Business news from Ukraine

ODESA PORT-SIDE PLANT SEEKS TO TERMINATE CONTRACT WITH LIBERTY GAS

PJSC Odesa Port-Side Plant plans to terminate a contract with Liberty Gas LLC, which won a tender to process gas on a tolling basis at the plant’s facilities, First Deputy Director of Odesa Port-Side Plant Mykola Schurikov has said.
“Liberty Gas has so far paid funds in the amount of $600,000 and UAH 5 million to the plant. Unfortunately, we received a letter from Liberty about the impossibility to fulfill the terms of the contract with the Odesa Port-Side Plant in the future. We begin the procedure for termination of the contract and are preparing a new tender to select a partner to work with the plant,” he wrote on his Facebook page.
According to the letter of Liberty Gas to the Odesa Port-Side Plant, posted by N Schurikov, the limited liability company transferred funds to start the plant and paid an advance for processing services. The company also entered into a contract with Vitol to supply gas and Keytrade AG to ship products.
“Unfortunately, today the global natural gas market has an unjustified increase in the cost of gas, and over the past several weeks the gas price has increased by more than 50%, which has a very negative effect on the economic performance under the contract between our enterprises,” the company said in the letter.
As reported, at the end of July, the Odesa Port-Side Plant, which has been idle since the end of April this year, signed a contract to process gas on the tolling basis at the facilities of the enterprise with Liberty Gas LLC, which won the corresponding tender. The launch was scheduled for the end of September.

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KYIVSPETSTRANS TO BUILD EUR60 MLN WASTE PROCESSING PLANT IN KYIV

PrJSC Kyivspetstrans plans to build a waste treatment plant with a capacity of 450,000 tonnes of garbage a year worth EUR60 million, board chairman of the company Andriy Hruschynsky has said at a press conference. “Kyivspetstrans plans to construct a waste processing plant, which should replace the capacity of solid waste landfill No. 5 to finally close it, reclaim it and put it in order. We focus on a mechanical-biological technology: it’s more modern and environmentally friendly technology than garbage incineration,” he said.
According to the expert, the company plans to attract international companies with experience of similar projects as designers and contractors of construction. Companies from Germany and Poland have already expressed interest.
“We believe that such a project can be realized in two years – the time it takes to develop a project, to order and manufacture equipment,” he said.
He noted that several sites are being considered for the construction of the plant. To finance the project, it is planned to attract loan funds.
“Such projects need credits, and such large infrastructure facilities for the territorial community can be credited at institutions. We focus on the EBRD, as they give the best conditions,” Hruschynsky told Interfax-Ukraine.

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UKRAINIAN FARMAK TO INVEST $10 MLN IN CONSTRUCTION OF PLANT IN UZBEKISTAN

PJSC Farmak (Kyiv), among top three leaders of the pharmaceutical sector of Ukraine, plans to invest $10 million in construction of a pharmaceutical plant in Uzbekistan, the company’s press service has reported. “With a view to the export development, Farmak is considering an investment project with investment of $10 million to localize production in the Republic of Uzbekistan with the launch of production in bulk and a gradual transition to full-cycle production, with the development of technologically more complex products, in particular, radiopaque and biotechnological products,” the press service of the company said, citing Chairperson of the supervisory board Filia Zhebrovska.
At present, Farmak is fourth in sales in the pharmaceutical market of Uzbekistan, the portfolio of products sold in this country totals 120 items.
The company said that the head of the Farmak’s supervisory board and Ambassador of Uzbekistan to Ukraine Alisher Abdualiyev have already agreed on the construction of the plant.
“The new production facility of Farmak will expand the range of medicines that are produced in Uzbekistan, reduce dependence on imported production and create a basis for further expansion of the pharmaceutical cluster,” Abdualiyev said.
Farmak is a member of the Association Manufacturers of Medications of Ukraine (AMMU).

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BASF PLANS TO INCREASE ITS SHARE IN UKRAINIAN MARKET OF PLANT PROTECTION AGENTS

BASF, the world’s leading producer of plant protection agents, plans to increase its share of the Ukrainian market of plant protection agents in 2018 by 1.5-2 percentage points with the acquisition of business shares and assets of the German chemical company Bayer, to 17-17.5%. “We are planning to increase the share of the Ukrainian market of plant protection products by 1.5-2%. At present the company has a 15.5% stake in Ukraine,” Head of the BASF Agribusiness Department in Ukraine, Moldova and the Caucasus Tiberiu Dima said.
He specified that BASF intends to keep the share of the Ukrainian seed market next year at the level of 8-9%. “We also intend in the first ten days of October to officially open a research seed center for working with grains in the village of Tsentralne in Kyiv region, which was purchased from Bayer,” the expert noted.
It is part of a global network of research centers. Already in the near future the center will close the full cycle of seed production: from the creation of new varieties of wheat to the presentation of developments in the demonstration center.
BASF is the world’s leading manufacturer of plant protection products. The product portfolio consists of five segments: chemicals, special products, functional materials and solutions, solutions for agriculture, as well as oil and gas.

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LARGE UKRAINIAN FRUITS AND BERRIES PROCESSOR TO BUILD THIRD PLANT FOR PROCESSING APPLES AND BERRIES IN POLAND

T.B.Fruit, one of the largest processors of fruits and berries in Ukraine, plans in 2019-2020 to start the construction of the third plant for processing apples and berries in Poland with an estimated cost of more than EUR40 million. “We plan to build the third factory in Mazowieckie Voivodeship. We are now at the stage of designing production lines. There is already a ready-made construction project, a building permit has been obtained from state authorities. The planned start of construction is 2019-2020. The third plant will have a capacity of 3,000 tonnes of apples a day with the possibility of increasing up to 4,500 tonnes, and up to 700 tonnes of berries per day,” Director for Production at T.B.Fruit Oleh Mochaliuk told Interfax-Ukraine. Investments in the specified enterprise will roughly amount to more than EUR40 million.
According to Mochaliuk, T.B.Fruit owns two plants in Poland (the first was bought in 2010, the second one in 2012) with a total processing capacity of 3,000 tonnes of apples per day. In addition to apples, strawberry, raspberry, currants, cherry, aronia, red currants, gooseberry are processed at Polish plants. He said juice production and sales in the first half of 2018 decreased by 30-40% compared to the same period in 2017 due to a poor fruit harvest.

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POULTRY PRODUCER AGROMARS WANTS TO BUILD PLANT FOR PROCESSING BIO WASTE

Agromars Complex LLC (Kyiv region) intends to build a plant for processing bio waste, according to the company’s website. “We discussed the design and construction of a bio waste processing plant with the leadership of the German company Kablitz. We agreed to build a plant for processing chicken manure with other waste to generate heat and electricity,” deputy technical director of the company Oleksandr Surmach said.
The company said the plant would process 330 tonnes of manure per day, producing 4.4 MWh of heat and 6.2 MWh of electricity. The preliminary construction period of the facility is about two years. The payback period is three or four years. For the construction of the plant, Agromars plans to raise funds from the European Bank for Reconstruction and Development. “Agromars plans to sell electricity to the state at a feed-in tariff. Today the German company is preparing a commercial offer. In the near future, we will sign a cooperation agreement,” the company said.
Agromars is the second largest producer of poultry in Ukraine (the Havrylivski Kurchata brand), a vertically integrated holding with a closed production cycle.

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