Business news from Ukraine

AVTOKRAZ STARTS SHIPPING TRUCKS TO LAOS

KYIV. May 14 (Interfax-Ukraine) – Public joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the only heavy truck producer in Ukraine, has shipped the first batch of all-wheel-drive trucks to Laos as part of a contract signed in December 2014.

According to a company press release issued on Thursday, KrAZ-6322 trucks with Euro 0 engines will be shipped in sea containers partially dismantled, which will cheapen the cost of transportation.

AvtoKrAZ resumed supplies to Laos after a considerable break – the company had not supplied trucks to Laos since 1989.

AvtoKrAZ makes 33 basic vehicle models, and more than 260 modifications and trim levels for civilian and military vehicles.

DTZ, CUSHMAN&WAKEFIELD PLAN TO FISNISH MERGER DEAL BY LATE 2015

KYIV. May 13 (Interfax-Ukraine) – DTZ and Cushman&Wakefield have reached a definitive agreement to merge and plan to close the deal by late 2015 and it is subject to customary closing conditions.

DTZ and Cushman&Wakefield are set to become one of the largest global real estate services companies.

According to the press release of DTZ, the new company will have revenues over $5.5 billion, over 43,000 employees and will manage more than 4 billion square feet globally on behalf of institutional, corporate and private clients.

“DTZ is elated to be merging under the prominent Cushman & Wakefield brand. The companies have remarkably complementary skills and reach in different geographies – whether in New York, London or Shanghai, this will be a formidable combination,” said Brett White, who will assume the role of Chairman and Chief Executive Officer of the combined company.

Upon completion of the merger, Carlo Barel di Sant’Albano, current International CEO of Cushman & Wakefield and EMEA CEO, will take a senior global leadership role. John Santora, current CEO of North America at Cushman & Wakefield, will become Chief Operating Officer and Chief Integration Officer and Tod Lickerman, current Global CEO of DTZ will assume the role of President of the global company.

Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. Founded in 1917, it has 259 offices in 60 countries, employing more than 16,000 professionals. It offers a complete range of services to its occupier and investor clients for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, appraisal, consulting, corporate services, and property, facilities, project and risk management.

Cushman & Wakefield does not have offices in Ukraine.

An 80.1% stake in the company belongs to EXOR.

DTZ was founded by Chesshire Gibson company, which started its operation in 1784 in Birmingham (Britain). Since December 2011, it is part of UGL Services, a division of UGL Limited.

The company provides comprehensive services to corporate clients and tenants, as well as offering solutions on investment in real estate, leasing, management and maintenance of real estate, construction and project management, object assessment, asset management and investment management. Its 265 representative offices, located in 52 countries, employ 28,200 people, including subcontractors.

DTZ opened its office in Ukraine as a first international consulting company in 1994.

In Ukraine, the company’s office is located in Kyiv and it employs more than 50 professionals.

JOINT EFFORTS OF GOVERNMENT, PARLIAMENT, PRESIDENT NEEDED TO IMPLEMENT ASSOCIATION AGREEMENT – TOMBINSKI

KYIV. May 13 (Interfax-Ukraine) – The implementation of the Association Agreement with the European Union requires the joint efforts of the Ukrainian government, parliament and president, Head of the EU Delegation to Ukraine Jan Tombinski has said.

At an international conference entitled “Ukraine-EU: A Year after the Signing of the Association Agreement,” which was held in Kyiv, he said the government, parliament, president, and everybody interested in this process must become united.

Tombinski said that the successful implementation of the agreement depends on three elements, the first of which is that all state officials believing that the integration process is necessary not just for the European Union, but for Ukraine itself.

He said the second element is constant dialogue with society as the reforms being carried out in Ukraine require dialogue that will help ease social problems caused by the reforms.

He went on to say that the third element is the support of Ukraine-EU integration by all EU 28 member states.

CABINET APPROVES SALES OF STATE STAKES IN THERMAL POWER PLANTS, REGIONAL POWER GENERATORS

KYIV. May 13 (Interfax-Ukraine) – The Ukrainian Cabinet of Ministers has decided to put state stakes in four power generation companies, seven combined heat and power plants, and 11 regional power generation companies up for sale in 2015.

The companies approved for sale are listed in Cabinet resolution No. 271 dated May 12, 2015, which was posted on the government’s official website.

A 78.29% share in PJSC Centrenergo will be put up for sale, as well 25% of shares in PJSC Donbassenergo, PJSC DTEK Dniproenergo and PJSC DTEK Zakhidenergo each.

Also, a 25% share of PJSC Kyivenergo, PJSC DTEK Dniprooblenergo, PJSC DTEK Donetskoblenergo, PJSC Odesaoblenergo, PJSC Sumyoblenergo each will be put up for sale. The government also plans to sell the following state stakes in 2015: 65% of JSC Kharkivoblenergo, 60.25% of OJSC Zaporizhiaoblenergo, 70% of PJSC Khmelnytskoblenergo, 70% of PJSC Mykolaivoblenergo, 46% of PJSC Cherkasyoblenergo, and 51% of OJSC Ternopiloblenergo.

A 99.83% share of PJSC Kherson combined heat and power plant will be offered for sale, as will 99.99% of PJSC Odesa combined heat and power plant, 100% of PJSC Mykolaiv combined heat and power plant, and a 99.93% share of PJSC Dniprodzerzhynsk combined heat and power plant, state-run enterprise Severodonetsk combined heat and power plant, state-run enterprise Kryvorizka combined heat and power plant, and Kalush combined heat and power plant each.

The Cabinet also approved the sale of Kostiantynivska hydro-electric power station, Pervomaisk hydro-electric power station, and Myhiya hydro-electric power station.

As reported, two out of the four stakes in the power generation companies planned for sale are controlled by Rinat Akhmetov’s DTEK (a 72.9% stake in Dniproenergo and a 72.2% stake in Zakhidenergo). Ihor Humeniuk’s Energoinvest Holding owns 60.8% of Donbassenergo’s shares, while the state holds 78.2% of Centrenergo’s shares.

USDA FORECASTS GRAIN HARVEST IN UKRAINE AT 55.3 MLN TONNES, EXPORTS AT NEARLY 28.7 MLN TONNES IN 2015

KYIV. May 13 (Interfax-Ukraine) – The U.S. Department of Agriculture (USDA) has forecasted that the Ukrainian grain harvest in 2015 will reach 55.33 million tonnes against 64.1 million tonnes in 2014.

In particular, the USDA projects that in 2015 Ukraine will harvest 22 million tonnes of wheat, 33.33 million tonnes of fodder grain, and 26 million tonnes of maize.

According to the USDA, Ukraine may export 28.68 million tonnes of grain in the 2015/2016 marketing year (July through June), which will be 16.1%, or 5.51 million tonnes, down on exports expected in the current marketing year (34.19 million tonnes: 22.690 million tonnes of fodder grain and 11.5 million tonnes of wheat).

Ukraine is expected to supply 10.5 million tonnes of wheat to the world market in the new season, while fodder grain exports are expected to total 18.18 million tonnes, including 16 million tonnes of maize.

Ukraine’s State Statistics Service reported that the grain and leguminous crops harvest in Ukraine in 2014 totaled a record high of about 63.8 million tonnes, including 24.1 million tonnes of wheat, 9.04 million tonner of barley, and – 28.45 million tonnes of maize.

Ukraine’s Agrarian Policy and Food Ministry projects grain exports in the current marketing year to reach 32 million tonnes.

RELAUNCHED ZAZ MANUFACTURES 277 PASSENGER CARS IN APRIL

KYIV. May 13 (Interfax-Ukraine) – The UkrAVTO Corporation’s PJSC Zaporizhia car plant ZAZ, which resumed operating at full capacity in April 2015, manufactured 277 passenger cars, while its output in March 2015 was a mere 5 cars.

At the same time, output in April 2015 against April 2014 plunged by 85.8%, Ukrautoprom Association has reported.

In April 2015, ZAZ did not manufacture trucks and buses, whereas in April 2014 it produced 35 trucks and 17 buses.

ZAZ passenger cars output fell by 96.5% in January-April 2015, to 282 cars, while bus output dropped by 87.2%, to four buses, and it did not produce a single truck (240 trucks in the first four months of 2014).

As reported, ZAZ has drawn up a vehicle manufacture schedule for one quarter and its further plans will be unveiled after the first half of 2015 due to the unclear prospects for development and the current situation of the Ukrainian new vehicles market

Previously, the plant had said that production was being restored gradually. In March the component workshops started operation and welding of the car bodies began in early April.

ZAZ currently manufactures Lanos, Sens, Lanos- van, Forzа, and Vida cars. It also produces trucks and buses using TATA components.