Despite the significant demand for windows to replace those damaged as a result of the armed aggression of the Russian Federation in Ukraine, their production volume fell three times compared to 2021, Oleksiy Bubnov, executive director of the Association of Window and Facade Market Participants (AUROF), told Interfax-Ukraine .
“According to our data, 150-160 thousand structures were produced in May, 170-180 thousand in June, 220-250 thousand in July. There is a positive trend, but compared to 2021, the volume of window production fell three times,” he said.
At the same time, the expert added that these data do not include the number of double-glazed windows that were produced to replace damaged windows, where the frames themselves survived.
“The industry will be able to operate at full capacity if there is glass and raw materials for the production of profiles. For other components of the window (accessories, components for double-glazed windows), everything is available and in sufficient quantity. And, of course, it will be necessary to select workers, because today all companies work in one shift,” Bubnov said.
Considering the acuteness of the issue of restoring the housing stock in the country, he proposes to consider the issue of granting a deferment from conscription to the Armed Forces of Ukraine for specialists in specialties that are critical for the window industry.
The expert named a number of other problems that need to be solved in order to launch the market at full capacity.
He, in particular, recalled that the only producer of PVC raw materials for the production of profiles, Karpatneftekhim (Kalush), has not been operating since the beginning of the war.
As reported, the Prosecutor General’s Office recently transferred the arrested corporate rights of Karpatneftekhim to the management of ARMA, but there is no information about the timing of the resumption of its work.
“The situation is absurd: national profile producers have to buy raw materials abroad and pay a protective duty of 12% on PVC raw materials, adopted in support of Karpatneftekhim. We propose to cancel it at this stage, at least until it is restored in full production,” says Bubnov.
About 80% of glass before the war was supplied from Russia and Belarus. “Since the beginning of the war, the window industry has refused any trade relations with the aggressor country and its accomplice. There remains the opportunity to buy glass in European countries, in Turkey and Azerbaijan,” he explained.
At the same time, Bubnov said, logistically, such deliveries are possible only by land, by special vehicles, the so-called “jumbos” (for transporting large-format glass), which go empty for loading, but are forced to stand in queues at customs.
The Executive Director of AUROF proposes to provide a simplified procedure – the “green corridor” – for vehicles following the glass on exit from Ukraine and at the entrance to the country.
The risk factor, the expert said, which could slow down the glazing of war-damaged buildings, is the alleged 10% tax on the purchase of foreign currency.
“Today, the cost of windows has increased by 70-80% compared to the pre-war period. Since glass is not produced in Ukraine, the introduction of this tax will automatically lead to an increase in the cost of double-glazed windows and windows. We believe that if a 10% tax on the purchase of foreign currency is introduced, it will should be canceled for contracts under which the currency will be used to purchase glass,” Bubnov believes.
Established in 2013, AUROF unites 29 market participants.
The Interdepartmental Commission on International Trade (ICMT) decided to introduce final anti-dumping duties on imports to Ukraine of swing-out mechanisms for window and balcony door units originating from Turkey for a period of five years in the amount of 30.78% for two manufacturers and 35.1% – for everyone else.
The ICMT made a corresponding decision at a meeting on April 23, the duties will come into force 30 days after the publication of the decision, the Uriadovy Kurier nrewspaper said on Thursday.
The Commission initiated an investigation into window and door fittings from Turkey in February last year at the initiative of Axor Industry LLC, a reduced duty of 30.8% will be applied to Ileri Pencere Kapi Sistemleri Sanayi and Ileri Pencere Kapi Sistemleri Sanayi.
According to the document, the deliveries of products were studied in 2017-2019, and they were investigated for 2019. During the study, the applicant’s sales volumes in the domestic market decreased by 12.9%, and their profitability – by 47.1%.
“There is a likelihood of a significant increase in dumping imports of goods originating from the Republic of Turkey, which threatens to cause significant harm to the national producer. Dumping imports of goods to Ukraine (…) were carried out at prices that were lower than the sale prices and the cost of such goods of the national producer in the domestic market of Ukraine,” the publication says.
More precise name of the taxable product sounds like “fasteners, fittings and similar products (except for window and/or balcony door handles with a key and/or without a key), of base metals for use in windows and/or balcony door blocks with a pivot and a swing-out mortar, classified according to UKTZED code 8302 41 50 10 made in the Republic of Turkey.”
According to the State Statistics Service, imports of fittings under the broader code 8302 41 50 from Turkey in January-March 2021 amounted to 0.760 tonnes for $2.01 million, while there was no export to this country. In general, during the specified period, Ukraine imported such goods for $5.89 million, exported – for $3.91 million.
