Business news from Ukraine

DNIPROVSKY METALLURGICAL PLANT RESTORES PRODUCTION

PJSC Dniprovsky Metallurgical Plant (DMZ, former Evraz-DMZ), a member of DCH Steel Group, owned by Oleksandr Yaroslavsky, following the launch of blast furnace and rolling shops No. 1 and No. 2 in June of the current year after maintenance works since October 2019, continues to restore and increase the production.
The company told Interfax-Ukraine that the company produced 17,000 tonnes of rolled steel in July, smelted 22,000 tonnes of steel, 20,000 tonnes of cast iron, while in June there were produced 10,000 tonnes of rolled steel, 13,000 tonnes of steel, and 18,000 tonnes of cast iron.
Previously, the company said that the enterprise is reaching the set technical parameters for the implementation of production plans.
The enterprise said in the press-release that representatives of TÜV SÜD company have carried out recertification audits of the quality management system, environmental management system at the DMZ as well as a thorough inspection of hot-rolled steel production control system for the compliance with international standards.
The auditors interacted with the leaders of subdivisions and employees, visited the workshops, the technical control department, and the central plant lab, requested the necessary documentation for each of the directions.
“The plans have been fully implemented within three days. During the final meeting with the working group, the auditors have confirmed that all systems at the enterprise operate according to the standards. They [auditors] will advise issuing DMZ certificates of conformity to the TÜV SÜD standards. Availability of certificates entitles DMZ to ship its products to foreign customers,” reports the press release.
It was informed at the end of May of the current year that DMZ is ready to launch the blast furnace and rolling mills.
DCH’s investment programme for the development of the DCH Steel mining and metals division (DMZ and Sukha Balka Mine) envisages investments of $300 million over the next five years.
The implementation of investment projects was supported by DMZ specialists who carried out necessary maintenance works and launched the plant.
The plant focuses on the processing of steel, cast iron, rolled steel, and its products.
Since 2016, the investment in environmental programmes amounted to UAH 350 million.

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CHEMALLIANCE LAUNCHES LIQUID FERTILIZER PLANT

Chemical Alliance LLC (ChemAlliance) has launched a plant for the production of liquid complex fertilizers with a capacity of 50,000 tonnes per year in Poltava region in the middle of April. According to the company’s press release on Tuesday, April 21, the first batch of finished products have already been produced and shipped to customers. Fertilizers at the Poltava plant are produced using acid synthesis technology. The total capacity of the enterprise is 50,000 tonnes of liquid complex fertilizers per year. The complex produces fertilizers under the BlauPhos trademark.
The company told Interfax-Ukraine that investments in opening the plant in Poltava region amounted to about EUR 2 million.
Chemical Alliance LLC (Poltava) was established in 2010. It is engaged in production and sale of liquid mineral and granular fertilizers.

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KOSTAL GROUP PLANS TO CONSTRUCT SECOND AUTOMOTIVE ELECTRONICS PLANT IN UKRAINE

The second plant for the production of automotive electronics of Kostal Ukraine LLC, a subsidiary of Germany’s Leopold Kostal GmbH & Co, will be constructed in Boryspil district of Kyiv region, the press service of Boryspil district state administration has said.
“Despite quarantine in the country, cooperation with foreign investors continues. Recently, Boryspil district state administration and Kostal Ukraine LLC have signed a memorandum of cooperation and interaction under the project to construct the plant for the production of mechatronic products (automotive electronics) in the territory of Dudari rural council. The main office in Germany confirmed the intention to construct the plant,” the press service said on the website of the district state administration.
There are intentions to create 900 jobs at the plant.
Currently, Kostal Ukraine has a production site of automotive components in Pereiaslav (Kyiv region), established in 2006, where about 1,000 employees are currently working.
KOSTAL Group consists of 31 companies in 17 countries. The main activities are the development and production of technologically advanced electronic and electro-mechanical products for the automotive industry.

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INTERPIPE PLANT BUILDS NEW WAREHOUSE FOR SHIPMENT OF RAILWAY PRODUCTS FOR EXPORT

PJSC Interpipe Nyzhniodniprovsky Pipe Rolling Plant (Dnipro) has built and commissioned a new warehouse at the export site of the company’s wheel-rolling shop, investing $271,000 in the project.
According to the quarterly report of the company, at the beginning of 2020, Interpipe plant provided itself with an additional warehouse for finished products, and a collection point was established for packing additional volumes of wheels in pallets.
“The new storage was organized to reduce the cost of packaging for sending railway wheels for export,” it said.
In addition, the company began using wooden pallets instead of metal cassettes for products that are shipped to Europe by truck, transported by road.
The report also states that in March steel indices in the global markets declined due to a sharp drop in demand. At the same time, the cost of scrap metal HMS 80/20 CFR Turkey fell by $20.7/tonne, or 7.6% compared to the previous month, the cost of square billets FOB Black Sea by $18.1/tonne or 4.7%.
“Most of the traditional trade outlets for steel billets of CIS production were inactive due to blocking and restrictive measures introduced by the governments during the pandemic. The demand was seen mainly in China,” the report said.
The Ukrainian market has also suffered due to protective measures in the fight against coronavirus, in particular, the hryvnia has depreciated by 14.3% since the beginning of March, construction volumes were down. The output of railway wagons also decreased.

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NOVATOR RADIO ENGINEERING PLANT LAUNCHES GAUZE MASKS SEWING

The state-owned enterprise Novator (Khmelnytsky), which is part of Ukroboronprom group of companies, urgently reoriented production and launched the sewing of medical gauze masks for the needs of the state concern, the press service of Ukroboronprom has said.
According to the statement, the company is also preparing to launch production of the first domestic valve respirators FFP3. A new production line is being installed at the enterprise, which will produce up to three million of this special equipment every month.
The enterprise plans to produce 100,000 reusable gauze masks, of which 13,500 have already been sewn and handed over to employees of the Khmelnytsky enterprise (ten masks for one employee and his or her family), some 3,000 masks were transferred to the Krasyliv Aggregate Plant. Requests for the supply of gauze masks to other enterprises of Ukroboronprom are being considered.
In addition, by decision of the trade union committee, the enterprise plans to create a reserve of 30,000 gauze masks.
The company transferred 500 masks to the Department of Labor and Social Protection of Khmelnytsky, some 100 to the bank’s office, which services the Novator enterprise.
The enterprise plans to install a line for sterilization of gauze masks, as well as to strengthen the production of ultraviolet devices, which can safely disinfect air and surfaces in large rooms and in crowded places.
In addition, Director General of Ukroboronprom Aivaras Abromavičius said that Zorya-Mashproekt (Mykolaiv) plans to produce a disinfection solution, and about a dozen more enterprises sew medical masks for their employees.

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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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