Business news from Ukraine


Zaporizhia Iron Ore Plant (Dniprorudne, Zaporizhia region) in January-July this year increased iron ore production by 7.5% compared to the same period last year, to 2.84 million tonnes (in January-July 2020 – some 2.642 million tonnes).
The company told Interfax-Ukraine that during this period, 2.705 million tonnes of products were shipped to consumers. At the same time, 423,000 tonnes of ore were mined in July, and 385,900 tonnes were shipped to consumers.
Zaporizhia Iron Ore Plant sells its products to metallurgical enterprises in Slovakia, the Czech Republic, Austria and Poland, as well as to Zaporizhstal metallurgical plant in Ukraine.
The main shareholders of the plant are Slovak company Minerfin, a.s. with 51.1697%, Zaporizhstal with 29.5193%, and Czech KSK Consulting, a.s. with 19.0632%.

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Snack Production (Dnipro) has completed the purchase of Kherson Fruit and Vegetable Plant LLC, the deal was accompanied by the international investment company Millstone & Co with offices in Ukraine and Poland, the investment company reported on its website on Tuesday.
“Kherson Fruit and Vegetable Plant Kherson is one of the largest private fruit and vegetable factories in Ukraine. Its average annual revenue from product sales is about UAH 60 million. The combine has established sales channels: distribution (more than 15 regular partners in all regions of the country); retail chains (for production products under its own trade marks). It also exports products to 20 countries of the world,” director of Millstone & Co in Ukraine Maksym Shynkarenko is quoted as saying.
The parties did not comment on the financial details of the deal.
According to Millstone & Co, the production area of Kherson Fruit and Vegetable Plant Kherson is 9,530 square meters on the territory of 5.2 hectares. The plant can process 300 tonnes of tomatoes per day, its capacity for sterilization and packaging of tomato paste is 3 tonnes per hour, the bottling of tomato juice into glass containers is 3.5 tonnes per hour, the production of juices and puree is 4-5 tonnes per day.
According to the Unified State Register of Legal Entities and Individual Entrepreneurs, after the purchase of Kherson Fruit and Vegetable Plant, its ultimate beneficiary was Larysa Omelchenko, who indirectly owns the asset through Closed Nondiversified Venture Capital Investment Fund Omelia Invest.
According to Snack Production, the group is engaged in the production of snacks under its own brands and their distribution through a network of 42 branches across Ukraine. It delivers products to the wholesale and retail segments of retail and HoReCa under the TM Khutorok, La Pasta perprimi, Zeffir, Morskiye (Marine), Frumi, Zubby, EVO home, SoHo, Glint, and Zeffir baby.
Millstone & Co is a private investment company providing investment services to clients. It has offices in Warsaw, Krakow and Kyiv.

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Mykolaiv Locomotive Repair Plant has entered into a cooperation agreement with the official representative of the Egyptian National Railways for the modernization of 55 locomotives of the AD Tranz series, the enterprise’s press service said on Facebook.
“The modernization will be carried out both at the facilities of our plant and at the facilities of Egyptian colleagues and partners who own locomotive repair plants in Egypt,” the report said, citing Director of Mykolaiv Locomotive Repair Plant Serhiy Roi.
According to him, a deep modernization of locomotives will be carried out with the installation of new diesel engines, new power and support equipment and microprocessor control systems, which will significantly improve the performance of locomotives and reduce the cost of their service.
“The partnership is planned for a long-term, since the declared number of locomotives in the future can be increased to 200 units,” Roi said.
The agreement, the value of which has not been disclosed, also provides for further maintenance of locomotives, in particular, the creation of a service department in Egypt, where representatives of Mykolaiv Locomotive Repair Plant will carry out engineering work for servicing locomotives.
The report notes that Egyptian locomotives are “younger” than those operated in the post-Soviet space and those the plant previously dealt with – they were produced in 1996-2010.
Mykolaiv Locomotive Repair Plant, established in 2010, specializes in maintenance, minor repairs and overhaul of locomotives, as well as other locomotive parts and assemblies.

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The Austrian HEAD Group has begun construction of a plant for the production of equipment for winter sports on the territory of the industrial park Winter Sport in Vinnytsia, the start of which was postponed a year ago due to the COVID-19 pandemic, the website of Vinnytsia City Council said.
At the same time, it is specified that the commissioning of the new plant, which will be one of the largest plants of the HEAD Group, is scheduled for 2023, it is planned to create at least 1,200 jobs.
As reported, the total investment in the project is EUR 80 million, the area of production facilities for the production of skis, ski boots and bindings is 43,000 square meters.
The total area of the industrial park Winter Sport, where the enterprise will be built, is 25 hectares.

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KPMG Ukraine consulting firm has won the tender for the selection of an advisor for the preparation for privatization and sale of 100% of the charter capital of JSC First Kyiv Machine Building Plant (formerly Plant Bilshovyk, Kyiv), the press service of the State Property Fund of Ukraine (SPF) has told Interfax-Ukraine.
“The winner was KPMG Ukraine. There were three applications in total. KPMG won, as it scored the most points. The agreement with KPMG has already been signed. Documents are being prepared for the approval of the privatization adviser by the Cabinet of Ministers,” the press service told the agency.
As reported, at the end of September 2020, Head of the State Property Fund Dmytro Sennychenko said that Bilshovyk Plant was included in the list of objects for privatization formed by the fund for next year.
According to the information on the SPF’s website, the tender for the selection of a privatization adviser was announced in August this year. At the same time, the tender committee made a number of decisions for the successful privatization of this asset.
“Despite resistance, attempts to alienate property by raider methods and political pressure, we are moving privatization forward. At a transparent tender, an advisor will be selected who will qualitatively prepare the privatization object to attract an investor,” Sennychenko said.

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Cereal Plant, a leading producer of cereals in Ukraine, in January-June 2020 receive EUR 247,000 in net profit compared to EUR 26,000 over the same time in 2019.
According to a reported of Cereal Planet PLС holding on the Warsaw Stock Exchange on August 14, its revenue over the review period doubled to EUR 17.47 million and gross profit increased by 2.3 times, to EUR 3.99 million.
In April-June 2020, Cereal Planet saw EUR 246,000 in net profit against EUR 2,000 in Q2, 2019. Its revenue increased by 2.1 times, to EUR 9.96 million, and gross profit – by 2.3 times, to EUR 2.19 million in Q2, 2020.
Cereal Planet said in its report that the coronavirus (COVID-19) pandemic did not affect the company’s work. In addition, weather conditions were favorable for a good grain harvest, therefore the company expects good supplies of raw materials. The company will also expand sales on international markets and constantly looks for customers all over the world.
According to the report, in January-June 2020 the company saw a 48% rise in exports, to EUR 7.47 million, as compared to H1, 2019. Export accounted for 42% of the total sales. Imports in H1, 2020 increased by 5.9 times, to EUR 1.58 million.
In the first half of 2020, the company increased production of cereals by 1.7 times, to 23,100 tonnes compared to the same time in 2019. Production of peas tripled, to 11,750 tonnes, buckwheat – by 43%, to 4,100 tonnes, bulgur – by 2%, to 2,840 tonnes, millet – by 42%, to 2,390 tonnes, barley groats – by 1.7 times, to 296 tonnes.
In Q2, 2020, Cereal Plant increased cereals production by 1.7 times as compared to April-June 2019, to 10,240 tonnes. Production of peas increased by 2.7 times, to 4,840 tonnes, buckwheat – by 14%, to 1,540 tonnes, millet – by 3.6 times, to 1,160 tonnes, barley groats – by 48%, to 628 tonnes, while bulgur output dropped by 19%, to 1,160 tonnes and flakes production was 60% down, to 169 tonnes.
Cereal Planet produces weight groats for the B2B segment under the Olimp trademark (Bulgur, Ridlana, Mayfayna, Zlatokositsa product lines) and animal feed mixes under the Lyuba Ferma trademark. The company exports groats and cereals to more than 50 countries (China, India, Germany, Italy, the United Arab Emirates, Poland, Turkey, etc.).
According to the group, Cereal Planet accounts for up to 10% of the Ukrainian cereals market. Its monthly output is 4,500 – 5,000 tonnes.
Its owners are Anatoliy Vlasenko and Oleksandr Vlasenko with 33.53% and 29.93%, respectively, as well as Oleksandr Slavhorodsky with 29.93% and Ihor Dobruskin with 5.5%.

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