Business news from Ukraine

Kyiv Pasta Factory Launches Production of New Type of Pasta

Kyiv Macaroni Factory LLC has mastered the production of a new type of product – bows – using previously installed equipment that had been idle for a long time, said the company’s owner, Alexander Barsuk.

“One of the most complex elements of pasta is butterflies (bows). Kyiv Pasta Factory has mastered the production of this product. This is not new equipment, although it is from a well-known European manufacturer. Previously, it refused to work, and everything was somehow wrong. They also blamed the flour. But we found better flour and set up production. The first batches already have a guaranteed order,” he wrote on Facebook.

According to the owner of the company, the new product will be packaged in 800-gram packages.

Answering customers’ questions about why the product is not packaged in kilogram packages, he explained that all packs on supermarket shelves should be the same size. The type of pasta – bows – is bulky and does not fit in a standard pack.

Mr. Borsuk added that the company is working on new types of pasta, which it will soon introduce to customers.

According to the website of the Kyiv Pasta Factory, which is part of the Yaroslav Group (Kyiv), it is the largest pasta company in Ukraine. Its products are supplied throughout the country and to neighboring countries.

In 2022, Kyivska Macaroni Factory LLC reduced its net loss to UAH 4.576 million from UAH 8.19 million a year earlier, and its revenue to UAH 103.244 million from UAH 116.906 million.

According to Yaroslav’s website, its production facilities include Yaroslav PE (Kyiv), Promin Factory (Dymer, Kyiv region), Boguslav Clothing Factory (Kyiv region), Steblivska Cotton Spinning and Weaving Factory (Cherkasy region), and Krolevets Clothing Factory (Sumy region).

The main specialization is the production of bed linen, rugs, blankets, mattresses, goods for children, and kitchen textiles.

Yaroslav’s director and owner, Oleksandr Borsuk, previously reported that he annually invests about $1 million in equipment and modernization of production facilities.

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Beer production in Ukraine increased by 112% in first half of year

Beer production in Ukraine in the first six months of this year reached 65.2 million dal, up 112.5% year-on-year, according to the website of the industry organization of brewers Ukrpyvo.

This figure is only 76.9% of the volume of beer production in Ukraine in 2021, the industry association said.

As reported, beer production in Ukraine in 2022 decreased by 27.9% compared to 2021 – to 122.8 million dal.

By the end of 2022, the brewing industry had partially recovered from a 50% drop in production in the first quarter due to the Russian invasion and the shutdown of some breweries. Thus, in the first four months of 2022, the decline amounted to 42.8% compared to the same period in 2021, January-May – 36.4%, January-June – 32%, January-July and January-August – 31.6% each, January-September – 30.5%, January-October – 28.6%, January-November – 28.1%, and 27.9% in the year before last.

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Kokhavynka paper mill maintained production growth by more than 30%

Kokhavyn paper mill (KBF, Lviv region), which produces sanitary and hygienic paper products (TM “Kokhavynka”), in January-June 2023 increased production by 30.3% compared to the first half of 2022 – up to UAH 562.76 million, according to statistics of the association “UkrPapir”.

According to the data provided to the agency “Interfax-Ukraine”, thus, the factory maintains the growth of this indicator more than 30% to the same period last year (at the end of five months it was 32.4%).

In physical terms, production of paper-base for sanitary-hygienic products increased by 2.7% – up to 20.82 thousand tons. Including in June, its output decreased by 4% against June-2022 – to 3.4 thousand tons.

The output of toilet paper in rolls in the first half of the year increased by 3.7% to 67.15 mln pieces. KBF retains the second place in its output after Kiev Paper Mill (120.78 mln pieces).

Kokhava Paper Mill, which has been operating since 1939, produces base paper for sanitary and hygienic goods, as well as toilet paper and paper towels.

The capacity of paper machines is 19 thousand tons per year, processing equipment – 90 million rolls per year.

The factory practically did not stop production since the beginning of Russia’s full-scale aggression in Ukraine.

As reported, KBF in 2023 produced UAH 975.3 million – 44.8% more than a year earlier. Net profit decreased by 12.7% to UAH 52.4m, while revenue increased by 46.5% to UAH 978.9m.

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Kyiv KBC increased its production volume by 13%

The volume of marketable output of Kyiv Cardboard and Paper Mill (Kyiv KBC, Obukhiv, Kyiv region), the leader of the Ukrainian industry by this indicator, amounted to UAH 3 billion 673.5 million in January-June 2023, which is 13.2% more than in the same period of 2022.

According to the statistics of the UkrPapir association provided to Interfax-Ukraine, in physical terms, the mill’s production of corrugated boxes increased by 30.4% to 108.24 million square meters. Cardboard output increased by 16.5% to 81.58 thousand tons, due to a 27.2% increase in production of containerboard to 66.91 thousand tons, while boxboard output decreased by almost 16% to 14.67 thousand tons.

On its Facebook page, the mill also reported that the installation of an automated Versor machine for gluing silicone and tear-off tape to produce a new type of product has been completed at the corrugated packaging production facility. Installation of folding and gluing line equipment is underway to expand production capabilities.

At the same time, according to “UkrPapir”, the production of base paper for sanitary-hygienic products, keeps negative dynamics: in January-June it decreased by 30.5%, to 21.08 thousand tons, while the production of toilet paper in rolls decreased by 29%, to 120.08 million pieces.

Despite the decline in toilet paper production, the mill maintains its leadership in its output in Ukraine. In general, for the first half of the year the main enterprises of the industry in Ukraine produced more than 289 million rolls (6% less).

As previously reported, the mill earlier noted that the market of sanitary-hygienic products in Ukraine has decreased by 18-35%, taking into account the general state of the economy, population reduction.

According to the data of the profile association, received from the main industry enterprises, in January-June 2023 in Ukraine recorded an increase in production of paper and cardboard by 9.8% (260.55 thousand tons), as well as by 18.3% – cardboard boxes (239.31 million square meters).

Kiev KBC is one of the largest enterprises in Europe for the production of cardboard and paper products with a staff of more than 2.5 thousand people.

As reported, in 2022 the mill produced UAH 7 bln 432 mln – 3.5% less than in 2021.

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Wheat production in Ukraine to reach 26.5 mln tons – NASA Harvest

NASA Harvest (Food Security and Agriculture Program) analysts, based on satellite analysis, forecast total wheat production in Ukraine in 2023 marketing year at the level of 25-26.5 million tons, of which 21-22 million tons will be harvested on the territory controlled by Kiev, another 4.1-4.4 million tons – on the temporarily occupied territories, the official website of NASA Harvest reports. According to satellite analysis, wheat yields will average 4.27 tons/ha for the whole of Ukraine, in particular 4.53 tons/ha on the controlled territory and 3.3 tons/ha on the occupied territory.
According to NASA Harvest, wheat acreage for the whole country is estimated to be between 5.8-6.2 million hectares, of which 4.6-4.9 million hectares in the controlled territories, 1.2-1.3 million hectares in the temporarily occupied territories.
“Overall, this year’s wheat production estimate is close to last year’s due to a smaller sown area and higher yields compared to last year, which will be slightly below the five-year (pre-war) average of 27.9 million tons. This assumes that all the wheat sown will be harvested and that satellites cannot provide information on who harvested the wheat and whether Ukraine will benefit economically from its fertile farmland,” NASA Harvest summarized.
Source: https://nasaharvest.org/news/farming-warzone-nasa-harvest-releases-satellite-based-ukraine-wheat-production-estimates

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Ukrainian steelmakers reduced production of total rolled products in January-June

Ukrainian metallurgical enterprises in January-June this year reduced the production of total rolled steel, according to operational data, by 41% compared to the same period last year – to 2.375 million tons.
According to the association “Ukrmetallurgprom” on Saturday, in the first six months of this year, steel production fell by 37.7% compared with January-June 2022 – to 2.829 million tons.
Cast iron production during this period decreased by 37.5% to 2.836 million tons.
As reported, Ukraine in 5M-2023 decreased the production of rolled steel by 47.8% over the same period last year – to 1.982 million tons, steel by 43.7% to 2.392 million tons, and cast iron by 43.9% to 2.350 million tons.
Ukraine in 2022 reduced the production of total rolled products by 72% compared to the previous year – up to 5.350 million tons, steel by 70.7% – to 6.263 million tons, cast iron by 69.8% – to 6.391 million tons.
In 2021, the company produced 21.165 million tons of cast iron (103.6% by 2020), 21.366 million tons of steel (103.6%), 19.079 million tons of rolled steel (103.5%).

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