Business news from Ukraine

CORTEVA AGRISCIENCE OPENS DIRECT EXPORT SUPPLY OF SEEDS FROM UKRAINE

The production seed complex of the international agricultural company Corteva Agriscience, which is located in the village of Stasi (Poltava region), has carried out the first export of seeds directly to Agrodairy, one of the largest agricultural companies in Azerbaijan.
According to a company press release, exporting finished products directly to a foreign producer is the first experience and, in the future, a new direction for the seed complex in Ukraine, which since its founding in 2013 has been focused on meeting the local needs of Ukrainian producers and the internal needs of the company.
“Until that time, seeds were exported internally to Corteva Agriscience European production sites, mainly to Romania and Italy, for further processing, packaging and sales by local teams,” the company explained.
Corteva plans to expand exports from Ukraine to other countries. In the future, the company also plans to export seeds to Kazakhstan, Uzbekistan and Kyrgyzstan, and after introducing Ukraine in the list of countries from which it is allowed to import seeds to the European Union, to supply seeds to Europe.
Corteva Agriscience is a global agricultural company that offers farmers comprehensive solutions to maximize yields. The company has more than 150 research facilities and more than 65 active substances in the portfolio.
Corteva Agriscience in 2019 completed the separation from DowDuPont. Corteva Agriscience has been listed on the New York Stock Exchange since June 2019 under the symbol CTVA.

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OFFICE SUPPLY IN LVIV DOUBLES IN 2 YEARS

The new supply of offices in Lviv to be commissioned in 2019-2021 will be 176,100 square meters, which is almost comparable to the current offer, UTG consulting company (Kyiv) has told Interfax-Ukraine. “By mid-2019, the growing demand for office space, triggered mainly by favorable conditions for the development of the IT sector, led to a shortage of quality space in the market and, as a consequence, to a decrease in vacancy to 2.2%, an increase in rental rates and a surge in developer activity,” UTG analyst Oksana Havrylevych said.
According to her, office premises with a leased area of 56,400 square meters are expected to be commissioned in 2019 (33.6% of A class, 66.4% of B class), 31,500 square meters in 2020, and 88,200 square meters in 2021.
“With the timely commissioning of the declared facilities by the end of 2021, the total leased office space will be about 378,000 square meters, which corresponds to 500.8 square meters per 1,000 citizens, which may bring the Lviv office market to the phase of oversupply,” she said.

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OFFICE SUPPLY IN LVIV COULD DOUBLE IN TWO YEARS – EXPERT

The new supply of offices in Lviv to be commissioned in 2019-2021 will be 176,100 square meters, which is almost comparable to the current offer, UTG consulting company (Kyiv) has told Interfax-Ukraine. “By mid-2019, the growing demand for office space, triggered mainly by favorable conditions for the development of the IT sector, led to a shortage of quality space in the market and, as a consequence, to a decrease in vacancy to 2.2%, an increase in rental rates and a surge in developer activity,” UTG analyst Oksana Havrylevych said.
According to her, office premises with a leased area of 56,400 square meters are expected to be commissioned in 2019 (33.6% of A class, 66.4% of B class), 31,500 square meters in 2020, and 88,200 square meters in 2021.
“With the timely commissioning of the declared facilities by the end of 2021, the total leased office space will be about 378,000 square meters, which corresponds to 500.8 square meters per 1,000 citizens, which may bring the Lviv office market to the phase of oversupply,” she said.

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OLKOM PLANS TO SUPPLY FIRST BATCH OF GOODS TO POLAND

The Olkom Group plans in autumn 2019 to supply a first batch of goods (margarine spread) to Poland, Board Chairman of PrJSC Kyiv Margarine Plant, which is part of the group, Yuriy Yevenko has said.
“We will start trial deliveries to Europe this season – in September. Now we are negotiating with one Polish company. However, they want products under their own trademark, so we will not export under our own trademark yet. The volume of the first delivery is 40 tonnes: this is enough so that they put the products on the shelves of supermarkets. We plan to increase the share of direct exports to 10% of the total production within three to five years,” Yevenko told Interfax-Ukraine.
According to him, the company increased production by 75% in January-March 2019 (mainly thanks to b2b products), and by the end of the year it plans to double production in monetary terms.
“Last year we earned about UAH 600 million of revenue, and this year we set a goal to earn UAH 1.2 billion,” he said.
He added that in 2018, the company produced about 40,000 tonnes of products, of which 23,000 tonnes were tolling services for oil refining.
Over 2018-2019, company has invested about $1 million in boosting the production capacity, and is currently in talks with the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and two investment funds.
At the same time, according to Yevenko, in three to five years, Olkom should complete the repayment on loans attracted about 10 years ago and consider expanding production outside Kyiv, but the company does not intend to leave the site in Kyiv.

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BOEING WILL SUPPLY COMPONENTS FOR UKRAINE’S REGIONAL AIRCRAFT

America’s Boeing will supply components for the family of Ukraine’s regional new generation An-148/158/178 planes developed and produced by Ukraine’s state-owned state Antonov concern based in Kyiv. At Farnborough Airshow 2018, Antonov and a division of Boeing – Aviall Services, Inc. – signed a general terms agreement for cooperation in the production of the modernized An-148, An-158, An-178 aircraft, the family of which will be designated as “An-1X8 NEXT,” Antonov said on Facebook.
“Within the framework of this cooperation, Aviall Services, Inc. will ensure the procurement and delivery of a wide range of components for the serial production of these aircraft and the provision of their post-sales support,” the post says. “As a result of the agreement with Aviall, Antonov has a reliable partner, which will become an important integrator in the process of acquiring a number of western-made components within the import substitution program, including the launch of the serial production of the newest An-type aircraft and post-sales support,” the post says, quoting Antonov President Oleksandr Donets.
The An-178 is being created to replace the An-12, according to experts, who say it may become a modern replacement for the French-German C-160. The aircraft has a modified fuselage shape, a ramp for loading and unloading oversized cargo and is capable of carrying up to 18 tonnes of cargo, including heavy-duty sea containers.
About 200 companies from 15 countries are involved in production cooperation under the An-178 program. Antonov is promoting the An-178 program, including in the Middle East and Central Asia. The UAE, China and Azerbaijan have already shown interest in the new Ukrainian transport carrier. The debut show of the An-178 was held at Le Bourget 2015 (Paris, France), where the new Ukrainian carrier became one of the main events, as well as at the regional Dubai Air Show 2015 (UAE), where it was showcased. According to the sources of the Kyiv-based Interfax-Ukraine news agency, Antonov is also negotiating the joint development of the An-178 program with European members of NATO.
State Enterprise Antonov is a leading Ukrainian developer and manufacturer of aircraft equipment, a recognized world leader in the manufacture of transport aircraft. Under a government decision, the enterprise in 2015 was incorporated in state-owned Ukroboronprom Concern.
Farnborough is one of the largest and most prestigious world specialized exhibitions of civil and military aerospace products. According to organizers, more than 15,00 exhibitors from 52 countries are showcased at Farnborough 2018, which is taking place in the suburbs of London on July 16-22.
Ukraine’s new transport An-178 with a payload capacity of 18 tonnes is demonstrated at the air show.

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