Business news from Ukraine

ASTARTA EXPORTS 50,000 TONNES OF CORN TO CHINA, TO SUPPLY 65,000 TONNES MORE BY LATE 2015/16 AGRI-YEAR

KYIV. March 18 (Interfax-Ukraine) – Astarta agro-industrial holding has shipped a batch of corn of around 50,000 tonnes to China, the holding reported on Wednesday.

Astarta would sell 65,000 tonnes of corn more by the end of the current 2015/16 agricultural year to China.

Soy oil made at Globyno processing plant is of great demand in China.

Since early 2015/16 agri-year almost all soy oil was exported to China.

Astarta is a vertically integrated agro-industrial holding, uniting six regional divisions in Poltava, Vinnytsia, Khmelnytsky, Ternopil, Zhytomyr, and Kharkiv regions. They include nine sugar factories, agricultural farms with a land bank of about 245,000 hectares and dairy farms. Last year, the holding commissioned a plant for processing soybeans in Poltava region (Globyno processing plant).

ARTEMOVSK WINERY SEES UAH 7.66 MLN IN NET PROFIT IN 2015

KYIV. March 18 (Interfax-Ukraine) – Private joint-stock company Artemovsk Winery (Donetsk region), a large producer of sparkling wine in Ukraine, saw UAH 7.66 million in net profit in 2015 compared to UAH 6.65 million in net loss in 2014.

The company reported that its assets decreased by 0.4%, to UAH 647.1 million.

Current liabilities decreased from UAH 388.5 million to UAH 378.4 million.

Total bills receivable reached UAH 195.8 million, a 1.8-fold rise year-over-year.

Artemovsk Winery is one of Eastern Europe’s largest producers of sparkling wine in a traditional bottle method. The brands of the company include Krim, Artemovskoye, Krimart, Charte Komilfo, Charte and Soloking. Produce is exported to more than 20 countries.

SPF MULLING SALE OF SIX REGIONAL ENERGY COMPANIES IN THREE GROUPS

KYIV. March 18 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) could start the privatization of the remaining state owned controlling stakes in six regional energy supply companies with the sale of the most prepared and those having an attractive business profile, namely Ternopiloblenergo and Khmelnytskyoblenergo, SPF Head Ihor Bilous has said.

“There is an idea to split the six power companies into three groups according to their degree of readiness and problematicity,” he told reporters.

The fund head said that the second stage could include tenders for the sale of Kharkivoblenergo and Mykolaivoblenergo, the third one – Cherkasyoblenergo and Zaporizhiaoblenergo.

Bilous noted that in Ternopil and Khmelnytsky regions the structure of customers of energy supply companies the significant share is occupied by more attractive clients in the current conditions – households, small and medium businesses. According to him, the energy supply companies are relatively small and are not so expensive, which also creates conditions for the formation of competition at the tenders and their successful sale.

He added that international consultants, to improve the efficiency of tenders, offered holding them in early autumn, while the summer season is characterized by a low investment activity.

ODESA PORT-SIDE PLANT REPORTS UAH 211 MLN IN NET PROFIT IN 2015

KYIV. March 18 (Interfax-Ukraine) – Public joint-stock company Odesa Port-Side Plant has reported UAH 210.88 million in net profit in 2015 compared to UAH 270.473 million in net loss a year ago.

The company said that its total assets decreased by 62% in 2015, to UAH 3.352 billion, while fixed assets increased by 3.7%, to UAH 1.114 billion.

Total bills receivable last year decreased by 55%, to UAH 924.93 million. Current liabilities totaled UAH 1.058 billion, a decline of 82.1% year-over-year. The plant did not have long-term liabilities.

The number of employees expanded from 3,938 to 3,948 people.

State-owned Odesa Port-Side Plant produces chemical products and transships ammonia to vessels.

INTERCHEM PRESENTS COMPANY AT BIGGEST PHARMACEUTICAL EXHIBITION IN EASTERN AFRICA

KYIV. March 18 (Interfax-Ukraine) – Interchem double liability company (Odesa) took part in the largest pharmaceutical exhibition in Eastern Africa in Kenya, Interchem Head Anatoliy Reder has said in an interview with Interfax-Ukraine.

“I’ve managed to have a fruitful talk with top managers of Kenya’s registration service. These are skilled specialists interested in Ukraine manufacturers’ entrance to the local pharmaceutical market. Considering Ukraine as a part of Europe they hope that the product that we will be able to supply will be of high quality. It will meet European requirements, but it would be cheaper than European alternative products,” Reder said.

He said that the African pharmaceutical market is complicated due to types of distribution, and the Kenyan market is rather weak.

“Tentatively it is annually estimated at some $250 million. The number of the population is comparable with Ukraine. Some $450 million of donor funds is spent on fighting malaria and HIV. The products sold in Kenya have small margins. This means that business is intricate. Some 95% of importers on the Kenyan market are from India. They always are heading to super low prices and unsophisticated products. The market is developing, and shares similar trends with our market,” he said.

He said that after the exhibition Interchem decided to study the issue of entering the African pharmaceutical market.

Interchem double liability company is one of the leading Ukrainian manufacturers of medicine and pharmaceutical substances. It has a full production cycle from the design and synthesis of new biologically active molecules, and the industrial production of pharmaceutical substances, to the production of medicines and sales of products to end consumers.

INDUSTRIALISTS TOGETHER WITH GOVERNMENT AGENCIES AND BANKS TO FACILITATE ENERGY EFFICIENCY PROGRAMS

The industrial community has been working to introduce energy efficiency and energy saving programs in Ukraine on a large-scale basis. The Ukrainian League of Industrialists and Entrepreneurs (ULIE) considers this to be one of the main factors of ensuring the competitiveness of Ukrainian industry and commodities in the European and other international markets. Entrepreneurs and industrialists cooperate in this area with parliamentarians, local authorities, public agencies, and financial institutions.
The signing of a Memorandum of cooperation between the ULIE and the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE), which was also joined by Ukrgasbank, has marked a milestone in this activity and become the logical continuation of cooperation between these organizations.
“The Memorandum is not a document of declaration, but the continuation of fruitful work, which began two years ago. We need to consolidate efforts, mainly engage Ukrainian producers in energy efficiency programs. This will facilitate the growth of the domestic market of respective materials and equipment, the creation of new jobs and an increase in the revenue of the budgets of all levels,” SAEE head Serhiy Savchuk said.
He thanked the ULIE for a proactive attitude to energy efficiency issues, noting that it is the domestic industrialists and entrepreneurs who form a point of growth for the Ukrainian economy.
A joint action plan, which will involve not only national government agencies, but also regional administrations and local government agencies, will be elaborated at the ULIE’s suggestion. The plan will propose detailed measures for 2016.
“In particular, it should include work to improve the regulatory framework, ease access to loans, pursue an effective policy in energy efficiency and introduce appropriate incentives for enterprises,” ULIE President and Chairman of the Anti-Crisis Council of NGOs Anatoliy Kinakh said.
The Memorandum stipulates that the parties should be engaged in the development and implementation of energy efficiency programs and hold a series of joint public events.
The creation of regional centers that will popularize and advise condominiums, construction firms and households on the efficient use of energy resources, renewable energy sources and alternative types of fuel is also seen as an effective tool.
Ukrgasbank, which in 2015 started focusing on issuing loans under energy saving projects, will in turn continue this activity in future. And, as was proposed by partners from the business circles, the bank will also consider ways to improve lending conditions in this area.