Business news from Ukraine

Taiwanese government to allocate $2.5m to Kiev for construction of bridge in Kiev

The Taiwanese government will allocate $2.5 million to Kiev for the construction of a bridge to Obolonsky Island in the capital, according to the website of the Ministry of Foreign Affairs of Taiwan.

According to the press release, earlier $1 million for the construction of the bridge was sent to Kiev by the Metropolis of Greater Paris. Taiwan, along with other countries, supports the reconstruction of Ukraine and emphasizes the importance of solidarity and cooperation of the democratic community during the Russian-Ukrainian war, noted in the message.

As reported with reference to Obolonska Regional State Administration, Kiev received about UAH 20 million from the Metropolis of Greater Paris to complete the construction of a pedestrian bridge on Obolonsky Island.

The pedestrian bridge on Obolonsky Island is being built since 2020 at the expense of patrons. According to the project, the bridge will rest on four supports, two of which are located in the strait. The width of the pedestrian facility is 4 meters, length – 164 meters.

By the beginning of 2023, three bridge supports were installed and materials were purchased. With the funds provided by the Metropolis of Greater Paris, it was planned to complete the installation of the fourth bridge abutment, purchase and install the auxiliary and partially purlin structures, and purchase steel structures.

Source: https://en.mofa.gov.tw/News_Content.aspx?n=1328&sms=273&s=115105

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Construction of new homes in U.S. in June fell by 8%

The number of houses, construction of which was started in the United States in June, decreased by 8% compared to the previous month and amounted to 1.434 million in terms of annual rates, according to the report of the Ministry of Commerce of the country.

According to the revised data, in May the number of new buildings amounted to 1.559 million, not 1.631 million, as previously announced.

Experts had forecast the figure to fall to 1.48 million from the previously announced May level, according to Trading Economics.

Construction of single-family homes fell 7% last month to 935,000. In the case of multifamily (including apartments and condominiums), a more volatile segment of the market, the number of new construction fell 11.6% to 482,000.

The number of building permits for new homes issued in the U.S. in June fell 3.7% to 1.44 million at an annualized pace from a revised 1.496 million a month earlier.

Analysts had expected the number of permits to fall to 1.49 million from the previously announced May figure of 1.491 million.

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Krupets Agro Corporation completes construction of poultry farm for 400,000 laying hens

Agricultural Corporation Krupets (Rivne region), which owns one of the largest farms for the production and sale of chicken eggs in the western region of the country, is completing the construction of a poultry farm, where it will grow 400 thousand laying hens with the prospect of further export of products to the EU.

The head of Rivne Regional Military Administration (OVA) Vitaliy Koval emphasized that by investing in new projects and supporting the “economic front”, the agro-corporation gives a very important message to all those involved in business – not to stop despite the challenges of wartime.

The report on the OBA website specifies that the construction site of more than 6 hectares is located on the site of a former abandoned farm in the village of Sytnoye, Dubensky district. The works are performed by the local construction company “Renome-Eurobud”. The launch of the enterprise is scheduled for November 2023. The poultry farm is planned to be certified according to European standards for further export of products to the EU.

More than 20 high-paying jobs will be created at the poultry farm. It is expected that it will annually transfer about UAH 3 mln of taxes to the local Krupets community.

Agrocorporation “Krupets” operates with a land bank of 7 thousand hectares, specializing in growing crops, production of chicken eggs, broiler meat, mixed fodder, drying and storage of grain.

The structure of the agricultural corporation includes elevator and drying complexes for simultaneous storage of 60 thousand tons of grain, feed and oil extraction plants, soybean processing line, four poultry complexes.

The enterprises of Krupets agro-corporation (Poultry Farm Krupets, Krupets Feed Mill) are one of the largest farms for production and realization of edible chicken eggs in the Western region of Ukraine.

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Share of new buildings, in which construction was resumed, by regions of Ukraine

Share of new buildings, in which construction was resumed, by regions of Ukraine

Source: Open4Business.com.ua and experts.news

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Ukrainian construction industry forecasts job growth – Ministry of Reconstruction

For the first time since February 24, 2022, construction companies plan to increase the number of employees, according to the press service of the Ministry of Reconstruction.
As noted in a press release, such positive sentiment is recorded in a survey conducted in June 2023 by the National Bank of Ukraine “Business Activity Expectations Index of Enterprises”.
According to the survey, the construction companies expect an increase in the volume of construction, the number of new orders, as well as an increase in the purchase of raw materials and supplies.
According to the research Ukrainian business positively evaluates results of its activity for the third month in a row, which indicates gradual adaptation to difficult conditions of full-scale Russian invasion.
Debugging of production and logistics chains, improvement of inflation and exchange rate expectations as well as revival of domestic demand contribute to activation of business processes.
It is noted that business expectations of the construction business have improved due to the expansion of Western logistics, road construction and rehabilitation, as well as due to weather conditions.

“Nibulon” invests EUR27 mln in construction of new elevator and plant

JV Nibulon LLC (Nikolaev), one of the largest operators on the grain market of Ukraine, attracted EUR27 million from the Export Investment Fund of Denmark (EIFO) to increase the capacity of the Bessarabian branch in Izmail, where an elevator and a flour mill will be built, the company’s press service said on Facebook.
“We are extremely impressed by the speed of decision-making and support from Denmark in these difficult times for the Ukrainian economy. We really need more and more such positive signals so that others can emulate them,” Nibulon CFO Olga Babanina said.
According to the grain trader, the raised funds will be used to build an elevator for simultaneous storage of 118.5 thousand tons of grain and high-tech modern mill with a capacity of 750 tons per day.
This infrastructural solution will allow Nibulon to increase its export capacity up to 300,000 tons per month and supply flour to the domestic market as well as serve the interests of the food security mission of UN World Food Program via the Danube ports, the company explained.
Besides, the company added that construction of the new production facilities will allow to increase the number of jobs in the region and employ 100 specialists.
As it was informed, the financing is carried out within the framework of social program of Danish Investment Fund, created for Ukraine. The launch of the program was announced in May during the Ukrainian Investment Forum in Copenhagen.
JV Nibulon LLC was founded in 1991. Before the Russian military invasion the grain trader had 27 transshipment terminals and complexes for reception of agricultural crops, capacities for simultaneous storage of 2.25 mln tons of agro-industrial complex products, fleet of 83 vessels (including 23 tugboats) and owned Nikolaev Shipbuilding Plant.
“Nibulon” before the war worked 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
The grain trader exported a maximum of 5.64 million tons of agricultural products in 2021, reaching record volumes of deliveries to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons and in the second half of the year – 3.71 million tons.
Nibulon’s losses from Russia’s full-scale invasion reached $400 million. The grain trader is currently operating at 30% of its capacity and has set up a special unit to clear farmland.

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