by the destruction of the Kakhovka dam has now been added to the constant shelling. Our foundation aims to extend support to farmers with these special harvesters and is also working to accelerate demining in the region,” the press service quoted the words of Buffett at a meeting with the head of the Kherson Regional Military Administration during a visit to Kherson region.
The donated John Deere equipment includes five S770 combines, five S760 combines and five 8430 tractors and has an estimated commercial value of more than $5 million.
The Howard G.Buffett Foundation also donated two DOK-ING minesweepers, along with metal detectors, vehicles and other demining equipment, to the State Emergency Service of Ukraine. Thanks to this equipment, more than 20 hectares of land in Kherson region have already been cleared and more than 72 explosive items objects have been removed.
This donation to the Foundation is the addition to agricultural equipment previously donated to the Victory Harvest Foundation with a total value of more than $27 million.
AIS group of companies plans to start producing tractors under the KrASZ brand from the components of the leading Asian companies at the Avto-Holding plant (Kremenchuk, Poltava region), AIS has said in a press release.
At the first stage, it is planned to establish the production of agricultural machinery with a capacity of up to 30 hp, which is most in demand among small and medium-sized farms.
“The segment of this equipment has a rather large capacity, according to our estimates, it is more than 17,000 tractors per year, and it is developing steadily. We expect in the medium term to occupy from 5% to 10% in it,” the press service said citing AIS Marketing Director Serhiy Borovik.
The group has not yet disclosed the remaining details of the project, noting that detailed information about the model range planned for production, prices and the start of accepting orders will be announced in August-September of this year.
AIS group of companies, established in 1992, is the national network of auto centers and service stations, spares stores, a manufacturing enterprise, regional automobile warehouses and a logistics center for storage and distribution of spare parts, a customs and licensed warehouse, and a motor transport company.
Imports of tractors to Ukraine last year increased almost fivefold compared to 2017, to 113,200 units, of which 2,200 are used machinery, the Ukrainian Agribusiness Club (UAC) has said.
According to the association, in monetary terms, tractors were imported for $431 million, which is 12.6% less than in 2017.
“In quantitative terms, the total import of tractors grew in 2015-2016 and in 2018, while in 2017 there was a significant subsidence. Most of this equipment was imported last year,” the association noted.
According to the UAC, if in quantitative terms imports of tractors were growing from year to year, then in value terms it reached its peak value in 2017, and in 2018 the figure was falling.
“With regard to used tractors, in general, in the four years under consideration, their share in the total number of imported machinery was about 4%. This is significantly less compared to harvesters, where this segment occupied half of all deliveries from abroad,” the association noted.
Zaporizhia Automobile Plant (ZAZ), part of the UkrAVTO Corporation, has started producing a pilot batch of LS Mtron tractors to study the process of production and demand, Spokesman of the Corporation Dmytro Skliarenko has said. “The creation of a joint venture with the manufacturer is not being discussed yet,” he told Interfax-Ukraine.
The corporation does not disclose other details of the project. As reported, in autumn 2017, the UkrAVTO Corporation, the leading player on the Ukrainian automobile market, was studying consumer demand on tractors of South Korea’s LS, which has not yet been presented in Ukraine. UkrAVTO presented these tractors at the AGROEXPO 2017 exhibition held in Kropyvnytsky.
The company said that this step looks completely logical and justified, since the agricultural sector begins to show upward pace and has a great potential and prospects for larger development.
Later the distribution agreement with LS company was signed. LS is the exclusive supplier of tractors under the governmental agriculture development program in South Korea.
According to experts, according to their characteristics, LS are direct competitors of the most popular MTZ Belarus tractors in Ukraine.
UkrAVTO intends to stake in Ukraine on two models of LS tractors: V-series with a capacity of 70-80 hp and H-series with a capacity of 110-140 hp. The LS tractors’ price starts from $38,000, and the price of the most powerful is $70,000.
At the same time, ZAZ, at present, amid the crisis in the automotive industry in Ukraine, has stopped the production of passenger cars.
UkrAVTO was registered in 1992. It holds a controlling stake in CJSC ZAZ and Poland’s FSO. The corporation includes over 400 car servicing enterprises in all Ukrainian cities, distribution and dealer companies of the leading car brands and the filling station network.
