Business news from Ukraine

UKRAINE THE SECOND EXPORT MARKET FOR GEORGIAN WINES; 4.191 MLN BOTTLES SOLD (11% OF THE TOTAL)

Georgia exported 38.2 million bottles of wine from grapes (0.75-liter bottles) in January-June 2018, 21% more than in 2017, the Agriculture Ministry’s National Wine Agency reported. Russia was the leading importer of Georgian wine in the period, boosting imports 24.4% to 24.022 million bottles or 62.9% of the total. Other major importers included Ukraine – 4.191 million bottles (11% of the total), China – 2.976 million (7.8%), Kazakhstan – 1.652 million (4.3%) and Poland 1.164 million (4.1%).
A total of 190 Georgian companies exported wine in the six months, 18 more than a year earlier. Exports to countries in Europe and Asia, and to the U.S. and other countries, increased substantially. Georgia also exported 8.4 million bottles of brandy (0.5-liter bottles), 23% more than in H1 2017, to 20 countries. Revenue rose 6% to $17 million. Overall exports of wine, brandy and other products – chacha, other alcoholic beverages, wine materials and brandy spirits – were worth $148.3 million, 21.5% more. Georgia exported wine to 48 countries in H1 2018, up from 44 in the same period last year. Revenue from the exports rose 28% to $90 million.

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AMERICAN AGCO WANTS TO BOOST UKRAINIAN AGRI MACHINERY MARKET SHARE TO 20% – VICE PRESIDENT IN EUROPE ROB SMITH

AGCO, a global leader in production and delivery of agricultural machinery and equipment, seeks to occupy 20% of the Ukrainian imported agricultural machinery market in three years. “Last year we finished with the 9% share of the Ukrainian market of foreign agricultural machinery, and by 2018 we are planning to reach the market share that will have a two-digit number, and with favorable business conditions we plan to reach around 15% of the market by the end of this year. And in three years they are going to have 20% and this will be an excellent result,” Senior Vice President and General Manager of AGCO in Europe and the Middle East Rob Smith said in an exclusive interview with Interfax-Ukraine.
According to him, in 2016-2017, the market of agricultural machinery in Ukraine tripled, and last year hit a record for the supply of imported equipment during the country’s independence.
“Over 3,500 tractors were brought in. According to our forecasts and expectations, in the coming years the market for foreign brand tractors in Ukraine will increase to 4,000 units. 2018 still has slower sales and demonstrates market stabilization after the peak in 2017, but there are all chances to become the second best year in the history of modern Ukraine,” Smith said.
The vice president of the company said that currently AGCO in Ukraine is represented by its main brands Fendt, GSI, Massey Ferguson and Valtra.
In addition, by the end of 2018, the tracked tractor Fendt 1100 MT will be introduced, and in 2019 the company plans to introduce the Ideal combine harvester on the Ukrainian market.

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ROLLED STEEL MARKET IN UKRAINE EXPANDS BY 11% IN 2018

Ukrainian enterprises in January-May 2018 boosted rolled steel consumption by 10.9% year-over-year, to 1.842 million tonnes (1.661 million tonnes in January-May 2017). In January-May 2018, some 545,800 tonnes of rolled products were imported, which was 29.6% of domestic consumption, the Ukrmetprom Association has said.
In the same period of 2017, imports of rolled steel totaled 453,000 tonnes (27.3%).
“Thus, the share of the import component grew by 20.5% in the five months of 2018 amid an increase in the consumption of rolled metal in the domestic market by 10.9% compared to January-May 2017,” the association said in a press release.
Bars and rods are still prevalent the structure of the imports in the five months compared to flat-rolled products in contrast to the same period in 2017: the share of flat-rolled goods in January-May-2017 was 61.8% versus 47.2% the same period of 2018, while the share of bars and rods was 37% and 49.6%, respectively.
“First and foremost, this is due to the loss of PJSC Yenakiyeve Metallurgical Plant [in Russian-occupied Donbas], and the deficit is offset by imports,” the press release said.
Ukrainian metal companies produced 7.72 million tonnes of rolled metal in the five months of 2018 (105% compared to the same period in 2017, taking into account production in occupied Donbas in January-February-2017, or 111% without taking that territory into account), Ukrmetprom said. Of the output, about 6.43 million tonnes, or 83.2%, was exported, according to the State enterprise Information-Analytic Agency (StateAnalitInform). This roughly corresponds to the same period in 2017, when the share of exports was 83.6% (6.17 million tonnes with total rolled metal production being 7.39 million tonnes).
The share of semi-finished products in export shipments was 42.2%, which also corresponds to the period January-May 2017 (42.1%). The share of flat products (34% and 33.4%, respectively) and bars and rods (23.8% and 24.5%, respectively) are comparable with the same period of 2017.
The main export markets for Ukrainian steel products in January-May 2018, according to StateAnalitInform, were the countries of the European Union (34.8%), Africa (15.8%), other European countries, including Turkey (13.1% ), as well as countries in the Middle East (11.4%).
The main importers of metal products in the five months of 2018 were the CIS (59.6%), Asia (19.1%) and the EU’s 28 member states (15.9%).

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ABB: MARKET FOR ELECTRIC CARS’ SUPERCHARGERS GROWS IN UKRAINE

The active development of sustainable energy creates demand on the introduction of micro-grid systems in Ukraine, and growing popularity of electric cars creates demand on the installation of superchargers. A representative of the company Andriy Panchenko described the new trends at the Swedish-Ukrainian business forum held in Kyiv recently. According to him, the company has already built 25 MW solar power plants under an order of Ukrainian energy companies.
Panchenko told Interfax-Ukraine that ABB on the market of solar power plants offers complex solutions, supplying everything, except solar cell arrays and cables. He estimated ABB’s market share at about 10%.
The representative of the company said that this market is growing, and this year the volume of construction will exceed 30 MW.
With regard to the superchargers, Panchenko said that the company has already installed 15 devices with a capacity of 50 kW, and the largest customer was DTEK. In his opinion, this market will continue to grow rapidly, as Ukraine is now the fifth market in Europe for importing cars, and the number of high-speed charges on the market is still very low. In general, Panchenko said that the ABB business in Ukraine began to grow, and if in 2014 its staff decreased from 200 to 100, now it has about 120 employees.

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SPARKLING WINE PRODUCER ARTWINERY BOOSTS SHARE OF UKRAINIAN SPARKLING WINE MARKET TO 20.6%

The share of Artwinery, a large producer of sparkling wine in Eastern Europe, of the Ukrainian sparkling wine market totaled 20.6% compared with 19.4% in 2016, the company has reported. “The volume of production of sparkling Artvineri over the past year amounted to 10.26 million bottles against 12.3 million bottles in 2016. The average annual volume of export sales of sparkling wines of the company is about 15% of the total figure,” Marketing Director of Artwinery Yevhenia Stadnyk told Interfax-Ukraine.
According to her, EU countries (in particular Germany), the CIS countries (Russia, Azerbaijan) and the countries of Asia are promising directions for the company’s export development.
The marketing director pointed out that the wine materials for the production of sparkling wines come to the enterprise from the wine-growing enterprises of the Odesa, Kherson and Mykolaiv regions. In addition, there are wine materials of the Crimean peninsula of the 2012-2013 harvest in the reserves of the enterprise.
“The entire production cycle is located at a depth of more than 72 meters in underground gypsum tunnels, which keep the temperature and humidity constant all year round. The total area of the underground galleries used by Artwinery is over 25 hectares,” Stadnyk said.
She said that until now, there is no need to count on restoration of the sparkling wine market in Ukraine to the indicators of 2013, when the volume was 69 million bottles. Artwinery seeks to strengthen its positions on the Ukrainian market and further expand export geography.

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