Business news from Ukraine

ODESA PORT-SIDE PLANT INCREASES CARBAMIDE PRODUCTION BY 82.1% IN 2019

Odesa Port-Side Chemical Plant, which in recent years during the crisis has been working mainly on tolling, in 2019 increased production of carbamide by 82.1%, to 324,600 tonnes, but reduced production of ammonia by 78.7%, to 29,900 tonnes.
“Last year, 2.549 million tonnes of ammonia were exported, of which 18,600 tonnes of own production, in particular 352,300 tonnes of carbamide, of which 288,500 tonnes of own production,” the company reported.
According to the report, 76,800 tonnes of ammonia were shipped to domestic consumers, of which 3,400 tonnes of domestic production, as well as 3,600 tonnes of carbamide.
In accordance with the plant’s report for 2018, some 2.170 million tonnes of ammonia and 178,300 tonnes of carbamide were handled that year.
Odesa Port-Side Chemical Plant manufactures chemical products, as well as transports chemical products to maritime transport. The state, represented by the State Property Fund, owns 99.5667% of the plant’s shares, while 0.0021% is owned by Concorde Capital LLC, other individual shareholders hold 0.4312%.

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ODESA PORT-SIDE PLANT WILL RESUME SALE OF CARBAMIDE

PJSC Odesa Port-Side Chemical Plant, following negotiations with the gas supplier, Agro Gas Trading LLC, has agreed to resume the independent sale of carbamide in the amount of 5,000 tonnes, which will allow it to receive additional technical refurbishment for at least UAH 3-5 million per month, the State Property Fund of Ukraine (SPF) has said.
“The new supervisory board, together with the management of the plant, held talks with the gas supplier, during which the parties achieved significantly better conditions for the plant under the current contract … The price of processing under the contract was also increased,” the press release said.
According to the report, SPF Head Dmytro Sennychenko instructed the supervisory board of the plant no later than mid-January 2020 to announce an open tender for a gas supplier for the enterprise.
He also indicated that preparations for the privatization of the plant are ongoing, as scheduled.
As reported, in early November the SPF appointed deputy head of the SPF Serhiy Ihnatovsky new head of the plant supervisory board. Previously he served as director of the legal department of MES invest Ukraine LLC, Mriya Trading LLC.

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EVA CHAIN TO LAUNCH DISTRIBUTION CENTER IN ODESA

RUSH LLC (Dnipro), the owner of the Eva perfume and cosmetics stores chain in Ukraine, plans to open the fourth distribution center in Odesa in 2021, Executive Director Olha Shevchenko has said in an interview with the Investory News publication.
“In 2020, we plan to increase the number of distribution centers to four. Currently, we are looking for a site in Odesa to launch a retail center in 2021,” Shevchenko said.
According to her, by the end of the year, the company also intends to expand the Eva network in Ukraine to 970 stores, as well as open 180 new outlets in 2020. The cost of opening one store is UAH 1-1.5 million, and the payback period is 2-4 years.
“Our plans are to expand the network to 970 stores by the end of the year. These are 210-212 new stores per year. [For 2020,] the plan is the same as it was for the current year – 180 stores. Mostly these will be western regions, where we are not yet represented as widely as in central and southern regions,” the director said, answering a question about plans for next year.
In addition, the retailer intends to launch a pilot store of a new format in the shopping and entertainment center in Dnipro in December 2019, and in 2020 – five more such stores in Kyiv and other cities.
“We have launched a fundamentally new format in test mode, whose working name is Eva Beauty so far. We will pay more attention to beauty categories. But home goods and household chemicals will not be presented there at all. This concept is designed for shopping centers, although it has the right to live in street retail,” Shevchenko added.
The company plans next year to launch its own courier delivery service in Kyiv, as well as increase the number of points of delivery of goods with online shopping.
According to Shevchenko, investments in the development of the Eva network in 2019 amounted to about UAH 400 million, half of which was invested in logistics and the development of e-commerce. At the same time, in 2016-2018, investments in the network amounted to UAH 800 million.
“The main area of investment [next year] will be the development of information technology, e-commerce and logistics,” the director said.

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GERMAN CARRIER FLIXBUS WILL LAUNCH BUS ROUTE FROM ODESA TO CZECH REPUBLIC

The German low cost bus carrier FlixBus has started cooperation with the Ukrainian company Regabus, launching trips from Odesa via Prague to Plzen (the Czech Republic). According to FlixBus Director for Poland and Ukraine Michal Leman, the trips will be operated by branded buses in a branded green livery.
“Regabus has been on the market for 25 years. We specialize in transportation between the Czech Republic and Ukraine. We were the first to support the standards that FlixBus represents – Euro6 buses,” a Regabus representative commented on the start of cooperation with FlixBus.
The launch of the new route is scheduled for December 11, 2019. Buses will run five times a week and ride through Uman, Vinnytsia, Khmelnytsky, Ternopil, and Lviv. In addition, there will be stops in Krakow (Poland), Olomouc and Brno (the Czech Republic).
Leman also said that in 2020 the company plans to increase the number of routes to Poland, Germany, the Czech Republic and Hungary, as well as open new routes to southern Europe and the Baltic countries.
FlixBus is a German company developing bus transportation in Europe and the United States, founded in 2013.

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UKRAINIAN MOTOR SICH AIRLINE CANCELS MOST FLIGHTS FROM KYIV TO ODESA AND LVIV

Motor Sich airline cancels most flights from Kyiv to Odesa and Lviv, focusing on flights from Zaporizhia to Kyiv and Minsk (Belarus).
According to the airline’s Facebook page, flights to Kyiv will be operated twice a day, to Minsk four times a week.
The airline said flights from Kyiv to Odesa and Lviv were canceled from November 9 to December 20. At the same time, the number of flights from Zaporizhia to Kyiv and Minsk doubles.
Motor Sich airline is a structural subdivision of PJSC Motor Sich (Zaporizhia), an enterprise developing, manufacturing, repairing and servicing aircraft gas turbine engines for airplanes and helicopters, as well as industrial gas turbine units.
Currently, the airline operates a fleet of nine aircraft, carrying out regular passenger international and domestic flights, passenger and cargo charter flights, as well as special flights that support the operations of the main company.
The airline’s base airport is Zaporizhia International Airport.

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ODESA SEAPORT SEES 17.5% RISE IN CARGO HANDLING

The Odesa seaport in January-September 2019 handled 18.152 million tonnes of cargo, which is 17.5% more than a year ago.
According to the Ukrainian Sea Ports Authority, over the period the port increased handling of exported cargo by 20%, to 13.375 million tonnes and imported cargo – by 12.7%, to 3.669 million tonnes, and coastal cargo 3.3 times, to 172,300 tonnes. Transit cargo transshipment fell by 6.2%, to 934,100 tonnes.
According to the types of cargo, the port in January-September 2019 increased the transshipment of liquid cargo by 16.7%, to 1.262 million tonnes, increased the transshipment of dry bulk cargo by 27.6%, to 7.51 million tonnes, and increased the transshipment of packaged goods by 10.6%, to 9.379 million tonnes.
Container handling amounted to 470,857 TEU (a rise of 10.8% year-over-year).
Odesa port is located on an area of 109.5 hectares.
The port accepts vessels with lengths of up to 270 meters and maximum draughts of 13 meters. The total length of the port’s berths exceeds 8 kilometers.

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