Business news from Ukraine

EUROPEAN INVESTMENT BANK TO GIVE EUR 49 MLN LOAN FOR ENERGY-EFFICIENT MODERNIZATION OF UNIVERSITIES

The European Investment Bank (EIB) has provided EUR 49 million investments to carry out a comprehensive energy-efficient modernisation of the majority of their buildings of six Ukrainian universities under the Ukraine Higher Education project and they will also receive the E5P grant in the amount of EUR 10 million.
“Six Ukrainian universities will carry out a comprehensive energy-efficient modernisation of the majority of their buildings with the support of EUR 49 million investments of the European Investment Bank (EIB) and the E5P grant in the amount of EUR 10 million,” the EIB and the Ministry of Education of Ukraine said in a press release on Tuesday.
Chernihiv Polytechnic National University, Lviv Polytechnic National University, National Technical University Kharkiv Polytechnic Institute, National University Yuri Kondratiuk Poltava Polytechnic, Sumy State University and Vinnytsia National Technical University actively participate in the Phase I of the Ukraine Higher Education Project to improve their teaching and research facilities and dormitories.
“They will soon be joined by eight more higher education establishments, which were selected on a competitive basis to take part in the Phase II of the Project,” the bank and the ministry said in the press release.
The implementation of thermal modernisation works at the Phase I universities is expected to start in the fall of 2022.
The EIB is investing EUR 120 million in a comprehensive thermal refurbishment of six Ukrainian universities in the framework of the Ukraine Higher Education Project, which is an integral part of the joint EIB and EU support provided to Ukraine in the field of energy efficiency. The project is also co-financed by the Nordic Environment Finance Corporation (Nefco) in the amount of EUR 30 million.

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JTI TO INVEST $45 MLN IN MODERNIZATION OF UKRAINIAN FACTORY

JTI Ukraine tobacco company plans to invest $45 million in the expansion and renovation of the production facilities of its factory in Kremenchuk in 2021-2022, General Manager of Japan Tobacco International (JTI) Ukraine Paul Holloway has said in an exclusive interview with Interfax-Ukraine.
“This is the modernization of the entire production complex, and not an investment in a separate production line, as it was the case two years ago. The plans for this year are the expansion of the factory, the construction of a new warehouse, the modernization of the tobacco shop, new production lines, the modernization of buildings, structures, infrastructure and much more,” he said.
According to Holloway, the company intends to increase the export of tobacco products, and make it more efficient. An important factor that influenced the company’s plans was its obtaining the status of an Authorized Economic Operator (AEO), which will reduce customs formalities for the import of raw materials and the export of finished products.
The general manager of the company said that JTI, which received this status for the first time in Ukraine, will have a number of advantages when going through customs clearance in Ukraine, including the opportunity to use a special traffic lane for commercial vehicles.
Holloway said that in 2020, the company paid six times more dividends than in the entire history of JTI’s work in Ukraine, and the investments provided for the development of the factory will not affect the further payment of dividends to shareholders. According to him, the factory in Kremenchuk is an independent center of profit, and it will provide money that it earned earlier for investments.
JTI paid out more than UAH 300 million in dividends to shareholders for 2018-2019 and plans to pay about the same amount for 2020.

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DATAGROUP AND CISCO TO INVEST IN MODERNIZATION OF ALL-UKRAINIAN BACKBONE NETWORK

The national operator Datagroup is investing $20 million in a project to modernize the all-Ukrainian backbone network in partnership with the world leader in production of network equipment Cisco (the United States), the company’s press service said.
Datagroup notes that investments in the project will amount to $20 million, and the project itself will help the company bring the quality of services to a higher level.
At the same time, it is specified that the company carried out thorough preparation for a tender and chose the best world equipment manufacturers to participate in it. Based on the results of the tender, Cisco became the project vendor.
“In 2020, the company’s network traffic grew by 35%. We made a decision on a large-scale network modernization, which will allow us to implement our business strategy. It will also lay the foundation for business growth for 10 years: it will allow us to introduce various innovative services and attract new clients in corporate, public and private sectors,” CEO of Datagroup Mykhailo Shelemba said.
The press release says the total length of the Datagroup high-speed data transmission network is more than 22,000 km: these are long-distance DWDM and MPLS networks, and urban MPLS backbone networks in the major cities of the provider’s presence. The modernization will apply to all levels of the network and will significantly increase its throughput.
Datagroup was founded in 2000. It is one of the largest B2B operators in Ukraine, provides services in more than 90 settlements of the country.
The company provides Internet connection, telephony, television and video surveillance services, as well as a cloud service from Microsoft and a range of cybersecurity services – DataProtect.
Data Group in 2019 increased its net profit by 6.97 times compared to 2018, to UAH 141.764 million.

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UKRAINIAN RDS COMPLETES FIRST STAGE OF MODERNIZATION OF PEIZAZHNA ALLEY IN KYIV

Almost all works were carried out manually, because it is impossible to use heavy equipment at the object, co-owner of the company Yevhen Konovalov told Interfax-Ukraine.
The new alleys were paved with uniform pattern granite tiles and new street light poles with modern LED lamps were installed, the company said.
The stairs, lecture center and art compositions were decorated with lighting.
Also, the retaining wall was reinforced. Benches were installed. New trees and shrubs were planted.
Automatic retractable poles were installed to limit access of vehicles to the alley. In addition, the runoff water system was replaced.
Peizazhna Alley is a landmark in central Kyiv. A view of Podil and the Dnipro River opens from the observation platform, which is located in the Upper City.
The alley was constructed in 1980. Sculptures, art installations and a square appeared there as time went on.
The facility requires an extensive overhaul. The second stage of the modernization starts in the near future and will be completed in 2021.
The project was carried out by Rostdorstroy LLC, a part of the RDS group of road construction companies, which won a tender worth UAH 110 million at the beginning of 2020.
RDS Group is included in the top three road construction companies of Ukraine. It includes Kyivshliakhbud and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
As of July 2020, the company worked in nine regions of Ukraine and had ten production facilities. In particular, it was constructing concrete road N-14 Kropyvnytsky-Mykolaiv, a railway overpass road and a section of the first in Ukraine concrete road within the framework of the overhauls of highway N-31 Dnipro-Reshetylivka in Poltava region. In 2019, the company won a World Bank’s tender for works on first-category highway M-03 Kyiv-Kharkiv-Dovzhansky.
The ultimate beneficial owners of RDS Group are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov.

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MIROPLAST FROM UKRAINE PLANS TO INVEST IN MODERNIZATION

The Miroplast plant (Dnipro), part of the Alef corporation of businessman Vadym Yermolaev and one of the largest producers of PVC window profiles in Eastern Europe, is investing more than UAH 60 million in the modernization of production facilities, planning to upgrade its facilities by the end of 2020.
“As a result, the number of extruders will increase to 31, the monthly production capacity will grow up to 5,870 tonnes of PVC profiles, and the maximum annual capacity will be 70,440 tonnes, which is 30% more than in 2019,” Yermolaev said on his Facebook page.
He said that part of the investments will be committed to modernizing warehouse equipment and improving warehouse logistics in general.
According to information on the company’s website, from 2012 to 2018, the number of extruders increased from 27 to 29, and the maximum monthly capacity – from 4,000 tonnes to 4,500 tonnes.
According to the company’s press service, high-speed extrusion lines for the production of PVC profiles and window sills have been purchased, and the increase in capacity is due to an increase in demand for Ukrainian-made products among domestic and foreign consumers.
Miroplast began its operations in 2006. In 2007, seven extruders with a monthly capacity of 780 tonnes were installed. The company manufactures profile systems for windows and doors under the WDS trademark.

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KOVALSKA INDUSTRIAL CONSTRUCTION GROUP INVESTS IN MODERNIZATION OF PRODUCTION COMPLEX

Kovalska Industrial Construction Group has invested UAH 80 million in the modernization of the production complex of PrJSC TNC Granit (Korosten district of Zhytomyr region), expects to increase the volume of crushed stone production in the quarry by 20%. “TNC Granit annually produces up to 1.4 million cubic meters of crushed stone. Updating the equipment will increase production by 20% … Kovalska allocated UAH 80 million of investments for the modernization of the quarry. The work lasted nine months. During this time the complex was updated by 30-40%,” the company’s press service said.
In particular, according to its data, 17 units of new equipment were put into operation as a result of the upgrade.
“From now on, our capacities allow us not only to provide the Kovalska group of companies with high quality raw materials, but also sell crushed stone to external partners,” Serhiy Pylypenko, the director general of Kovalska, said.
Kovalska has been operating in the construction market of Ukraine since 1956. It is the leading manufacturer of construction materials, the developer and builder of the country. It combines two quarries and nine factories manufacturing construction materials.
In addition, the group includes Kovalska Real Estate, which is engaged in construction of residential objects in Kyiv.

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