Business news from Ukraine


28 February , 2020  

The RDS road construction group invested almost UAH 170 million in the upgrade of its machinery fleet in 2019 and ready to enter the road construction markets of Poland and Romania, the co-owner of the group, Yuriy Shumakher, has said.
“The acquisition of modern machines, mechanisms and vehicles cost the company UAH 167.16 million. For several years now, we have been investing annually about $8 million in the renewal of our fleet of road machines,” he said in an interview with Interfax-Ukraine.
According to him, in 2019 the company’s fleet was expanded with 114 units of road machines and equipment.
Shumakher said that RDS uses its own funds, funds borrowed from Ukrainian banks and leasing companies to upgrade its fleet. Also, part of the equipment is bought through financing of manufacturing companies such as Wirtgen and Zeppelin.
The co-owner of the group said that RDS purchases mainly foreign equipment from leaders in modern engineering.
“We have ambitions to participate in tenders abroad,” Shumakher said.
According to him, unlike Ukraine, tenders in Europe have very strict criteria and a mandatory requirement, in particular, is experience in the European Union for at least three to five years.
“We participated in tenders in Moldova several times, but having no experience, we lost. Now, we are trying to analyze the market and participate in tenders in Moldova and Romania. We also plan to try to enter the Polish market as a subcontractor,” the RDS representative said.
According to him, one of the options for entering a Ukrainian company working in the field of road construction a foreign market is to buy a company abroad.
Shumakher said that RDS has been participating in international tenders for five years, working at facilities in Ukraine, which are funded by international institutions.
“We are already taking part in tenders in Ukraine for the money of international institutions. Today, a contract has been signed for the construction of the M-03 road for $12 million provided by the World Bank,” he added.
The Ukrainian group of companies RDS includes Kyivshliakhbud and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The company is building concrete road H-14 Kropyvnytsky-Mykolaiv. As part of the reconstruction of the H-31 Dnipro-Reshetylivka highway in Poltava region, RDS is building an overpass over the railway and the section of the first concrete road in Ukraine. In 2019, the company won a World Bank tender for work on the first category highway M-03 Kyiv-Kharkiv-Dovzhansky.
As of January 2020, the company operates in seven regions of Ukraine and has ten production bases.
The ultimate beneficial owners of RDS are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov. The charter capital of the company is UAH 5.13 million.

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