Nikopol-based seamless stainless steel pipe manufacturer Centravis increased its production to 12.2 thousand tons in 2023, up 12% year-on-year. However, the production situation may deteriorate if the government does not start paying back VAT arrears.
Almost all the products were exported. In total, in 2023, the company exported seamless stainless steel pipes to 38 countries. Most of them were shipped to Germany, Italy, and the United States.
The EU countries were in the highest demand, followed by the US market, and then the Asian and Middle Eastern markets. In particular, Centravis has fulfilled orders for companies from Japan, Singapore, Taiwan, Malaysia, South Korea, Oman, the UAE, etc.
“In 2023, we realized that the war could last for a long time and we must be prepared for it. There is no point in postponing something that will make your product better today. Similarly, you should not refuse to enter new markets or stop working with your team. We can’t just stand still and try to get through these difficult days, because we have no idea what the timeframe of the war is. Therefore, we are moving forward, improving our products, working with new projects and clients. I believe that our team passed the year 2023 with dignity,” said Yuriy Atanasov, CEO of Centravis.
Another important achievement of the past year was the opening of a new production facility in Uzhhorod. It specializes in tool pipes for the world’s leading automotive brands (Volkswagen, Audi, BMW, Chevrolet). The total investment amounted to over UAH 50 million. The new plant employs about 100 people, and in 2024 it is planned to expand and build the second stage.
At the same time, there is a big problem that hinders the company as much as the shelling by Russian troops. It is the VAT refund.
“The state’s debt to the company is over €10 million. It has never been like this in 30 years of operation. We won the courts, but a court decision cannot pay salaries and buy raw materials. I hope this issue will be resolved soon, as it is difficult for us to operate under the double pressure of the war and VAT arrears,” emphasized Yuriy Atanasov.
According to Centravis representatives, in 2023, the company took part in a number of notable projects. These include a project to produce hydrogen-powered cars in the EU, construction of the International Thermonuclear Experimental Reactor (ITER), development of onshore oil and gas wells in the United States, and construction of a new power plant in Alabama (USA). The company also represented the Ukrainian industry at the Adipec international exhibition in Abu Dhabi with its own exposition.
Centravis is currently one of the world’s ten largest producers of seamless stainless steel pipes. The company has production facilities in the cities of Nikopol and Uzhhorod, as well as sales offices in countries such as the United States, Germany, Italy, Switzerland, Poland, and the United Arab Emirates, and cooperates with Benteler Automotive, Buhlmann Group, Webco, and others – with various companies on different continents.
Last year, Centravis was ranked among the top 200 leaders in the Ukrainian economy.
Kokhava Paper Mill (KBF, Lviv region), which produces sanitary paper products, increased its production by 8.7% in January 2014 compared to January 2013, to UAH 102.94 million, according to statistics from Ukrpapir Association.
According to the data provided to Interfax-Ukraine, in physical terms, production of the base paper for sanitary products increased by 1.7% to 3.6 thousand tons.
Last month, production of toilet paper in rolls increased by 12.3% to 12.7 million units. KBF retains the second place in terms of its output after Kyiv pulp and paper mill (21.3 million units).
As reported, in October last year, Kokhava Pulp and Paper Mill commissioned a paper machine with an estimated capacity of 25 thousand tons per year to produce pulp base paper (previously it produced only waste paper-based products), creating up to 200 new jobs.
To organize such production in 2021, the pulp mill attracted a EUR 13.8 million loan from the EBRD.
Operating since 1939, the Kokhava Paper Mill produces the base paper for sanitary and hygiene products, as well as toilet paper and paper towels. Before the new machine was put into operation, the mill had two paper machines with a total capacity of 40 thousand tons of base paper per year.
In 2023, the mill increased its production by 18% compared to 2022, to UAH 1 billion 151.2 million.
Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and part of Metinvest Group, reduced blast furnace coke production by 2.1% year-on-year to 71.32 thousand tons from 72.86 thousand tons in January this year.
According to the company, 71.9 thousand tons of coke were produced in December 2023.
As reported, Zaporozhkoks increased its blast furnace coke output by 16% in 2023 compared to 2022, up to 856.8 thousand tons from 737.4 thousand tons.
“Zaporozhkoks produces about 10% of coke in Ukraine and has a full technological cycle of coke products processing. It also produces coke oven gas and pitch coke.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
PJSC SIC Borshchahivskiy Chemical Pharmaceutical Plant (BCPP, Kyiv) increased production by 17.6% in 2023 compared to 2022, to almost UAH 1.866 billion, but reduced it by 3.3% in physical terms, to 34.8 million packs.
According to the plant’s information disclosure system, the company sold 40.3 million packs last year, which is 7.8% less than a year earlier, while total sales increased by 16.5% to UAH 1.806 billion.
At the same time, 29.4 million packs were sold in the domestic market (9.9% less than a year earlier) for UAH 1.537 billion (an increase of 16.2%).
At the same time, exports of products in 2023 increased by 18.5% in monetary terms to UAH 269 million, while decreasing by 1.7% in physical terms to 10.9 million packs.
BCPP notes that about 52% of the total product range last year was sold outside the country. In particular, 52% of export deliveries were made to neighboring countries, 48% – to Australia, the Middle East, Asia, Europe, North America and the Caribbean.
In 2023, the production nomenclature amounted to about 130 items of medicinal products in nine therapeutic areas, veterinary products, dietary supplements and extracts. In particular, the Company launched seven new products, including respiratory, digestive and metabolic, nervous system, musculoskeletal, antibiotic and dietary supplements.
Capital investments in the company’s own development in 2023 amounted to UAH 64.9 million.
In 2022, BCPP reduced its net profit by 24.8% to UAH 254.275 million. Net profit for 2020 increased by 1.7 times compared to 2019 to UAH 332.847 million.
As of the first quarter of 2023, 31.8% of BCPP shares were owned by the pharmaceutical company PrJSC “Pharmaceutical Firm “Darnitsa” (Kyiv).
According to the Opendatabot system, the ultimate beneficiaries of BCPP are also the beneficiary of the pharmaceutical company “Darnitsa” Hlib Zagoriy, Yevhen Sova and Tetiana Artemenko.
In 2023, the plants of Ostchem, a nitrogen holding company that unites Group DF’s nitrogen business, produced 2.1 million tons of mineral fertilizers, up 19.51% year-on-year.
According to a Group DF press release, Azot, the group’s Cherkasy-based plant, produced 1.56 million tons of mineral fertilizers in 2023, up 39.63% year-on-year, while Rivne Azot produced 528 thousand tons (-10.81%).
Urea, UAN and ammonium nitrate were the key fertilizers produced by Ostchem’s businesses, Group DF said.
According to the group, in 2023, it produced 835.9 thousand tons of ammonium nitrate, up 60.47% year-on-year, UAN – 572.7 thousand tons (+130%), and urea – 447.1 thousand tons (+145%). Production of UAN, a traditionally exported fertilizer produced by Rivne Azot, halved to 102 thousand tons.
“The fertilizer market is recovering, but imports of nitrogen fertilizers, which have increased significantly, do not allow us to fully utilize our plants. Despite the difficult situation in the agricultural sector, forced shutdowns of plants due to the hostilities, still high gas prices and abnormally high volumes of imports to Ukraine at dumping prices, Ostchem started to restore production in 2023. We fully met the demand from farmers even during peak periods,” said Sergiy Pavliuchuk, Production Director of Ostchem’s nitrogen business.
In 2023, Ostchem Holding doubled its production of UAN, the most promising fertilizer in Ukraine, to meet the demand. UAN was ranked second in terms of production, and its share in Ostchem’s product portfolio amounted to 27.3%, according to Group DF.
“It is no secret that we are negotiating with global players to develop several industrial sites. Our strategic plans include the construction of new workshops and enterprises. We are talking about investing in new, energy-efficient fertilizer production facilities and launching new products such as AdBlue, industrial gases, and petrochemicals,” added Pavliuchuk.
Commenting on the state of the domestic fertilizer market in Ukraine, Group DF said that the main feature of 2023 was the critical growth in imports imported at dumping prices. Compared to 2022, imports of mineral fertilizers to Ukraine increased 1.9 times, reaching 1.99 million tons. For example, urea imports increased 3.7 times over the year, reaching 501 thousand tons.
“A huge flow of cheap Belarusian and Russian fertilizers enters Ukraine through two channels: the first is from the former Soviet Union countries friendly to the aggressor. The second new channel is the re-export of Belarusian and Russian fertilizers from the EU. According to Eurostat, the total volume of nitrogen fertilizer imports to the EU increased by 34% in 2022-2023, while Russia accounted for about a third of these imports. Despite the sanctions and the existing embargo, a significant portion of these fertilizers is also entering Ukraine, slowly “killing” the Ukrainian producer and Ukrainian jobs,” emphasized Oleg Arestarkhov, Group DF’s Head of Corporate Communications.
In his opinion, the new trend is driven not only by Russia’s desire to expand its sales markets, but also by its strategic plan to make the EU and Ukraine dependent on its fertilizers.
Unable to compete with cheap imports, many EU companies are shutting down, and Ukrainian chemical companies such as Odesa Port and Sumykhimprom are also idle.
“The US and EU countries have already developed measures to ‘reduce dependence’ on fertilizers, grain and other food products from Russia. Formally, Ukraine has an embargo on imports of Russian and Belarusian fertilizers. However, fertilizers from these countries, as well as countries that buy cheap gas from Russia, continue to be supplied. As a result, our market is flooded with cheap imports, and Ukraine is facing critical dumping. Unfortunately, in 2023, we did not see any clear, tough economic actions by the authorities to protect the Ukrainian market and national producers. Fertilizer imports to the country are growing much faster than domestic production. Domestic production grew by about 20%, while imports grew by almost 100%,” stated Arestarkhov, adding that Ukraine needs to learn to better protect its interests.
Group DF consolidates Dmitry Firtash’s assets in the gas distribution, chemical, titanium and port industries, as well as in agriculture and media.
Ostchem is Group DF’s nitrogen holding company that unites the largest mineral fertilizer producers in Ukraine. It includes Rivne Azot, Cherkasy Azot, as well as Sievierodonetsk Azot and Stirol, which are not operating and are located in the occupied territories.
Cherkasy Azot PrJSC (Cherkasy, Ukraine) is one of the largest Ukrainian chemical companies and has been part of Group DF’s nitrogen business since 2011. The design production capacity of Cherkassy Azot is 962.7 thousand tons of ammonia, 970 thousand tons of ammonium nitrate, 891.6 thousand tons of urea, and 1 million tons of UAN per year.
Rivne Azot is one of the largest Ukrainian chemical companies in Western Ukraine and has been a part of Group DF’s Ostchem nitrogen holding since 2011. Since its acquisition, Firtash has invested over UAH 1.3 billion in Rivne Azot.
In 2023, Ukrzaliznytsia JSC (UZ) built 528 freight cars at its own facilities, which was a record figure for the last five years, the company’s press service said on Thursday.
It is noted that, in particular, 427 fitting platforms were manufactured. The company also started mass production of 50 dump cars and 50 hopper dispensers.
In addition, in 2023, at its own facilities, UZ built a grain carrier adapted for transportation on a 1520 mm gauge with a 1435 mm European gauge conversion. Most of the components and materials used for its construction were produced in Ukraine, the report says.
In 2023, UZ enterprises also increased the production of crushed stone by 33% (to 2.7 million tons) and sleepers by 6% (to 867 thousand units).
The production of reinforced concrete structures increased by 10.5% compared to 2022, to 6,937 thousand cubic meters, which was also a record for the last five years.
Among other things, last year UZ launched 47 new product lines. The company manufactured 37 thousand units of various products: girders and side girders, container stops, brake shoes, shock absorbers for the absorber, aluminum door frames, compressors, and generators for passenger cars. This allowed the company to save about UAH 120 million on external procurement, the company says.
“Plans for 2024 include a 15% increase in the volume of overhauls of locomotives at UZ plants and 8% increase in the volume of electric trains, an increase in crushed stone production through orders from third-party customers, and the development of new products and technologies,” Ukrzaliznytsia said in a statement.
Earlier, UZ announced the launch of a freight car fleet renewal program. The company planned to build 1,496 thousand freight cars in 2022 at its own car repair plants – Panyutyn, Darnytsia and Stryi: 1,446 thousand gondola cars and 50 grain carriers.
It was also reported that on December 28, 2021, the Ministry of Justice registered the order of the Ministry of Infrastructure No. 647, which launched a large-scale program to renew the freight car fleet of Ukraine in the period 2022-2031, introducing a phased limitation of their service life in a loaded state for as long as 10 years and bringing this period to the standard. The service life of gondola cars is reduced from 44 years to 22 years, and that of grain carriers from 45 years to 30 years.
In addition, this initiative envisaged the launch of a railcar construction program at Ukrainian railcar manufacturers. The volume of investments in the railcar industry was estimated at over UAH 120 billion.
