Business news from Ukraine

Swiss Nestle started construction of pasta factory in Volyn region

Switzerland’s Nestlé, the world’s largest producer of food and soft drinks, has launched the announced construction of a plant to manufacture pasta and other food products in the Smolyhiv village, Torchyna district, Volyn region. Earlier the company invested CHF40 million (nearly $45 million) in the project, business.rayon reported.
Alessandro Zanelli, general director of Nestlé in Ukraine and Southeast Europe, expressed confidence Wednesday at a ceremony marking the start of construction that the plant in Torchin will become a European regional hub for the culinary category.
“I’ve seen Ukrainian cities that were destroyed after all kinds of attacks and how they were rebuilt within a year. The Ukrainians are working successfully to rebuild the infrastructure. Of course, we are calculating the possible risks, but we are confident that we are doing the right thing. Ukraine is worth investing in,” said Marco Sattembri, executive vice president of Nestlé and chief executive of the European zone.
It is specified that at the first stage of work the enterprise will create 300-400 workplaces. Specialists from Kharkov, where there is already a factory producing instant noodles “Mivina”, and local staff are involved in the work at the plant.
Nestle is one of the world’s largest food producers, headquartered in Vevey, Switzerland. The company has 376 factories in 84 countries and produces chocolate and confectionery products, ready-made breakfasts, pet food, baby and medical food, coffee, mineral water, etc. Its portfolio includes more than 2 thousand brands, including Nestle, Nescafe, KitKat, Gerber and Maggi.
Nestle in Ukraine produces coffee and beverages, confectionary, culinary products (cold sauces, seasonings, soups, instant food), baby and special food, ready-made breakfasts and pet food. The most famous Ukrainian brands of the company are Svitoch, Torchin and Miwina.
As reported, in December 2022, Nestle announced its decision to open the production of “Mivina” in Volyn.

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Naftogaz of Ukraine rejects construction of Lviv’s first CHP plant on wood chips

NJSC Naftogaz of Ukraine has refused to implement the UAH 1 billion project to build the first powerful biofuel CHP in Lviv that was launched when Yuri Vitrenko was in charge of the company, Lviv mayor Andriy Sadovoy said.
“Unfortunately, we have not found the support of “Naftogaz” in the implementation of this project, so now the process is suspended. We are directing all our energy, in particular, to the construction of a waste recycling plant,” he told Energoreform correspondent on the sidelines of the high-level meeting “Agreement of Mayors in Ukraine: Planning Sustainable Development Together” in Lviv on Wednesday.
At the same time, Sadovy noted that no money was allocated from the city budget for the CHP construction project. “It was an initiative of the former head of Naftogaz (Yuriy Vitrenko – ER), but today the management of the company has a different opinion regarding such projects in Ukraine,” the Lviv mayor explained.
At the same time, he pointed out that among other things there is a waste composting station in Lviv, and other eco-projects aimed at reducing CO2 emissions are implemented.
As Ukrainian News earlier reported, in September 2022, the Naftogaz of Ukraine jointly with the Lviv City Council launched a project to construct a combined heat and power plant on wood chips, which was planned to be put into operation by February 2023.
As Vitrenko said then, the cost of the project for the company will cost approximately UAH 1 billion.
Sadovaya, in turn, noted that for the city it will be the first powerful CHP plant on alternative fuel, which will cover about a quarter of its needs in heat. “We have planned such a project with the EBRD for a long time, but according to their classical procedures we could start it only next year. But Russian aggression has so activated the thought process that we came to agreements with Naftogaz,” he explained.
Similar projects were planned in other cities: under Vitrenko, Naftogaz announced its intention to build at least nine combined heat and power plants in eight regions of Ukraine with a total capacity of 250 MW of thermal energy and 52 MW of electrical energy.
According to Sadovyy, the construction of a waste processing plant in Lviv is planned to be completed by the end of this year. The works are 25% completed.
“Covenant of Mayors in Ukraine: planning sustainable development together” is the biggest movement in the world concerning climate and energy, which started in the European Union in 2008. Now the initiative unites 11 thousand local and regional authorities in 55 countries of the world. For today almost 300 Ukrainian communities have joined the climate movement. They have developed 180 action plans aimed at solving energy and climate problems. Signatories of the agreement in Ukraine have pledged to reduce CO2 emissions by more than 25 million tons per year.

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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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Voestalpine AG invests EUR 1.5 bln in construction of two electric arc furnaces

Austria’s voestalpine AG will invest about €1.5 billion in the construction of two electric arc furnaces, the steelmaker said in a statement.
Construction will start in 2024. The facilities will be commissioned in Linz and Donavitz, Austria, in 2027.
The new equipment will replace two blast furnaces and will run on green electricity, which could allow the company to reduce its carbon dioxide emissions by 30%. Voestalpine plans to replace two more blast furnaces after 2030.
The combined capacity of the two new electric furnaces is about 2.5 million tons of steel per year.
Voestalpine shares are down 0.5 percent in trading in Vienna on Wednesday.

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The volume of housing construction in Ukraine in 2022 decreased by 1.9 times

The total area of residential buildings, which are issued permits for construction works (new construction) in 2022 decreased by 1.9 times compared with 2021 – up to 6.67 million square meters, said the State Statistics Service (Derzhstat).

According to statistics agency, in January-December 2022, the total area of new construction of apartment buildings was 6 million 528.5 thousand square meters (98% of the total volume). The number of apartments in apartment buildings declared at the beginning of construction was 85 thousand, which is 41% less than last year.

In Kiev last year, the total area of new housing construction decreased by 70% to 878.3 thousand square meters. m, in the Kiev region – by 33% – to 1.86 million square meters. m.

According to State Statistics Committee of Ukraine, in Lviv region the volume of new construction decreased only by 8% compared to the previous year and amounted to 1.01 million square meters. This is the smallest drop among all the regions.

In Khmelnytsky region the volume of new construction was decreased by 40% to 330.8 thousand m2 , in Odessa region – “minus” 70%, to 265.3 thousand m2 , in Kharkiv region – decreased by 69%, to 214.3 thousand m2 , in Ternopil region – “minus” 20%, to 258.7 thousand m2 , in Ivano-Frankivsk region – decreased by 16%, to 204.4 thousand m2.

At the same time, the volume of new construction in the Volyn region amounted to 425.1 thousand square meters in 2022, which is 2.3 times more than last year. The volume increase against the previous year was also recorded in the Rivne region – “plus” 13%, up to 194 thousand square meters.

In other regions of Ukraine the volume of new construction last year showed a drop to the previous year and was less than 200 thousand square meters.

Gosstat reminds that the figures do not include the temporarily occupied territory of the Crimea and Sevastopol, as well as part of the temporarily occupied territories of Donetsk and Luhansk regions.

After long break in Kiev, construction of subway to Vinohrady was resumed

After a long break, the construction of the subway to Vynohradar has been resumed in Kiev.
As the head of the Kyiv subway Viktor Brahinsky said on the air of TSN, the contractor has resumed the construction of a new subway station in Kyiv – Vinohradar: first the consolidation of already built tunnels will be completed, and then will begin construction of the second tunnel from Mostitskaya station to Syrets station.
According to Brahinsky, there is no clear timeline for the completion of the work yet, because the pace of construction is affected by the current situation in the country.
“Of course, the pace of construction is affected by the current situation, because construction crews and everyone involved in the construction during the air alert must be safe. In addition, the unstable power supply slows down the work process. But despite the difficulties arising from the war, the Kiev city authorities and the subway are making every effort to ensure that this project will continue,” – said the head of the subway.
Previously, the capital authorities had promised the citizens to open the first station at the end of 2021, but it did not meet the deadline, and then the war began. According to the previously published project, the Kyiv subway is going to build four new stations from “Syrets” terminus: “Mostitskaya”, “Prospekt Pravda”, “Vinogradar” and “Marshala Grechko Street”.

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