Business news from Ukraine

KORMOTECH CREATES STOCKS OF PRODUCTS IN EU

A large Ukrainian manufacturer of feed for cats and dogs, Kormotech LLC (Prylbychi village, Lviv region), has accumulated stocks of finished products in Poland for four weeks of work, and also signed contracts for feed production in the EU in case its factories stop in Ukraine.
Such measures allow the company to guarantee the continuity of product supplies to European partners in the context of the war in Ukraine, its CEO Rostyslav Vovk said at the Forbes online conference Building Together on Friday.
According to the head, Kormotech opened a logistics center in Poland, where it keeps a stock of products corresponding to four weeks of operation of the company’s two factories located in the western regions of Ukraine – the production time and delivery to a European buyer under normal conditions. This allows “covering” orders from the EU with finished products for a month, while the company solves possible problems with production or logistics.
Vovk also emphasized that his company can guarantee the supply of dry pet food to Europeans from its factories in Ukraine even if production in the country stops due to factors caused by the Russian invasion. To do this, at the beginning of the war, Kormotech signed an agreement with its European partners for production of feed under the Kormotech brand at third-party enterprises in the EU.
“We gave our partners two options: we will work in Ukraine until the very end. As long as we can produce feed in Ukraine, we will produce it. If we have any difficulties or problems, you will receive a similar product from our European partners next month” Vovk said.
He clarified that doing business in Europe usually does not bring super profits, but it also allows for stable development over a long period.
“If you are planning to develop your business in Europe, you need to be clear that this is a long-term business – it can take months or years to sign a contract, and there are no super profits if you do not have a unique or monopoly product. On the other hand, you have a guarantee for many years that you will gradually grow and be able to plan your business processes,” the CEO of Kormotech said.
Kormotech LLC is a leading Ukrainian manufacturer of feed for cats and dogs. The company exports products to 32 countries, including the USA, UK, Germany, France, Finland, Sweden, the Netherlands, Spain, Italy, Poland, Turkey, Iran and Chile.

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VOLUME OF CONSTRUCTION PRODUCTS PRODUCED BY TYPE IN OF JAN 2022 (MLN UAH)

Volume of construction products produced by type in of Jan 2022 (mln UAH)

SSC of Ukraine

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FIRST OFFICIAL BATCH OF APPLE PRODUCTS ARRIVE IN UKRAINE

The first official batch of Apple products – more than 8,000 Iphone 13 smartphones – arrived at the Boryspil airport on October 9, the State Customs Service of Ukraine said on its Facebook page.
“In total, more than 8,000 smartphones of the Iphone 13 line with a declared value of more than $7.5 million arrived in Ukraine. The State Customs Service of Ukraine has begun customs clearance of goods,” the post says.
Earlier it was reported that on June 30, Apple opened an official office in Ukraine. Also, Apple will deliver the entire line of its products and open a service point for servicing its products.

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UKRAINE RAISES OUTPUT OF ROLLED PRODUCTS BY 6%

Ukrainian metallurgical enterprises in January-August this year increased production of general rolled products, according to recent data, by 5.9% compared to the same period last year, to 12.999 million tonnes.
According to the Ukrmetalurgprom association on Thursday, over the eight months steel production increased by 6.7%, to 14.596 million tonnes, and cast iron – by 7%, to 14.503 million tonnes.
In August, 1.673 million tonnes of rolled products, 1.864 million tonnes of steel, and 1.852 million tonnes of cast iron were produced, while in the previous month – 1.723 million tonnes of rolled products, 1.876 million tonnes of steel, and 1.857 million tonnes of cast iron.

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UKRAINE APPROVES BILL ON STATE CONTROL OF PRODUCTS WITH GMOS

The Cabinet of Ministers has supported the submission to the Verkhovna Rada of a draft law on state regulation of genetic engineering activities and control over the circulation of products containing genetically modified organisms (GMO), this initiative is conducting a comprehensive review of the existing legislation in the field of handling GMO products, and also allows implementing EU regulations in force in the Ukrainian legislation.
The government made the corresponding decision without discussion at a meeting on August 4.
“Imperfect legal regulation of GMO handling makes it impossible to effectively control the circulation of GMO products and creates conditions for the illegal use of unregistered GMO products. Thus, state regulation in the field of GMO handling should be revised, modernized and brought in line with EU legislation,” an explanatory note to the document reads.
This bill provides for the delineation of powers of the authorities to eliminate duplication of functions in the field of GMO circulation, improvement of the system for assessing the risks of the impact of GMOs on human health and the environment, the introduction of European mechanisms for state registration and labeling of products with GMOs, strengthening state control in the sphere of handling GMOs.
The bill introduces a new type of permits – “permits for the import of unregistered GMOs for carrying out genetic engineering activities in a closed system” with a gradation of the levels of risks they create from 1 to 4.
It is assumed that this bill will regulate the creation, labeling and use of GMOs and genetically modified products, control of compliance with legislation in this industry. In addition, the document prohibits the circulation of food products containing GMOs (or produced with their use) prior to the state registration of the corresponding source of origin of GMOs.

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ARCELORMITTAL REDUCES OUTPUT OF ROLLED PRODUCTS IN UKRAINE IN JAN-JUNE

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in January-June 2021 reduced the output of general rolled products, according to operational data, by 2.1% year-over-year, to 2.3 million tonnes.

A representative of the company told Interfax-Ukraine that steel production during this period increased by 1.4%, to 2.45 million tonnes, cast iron by 10.4%, to 2,790 tonnes. At the same time, sinter production increased by 7.6%, to 4.95 million tonnes.

In June, about 390,000 tonnes of rolled products, some 420,000 tonnes of steel, some 470,000 tonnes of cast iron, some 880,000 tonnes of sinter were produced.

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