Business news from Ukraine

DTEK TO BUILD PILOT SOLAR POWER PLANT IN KHERSON REGION THIS YEAR

KYIV. June 6 (Interfax-Ukraine) – DTEK energy holding intends to build the first solar power plant with a capacity of 10 MW in Kherson this year, DTEK’s press service has reported.
“Due to the long duration of land acquisition for building energy facilities, the company decided to purchase a ready-made solar power plant project. The partner is the French engineering company Beten Ingenierie SAS … A suitable project for building a solar power plant in the village of Tryfonivka in Kherson region was selected in Beten’s portfolio,” the press service said.
The plant will have solar modules produced by the Chinese company JA Solar and inverters made by ABB in Italy. The forecasted electricity supply will amount to 11-12 million kWh annually.
As reported, DTEK previously bought Tryfonivka Energy LLC (Kherson region).
DTEK is considering the possibility of building up to 1 GW of “green” generation capacity in the next five years.

METINVEST RANKS 37TH AMONG WORLD’S LARGEST STEEL PRODUCERS IN 2016 – WORLDSTEEL

DUSSELDORF. June 6 (Interfax-Ukraine) – Metinvest, the largest Ukrainian mining and metallurgical holding, in 2016 ranked 37th in the list of the world’s largest steel producers with a volume of 10.34 million tonnes compared to the 40th place in 2015 with a volume of 9.65 million tonnes of steel and the 33rd place in 2014 with a volume of production of 11.18 million tonnes of steel.
According to the World Steel Association (Worldsteel), the largest steel company last year was ArcelorMittal with a production volume of 95.45 million tonnes. It is followed by China Baowu Group, a new company that appeared in December 2016 as a result of the merger of Baosteel Group and Wuhan Group, with 63.81 million tonnes, HBIS Group (formerly Hesteel Group) with 46.18 million tonnes (it includes a steel mill in Serbia acquired in June 2016), NSSMC with 46.16 million tonnes (the figure does not include production at Nisshin Steel, which became part of the group in March 2017), and POSCO with 41.56 million tonnes.
The list of the 50 largest world steel producers for 2016, as well as for 2015 and 2014, does not include Ukrainian companies except for Metinvest. The Industrial Union of Donbas (ISD), which ranked 44th in 2013 with 7.9 million tonnes, fell out of the list of leaders in 2014, 2015 and 2016.

JAPAN’S FUJIKURA PLANS TO OPEN TWO MORE PLANTS IN UKRAINE – KUBIV

KYIV. June 6 (Interfax-Ukraine) – Fujikura Automotive Ukraine Lviv LLC, controlled by the Japanese manufacturer of electrical equipment and telecommunications systems Fujikura, plans to open two additional plants in Ukraine with an area of 10,000 square meters in Vinnytsia and Cherkasy for 1,500 new jobs each, First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv has said.
“Fujikura says it assessed the prospects of work in Ukraine and decided that there are wonderful specialists, opportunities and conditions here,” he wrote on his Facebook page following a meeting of the Ukrainian committee of economic cooperation with the Japan Business Federation Keidanren.
Kubiv added Fujikura Automotive Ukraine Lviv also plans to expand the work of two major enterprises in Lviv region and increase the number of employees from 2,000 to 3,000.
Fujikura was founded in Japan in 1885 and gradually expanded to an international corporation engaged in innovative technologies. The turnover of the company exceeds EUR5 billion per year. The company’s representative offices operate in the United States, Singapore, Malaysia, Great Britain, Vietnam, and India. Its staff exceeds 50,000 employees worldwide.

THREE COMPANIES WIN TENDER TO BUILD INCINERATION PLANTS IN LVIV REGION

LVIV. June 6 (Interfax-Ukraine) – The tender commission for selecting investors to construct incineration plants in Lviv region has recognized as winners all three companies that participated in the second round of the tender.
The commission announced this decision at a meeting on May 31.
Thus, Investment and Environmental Company, Glasswork Technology LLC and Waste Management Systems LLC got the right to implement their projects.
At the same time, the commission chairman, the deputy head of Lviv Regional State Administration, Iryna Hrymak, told reporters the winners will offer several more land plots where incineration plants could be built.
“We have a number of sites in Mykolaiv, Sokal, Yavoriv, Drohobych and Mostyska districts. There will be more plots for the communities to get a chance to host investors,” she said.

CANADA’S GOVERNOR-GENERAL SIGNS FREE TRADE AGREEMENT WITH UKRAINE

KYIV. June 6 (Interfax-Ukraine) – Canada’s governor-general signed on June 1 a free trade agreement with Ukraine, which was agreed earlier by the House of Commons and the Senate, Ukrainian President Petro Poroshenko said on his Facebook page.
In addition, Ukraine’s ambassador to Canada Andriy Shevchenko wrote on Twitter that “the free trade agreement between Ukraine and Canada has received royal assent.”
“Taking into account the ratification by the Dutch Senate of the agreement on association between Ukraine and the EU, this decision has more than symbolic significance… Both Canada and the Netherlands virtually simultaneously took a decisive step towards the formation of the Ukraine-Canada-EU free trade triangle. After completing all formal procedures, this triangle will unite the three regions on the two continents based on the joint commitment to liberal values and ideas,” reads the statement said on the president’s page.
According to Poroshenko, these decisions are the evidence of the efficiency of reforms implemented in the country, a stimulus for strengthening internal reforms and a powerful signal for international partners.

JAPANESE BUSINESS TO INVEST IN UKRAINE, HOPES FOR COOPERATION UNDER WIN-WIN FORMULA

KYIV. June 6 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman and Chairman of the Committee on Business Cooperation with Ukraine of the Japan Business Federation Keidanren Teruo Asada at a meeting in Kyiv have discussed the prospects of attracting Japanese business, including the establishment of Japanese production in Ukraine.
“I want to thank Japan for the full support of Ukraine – both economic and political. We deeply appreciate our relations and are interested in developing them. We have good signals on bilateral trade and good opportunities to attract Japanese companies to the Ukrainian market. We welcome the activities of Japanese businessmen in Ukraine,” Groysman said.
He assured the Japanese guest that Ukraine is committed to carrying out “important and complex reforms” this year.
“And the growing economy is a good signal for investment. Especially since we have a wide range of cooperation areas – from IT to agriculture and infrastructure. We are interested in creating real production in Ukraine,” the prime minister added.
Teruo Asada, in turn, stressed that Japanese business could be very useful for Ukraine, as it is interested in such areas as renewable energy, construction of high-speed highways, including on a concession basis, modernization of port infrastructure.
“Your country can be proud of human capital, which is very attractive to Japanese enterprises. And we hope for the success of the reforms announced by your government aimed at improving the business climate. We are committed to investing in Ukraine, and I think our countries will be able to develop a strategy for cooperation under a win-win formula,” the expert said.