Business news from Ukraine

ITALY’S ERNEST AIRLINES TO OPEN OFFICE IN KYIV AND PLANS TO INVEST EUR 100 MLN IN UKRAINE

Italy’s Ernest Airlines to open office in Kyiv and plans to invest EUR 100 mln in Ukraine
KYIV. June 19 (Interfax-Ukraine) – Italy’s Ernest Airlines will open its office in Kyiv this summer, and in 2020 plans to place two planes in Kyiv, according to a posting on the website of the Sikorsky Kyiv International Airport. As the airport press service said, Ernest Airlines has already invested more than EUR 30 million in the Ukrainian market over the past two years, and plans to invest more than EUR 100 million in the next two years.
“In 2020, it is also planned to place two aircraft in Kyiv. This will give even more opportunities for work to even more people in Ukraine,” the airport said.
According to the airport, Ernest Airlines services 13 destinations from Ukraine to Italy. In 2018, the airline transported more than 200,000 Ukrainian passengers, and in 2019 it is planned that the number of passengers from Italy to Ukraine and back will exceed 500,000 passengers.
“This year, Ernest will open a call center in Ukraine to attract even more Ukrainian operators who will be able to more effectively help all its passengers. Ernest also employs more and more crew members who speak Ukrainian to have such specialists on all their flights,” the airport said.
In addition, Ernest Airlines already has a special call center in Italy with Ukrainian-speaking employees.
Ernest Airlines is an Italian airline headquartered in Milan. The main operations center of the company is located in Tirana (Albania). The airline is a low cost carrier and serves the Italian and Albanian markets. The airline flies from Kyiv to Rome, Milan (Bergamo and Malpensa), Naples, Bologna and Genoa, and also from Lviv to Rome, Milan (Bergamo), Naples and Venice; from Kharkiv to Rome and Milan (Malpensa), and from Odesa – only to Rome.

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DUNAPACK TAVRIA TO INVEST EUR 2 MLN IN CORRUGATED CARDBOARD PROCESSING LINE

The corrugated cardboard box plant Dunapack Tavria (Oleshky, Kherson region) plans to launch another corrugated cardboard processing line with an annual capacity of 16-18 million square meters in August, Dunapack Tavria CEO Kostiantyn Turyhin said at a briefing at the plant on June 11. “Investment in the launch of this line in total with peripherals will be about EUR 2 million,” he said.
According to Turyhin, over the past three years, the demand for corrugated cardboard has increased by 3-7% per year.
At the same time, Dunapack-Tavria said that the waste paper market in Ukraine is very opaque, and the waste paper itself is not enough to ensure the need of Ukrainian enterprises.
As reported, according to the UkrPapir association, in January-April 2019, Dunapack-Tavria increased the production of cardboard boxes 22%, to 22.7 million square meters.
Austrian Dunapack Concern in 2013 opened the Dunapack-Tavria plant in Oleshky (Kherson region) for the production of corrugated packaging, investment in which amounted to EUR 38 million.

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BALTIC BEVERAGES INVEST FROM SWEDEN RAISES STAKE IN CARLSBERG UKRAINE TO 100%

Baltic Beverages Invest AB (BBI, Sweden) has increased its stake in PrJSC Carlsberg Ukraine (Zaporizhia), one of the largest brewing companies in Ukraine, to 100%.
According to a company report in the information disclosure system of the National Securities and Stock Market Commission, the squeeze-out procedure was completed on June 12, 2019. As reported, Baltic Beverages Invest planned to buy out 12.6 million shares of Carlsberg (1.2% of the number of its shares) for UAH 185 million.
Carlsberg Ukraine in 2018 saw net profit rise by 1.5 times compared with 2017, to UAH 1.634 billion. Carlsberg Ukraine is part of Carlsberg Group, one of the leading brewing groups in the world, whose products are sold in more than 150 countries. Carlsberg Group in Ukraine consists of three breweries in Zaporizhia, Kyiv, and Lviv.

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U.S. TRIDENT ACQUISITIONS CORP READY TO INVEST $1 BLN IN UKRAINIAN BLACK SEA SHELF

U.S. Trident Acquisitions Corp., which submitted one of the four bids in a tender to develop the Dolphin section on the Black Sea shelf under a product sharing agreement (PSA), has said that the company is ready to invest $1 billion. “We proposed investment in the amount of $1 billion to Ukraine, the start of production in three and a half years if the reserves are discovered and the most experienced offshore fields development team,” Trident Acquisitions CEO, former Deputy of the State Duma of Russia Ilya Ponomarev, who became the Ukrainian citizen under a decree of Petro Poroshenko in May, wrote on his Facebook page.
“We see what rivals would say, we are keeping our fingers crossed and looking forward for [the results],” he said.
As reported, the Cabinet of Ministers of Ukraine on April 12 announced a tender to develop the Dolphin Black Sea shelf section under the PSA. The term of the PSA is 50 years. The winner of the tender must provide a geological survey of the subsoil at the site, including the drilling of at least five wells during the first stage (five years) of geological exploration. The minimum investment that must be made in this period will be determined by the results of the tender, but must be at least UAH 1.5 billion.
The initiative to develop the Dolphin section belonged to another U.S. company, Frontera Resources Corporation, which also applied its bid for the tender.
Two other participants are Caspian Drilling International Ltd, a state-owned oil company of the Republic of Azerbaijan (SOCAR), and Ukrnaftoburinnia, one of the largest private gas producing companies in Ukraine.

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HENKEL TO INVEST IN MODERNIZATION OF DRY MORTAR MIXES PLANTS IN UKRAINE

Henkel Bautechnik (Ukraine) plans to invest around EUR 400,000 in the modernization of plants in Vyshgorod (Kyiv region) and Balakliya (Kharkiv region).
“The automatic line will be modernized at the plants in Vyshgorod and Balakliya from May of the current year, resulting in increased effectiveness and safety. The quality of product packaging will also improve. The amount of investment is about EUR 400,000,” Director General of Henkel Bautechnik (Ukraine) Olha Stupina told Interfax-Ukraine.
According to her, the company’s turnover in 2018 amounted to UAH 2 billion, forecasts for 2019 are positive, growth is expected. The company has significantly increased its financial performance compared to 2014, despite the loss of a quarter of the sales market.
“We estimate the results of last year as good. For the second time, Ukraine became the best company in the world in the Henkel adhesive division by consolidated financial indicators. I believe that in the conditions in which Ukraine is located relative to other countries of Europe and the world, this is a very big achievement,” Stupina said.
The total production capacity of the four factories of Henkel Bautechnik (Ukraine) is about 600,000 tonnes of products per year.
In the market of water-dispersion paints with a volume of about 150,000 tonnes, the share of Henkel Bautechnik (Ukraine) is about 17%, the press service of the company said.

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UKRTELECOM TO INVEST UAH 270 MLN IN FIBER OPTIC INTERNET NETWORK

Ukrtelecom will invest around UAH 270 million in the development of the high-speed fiber optic Internet network using GPON technology in almost 300 small towns and villages. Almost UAH 135 million was raised from Slovenia’s SID Bank, a promotional development and export bank.
“The start of construction of the fiber optic network is scheduled for the middle of May. The first connections to the new network will be already in July,” the operator said on Tuesday.
According to the report, the project is designed for two years and will be implemented jointly with the Iskratel telecommunications company. It provides for the construction of more than 3,500 km of fiber optic lines and subscriber access speeds of up to 200 Mbit per second, with the ability to use Internet telephony and interactive television. The partner company was selected based on the results of the tender for a comprehensive solution for the construction of the network, including construction and installation works, supply of equipment and startup works, the company said.
“The loan is secured by the insurance policy of SID bank to cover commercial and non-commercial risks. In this project, SID bank acts as an export credit agency,” Ukrtelecom said.

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