Business news from Ukraine

NEW SUPPLY ON WAREHOUSE MARKET IN UKRAINE WILL EXCEED 360,000 SQ M

The volume of new supply on the warehouse and logistics real estate market in Ukraine in 2021-2022 will amount to 364,000 sq m, while about 200,000 square meters is to be commissioned in the market of Lviv and the region, according to a study by Alterra Group.
“The leader is Lviv, where it is planned to put into operation about 200,000 square meters. In Kyiv, it is planned to introduce those projects that were predicted back in 2019 and 2020. In the regions, most of the premises planned for commissioning by developers are occupied by post offices and logistics companies,” Dmytro Kovalchuk, the co-owner of Alterra Group, said during the web conference on the analytics of the warehouse real estate market.
So, in Kyiv, the volume of new supply in 2021-2022 will amount to 71,400 square meters, among the planned projects, in particular, are the warehouse FM Logistic (17,000 sq m), Sun Factory 2 (23,400 sq m), Makarovsky of ADG developer (15,000 sq m).
Among the objects in Lviv are the expansion of the Protec warehouse in Zymova Voda by 40,000 sq m, the warehouse Lvivsilmash (42,200 sq m), a project from Galileo Logistic (45,000 sq m), Port Lviv Logistic Center (40,000 sq m).
According to the company, postal operators will continue to actively develop, the total construction volume of which will be about 158,000 square meters. Among the projects announced in 2021 is the expansion of the Nova Poshta network in Dnipro, Odesa, Kyiv with a total area of projects of 37,000 square meters, the construction of Ukrposhta logistics terminals in Kyiv, Kharkiv, Lviv, Dnipro and Odesa (22,000 sq m each), the expansion of the distribution center Mist Express in Lviv to 11,000 sq m.
Alterra Group is engaged in complex services for commercial real estate, development and consulting. The company’s portfolio includes 31 projects with a total area of 117,500 square meters.

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MHP INTENDS TO LEASE DRAGON CAPITAL’S ARCTICA WAREHOUSE COMPLEX NEAR KYIV

The purpose of the planned lease of the Arctica warehouse complex in the village of Sofiyivska Borschahivka near Kyiv by PJSC Myronivsky Hliboproduct (MHP) from the Dragon Capital group of companies is to store MHP products, the press service of the company has told Interfax-Ukraine.
“MHP does not buy the Arctica warehouse complex owned by Dragon Capital, but leases it. Ukrainian legislation requires permission from the Antimonopoly Committee of Ukraine to be obtained for lease as well,” MHP said, commenting on the consideration of the concentration case started on January 11 by the committee.
MHP is the largest chicken producer in Ukraine.
At the end of 2020, the supervisory board of MHP made a decision to establish MHP Logistics.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk

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GROUP DF OPENS AGRICULTURAL WHOLESALE AND RETAIL WAREHOUSE STORE IN MYKOLAIV

The distribution chain UkrAgro NPK and Nika-Tera sea terminal (Mykolaiv), both are parts of Group DF, have jointly opened the first agricultural supermarket – a wholesale and retail warehouse store of agricultural products in the territory of the port.
Group DF said in a press release on Friday, July 31, that the outlet is fully equipped for reception, storage, packing and shipment of goods. Its targeted audience includes customers of the port and farmers from Mykolaiv and Odesa regions.
“At the beginning, the assortment of products includes various types of nitrogenous and mixed fertilizers that fit various types of package. We plan to gradually extend the assortment by seeds, plant protection agents, and other chemicals. In future we will sell other goods and services that are necessary for farmers, agricultural producers, traders,” Director General of UkrAgro NPK Volodymyr Dovbnia said.
The new outlet de jure is an official representative office of PJSC UkrAgro NPK.
UkrAgro NPK is a large chain of warehouses selling mineral fertilizers in Ukraine. It has been a part of Group DF since 2012.

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INTERPIPE PLANT BUILDS NEW WAREHOUSE FOR SHIPMENT OF RAILWAY PRODUCTS FOR EXPORT

PJSC Interpipe Nyzhniodniprovsky Pipe Rolling Plant (Dnipro) has built and commissioned a new warehouse at the export site of the company’s wheel-rolling shop, investing $271,000 in the project.
According to the quarterly report of the company, at the beginning of 2020, Interpipe plant provided itself with an additional warehouse for finished products, and a collection point was established for packing additional volumes of wheels in pallets.
“The new storage was organized to reduce the cost of packaging for sending railway wheels for export,” it said.
In addition, the company began using wooden pallets instead of metal cassettes for products that are shipped to Europe by truck, transported by road.
The report also states that in March steel indices in the global markets declined due to a sharp drop in demand. At the same time, the cost of scrap metal HMS 80/20 CFR Turkey fell by $20.7/tonne, or 7.6% compared to the previous month, the cost of square billets FOB Black Sea by $18.1/tonne or 4.7%.
“Most of the traditional trade outlets for steel billets of CIS production were inactive due to blocking and restrictive measures introduced by the governments during the pandemic. The demand was seen mainly in China,” the report said.
The Ukrainian market has also suffered due to protective measures in the fight against coronavirus, in particular, the hryvnia has depreciated by 14.3% since the beginning of March, construction volumes were down. The output of railway wagons also decreased.

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LLENTAB GROUP FROM SWEDEN BUILDS WAREHOUSE IN KYIV REGION

Llentab Group of Companies (Sweden), designer and manufacturer of multifunctional steel buildings, has completed building of the warehouse premises with a total area of 5,500 square meters in town of Baryshivka in Kyiv region. As the company reported on its website, the premises was built for the Dutch HatchTech incubation equipment producer. The warehouse is equipped with gates and reloading platforms with dock shelters.
The Llentab Group designs, manufactures and markets multifunctional steel buildings for a wide range of industries and purposes.
The parent company Llentab AB is headquartered in Kungshamn, Sweden. Llentab is currently present in seven European countries. LLENTAB operates in Sweden, Norway, Germany, Poland, the Czech Republic, Slovakia and Ukraine. Kyiv-based Llentab LLC was created in 2006.

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SUPERMARKET NOVUS OPENS 7,000 SQ M WAREHOUSE NEAR KYIV

Novus Ukraine LLC (Kyiv), the managing company of the network of Novus hyper- and supermarkets and Novus Express convenience stores in Ukraine, at the end of 2018 opened an A class logistics center of 7,000 square meters in the village of Sofiyevska Borschahivka near Kyiv. According to the press service of the retailer, the new warehouse will allow increasing centralization of supplies to the stores of the network, as well as freight turnover of its own logistics by 30%. The facility will serve Novus stores in Kyiv region, as well as wholesale buyers. The delivery of goods from the warehouse to the network stores will be carried out by the contractor.
According to the Novus website, as of January 14, 2018 the network in Ukraine included 43 stores. The overwhelming majority of objects operates in Kyiv and Kyiv region – 34 outlets. In 2018, the retailer opened five new stores: four in Kyiv, and one in Irpin.
As reported, at the end of 2017, the EBRD opened a credit line of up to $25 million to Novus Ukraine for a period of seven years to support the expansion of the supermarket chain and the construction of a logistics center in Kyiv region.
Novus Ukraine LLC was established in 2008. The same year the first Novus supermarket was opened in the country.

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