Business news from Ukraine

NAFTOGAZ WILL AGAIN HOLD TENDER TO PROCURE LEGAL SERVICES TO REPRESENT COMPANY’S INTERESTS ABROAD

KYIV. Aug 19 (Interfax-Ukraine) – Naftogaz Ukrainy will again hold a tender for procurement of legal services to represent’s the company’s interests abroad, the company’s press service has said.

“The previous bidding announced on June 16, 2016 was canceled due to mismatch between proposals from bidders and qualification criteria. Shearman & Sterling LLP and King & Wood Mallesons LLP filed an incomplete package of necessary documents, confirming the availability of branches and staff of the appropriate qualification,” the report reads.

The expected price of legal services purchase is UAH 30 million, the deadline for submitting proposals is until September 19, 2016. The term of providing services is up to December 31, 2017.

Bidders must meet the eligibility requirements, in particular, have offices in at least three European Union countries (including Britain), the Middle East, the United States and China. Qualified personnel should be also confirmed.

INDIA’S AZAD COULD START ELECTRIC BUS PRODUCTION AT KHERSON MACHINE BUILDING PLANT

KYIV. Aug 19 (Interfax-Ukraine) – AZAD group of companies (India), a large manufacturer of public transport, could begin production of electric buses in Kherson, according to the website of Kherson Regional State Administration.

According to the report, with reference to administration chairman Andriy Hordeyev, a relevant memorandum on the launch of production will be signed on August 18 following his meeting with AZAD representatives.

“We are ready for cooperation, therefore we intend to sign a five-sided memorandum and jointly with AZAD we will develop a project to obtain an eco-loan from the EBRD,” the press service said citing Hordeyev.

According to investors’ conclusions, today Kherson machine building plant is most suitable for production, therefore it will be one of the parties to the memorandum.

“Kherson region is attractive for the start of production due to the warm climate and production sites that meet the relevant requirements,” the report reads.

During the meeting AZAD Group presented information about the buses it produces (urban, intercity, tourist, school, etc.), technical indicators of production, the companies that cooperate with it.

The cost of electric buses made by the company ranges from $200,000 to $500,000.

ACTIVE ENERGY GROUP RAISES GBP2.05 MLN TO EXPAND WOOD PROCESSING CAPACITY IN UKRAINE

KYIV. Aug 19 (Interfax-Ukraine) – Active Energy Group Plc (AEG), whose shares are traded on the London Stock Exchange, in early August attracted GBP2.05 million ($2.67 million at the current exchange rate) to expand the capacity of its AEG WoodFibre wood processing plant in Yuzhny port in Ukraine, as well as replenish working capital.

“We plan by the end of the year to launch a fully automated production line for hardwood capable of processing about 3,000 tonnes of raw materials per day, a new production line for softwood with a capacity of 1,000 tonnes per day,” a company report reads, with reference to its CEO Richard Spinks.

According to him, the short-term projects of capital investment in AEG WoodFibre in Yuzhny port also suggest the acquisition of mobile crushers and lift-and-carry equipment.

The report states the company with the help of Northland Capital Partners broker sold 77.358 million new shares at a price of GBP0.0265 per share to new and existing shareholders, which corresponds to a 16.5% discount to the closure price on August 2.

As reported, AEG has ten-year contracts to buy wood and process it into fire wood chips (in Ukraine) and supply products to energy facilities (in Poland). Liuboml forestry (Volyn region) supplies up to 100,000 of wood a year at the fixed price. Volyninvestbud makes fire wood chips from it at the fixed tariff and supplies up to 80,000 tonnes of finished products a year. Medium Sp. Z o.o. buys all products to deliver them to energy facilities in Poland.

INFRASTRUCTURE MINISTRY TO PRESENT NATIONAL TRANSPORT STRATEGY UNTIL 2030 IN THREE OR FOUR MONTHS

KYIV. Aug 18 (Interfax-Ukraine) – Ukraine’s Infrastructure Ministry intends to present the national transport strategy until 2030 in three or four months, Minister Volodymyr Omelyan has said.

“We are working on it with our European partners. We have finished a first phase of drawing up a draft national strategy of Ukraine until 2030. This must be an essential document to specify development of infrastructure that should become a driver of the Ukrainian economy,” he said at a briefing in Kyiv on Tuesday.

The minister said that among key top-priorities of the strategy is efficiency of public administration in the transport area, provision of high-quality and effective transport services, stable financing of transport, increase of safety and reliability and city mobility and regional integration.

LUTSK CARDBOARD CARDBOARD-PAPER MILL’S PRODUCTION OVER 28% UP IN JAN-JULY

KYIV. Aug 18 (Interfax-Ukraine) – Lutsk cardboard-paper mill, part of the United Cardboard Company belonging to businessman Mykola Lobov, produced goods worth UAH 241.53 million in January through July 2016, which is 28.8% up year-over-year, according to the Ukrpapir association.

The association said that during this period the mill made 31,600 tonnes of various types of cardboard – 6.4% up year-over-year (mainly packaging cardboard – 27,850 tonnes).

Box cardboard was made in small volumes (1,730 tonnes), as wells as roofing board (360 tonnes).

Cover board production decreased by almost 25%, to 1,710 tonnes. The mill also produced 710 tonnes of pulp.

One more company in the sector under control of the United Cardboard Company – Poninkivsky Cardboard and Paper Mill – increased production by 23% in January-July 2016, to UAH 215.87 million.

The mill more than doubled production of box board, to 35,170 tonnes, and corrugated cardboard packaging output rose by almost 18%, to 40.3 million square meters.

Paper production fell by 2.7% in January-July 2016, to 910 tonnes.

Lutsk cardboard-paper mill LLC was founded on the basis of assets of Lutsk cardboard-ruberoid mill in summer 2012.

The mill produces raw materials for corrugated board production (fluting and test liner), roofing, box and cover cardboard.

In 2015, the mill produced goods worth UAH 404.55 million, which was 67.1% up year-over-year.

Poninkivsky Cardboard and Paper Mill was founded over 200 years ago. The mill produces cardboard and paper.

In 2015, the mill saw a rise of 97.3% in production, to UAH 329.22 million.

CITIES’ OPEN DATA SERVICE TO BE LAUNCHED IN UKRAINE – OPORA CIVIL NETWORK

KYIV. Aug 18 (Interfax-Ukraine) – An open data service of cities under the Apps4Cities project is to be launched in Ukraine, Head of OPORA Civic Network Olha Aivazovska has said.

“Our ambitious goal is to ensure that every city resident could have access to cities’ data available within our project, use it with the help of mobile apps and other technologies. Types of data that will be made available relate to everyday life, starting from transportation to education and leisure.” Aivazovska said at a press conference in Kyiv on Tuesday.

The data will be useful not only to journalists or analysts, but also to ordinary citizens, she said.

The project will be implemented during the second half of 2016 and in early 2017.

The OPORA Civil Network is a non-governmental, non-political and financially independent nationwide network of public activists.