Business news from Ukraine

UKRAINE DECREASES COAL PRODUCTION IN JAN-OCT BY 4%

Coal mining enterprises of Ukraine in January-October 2018 reduced extraction of coal by 4.1% (by 1.189 million tonnes) compared to the same period in 2017, to 27.688 million tonnes.
The Ministry of Energy and Coal Industry told Interfax-Ukraine production of coking coal decreased by 11.7% (by 652,500 tonnes), to 4.908 million tonnes, steam coal by 2.3% % (536,800 tonnes), to 22.779 million tonnes.
In October 2018, production of run-of-mine (ROM) coal grew by 5% compared to the same month in 2017, to 2.839 million tonnes.
Coal mining companies managed by the ministry for the ten months ending October 2018 reduced production by 13.3%, to 3.454 million tonnes, in particular production of coking coal was down by 42.8%, to 436,000 tonnes, steam coal decreased by 6.3%, to 3.018 million tonnes.
The mines of Donetsk region for the ten months of this year provided production of 9.253 million tonnes of coal (2.6% less compared to January-October 2017), Luhansk region some 427,300 tonnes (down by 73.3%), Dnipropetrovsk region some 16.594 million tonnes (1.1% more), Lviv region some 1.324 million tonnes (3.8% up), and Volyn region some 89,400 tonnes (1.9% up).

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UKRNAFTA SEES 5% RISE IN OIL PRODUCTION

PJSC Ukrnafta in January-November 2018 increased production of oil and gas condensate by 5.1% or 65,000 tonnes year-over-year, to 1.324 million tonnes, the company’s press service has reported.
Over the period average daily oil production was 4,000 tonnes (5.1% more than a year ago).
The company recalled that positive dynamics was observed thanks to the resumption of operation at wells at six fields, which Ukrnafta was forced to stop in the second half of 2017, as well as thanks to measures aimed at intensifying production at the existing well stock.
According to the company, gas production in January-November 2018 decreased by 3.1% (by 32 million cubic meters), to 986 million cubic meters, and the production of liquefied gas – by 5.7% (6,000 tonnes), to 100,000 tonnes.
In general, in January-November 2018, Ukrnafta carried out 14 hydraulic fractures, completed the overhaul of 97 wells, and carried out 80 operations to intensify production.
“Thanks to the overhaul, as of the end of November, an additional 51,600 tonnes of oil and condensate were produced, as well as 68.1 million cubic meters of gas. Intensification of operations added 24,100 tonnes of oil and 7.1 million cubic meters of gas,” the company said.
Ukrnafta predicts to increase in annual oil and condensate production by 5% by the end of 2018 compared to the planned figure (1.38 million tonnes), to 1.45 million tonnes. Gas production could grow by 11%, to 1.08 billion cubic meters (the target is 0.97 billion cubic meters, production in 2017 amounted to 1.11 billion cubic meters).
Ukrnafta is the largest oil producing company in the country.
Naftogaz Ukrainy owns 50% plus one share in Ukrnafta and companies associated with the former shareholders in PrivatBank own about 42%.

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UKRAINE SEES DECLINE IN MILK PRODUCTION, BUT MEAT AND EGGS OUTPUT GROWS

The production of milk in Ukraine in January-November 2018 declined by 1.9% compared to the same period in 2017, to 9.457 million tonnes. At the same time, egg production in January-November grew by 3.3% compared to the same period in 2017, to 14.982 billion eggs, the State Statistics Service of Ukraine said.
Production of meat (in live weight) in January-November 2018 grew by 0.8%, to 2.88 million tonnes.
According to earlier statistics reports, milk production in Ukraine in 2017 decreased by 0.5% from 2016, to 10.329 million tonnes, meat (in live weight) by 0.4%, to 3.259 million tonnes. Production of eggs in 2017 rose by 3.2%, to 15.578 billion eggs.

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PHARMACEUTICAL COMPANY FARMAK INVESTS EUR 20 MLN IN NEW TABLET PRODUCTION SITE

PJSC Farmak pharmaceutical company (Kyiv) has opened a new section of tablet production, investment in which amounted to EUR 20 million. Head of the supervisory board of the company Filia Zhebrovska said at the ceremony of opening the site in Kyiv that this project will allow Farmak to double the capacity of production of solid dosage forms to 3 billion tablets per year.
In general, it is planned in 2019 to transfer and master production of about 30 goods at new site TLF-2, including the drugs from the Available Medicines reimbursement program. Zhebrovska noted that the latest technology of pharmaceutical production and the most modern equipment are used on the site. The project has been implemented during two years. Due to the increase in capacity, Farmak will create almost 100 new jobs. “Our state needs investments for economic growth, contributing to the development of production and strengthening Ukraine’s position in the international arena,” she said.
Equipment from the leading European brands Glatt, IMA, Marchesini and others has been installed at Farmak’s new production site, which provides the entire technological cycle of tablet production from accepting and processing raw materials to the final dosage forms.
The opening of the production site brings PJSC Farmak closer to the strategic goal: the increase in exports to 40% by 2023.

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BASF STARTS PRODUCTION OF NEW PRESENT NEW CHEMICAL FERTILIZER

BASF Concern, a leading global chemical company, has started production of innovative fungicide Revysol. According to a press release of the company, first market introductions are expected for the 2019/2020 season, and it would enter the Ukrainian market in 2023-2025.
“BASF has started production of its latest fungicide innovation Revysol at its site in Hannibal. Pending regulatory approval, first market introductions are expected for the 2019/2020 season. With an investment in the double-digit million euro range, BASF has enhanced an existing manufacturing system to produce the new active ingredient,” BASF said in the report.
The company said that Revysol “has the potential of reaching peak sales above EUR 1 billion.” BASF has applied for registration of Revysol in 60 countries across Europe, Asia and the Americas for more than 40 crops.
“The proprietary compound was designed to meet the high level of regulatory standards while demonstrating an outstanding performance and selectivity in a broad range of row and specialty crops. Revysol will be available in customized formulations to farmers across the globe and enable them to better protect their crops under various growing conditions,” the company said.

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SUGAR PRODUCTION IN UKRAINE AS OF DECEMBER 4 AMOUNTES TO 1.5 MLN TONNES

Sugar production in Ukraine as of December 4 amounted to 1.517 million tonnes. According to the Ukrtsukor National Association of Sugar Producers, at present sugar refineries in the country have processed 11.25 million tonnes of sugar beets. As reported, Ukraine started a new sugar making season on August 31.
In 2018, the area under sugar beets was 280,000 hectares, which is 13% less than in 2017.
Ukraine exported 560,400 tonnes of sugar in the 2017/2018 agricultural year (September-August), which is 27.2% less than in the previous agri-year. Sugar production in the 2017/2018 agri-year increased by 6.5% and amounted to 2.14 million tonnes. Some 46 sugar factories were operating during the season.

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