Business news from Ukraine

Ukraine reduced production of scrap by 77%

In January-November this year, enterprises on operations with scrap ferrous metals reduced the procurement of scrap metal by 76.6% compared to the same period last year – to 886.1 thousand tons from 3 million 783.6 thousand tons.
As reported in the operational information of the Ukrainian Association of Secondary Metals (UAVtormet), the export of scrap metal during this period amounted to 42 thousand tons, which is 13 times less compared to 11M2021 (547.5 thousand tons). In this case, the import of scrap was 2.3 thousand tons, compared to 21.3 thousand tons in January-November 2021.
Scrap shipments to the country’s metal companies in 11M-2022 decreased by 72.4% compared to January-November-2021 – to 841.9 thousand tons from 3 million 55.9 thousand tons.
As of December 1, 2022, the level of scrap metal stock at Ukrainian steel mills was estimated at 30-35 thousand tons.

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Lviv Cardboard and Paper Company increased production volume by 50%

LLC “Carton and Paper Company” (Lviv), a major Ukrainian manufacturer of cardboard sleeves and sanitary products in January-November 2022 increased production volume by 50.2% compared to the same period of 2021 – up to 1 billion 076 million UAH.
According to the statistical data of “UkrPapir” association, provided to “Interfax-Ukraine” agency, thus, the company has slightly increased the growth rate of this indicator compared to the same period of the last year (according to 10 months, the increase was 49.4%).
In physical terms, the company has kept the output of base paper for sanitary products almost at last year’s level – 6.42 thousand tons, while increasing the output of toilet paper in rolls by 41% – to 3.7 million pieces.
Production of cardboard products increased insignificantly – to 24.2 thousand tons.
As reported with reference to “UkrPapir” statistics, the mill has continued to work all months from the beginning of this year, reducing the output of paper and paperboard in March (to March 2021), but in April has already gone to a positive trend, which remained in subsequent months.
“Carton and Paper Company” (until 2011 – “Lvivkartonoplast”) produces products and semi-finished products from waste paperboard (cardboard sheets, corners, sleeves), cellulose and recycled waste paper (toilet paper, towels, napkins TM Papero).
In 2021 the company produced UAH 782.7 mln worth of products – 47% more than the year before.

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Ukrainian steelmakers cut production of total rolled products by 70.1%

Ukrainian steelmakers in January-November this year, according to operational data, reduced the production of total rolled steel by 70.1% compared to the same period last year – to 5.242 million tons.
According to the association Ukrmetallurgprom, for eleven months of 2022, steel production fell by 68.6% – to 6.157 million tons, iron – by 68.4%, to 6.144 million tons.
As reported, in 2021, 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%) were produced.

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“Textil-Contact” has opened new production for sewing interior products

Large trade and production group “Textil-Contact” (TC) has opened a new production – sewing of interior products on the first floor of the building where TC’s head showroom in Kiev is located on the second-third floors, the group’s owner Alexander Sokolovsky said.
“Today we open a new project. And it’s again about the production … And although the new production has been working for almost two months, only today we decided to announce the official opening,” – he wrote on Facebook on Thursday.
At the same time Sokolovsky noted that the war has badly affected the sales of the whole “civil” range of the group – not only fabrics for clothing, but also furniture and decorative fabrics, which the company has been selling wholesale, retail and through the online store TK.UA for 27 years.
According to him, at the initiative of the head of the Department of Decor Olena Volosevich, the areas of the closed large Pilates salon were rented, where the factory “TK-Decor & Factory” is located, which is already equipped with necessary modern equipment and can perform tasks of any complexity from mass production to individual orders.
“I see the new project as a full-fledged sewing shop combined with experimental production. But Lena does not agree with me (indeed, as always) and believes that this is already a small factory for sewing interior products. And she asks me convincingly not to call it a workshop anymore, but another factory, the 12th in the family of TC, but still a small one,” – Sokolovsky wrote.
According to the owner of the group, one of the main customers are interior designers, but everyone can use the advice, the selection of fabrics in the wholesale showroom and the help of the seamstresses (of which there are already 11, and soon will be 20).
The new factory produces curtains, curtains, tulle; tablecloths, kitchen sets; decorative pillows and covers; everything for HoReCa; shoppers, bags, interior products.
“We already have orders for Rosetka, Epicenter, Leroy Merlin, OLDL, Prom. ua and several individual orders,” Sokolovsky said.
“We have our own front, an economic front, and we’re holding it…,” he summarized.
“Textil-Contact” is one of the largest trade and production groups in the market of light industry in Ukraine, founded in 1995. At present, it is a holding company, which unites different areas of assets: wholesale and retail trade, import of fabrics, accessories and home textiles, production of fabrics, threads, dry cleaning, as well as tailoring of clothes and overalls (including military uniforms), medical products.

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Krivoy Rog Iron Ore Plant decreased production of marketable iron ore by 28.9%

Krivoy Rog iron ore complex (KZHRK) in January-November this year reduced the production of marketable iron ore underground mining by 28.9% compared to the same period last year – up to 2.804 million tons.
According to the company, in November, the mine “Pokrovskaya” produced 20 thousand tons of iron ore products, “Krivoy Rog” – 27 thousand tons, “Kozatskaya” – 28 thousand tons and “Ternovskaya” – 30 thousand tons.
The total output of the plant last month was 105 thous. tons, while in October – 150 thous. tons, in September – 200 thous. tons, in August – 270 thous. tons, in July – 280 thous. tons.
As reported, KZHRK in 2021 increased the production of iron ore from underground mining by 12.7% compared to 2020 – up to 4.298 million tons.
KZHRK specializes in underground mining of iron ore. KZHRK has four mines: “Pokrovska” (formerly “October”), mine “Krivorizka” (“Rodina”), “Kozatska” (formerly “Gvardeyskaya”) and “Ternovskaya” (formerly the Ordzhonikidze mine, then named after Lenin).
Starmill Limited owns 99.88% of the company.
KZHRK is owned by Metinvest Group and Privat Group. The company’s operational management is carried out by Privat Group.

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Kokhavinsk Paper Mill Increased Production Growth Rate to 44%

In January-October 2022, the Kokhavyn Paper Factory (KPF, Lviv Oblast), which produces hygienic paper products (TM Kokhavinka), produced UAH 783.68 million worth of products – 43.9% more than in the same period of 2021.
According to statistical data of UkrPapir Association, provided to Interfax-Ukraine news agency, thus the mill has slightly increased the growth rate of this indicator compared to the same period last year – for nine months it was 40.8%.
In physical terms, the production of base paper for sanitary products increased by 4% – to 33.8 thousand tons. Production of toilet paper rolls went up by 17.2% up to 108.7 million pieces, which is the second largest after the Kiev KBC (273.2 million pieces).
During this period, the primary enterprises of the industry produced more than 476.5 million paper rolls (-17.4% on January-October 2021).
KBF, which has been operating since 1939, produces base paper for sanitary goods, as well as toilet paper and paper towels. The capacity of the paper machines is 19 thousand tons per year, the processing equipment is 90 million rolls per year.
The factory has practically not stopped production since the beginning of this year.
KBF in 2021, according to UkrPapir, increased production by 13% to 673.7 million hryvnias by 2020.

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