MOST PROMISING Companies of Ukraine with Export Potential

#12-13 March 27, 2017 Published since 1992 EXPORT STRATEGY THE POINT OF VIEW OF THE BUSINESS Nataliya Mykolska, Deputy Minister of Economic Development and Trade of Ukraine — on the National Export Strategy of the country

WORLD’S BEST GRAIN OKKO Agrotrade is planning to export 70% of grain purchased from Ukrainian farmers business-journal.com.ua

MOST PROMISING companies of Ukraine with export potential

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Cover_English.indd 1-3 25.03.17 02:27 .Б ИЗНЕС ONLINE MAGAZINE BUSSINESS https://business-journal.com.ua

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ur businessmen have been facing new challenges on a The Ultimate O daily basis, and their task is to find appropriate solutions. To lend them a helping hand, we have decided Goal to issue a special ‘100 Most Promising Companies of Ukraine with Export Potential’ edition. Initially, upon the project launching, our goal was to create a communication bridge to attract investment in Ukraine. To show the potential of our ‘new economy’. We have deliberately embarked on such a limitation to demonstrate the evolution of national entrepreneurship — from the exploitation of the subsoil (‘fossil capitalism’) to an innovative eco-capitalism, focusing on the manufacturing of higher value-added goods. But during the three-month project preparation, thanks to the Ministry of Economic Development and Trade and the Export Promotion Office, our project has evolved into a major movement at the state level to advance Ukrainian goods into Viacheslav Myronenko, international markets, becoming a new BUSINESS Magazine Editor in Chief instrument for increasing the capitalization of Ukrainian companies and the awareness of Ukrainian products in international markets. We have deliberately entered into this project to show alternative Ukraine as a territory of sustainability and dynamic economic development, where transparency, reliability and responsibility in business are fundamental values. And to show our alternative economy as an agent of the new Eco-Industrial Age. Some could say that this list is rather arbitrary. Yes, maybe it is. But in this case, the trend is more important. We have tried as much as possible to put many criteria and limitations in order to level the human factor and to show the companies Ukraine would soon be proud of and thus expand the list of national brands, associated with Ukraine and its economic, cultural and innovative potential. Listed Ukrainian companies have already had successful export experience and possess a wide range of indispensable ‘hard skills’ to bring the nutritional quality and healthfulness of Ukrainian products and usefulness of Ukrainian services in such a way as to create the ‘win-win’ situation for their business and their customers. They can seek alternatives and develop innovative strategies, while always evaluating the financial implications. Our goal is to tell it as many people as we can and to encourage foreign investment in the country.

Q_1259_03.indd 3 25.03.2017 01:21:36 Соntents .Б ИЗНЕС

The editor’s word ...... 3 The Ukrainian group of companies Published from 01.12.92 MAIS is in the lead among the producers Registration certificate: KV #21581-11481ПР dated Stress: Ukraine diversifies its foreign 08.09.15 of corn seeds, producingnatural apple markets ...... 6 Publisher: JSC “Blitz-inform”, Kyiv-156, Kioto str., 25 juices and expanding the nut Founder: Natalia Melnychuk Person: Natalya Mykolska, Deputy Minister production ...... 36 President of PJSC “Blitz-Inform”: Alexey Usenko of Economic Development and Trade of Why the Astarta Agroindustrial Holding and General Director of Publishers “Blitz-Inform”: Ukraine — Trade Representative of Ukraine: the KM Core IT-company have set up Agro Vladimir Chepovoy ([email protected]), “We are becoming full-fledged participants in Core joint venture ...... 39 Tel. 585-6521 the development of world trade” ...... 8 Chief Editor: Vladimir Chepovoy Foundation of Vasyl Khmelnytsky’s Through the eyes of the world: BUSINESS Project Manager: Iryna Serdyuk K.Fund supports private initiatives in the has chosen the Top-10 domestic brands ([email protected]), tel 585-6503 field of education, which should contribute most recognized in the world, which allow to Editor in Chief: Viacheslav Myronenko to the constant development of the identify Ukraine by its products...... 10 ([email protected]), tel 461-8347 personality ...... 40 Deputy Managing Editor: Iryna Chernyavskaya Boris Markov, Chairman of the Board of A clear understanding of what was happening ([email protected]) Directors, ATB Director General: “ATB Trade and a quick response to the challenges Head of Special Projects: Elena Moshenets Network will continue its development in helped the owners of Chemical Elements ([email protected]) 2017” ...... 12 Ukraine to save and develop complex Art Director: Igor Naidenko Lenna Koszarny, founder and CEO of chemical production ...... 45 ([email protected]) Horizon Capital: “Now is the time to invest in Departments: visionary entrepreneurs” ...... 16 UKRAVIT, the largest Ukrainian “Money” — Yuri Gusev, editor ([email protected]) manufacturer of plant protection products “Strategy” — Katerina Mashevska, editor Maryana Kahanyak, Export Promotion and microfertilizers, is building an innovative ([email protected]) Office Head, — on the Export promotion and research and development center that has no The Department of literary editing: the activities of the Office ...... 18 analogs in Ukraine ...... 46 Marina Nekrasova, Head of Department Daniel Bilak, UkraineInvest CEO: “To seize OKKO Agrotrade company is planning ([email protected]) the moment: it’s a perfect time to invest in to export 70% of grain purchased from Department of prepress technologies: Kasyan Servetsky, Department Head Ukraine” ...... 19 Ukrainian farmers ...... 50 ([email protected]) Ruslan Zahrebelny, Delta Wilmar CIS Marketing Department: Irina Pirog, Head of Department Commercial Director, — on successful Asian ([email protected]), tel 593-6833 business in Ukrainian manner ...... 55 Advertising Department: Svetlana Vlasova, Head of Department BUSINESS represents “100 most Synaps engineering company is planning promising companies of Ukraine with ([email protected]), tel 205-5011. to build its own energy centers on Editorial address: 02156, Kyiv-156, Kioto str., 25. export potential.” These companies biomass ...... 56 are neither a part of the financial and Tel.: 461-8347. industrial groups, nor representatives Ukrainian businessman Aleksander Hotline: [email protected] tel. 593-0462. Hromyko replicated the so-called “Chinese Web server: http://business-journal.com.ua of large transnational groups and Color separation and printing of the newspaper — Exemplary international companies, or have state miracle”, having established the production typography participation in the capital but are carriers of household appliancesin Ukraine, “Blitz-Print”, Kyiv, Murmanska str., 7 the cost of which is lower than in the The issue was signed for print on 10.03.17 of the national idea in industry. They are Circulation — 40150 copies, including subscription — 29100 the representatives of Ukrainian small and Celestial Empire ...... 59 copies. medium businesses ...... 20 Alvigo is a driver of the chemical industry, a The price is negotiable. Index of publications, subscription — 08022. group of companies that unites research and Vladimir Avramenko, CEO of AVK Company: Distribution is performed by the Agency of subscription “You must always do only what you will be development, chemical and and delivery “BlitzPress”. eventually proud of” ...... 23 technological and design enterprises Director Alexander Chepovoy, tel. 593-6818. Subscription engaged in the development of chemical Department (Kyiv and Kyiv region): 593-6816, 593-6850; Sergei Shapran, Chairman of the Board industries ...... 60 Courier delivery department (Kyiv and Kyiv region): 593-6806; of the Alumeta Group, — on the prospects service of subscription and courier delivery (branches): (0 CleanEnergy is one of the largest Ukrainian 800) 50-17-39; direct-marketing and advertising service: and plans of the Brovary aluminum 593-6842, 593-6864; delivery and accounting publications plant ...... 25 companies producing electricity at solar service: 593-6804; Sales Department: 593-6822; Logistics power plants. The company has been working Department: 593-6831. Look: Igor Mazepa, CEO of the investment in the renewable energy market since 2012, If you have any wishes and suggestions, please contact company Concorde Capital, — on investment using the most modern and high-tech (calls within Ukraine are free of charge): (0 800) 50-17-39 opportunities in Ukraine ...... 26 equipment ...... 61 (09.00-13.00, 14.00-18.00). Order subscription on the website: www.blitz-press.com.ua. The claims for the delivery of How the Bratslav regional company The international industrial and subscription editions of the Publishing house “Blitz-Inform” built a unique production for Ukraine and Construction Group of Companies are accepted by phones of the branches. the world solving the problems of other Olimp.group is developing one of the © Private Joint Stock Company “Blitz-Inform”, 2011 businesses ...... 28 largest technology parks in Ukraine and The publisher is not responsible for the content of news and can publish articles without sharing the author’s opinion. Materi- Yuriy Kosyuk, owner and CEO of the largest Europe and is seeking investors als are not reviewed or returned (Important! Information for Ukrainian agricultural holding company for glassworks second stage freelance writers is provided at the address http://business.ua/ Myronivsky Hliboprodukt — on the evolution construction ...... 63 dogovor.doc). Design ideas, style and all contents are subject to copyright and protected by law. Reprint or any other use without of the company ...... 32 Sinteza Agro is a group of companies the permission of the Publisher is not permitted. Complaints Andrei Ostrohrud, CEO of the Kievguma, — operating in the agro-industrial sector of about the quality of advertising and the timing of its publication are accepted within 14 days from the time it is published. on development plans for the coming Ukraine. Processing oilseeds and exporting years, export opportunities and investment grain crops are the key business areas of the Company news — materials marked with this needs ...... 35 group ...... 64 icon are published as advertisements

Q_1259_04.indd 4 25.03.2017 02:10:29 KIEF 2017: Ukraine and the world in new economic reality

he world has faced designate the first 'digital' unprecedented ambassador, these are the Tchallenges. Results of facts attesting to the world's the elections in the United recognition of the reality of States, Brexit, threat of trade digitalization. Participants war between two major of KIEF 2017 will be able world economies, rapid to know of best practices growth of technology, all of and new opportunities in this challenged the normal the digital economy from course of events in politics, the largest technology business and lives of corporations such as virtually every individual. Microsoft, Cisco, HP. New economic reality is What role in the new forcing the abandonment reality will play one of of old inefficient solutions the largest economies in and finding new answers the world, that is China's to global questions. What is economy? This issue will the FUTURE of the world and Ukraine? be up for debate in the context of the East Cooperation For the fourth year Kiev International Economic Discussion. Among the spokesmen will be Jonathan Forum convenes statesmen, politicians, chairmen and Woetzel, director of the McKinsey Global Institute and representatives of leading international companies, Senior Partner, McKinsey & Co.; Jonathan Holslag, Co- investment funds, businessmen and representatives of founder of the Brussels Institute of Contemporary China public organizations to discuss key issues of the world Studies, European Commission Counsellor; Xiang Bing, economy and geopolitics. Founding Dean and Professor of China Business and On October 5-6 they will meet again at KIEF 2017 to Globalization Cheung Kong Graduate School of Business. discuss global agenda, as well as the role and prospects of Ukraine's transformation as an integral part of the world Opportunities for partnership community. Forum quests will be able to interact closely with powerful figures in business, public and financial Is the world ready for breakthrough changes? sectors. Kiev International Economic Forum will be Industry 4.0 leads to proactive emergence of a new business attended by representatives of the government of class. These are businesses working in the creative economy Ukraine and governments of other countries, members sector, hi-tech projects, startups. How and in what directions of European Commission, EBRD and EIB top- will technology be developing in the near future? What managers, company owners, directors-general of major should be done first and foremost to preserve and improve corporations. Ukraine's position on the world market? These and other In the framework of KIEF 2017 10 round tables will issues the Forum participants will debate with international be held to discuss cooperation and investment in sectors and Ukrainian experts at the thematic panel discussions. such as hi-tech, construction, agro-industry, energy Among KIEF 2017 spokesmen there will be Loren R. efficiency, engineering. This is an excellent opportunity Graham, Professor Emeritus of History and Science at the to establish long-term business partnerships, to enter into Massachusetts Institute of Technology, and Monty Metzger, intergovernmental agreements and investment treaties. the head of one of the largest associations of European digital Interactive expo of international and Ukrainian hi-tech leaders, (DigitialLeaders.co, Digital Leaders Ventures). projects will be the novelty of the Forum. Globalization theme became one of the most debated A detailed programme, information on spokesmen, terms ones at the World Economic Forum in Davos. The impact of of participation can be found on http://forumkyiv.org small and medium-sized businesses on the world economy We'll be happy to see you among the participants of KIEF has become increasingly visible, through online access to 2017! customers and new opportunities for delivering a product, KIEF is one of the largest communication platforms in companies with up to 30 employees have come into the Central and Eastern Europe. Each year KIEF brings together global marketplace. How Ukraine and other countries can more than 1,500 participants and 120 international experts be successful in the era of inclusive globalization? How to from 30 countries around the world, including United States, develop online business activity? Representatives of major China, Germany, Belgium, Estonia, Lithuania. KIEF 2017 online companies will share their experiences. will be supported by Volodymyr Groysman, Prime Minister The advent of digital citizenship in Estonia and the of Ukraine, it will be held on October 5-6 in Parkovy announced plans of the Government of Denmark to Convention and Exhibition Centre.

Q_1259_05.indd 5 25.03.2017 01:13:58 .Б ИЗНЕС 12-13/27.03.2017 On all four sides of the world Ukraine diversifies its foreign markets

he process of changing THE SHARE OF America TOP 10 TRADING the structure of EXPORTS IN THE billion 0,74 USD PARTNERS T foreign trade is almost TOTAL OUTPUT OF UKRAINE completed in Ukraine. 2% OF THE UKRAINIAN IN 2016 (EXPORT AND The Russian embargo on the import INDUSTRY IN 2016% of a number of Ukrainian goods, IMPORT) BILLION USD the ongoing hostilities in the East of the country and the negative 6 Italy market environment of the main 1,90 1,401,4 commodity markets forced the Export Import domestic economy to diversify 10 export. USA In 2016, Ukraine exported goods 0,42 1,70 and services to 221 countries, and 26,4 62,5 47,4 43,3 34,8 25,2 24,8 Others the rate of falling exports slowed billion USD down considerably. Russia is still the 0,09 second largest buyer of Ukrainian 0,1% products, but the share of this market is constantly decreasing. Against the backdrop of the growing role for the Ukrainian exporters of Metallurgy Food industry Food the markets of Turkey, Europe, the Light industry Mining industry Persian Gulf, South and South-East total in Industry Asia and North Africa. 68,8

Woodworking industry Woodworking 68,3 In the world market, Ukraine is Mechanical engineering primarily known as a supplier of 2012 food raw materials, ores and low- 2011 grade metallurgical products. Over 40% in the export structure are grain, sunflower oil and other foodstuffs. EXPORT OF UKRAINIAN At the same time, there are GOODS, BILLION USD export-oriented industries in our 51,4 country, offering goods with high added value. For example, almost 2010 50% of the output of the machine- building complex goes abroad and up to 20% of food with a deep degree of processing. A number of enterprises producing construction materials, furniture, consumer electronics and computer equipment are focused exclusively on foreign TOP FACTS OF 2016 customers. The Ministry of Economic Ukraine exported goods and services to world’s 221 countries Development and Trade notes that starting from the second half of 2016 Export of goods only was carried out to 10 countries on external markets there is a steady growth in demand for products of Export of services only was carried out to 23 countries the Ukrainian industrial complex. Total volume of exports of goods and services – 44.9 billion US dollars This gives grounds to believe that as early as 2017, the drop in exports Compared to 2015, exports decreased by 4.1% may stop, and in the structure of foreign trade the share of products Goods provided 81% of exports with high added value will increase. Services provided 19% of exports

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EXPORT OF GOODS CIS TOP 10 IMPORTERS OF FROM UKRAINE billion UKRAINIAN GOODS,% TO GROUPS 6,03 USD 16,6% 37,2 OF COUNTRIES EU 37,9 12,7 Russian Federation 9,9 1 Russian Federation 7,2 Turkey 5,6 3,59 5,10 Europe 6,6 billion China 5,0 13,8 USD 5,4 37,9% Asia Egypt 6,2 billion India 3,7 11,8 USD 5,2 2,3 32,4% Belarus 5,2 5 2,1 4 Poland Belarus Saudi Arabia 1,6 0,90 2,80 2,220 22702,70700 1,6 Israel 1,3 3 Germany Ukraine 1,4 1,400 4,304,4,300 Iran 1,9 2015 2016 6 Italy 7 Turkey 2 China 1,900 1,4040 2,0 1,151,151 1,80 4,70 TOP 10 COUNTRIES 9 Egypt FOR THE GROWTH 2,30 00,02 OF IMPORTS 8 India OF UKRAINIAN GOODS 1,990 0,499 IN 2016, MILLION USD EU + 482,5

India +459,2

Egypt + 186,4

Africa Indonesia + 180,4 billion 3,9 USD Iran + 171,6 10,2% 63,3 Bangladesh + 120,5

Thailand + 78,6 2013 Australia and Oceania Sri Lanka + 76,1 billion 0,02 USD Libya + 65,2 53,3 0,1% Serbia + 50,2 2014

TOP-10 GOODS BY 1,67 1,07 GROWING EXPORTS –3,2% +2,5% 0,96 IN 2016 MILLION USD +7% 38,1 1,97 36,4 Sunflower oil +681,4 2,6% 2015 –22,7% 3% Wheat 4,6% 15,3 2016 + 479,5 5,4% +5% Sugar + 183,7 2,73 STRUCTURE Products of Chemical Industry 7,5% agroindustrial complex Products Soya beans + 180,1 –12% OF UKRAINE’S 42% and food industry Wood & EXPORTS Metallurgical Paper Meat of poultry + 65,9 IN 2016, products Miscellaneous 11,9% + 57,2 BILLION USD Products of manufactured Vegetables mechanical engineering goods 4,34 Sunflower + 54,6 Mineral Light industry –9,2% products goods 22,9% Cabling and wiring products + 47,8

8,34 According to State Statistics Wagons + 46,9 –12% Changing for the year According to the Ministry of Economic Development Electrical appliances + 45,7 7

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‘WE ARE BECOMING FULL-FLEDGED PLAYERS IN THE DEVELOPMENT OF WORLD TRADE’

World trade is full of surprises and unexpected been reshaped. All of our actions refl ect the result of an events. It seems incredible, but, for example, analysis that takes into account Ukraine’s national trade Saudi Arabia imports camels from Australia interests and necessities and are aimed at achieving a and sand from Belarus (having its sandstones concrete result. of Rube-el-Khali basin). It’s nothing to be Now the top priority of our work at the WTO is to confront surprised at: on the territory of Saudi Arabia aggressive, discriminatory and illegal actions of the Russian one can find top-breed racing camels, while Federation. Ukraine has initiated two cases against Russia meat and work breeds are supplied from under the WTO regardingrestrictions on export of railway Australia. Small river sand purchased from equipment and restrictions on transit. It is not the fi rst time Belarus is used for solid concrete production Ukraine raises this issue at WTO Dispute Settlement Body. and beach construction for a simple reason - Profound preliminary work has been conducted in this development and preparation of its own sand regard: a key element was the resource management of the for such purposes would turn out to be more WTO profi le committees and meetings of the governing expensive. bodies. We wanted to draw attention of the world trade So proficient and shrewd search for export community to the essence of the Russian Federation’s market outlets is a major problem faced by unprecedented policies in respect to Ukraine in the recent Ukrainian enterprises that needs to be solved. years, including in the trade area. The point is that all WTO Which steps are necessary to find a customer? members should not simply declare but also follow the How Ukraine can help its exporters? – all these core principle - ‘rules must be respected and implemented’. questions BUSINESS journal addressed to Ukraine’s proactive stance, our willingness to defend our Natalia Mykolska, the trade representative of rights and interests is a signal that we are becoming full- Ukraine. fl edged players in the development of world trade.

— The work on the National Export Strategy has been 'First questions the investors completed. For which purpose does Ukraine need its export strategy in free market conditions? ask the exporters: how does the — The export strategy of Ukraine is a unique document enterprise operate? do financial which, for the fi rst time in 25 years, defi nes a plan for development and utilisation of export potential and and accounting reporting growth. The strategy has specifi c objectives and vision. It correspond to reality? how also priorities areas that are in the need for improvement many people are working in the so as to achieve export competitiveness. This is a clear plan of action that will create a coherent export support system. company? what is the real rate It was designedto cover all sectors of Ukraine’s economy, of profitability?’ it is like ‘an umbrella’ that will support Ukrainian exporters by creating an enabling business environment for their development. — Ukraine has signed with the EU a Free Trade Area The main objective of the strategy is to raise the standard Agreement, we have already relevant agreement with of living of Ukraine’s population. It was designed Canada, and similar agreements are being prepared to bottom-up, which means that the document refl ects be entered into with Turkey and Israel. But exports have actual problems faced by entrepreneurs. Such inclusive been declining. Why is this happening? approach became possible through involvement of expert — To begin with, let us recall that we lost 20 per cent of groups: representatives of business associations and industrial production and our ‘historical’ foreign markets social organizations, academics and practitioners. It is a because of the Russian trade aggression. collectively-compiled, integrated document. I cannot agree that the Free Trade Agreement does not work. The reorientation process is under way. Over the — Recently Ukraine for the fi rst time addressed the past few years, the EU has become the main trading meeting of the WTO Dispute Settlement Body on partner of Ukraine and exports to Russia have declined. the issue of restrictions on the part of the Russian This is the result of benefi ts obtained from the Free Trade Federation. How do you assess Ukraine’s relationship Agreement which works and helps to mitigate negative with this organization? factors. — I should note that in the past few years Ukraine’s But the existence of such agreements does not augur engagement at the WTO has not just intensifi ed, but has well for successful exports. There are number of internal

Q_1259_08-09.indd 8 24.03.2017 23:37:21 .economY person

— Is there a place in the export market for small and medium-sized businesses? What products should they off er and how to strike the attention of investors? —Of course, there is a place for small and medium- sized enterprises. They account for 99 per cent of the country’s enterprises. Furthermore, 20 per cent of these entrepreneurs are involved in export. It depends on the industry in which the enterprise works, but for the products to be unique they must have some competitive or price advantage, or obtain an exclusive quality. Processing, manufacturing, technology and innovation create added value and make products unique. Transparency in business and property management are also important. That is what draws the investor’s attention. The role of the state is in assisting such enterprises, removing domestic barriers to business and creating convenient conditions for export.

— You have participated in many forums to attract investment to Ukraine. What is the general attitude of international investors towards Ukraine, as a business and trading partner? — There is a great interest in Ukraine and the Ukrainian Nataliya Mykolska, market. But we are expected to achieve more progress in our reforms, such as deregulation of tax administration, Deputy Minister of changes in the work of monitoring bodies, law enforcement Economic Development and judicial systems. These areas directly aff ect the activity and Trade of Ukraine — of each exporter. Trade representative As I have said before, the transparency of business and the of Ukraine desire to improve, that’s what is expected by investors from our businessmen. Main questions the investors ask exporters: how does the enterprise operate? do fi nancial and accounting reporting and external factors infl uencing the situation. Each of correspond to reality? how many people are working in the these needs to be worked out separately. There is a need company? what is the real rate of profi tability? If it turns for establishment of export support system for Ukrainian out that the enterprise offi cially states the loss in reporting exporters and an action plan, where business, not a and indicates top managers’ salary accounting for 3,000 country, occupies the main place. UAH, the investor will lose interest and you will never meet again. — In the world market, Ukraine is known as a supplier of raw materials. Which high value-added products remain — Can the creation of a full-fl edged Export Credit underestimated by foreign consumers and investors? Agency become a trigger for export promotion? — I do not agree that Ukraine is only an exporter of raw —The export support system includes several tools. The materials on the world market. We are known also as fi rst tool is public policy: applicable laws, international legal suppliers of food products, IT and engineering services, agreements, relevant regulatory framework. aircraft manufacturers, and as a country with a promising The second tool is an organization for promotion, fi nancing fashion industry. or export insurance. Sometimes it is unifi ed structure, other While working on the Export Strategy Project, the times these structures operate separately. They include International Trade Center made an analysis of the Ukraine has an online export support resource, because we’re living in additional export Ukrainian export structure on a country-by-country basis. a digital world after all. Last year we established planning capabilities with It was discovered that Ukraine has additional export Export Promotion Offi ce, which has already shown the fi rst a number of opportunities with a number of countries, namely the countries, namely eff ective results. United States, Germany, the United Kingdom, France, the United States, In addition, at the end of last year our Parliament adopted Canada, in excess of $5 billion. Germany, the a Law on fi nancial export support (‘On ensuring large-scale We are defining the focus markets not only on the United Kingdom, export expansion of Ukrainian producers through insuring, basis of the current export data. We are also aware France, Canada, in guaranteeing and cheapening export crediting’). It allows of other important factors. The main criteria for excess of the government to decide on the Export Credit Agency selection are market size, actual and anticipated model, it will provide insurance and reinsurance services. growth, and market access terms. Territorial proximity is important, which determines the costs of logistics, $5 cultural relations, mutual conformity of export and Mikhail Dikalenko import structure, etc. billion

Q_1259_08-09.indd 9 24.03.2017 23:37:22 .Б ИЗНЕС 12-13/27.03.2017 The magnificent ten

Some of them have unique “Soviet” prehistory and a long tail of victories at international markets. Others appeared and developed together with independent Ukraine, they had to elbow their way through the competitors to reach foreign consumer. BUSINESS has selected Top 10 of the world’s most recognizable Ukrainian brands throughout the world, which identify Ukraine by their products.

ROSHEN

People from 35 countries including the USA, Canada, the EU, Israel, China and Japan eat candies from Ukrainian President. The corporation is among hundred biggest confectionery companies of the world, however it has lost two positions in last year’s Global Top-100 Candy rating occupying 24th place. Sweet brand engages 350 product names with total value of above 300 thousand tons per year.

NEMIROFF The biggest spirits exporter in the country with the share of 30 percent is also included in Top 10 world vodka suppliers in Duty Free&Travel Retail segment. Nemiroff’s products are known in 80 states, while they are bottled at one plant in Vinnytsia region. The only exemption is Russia and Belarus, where licensed production is located, serving these markets only.

OBOLON The first batch of home made Zhyhuliovskoe pivo produced at Obolon plant came to England in 1989. This was the beginning of the successful market penetration. Now, a quarter of a century later, this brand is known on five continents, in more than 50 countries being associated with Ukrainian beer No.1. The Obolon’s share in total volume of beer export of Ukrainian beer is 75%.

KHORTYTSIA For the last five years Khortytsia vodka brand remains in Top 3 of global alcohol rating according to British Drinks International. Khortytsia has become the most saleable Ukrainian vodka in the world, furthermore among three leaders it ramps up sales. Currently branded products are sold in 87 countries. For the last year the volume of sales in Israel has increased by 25% as compared to 2015 levels and by 120% - in the USA.

ANTONOV Planes produced by Antonov state enterprise flight around the globe – the geographic scope of itsnumerous partners covers 78 countries. More than one hundred types and modifications of passenger, transport and special aircrafts belong to Antonov’s authorship reproduced in more than 22 thousand copies. At the same time such cargo giants as ‘Ruslan’ and ‘Mriya’ became a landmark with 270 registered world records. All together the ‘An’ family planes have established more than 5 hundred records.

Q_1259_10-11.indd 10 25.03.2017 01:57:44 .economy top brands

POTENTIAL BRAND MARKET VALUE *The methodology is based on AS OF 2016*, USD MILLION the assessment of the activities of the company brands owners, and also takes into account a number According to MPP Consulting. of factors reflecting market Roshen 335 conditions that could affect the brand, all possible threats Nemiroff 263 and prospects for industry Obolon 247 development. Brand value Khortytsia 144 includes the value of the brand (name) only, except for production Antonov** 115 facilities, infrastructure, patents, Oleina 101 inventions and other tangible Chumak 82 goods or intellectual property. ** The brand value according to Turboatom** 78 the short evaluation formula, Svitoch 34 input-output coefficient excluded. Yuzhmash** 32

OLEINA

The first bottle of the Oleina sunflower oil rolled off the production line in 1998, which set off the establishment of refined oil market in Ukraine and propelled the company to the top sellers (the current share is 25-30%). Oleina entered the Russian market at the same period, and has been successfully exporting well-loved oil for 10 consecutive years until it built a separate plant in this country. It satisfies Russian demands in Oleina. Apart from Russia products of this brand are known at all CIS markets.

CHUMAK Its 21st birthday Chumak will celebrate on May, 29 and that is the day when Ukrainians have every right to celebrate ‘Ketchup’s day’. In order to bring its products to Ukrainian market the company lobbied a new term in the Registry of Food Products – ‘ketchup’. Previously, its closest analogue was the name ‘Tomato sause’. Chumak brand production is well-known in 30 countries including the EU markets (in Poland and Czech Republic), while it makes the top three sellers in Baltic countries. Last year, Chumak conquered Scandinavia and started moving to the USA, China, Korea and Vietnam.

TURBOATOM The world turbine manufacture brand has equipped 45 countries with its turbines throughout its 88-years’ history. That is more than 260 steam turbines for TPSs, 160 turbines for NPSs and more than 400 hydroturbines for HPSs. Turboatom competes with the world’s leading brands such as Siemens, General Electric, Alstom and Silovye Mashyny for each equipment purchase order, confirming convincingly the high level of its developments.

SVITOCH Sweet brand Svitoch is 55 years old, while Lviv Confectionery Factory where the candies are produced, is 135. That is why Lviv is justly considered the second capital of the chocolate after Swiss Bern. By joining Nestle SA (1998) the factory marked the start of modern history of the brand rising from regional to national. Today Ukraine and Moldova are the main marketing areas for Svitoch products, although in the 1970s, candies were in demand in Germany, Japan, France, Australia and the USA, while in the 1990s, 45 foreign partners from 23 countries were involved in the distribution of Lviv candies.

YUZHMASH Yuzhmash’s launchers and satellites make distant stars become closer. The company has been engaged in the conquest of the boundless space for about 70 years. Zeniths, Cyclones and Vegas assembled in Ukraine in this period operate in 23 countries, which allows our country to position itself as one of the few space powers. For NASA, Yuzhmash builds Antares launchers, while for the people of Earth the enterprise has produced a line of modern tractors.

Q_1259_10-11.indd 11 25.03.2017 01:57:46 .Б ИЗНЕС 12-13/27.03.2017

Boris Markov, Chairman of the Board of Directors, ATB Director General

'ATB TRADE NETWORK WILL CONTINUE ITS DEVELOPMENT IN 2017'

Summarizing the results of 2016, the ATB Corporation once again reaffirmed its leadership positions in the Ukrainian retail market as for development, as well as on the payment of taxes, having transferred in various budget levels and special funds over 5 billion UAH. Despite the instability of the economy, the ATB Network continues its rapid expansion. New stores are being opened, new opportunities are being actively pursued in the west and south regions of the country, thousands of jobs are being created and modern technologies are being introduced. The results and prospects of ATB development are highlighted in our interview with the Chairman of the Board of Directors, ATB Director General Boris Markov.

— February 9 is the deadline for legal entities to many stores in the east of the country. This has been submit ﬁ nancial and economic activities reporting a great blow to our entire team, but we are gradually for 2016. What are the results and climate in the coming back to the pre-crisis pace of development. corporation starting a new season? The following figures illustrate this fact well. In 2012- — It was a difficult but very fruitful year for us. Our 2013 we opened up to 140-150 new stores each year. whole team of thousand employees has done it well. Acoording to results of the last year, we have been Despite the unfavourable circumstances, the team as close as possible to this figure. 112 of new ATBs has succeeded in fulfilling its objectives and showing were opened, Which allowed for a year to increase growth in all areas of its activity. Compared to 2015, the number of retail outlets by 15.5%. As of December the trade business of ATB increased turnover up to 31, 2016, the ATB trading network had 835 stores. Our 58.5 billion UAH VAT included (in money equivalent). company has been holding the leadership positions Thus, the increase was 25.5%. The past year has also in the trade segment in regard of tax payment. We been marked by good performance on the expansion have increased tax allocations to all budget levels on of our trade network. As we know, in 2014 we lost more than 2.5 billion UAH (+ 83.3%). A total amount

Q_1259_12-13.indd 12 25.03.2017 00:24:12 .COMpany person

of transferred funds constitutes 5.5 billion UAH. In 2019 the trade network will have more than 1,000 our industry, this is the highest result. Of course, shopping facilities. all this positive evolution has had the greatest impact on our ability to provide employment to — Goals and objectives are more than ambitious, who an increasing number of Ukrainians. In 2016, we in your company is responsible for implementation created 7 thousand new jobs. And now, speaking in of the strategy? general, the staff of the ATB trading network has — Strategic planning and control of enterprises of the more than 40 thousand employees, which is 15% ATB Group is carried out by a collegiate body, the Board higher than in 2015. It is very important for us, that of Directors of ATB Corporation. The Board of Directors among them there are many internally displaced also includes Aleksandr Tokar, Igor Yatsuta, Yury Gusev. persons from the Anti-Terrorist Operation Zone. — The ATB Corporation is known for active — Development priority for ATB Trade Network over charitable activity, which projects were the last two years has been dynamic expansion to implemented in 2016? the western region of Ukraine. Will you continue to — The ATB Trading Network has demonstrated high expand your network to the west in 2017? results and impressive development, but no less — Certainly. Experience of past year work showed, significant corporate achievement in 2016 was the that ATB grocery discount stores have successfully development of charity and sponsorship projects. integrated in the trade infrastructure of Lviv region. Last year, we transferred more than 15 million UAH This has inspired us to revitalize our activities in assistance to the Ukrainian army, to the families the region. The purchase transaction of 17 shopping facilities of Barvinok network has been recently completed. Since February these stores have been working under the ATB sign. In addition to western Ukraine, we will continue to actively cultivate the market in Odessa region. Trade turnover rates in the region have exceeded our forecasts.

— Is the company’s infrastructure sufficient to increase its presence in the regions, new for ATB? — It’s a very good question. The buyer sees only ‘the tip of the iceberg’, the store itself. But in order to ensure its smooth operation, there are many structural units in charge: beginning from warehousing to quality testing laboratories, from training centres to production facilities. We therefore have a systemic approach to our expansion to new regions. Respectively, the establishment of of ATO soldiers, refugees (internally displased efficient logistics is an important task. To implement persons). We were funding targeted assistance it, we plan to build in Odessa and Lviv regions The Board programmes for retirees, disabled persons, families of Directors: logistics centres with our own convoys of trucks, (from left with many children, people in need of urgent care which could provide quick and reliable deliveries. to right): and other low-income citizens, amounting to more The exact dates for the opening of distribution Igor Yatsuta, than 17 million UAH. Furthermore, in 2016 we have centres are now difficult to specify. However, the Boris Markov, traditionally allocated funds (in the amount of fact that they will be put into operation in 2018-2019 Aleksandr Tokar, about 30 million UAH) for the improvement of urban Yury Gusev. is not questionable. areas, namely pavement of roads, construction and renovation of playgrounds, repair of gas pipeline — Does the company intend to expand abroad? systems, lighting programmes, greening of the — To be honest, at this stage we do not plan to invest territories, winterization of housing and public in projects abroad. According to the corporation’s utilities and other projects. We have increased development strategy for the next three years, the financial support for urban Children’s home, No.1 in ATB Group will continue to grow actively in Ukraine. Dnipro city, which we have been supporting for the Our tasks are clear and transparent: to keep and past twelve years. We continue to develop youth strengthen the retail market leader positions. sports, organize sports, cultural events and holidays. The funds were allocated to support equestrian — So, will you continue working as favored by sport in Ukraine. I am sure that all of these work lines Ukrainians grocery discounter store? will also be successfully implemented in 2017. — This is certainly our innovation, which has proved to be valid for many years. But we will continue to seek and implement the best solutions that are Yevhenii Zakharov inherent in this and other trade formats to preserve and enhance our competitive advantages. By 13

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Methodology

'100 Most Promising Companies of Ukraine with Export Potential’ are the companies that are not part of the financial and industry groups, are not representatives of major transnational groups and international companies, not partially government-owned, they are promoters of a national idea in industry. They are representatives of Ukrainian small and medium-sized businesses. Selection of companies was carried out in three stages. The primary array of Ukrainian companies was compiled on the basis of customs data of the State Fiscal Service and Region State Administrations Economic Departments information. The latter suggested submission to the project of 20 companies groups that would meet the following four criteria. The first criterion was export orientation. Such companies either had already had an export history and had been planning to increase their market share, or the company had stated intention to seek out world markets and find foreign investors. The second criterion was sectoral specificities. Priority was given to the most investment-attractive areas, such as: agriculture, processing, food, chemical, pharmaceutical, construction and technology industries. The third criterion was the added value of manufactured products (high technology, innovation products and services). The fourth criterion was the reputational value of companies in their regions (transparency of business, participation in social projects, CSR projects and investments in the future, the contribution of the company’s reputation to Ukraine’s prestige). A long list of companies, consisting of 500 Ukrainian business representatives was compiled by reference to these criteria. Further, the members of the Expert Council, consisting of financial and audit companies representatives, conducted companies analysis to meet the stated criteria. Consequently, the primary array of companies was reduced to 200 enterprises. Where upon the Reputation Council decreased it to 170 companies. Subsequent work with companies had identified another criterion, fundamental in determining the final hundred. This is a company’s representation on the Internet: company’s website, with its English language version, and detailed description of products and services.

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REPUTATION COUNCIL

Vitaliy Antonov, Vasyl Khmelnytsky, Yuriy Kosyuk, Concern Galnaftogaz First Vice-President Myronivsky Hliboproduct CEO of the Ukrainian League of Owner and CEO Industrialists and Entrepreneurs, founder of K. Fund

Lenna Koszarny, Evgeny Utkin, Andrey Matsola, Horizon Capital Chairman KM Core, Founder and CEO of First Company Founder and Chairman hi-tech Private Brewery (‘Persha CEO cluster BORSCH Pryvatna Brovarnia’)

EXPERT COUNCIL

Maryana Kahanyak, Anna Parkhomenko, Vladislav Ostapenko, Export Promotion KPMG partner in Ukraine, Head of Corporate Offi ce (EPO) Banks and Financial Finance and Head Institutions Trade Group M&A transactions, EY Head

Artem Hudkov , Lyubov Tsymbal, Panafrican Trading Alliance Finance Solutions CEO Group CEO

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.Б ИЗНЕС 12-13/27.03.2017

Lenna Koszarny, Horizon Capital’s Founder and Chief Executive Offi cer

'NOW IS THE TIME TO INVEST IN VISIONARY ENTREPRENEURS'

Horizon Capital’s mission is “to back visionary investing at present, Horizon Capital takes a diff erent entrepreneurs transforming the business perspective from our vantage point as the leading private landscape in Ukraine and the region”. With a equity fi rm in Ukraine, operating on-the-ground for the 20-year experience in the area of investing, the past 20 years. Rather than resist the aforementioned company has demonstrated that investment challenges, Horizon Capital believes that now is the time into Ukraine can be successful. Lenna to back visionary entrepreneurs leading transformational Koszarny, Horizon Capital’s Founder and CEO, businesses in Ukraine and the near region that naturally has firsthand knowledge of the risks and hedge against devaluation through exports and off er opportunities of investing in the Ukrainian fundamental competitive and cost advantages. We have market. invested over $420 million into 44 companies employing over 35,000 people in Ukraine, increasing to over $500 million in the near region. During the past two years, —What is the main argument for foreign investors Horizon Capital has continued to invest, disbursing over in deciding to invest in Ukrainian companies? $50 million in equity investments. —It is critical to appreciate that not all investors are In deciding whether to invest in a particular Ukrainian alike and it is important to diff erentiate between them. company, the factors we focus on are: For example, fi nancial investors typically are willing to • Partners and management team leading the enter a company at an earlier stage in its development company — it is essential that we share values, a and accept a higher risk profi le than a multinational commitment to transparency and align on the or strategic investor in return for sharing in the value company’s vision and strategic direction. created in the business. While the challenges faced • Sustainable competitive advantages embedded by Ukraine may cause traditional investors to avoid within the business model - may be a unique

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technology or competence, strong brand and • focusing on export-oriented, macro-agnostic scale effects or low cost platform businesses in sectors with sustainable • High-growth market segments or those that competitive advantages to take advantage of have the potential for growth attractive opportunities while mitigating country • Value-accretive opportunities to work alongside risk and devaluation, owners-management to grow top line and • focusing on smaller deals where the broadest earnings, given we are an active value-added opportunities exist, investor • continuing to insist on transparency and strong • Attractive company valuation and deal terms corporate governance to enable realizing a that enable strong returns for all shareholders corporate governance premium upon exit in We firmly believe that Ukraine represents complex market conditions. a ground-floor investment opportunity for investors. Along with attractive valuations, we —What is the Ukrainian companies’ demand for believe the shortage of capital, strong growth foreign investment, is there a possibility of a rates in a number of sectors, as well as important rapid payback on investment in Ukraine? macro-tailwinds like a significant boost in export —In general, Ukrainian companies require competitiveness, major consumption gap versus capital to finance expansion plans, including peers as well as a large domestic market and constructing modern manufacturing facilities to expanding middle class, all add up to a compelling increase production capacities and fuel growth, investment opportunity. and purchasing new equipment, investing in sales, distribution and marketing to enable a —How successful was the experience of Horizon successful geographical expansion strategy Capital in the process of investment management into the European Union and other new export in Ukraine? markets and diversifying away from traditional CIS —We are proud of our track record and the success markets, and strengthening their market position of our investments in Ukraine. We measure success within Ukraine. in the value created in the companies that we invest in and the returns earned when exiting investments. We are delighted to exit to blue-chip investors such 'Sharing the risks and rewards as selling Shostka Cheese Plant to Fromageries Bel with an equity investor or exiting our stake in Ciklum, a global IT solutions alongside your investment provider, to Soros’ Ukrainian Redevelopment Fund. In terms of value creation, post investment we is a more prudent route to take an active role in working with the portfolio follow for many successful companies and directly with senior management to create value in our portfolio companies. We entrepreneurs' work side-by-side with our partners and company management on strategy development, operational In funding their expansions plans, shareholders may improvements, team and business development, choose to attract equity, debt or a combination of strengthening corporate governance, improving both. We are seeing an increase in entrepreneurs the capital structure, etc. For example, at Biofarma, interested in attracting a business partner who will a leading Ukrainian pharma manufacturer, we provide equity investment and work alongside them attracted FMO, the Netherlands development bank in growing the business to the next level. This is as a co-investor, and together with our Ukrainian especially relevant today given the numerous examples shareholders, constructed a new state-of-the art in the market of overleveraged companies who took manufacturing facility and supported in building a on signifi cant foreign-currency debt or their business top management team, attracting senior managers models were based on a signifi cant currency mismatch from top tier global players and expanding into which has led to complex debt restructurings, loss of new export markets. At Datagroup, a leading market share and even bankruptcy. telecommunications services company in Ukraine, Given the circumstances facing Ukraine today, Horizon Capital increased its investment in the sharing the risks and rewards with an equity summer of 2016 to gain full operational control, investor alongside your investment is a more attract a top CEO and launch a strategy refresh prudent route to follow for many successful focused on innovative, high margin products and entrepreneurs. services in the core B2B corporate data services We do believe that a significant opportunity exists segment. in Ukraine though investors should expect payback periods of minimum 3-5 years for expansion capital —How can investors mitigate the risks specifi c to investments. This may seem long to domestic Ukrainian market? investors who often have payback expectations of — After more than 20 years of investing in Ukraine 1-2 years though in Western countries, investors we believe that we can mitigate the risks specific are willing to take a longer-term outlook with 10+ to Ukrainian market by: years payback.

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EXPORT PROMOTION

owadays, export growth and be of high quality; these goods is one of the top strategic must meet European and world Npriorities for Ukraine’s standards. It is these products that economic development. We all foreign importers are interested in. (stakeholders) are concerned with If the company has basic our business success in international presentation package showing its markets, and in economic prosperity export readiness, the Offi ce will of our country. Having this provide exporter with a certain objective in view, the eff orts are set of tools, including primary under way at all levels, herewith consulting and prospective market the strategic documents are being information, and will assist on drafted at the state level and the participation in foreign tendering export promotion and support under the Public Procurement tools are being implemented at the Agreement. The company also operational one. obtains the opportunity to The main goal of Export Promotion participate in meetings and events Offi ce (EPO) establishment that provide new export capacity, and activity is to found direct such as: trade missions, exhibitions, working contacts with exporters, B2B and B2G meetings and other government, experts and fund, export-oriented activities. so that all of us could meet For those who are not ready to our common objective. We are enter new markets or those who promoting export growth and want to advance their knowledge conﬁ dence-building in our country’s and skills in export, the Offi ce off ers business by applying practical special educational programs, tools to support exporters and by trainings and expert consulting. The developing cooperation between Offi ce also supervises interaction partners in foreign markets. of local exporters with the For the past few years, the Ukrainian Government by means of Export business and all its supporters global market? The understanding Maryana Promotion Council in cooperation have been working actively to build of the market is one of the Kahanyak, with the Ministry of Economic Ukraine’s positive international fundamental elements of exporter’s Development and Trade of Ukraine. EPO Head, image in the area of international success, as well as its high mobility advisor to Export Promotion Offi ce is open to trade. The Ukrainian products and the competitiveness of its the Minister promising initiatives and projects. receive consumer’s appreciation; products. From the perspective of Economic We help Ukrainian business they are highly rated in many of our Offi ce, the competitive development and not only to develop globally, by countries in Europe and Asia, and advantage of the Ukrainian exporter trade of Ukraine entering foreign markets, but also South America. should be innovation, creativity and we are ready to support foreign As of now, EPO has created pro-activity. importers in their search for reliable particular tools, which actively used It has been recent noticeable trend, partners in Ukraine. by the companies in their export which increased the number of Being inspired by the results of activities; there are four priority the Ukrainian small and medium- EPO`s trade missions to Canada, areas in order to enhance the sized businesses focusing on the Kenya, Tanzania, Sweden, Indonesia competitiveness of the Ukrainian domestic marketing, as well as and Malaysia, we have planned business and to promote its goods on development of their export a number of business activities and services in the world market. activities. Our Offi ce, ﬁ rst of all, in the nearest future in Poland, In particular, our Offi ce provides advocates the development of Germany, Turkey, China. We are companies with export information export potential in small and working as well on expanding the services, export education and medium-sized businesses. We educational services for Ukrainian export consulting, as well as call on them not to be afraid of businesses, providing trainings and off ers business opportunities for change, but rather to be open developing export-opportunity exporters. to new trends, information and programs. The prospects for We also emphasize the Ukrainian innovations, to be ready promptly our participation in the annual exporter’s need to develop its adapting its products to the needs International Investment Forum in export potential by exploring and requirements of a foreign Dubai deserve special attention. priority areas and opening new consumer. Exporters became Indeed, the Arab Emirates could markets. more and more aware that today’s become an economic ‘hub’ for What’s exactly the secret of the competitive product from Ukraine Ukraine to reach the markets of Ukrainian exporter entering the should consist of reasonable price the countries in the Middle East.

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TO SEIZE THE MOMENT: IT’S A PERFECT TIME TO INVEST IN UKRAINE

he year 2017 has every for the mandatory sale of foreign chance of becoming a exchange earnings. Tyear of rebuilding investor Furthermore, we have confi dence in Ukraine and its ‘traditional’ arguments to attract economy, our business now has foreign capital: our country’s more than enough motives to start advantageous location, fertile soil, implementing its projects. favourable climate, a good few of In the past three years, Ukraine has natural resources. Ukraine also achieved signifi cant results in the remains the sixth largest consumer establishment of macroeconomic market in Europe with 43 million sustainability, the formation consumers. of anti-corruption institutions, The structure of the Ukrainian deregulation and decentralization economy includes several of power, and has continued to industries that may be profitable implement reforms that will create to investors in the short term and a very favourable investment also have significant investment climate in a few years. potential. These are agriculture, Our optimism has been supported energy industry, infrastructure by actual data. Not so long ago, undeniable. Meanwhile, hundreds Daniel and engineering. As well as high Volodymyr Hroysman, our Prime of certificates, licenses and Bilak, technology that stimulates the Minister, stated that, summarizing other permissive documents, development of these sectors. They UkraineInvest СЕО the results of the fourth quarter which have provoked corruption all require innovation and are open of 2016, Ukraine’s GDP growth of monitoring and supervisory to its implementation. accounted for 4,7 per cent bodies, have been abolished. In the long run, Ukraine could be compared with the same period Public access to almost all state very attractive especially with in 2015, and for the second half registers has been provided, an regard to organic agriculture. of 2016. GDP has increased by 2,2 on-line business registration Our country is a very promising per cent. Besides, in the past year system and a ‘single-window market for investment in the Ukraine received $3,13 billion of system’ at customs have started energy sector as well, especially in direct foreign investments, which is their operation. A few weeks renewable energy. 6 per cent more than in 2015. ago, the Cabinet of Ministers The production of spare parts and Industrial production trends supported the draft law, which assembly units shows good results. indicate that Ukrainian adoption would allow Ukraine The IT sector has traditionally manufacturing has gradually to rise up by 40 positions in the been successful and dynamic, regained its position: in 2016, the Doing Business ranking as early which gives Ukraine every chance production volume increased by as 2018. to become one of tomorrow’s 2,4 per cent. The leaders in this At the end of past year, the IT centres on a global map of activity are metallurgy (5,9 per Verkhovna Rada approved high technology. There are cent growth), the food industry a number of important over 100 research centres (3,9 per cent), power generation amendments to the Tax Code. of global companies from (2,6 per cent), the extractive and Among other things, the powers diff erent industries, including processing industries (2,3 per cent). of the State Fiscal Service were telecommunications, software Ukraine’s trade turnover with reduced, VAT administration was development, game industry and Western European countries in improved and the mechanism of e-commerce. Such companies as 2016 increased by 7,6 per cent, with its reimbursement was simplified, EPAM, Global Logic, Luxoft, have Asia by 5,3 per cent, with America and this year the work is to be created subsidiaries, benefi ting by 8,2 per cent, with Africa by 1,8 completed on the draft law on from the high quality of IT per cent. In view of the fact that the capital outflow tax. professionals work, the proximity to convergence of Ukraine and the EU In addition, the National Bank European markets and the relatively within the framework of the signed has announced a major reform low cost of the development of IT Association Agreement has been of the currency law and intends products. continuing, the export potential of to remove the main obstacles All this confi rms that now it is a domestic producers is enormous. to the free flow of capital over very favourable time for investment Advances in deregulation and the next four years. This includes in Ukraine. It’ll be easier later, but control of bureaucracy are also the lifting of the requirement more expensive.

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12-13/27.03.2017 MOST PROMISING COMPANIES OF UKRAINE 100 WITH EXPORT POTENTIAL*

1 Agrofusion 18 Velam 34 Krolikoff Mykolayiv, Mykolayiv region Mykolayiv, Mykolayiv region Ivanki, Cherkasy region Agriculture, food industry Textile, clothing & footwear industry Agro-industrial

2 Allseeds 19 Vinil 35 Kupyansk dairy-canning plant Odesa, Odesa region Dnipro, Dnepropetrovsk region Kupyansk, Kharkov region Agro-industry Paper industry FMCG

3 АВК 20 Volodymyr-Volyn poultry factory 36 Lasunka Kyiv Fedorovka, Volyn region Dnipro, Dnipropetrovsk region FMCG FMCG FMCG 4 AgroVet Atlantik 21 Volodarka 37 Levada Kyiv, Kyiv region Vinnitsa, Vinnytsia region Odesa, Odesa region FMCG Textile, clothing & footwear industry FMCG AgroLiga 5 22 Galeks Agro 38 Liluck Kropivnitsky, Kirovograd region Novograd-Volyn, Zhytomyr region Chernivtsi, Chernivtsi region Agricultural machinery, Agro industry FMCG agro-industry Golden Tile 39 Luga Alfa-ETEKS 23 6 Kharkov, Kharkov region Volodymyr-Volynsky, Volyn region Cherkasy, Cherkasy region Production of ceramic tiles Textile, clothing & footwear industry FMCG 24 Escada-M 40 Lukas 7 Artel Kyiv, Kyiv region Kremenchuk, Poltava region Mykolayiv, Mykolayiv region Woodworking industry, furniture industry FMCG Furniture industry 25 8 Arton Zhytomir creamery — company “Rud” 41 Lutsk Foods Chernivtsi, Chernivtsi region Zhytomyr, Zhytomyr region Lutsk, Volyn region Instrument making FMCG FMCG 26 9 ATEM Kobzarenko factory 42 Lviv-Plast Kyiv, Kyiv region Kyiv, Kyiv region Lviv, Lviv region Production of ceramic tiles Agricultural machinery construction Textile, clothing & footwear industry

10 Atlas 27 Zaporozhye confectionery 43 Lviv khladokombinat factory (“LIMO”) Kyiv, Kyiv region Agro-industry Zaporizhzhya, Zaporizhzhya region Lviv, Lviv region FMCG FMCG 11 Berdychiv clothing factory Zolotonosha perfumery 44 MAIS Berdichiv, Zhytomyr region 28 and cosmetic factory Textile, clothing & footwear industry Cherkasy, Cherkasy region Zolotonosha, Cherkasy region Agriculture, food industry 12 Biopharma Manufacture of cosmetics Kyiv, Kyiv region 45 Mercury Pharmaceutics 29 ITW Systems Smila, Cherkasy region Kyiv, Kyiv region FMCG 13 Berdyansk reapers Production of LED equipment Berdyansk, Zaporizhzhya region 46 Molis Agricultural machinery 30 Ichnya milk powder Zaporizhzhya, Zaporizhzhya region and oil plant FMCG 14 Bratslav Ichnia, Chernihiv region Bratslav, Vinnytsia region FMCG 47 Moshurov canning factory Production of agricultural equipment Moshurov, Cherkasy region 31 Kievguma FMCG 15 Brovary aluminum plant Brovary, Kyiv region Brovary, Kyiv region Industry 48 Odeskabel Manufacture of metal structures Odesa, Odesa region 32 Kyiv Watch Factory Manufacture of cable products 16 Budfarfor Kyiv, Kyiv region Slavuta, Khmelnytsky region Manufacture of watches 49 Organic Original (TM “Ekorod”) Manufacture of sanitary ceramics Kyiv, Kiev region 33 Kremenchug plant of road machines Agro-industry, 17 VITAGRO (Kredmash) food industry Volochisk, Khmelnytsky region Kremenchug, Poltava region Agro-industry Mechanical engineering 50 Osnova Kyiv, Kyiv region *List of companies according to original version Business Magazine Construction

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51 Paton Turbine Technologies 68 Sumy bacon 85 Fanchi-Invest Kyiv, Kiev region Krovne, Sumy region Sebino, Mykolayiv region Aviation FMCG FMCG 52 Yuzhteploenergomontazh 69 T.B. Fruit 86 Fray Marta Kyiv, Kyiv region Gorodok, Lviv region Cherkasy, Cherkasy region Manufacture of metal structures and FMCG FMCG nonstandard equipment Talan 70 87 Khladprom 53 Pan Kurchak Romny, Sumy region Kharkiv, Kharkiv region Lutsk, Volyn region Manufacture of footwear FMCG for special purposes FMCG

54 Tribal poultry farm “Brovarsky” 71 Teksterno 88 Tsunami Rozhevka, Kyiv region Ternopil, Ternopil region Rozhishche, Volyn region FMCG Textile, clothing & footwear industry Woodworking industry, production of pellets, 55 Podolsky energy consulting 72 Thermo-Pak floor coverings Vinnytsia, Vinnytsia region Belaya Tserkov, Kiev region Designing and construction Engineering, equipment 89 Cherkasy factory of power facilities manufacturing of plate materials Cherkasy, Cherkasy region 56 Pologovsky oil extraction 73 Ternopil poultry factory Woodworking industry plant Ternopil, Ternopil region Pologi, Zaporizhzhya region FMCG 90 Cherkasy Instrument Agro-industry Making Plant 74 Ternopil dairy (“Molokia”) Cherkasy, Cherkasy region 57 Poltavakonditer Ternopil, Ternopil region Instrument making Poltava, Poltava region FMCG FMCG 91 75 Technologia Cherkassybioprotection 58 Renessans Sumy, Sumy region Cherkasy, Cherkasy region Mykolayiv, Mykolayiv region Production of corking Agrochemistry Furniture industry and packing materials 92 Cherkassy silk factory 59 Rentechno 76 Tigres Cherkasy, Cherkasy region Kyiv, Kyiv region Lipiny, Volyn region Textile, clothing & footwear industry Development and engineering of industrial, Production of goods Solar power plants for children 93 Black sea yachts shipyard Mykolayiv, Mykolayiv region 60 Cereal Ukraine 77 Trembita Shipbuilding Kharkiv, Kharkiv region Chernivtsi, Chernivtsi region FMCG Textile, clothing & footwear industry 94 Econia Zolotonosha, Cherkasy region 61 Sirius Extrusion 78 UKRAVIT FMCG Khmelnitsky, Khmelnytsky region Cherkasy, Cherkasy region Production of films and PET preforms Agro-industry, agrochemistry 95 Eco Optima Lviv, Lviv region 62 Stekloplast 79 Ukrainian berry Dnipro, Dnipropetrovsk region Markushi, Zhytomyr region Engineering, construction of Manufacture of metal structures Agro-industry industrial objects and double-glazed windows 80 Ukrainian graphite 96 Elvorti 63 Slobozhansky soap-house Zaporizhzhya, Zaporizhzhya region Kropivnitsky, Kirovograd region Kharkiv, Kharkiv region Industry Agricultural machinery Manufacture of personal construction care products 81 Ukrplastic Kyiv, Kyiv region 97 Elfa 64 Sparing-Vista Center Production of packaging Kyiv, Kyiv region Lviv, Lviv region materials Manufacture of cosmetics Instrument engineering 82 Ukrstalkonstruktsiya 98 Yuriia (TM “Voloshkove 65 Spetztekhosnastka Kyiv, Kyiv region Pole”) Kamenskoye, Dnipropetrovsk region Manufacture of metal Cherkasy, Cherkasy region Industry structures FMCG S-Rostok Ukrelektroapparat 66 83 99 Yarych Ivanovka, Mykolayiv region Khmelnitsky, Khmelnytsky Stary Yarychev, Lviv region Agro-industry region Instrument making FMCG 67 StudioPack Kyiv, Kyiv region 84 Favoryt-Agro 100 Yaroslav Manufacture of eco-vessels Korets, Rivne region Kyiv, Kyiv region and packaging Foil materials Agro-industry Textile, clothing & footwear industry

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1. AGROFUSION 4. AGROVET ATLANTIC Founded in: 2007. Founded in: 2006. Region: Mykolaiv and Kherson regions. Region: Kyiv and Cherkasy region. Area of activities: cultivation and processing of Area of activities: production of fodder, tomatoes, production of tomato paste. fodder supplements and premixtures for cattle, pigs and poultry. Export: Germany, Georgia, Belarus, Moldova, Export: CIS, Middle East and Africa countries. Belgium. The operation of the production processes in the AgroVet Atlantic Group Agrofusion Holding Company cultivates 20,000 ha of irrigated of Companies is fully automated, which eliminates the possibility of the land. It owns two greenhouse complexes with total capacity human factor influencing the quality of the final product. Annual output of 150 million seedlings, as well as two tomato-processing increases by 40 per cent each year. In Ukraine, a company’s product share is and tomato paste production plants, processing 500,000 tons about 10 per cent in the market for fodder additives. AgroVet Atlantic works of tomatoes in a season, or 8,000 ton per day. The first plant with about 2,000 customers, including large agricultural holdings, as well (Yuzhny (southern) plant) was built in Hola Prystan city of as large and medium-sized farms. In 2016, the Group of Companies actively Kherson region in 2008, the second plant (Severny (northern) developed the retail area and opened five retail stores during that period. plant) was built in Shevchenko village of Mykolaiv region a year later. Coca-Cola, PepsiCo, Nestle, Unilever, HJ Heinz 5. AGROLIGA companies performed second party audit for Holding Company’s enterprises. In 2016 Agrofusion Holding Company announced Founded in: 2013. its willingness to invest $50 million in the construction of a third Region: Kirovograd region. tomato-processing plant in Snigiryovsky district of Mykolaiv Area of activities: production of agricultural region. machinery. Export: Near abroad countries. TD Agroliga is a Ukrainian manufacturer 2. ALLSEEDS of sowing and tillage machinery. It manufactures advanced grain and row seeders and cultivators for inter-row cultivation under TM Planter. Spare Founded in: 1993. parts for agricultural machinery — one of the activities of the company. Region: Odesa region. Factory of the company TD Agroliga Is located in the city of Kropivnitsky (earlier — Kirovograd). The enterprise uses modernized and adapted Area of activities: sunflower, soybeans and equipment for cultivating and carrying out other mechanized field works rapeseed processing, production of vegetable taking into account the agroclimatic conditions of the country. oils and ground oilcake. Export: EU, South Africa and the Middle East countries, India, China. 6. ALFA-ETEKS The Allseeds Group is top 5 Ukrainian exporters of unrefined Founded in: 1993. sunflower oil, its share of the total Ukrainian vegetable oil export is 4,5 per cent. The Allseeds production facilities comprise oil Region: Cherkasy region. extraction plant and vegetable oils transshipment terminal. Both Area of activities: production and marketing of facilities are located in the Yuzhny port area. Plant’s daily production fish products. capacity is processing of 2,400 tons of sunflower (or 1,800 tons of Export: EU and Baltic countries. rapeseed, or 1,500 tons of soybeans). The terminal’s storage capacity is 42,000 tons of oil, with ability to load tankers of 100,000 gross Alfa-ETEKS is a fish factory with full production cycle: ranging from tonnage. selection of raw materials to production. The enterprise has its own advanced logistics system. Its production capacity is up to 4,5 million cans of canned fish per month. The factory structure includes oil-extraction 3. AVK facility, with capacity of about 1,000 tons of sunflower oil per month. The enterprise is one of the three market leaders for the production and export Founded in: 1991. of fish products. In particular, its canned fish is supplied to the EU and Baltic Region: Kyiv. countries (Latvia, Lithuania). Prior to trade embargo (until 2014), the company Area of activities: production of had supplied its products to Russia. confectionery products, cereal and salty snacks, coffee. 7. ARTEL Export: 53 countries. Founded in: 1992. 25 years ago, AVK was established as a cocoa beans supplier for Region: Mykolaiv region. Ukrainian confectionery factories. At present main production AArea of activities: production of software machine-tools, facilities of the confectionery company are located in the wood-processing and furniture manufacturing equipment. factory in Dnipro city. In addition, AVK uses the ‘private label’ global trend by placing orders at the production sites of other Export: CIS countries, EU, African and Asian countries. countries, such as the Czech Republic, Belgium. AVK is one of One of the largest private furniture companies in the south of Ukraine, three largest confectionery companies in Ukraine and in top 100 Artel is known in the world market primarily as the developer and confectionery companies in the world. AVK capacity is 50,000 manufacturer of software machine tools. The company is now producing tons of products per year. Its product range comprises 370 25-30 wood-processing milling machines, laser and plasma cutting items produced. The company has been continually updating machines of sandblasting processing, stained glass cutting tools and other its product range and upgrading the production lines. In 2016, tools for processing various materials. Facility site area is about 2,000 nearly $6 million were invested in new production lines. Over the sq. m., personnel comprises 200 employees. The furniture of Mykolaiv past three years, AVK has expanded the area of exports from 22 Artel Company repeatedly received diplomas from various international to 53 countries. exhibitions for many years.

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– Do you also produce a coff ee? Why particular this product? – Yes. And this is also my pride. If we talk about coff ee – it is also our challenge. We entered an absolute new market. We produce our coff ee in Spain, Germany and Holland. You know, chocolate is a good thing, but there is a concept of seasonality. I always thought of an additional product, and we have stopped at coff ee. We have been nurturing this project for a long time, and 3 years ago we became equal to this bold decision. We started last year. We have our own coff ee brand “Baristi”. Now, we have a line of instant coff ee, and in April we will launch a line of ground coff ee in vacuum packs. We will show what a really strong team can do.

– Tell us about development of export markets of the Vladimir AVK Company. Avramenko, – For us export, above all, is an opportunity to demon- CEO of the strate our mastership, to present products of Ukrainian confectioners in the international arena. Today, we are AVK Сompany represented in 53 countries around the world. In our portfolio there are unique products that we off er to certain markets, knowing their preferences and tastes. For example, we produce bar chocolate containing no sugar in a wide range (beginning from dairy to extra black “ALWAYS DO WHAT YOU WOULD chocolate) that is unique for Ukraine. These products are in demand not only in domestic market, but also abroad BE EVENTUALLY PROUD OF” – the AVK Company exports chocolate without sugar to the Middle East markets. We adapt our products to The AVK Company is one of the leaders of Ukrainian confection- the aesthetic senses of local consumers in other coun- ery market and one of the top-100 world confectionery com- tries, from sweetie papers to the recipe. It is very deli- panies. Today, the AVK Company occupies 7.6% in the Ukrainian cate work. For us export is a great opportunity not only confectionery market and 22% in the chocolate market. The to expand the geography of our presence, but also to be company’s product range includes more than 370 items. constantly in a trend, in order to develop our mastership. The company has been prosperous for a quarter of a century Today, we are very interested in the markets of such and is constantly developing. Today, export geography of the countries as Poland, Germany, Holland and England. In AVK Company comprises 53 countries all over the world. these markets we see a lot of potential and possibilities. CEO of the company, Vladimir Avramenko, in an interview with the magazine “Business” told us about the business of his life. – How does AVK Company realize the concept of Pri- vate Label? – The AVK Company has been existing for 25 years – The practice of private label is good, ﬁ rstly, because it long. What projects are you proud of the most? is an opportunity to gain additional knowledge, second- – I always wanted to do something brilliant. I think ly it is saving on equipment, thirdly – it is time-saving. I that one must always do what one can be proud of. Of think this is the right way. In 2006, we began “to prowl” course, we are proud of our trademarks: “Royal Charm”, actively the geographical spaces of Western Europe. We “Bam-Buk”, “Truffl e”, “Trufalie”, etc. This year the company looked for our place in the world, new products, and introduced the new product “Korolevskyi Shedevr”(Royal new opportunities. As a result, at the Belgian factory we Masterpiece) – the product over which the team has began to produce truffl es called “Belgian stories”. been working for more than 16 years. We have established a goal – to make a real masterpiece, and all these – In which direction is the company moving today? years we have striven for excellence. We have reached – Today, the AVK Company is a piece of the Ukrainian the indicators and criteria that we set at the start. I economy. According to the results of 2016, our company will say more, we have surpassed them. The product is had increased its production of confectionery by 25.3% unique, because it was made from Ukrainian raw ma- that allowed us to be at the top in the Ukrainian market. terials at 72%. Only nuts and cocoa are imported from After all, we, Ukrainians, are obliged to show the world abroad, and they are made of high quality. The sweets that we can produce competitive products nowadays. If were presented at international exhibitions in Germany we consider our world competitors, which are 4-5 times and Dubai. I am sure that it will take several years, and older than we are, then 25 years for the company – it’s you will see this product in the world research reports, not that much. I wish we could stand on a par with what on the shelves of shops in diff erent countries. We will do the humanity can be proud of for the next 25 years. Not everything to ensure that these sweets are up to other only Ukraine, which is already proud of it, but the hu- world brands in the chocolate industry. manity in a whole! I believe in the future.

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8. ARTON 11. BERDYCHIV CLOTHING FACTORY Founded in: 1998. Founded in: 1920. Region: Chernivtsi region. Region: Zhytomyr region. Area of activities: fire safety Area of activities: production of men and women cloths. equipment production. Export: EU countries and Israel. Export: EU, Asia, CIS, North America countries. Berdychiv Clothing Factory is an old-timer among Ukrainian clothing The Arton private enterprise specializes in development, manufacturers. Its production capacity allows for manufacturing of 40,000 production and sale of fire-safety appliances, such as men’s jackets a month alone, not to mention other product groups. In October optical smoke detectors, as well as thermal, combined, 2010 Berdychiv Clothing Factory signed a contract with the Hungarian Braga self-contained, linear, manual call-points, fire-control firm. Under this brand name man’s suits for the domestic market have been appliances, fire control devices, manual control buttons, manufacturing. The factory works with foreign partners in terms of raw materials. etc. In 2010, the Artar-Plus subsidiary was established, The main customers of the enterprise are firms from Hungary, Germany, the which has been producing a separate fire-alarm line United Kingdom, Austria and Israel. under technological and intellectual system, common with Arton. Arton products are protected with 102 12. BIOPHARMA patents. Since 2003, the enterprise has introduced a Founded in: 1896. quality management system, certified to comply with ISO 9001:2008 International Management System. More than Region: Kyiv region. 70 per cent of its products are exported to 34 countries. Area of activities: pharmaceutical manufacturing. Since the electronic industry in Ukraine is poorly Export: CIS countries, Georgia, Baltic countries, EU, Yemen, Korea, Mexico, developed, Arton is forced to purchase some components Australia. for its products abroad. Biopharma is a leader in the development and production of high-tech drugs, derived from blood donation, recombinant drugs and drugs based on spore 9. ATEM forming bacteria. In total it is more than 130 drugs of 11 pharmacological groups. Founded in: 1994. The Biopharma plant is equipped with cutting-edge quality control systems. The Region: Kyiv and Zhytomyr regions. company is a pioneer among CIS countries for the implementation of international standards for the quality of drugs, derived from blood plasma. More than 60 Area of activities: ceramic tile products of Biopharma were registered abroad. production. Export: RF, United States. 13. BERDIANSKI ZHATKY Atem Group of Companies began its activities as a Founded in: 2000. producer of expendable plastic materials for the food industry (PET molds and caps) and plastic disposable Region: Zaporizhzhya region. glasses. It has been working in this area up to now: Area of activities: production and marketing of agricultural equipment for grain the capacity of the PET molds production lines is 580 harvesting. million items per year. In 2003 ATEM entered the ceramic Export: Kazakhstan, Lithuania, Moldova, Georgia, Mongolia, Sudan and others. tiles market and became one of its leaders in Ukraine. The plant was founded in 1876. British Vice-Consul John Greaves established Production capacity exceeds 20 million sq. m. of ceramic once agricultural equipment repair shops in this area, which formed the basis and porcelain tile per year. Up to 40 per cent of ATEM for the future plant. Over time, it became the largest producer of agricultural products are exported through their representative equipment not only in Berdiansk, but in the whole Europe as well. After the offices and show rooms in purchasing countries. In the nationalization, the enterprise, already called the Pervomaiskyi Agricultural Ukrainian market, ATEM’ share is more than 20 per cent of Equipment Production Plant, became the sole producer of headers for ceramic and porcelain tile sales. In 2016, the Group became separate harvesting in the USSR. the winner of the ‘Leader of the Branch’ program in the Nowadays the Berdianski Zhatky plant produces nine basic models of grains Ceramic tile production category. headers, crop-collector platforms, sunflower harvesting units, etc. 10. ATLAS 14. BRATSLAV Founded in: 2015. Founded in: 1979. Region: Kyiv region. Region: Vinnytsia region. Area of activities: exports of organic foodstuffs. Area of activities: manufactures of equipment for livestock complexes, Export: Europe, North America. horticultural mechanization, designs and constructs livestock complexes on a The company has been developing exports of organic turnkey basis. products, such as raw honey, wild berries and organic Export: EU, CIS, North Africa, Central Asia and Middle East countries. walnuts. Atlas works with its own network of farmers Bratslav Group of Companies comprises 16 Ukrainian and foreign enterprises. in Ukraine and ensures the tracking of products to The Group produces equipment for breeding of cattle, pigs, sheep, goats and a particular region and farmer. The products are for horticultural mechanization. In addition, the Company provides project carefully controlled at the points of purchase and at and construction services, so the customer may order not only equipment for the factory. Independent analysis is carried out at the breeding and milking of cows, but the whole livestock breeding complex turnkey world’s leading laboratories. Natural products are package, followed by its maintenance. Some separate equipment of the Group is in being processed and packed on Ukraine’s production demand in Europe. In post-Soviet countries there is a demand for turnkey facilities. facilities. As a Ukrainian honey supplier, the company Company strives in the next few years to become one of three largest producers is accredited by the International Honey Exporters of such equipment in Europe. Organization.

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EXCEEDING EXPECTATIONS

The Brovary’s aluminum plant is one of the largest players in the aluminum a big direction for the production of market in Ukraine and Europetoday. This is a concern with its legendary history, high-quality aluminum products for stable market positions and more than optimistic export prospects. Active decoration of accommodations. Our modernization began in 2011 with occurrence of new owners and entrance of clients are construction companies, the plant into the industrial and investment holding company Alumeta Group. private developers. Perhaps, it would Today this enterprise is not only the leader of the national market, but also be simpler to answer the question, delivers products to more than 20 countries of the world, actively enlarges the what products of our assortment geography of export under the BRAZ brand. We will talk about prospects and would not interest the market of the plans of the company with the chairman of the board of the Alumeta Group, Middle East. Sergey Shapran. — In the Soviet Union this plant was — What export projects has already a giant. But after its collapse, it, like implemented by the plant? What many others, had almost stopped new projects are ready to off er? its work. How did you manage to — I wouldn’t like to accentuate some restore the enterprise and enter individual projects. We are right fully the international market? proud of every our satisfi ed custom- — In its development, scope of ca- er and partner. It is important not pacity, production, and the most im- only to understand that the market, portant — the quality of products — industries and competitors are con- we have long overtaken those times. stantly developing, but also to out The territory occupies more than 26 run them. The most important thing hectares, we still have where to grow is that today we have a really full- and develop our selves. We constant- scale modern production of a closed ly modernize production, invest in in- cycle — from the production of alu- novations, purchase quality modern minum to the fi nished product. This equipment, automate processes, im- is a giant plant, which has several prove logistics, widen sales channels, directions and an extensive sales in- raise quality standards and introduce frastructure. As for new projects, we new control technologies. The in- have an individual approach to each crease of production eff ectiveness of them. We always apply all our is also condition to the fact that we knowledge, skills and experience for provided capacity utilization for 24 exceeding expectations of customers hours a day and 7 days a week. The and doing more than just complete company began to contribute much an order. industries as the food industry. Now Sergey more time and eff ort to assortment we are on the fi nal stage of obtaining Shapran, policy, massively accelerated devel- — Which countries do you have the certifi cates required to work in opment and introduction of new cat- Chairman of work experience of the plant with? the North American market. egories and lines. We are developing the board of the — Today we already supply products Alumeta Group the brand. to more than 20 countries. The geog- — What can the plant off er for the raphy of our supplying of products is Middle East market? — How do you succeed to compete almost doubled, with considering of — The question is very extensive; I in the global market? export of our customers’ products. will focus on key positions. Alumeta — Everything is simple and diffi cult at Main countries with which we are Group has several divisions, in par- the same time. Correlation of money working now are Poland, Germany, ticular, BRAZ Construction. It is an and quality, speed of decision-making, France, Belarus and the Baltic States. engineering company that produces active management, an international But we are also confi dent that we complex and high-tech façade solu- team of professionals (we have a lot of have something to interest countries tions, door and window systems, in- foreigners with a global background), of the Middle East and the African ternal partitions for offi ce and living fast modernization of production fa- continent. spaces of diff erent complexity and cilities, understanding of trends and confi guration. The industrial enter- proactive response, work carried out — Are the products of the plant prise develops constructive elements ahead of time. Of course, the intro- certifi ed? for solar batteries. We believe that duction of a new system of staff mo- – Of course, they are. The plant has aluminum as a material is the future tivation and an individual approach to ISO, CE and DIN certifi cates. As we of solar energy, because the use of it each client gives its results. Complex have diff erent directions, the plant’s makes it possible to signifi cantly re- and high-quality work allows us to products are certifi ed in accordance duce the cost of implementing of the withstand not only internal, but also with REACH RoHs’s requirements, technology and reduce the payback global rivalry, take leading positions which allow us to work with such period of power plants. Also we have and always be in progress.

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Are sent hot topic has been energy A RAY OF LIGHT IN A DARK effi ciency projects as threefold hikes in natural gas and electricity prices have fi nally prompted the fulfi llment REALM of all the calls in past years to invest funds for energy saving. Also worth mentioning are the prospects of he loss of part of our the Ukrainian military industrial territory, political instability, complex, which found a new lease T trade restrictions imposed on life following to the military by our main economic partner, aggression of our northern neighbor. unpredictable tax policy, restrictions In recent years, the Ukrainian on the withdrawal of capital, the army has increased spending on absence of systemic results in the modernizing and purchasing new fi ght against corruption − all this military equipment as this year’s does not make Ukraine attractive budget may exceed $400 million. to foreign investment in any way. It is not a secret that the Ukrainian As a result, for the last three years, military industrial complex is one of our country has only had hope the world’s leaders and Ukraine holds in the assistance of international a strong place among the world’s fi nancial organizations and Western top ten armaments exporters. But governments to avoid the next the main problem of all the previous economic shock. But any run of years was that the Defense Ministry bad luck ends sooner or later and showed no interest in the new Ukraine has been recovering, though developments of Ukrainian industry. slowly. Private investors have already And if there is no demand for assessed the fi rst signs of economic equipment from the domestic army, growth, which is evidenced by than other states will be reluctant to successful placement of international take it. Therefore, we had to accept bonds by Kernel at the beginning lackluster modernization projects and of 2017. We look forward to the the improvement of old, improving gradual restoration of confi dence in products, electronics and acoustic Igor developments. This, in its turn, Ukrainian debt instruments, followed systems. Mazepa, hindered the development of our by an interest in more long-term Only the ignorant does not national scientifi c and technological projects. And despite the abundance tout agriculture as one of the Concorde Capital base. At present, when we have CEO of “black holes” in our economy, we most promising sectors of our domestic demand for new models of have created new opportunities in economy. In recent years, it military equipment, our enterprises recent years. has been agriculture that has have been given a unique opportunity The main achievement Ukraine can stabilized an economy that has to expand the range of producing boast of is the signing of a Free Trade experienced several crises over new equipment for external markets. Agreement with the EU. Its taking the past decade. Despite the land If we talk of Ukraine’s investment eff ect opens the vast European Union often not being exploited in the opportunities, which are dependent market for Ukrainian manufacturers. most efficient way, and equipment on forthcoming reforms, we see Free access to this market, as well depreciation being estimated a huge potential in the healthcare as the availability of highly qualifi ed at 70 percent, grain production industry. We expect that, following specialists in the industrial sector, in Ukraine in 2016 amounted to the healthcare reform of 2017-2018, makes Ukraine a promising platform almost 66 million tons, which is private medicine, − rather small in for the creation of new industrial 2.3 times more than ten years ago. size at the moment – will receive a Europe-oriented capacities. Our Sunflower production increased great boost in development.We also soil is fertile and our labor force is to 13.6 million tons, which is 3.3 look forward to the planned pension cheap, though low-productive. In times more than ten years ago. reform, which will open the doors to other words, Ukraine can become a This gives hope for the revival of private pension funds, and fi nancial springboard for any Eastern producer small-scale farming. Experts say resources that our country needs who desires to conquer the European that Ukraine is able to harvest so much these days. In our turn, we market. And while Eastern investors 90-100 million tons of grain a look forward to the reincarnation of are only eyeing such opportunities, year, which means we still have the local stock market and manifold some Western producers have been the potential to grow. Land growth in the value of Ukrainian actively using this “open window”. reform should be the impetus assets. We are very hopeful that Thus, the largest European car for new development, namely, these reforms will make our country manufacturers, including BMW, the establishment of an open one of the most popular places for Volkswagen, Mercedes, Opel, Renault agricultural land market being international capital investment in the use Ukrainian cable and conductor urged by the IMF. nearest future.

Q_1259_26.indd 26 24.03.2017 23:22:39 General Partner Strategic Partner

15. BROVARY ALUMINUM PLANT 18. VELAM Founded in: 1979, since 2011 it is in private Founded in: 1991. property. Region: Mykolaiv region. Region: Kyiv region. AArea of activities: production of mattresses and Area of activities: aluminum profile various sleep accessories (pillows, blankets, sleeping production. bags). Export: EU and Middle East countries. Export: CIS and Western Europe countries. Brovary Aluminium Plant, part of Alumeta Group of All of the company’s products have undergone international quality Companies, in 2013 completed its modernization, which made certification, they meet high environmental requirements. In 2007 Velam it possible to launch 24-hour work of tool-shop, moulding, declared accession to the initiatives of the UN Global Compact. As company press, galvanic and paint workshops. This has enabled the workers say, more than 1 million Ukrainians sleep on company-made production of aluminium profile, aluminium constructions, mattresses. mould blocks of different diameters, making galvanic protection coating, and manufacturing goods of wide 19. VINYL consumption. The plant produces more than 8,000 items Founded in: 1995. of aluminum profile for various purposes and of different Region: Dnipropetrovsk region. configurations. The capacity of the enterprise is 5,400 tons of aluminum profile per quarter. The products of Brovary Area of activities: wall paper production Aluminium Plant are made in conformity with 305/2011/EU Export: EU, CIS, Central Asian, Caucasian, Persian Gulf Regulation and can be CE marked. In 2017 Brovary Aluminium countries. Plant updated its extrusion production and started operation The Vinyl Wallpaper Factory is one of the leaders of wallpaper of two new presses. production in Ukraine. Under Lanita trade mark, the enterprise has been producing a complete assortment of paper and non-woven 16. BUDFARFOR wallpapers. The company has a modern technology base that combines a Founded in: 1910. closed cycle of production: the design studio, section for laser engravings of the rolling shafts, preparation of vinyl paste and production lines. The Region: Khmelnytskyi region. capacity of the factory is more than 3 million rolls of wallpaper per month. The Area of activities: sanitary ceramics enterprise employ about 500 workers. and bathroom furniture production. Export: CIS and Western Europe 20. VOLODYMYR-VOLYNSKYI POULTRY FARM countries. Founded in: 1958. The company is represented by Colombo trademark Region: Volyn region. in the market. The first batch of sanitary ceramics was manufactured in 1910. Company’s portfolio includes more Area of activities: production of chilled and than 100 items produced (toilets, washbasins, bidet, baths, frozen chicken. etc.). The combine has introduced advanced technology to Export: Iraq, Egypt, Djibouti, Somalia, Azerbaijan, mold fixtures into polymeric forms under high pressure. The Jordan. production capacity of the combine is more than 3.1 million Volodymyr-Volynsky poultry farm is one of the three largest producers of units of sanitary ceramics per year, more than 50% are for chicken meat in Ukraine; it occupies 5% of the domestic chicken market. The export. enterprise has five affiliates: in Lviv, Kyiv, Vinnytsia, Zhytomyr and Volodymyr- Volynsk. Farm infrastructure comprises 100 poultry houses, located in 11 17. VITAGRO production team subdivisions, its own slaughterhouse, and the compound feed mill. Enterprise capacity is about 4 million heads of poultry. On average, Founded in: 1999. the company produces more than 200 tons of meat in live weight per day. The Region: Khmelnytskyi, Ternopil and production capacity of the slaughterhouse is 6,000 chicken heads per hour. Rivne regions. Volodymyr-Volynskyi poultry farm sells its products under Chebaturochka Area of activities: crop farming, horticulture, seed Selianska Kurochka TM, in compliance with ‘halal’ standard. Since 2015, the production, livestock farming, road construction and repair, company has been actively expanding the export of chicken and working on asphalt and brick production. the expansion of sales geography. Export: Moldova. VITAGRO Group of Companies cultivates 60,000 ha of land, 21. VOLODARKA growing wheat, barley, corn, soybeans, rapeseed, sunflower Founded in: 1923. and sugar beets. Its own seed production plant provides crop Region: Vinnytsia region. farming sector with seed material. Fruit and berry plantations Area of activities: production of men’s clothes. occupy more than 540 ha. In 2014, first refrigerator storage with a controlled atmosphere and simultaneous storage Export: EU countries. capacity of 5,000 tons of fruit and berries was put into Volodarka was established as a workplace for unemployed operation. The number of pigs in VITAGRO farms is 60,000 tailors. As a result, 15 professionals helped the enterprise heads; dairy herd consists of more than 5,000 heads. to become the leader of the branch. In 1933 Volodarka owned 10 per cent of VITAGRO operates its own compound feed mill. The company the country’s gross domestic product of garment manufacturers. In 1996, the targets, inter alia, are to increase the land bank to 100,000 ha, enterprise was privatized. The factory now produces more than 1,000 product purchase a sugar plant, build a grain elevator with 100,000 items per day and works with many brands. Hugo Boss men’s suits were tons capacity, and a section of deep freezed berries. manufactured once at this factory.

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How has the Bratslav Regional Enterprise managed countries. For example, 40 per to establish production, unique for Ukraine and the cent of Bratslav equipment has been exported, and world, meantime solving other businesses issues? many Ukrainian companies could envy it. Part of it is being produced right at the he latest history company’s foreign enterprises, of agricultural located in Russia, Belarus and T machinery in Kazakhstan. There is a trade Ukraine began and service Bratslav Company in 1985 when the Bratslav representative office in Poland, plant for haydriers production and work is under way to was headed by Nikolay establish its representation in Mikhaylenko. Instead of the Iran. useless mounting of unwanted But exports and domestic equipment, the new leader sales are not limited to separate had taken on market research aggregates or even whole (although there was no such technological complexes. concept in the socialist Ukraine) The Group of Companies has and examination of needs. In successfully implemented the 500 sq m workshop, the turnkey technical solutions for production of dairy pumps, livestock breeders, breeding being in short supply in those pigs, sheep and goats. Bratslav times, and other elements of Pyotr Mikhaylenko, company can provide design, milking units equipment was construction, technological Bratslav DLC CEO: established. And in the early infrastructure services of 1990s, Bratslav was already livestock breeding complex on a recognized by the Cabinet of — The principle of our work in the external markets is as turnkey basis with subsequent Ministers of Ukraine as the follows: we supply the equipment, with off ering of services maintenance. lead developer and producer of to be provided; if the size of the market allows us, the There is a high demand milking units facilities. However, representative offi ce is to be opened in that country, then for the design and delivery of the needs of Ukrainian our know-how is transferred there and the production starts turnkey facilities in the republics livestock farmers were not at that location. Where the demand exists, there we off er not of the former USSR. Recently in confined to this, so Bratslav only equipment and services, but also integrated engineering Kazakhstan, a modern turnkey inhabitants continuously turnkey solutions. livestock complex was put into expanded the production range operation in the vicinity of Aksu in order to meet the demand city. And in one of the tenders for any equipment for livestock Nikolay Mikhaylenko in Georgia with participation complexes. The company implemented a fully closed cycle of two prominent European recognizes that the simplification of production, ranging from producers of agricultural of the work of others is research and development to equipment, Bratslav company considered to be its mission. spare parts and components took first place with its complex ‘We do not just sell equipment, of own manufacturing. The project and construction offer. we solve the problem of our Bratslav Group of Companies Bratslav DLC CEO Pyotr partners’, - as Mr Mikhaylenko includes a research laboratory, Mikhaylenko does not consider admits. a design bureau, an engineering this event to be accidental: in the This approach has proved to department, and a complex In 2016 Bratslav 30 years of scientific, practical be efficient, having started with design department. There are Group of and productive activities, dairy pumps manufacturing, the unique samples among the Companies his company has learned to company ended in production company’s products. Bratslav doubled the compete on an equal footing of the full range of equipment. manufacturers are the only ones production of in the international market of The former regional plant has in the world to produce robotic equipment agricultural equipment. now become an international milking units. 90% of the parts Medium-term plans of the Bratslav Group of Companies, for its own equipment Bratslav company for the next few years comprising 16 Ukrainian and produces on its own. are to enter top 3 of the largest foreign enterprises with more Bratslav products are producers of such equipment in than 700 employees. delivered in more than 20 Europe.

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22. GOLDEN TILE 25. ZHYTOMYR RUD CREAMERY Founded in: 2005. Founded in: 1981. Region: Kyiv region. Region: Zhytomyr region. Area of activities: production and Area of activities: production of ice cream, butter, other dairy distribution of ceramic tiles. products and frozen vegetables. Export: more than 20 EU, Asian and Export: EU countries, Israel, Japan, United States. Persian Gulf countries. In 1996, Zhytomyr Creamery PJSC was established after privatization of Zhytomyr The Golden Tile Group is the official distributor of the Kharkiv Meat-Processing Plant. Since April 1, 1998 Zhytomyr Creamery has been Tile Plant. In addition to plant in Kharkiv, the Group comprises producing its products under Rud trademark. The Rud Company has its own Maidan-Vilsky Quarry LLC (Khmelnytskyi region), pegmatite raw materials base, it controls products quality at all stages of production. In production and enrichment with capacity of 50,000 tons per September 2014, it has successfully undergone testing of the European Union month and Shakhtostroy production association (Donetsk). Mission on quality standards for Ukrainian dairy products. Every day, Rud Shakhtostroy is licensed to extract white-burning clay from Company processes 300 tons of milk. The company’s key product is ice-cream: Veroliubovskyi deposit. Reserves of deposit are 5 million tons it produces about 150 tons of ice-cream per day. Production line is provided of clay. The net profit of Kharkiv Tile Plant in 2015 accounted with high-quality equipment, unique to Ukraine, such as: Straightline SL1100 F2 for 130 million UAH (in 2014, it was 80 million UAH). In 2016, production line’s capacity is about 27,000 ice-creams per hour and 600,000 ice- the factory started operation of the seventh production line creams per day. This is the first line, introduced in Eastern European countries, for manufacturing large porcelain tiles, with the possibility of with such large ice-cream production capacity. rectification, glazing, surface polishing, creating various effects. The production capacity of the line will be 3 million sq. m. As a 26. KOBZARENKO PLANT result, total output reached 18 million sq. m. Founded in: 1993. Region: Sumy region. 23. GALEKS AGRO Area of activities: Production of agricultural Founded in: 2008. machinery. Region: Zhytomyr region. Export: CIS, EU, Africa countries. Area of activities: production of organic Kobzarenko Plant was founded as a Ukrainian-German Fligel enterprise; it received crops and livestock. its current name in 2008. Now it is a leader in the production of tractor trailers in Export: Switzerland, Germany, Hungary, Ukraine, it produces several dozens of agricultural and special equipment, such as Netherlands, Italy, United Kingdom. bunkers, tanks, screws, grain-packing equipment, wood shredders, etc. Total sales in The company grows following crops: wheat, spelt, rye, barley, 2016 accounted for 500 million UAH. Plant employs 615 workers. According to the oats, Australian winter peas, beans, vetch, buckwheat, millet, plant director, Anatoly Kobzarenko, in 2017 he is going to start exporting products to soybean, corn. Livestock specialization: Breeding of milk-and- Norway, Spain, France, Denmark, Iran and South Africa. meat Simmental breed cattle stock. In 2010, an innovative European standard milk-product complex for 500 heads of 27. ZAPORIZHZHYA CONFECTIONERY FACTORY cattle stock was established to develop organic farming and Founded in: 1945. reproduction of milk-and-meat Simmental breed in Polissia area. In 2012 Galeks Agro was a partner of the Swiss-Ukrainian Region: Zaporizhzhya region. project ‘Development of the organic market in Ukraine’. The Area of activities: production of confectionery products. construction and modernization of the milk-product farm for Export: Latvia, Estonia, Georgia, Kyrgyzstan, Uzbekistan, Tajikistan, Lithuania, 850 heads of cattle stock in Horodyshche village of Novohrad- Azerbaijan, Armenia, Germany. Volynskyi region, where 359 heads of Simmental bred heifers In a fairly long history of Zaporizhzhya confectionery factory were both ups and have been imported. In 2013, the enterprise was certified by the downs, up to the complete shutdown of the enterprise. However, the company Organic Standard international certification body. is now actively developing, conducting general reconstruction. To reduce power consumption, production lines are being modernized. The enterprise’s capacity is 24. ESCADA-M aimed to produce 900 tons of products per month. The factory produces different kinds of candy, lollipops, halva, cookies and waffles. Founded in: 2007. Region: Rivne region. 28. Z OLOTONOSHA PERFUME-COSMETICS FACTORY Area of activities: production of Founded in: 1934. veneered chipboard for furniture industry. Region: Cherkasy region. Export: UK, Denmark, Sweden, Switzerland, Poland, Belarus, Moldova. Area of activities: production of perfumery and cosmetics. Escada-M produces environmental-friendly veneered chipboard, Export: The Russian Federation, the Baltic countries, Germany, Greece, Romania. fiberboard, medium density fibreboard, plywood and carpentry In 80 years of operation, the essential oils reprocessing plant has grown into a sheets. The use of the latest equipment and the quality control multi-product perfume-cosmetics factory, which nowadays produces about 150 system for raw materials (both sheet and veneer) has provided original products, such as perfumes, colognes and modern cosmetics based on the enterprise with export contracts. In addition, Escada-M medicinal herbs and biologically active substances. The factory has registered Zlata provides full range of related services (optimal cutout, detailed trademark. All products in the factory have been certified at its own lab, which is cutting, quality edging). All orders are packed into protective responsible for testing in cosmetology with the issuance of the relevant documents. modern materials. Optimizing all processes allows any order In addition to its own cosmetics, the enterprise also manufactures customized to be delivered within 10 days of the date of its registration by products under customer’s trademark. The main customers are cosmetic firms in Company’s representative. Ukraine, the RF and the Baltic States.

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29. ITW SYSTEMS 33. K REMENCHUG ROAD BUILDING Founded in: 2010. MACHINES PLANT (KREDMASH) Region: Kyiv region. Founded in: 1870, 1994 — in private Area of activities: manufacture and installation of property. LED lighting systems. Region: Poltava region. Export: representative offices in Germany, Poland, Slovakia, Estonia, Bahrain and Area of activities: production of Saudi Arabia. special machinery for road construction. ITW Systems Company specializes on the implementation of integrated solutions Export: 50 EU, Asia, Africa, Latin America and the CIS countries. in the field of energy-efficient LED lighting for the industry, municipal sector, retail and public premises. All products of the company meet the standards of In 2016 Kredmash sold 32 asphalt mixing and ground-batching CE and RoHS. Over six years, ITW Systems implemented more than 500 lighting plants. 11 of them were exported. Total sales account for projects of different purposes. The most well-known are the modernization 498,4 million UAH. 7,5 million UAH were invested in production. of the lighting of the Borshchagovsky Chemical and Pharmaceutical Plant, the In particular, the funds were allocated to the acquisition of new Coca-Cola Beverages Ukraine plant, the development and implementation of the production equipment and control devices. Kredmash has its lighting project at the Danone plant in Kremenchug. portfolio of orders, scheduled for the first half of 2017. The new model series will be represented in the market, which last year received an international CE certificate and were successfully 30. ICHNYA DRY MILK AND BUTTER PLANT tested under industrial conditions. For 2017 production of the first unit of high performance asphalt mixing plant (200 tons/hour) Founded in: 1965. has been scheduled. Region: Chernihiv region. Area of activities: production of dairy products. 34. KROLIKOFF Export: 30 countries. Founded in: 2010. The plant processes 100-180 tons of milk per day, depending on the season; it is able to produce up to 20 tons of dry milk and butter per day. About 20 per cent of Region: Cherkasy region. raw materials are obtained from seven dairy farms, which, as well as the factory, Area of activities: production of rabbit meat. are the part of Rostok-Holding Group. The farms are located in Chernihiv and Export: CIS countries. Sumy regions. In addition to dry milk and butter, Ichnya plant produces whole milk products, soft cheeses. In Ukraine, the company is marketing its goods under In 2010, former professional hockey player Andrey Bushchan Molochnyi Svit TM, abroad — under Funnycow TM. Since 1993, the company founded the Krolikoff Company. To obtain knowledge, the has been developing an export direction and is selling now its products in 30 businessman and his team went to France, where they purchased countries, including U.A.E., Egypt, Tunisia, China, Georgia and others. the first batch of 6,000 rabbits. Nowadays, the enterprise has integrated mechanization, automation, computerization of all production processes: the premises are provided with regulated microclimate, the automatic supply of water and fodder. Rabbit 31. KIEVGUMA farm complex is a closed-cycle enterprise, which includes rabbit- Founded in: 1930, 2008 — reorganized into LLC raising farms, breeding farms, compound feed mill, modern Kievguma. slaughter and processing unit, its own logistics. One of the sources of profit is raising and marketing of rabbit breeding Region: Kyiv region. stock. Area of activities: vanufacture of products from rubber, silicone, TEP, latex, plastic. Exports: Kazakhstan, Georgia, USA, Hungary, Poland, Moldova, Belarus, Azerbaijan, Armenia, Turkmenistan, Germany, Russia. 35. KUPYANSK MILK CANNING FACTORY In 2006, the company carried out modernization, which allowed for the first time in Ukraine to establish industrial production of rubber products from silicone. Founded in: 1957. In 2015, the company received the TÜV Austria certificate of compliance of the Region: Kharkiv region. management system with the requirements of the standard EN ISO 13485: Area of activities: production and 2012. The plant produces products for industry, medicine, agriculture and other marketing of dairy products. industries. Export: Kazakhstan, Uzbekistan, Armenia, Netherlands, Algeria, United States, China, Syria. 32. KYIV WATCH PLANT 60 years ago, the plant was founded as a condensed milk production factory. During that time, other dairy areas were Founded in: 1997. opened, but dairy canned products have always been on the first Region: Kyiv region. place. Since the foundation, the production capacity of canned milk has tripled. In 2012 the factory was the first among Ukrainian Area of activities: watch production. condensed milk producers, setting a line for the packaging of Export: EU countries and Canada. this product in Doy Pack, specially designed for the bottling of The first produced watch was dedicated to flight of the condensed milk. The total processing capacity of the enterprise is first cosmonaut of independent Ukraine. Kleynod, Ukraine’s most world famous 600 tons of milk per day. In addition to canned milk, the enterprise watch brand came to being in 2002. Watches are being produced on the basis produces whole milk products, UHT milk, butter, dry dairy of the Swiss mechanism, but with a fully Ukrainian design. Today, the factory products. The company strictly monitors the quality of milk being produces 150 different collection models. The launch of an online shop for United processed. 100 per cent of milk supplied to the factory is chilled States and Western European markets has been planned. raw materials from big commercial farms.

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FINANCIAL MAKEUP

krainian producers need to How to plan an export Trade with the Russian Federation be aware of the following has been declining, although Ufive key factors to be taken strategy for Ukrainian Russia still occupies a leading into account in the planning of an position in the volume of exports export strategy. businessmen from Ukraine. As a consequence of the implementation of a free trade 1 Legislative assistance. area with the EU and a number of Concerning EU markets, Ukrainian agreements between Ukraine and legislation has a number of the EU, exports to the EU countries restrictions on standardization, have increased by 8% over the past certification and a number year and will potentially continue of other “red flags” aimed at to grow. curbing the export of Ukrainian It is no secret that many Ukrainian products. Domestic producers companies have double reporting: are now unable to take full management reporting (actual) advantage of the free trade area and official reporting (submitted between Ukraine and the EU. This to the state authorities). This agreement has an evolutionary is a distinctive feature of character, its implementation will countries with economies in take more than one year. But the transition that prevents potential first legislative steps have already investors from seeing what they been taken, for example, the Law want to see. Firstly, it is actual of Ukraine “On amendments to reporting, which at least 90% certain Ukrainian legislative acts reflects company’s real financial of Ukraine on foodstuffs”, adopted performance. Secondly, it is and entered into force on July 22, information on duly paid taxes. It’s 2014 (draft law No. 4179a). odd if a company with an annual revenue of 500 million UAH pays 2 Standardization, namely, 100 thousand UAH of taxes per conformity of Ukrainian products year. with EU standards. In the Investors want to see the EBITDA framework of EU quotas, Ukrainian indicator, which is two thirds products must be brought into line operating income, rather than with European Union standards. other income. They are also interested in the dynamics of 3 Quota allocation is one of the the company’s growth, foreign methods of protectionist policies environment, volume of the Artyom exchange earnings in the form of and the integration of countries. market, barriers to entry and Kovbel, export contracts, a transparent The EU establishes quotas to the the value of the “pie” segment, legal structure of ownership with a products of those countries that which is targeted by the producer, Kreston parent company that directly owns GCG partner are not members of the integration SWAT analysis, product need, a company/holder of assets and an group. target audience, country market operating company, and not with a characteristics, etc. million of self-employed unrelated 4 Logistics and Customs. For The new export directions of individuals, registered as nominee export, the Ukrainian producers recent years are the countries of directors. will have to obtain a permit, they Asia and the Middle East: Israel As the completion of this financial will have to think about logistical (import of eggs), Saudi Arabia and makeup, the investor would communication with the countries, Egypt (supply of chicken), U.A.E., like to see an audit opinion and the final destinations of their Iran, China, India. In Africa, in view confirmed financial statements products. of the very low purchasing power for the minimum of the last two of the population, mass products reporting periods, certified by a 5 Strategy. Ukrainian producers with low cost and long retention representative of an international have to arrange strategic and periods (e.g. wheat, soybeans audit company. Taking these key tactical activities to take on corn, tomatoes, the value of the factors into account will make it the particular market, such as: “pie” segment, etc.) have been much easier to communicate with awareness of the competitive exporting. a potential investor.

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12-13/27.03.2017 MHPology Evolution of the largest Ukrainian agricultural holding company, Myronivsky Hliboproduct (MHP) via quotes from MHP’s owner and CEO Yuriy Kosyuk

1996. How it all began 2003. Financial romance “In 1996, my attention was drawn to Myronivsky The beginning of cooperation with the International Groat and Feed Plant. This asset came to me along Financial Corporation (IFC). with one of the grain elevators. The plant was shut “It was mentally very hard to “flip a switch”, when you down, because poultry breeding was on the decline. have been ruling everything single-handedly, and then, some Together with the plant’s director, we went to the strangers come over and begin to tell you how to run your nearby Peremoga poultry farm to make a business business. You realize only afterwards, what a good teachers deal. In response to the question: “why the farm they were. I have learned a lesson from them, and am very is not operational?”, the farm’s owners gave us a positive about it today. We are not afraid of mistakes, and quite expected answer: “no money”. I gave them I am not afraid of people who have a critical look at what’s money, which they have successfully squandered – going on around us”. just pocketed it, because they couldn’t even steal it Investgazeta, 2011 professionally. But in 1997, we have already begun to produce chicken at this farm, working not as 2004. Big construction owners but as investors”. Construction of one of the largest investment projects, Forbes, 201 Myronivska Poultry Farm, continued until 2009 and cost Yuriy Kosyuk $400 million. “We have never faced the 1998. Earnings and purchases problem of lack of money for construction of a particular “The first few million dollars made in the grain project, and have never constrained ourselves by the and alcohol trade was enough to buy and launch project’s size. Need $700 million for construction? Here it this farm (Peremoga). The financing burden is. Need $1 billion? No problem!” was minimal – we could borrow as much as Forbes, 2012 we wanted. We bought Druzhba Narodiv Nova for peanuts, forking over some $2-3 million. In 2006. Reaching the billion mark 2002, we bought Orel farm for $6 million from the Construction of Myronivsky Meat Processing Plant late Yuriy Orlikov, the publisher of Mirror Weekly “Lehko” (Lehko!TM), the first plant in Ukraine newspaper. producing semi-finished meat products, is Forbes, 2012 finished. The same year, the company has issued $250 million worth of 1999. New horizons Eurobonds and started a preparation “After traveling abroad in 1999, I for IPO. “I didn’t go for IPO in came to realize that Ukraine must 2006, because I told myself: I won’t export poultry, not import it. We go for it until I’m worth a billion. have all key production components I was valued at $800 million. A in place: feed, energy and wages year later, I was kicking myself. lower than in other countries”. As soon as a “window” has Forbes, 2012 appeared in 2008, we went for IPO right away. But you have 2002. Nasha Ryaba to understand what you are “Vadik (Pustotin, Director for floating your stock for: money Strategic Planning at D’Arcy to finance the company’s advertising agency – editor’s note), development, expertise, or make me a brand that is miles you just want to stash some ahead of anything else”. cash for yourself. If you Three months into the advertising need nothing of that, there is campaign of the Nasha Ryaba no sense to even think about brand created by D’Arcy, the brand’s IPO. If you’re worth less than recognition rate has reached 30% $100 million, don’t plan IPO, versus the forecasted 15%. either. You’ll get no liquidity”. Forbes, 2012 Forbes, 2013

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2008. Floating In May 2014, the International Financial Floating 20% of the company’s stock on the London Corporation (IFC) announced the issuance of Stock Exchange brought almost $323 million. a $250 million loan to finance development of Yuriy Kosyuk became an official billionaire, and Vinnytsia Poultry Farm and refinance Eurobonds, Myronivsky Hliboproduct the first Ukrainian agricultural repayable in 2019. company making IPO on the London Stock Exchange’s main trading floor. In August, Yuriy Kosyuk was awarded the title of the 2014. Changes in the society Hero of Ukraine and the Order of the State. “I learned “Every one of us should get his butt off the chair and from my friends that I was awarded the title of the Hero of start cleaning his small corner. Then, we’ll become Ukraine. They saw an announcement on the government’s an example of the right behavior, teach people to tell website, that I was awarded the Order of the State. It was a the honest from dishonest. That’s when changes in the surprise for me. Of course, I was pleased, because it means society will start”. that others appreciate what you have done”. Conductors of Changes, Third Directors’ Forum, Expert, 2010 2016 2010. Vinnytsia start 2016. Export the new way The beginning of construction of Vinnytsia Poultry Farm “Europe protects its market! They clearly protected in Ladyzhyn. MHP planned to invest $1.5 billion in this their interests, and Ukraine lost. That’s why I project by the end of 2015. believe that the free trade area, which they so “The farm in Ladyzhyn is a copy of two Myronivsky strongly advocate today, is a deceit of Ukraine poultry farms. Back in 2004, when we began to build as well. Just imagine: our agricultural holding Myronivska Poultry Farm, we believed that we were company, Myronivsky Hliboproduct alone produces building a mega-enterprise. Until then, MHP’s largest 700 thousand tons of meat a year, exporting poultry farm was producing 60 thousand tons, and 250 thousand tons, while Europe gave the entire we planned that Myronivska farm would produce 220 Ukraine a duty-free quota of mere 16 thousand thousand tons. It was a huge capacity for us back then, tons. What free trade are we talking about?” an unreal size. But we made a big mistake: the farm was Voice of America, 2016 not designed for further development, because in 2004, we couldn’t even think about increasing our production “In Ukraine, we invest in the expansion of production. capacity. Design of the poultry farm in Ladyzhyn allows If we’re talking about expansion of processed foods, it for that”. naturally would be the Saudi market, and in principle, Investgazeta, 2011 the entire Arab market in general. For Europe is not a panacea. Generally speaking, the largest importer in 2011. Biogas monetary terms is Canada”. MHP begins development of Biogas, a pilot project NB Business, 2016 envisaging construction of a biogas station operating on poultry manure on the basis of Oril-Leader Poultry Farm $3.5 million has been invested in 2016 in in the Dnipropetrovsk Oblast. The company’s goal is the launch of a meat processing plant in energy efficiency and independence. the Netherlands. Also, we opened a sales “It will account for almost 30% of the company’s new and distribution office in the UAE. In 2016, business created from the scratch, which would make almost the export volume has increased by 53% to all energy consumed inside the company “green”. 190 thousand tons of chicken, the company’s UNIAN, 2011 revenues amounted to $1.1 billion (56% of which was generated by export) and net profit to 2012. Cold calculation $69 million. A test launch of Vinnytsia Poultry Farm’s first line with the annual chicken production output of almost 2017. New plans 220 thousand tons. “Our objectives for 2017 include: launching “Vinnytsia Poultry Farm is the last enterprise our company construction of Vinnytsia Poultry Farm’s second builds from the scratch. In the future, MHP will be line with the end goal of increasing the annual expanding its business by buying up and modernizing production output to 730 thousand tons by 2020; competitors’ assets, but only if market demand justifies it”. development of export with subsequent enhancement Capital, 2013 of our positions in existing markets and search of new opportunities; investments in personnel 2013. 5-year Eurobonds development and enhancing our reputation as a “We planned to redeem 2015 Eurobonds and stop borrowing quality, reliable and honest employer; sustainable altogether. But because of the orientation toward expansion, business development with the emphasis on we have certain appetite for acquisitions, and therefore, we environmental responsibility (including alternative have issued 2020 Eurobonds, which would be enough for us energy projects), animal care and social for at least the nearest five years”. responsibility”. UNIAN, 2013 MHP report, 2017

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36. LASUNKA 39. LUGA Founded in: 1997. Founded in: 1945. Region: Dnipropetrovsk region. Region: Volyn region. Area of activities: production of ice cream. Area of activities: production of men and women cloths. Export: Moldova, Georgia, Azerbaijan, Export: Netherlands, Sweden, Germany, Poland, Lithuania, Israel, etc. Belarus. The company comprises four enterprises located in Eastern, Luga garment factory manufactures customized cloths or exports ready men Western and Southern Ukraine. It has headquarters in Dnipro and women cloths of its own model series. The business history began with a city. Lasunka is the second largest ice cream manufacturer small shop, with 17 people working, and now this is a modern garment factory. in Ukraine with a market share of 19 per cent. The company Factory production is automated; the automated design system was installed as produces more than 100 product items, including ice cream early as 2007. Factory capacity is 60,000 units of items per month; advantageous for HoReCa. According to research companies, Lasunka geographical location allows the enterprise to build economic relations with EU is a leader in the marketing of Ukrainian ice cream to the countries. external markets. Its share is 50 per cent of the total Ukrainian exports of ice cream. Last summer, the company received an international FSSC 22000 Quality Certificate, which includes 40. LUKAS the admission of products to be sold to the stores of large international trading networks. Founded in: 1995. Region: Poltava region. Area of activities: production and marketing of confectionery 37. LEVADA products. Founded in: 1998. Export: Georgia, Moldova, Romania, Turkmenistan, Kyrgyzstan, Baltic countries. Region: Odesa region. The Lukas manufacturing and trading company was established as a family business for the sale of confectionery products. In 1999, the firm launched Area of activities: production of frozen producing cookies. Now it produces 2,500 tons of confectionery products per semi-finished products. month. The product range comprises more than 100 items. They are: puff pastry, Export: Belarus, Moldova, Kazakhstan, Israel, short pastry, candy and cakes. At the largest international confectionery ISM Georgia, EU countries United States, China, U.A.E. exhibition (Cologne, Germany), the products of the company were represented last In 17 years, a small family business has grown into the largest year, under the Danish partner TM. In 2016 Lukas Company has established its own enterprise of semi-finished products production on the market. equipment production facility. The company’s share of the dumplings and varenyky segment reaches 54 per cent and 46 per cent respectively. Dmitry Volkov, co-owner of Levada Group of Companies, plans Levada 41. LUTSK FOODS IPO on the Warsaw Stock Exchange in the long term. With use of external funds, new department on the production of deep- Founded in: 2001. freezing and processing of vegetables and fruit is expected to Region: Volyn region. be completed in Chornomorsk. Levada planned to invest 190 Area of activities: production of foodstuffs. million UAH in this enterprise. The company produces ‘private label’ products for many Ukrainian national network stores, Export: CIS countries, Baltic States, Georgia, Poland, Czech Republic, Germany, Spain, develops export deliveries of semi-finished products. Last Netherlands, United States, Japan, etc. spring, Levada launched delivery of its products to China. The company’s history has begun in 1945 when the food combine was founded in Lutsk. Today, Lutsk Foods is a well-known Ukrainian producer of grocery products specializing in the manufacture and marketing of tomato sauces and paste, adjika 38. LILUCK sauce, mustard, ketchup, natural and table vinegar. Safety checks are carried out at all stages: from selection of raw materials till production. Permanent procedures Founded in: 2001. based on the principles of Hazard Analysis and Critical Control Points food safety Region: Chernivtsi region. management system have been introduced and are being implemented in the Area of activities: production of workplace. In addition, Lutsk Foods manufactures sauces under its own trademark organic juices and canned products. for the supermarkets of Germany and Belarus. Export: countries of Europe and United States. Liluck is a representative of Gals and Grandvest Group of 42. LVIVPLAST Companies, producing organic juices and canned food only in glass containers. Only organic raw materials are used in Founded in: 1995. production, the group’s enterprises also harvest wild herbs Region: Lviv region. for use in the manufacture of juices and canned products. Area of activities: manufacturing parts and components for Intermediate quality checks are carried out at all stages of footwear. production. The product is checked when finished goods go to storage and before supplying to the consumer. Export: EU countries. From 2012 onwards, the company is audited annually by the The enterprise since 2002 has been manufacturing insoles, heels and soles of tunit, Food Safety Management System in accordance with Food in 2010 it installed and launched a shoe production line. The next step was to set Safety system’s requirements. In 2016 Liluck received the the rubber production line. LvivPlast manufactures soles of virtually all possible USA National Organic Program Certificate for production of materials, including the micro pores. 30 per cent of all products are customized, organic juice from Certіfіcatіon of Environmental Standards. including designer shoes.

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for 87 years, it’s a run time neither WORLD CLASS RUBBER company in Ukraine could boast of. Secondly, Kievguma LLC is the Kievguma is the Ukrainian enterprise with only enterprise in Ukraine, running complete production cycle, that is: 100 years of history, having a complete raw materials imports, development in a certifi ed and accredited production cycle. Company CEO, Andrey laboratory, design of mechanical Ostrohrud, shares with us its development plans facilities, semi-fi nished products manufacturing shop, fi nished for the coming years, export opportunities products shop, tool workshop and investment needs (production of the necessary machinery equipment), repair and mechanical workshop (current and — What business areas require the major repairs), power engineering, investments above all others? including metering operation center — In the next few years, Kievguma (MOC), etc. The enterprise comprises intends to invest its own funds and in total 33 agencies and units in investors funds in modernizing total. The company employs more the production of pharmaceutical than 500 people, who are experts rubber stoppers for drugs closing. with a great deal of experience. The This will render possible to increase product range accounts for 3,500 the production of rubber stoppers items produced. These are products almost double, improve the quality for various industries, ranging of the products by changing from pharmaceuticals, medical ‘range of purity’ of the premises products, products for children to at all stages of production and products for oil and gas industry, technology. construction, sports, household, etc. Presently almost 40 per cent Kievguma manufactures products of pharmaceutical stoppers are of both rubber and silicone, natural exported to CIS countries. In Ukraine, rubber latex, TEP, PVC and plastics. the market share of Kievguma reaches 55-60 per cent. Thus, there — What financial results are is an opportunity for growth both — Which projects have been Andrey expected by the end of this year? in sales volume in Ukraine and the planned to attract foreign Ostrohrud, — In 2017, sales are expected volume of exports. Considerable investors to? CEO Kievguma to grow up to 40 per cent in part of the funds is scheduled to — Kievguma LLC owners’ target is to monetary terms, compared to be invested to increase the variety increase production and marketing those in 2016. The United States of products for children (rubber several times in the coming years. dollar being at its current levels, nipples, pacifi ers, small bottles, We need to attract strategic or the sales of our products without etc.), replacement of packaging and fi nancial investor to achieve this. VAT will amount to about $15 design equipment, etc. The approximate amount of the million (for comparison: in 2006- The enterprise also intends to investment required to implement 2007 the company’s revenue increase production and expand the enterprise’s strategy is about accounted for $20-25 million per the range of non-molded products $5 million. Funds are required for year at 5 UAH/USD, and in 2012- (tubes, profi les, gaskets), by purchase of equipment, mechanical 2013 at 8 UAH/USD). acquiring equipment for co- facilities, technology, development of extrusion, fl ocking, having mastered external service of representatives, production of rubber and metal opening of representative offi ces. non-molded products. In order to increase sales, there The share of Kievguma in Ukraine is a need for revolving funds, in the manufacturing structure also we are going to increase our of products for children (rubber stock resources and receivables nipples, pacifi ers, etc.) is about 35 (Kievguma LLC products are already per cent, although our company represented in Epicenter, Auchan, is the only producer of such Caravan trade networks, etc.). products in our country, engaging full production cycle, with a large — What is the competitive growth potential. About 70 per cent advantage of the company? of the total volume of this product — First, Kievguma has its own group is exported. production history, accounting

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Career changed to a calling Ukrainian Mais Group of Companies is the leader of the producers of corn seeds, it produces natural apple juices and expands nut production

n the early 1990-s, founded Mais Company. The with these institutions created the founder of main business included the and transferred 16 corn hybrids I Mais Group of production of the corn seed. for state testing; 12 of them Companies Sergey In those years, the market of are already included in the Tereshchuk left a successful seeds in Ukraine experienced State register of plant varieties career of a state worker for a painful transformation. suitable for dissemination in the career in the agricultural There were almost no seeds Ukraine. The first of them - the business. A visit to Zorya of domestic selection, and Saturn breed was entered to the Agroindustrial Corporation, imported seeds were very register in 1997. that was the reason. The expensive. The Mais Company Now 15% of Ukrainian corn company was headed by began to cooperate with the is grown from seeds that are Vladimir Plutinsky, Honored American Pioneer Company, produced by Mais Group of worker of agriculture of that was breeding new varieties Companies. Its services of Ukraine. “I was a little jealous: of corn, sunflower, soybean, farming and developing seeds Vladimir Antonovich managed sorghum and some other crops, are used by leading global to raise corn on sandy soils of and also received an exclusive manufacturers of seeds: Rivne region, which I had never opportunity to produce seeds of Limagrain, Pioneer, Monsanto, seen before, — says Sergey corn and sunflower bred by a KWS, Euralis, Caussade Tereshchuk. — But I even wrote French Euralis Company. Semences, RAGT. Annually a diploma on corn topic in The Mais Company applied Mais produces 15 thousand Uman Agricultural Institute”. individual approach in the tons of corn seeds, 400 tons of This feeling was so strong development of the seeds and sunflower seeds, 2 thousand that when Vladimir Plutinsky in breeding. Breeders of the tons of soybeans, 3 million tons invited him to lead the Company together with the 15% of wheat seed. construction of the calibration specialists of the Institutes of The hybrids of Mais Group of plant in Belozerye village Grain Crops of the National Companies are also purchased in Cherkasy region, Mr. Agricultural Academy led by of Ukrainian by more than 3.500 partners in Tereshchuk left the office of a I.Yuriev started to develop corn is grown 18 regions of Ukraine. Among state institution without any new hybrids to improve the from the seed them, large Kernel Agricultural hesitation. In 1991, he headed production technology of seeds. produced by Holding Company, Ukrainian regional Zorya Agricultural Breeding Department of Mais Mais Group Agrarian Investments, Mriya, Company, and in 1992 he Group of Companies together of Companies Astarta.

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The queen of the fields INVESTMENT PROJECTS and hazelnut, it owns 70 and the courtiers hectares of industrial walnut Now Mais Group of gardens. Companies comprises six Calibration seed plant Farms use highly productive farms and four agricultural equipment, advanced enterprises, cultivating more Built in 2010. technologies of agricultural than 12 thousand hectares of production, they also provide Capacity: land, located in four districts irrigation in the area of 3 (Chyhyryn, Cherkasy, 750 thousand seed units of corn; thousand ha. Zolotonosha, Talne) in 200 thousand seed units of sunflower; Cherkasy region. 10 thousand tons of soybeans, wheat, peas, barley, canola. Advantageous fruit. The main focus of the farms In addition to seed and is still field production There are two warehouse-refrigerators with a volume of 2.5 livestock Mais Group of of seeds, but each farm million cubic meters in the territory of the plant; Companies actively develops along with that has its own as well as four warehouses of floor storage with the space of gardening, nut production and 5 thousand sq m; specification and the status of production of seedlings of fruit an independent legal entity. a grain elevator with capacity of 20 thousand tons. trees, walnut and hazelnut. For example, Rus ALC The Company launched is specialized in milk these startups almost production. The farm has 1 Apple production simultaneously. Each year the 000 dairy cows, it performed Company gets 6 thousand tons the reconstruction and of high quality apples from 150 modernization of all the Garden area: 200 ha. hectares of garden, these fruit technological components of The volume of the refrigerator storage of fruit: 7 tons. are stored in the high-tech production. refrigerator with a regulated The Krasnoselskoye gas environment (RGE), Agricultural Limited The production of walnut seedlings equipped with a modern Liability Company, having sorting line. The essence of the inundated land area of the RGE technology is that 500 hectares and a herd of Production capacity: 100 thousand seedlings the products remain in the annually. aberdine-angus consisting of sealed refrigerating chamber 800 animal units, produces in which a low oxygen content 400 tons of high quality The production of nuts (0,4-2,5%) and carbon dioxide organic beef per year. (1-4%) is maintained, and The Kolos Agricultural there is high content of Limited Liability Company is The industrial garden area: 150 ha. nitrogen, which is absorbed specialized in cultivation of The area of the stool-bed: 10 ha. from the air. As a result Mais fruit trees as well as walnut The area of the nursery garden: 40 ha. Group of Companies can store and sell fresh fruit during ten months after harvest. Apples are sold in Ukraine and exported to Spain, Croatia, Georgia, Belarus and Kazakhstan. Non-standard fruit, calibrated on a sorting line, are processed on the Austrian lines for the production of juices of direct pressing. The Company produces 600 thousand liters of juice annually — both pure apple juice and mixes: apple-carrot, apple-pumpkin, apple-beet. In order to stable yields and high quality seeds, fruits and fodder crops, Mais Group of Companies has been constantly increasing the area of irrigated land. The Company intends to own 6.5 thousand hectares.

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43. LVIV KHLADOKOMBINAT 47. MOSHUROV CANNING FACTORY Founded in: 1942. Founded in: 1969. Region: Lviv region. Region: Cherkasy region. Area of activities: production of ice- Area of activities: production of food products. cream, frozen semi-finished products, frozen Export: Countries of Eastern Europe and the CIS. vegetable and fruit mixtures. A modern enterprise for the production of vegetable preservation, located Export: Moldova, Georgia, Azerbaijan, Israel, etc. in the village of Moshurov, Cherkasy region. After the reconstruction of It is an enterprise with years of history, being dynamically developing, the workshops and complete replacement of the equipment, the plant investing more than $1.5 million annually in modernization. In 2010, the started producing canned vegetables under the trademark “Po-Ukrainski company produced 8,000 tons of ice-cream; in 2016 it was nearly 20,000 Smachno!” Using original Ukrainian recipes. Vegetable snacks and pickles tons. Limo TM assortment range comprises 140 names of ice-cream. The of the Moshurov canning plant are made only from Ukrainian raw company also produces more than 20 types of soft ice cream. materials without GMOs, without the addition of dyes, preservatives, taste improvers and other additives.

44 MAIS 48. ODESKABEL Founded in: 1992. Founded in: 1949. 1996-2001 — Регион: Cherkasy region. transferred to private ownership. Area of activities: seed production, livestock, horticulture, Region: Odesa region. walnut and production of fruit tree seedlings, walnut and hazelnuts. Area of activities: manufacture of cables and wires. Export: Spain, Croatia, Georgia, Belarus, Kazakhstan. Export: countries of the EU, the CIS and the Caucasus. The Ukrainian group of companies “MAIS” is in the lead among the The plant is one of the top 50 largest suppliers of cable and wire producers of corn seeds, produces natural apple juices and expands products. The general nomenclature of the company “Odeskabel” includes the walnut production. 15% of Ukrainian corn is grown from seeds that 3 thousand items. The main buyers of the products are companies are produced by a group of companies. Its services for growing and working in the field of telecommunications, energy, construction, processing seeds are used by the world’s leading manufacturers of engineering and mining. The largest among them are Ukrtelecom, inoculum. Now the structure of the group of companies “MAIS” includes Vodafone (Ukraine), Ukrenergo, Naftogaz Ukraina, ArcelorMittal Kryvyi Rih, six farms and four agro-enterprises that process more than 12 thousand and others. About 50% of all Odeskabel products are exported. hectares of farmland located in four districts of the Cherkasy region

49. ORGANICAL ORIGINAL ERCURY 45. M Founded in: 2011. Founded in: 1990. Region: Kyiv region. Region: Cherkasy region. Area of activities: production of certified organic Area of activities: production of lollipops. foodstuffs. Export: Countries of Eastern and Western Europe, Export: United States of America. Asia, Africa, America. Organic Original Company was founded in 2011 and is a pioneer in the Mercury confectionery factory has begun production of lollipops under developing market for organic products in Ukraine. It produces organic Roks TM in 1999. Mercury is the only producer of a wide range of lollipops foodstuffs under Ecorod TM, such as chickpeas, lentils, golden gram, and on a stick in the CIS territory and one of the world’s leading producers. sunflower oil, various kinds of flour and cereals, oatmeal flakes, honey, A large share of the assortments is hand-made products. The enterprise watermelons. It obtains Euroleaf European Organic Certificate, as well as also produces lollipops with sweeteners (sorbitol, isomalt). The company is USDANOP American Organic Certificate. building a new production unit of modular type with a total area of 6,200 sq. m. The module includes production facility and storage. 50. OSNOVA Founded in: 1989. 46. MOLIS Region: Kyiv region. Founded in: 1998. Area of activities: constructions. Region: Zaporizhzhya region. Export: Operation in dozens of countries. Area of activities: production and marketing of dairy The group of companies “Osnova” is the leader in the construction market products. of Ukraine. It unites nine enterprises and 15 major production units. The Export: Kazakhstan, Georgia, Armenia, Morocco, India. company carries out design and survey works; Foundations; Buried Molis production association, founded in 2004, comprises the buildings; Repair, reconstruction and reinforcement. Foundations of Dniprorudnensk cheese factory and Mykhailiv creamery. The capacity existing buildings; Strengthening of foundations; Hydraulic and special of enterprises is to produce up to 5,000 tons of cheese, sour cream and works (drainage systems, anti-filtration curtains and underground other dairy products. Molis group of companies produces more than structures, fences, retaining walls, anti-landslide structures, hidden laying 60 food items under Molis, Molika, Molochnyi Pan TM. The company of communications under existing structures); Building “turnkey” buildings holds 3 per cent of the domestic cheese market and 15 per cent of and structures of all types (including commercial and residential real melted cheese market. estate); Construction of monolithic structures.

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Intelligent Agricultural Sector The purpose Astarta Agroindustrial Holding and KM Core IT-company have established Agro Core joint venture for

hen it goes about in Ukraine’, – as Victor Global integration platform the Ukrainian Ivanchik, CEO and the investment in that will effectively W AICs, it is often founder of Astarta Holding, AgTech since 2012 collect and analyze argued if it is explained. has accounted information for important necessary to export value- The Internet of Things for decisions. KM Core has added processed products. (IoT) and the Big Data, considerable experience The Astarta company, which have been thriving in $820 in the development of IT which has been successfully the world, are particularly products for agribusiness. supplying sugar, soybean relevant and applicable million For example, the team, products, grains and crops in agriculture (various currently working for abroad, has decided to sensors, GPS monitoring, Agro Core, has recently go further and to supply mobile applications, the developed an eFarmer the world market with use of drones to assess field service, popular among intellectual products for condition, planning and European farmers. agribusiness, developed forecasting systems, etc.). ‘The first challenge is to in cooperation with КМ But the main question is implement this modern IT Сore IT-holding company. how to combine all these platform in Astarta-Kiev With this objective in view, data sets in a management- Agroindustrial Holding. the partners established friendly form? The needs and practices Agro Core joint venture in Agro Core is currently of agricultural companies January 2017. working on the unified are quite universal. We are ‘This is highly efficient confident, therefore, that intellectual investment. PERCENTAGE OF CORPORATE Agro Core achievements The synergies between will be in demand of the PARTICIPATION (INVESTMENT) Ukrainian IT professionals market. The information IN AGTECH, % of international standard technology penetration and world-class managing According to CB Insight research. rate in AICs is still agronomists enable us to low compared to other create absolutely unique industries, respectively, 2014 13 products, hitherto unknown, there is a great potential for which have never been 2015 16 development,’ – as Agro introduced to the extent 2016 24 Core General Manager Ilya as it may be introduced Gandzeychuk noted.

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12-13/27.03.2017 Changing reality Technologies change the world around. They usually considered to be, as there are neither teachers, nor transform business, work, relations, education. Some lectures and workbooks in UNIT people generate changes, others adapt to them. Factory. There are educational tasks, but it is necessary to find However, new skills as well as new knowledge are knowledge, which will help solve necessary for everybody. Vasyl Khmelnytsky’s fund these tasks alone or together with other students. Such approach K.Fund is created for support of private initiatives proved to be very effective. The in the field of education, which have to promote the technique was created at the Parisian school Ecole 42 whose continuous development of the personality. graduates are in great demand among employers in the global IT market. After several years of nitially, K.Fund their own business such as: study in such a mode, the student was created for the how to orient in a changeable acquires knowledge and skills I management of environment and to find your together with a useful habit to several educational own niche, how to create a good find a resource for the solution projects, but it has increased business plan from an idea, of problems of any complexity the amount of areas of activity how to turn it into an effective on his own. There are about 300 for several times in one and business. Training at School students of the first enrolment in a half year. Book publishing, is free of charge, and the best UNIT Factory, but their quantity training of IT specialists in a participants receive in addition has to increase up to 1500 in unique technique as well as the mini-grants after graduation for subsequent years. project of regional development the solution of their business Technology Companies’ were added to school education challenges. Among the first Development Center (TCDC) is and support of talented graduates of School there are a mix of education, science and underprivileged children. All people who have already started business. The main objective activities of the fund are united to succeed in their private of the Center is to help the by one common goal — creation business. first-time IT entrepreneurs to of the most favorable conditions Most employees of K.Fund construct their business. TCDC for high-quality development of note that their favorite project is provides office rooms, legal and people and their preparation to UNIT Factory. The educational educational support, also, the an active life in the new world. institution is training IT UNIT Factory creative space for the researchers is training “School of small and specialists in such a non-standard IT-specialists working in the sphere of medium business” supported technique that those who hear in a non- high technologies. In the long by K.Fund helps the first-time about it for the first time just do standard Ecole term, TCDC has to become entrepreneurs to master the not believe and don’t understand 42 technique the Ukrainian analog of the most necessary skills for the how it can work. It is completely Californian Silicon Valley, the organization and conduct of opposite to what education is environment which will generate an innovative product, new knowledge and technologies. Projects of K.Fund are ultimately social investments. They are based on understanding of the fact that in the long term everybody will be the winner. The more people, able to succeed in the changing world, exist the higher is the quality of life in the country. In the material field, it is evident in the increasing of purchasing power of the population that is favorable to business, and in the moral one it is shown in the ability of successful and self-confident people to create a safe society.

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51. PATON TURBINE TECHNOLOGIES 54. TRIBAL POULTRY FARM “BROVARSKY” Founded in: 1993. Founded in: 1975. Region: Kyiv region. Region: Kyiv region. Area of activities: an enterprise for the Area of activities: production of turkey meat. repair of turbine blades and the application of Export: Countries of Eastern Europe and the CIS. protective thermal and ceramic coatings on them. The enterprise carries out a full production cycle — Cultivation of turkeys, Export: USA, Sweden, Singapore, Japan. processing and packaging of finished products. Production of TM “Indelika” Is The plant for the repair of turbine blades for various purposes was carried out in a completely closed mode, which avoids the bird’s contact with established as a joint venture based on the unique technologies of the the external environment. The enterprise’s capacity is 5.13 tons of turkey meat Institute of Electric Welding named after Paton and the production base per year (in live weight). In the active phase — construction of a feed mill. It is of the American company Pratt&Whitney (Branch of a corporation United expected that with the launch of the feed mill, the enterprise will be provided Technologies), One of the world’s leading suppliers of aircraft engines. with its own mixed fodders by 100%. This will allow to fully control the quality of Area of premises Paton Turbine Technologies — 4,5 thousand sq. m. They raw materials for feeding the poultry. contain a scientific and production base for the repair of air, gas and land turbine blades of all types and application of a protective coating on them, 55. PODOLSKY ENERGY CONSULTING which prevents wear and corrosion. Also materials for the application of coatings are produced: metal and ceramic ingots. The largest customers Founded in: 2009. of Paton Turbine Technologies are companies Pratt&Whitney, Honeywell, Region: Vinnytsia region. Mayer Tools, Glen Group (all in — USA), Rolls-Royce (United Kingdom), Area of activities: engineering in the energy sector. Turbine Overhaul Services (Singapore), Kawasaki Heavy Industries (Japan), Export: Countries of the CIS. As well as Ukrainian companies working in the fields of gas turbine technology, gas transportation and aircraft repair. The scope of activities of the company “Podolsky Energy Consulting” includes the preparation of a feasibility study and the selection of optimal schemes for UZHTEPLOENERGOMONTAZH external power supply, obtaining technical conditions, design and construction 52. Y of power facilities. At the final stage - connection of objects to the main and Founded in: 1927, 1991 — in private property. distribution power networks. In 2012, the company began working in the field Region: Kyiv region of alternative energy. Now she is more known as a turnkey contractor for solar power plants. Area of activities: Providing a full range of engineering services, investment support, construction, commissioning of power and industrial facilities. 56. POLOHY OIL EXTRACTION PLANT Exports: CIS, EU, Asia and Africa. Founded in: 1974. Despite the fact that the main activities of the group of companies Region: Zaporizhzhya region. “Yuzhteploenergomontazh” remain the development, production, Area of activities: production and sale of installation and maintenance of turbine power equipment, in recent years, sunflower, soybean and rape oils in bulk, packaged sunflower oil, sunflower, she managed to implement a number of other projects. In particular, it is soybean and rapeseed ground oilcake and phosphatide concentrate. building a nuclear fuel storage facility. Projects for the construction of a Export: Algeria, Egypt, India, Israel, China, Lebanon, Malaysia, Netherlands, blast furnace have been implemented #5, Warehouse of pellets and coke U.A.E., Turkey, EU, CIS and Middle East countries. for the Yenakiyevo Steel Plant, construction of the Krasnoarmeiskaya- Zapadnaya #1 coal preparation plant, design and construction of a quadro- The enterprise’s production complex comprises a complete oil-bearing crops generation station for Coca-Cola Beverages Ukraine Limited, etc. In processing cycle: starting from acceptance, storing, preliminary preparation of addition, in the past few years Yuzhteploenergomontazh has been actively seeds to full cleaning and subsequent packaging of produced oil. The enterprise involved in Implementation of projects in the fields of energy efficiency is capable of producing 550 thousand tonnes of oil per year. Storage capacity and renewable energy. allows for a one-time store of up to 75 thousand tonnes of seeds, 4.5 thousand tonnes of ground oilcake, 22 thousand tonnes of produced oil. The enterprise AN URCHAK UBIN OULTRY exports 80 per cent of produced vegetable oil and 30 per cent of ground 53. P K (G P oilcake. The average annual export volume is about $100 million. In Ukraine the COMPLEX) enterprise sells packaged vegetable oil under Slavіya and Smachna Kraplya trademarks, as well as under the trademarks of some retailers. Founded in: 2001. Region: Volyn region. 57. POLTAVAKONDITER Area of activities: production of chilled and frozen Founded in: 1929. chicken. Region: Poltava region. Export: Countries in the Middle East and Central Asia. Area of activities: manufacturing of confectionery Gubin poultry complex is the largest unit of the Ukrainian Pan Kurchak products. agro-industrial group. The complex consists of six fattening farms located in four areas of the Volyn region. The annual total capacity of these farms Export: Russian Federation, Belarus, Kazakhstan, Finland, is 14 million poultry heads. Enterprise product range is made up of more Azerbaijan, Mongolia, Georgia, Moldova, Tajikistan, Kyrgyzstan, Turkmenistan, than 30 chilled and frozen products, being sold under the Pan Kurchak, Estonia, Lithuania, Latvia. Katkut TM. The company has been actively developing. In 2015, a new and Public joint stock company “Poltavakonditer” is a dynamic company that powerful poultry slaughter and processing facility was put into operation occupies one of the leading position among the players at the market of in Novovolynsk, resulting in an increase by 75 per cent in production confectionery products in Ukraine. Today PJSC “Poltavakonditer” became output compared to 2014. The company works with foreign partners from one of the acknowledged leader of confectionery manufacture in Ukraine, different countries, exports frozen carcasses and parts of broiler chicken. its productive capacity is more than 200 tons of products per 24 hours. The All products comply with international ISO and ‘halal’ standards. product line of TM “Dominic” totals about 300 names of confectionery products.

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58. RENESSANS 61. SIRIUS EXTRUSION Founded in: 2001. Founded in: 2000 Region: Mykolaiv region. Region: Khmelnytskyi region Area of activities: furniture production. Area of activities: production of packaging polymer Export: Kazakhstan and Russian Federation. products. The Renessans Furniture Factory has been representing its products in the Export: the countries of Central and Eastern Europe, the Baltic States, Belarus, Ukrainian market for over 15 years. The Renessans Furniture Factory has a Kazakhstan, Moldova, the Russian Federation. highly efficient production base with modern equipment. With maximum Each year, the Sirius Extrusion plant processes up to 80,000 tons of polymers process automation, this allows the enterprise to employ a relatively into finished products. Raw materials are purchased from leading polymer small staff of only about 50 professionals. Small team and mobility of manufacturers of the world: Dow Chemical Company, ExxonMobil, and others. production enable responding to market changes and attending to All processes in the enterprise, ranging from loading granules into silos, to each client individually. The Factory has implemented and has been robotic offloading of finished production rolls, are automated. The production operating a quality management system that meets the requirements lines are equipped with modern software, and the ISO 9001 quality control and of ISO 9001:2009, which provides a process-oriented approach to the management system are implemented. Sirius Extrusion has also established a organization of activities. Any task is reviewed as separate process. process of recycling to reduce waste and minimize the impact of the production It allows to organize phased work, continuously analyzing each step, process on the environment. identifying inconsistencies, and quickly adjusting and coordinating the actions of both the employee and the entire team. The Renessans has 62. STEKLOPLAST been currently increasing its production capacity and looking for new market channels. Founded in: 1997. Region: Dnipropetrovsk region. 59. RENTECHNO Area of activities: production of insulated glass and metal structures. Founded in: 2009. Export: the countries of Eastern Europe and the CIS. Region: Kyiv region. Stekloplast — the only engineering company in Ukraine, having in its portfolio Area of activities: development and a successful experience in the projects of TsUM and Lavina Mall, where the implementation of engineering solutions using energy-efficient company has glazed a unique dome. These objects at the Second Annual Forum technologies and renewable energy sources. of Real Estate in Eastern Europe and Asia (EEA Real Estate Forum & Project Export: export to Belarus has been planned Awards) were announced the best real estate projects in 2016. Today, up to 2500 The main activity of Rentechno Company is design and installation on of double-glazed windows under TM “Stekloplast” are produced per day, as well a turnkey basis of the photovoltaic power plants of all types: industrial as metal-plastic constructions and shutters . power plants with capacity of more than 10 MW, house roof-top power plants and ground low-yield and solar power systems, integrated into 63. SLOBOZHANSKIY SOAP-HOUSE buildings and constructions (BIPV). Rentechno Company is best known for its solar power plant projects for small and medium-sized farms. Founded in: 1999. Rentechno Company provides full range of services to the customer, Region: Kharkiv region. starting from design of the facility and the selection of components prior Area of activities: manufacturing personal hygiene products to required documentation registration and maintenance works. Among the most notable projects, implemented by Rentechno Company are Export: CIS, Baltic and Eastern European countries. Guta-2 (Transcarpathian region), Ozerna (Lviv region), Veligen (Kherson Slobozhanskiy soap-house produces toilet, cosmetic, baby and household region) SPPs. The Company is also engaged in installing autonomous soap, as well as soap with improved dermatological characteristics. Company’s street lighting and biomass boilers. Abroad it is known for the project of portfolio includes more than 90 items. The aroma compounds for soap are autonomous heating, hot water supply, ventilation and conditioning of a imported from France and Switzerland. In the near future, the enterprise intends cottage village in Belarus. to expand the product line by launching the deodorization, liquid detergents and washing powder plant. The products of Kharkiv producer can be found in 60. CEREAL UKRAINE stores of CIS, Baltic and Eastern European countries and 63 other countries. Founded in: 1998. 64. SPARING-VIST CENTRE Region: Kharkiv region. Founded in: 1996. Area of activities: production, processing and packaging of cereals. Region: Lviv region Export: countries in Europe, Africa, South-East Asia and the Middle East. Area of activities: development and production of radiation control systems. Cereal Ukraine group of companies produces its cereals under Olympus, Kashka-Vkusniashka, Gostovskaia and Vershyna Kachestva TM. Monthly Export: EU, CIS, Asian, North and Latin American countries. production capacity is 4-4,500 tons. The products produced and supplied Sparing-Vist Centre Private Enterprise, with a team of more than 200 experts, by the group are presented in most wholesale and retail networks of offers some 30 radiation monitoring systems and equipment under ECOTEST Ukraine. High enterprise performance allows taking large orders and trade mark. Since 2006, the enterprise has been working with a certified ISO maintaining tight deadlines. In addition to cereals production, grain 9001-2008 Quality Management System. The main customers of Sparing- processing facility, located in Bilyi Kolodyaz village, enables to prepare Vist Centre are the Ministry of Defence of Ukraine, Ministry of Emergencies, grain for use in the bakery, confectionery, medical industries; processed Security Service of Ukraine, State Security Service for Nuclear Power Plants, sea products are also used in the preparation of fodder for various animals. and river ports, railways, airports, metallurgical factories, extractive enterprises, At present, the enterprise has three major production lines, a cereal etc. Since 2002, ECOTEST TM products have been supplied for the Border production line, a cereal flakes production line, a line for manufacture and Service of the Republic of Kazakhstan and the Border Service of the Republic granulation of fodder mixtures for animals. of Uzbekistan.

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HOW TO ATTRACT INVESTMENTS IN UKRAINIAN BUSINESS PROJECTS, WHAT IS REQUIRED FOR THIS?

he issue of attracting invest- to the following paragraph in our ment in Ukraine has already investment plan to be implemented. Tbecome threadbare and Particularly with regard to fund- twice-told. Especially when it comes ing section. I mean the funds that to foreign investment. There are a went ‘to plug the hole’. Here we lot of unsolved issues for Ukrainian meet another stumbling block that businessmen in this regard. But is diversion of investment funds, still there are much more of them which later would turn into a mighty for foreign potential partners and block-stop for a project that is not investors who are very willing to easy to jump off . place their funds (and, in most cases, So, what do we do to receive invest- very considerable funds) in various ments, mutually benefi cial partner- segments of the Ukrainian economy. ships and, together with investors, But certain unsettled matters have both domestic and foreign, to imple- been hampering them badly. What ment ambitious projects, develop are these issues to be solved by the economy of our country, make Ukrainian businessmen and foreign Ukrainian market attractive for in- investors, striving to go together vestments and eventually make our in their business activities? What their companies is the dynamism Sergey cooperation fruitful and happy? prevents them from starting com- and unpredictability of domestic Poznyak, An obvious conclusion off ers itself. prehensive mutually advantageous legislation. As the saying goes: It comes out of above issues. First of Owner of the FGK cooperation and receiving profi ts ‘The Law is like an axle — you can Financial Group all, as another saying goes: ‘White from these successful alliances? turn it whichever way you please, to move and win!’ I recommend our First of all, an absolute non-trans- if you give it plenty of grease.’ businessmen to do their businesses parency of most Ukrainian compa- There are some 2,000 (!) legislative in a transparent, comprehensible, nies. The complexity of reporting, acts, applicable in Ukraine today. ‘white’ way: with proper tax paying, double counting and inability of And they are truly far from being offi cially declared salaries (‘white’ these data to provide actual and mutually consistent, let alone salaries) and reporting, keeping with adequate performance of analysis their consistency with business reality. As well as to practice meticu- and auditing of an enterprise in or- environment. This in turn creates lous planning, and to not be afraid der to make a considered and right confusion with the legitimacy of of projecting! And mostly important, decision regarding the placement of investment and divestment in our you have to hit your targets. investments both in some specifi c business projects in particular and The businessmen of Ukraine also business and in whole sectors of in the country as a whole. In other should unite. Unite to join your domestic market environment. words, in many cases our current forces in order to convey to our The second aspect comes out of legislation precludes investment country offi cials the idea of chang- the fi rst one. This is a failure to injections from abroad and it ing and simplifying legislation on plan out applying involved external renders withdrawal of return on business and investments. Our investment. And actually, this is investment impossible, what is banking system also changes but it really impossible. Because reporting more crucial. Of course, it does not can stand over. For the time being, it complicated and not corresponding contribute to the warming of the is possible to establish a system of to reality does not give any chance. investment climate, so to say. collective business security and con- Corrupted facts do not provide The fourth aspect, which discour- jointly protect every business activ- comprehensive and actual account ages the potential investor, is the ity from inadequate legislation. If we for today activities, consequently, totally inappropriate use of invested act in an effi cient manner, achieving qualitative analysis and assess- funds. But again, this problem stems benefi cial eff ects won’t take long. ment of what comes next is out of from the previous one, that is false And, of course, we have to learn. the question. And for an external statistics and the resulting wrong To adopt practices, communicating investor, for the foreign one in planning and analysis, respectively. with foreign investors, participating particular, such ‘leap in the dark’ In this order of things, it’s very dif- in major international events, to rep- makes the investment of its money, fi cult to keep a consistent cash fl ow. licate, to come forward, nurturing earned by the sweat of its brow, into And there is always a situation when and using investment culture of ad- some unpredictable business utterly prescheduled activities confl ict vanced countries. To be a fair player, inadmissible. with life’s realities. That’s when the earning the trust. And consequently, The third aspect that prevents investment ‘takes a wrong turn’, in our companies and our market will our businessmen from obtaining order to plug the hole. But there are attract anyone, potentially willing much-needed cash injections into big consequences when we proceed to invest.

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65. SPETZTEKHOSNASTKA 69. T.B. FRUIT Founded in: 1989. Founded in: 2003. Region: Dnipropetrovsk region. Region: Lviv region. Area of activities: production of high accuracy instrumentation for Area of activities: production, various purposes. processing and marketing of fruit Export: Germany, Israel, Austria, North American countries, CIS. and berries, production of juices, frozen fruits and natural aromatics of fruits and berries. The Spetztekhosnastka Association is one of the internationally recognized producers of accurate press molds. These are forms for molding, engineering plastics for domestic and Export: EU and CIS countries. foreign companies, producing automotive components. The end-users of these products T.B. Fruit group of companies is the leader of are Volkswagen, Audi, General Motors, Mercedes automobile concerns, etc. The Сompany the Ukrainian market and the third producer of also produces plastic packaging, disposable eating utensils for mass consumption, blood concentrated juice in Europe. The land bank of the lancets used by medical and preventive institutions. Spetztekhosnastka comprises several group of companies is about 3,500 ha of land where production areas, each of which is an economic independent unit. Working in different apples, cherries, wheat and rapeseed are mostly grown. markets, they form a vertically integrated company. T.B. Fruit comprises eight factories for production of concentrated juices and directly squeezed juices, 66. S-ROSTOK mashed fruits and frozen fruits and vegetables. The total capacity of the processing enterprises of the Founded in: 2007. group of companies is 1.2 million tons of concentrated Region: Mykolayiv region. juice per year. Its factories are located in Ukraine, Area of activities: Production, further storage and Poland and Moldova. T.B. Fruit Development Program sale of vegetables in the Ukrainian market and abroad. provides for the construction of new or the acquisition of existing plants in the center of commodity areas Export: Indonesia, Korea, Uzbekistan, Kazakhstan, Georgia, Romania, Syria, Iraq. where horticultural products are grown. The company The company’s production is located in Ivanivka village in Mykolayiv region, branches is mainly manufacturing for export (75-80 per cent). in Odesa and Kherson regions. The main crops produced by the company are onions, carrots, cabbage, beetroot and celery. Common Land Bank — approximately 6 thousand ALAN hectares, under vegetables — approximately 1 thousand hectares. The total gross volume 70. T of grown production is 60 thousand tons. The capacity of vegetable storage companies Founded in: 1927, 1994 — in is about 45 thousand tons, 2 thousand tons — with a regulated gas environment and 22 private property. thousand tons - with freon cooling. “S-Rostok” has a quota for the supply of vegetables Region: Sumy region. to Indonesia and Korea. The company also supplies onions to Uzbekistan, Kazakhstan, Area of activities: special shoes production. Georgia, Romania, Syria and Iraq. On the basis of the company, an agro school has been established, the main task of which is to solve the problem of shortage of personnel in Export: EU, Baltic, CIS, Middle East, Latin American agro-production. countries. The Talan factory produces some 3 million pairs of 67. STUDIOPACK special footwear of sole molding method for the military and power structures, oil and chemical industries, Founded in: 2006. metallurgy, engineering and metalworking, transport, Region: Kyiv region. energy, construction and agriculture industries. All shoes Area of activities: production of eco-vessels and packaging materials are certified by TUV German certification authority. from foil. In India, which supplies raw materials (leather), Talan opened its own enterprise, preparing and selecting Export: The countries of Eastern Europe and the CIS. materials. Sole and insole materials, protective elements “StudioPack” is the Ukrainian national manufacturer of containers from food aluminum are purchased from European manufacturers. In foil. Since the launch of the plant, StudioPak Technologies has done a tremendous job in 2015 Talan was the first in Ukraine to obtain a W.L. optimizing business processes, improving the quality and organization of technical control Gore&Associates license on the use of Gore-Tex of the products and has become the holder of international certificates ISO 9001: 2008, membrane materials (as well as Lowa, Maidl, Haix, Adidas, ISO 14001: 2004, ISO 22000: 2005. The company is actively studying international markets. Nike, Ecco brands).

68. SUMY BACON 71. TEKSTERNO Founded in: 2006. Founded in: 1968. Region: Sumy region. Region: Ternopil region. Area of activities: Turkey meat production (TM “Svoya indychka”) Area of activities: Export: CIS countries. Production of textile products and fabrics. In September, 2013, the company “Sumy bacon” has successfully passed certification Export: EU countries. audit for compliance with international standards ISO 9001:2008 and ISO 22000:2005. Teksterno Is a manufacturer of cotton fabrics with a In 2014, the boning meat shop started, a workshop for production of forcemeats and full technological cycle of cotton-fiber processing. The vacuum lines started, as well as gas packing. In 2015, the company received permission enterprise consists of three factories: spinning, weaving from the “Halal-Committee” for production, corresponding to the Muslim requirements. In and finishing. The production capacity is 9 million square 2016, a significant modernization of production was carried out, the plant’s capacity was meters of cotton fabric per month. The Teksterno increased, the food safety certificate FCCS 22000 was obtained. Now the company has a production is marked by many European awards for the completely closed and controlled production cycle: from growing and fattening chicks to quality and design of the fabric. The enterprise is among slaughtering, processing, packaging and delivery of products to sales locations. Monthly the three best and largest exporters of fabrics to foreign “Sumy bacon” produces about 100 thousand tons of dietary meat. markets.

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Foresight, Fearlessness and Flexibility Clear understanding and rapid response to the Recent history The Cherkasy Khimvolokno plant challenges enabled owners save and develop became the site of the company’s complex chemical production production facilities. The first production line was launched in late November 2015. At the initial hemical Elements stage of the factory’s operation, the Ukraine was founded number of customers was few but C in 1991, although key partners stood firmly behind it has only been the new Cherkasy enterprise, operating under this name for a waiting for the factory to reach the couple of years. Not so long ago projected capacity. In particular, the the company was known under German company Kirsch Pharma, the name of Donetsk-Reaktiv with whom Chemical Elements Chemical Reagents Factory, whose Ukraine has been cooperating facilities were located in Donetsk. since 2010, provided a prepayment The enterprise specialized in the to the factory for products as an manufacturing of fine chemicals, investment. Chemical Elements including reagents and a wide Ukraine in turn, is obliged to range of products. supply Kirsch Pharma products for Their products are in high this amount within three years. demand in almost all industries, in The second production line particular in science and medicine. was launched in March 2017, The factory had been exporting only transported the factory’s which significantly expanded the about 70% of its reagents; 65% went metal constructions to Cherkasy, product capacity. The production to the Russian market, 25% went to but also 25 leading chemical Owners of capacity of the Cherkasy facilities Germany and the remaining 10% industry experts. Some 1 million Chemical are already twice as large as the Elements were divided between Belarus, UAH were spent on evacuation; Ukraine Donetsk plant capacity. This Kazakhstan and Poland. and the launch of the new facilities Vyacheslav and enables the production of up to 2014 a new phase of the accounted for more than 1.5 Ilya Leonenko 2.5 thousand tons of high purity company’s development began. million EUR. at a new chemical products. The factory’s The factory was preparing to In order not to lose market production product range is currently made facility in build a new workshop for the shares, the entrepreneurial Cherkasy up of 50 different inorganic expansion of production. The management had to develop chemical compounds for the food, owners, Vyacheslav and Ilya an entirely new strategy. The pharmaceutical and cosmetic Leonenko, father and son, acquired warehouses in Cherkasy were industries. Alongside the Ukraine, new equipment, fully prepared stocked with raw materials. At the products are supplied to the CIS the project for the construction of the same time the installation of and EU countries. The company is the new site, allocated financial new equipment and major repairs now targeting an entrance on the resources and were ready to start to the workshops in Cherkasy EU market as their next step. its implementation. However, were being carried out and at the The owners of Chemical because of military operations in facilities in Donetsk raw stocks Elements Ukraine intend the Donbas region, they decided to were being produced. Spring of to enlarge and develop the relocate the project implementation 2015, the Donetsk factory stopped existing capacities. In particular, from Donetsk to Cherkasy. production completely and the company has started the actually ceased to exist, but in the implementation of a 3 million Change in order not to lose mean time the Cherkasy factory EUR investment project which Factory workers had prepared was progressing well. will increase the production the equipment to be exported capacity by 3.5 times, with an early 2014, immediately after output of up to 9,000 tons of the annexation of the Crimea, INVESTMENT PROJECT pure chemicals per annum. but managed to implement the Increase production capacity Additionally an efficient business move only partially (evacuating model enables the company to

some of the equipment to the Increasing production capacity up to 9.000 tons of micro- offer the market their products at value of 6-7 million UAH). The elements per year. competitive prices; some chemical laboratory, remaining in Donetsk, Estimated investment: 3 million EUR elements at 25% lower than has an estimated value of 10-11 Payback period: 3 years. world market prices. The new million UAH. However the most equipment launch is scheduled for Raising a loan has been planned at 10% annual interest in important thing is that, they not foreign currency. the end of 2018.

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Chemistry of Success

The largest micronutrients. The fact that Sadovoda” (Gardener’s in 2004 UKRAVIT became the Pharmacy). Ukrainian first pesticide manufacturer Over the past several years manufacturer of in the country, which allowed of intensive development, the the company to evolve into company entered abroad market plant protection an innovator of domestic and began to supply its products products and agricultural chemistry, played to the markets of Moldova an important role. and Georgia, where it plans to micronutrients establish itself as a leader quickly. UKRAVIT is All in Growth Export in the sales structure Now, under the brand of is about 10%, but the company constructing UKRAVIT, which production is aimed at further capture of facilities are located at the world markets. In Ukraine, the innovative Factory of Agrochemicals sales volumes are increasing research and in Cherkasy city, more than every year due to high quality of 130 agents are produced and products and a fair price. And this development almost a dozen of new products allows the Ukrainian company center, which are brought to the market to compete on a par with annually. In particular, last multinational brands. knows no equals year the company made the Actually, the success became agrarians happy with 14 new possible due to the search in Ukraine products, and plans to present and application of innovative a full range of new products in Export in sales developments in the production structure of or 18 years of the current year. To the point, and use of agricultural chemistry UKRAVIT activity, UKRAVIT these agents are designated for with minimal impact on the is about F Company worked both, the “farmer” market, and environment and human health. its way up from for the market of customer-size As Vitalyi Ilchenko, the a supplier of fumigation packaging, for gardeners and owner of the UKRAVIT group agents to a manufacturer of truck farmers, which are sold 10% of companies, said, the operative plant protection products and under the brand name “Apteka Factory of Agrochemicals was put

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together by him “piece by piece”. products and solutions for the INVESTMENT PROJECT Once, he visited all running Ukrainian market. post-Soviet enterprises that The construction of a new Increase of production capacities and establishment produced agriculturalchemistry, production complex and research of a research and development center studied their technologies and center has been underway since The projected volume of production: 30+ thousand tons development programs, found 2015, and about $ 7 million of chemicals per year. professionals who shared their have already been spent. At experience in the field of plant the same time, the amount of Term of commissioning of new sites: protection products, which primary investment necessary end of 2019. initiated the creation of his own to implement the project should The volume of primary investment: $ 25 million. production. “After that, I visited amount to about $ 25 million. Approximately $ 7 million have already been spent. agrochemical plants in many According to Vitalyi Ilchenko, developed countries, where I “today, the company is negotiating tried to find the best technologies with Ukrainian and international and adopt the most advanced banks to raise funding.” experience,” Mr. Ilchenko brings UKRAVIT has also foreign back. partners. The project involved Cherkasy Factory of key chemists from Switzerland Agrochemicals is equipped with who are engaged in the design modern high-tech equipment job of the center, and also provide that produces various forms of equipment for the production products according to ISO of high-tech chemicals. The 900 1international standards. projected volume of production Also, the company has a capacity for the near future will workshop for the production of be 12 thousand tons per year, but its own packaging, the design of after the final completion of the which waspurposelymade using construction of the production company’s logo that, in addition, complex, which is scheduled for involves extra protection of the end of 2019, the capacity will products from counterfeiting. increase to 30 thousand tons There are also two chemical per year. There is also an idea to laboratories (chromatographic implement modern technology of and analytical), own car fleet for recycling of used containers from the transportation of dangerous pesticides on new capacities. This goods and storage facilities. It decision will allow improving should be individually mentioned the ecological performance of the about the finished goods environment in Ukraine. warehouse with a total area of 15 As for the final products, thousand square meters, designed UKRAVIT lifted the veil and told for storage of 20 thousand tons of us that scientists are working on goods. creation of a new generation of plant protection products. The Research Breakthrough distinctiveness of these products The attention of UKRAVIT lies in their 100% environmental is now focused on the further friendliness and high efficiency, development and diversification as well as in the operability and of production. In particular, a wide range of applications. It is in addition to expanding its not surprising that the main goals products anywhere in the world production capacity, the company of the company for the next five using Ukrainian equipment is engaged in creation of a years are more than ambitious and technologies. Preliminary research and development center – to occupy 20% of Ukrainian negotiations on this issueare in Cherkasy. The new production market of plant protection already in process with a number and center will occupy 30 products and to enter the markets of companies and governments thousand square meters, located of European Union countries from all over the world. on 6 hectares of land. In fact, it is and Asia. It is noteworthy that Ukraine an analogue of the SiliconValley, It is also worth noting that becomes the flagship in scientific but in chemical and biological it is an exclusive research developments for the most branches. center not only in Ukraine, complex branch – agricultural The new laboratory complex but also in Eastern Europe. chemistry. will be equipped with the most Moreover, the engagement modern equipment, which will model of UKRAVIT, allows Natalia Shevchenko allow developing absolutely new in the future manufacturing

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12-13/27.03.2017 HOW TO ATTRACT AN INVESTOR?

ou cannot launch your I’ve collected some more tips from my business without fi nancial personal experience to help you with Yinvestments. It’s a conven- the investor. tional wisdom. It is only necessary Startup, unable to “sell” its project, is to determine the amount of invest- unlikely to be able to sell its service ments, how to attract them, and (product). So it is necessary to answer how to build up your business — on all investor’s questions of interest in your own money or on the money a clear manner, do not duck ques- invested? The choice is yours. tions, do not mumble and fumble. It’s There are many fi nancial tools that important to impress the person you can leverage resources in your are talking to. You must believe in your company, ranging from regular project. pawnshop loans to diff erent types Be prepared to defend your project, of derivatives: guarantees, letters of its weak and strong places, to argue credit, factorings, forwards, etc. But for investment worthwhileness, will your business be able to service payback time. the borrowed funds if the return of Of course, the investor will be inter- the investments takes more than ested in the fi nancial fl ow. Therefore, two to three years, and, of course, if it is important to work on fi nancial the investments are made for imple- plan to make the income and return mentation of the idea if the credit schedule of investments clear and resources are not available for fi rm transparent. pledges? In situations like these, you Theoretically, you should have three can only put a great deal of trust in options for you fi nancial plan: opti- an investor. But fi nding an investor mistic, pessimistic and realistic one. is not the most diffi cult task, more Special attention should be given serious and responsible aim is not to the pessimistic option, because only involve an investor in your idea, it refl ects all possible risks. External project, but also to convince him to risks are competitors. Internal risks entrust his fi nancial resources to are usually the staff . How the absence you. An important thing: the information Lyubov of one team member would aff ect Where to start? The fi rst thing to do is you provide has to be credible. You Tsymbal, the result and what this would entail. to put yourself in the investor’s posi- take other people’s money, and this While drafting fi nancial plan, do CEO of Finance tion and answer the question: what’s partnership is to last long. The false not indicate jaw-dropping amounts Solutions Group the key point for the investor? The an- at the very beginning is absolutely Company in it: high salaries, renting an offi ce swer is simple: return of investments unacceptable. Investors are more downtown. The staff can be easily with an investor-acceptable rate of likely to invest money in the project motivated by bonuses and awards. It’s profi ts and risk factor. At that time, it where the business is transparent and not worth saving the costs that make is clear that it’s not only money that clear, rather than where the company your business more effi cient. It is has been invested in expectations, but hides many “dark holes” to enhance important to implement a well-devel- also trust, to you, as a partner, to the “sustainability”. Although investors are oped system of business operations country in which the project is to be diff erent. But in this case, it must be that reduces costs, accelerates work, implemented, to your team, to your understood that the higher the risk, and improves services. company’s reputation. And if you have the higher the cost of the investment. The investor should in no way be met this challenge, there will be no And if investment in existing business pressured, he needs time to weigh the further obstacles to the development is more predictable, and investors can pros and cons. In the case his deci- of your business. better assess the eff ectiveness of their sion is not in your favor, you should Let’s proceed. How to prepare to meet investments, approaches to project not demonstrate the validity of your your investor, how to fetch him? evaluation are slightly diff erent. The opinion. Arrange several scenarios for your investor cannot see the current busi- Issues of interest to the investor: the presentation: that is optimistic and ness processes, fi nancial performance, payback period for the project; how pessimistic one, show the investor if the company has not yet had a good much money is needed, for what how you intend to get the expected reputation. In such a case, the decision period of time, what will it be spent result if diff erent factors aff ect the to invest or not to invest depends on; what percentage of income will implementation of your project. This primarily on the team, and the idea or the investor get; what will generate would increase your credibility and the project fades into insignifi cance. profi t? show that it is you who is managing Why is that? You represent the proj- I wish you every success in attracting your business, not vice versa. ect, don’t you? investors!

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72. THERMO-PACK 75. TECHNOLOGIA Founded in: 1996. Founded in: 1990. Region: Kyiv region. Region: Sumy region. Area of activities: packaging Equipment Area of activities: production of closures and Production. packaging materials. Export: Kazakhstan, RF, Moldova, Export: Countries of the EU, Asia, CIS, United States, South Africa, Australia. Lithuania, Latvia, Poland, Belarus. In 1998, the Technology plant established its own motor transport unit of 14 trucks Thermo-Park Packaging Equipment Plant is one of the to provide quick delivery of orders. In 2000, a printing service was opened for leaders in design, production, delivery, installation and service production of self-adhesive labels in rolls and sealing on high-complexity rolled of high-tech equipment for bottling, labelling, packaging materials (9 printing lines). In 2009, the plant was fully upgraded. In fact, a new and pipeline systems of any configuration in Ukraine. enterprise of 12,000 sq. m. was constructed, with equipment from Germany, Italy, Individual and all-in-one services are provided to improve the Netherlands and Denmark. This has enabled it to take one of the leading the productivity and production efficiency of enterprises in positions in the Ukrainian market for packaging materials and to successfully different industries. The equipment is designed to optimize export products. The plant also produces self-adhesive protective film, which is and automate the processes of rinsing and packaging used for temporary protection of construction products (sandwich panels, metal capping, beverage bottling, packing and labelling. All roofing sheets, profiled sheeting, etc.) from damage and pollution in transport equipment is certified and meets international ISO 9001:2009 and assembly. The net profit of Technology plant in 2015 exceeded 200 million (ISO 9001:2008) standards. The Thermo-Pack team consists of UAH (in 2014 it was 68,6 million UAH). 200 professionals providing engineering services that carry out commissioning works, etc. Also Thermo-Pack can provide 76. TIGRES the customer with all consumables. In 2016, a new production complex of the Factory with area of 9000 sq. m started its Founded in: 1997. operation. Region: Volyn region. Area of activities: production, wholesale and retail sale of goods 73. TERNOPIL POULTRY FARM for children. Founded in: 1971. Export: EU countries, Kazakhstan, Moldova. Region: Ternopil region. The Tigres specializes in the production of high-quality children’s toys from plastics and soft materials, in a range of more than 5,000 different items. In the spring of 2017 Area of activities: production of table chicken Tigres, together with Andre Tan, the Ukrainian designer announced the cooperation eggs, egg powder, broiler meat. and launching of the production of designer garments for the babies. In the next three Export: Countries in Africa and the Middle East. to five years, the enterprise plans to invest in production about $3 million. Annual Ternopil poultry farm has been working successfully with output is more than 7 million finished products, 20-30 per cent of the products, manufacturers of confectionery and bakery products for depending on the season, is being exported. In 2016 Tigres explored the entry into many years. The main products of the enterprise are table United States and African markets. eggs of Dobre Yaitse (‘good egg’) TM, which is sold by retail throughout Ukraine. About 93% of the company’s shares 77. TREMBITA belong to two natural persons, Petr and Oksana Sachik. The enterprise capacity allows producing of 10 to 12 million eggs Founded in: 1944. per month. The enterprise also produces compound feed to Region: Chernivtsi region. provide basic commodity production. Area of activities: production of men’s clothes. Export: Eastern and Western European countries, United States. ERNOPIL AIRY OLOKIA 74. T D (“M ”) Trembіta Company for many decades in a row has been retaining the best Founded in: 1957. traditions and a high level of excellence in the production of men’s garments. The Region: Ternopil region. factory works on German, Japanese, and American equipment and produces up to 1000 items in an 8-hour working day. The export history began in 1992 when Area of activities: production of the enterprise signed a contract with an Italian company. In 1995, 93 per cent of milk, whole-milk products, butter, lactic the total output was exported. Among the company’s partners are the world’s cheese, cottage cheese under Molokiya trade mark, casein. renowned brands, such as Mark Spenser, Benetton, Hugo Boss. Export: the Сompany’s products are exported to EU and CIS countries. 78. UKRAVIT About 76 per cent of shares of Ternopil Dairy Private Limited Liability Company belong to four individuals: Sergey Founded in: 1999. Baranovsky, Vitaly Kovalchuk, Eugeny Lubyak and Victor Region: Cherkasy region. Narolsky. The capacity of the enterprise enables processing Area of activities: production of plant protection products of more than 300 tonnes of milk per day. In 2015 the factory and fertilizers. produced about 45 thousand tonnes of milk and whole- milk products, 1.35 thousand tonnes of butter and about Export: Moldova, Georgia, etc. 1.4 thousand tonnes of casein. A large proportion of the Establishing Agro-chemical Factory, which is part of the UKRAVIT Company, the factory’s whole-milk products, due to a short shelf life, is owners have made use of the experience of world producers of plant protection being sold at the surrounding regions: Ternopil, Lviv, Ivano- products. The company has registered more than 120 agents in Ukraine, in Frankivsk, Transcarpathian regions. Ternopil Milk Processing 2016 it produced 14 new agents, and in 2017 it plans to extend the line with 7 Factory cooperates with Polish Mlekovita Company. Last new chemicals. Also this year UKRAVIT will open a new laboratory to conduct year this Polish enterprise produced the line of hard a complete soil analysis. Vitalii Ilchenko, Director-General of Ukravit, says that cheeses, Dutch and Maasdamer, under Molokiya trademark. investing in company development in 2015-2017 will constitute 250 million UAH.

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World’s best grain

70% of grain, purchased from Ukrainian farmers, Company has induced to develop more integrated and broad-scale OKKO Agrotrade is planning to export approach to agribusiness. “Agrarian production is one of the most interesting n November new agricultural direction will business areas. So, most major 2016 Galnaftogaz partially compensate for losses players from other areas are I Concern PJSC, in the falling fuel market, hedge looking for new opportunities which owns the currency risks and will help to in this industry, “- as Aleksandr largest filling station chain become a prominent player in Nikolenko, OKKO Agrotrade in Ukraine, established new the grain market. Director-General, explained. business area for commodity Having worked in agribusiness finance of the farmers, that is Immersion in Agro for many years, he has obtained OKKO Agrotrade. The Сompany Prior to OKKO Agrotrade firsthand knowledge of the also purchases grain and oil- establishment, Galnaftogaz specificities of the Ukrainian bearing seeds in Ukraine formerly has already worked market and the problems of and sells them in domestic in the agrarian area. Business farmers. Funding difficulties and foreign markets. To this Holding Company comprises and shortage of working capital diversification of Galnaftogaz Khlibprom Concern PJSC, have been experienced by both Concern business has led a which brings together nearly 10 large and small agricultural three-year long oil products bakeries and mills in Ukraine. producers. Bank loans are market decline in Ukraine. But the establishment of a not available to most farmers The Concern is confident that separate OKKO Agrotrade due to their high cost. Interest

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GRAIN AND OIL-BEARING CROPS for us. They help us to introduce AND THEIR PROCESSING PRODUCTS business culture, to develop a SALES STRUCTURE, % transparent relationship, and to provide our forward program As reported by OKKO Agrotrade Company. participants with the best grain pricing,” - as Aleksandr Nikolenko noted. In the total cost of farmers’ 70 30 field work, fuel costs account for about 20%, and some 30% are for the purchase of mineral fertilizers. This is half of agricultural needs OKKO Agrotrade has been focusing on. In addition to fuels and fertilizers, farmers need quality seed material, plant protection domestic facilities and equipment. For the market future Company plans to meet export 100% of farmers’ requirements for goods, needed in the stages of production, and to settle production process. accounts for it after harvesting The Company has been by crops payback. Financial purchasing wheat, corn, barley, resources are being allocated for soybean, rape, and it is ready to future harvests. The agrarian finance the cultivation of certain receipts mechanism, which is niche crops, such as peas, now working in several regions buckwheat, etc. of Ukraine, can also be used. The cost of commodity finance Day-to-day realities and is 10.5% annual interest. Risk plans insurance for mutual commodity In current 2016/17 marketing transactions is carried out by year, the Сompany plans to Universal Insurance Company, purchase 500 thousand tons of which is part of Business grain. As of the beginning of Holding Company, as well March, OKKO Agrotrade has as Galnaftogaz Concern. The already entered into contracts financing of the program will be with agroproducers for grain carried out with own resources supply of more than $3.5 rates of financial institutions of the concern and resources million under forward grain often exceed the profitability by international partners, such purchase program for harvest of even efficient farms. Despite as CHS Ukraine, which will 2017. “The active phase of these difficulties, agricultural also act as a partner in export entering into contracts is now companies should carry out operations. CHS Company is under way. We received offers seasonal work, increase the leading cooperative in the from farmers, accounting for production, lease new lands, United States, a publicly traded almost $35 million, that is the improve their quality, acquire company, in 2016 it was number amount we plan to allocate equipment and develop 84 in the ranking list of the in the current marketing year infrastructure. largest companies in the world. to grain purchases,”- as Mr. Being aware of this specificity, “Partnerships with such Nikolenko said. OKKO Agrotrade experts have companies are very important It is important for farmers created a tool to address the who have submitted their offers urgent needs of agribusiness in a to receive quick response and comprehensive manner. GRAIN, PURCHASED BY OKKO get resources to work. In view AGROTRADE, IN THOUSANDS OF of this the Company conducts Integrated tool TONS a quick review of the offer The Company has developed a within one day and in the near comprehensive tool that allows future the primary evaluation producers to obtain fuel from As reported by the Company. will not last more than four Okko filling station chain at 2016/17 MY 500 hours. A special team of risk the appropriate time, as well as analysts and profile managers mineral fertilizers at the main 2017/18 MY 700 works with documents. As

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the efficiency and timeliness In the next 2017/18 marketing of the production process are year, the Company plans to obligatory conditions, the increase purchasing almost Aleksandr Company tries to supply the threefold, that is up to 700 Nikolenko, customer with the first batch of thousand tons. OKKO fuel and other goods in four to Agrotrade five days after the submission of Focus on exporting Director-General documents. Approximately 30% of grain, OKKO Agrotrade receives purchased by the Company, is offers both from small farms, sold in the domestic market, cultivating 500 ha of land, and including supplying the “We want to be a respectable partner with a good companies with land bank Khlibprom Concern. Okko reputation for the East partners. We are ready to in several tens of thousands Agrotrade plans to export about assume all the risks in the territory of Ukraine and to hectares from all parts of 70% of grain and oil-bearing ensure our goods to be delivered in large quantities and Ukraine. “We’re interested crops, as well as their processing in high quality to our partners, including U.A.E.” in this program because, in products. fact, everything we need Ukrainian grain is being before sowing and harvesting exported to different countries, the United Arab Emirates by season we receive from sole including those in the Far 5 times. And now the share of company. This is a profitable East. The demand for flour, U.A.E. in the structure of flour cooperation, because OKKO produced in Ukraine, has been exports from Ukraine exceeds Agrotrade offers the lowest increasing in foreign markets. 7%. interest rate,’ - as Bohdan For example, according to OKKO Agrotrade intends to Timofeychuk, the farmer, UkrAgroConsult analysts, in the develop export supplies to other cultivating 2.2 thousand ha of current marketing year Ukraine countries, including those in the land, explained. has increased its flour sales to Middle East. Business magazine celebrates 25 years #12-13 March 27, 2017 Published since 1992 EXPORT STRATEGY THE POINT OF VIEW OF THE BUSINESS Nataliya Mykolska, Deputy Minister of Economic Development and Trade 11 от 13 марта 2017 года of Ukraine — on the National Export Strategy of the country ТОЧКА ЗРЕНИЯ БИЗНЕСАиздается с 1992 года

НЕТИПИЧНЫЙ МЭР WORLD’S BEST GRAIN OKKO Agrotrade is planning to export 70% Руслан Требушкин, of grain purchased from Ukrainian farmers мэр Покровска, — об опыте business-journal.com.ua децентрализации, развитии территориальных общин и успешных business-journal.com.ua инвестиционных проектах MOST PROMISING companies Как сделать of Ukraine депрессивные территории with export привлекательными potential для инвестиций

АГРАРНЫЙ Special edition СЕЗОН- not for sale ИННОВАЦИИ, ТЕХНОЛОГИИ,2017: ТРЕНДЫ, ИДЕИ СПЕЦТЕМАА Business' point of view

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79. UKRAINIAN BERRY 83. UKRELEKTROAPARAT Founded in: 2012. Founded in: 1964, 1994 — in private property. Region: Zhytomyr region. Region: Khmelnytskyi region. Area of activities: cultivation of berries. Area of activities: production of transformer Export: Qatar, Poland, Lithuania. equipment. The total area of the company’s berries plantations is more than 100 ha. In 2016 Export: CIS, EU, Africa, Latin America countries, Ukrainian Berry Company picked 110 tons of raspberries, 75 tons of which were U.A.E., Iraq, Egypt and others. summer varieties. The enterprise not only develops domestic marketing, but is Over the years, the plant has acquired a great deal of entering external markets as well. The first export batches were sent to Qatar at experience in the design and production of transformer the end of 2016. In early 2017, the leadership of Ukrainian Berry reported the start equipment to execute orders of any complexity. A complete of construction of a shock-freeze berries complex. The capacity of an enterprise is technology cycle has been organized for the production 12 tons of berries per day with 120 tons of frozen products storage capacity. It is of electrical products, from metalworking to ready-made planned to put the complex into operation in June 2017. transformers and package transformer substations, electric power reactors for electric trains, special low-yield 80. UKRAINIAN GRAFIT transformers, collection chambers, unilateral control panels, etc. The ISO-900:2008 Quality Control System has been Founded in: 1933. introduced to Ukrelektroaparat. The enterprise strategy Region: Zaporizhzhya region. provides for maximum self-financing. 85% of the funds invested Area of activities: production of graphite electrodes. in modernization and activities of the company are of their own. The net profit of the enterprise in 2015 constituted 66.4 Export: CIS, EU and other regions of near and far abroad. million UAH (in 2014 it was 278,2 million UAH). Ukrainian grafit specializes in production of electrodes for electro steel melting and mining equipment repair furnaces, as well as lining carbon materials for metallurgical, AVORYT GRO engineering and chemical industries. Technological and production processes have 84. F -A been constantly improving at the plant, and new products are being upgraded and Founded in: 2005. developed. In particular, in 2015-2016 the production of graphite monoelectrodes Region: Rivne region. and the industrial delivery of these products to the consumer have been performed, Area of activities: Cultivation and sale of soybeans, thus allowing for a foothold in new markets. And the development of a new type corn, wheat, barley, cleaning and drying of grain products, of Soderberg large-block electrode mass of the rectangular section will allow the production and sale of soybean oil cake. enterprise to enter the markets of America and Africa. Export: EU countries. 81. UKRPLASTIC The company handles more than 10 thousand hectares of land. It not only grows grain and oilseeds for its own sale and Founded in: 1927, 1991 — in private property. processing, but also provides its areas for different cultures to Region: Kyiv region. other firms. Since 2013, for the Austrian company Goldenkern, Area of activities: production of flexible packaging polymer materials. Favorit-Agro grows grain-seeded pumpkin seeds of the Rendorf variety, and since 2014 has been cooperating with the Suffle Export: CIS, Central and Eastern Europe countries. Agro company, for which it grows brewing barley. The company Ukrplastik is the largest processor of polymers in Ukraine, which is the top 20 of the plans to expand existing and introduce new processing largest enterprises in Europe. The volume of products sold in the first semester of 2016 capacities for farmed produce, in particular, along with the amounted to 1,05 billion UAH. More than 370 million UAH of which is for exported existing production of soybean oil and oil cake, the organization products. As a result of the implementation of new projects, the enterprise has already of the production of cereals, mixed fodders and flour. put into operation an innovation complex for polymers processing, with capacity of 50,000 tons per year. In 2017 Ukrplastik plans to upgrade operational capacity, ANCHI NVEST invest in the development of new products for the agricultural sector. Equipment 85. F -I for the recuperation and disposal of used solvents, laminating equipment for special Founded in: 2014. packaging and others has already been purchased. Total investment is 40 million EUR. Region: Mykolayiv region. Area of activities: production of pasta, cereals and natural 82. UKRSTALKONSTRUKTSIYA raw fuel pellets. Founded in: 1973, 1996-2011 — in private property. Export: EU and CIS countries. Region: headquartered in Kyiv. The main activities of the enterprise are manufacturing of Area of activities: producers of metal structures and installation of cereals and oilseeds products, as well as production and metal structures. marketing of fuel granular briquettes. The enterprise has a complete production cycle: ranging from the purchase of Export: more than 40 countries. seed materials to the packaging of finished products for Ukrstalkonstruktsiya specializes in the area of metal engineering, with Management further marketing in the trading networks. The warehouses Company performing the functions of the General Contractor, it provides a complete are equipped in accordance with state regulations, and have range of services for design, construction and installation of various types of steel air shafts to reduce the temperature of the product and for its structures, it controls and coordinates the operations of the members and partners ventilation, which makes oxidation processes impossible. These of the Holding Company. The Company comprises five leading factories of Ukraine, facilities are designed for storage of more than 30,000 tons manufacturing metal structures. The total production area of plants is more than 22 of products, which allows for the choice of the most suitable 000 sq. m, and the capacity is more than 100 000 tons of metal structures per year. storage conditions for each product or raw material. In 2015, Construction works are performed by Ukrstalmontazh Company. Among the most Fanchi-Invest fuel briquettes entered the top 100 of Ukraine’s renowned projects of Holding Company is construction work for Terminals D and F of best products. This is eco-friendly, high-heat solid fuel, which Boryspil Airport, Dnieper-Arena Stadium, Podilsk bridge crossing. has a much larger combustion time than traditional fuels. 53

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12-13/27.03.2017 BUSINESS Quartet SUCCESSFUL PROJECTS, WHICH WERE IMPLEMENTED BY FOREIGNERS IN UKRAINE

DELTA WILMAR CIS AGT PLUS Founded in: 2006. Founded in: 1984. Region: Odessa region. Region: Kyiv region. Area of activities: manufacture of Area of activities: furniture oil and fat products and ingredients production. for bread, confectionery and dairy Export: 40 world countries products manufacturers. The AGT Сompany has Export: European and CIS countrie.s been working in the Wilmar International Limited is a furniture fittings market leader in reprocessing and trade since 1984. To date, it of vegetable oils in Asia, was established in 1991. Today, Wilmar provides the market with a variety of furniture profiles International Limited is listed as one of the largest companies in (framework profiles, gaskets, plates, finishes for furniture the value of released shares on the Singapore Stock Exchange. It and product groups accessories), produced by the owns more than 160 production facilities, located on 4 continents. company at 110, 000 sq m of production facilities, located The largest enterprises are in Indonesia, Malaysia, China, India in the Antalya industrial area. Half of the company’s and Europe. The Delta Wilmar CIS has been operating in the food products is exported to 40 countries all around the industry market since 2006. The company produces oil and fat world. AGT is one of the top three world producers in this products and ingredients for more than 800 manufactures of sector, with similar production and production capacity. confectionery, bread and dairy products. The enterprise built a AGT produces 100 million meters of products per year complex for transshipment and processing of tropical oils at Yuzhny and employs about 400 people, engaged in production port, with processing capacity of 2,100 tonnes of refined oil and and upgrading of technologies, branding, pricing policies 750 tonnes of packaged products per day. Today, the Delta Wilmar and product design. The company has an ISO 9001- CIS is a large and powerful industrial complex for transshipment, 2000 certificate that meets the product and quality of processing and transport of tropical oils to Ukraine. production requirements In Ukraine

UKRAINIAN SUGAR COMPANY COFCO AGRI UKRAINE Founded in: 2006. Founded in: 2016. Region: Nikolaev region. Region: Kyiv region. Area of activities: production Area of activities: of sugar and sugar production agricultural products by-products (sugar beet pulp production. molasses). Export: Asian countries. Export: Eastern, Central and Western The Chinese Grain COFCO European countries. Corporation is one of In 2006, Ukrainian Sugar Company, the largest producers, Ed & F Man Sugar subsidiary, emerged in the Ukrainian market. In the processors and traders of agricultural products. COFCO following year the Company acquired 75 per cent of Zaselsky sugar Corporation has representative offices in more than plant shares. The remaining 25 per cent of shares were owned by 140 countries worldwide and a global trading network, another enterprise. Plant modernization investment, in the course agricultural production, storage and logistics capacity. of three years, accounted for about $30 million. In 2009, ED & F Presently, COFCO supplies grains and oils for more than Man aquired 100% of Zaselsky sugar plant shares. Today, the plant is a quarter of the world’s population. In March 2016, the capable of processing of up to 1,000 tonnes of raw sugar per day and, company acquired Noble Agri, an international agrarian thanks to using coal energy in production, it has the lowest average corporation with assets in Ukraine. Upon transaction cost compared to other Ukrainian plant. In 2016, the company completion, the company established a COFCO Agri, processed and exported 25,000 tonnes of raw sugar and 2,500 which specializes in trade and agro-processing. In 2015, tonnes of beet sugar, and in 2017 it plans to export at least 25,000 its exports amounted to 2,4 million tonnes, more than tonnes. Starting from 2017, the enterprise plans to launch sugar beet 1 million tonnes of production were exported to China. pulp exporting. Over the years of its presence in Ukraine, Ukrainian COFCO Agri in Ukraine monitors eight enterprises, in Sugar Company has invested $140-145 million and $ 30 million of particular the Belgravia grain elevators, Unigrain Basis, which it invested directly in the enterprise. The company intends to Novoalekseevskiy grain elevator, Karakubsk grain- purchase a few more sugar plants in Ukraine to triple the production collecting station, Satellite oil-extraction plant and the capacity, and to expand the land bank for increasing the cultivation of Danube Shipping and Stevedoring Company Export Grain sugar beets. Terminal (DSSC).

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SUCCESSFUL ASIAN BUSINESS IN UKRAINIAN MANNER

elta Wilmar CIS Ltd may be general, this list already includes young but very promising about one and a half dozen DUkrainian company. We countries. And we’re going to started working in Ukraine in continue and expand. The Company 2004, and have already obtained intends to increase its exports by leading position in fats and oils at least 20% annually. Our export market. More than 1,000 Ukrainian development targets also include confectioneries, bakeries and dairies increasing sales of sunfl ower use Delta Wilmar products. oil, expanding on the market of It proves soundness and shrewdness Ruslan sunfl ower oilmeal and husk. The of the investment decision, taken Zahrebelny, Company is a top 10 exporters following negotiations between of sunfl ower oil, and it has been Delta Wilmar CIS Dhruba Charan Panda, the Ltd Commercial showing no sign of letting up. Ukrainian businessman of Indian Director But the entry into international origin, Vasudevan Vairavan and markets, and particularly their Kuok Khoon Hong, the Chairman conquest, is a diffi cult matter of Wilmar, the world leading oil that forces us to be developing producer. The Delta Wilmar CIS Ltd’s unique The Delta and improving at all times. Aware An investment of about $250 million equipment and advanced know- Wilmar Group of this, Delta Wilmar CIS Ltd has enabled establishing new and how in fats and oils purifi cation of Companies become the fi rst Ukrainian company up-to-date production facilities in have enabled us to hold leadership produces to develop and launch a line of sunflower oil, Ukraine. The Company’s structure positions in Ukraine. The target products free of trans-isomers, ground oil- comprises two plants, that is oil of Delta Wilmar CIS Ltd is now cake, table preservatives and antioxidants. extraction plant and the margarine to intensify extensively its margarine, This move was commended by and fats and oils production plant. operation in Asia and Europe. margarine for our European partners, placing The top advantage is a logistically We have already become one of puff pastry, oil high emphasis on high-quality for mincemeat, favorable placement of enterprises, the largest exporters. In 2016 our and healthy food, which also has milk fat they are located near the Black Sea Company exported more than replacers, enabled us to increase our exports. port, in a pollution-free area 30 km 50% of margarine and fats and oils coconut and Company enterprises meet the away from Odesa. products, made in Ukraine. I should palm oil. requirements of a number of Of course, we would not have note that more than 100 European international standards, such as: ISO been so successful without the bakeries and confectioners have 22000, ISO 9001, GMP + B1, RSPO, participation and support of already been using our products SCCS, the quality of our products our major investor — Wilmar for baking. In 2015 Delta Wilmar is also confi rmed by Islam Laws International transnational CIS Ltd exported more than 7,000 (“halal”) and Jewish Laws (“kosher”). corporation, which market tons of margarine and fats and Neither economic crises nor the capitalization is now about $22 oils products. In 2016 exports occasional diffi culties with the billion in stock markets. In fact, volume more than doubled, having Ukrainian offi cials have hampered our Company is an example of exceeded 16,000 tons. our consistent development. synergies between Asian experience Among the countries, importing Our work confi rms that foreign and fi nancial opportunities and our products, are Romania, Poland, investment can and should be Ukrainian productive capacity. Bulgaria, Turkey, U.A.E., Armenia, successful in the territory of Our initial goal has been achieved. Uzbekistan and Kazakhstan. In Ukraine.

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of energy equipment, and to implement the most modern technologies of energy security. The inexhaustible These technologies have been implemented in all branches of the National Bank of Ukraine and in a number of other source banking systems. To implement these technologies the Private Engineering energy company “SINAPSE” is planning scientific-production enterprise “SINAPSE” has had to adapt to build its own energy centers using biomass to the Ukrainian regulatory framework to the European one, namely, to develop wenty-seven years three DSTUs, two DBNs, one of steady process Electrical installation code and T of technological one document of International perfection in the Electrotechnical Commission. conditions of Ukrainian reality In the end, the record list – this definition can be safely of the company “SINAPSE” given to the private scientific was increased by more than and industrial company 4 thousand of systems of “SINAPSE”. guaranteed power supply, Every crisis in the economy, including about 200 large together with losses, brought the systems, including substations, company to a new level. switchboard equipment, power For example, the crisis of 1992 supply units and diesel power contributed to the transition plants. The list of customers of the company activity from and partners includes: the the development of electronic National Bank of Ukraine, UMC devices to installation of (nowadays “Vodafone Ukraine”), imported equipment. The crisis First Ukrainian international of 1998 opened the way for the Bank (FUIB), “Ukrzaliznytsya”, implementation of projects under “Kyivstar“, “Ukrtelecom” and the Kyoto Protocol with the use many others. of cogeneration. The crisis of The introduction in 1995 of 2008 marked the beginning of the most powerful at that time the development of cogeneration system of guaranteed power facilities using alternative fuels. at the University in October Saveliy supply in 44 branches of the Finally, the crisis of 2014 brought 1990, he started practical Fedorov, National Bank of Ukraine was the company to the level of implementation of what he had the first project at national level. creating its own energy centers been teaching his students – to the founder Later, “SINAPSE” provided of "SYNAPS" with accumulated experience in perform electrical works and energy independence of company, the construction and operation of construct a system of guaranteed Honored power the transmitting stations of cogeneration plants. power supply at enterprises engineer of the mobile operator UMC The new investment project (SGPS). Ukraine (nowadays “Vodafone Ukraine”). “SINAPSE” stipulates the From the first days of In 1997, the company establishment of a centralized its existence, the company organized its own production of network of energy centers that “SINAPSE” has been carrying electrical equipment of 0.4 kV. operate on the basis of high- out engineering developments of Now, being Kyiv enterprise, it performance processing of national systems of guaranteed sets the complexes of guaranteed biomass by means of gasification power supply for critical power supply for the Ministry followed by production of “green power consumers, introducing of Infrastructure, Ministry of energy” from gas, heat and food them to Donetsk enterprises, Defense, regional offices of carbon dioxide. enterprises in other regions the NBU and for a number of and even to “Sakhalinenergo”, banking institutions, medical Polytechnics providing energy security and facilities, international airport The founder of “SINAPSE” independence. “Boryspil” and other enterprises. Saveliy Fedorov organized his The use of imported Hundreds of objects, where business being a teacher at the equipment allowed the the systems of guaranteed Donetsk Polytechnic Institute. company “SINAPSE” to reach power supply were installed Along with his five colleagues a new level of installation by “SINAPSE”, are up to now

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maintained by the technical INVESTMENT PROJECT will build not only conventional support unit of the company. gas-fired power plants, but In 2004, “SINAPSE” being energy centers based on the General indicators of the energy center an authorized distributor and of typical configuration equipment for the gasification service partner of General of biomass. Almost any organic Electric Jenbacher opened a new waste will be possible to Capital costs EUR 14 654 000 sphere of activity — construction Energy sold at “green tariff” use as raw materials: sludge of a gas cogeneration power 5910 kW/h accumulations, waste after wood plants. processing, food waste, chemical Thermal energy for sale By mid 2008 the company’s 6543 kW/h waste, agricultural waste, animal turnover exceeded 140 million, husbandry waste, poultry and the number of employees Payback period 2,75 years farming waste, fish farming was more than 400 people, The internal rate of return waste, distilleries etc. And mix including five branches in (IRR) 29.49% moisture can reach 60%. Ukraine. The average annual financial The Private scientific- flow, EUR 8 664 000 production enterprise Generation “SINAPSE” has conducted Average annual net profit – All large cogeneration power EUR 4 586 000 several experimental testing of plants (CPP) built in Ukraine gasification of biomass. “Now Average annual costs: since 2003 that use gas piston we are patenting all technical modules which run either on gas (converted to natural) solutions that will be used in EUR 87.62 per 1 thousand natural gas (five kilogram- cubic meters the farms, — Saveliy Fedorov force) and alternative fuels Gasifier design describes the further procedure. (coal-bed methane (three electricity – EUR 0.0222 The next step is the expert per 1 kW/h kilogram-force), livestock evaluation of these patents.” biogas (two kilogram-force) thermal energy – EUR 12.95 per 1 Gcal Later this monetized intellectual and agricultural biogas (two property will be transferred Annual contributions to the budget – EUR 1 963 000 kilogram-force) waste, landfill to the authorized capital of the gas (five kilogram-force) Reduction of CO2 emissions – 25086 tons per year joint stock company created were built by the company Substitution of natural gas 12706 thousand cubic meters per year by Saveliy Fedorov which “SINAPSE” or with its will be engaged in the design, Number of jobs – 28 employees participation. All installed installation and operation of power equipment Is made by Raw materials Chips (humidity 50%) energy centers. the company GE Jenbacher Gas calorific value –2400 kcal/kg Commissioning of the Engines (USA, Austria). energy centers will provide the During this period the ost of raw materials - EUR 17.07 per 1 ton possibility to recycle waste, to Private Scientific-Production Average consumption of raw materials 6.618 t/h produce green energy, heat and Enterprise “SINAPSE” has carbon dioxide from the exhaust Average raw material consumption to generate 1 kWh of electricity imported and installed 52 1.12 kg/kWh gases, and to allow substitution of modules of the total capacity of natural gas to reduce greenhouse about 300 mW. In addition, the gas emissions, create new company provides maintenance jobs, increase tax and foreign service of the equipment. The Hliboproduct), Rakitnyansky exchange revenues to the state first gas power plant (using coal sugar factory, PRJSC “Ekoprod”, budget. mine methane) under the Kyoto etc. Nowadays, ten promising Protocol was built in the mine In 2017 a new stage in sites for the construction of named after Zasiadko. At that “SINAPSE” operation started. the first such complexes are time it was the largest station in The company intends not only being considered. Totally, the world using coal mine gas. to design, build and equip Up to Saveliy Fedorov intends to The partners of the Private electric power plants, but also build 35 energy centers before Scientific-Production Enterprise to exploit them by selling the 2030. The American partner “SINAPSE” in cogeneration produced electricity and heat 40% of “SINAPSE”, Pierce Capital sphere are the following to end consumers. “During Partners Company is ready enterprises: JSC “Ilichevsky these 12 years, we have gained to finance the first station of the created JSC oil and fat plant”, “Factory huge experience, not only in partially. The new project is will be off ered of banknote paper of NBU”, design and construction but, open for other investors. Up to for sale, investors “Ukrainian dairy company”, most importantly, in operation will also be able 40% of the created joint-stock “PepsiAmericas” (TM Sandora), of power plants,” says Savelii to enter the company will be for sale, the mine “Chervonoarmiyska Fedorov. property under investors will also be able to Zahidna No. 1”, “Coca-Cola In this work the company construction enter each particular facility beverages Ukraine”, JSC plans to use not only the of each energy designated for construction and “LNK”, MHP (Myronivsky experience but also know-how: it center operation of the energy center.

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86. FRAU MARTA 90. C HERKASY INSTRUMENT Founded in: 2003. MAKING PLANT Region: Cherkasy region. Founded in: 1992. Area of activities: production of frozen vegetables and berries. Region: Cherkasy region. Export: CIS countries. Area of activities: production of The company performs a complete production cycle that includes all the manufacturing electrical equipment. stages of the final product, such as land cultivation, planting, growing, harvesting, Export: Bulgaria, Belarus. processing and freezing. In particular, the enterprise performs freezing on modern European equipment using the most advanced technologies. The main assortment is the The main products of the Cherkasy Instrument Making traditional group of vegetables: peas, corn, onions, peppers, cabbage (cauliflower and Plant are AC and DC electric motors and electrical broccoli), etc. Since 2014 the company has been processing fruits as well (strawberries, equipment for the chemical industry. Now the plant has cherries, apples, and blueberries). According to Irina Pavlenko, the Director-General of established the production of power tools, burglar alarm Frau Marta, the fruit production line was a ‘trial operation’ but it became the foundation systems, car salon heaters, electric fans of all types, for the future development of the company, including the further expansion of the gasoline pumps and other products in demand. The vegetable production line. plant has its own galvanic Production area of 6 thousand square meters, plastics 87. KHLADOPROM processing area, assembly production, tool building (total area — 32 hectares). Founded in: 1932. The staff of the enterprise is 430 people, the statutory Region: Kharkiv region. fund is 14 million UAH. Area of activities: ice cream production. 91. CHERKASYBIOPROTECTION Export: United States. The enterprise’s capacity is more than 100 tons of ice cream per day. The company Founded in: 1968. produces not only ice cream under its own Khladik, Kashtan, and others, trademarks, but Region: Cherkasy region. also ‘private label’ products. Khladoprom is a member of the Private Label Manufacturing Area of activities: production and Association (PLMA), which includes more than 4,000 companies from around the world. sale of biological products for plant In 2012, the company confirmed compliance of its production operation with international protection. standards and received IFS (International Food Standard) Certificate that guarantees Export: did not enter the foreign markets yet. compliance with the European Food Industry Standards. The company specializes in the production of biological 88. ZUNAMI products to protect crops from diseases, pests, rodents, and also produces biological growth regulators — Founded in: 2001. nitrogen-fixing and phosphor-mobilizing bacteria. Scope Region: Volyn region. of activities and developed scientific methods fit into the strategy of organic farming, and the effectiveness Area of activities: Processing of wood, production of wooden and safety of company’s biologics are confirmed by EU coatings and solid biofuel (pellets). certificates. The company has a biofactory and 17 bio- Export: EU countries. laboratories, cultivates about 315 thousand hectares of The capacity of the Zunami plant is approximately 2 million square meters of wooden crops a year and is the only enterprise in the country coatings per year, which provides it with a strong position in the European market. The that deals with plant biosecurity. Seven biopreparations company produces veneer (lamella) by sawing. The quality of this veneer is higher than have been registered. According to the management, that of plow, since the possibility of internal cracks is excluded. In addition, in texture, the company intends to join commitments and it does not differ from a massive board or beam. Also, the plant produces about 1.4 cooperate with farmers in the cultivation and sale of thousand tons of pellets per month, the quality of which is confirmed by the results agricultural products, and is also ready to enter the of the SGS laboratory analysis. Pellets are made from oak piles, which are the main world markets with its products. production waste. This ensures a high calorific value of biofuel. Drying of pellets is carried out in 21 cells, which are made by special order Zunami, taking into account the features 92. CHERKASY SILK FACTORY of production. Founded in: 1967. 89. CHERKASY FACTORY OF PLATE MATERIALS Region: Cherkasy region. Area of activities: production of Founded in: 1993. natural and synthetic fibers. Region: Cherkasy region. Export: USA, Italy, Hungary, Slovakia, etc. Area of activities: manufacture of wood-shaving plates. Cherkasy silk factory — one of the largest enterprises Export: EU and CIS countries, Central Asia and Transcaucasia. of light industry in Ukraine, produces ready-made Cherkasy factory of plate materials (Former factory “Marelli”) Is one of fabrics of chemical fibers and threads, mixed (unmixed) the top-5 producers of particle board in Ukraine. The plant is the only enterprise in the fibers, artificial and natural fibers. In the 1990s, the Cherkasy region that performs a full cycle of processing of forest resources. The main plant’s capacity was 91 million square meters of finished products of the plant are sanded chipboard of ordinary and high moisture resistance. fabrics a year. The plant accounted for 38% of silk fabrics The company uses equipment, components and facing accessories from Germany and manufactured in Ukraine. More than 5 thousand people other EU countries. In 2014-2015 years. The Cherkasy factory of plate materials produced worked at the plant. Now the company is constantly about 70 thousand tons of particle board per year. More than 60% of the products were working on improving and creating new modern fabrics exported. that meet international standards.

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MADE IN UKRAINE

Ukrainian businessman Aleksandr Hromyko INTERNATIONAL PLAYER The relatively low cost of production replicated the so-called ‘Chinese miracle’, provides the opportunity to having established the production of household compete not only with Chinese products in Ukraine, but in the world appliances in Ukraine, the cost of which is lower market as well. The KTD Group is the largest supplier of household than in the Celestial Empire appliances of various brands in the European market. As consequence of the EU-Ukraine Association lexandr Hromyko was only Agreement, the Company can eff ect 21 years old, when in 1996 duty-free sales of its products on Ahe established a company, the EU markets. «Until now we have selling imported household been selling our products to Eastern appliances. Just two years later, the European countries, but we are businessman visited the exhibition negotiating the supply of our ovens in Hong Kong, established and refrigerators to the Auchan business contacts and started Trade Network in Italy, also we are selling Chinese equipment under shipping our products to France, registered Saturn trade mark. for an online store. Nowadays Until 2008, deliveries had been we import these appliances, but carried out through Czech partner — with launching of Cherkasy plant the goods at the ports of Hamburg production, we want to expand our and then were delivered to Ukraine, sales at the expense of Portugal and Russia and Belarus. During 2008 other countries,» — Mr. Hromyko crisis, the products were shipped via says. Odesa ports, where the warehouses Thanks to large and well-established for Eastern European countries had dealer network, the Company has been established. been selling its household appliances Facilitating logistics helped the KTD production sites will be built. Total Aleksandr in more than 50 countries in Eastern Group to survive the 2009 crisis. investment in the project amounts Hromyko, and Western Europe, Africa and the At the same time, the Company’s to $23 million. At the end of March Middle East. Offi ces in 15 countries management started to consider local this year, the production of electric President of of the world have already been the KTD group production. stoves is to be launched at the new established. Recently the offi ces in company plant. In the summer the production Dubai (U.A.E.) and Tunis were opened. HOME IS BETTER of high European quality and A +++ Proactive selling of household In 2009 Aleksandr Hromyko launched energy effi ciency refrigerators, appliances to Africa and the Persian production of Kupava Group semi- including No Frost System, is to be Gulf markets is one of the top automatic washing machines in Kaniv launched. In the autumn the plant’s priorities in the Company’s strategy. (Cherkasy region). Successful sales of new department will start working on washing machines encouraged the the production of convection heaters. CONSTRUCTION PROJECT enterprise’s management to expand Capacity of new plant is optimized In addition to the production of its product range. In the course of for manufacturing 200.000 ovens, household appliances, the KTD time this production site began to 300.000 refrigerators and 25.000 Group is engaged in construction, it produce electric kettles, mixers, fan convectors per year. is one of the shareholders of Novyi heater, food dryers, meat grinders “The cost of production of certain Chornomorsk housing complex under diff erent trade marks, including types of household appliances in project in Odesa region of Ukraine, Saturn TM. Ukraine is lower than in China. The with total area of 107 ha. Proximity In addition to the production of average wage in Ukraine is three to the port city makes this region small household appliances, the times lower than that of workers highly attractive for logistics business. Company decided to invest in the in the Celestial Empire. Therefore, Besides, it is also a developing production of large household in the next ﬁ ve years, we plan to resort with 12 km of public beaches. appliances, so it purchased the former replace 80% of household appliances According to architects’ concept, Strommashina Machine-Building supply from China with Ukrainian the project will be implemented as a Plant in 2015, located in Cherkasy. products”, — as Aleksandr Hromyko, ‘city within a city’, that is a residential At the reconstructed plant with the owner and the president of the complex with self-contained total area of 40.000 sq m, several KTD Group, observes. infrastructure.

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tons per year, 12 units for AK- 72 nitric acid production with Driver of chemical capacity of 380 thousand tons per year, 23 units for ammonium nitrate production, 6 units for the caprolactam production with industry capacity of 50-80 thousand tons per year, 15 units for methanol lvigo is a group of production with total capacity companies which of 3664 thousand tons per year, А incorporates 5 units for acetylene production scientific and operate in Russia and the CIS research, countries. Unique Togliatti - Odessa development, chemical- ammonia pipeline was built, which engineering and design allows exporting liquid ammonia enterprises engaged in in many regions of the world. development of chemical According to the Institute’s projects industry. Alvigo Group includes air-nitrogen industry facilities were engineering institutes having built in Afghanistan, Bulgaria, 85 years of experience in Germany, China, Cuba and development and design of Romania. chemical plants: Scientific The Alvigo group of companies Institute ‘Khimtechnologiya’ employ top-ranked specialists, they (Severodonetsk, Ukraine); possess instrumental framework Novomoskovsk Institute for modern engineering and tech- of Air-Nitrogen Industry nological support (including unique (Novomoskovsk, the Russian archive on existing enterprises op- Federation), State Institute of SI ‘Khimtechnologiya’, all of them erating in the former Soviet Union), Air-Nitrogen Industry (Moscow, work successfully. The results their own or licensing develop- the Russian Federation). For of the comprehensive efforts of ments for 3D-model building at all the last 25 years the following the Institute made it possible to stages of new production creation companies were established: create a home-made unit for the About 70 or modernization of existing one. Alvigo AS (Tallin, Estonia); production of adipic acid with a units for the It is important to emphasize that Alvigo asset management capacity of 30 thousand tons per production of maintenance of favorable environ- company (Moscow, the Russian year. The achievements of the ammonia with a mental conditions is the priority of capacity of Federation); Scientific and Institute also include the creation most importance to Alvigo there- Technical Centre ‘ALVIGO-M’ of a complex for the production fore all group’s efforts are aimed at (Kyiv). of hexamethylenediamine 55-450 developing technological solutions Without a doubt, and SG salt within the “Azot” thousand with minimal impact on the envi- SI ‘Khimtechnologiya’ might association in Rivne. The tons ronment. Alvigo’s primary target be termed the biggest institute technology of obtaining SG salt is organization and management of per year were in chemical industry in the using a continuous scheme in an designed and design results development by the CIS. Founded in 1949 the aqueous solution was realized built over the group’s enterprises for individual institute introduced a number for the first time in the world period of SIANI or complex industrial facilities. Al- of technological processes in practice. The institute’s toolkit existence vigo performs design for individual the industry relating to fertilizer includes a technology for the plants, as well as acts as a principal manufacturing and organic production of acetic acid by designer of facilities, including the products synthesis throughout methanol carbonylation, which is main operating units and infra- its history. All ammonium successfully used at the plants in structure facilities. Alvigo Group carbonate and potassium nitrate Russia, Ukraine, China and Iran. has integrated process control manufacturing facilities operating About 70 units for the systems for design and production within the CIS are constructed production of ammonia with of project products and finance. upon the institute’s projects. a capacity of 55-450 thousand Alvigo has established business The Institute focuses on the tons per year were designed and relations with almost all ammonia, technologies for the production built over the period of SIANI ammonium nitrate, nitric acid, of methanol, ammonia and existence (founded in 1931 as urea, methanol, acetic acid and other organic synthesis the National Nitrogen Institute). acetylene producers. Currently products. More than 10 large Today 22 units for ammonia Alvigo participates in designing aggregates for the production of production with a capacity of 450 of new plants and in various methanol within the territory of thousand tons per year, 87 units reconstruction projects in China, the CIS were built according to for the soft nitric acid production Iran and the European Union the technology developed in with capacity of 120 thousand countries.

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resources in the form of credit funds from the international Clean Energy financial institutions. In particular, there is an experience of successful cooperation with the leanEnergy is one of the current year the solar power EBRD. the largest Ukrainian station in Zhmerynka district of At the same time, next year C companies producing Vinnytsia region with a capacity the company intends to attract electricity on solar of 9,8 MW per year has been put both private foreign investors, and power stations. The company into operation, and in April it is financial institutions and invest- has been working at the market planned to start a station with a ment funds to further develop- of renewable energy since 2012, capacity of 7,3 MW per year in ment and capacity expand in using the most modern and hi- Bar district. Also, the company the development of solar electric tech equipment. CleanEnergy has installations of solar power CleanEnergy power. Potential investors are of- has experience of successful start generation in Henichesk district launched fered to get the whole all portfolio of 16 power plants, so that their of Kherson region (launched in 16 power plants of the electrogenerating capacities, total power has increased to 2016). Constructed and put into with a total one-two of already started power 107 MW. Total capacity of solar operation power plants include power of plants or take part in creation of power stations of the company 27-74 thousand modules of solar new ones. allows reducing the volume of panels each. 107 In its external economic strat- emission of carbon dioxide in the This year CleanEnergy plans МW egy, the company plans to apply ac- atmosphere by 92 thousand tons to start five-six more new solar tively acquired technical solutions annually. power stations within the territo- and experience in the markets of Among the projects realized by ry of Ukraine with a total power other countries. At the same time, the company, it is worth noting about 80 MW. In the future, the possible participation of investors solar power stations in Vinnyt- company intends, annually, to in the development of the markets sia region. In particular, projects increase the power of stations for of solar electric power by the com- of solar power generation in 9 about 80-100 MW. It is expected pany outside Ukraine, develop- population centers with a rated that in the current year sales vol- ment of projects and construction capacity of 7,7-19,9 MW have ume in the domestic Ukrainian of stations abroad, is considered. In been successfully realized. These market will amount to 140 mil- addition, markets of Central Asia power plants were launched lion kW per hour. The company and Middle East countries are of during 2012-2017. In March of constantly develops and attracts high priority.

Bar district, Vinnytsia region Henichesk district, Kherson region

Sharhorod district, Vinnytsia region Chechelnyk district, Vinnytsia region

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93. BLACK SEA YACHTS SHIPYARD 96. ELVORTI Founded in: 2005. Founded in: 1874, 1993 — in private property. Region: Mykolayiv region. Region: Kirovohrad region. Area of activities: production of sailing Area of activities: agricultural Machinery Production and motor yachts. Export: 12 EU and CIS countries. Export: EU countries. Elvorti produces almost entire range of agricultural trailers (so-called small machinery), The company is engaged in the construction of motor and sailing such as seeders, cultivators, harrows, sprayers, sowing complexes, etc. In 2016, the yachts for individual orders, has its own design office, which enterprise exported about 60 per cent of manufactured products. The net financial develops all projects of vessels that are produced at the company’s profit in 2016 constituted 249 million UAH (in 2015 it was 78,8 million UAH) According to shipyard. It should be noted that the company’s specialists can Pavel Shtutman, co-owner and chairman of the Elvorti Supervisory Board, this volume independently manufacture all the furniture used on ships. The of export sales is normal for the enterprise. Black Sea Yacht Shipyard has repeatedly been recognized as the best shipyard in Ukraine and has received appropriate awards. The 97. ELFA company regularly participates in international boat shows. Over Founded in: 1997. ten years of operation, more than 40 motor and sailing yachts were built on individual projects. Among them: a steel sailing yacht “S” Region: Kyiv region. 20.6 m long (BSY 67), a yacht “Red Star” length of 20 m according to Area of activities: production of cosmetics, household goods and PET packaging. the project BSY 200S, yacht “Magic Light” length 17 m according to Export: Russian Federation, Moldova, Belarus, Latvia, Lithuania, Azerbaijan, Syria, the BSY 57 project, as well as a motor yacht with a length of 27 m Lebanon, Israel and others. under the project BSY 90, the descent of which was held in 2016. In 1997, the company began its work as a cosmetics distributor of European producers. Today, Elf group of companies comprises a natural cosmetics factory, founded in 2005, 94. ECONIA and a pharmaceutical factory. Company’s brands portfolio includes 16 brands, such as Zelenaya Apteka, Salon Spa Collection, FreshJuice, Dr. Sante, SunEnergy, Caramel, Founded in: 2008. PinkElephant, BIO, and others, there are more than 1,000 various products. Region: Cherkasy region. Area of activities: production of drinking water and baby food. 98. YURIIA Export: Belgium, Iraq, Moldova. Founded in: 1995. The company became the founder of baby food water market Region: Cherkasy region. and developed its consumption culture in Ukraine. Together with scientists, the company has established special standards for such Area of activities: production and sale of dairy products. water. The company’s portfolio comprises water under Malyatko, Export: Countries of Asia, Africa, CIS, Middle East. Akvulia, Chystyi Klyuch TM, and others. The project capacity of Yuriia — The successor of the Cherkasy city dairy factory, built in the plant in Cherkasy region reaches nearly 40 million liters of 1964, Produces dairy products in a wide range of TM “Voloshkove pole.” The dairy plant is PET packed water bottles per year. The water goes through a part of the “Voloshkove pole” corporation, which unites two more dairy plants in Ukraine. 10-level clean-up system. There are two specialized facilities in the The company processes over 200 tons of dairy raw materials a day, shipping daily to enterprise. The first facility produces water in bottles of 0.33, 0.5, the Ukrainian retail chains more than 120 tons of dairy products. Its net profit in 2016 1.5 and 2 liters on a line with a capacity of 12,000 l bottles per hour. amounted in 11.3 million UAH. The second facility produces water in bottles of 5 liters and 6 liters on line with capacity 2,000 bottles per hour. Econia also produces 99. JARYCH mashed vegetables and fruit, and juices for children, as well as biscuits and cereals. The company’s turnover in 2016 amounted to Founded in: 2008. 151 million UAH. The baby food producer is developing an export Region: Lviv region. strategy, this year it intends to launch delivering products to China. Area of activities: manufacturing of confectionery products. Export: EU and African countries. 95. ECO OPTIMA In 2008, the current owners bought a factory from the Nestle Corporation, and in Founded in: 2009. 2010, the Yarych trademark appeared. In 2011, the export history of Yarych has started, Region: Lviv region. with the supply of products to Poland. Presently the factory makes cookies for a Polish supermarket, under their own trademark. In addition to Poland, Yarych has been Area of activities: development of renewable cooperating with Germany, Hungary, Italy, China and Nigeria. energy power plants. Export: in process of development. 100. YAROSLAV Eco Optima Company has been implementing energy projects with renewable sources of energy, such as wind, solar, biomass and Founded in: 1995. small hydropower plants. Eco Optima cooperates with companies, Region: Kyiv region. developing projects, carrying out construction and commissioning Area of activities: textiles and fabric production. works and operating power plants. In cooperation with companies from Austria, Germany and Poland, it participates in the construction Export: EU and Asian countries. of four WPS facilities with total capacity of 112.5 MW. It also Yaroslav combines four production enterprises in Kyiv, Kyiv and Cherkasy regions. performs the development of four solar power plants with a total The manufacturer’s assortment is bed linen, blankets, bedspreads, mattresses, kitchen capacity of 10.9 MW and biofuel power plant with capacity of 1 MW. implements and other textiles. The enterprise has received international quality All facilities are located in Lviv and Ivano-Frankivsk regions. In the certificates. In addition to production, Yaroslav is engaged in retail and wholesale construction of facilities Eco-Optima is actively using credit facilities marketing of its products (it owns 18 factory stores). The enterprise exports not only of the European Bank for Reconstruction and Development. finished products but also raw materials in more than ten countries in Europe and Asia.

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The enterprise is located in one of the most industrialized regions of Ukraine, with convenient access to the commodity base. The enterprise was constructed from the ground up, with due regard to glassware up-to-date quality and packaging requirements. Energy efficient technologies have been applied here. The plant manufactures glassware of any degree of complexity for distillery and canning industries. Estimated output of the enterprise’s first stage is 18 million clear glass bottles and jars per month. The plant is in Top 7 glass packaging manufacturers in Ukraine with 5% market share. In 2016 the enterprise’s sales value amounted to $15 million, Towards Olympus EBITDA accounted for $4 million. The international Industrial and Construction Group Among the customers of the plant there leading producers of of Сompanies Olimp.group is developing one of the various beverages in Ukraine and CIS countries. In 2016 largest technology parks in Ukraine and Europe and export share in company’s is seeking investors for glassworks second stage revenue structure amounted to 35 per cent. construction The enterprise’s infrastructure, batch production and manufacturing krainian Industrial Distillery, Malinovskiy facilities were initially and Construction Glassworks, Bikorm Food designed and built with the U Olimp.group Supplements Factory and KGS expectation of three production Сompany (www. Aluminium Closures Factory. lines, with total capacity of olimp.group) was founded The Malinovsky Cable Factory 600 tonnes of glassware per in the 1990s. The company is being prepared for launch day. Operational line’s output is engaged in manufacturing and in the second half of 2017 — is 240 tonnes per day, during of various food, beverages, 2018. Olimp.group is going to the second construction stage packaging, cable products, as purchase and install equipment the equipment with the same well as in housing construction, for glassworks second capacity will be installed, commercial real estate production line. and during the third stage it construction management of The Malinovsky Glassworks, is planned to build a small shopping and business centres. as part of the Malinovsky line to produce expensive Within its activities, the Group Industrial Park, was built artware bottles. That is, after has constructed more than 1 in two years and put into the implementation of the million sq m of housing in four operation by the end of 2007. second stage of the project, the countries. aggregate capacity of two lines One of successful company’s INVESTMENT PROJECT will amount to 480 tonnes of projects is Malinovsky glassware per day, or 50 million Technology Park, located in Second stage construction of glass containers per month. Kharkiv region, one of the glassworks in Kharkiv region The enterprise is going largest food technology parks to produce medical glass in Ukraine and Europe. Its Production capacity increase: up to 480 million tonnes containers, baby food glass per day. construction started in 2002. jars, wide-mouthed jars and Since then, four modern Required funding amount: up to 30 million EUR bottles for highly carbonated factories have been built on Completion period: 2017-2018 beverages. The enterprise will its territory, such as: Prime Payback period: 6-7 years. focus on export marketing.

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Sinteza Agro invests in the future

inteza Agro The total annual volume of Long-term cooperation with is a group of processing constitutes 180 farms and a well-developed S companies, thousand tons of oilseeds, quality control system carrying out its allowing Sinteza Agro to sell has ensured delivery and activities in the agro-industrial on the domestic market and processing of oilseeds with sector of Ukraine, it forms to export up to 75 thousand an increased oil content. The part of Sinteza Agro LLC tons of vegetable oils and up reputation of a responsible Investment Holding Company, to 68 thousand tons of oilseed payer, performing payment headquartered in Buffalo, New meal and cake per year. Also transactions always in due time York, United States. due to its own well-developed and in full, ensures loyalty to Key business areas of interregional network of Sinteza Agro on the part of the Group are processing of representative offices, the farmers providing crops under oilseeds such as sunflower, group of companies procures terms of goods credit. rape and flax, with subsequent grain for export totaling up to For processing facilities, sale of vegetable oils, oilseed 150 thousand tons per year. Sinteza Agro has always been meal and cake on the domestic and remains the major crop and foreign markets, as well as Competitive provider operating on a tolling export of grain crops such as Advantages agreement basis with stable wheat, barley and corn. Throughout the Company’s quality and timely deliveries, Currently, the group of history in the Ukrainian ensuring a smooth production companies has been processing market, Sinteza Agro has process. oilseeds at the facilities earned the reputation of a Over a short period of time, in Kharkiv, Donetsk and reliable partner in all areas of Sinteza Agro has managed to Chernihiv regions of Ukraine. its activities. configure and maintain stable

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complex logistics chain delivery running smoothly, to provide establishing agricultural of end products by road and and generate employment enterprise with a highly rail, both for consumers in the in the local labour market, developed infrastructure domestic market and to the develop infrastructure in their using precision farming ports of Mariupol, Kherson, regions. technologies and minimum Mykolayiv, Odesa, Ilyichevsk Success and further tillage. The Group understands under CPT terms and to border development of the Group are that Ukraine is a country checkpoints under DAP terms inextricably linked with the with exceptionally favorable while exporting. stability of economic situation conditions for cultivation of Sinteza Agro is a certified in Ukraine. Therefore, a agricultural products due to rail freight forwarder: the substantial contribution of the high soil fertility, good Group leases more than 100 Sinteza Agro to the economy climatic conditions and tanks and grain hoppers, of Ukraine has not only been favorable geographical location enabling higher operating timely payment of taxes, but relative to major international margins while significantly also the strategic promotion of markets. An owned land lowering the risks of late business trends, adding value bank will strengthen the deliveries of end products. and generating employment. The total Company’s vertical business Sinteza Agro has been Implementation of this strategy annual volume model and provide added selling its products to the is the production and export of processing security over the long term as world’s largest multi-national of not only raw materials, but constitutes the country reestablishes itself traders in Ukraine, having rather processed goods, such and integrates closer with the obtained the reputation of a as vegetable oils, oilseed meal 180 European Union. reliable supplier. Sinteza Agro and cake. The Сompany targets thousand Sinteza Agro is focused on is a team of experts, thoroughly are to develop projects relating tons an agricultural production analyzing all processes and to more advanced processing of model of management which is risks in every step of its agricultural products. of oil-bearing based on cultivating multiple operating process, to ensure crops, allowing 15-25 thousand hectares quality control and operational Development Strategy Sinteza Agro agriculture clusters mainly in efficiency. Sinteza Agro Sinteza Agro intends to to sell on the Western, Central and Eastern domestic market understands that shipment advance its activities in regions of Ukraine which and to export delays or quality shortfalls can Ukraine in two main areas: provide for the most fertile up to have detrimental effects for its processing oilseeds and sale lands and minimized adverse clients and partners as such of vegetable oils, oilseed 75 weather conditions. The main the Company’s highest priority meal and cake; thousand crops in the crop succession is to control and fully mitigate crop growing and sale of tons are wheat, corn, soybeans and risk situations relative to the agricultural products. sunflowers. Company’s quality standards Processing of oilseeds is of vegetable Sustainable production and shipping obligations. the primary business area oils†and up to operations of processing Sinteza Agro have never had for the Group. Many years of facilities and agriculture any claims relating to the experience acquired in this 68 clusters depends to a large contracts’ due performance. market, a leading team of thousand extent on the capacity for experts, providing full range tons procurement of raw materials Social from effective procurement, and storage of agricultural Responsibility to production, to sale of end of ground oilcake products. For infrastructure Sinteza Agro takes products and logistics, lay the and seedcake per support of core business areas, exceedingly responsible framework for the Group’s year Sinteza Agro intends to make care for the social protection planned investments into significant investments in of its employees, paying major industrial assets as assets for storage and handling decent wages, providing real part of its growth strategy. In of agricultural products. In opportunities for career growth particular, the Company aims addition, Sinteza Agro provides and enhancing skills. at purchasing oil extraction in its development strategy Taking into account plants with a capacity of up to investments in both the regional specificities, Sinteza 20 thousand tons per month in construction and acquisition Agro strongly supports local the Eastern region of Ukraine, of facilities for storage of communities. Due to mutually that has historically been grain and oilseeds near their beneficial cooperation with the considered to be a sunflower agriculture clusters and Group, agricultural producers, seeds cultivation area. processing facilities, with growing sunflowers in areas Further, Sinteza Agro a total capacity of simultaneous totaling around 80 000 intends to establish its own storage of up to 300 thousand hectares, have a stable income. land bank, with its gradual tons. It gives them opportunity expanding up to 100 thousand Sinteza Agro invests in the to keep their own business hectares, as well as the future, making progress today.

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get the main reason of the discrepancy TO RISE NOT TO FALL DOWN, of the Ukrainian proposition to the world demand. The diffi culty of cooperation with the export OR EXPORT IN UKRAINIAN STYLE departments of Ukrainian companies is the fourth problem. At best, they respond to one request out of ten. The very time when we discuss level of secrecy of their quotations may Ukrainian business with the be compared to information about Area Erepresentatives of foreign 51 or a nuclear stocks of North Korea. companies, I involuntarily imagine the They do not get that this quotation is scene from the movie “Chasing two a mandatory sales tool, they consider hares”, in which Pronya Prokopivna is each request on their provision to be an lying on the couch, and Hymka tells to attempt of industrial espionage. If one the guest: “The lady has lied down and doesn’t respond twice, the customer is asking you in!”. will vote with his money for the goods Ukrainian businessmen treat their of a competitor. And the English companies as beloved children. They version of the website does not exist absolutely do not notice their faults and alongside with English speaking sales believe in the absolute competitiveness staff , not to mention the reluctance of their products. Majority of them do to use basic fi nancial tools such as not have an objective ability to assess letters of credit, for instance. We want the reality at all. only 100% prepayment, and we do not Claptrap? Let’s do the math. Over the understand that many contractors past fi ve years, the total volume of can’t send money, never having been to Ukrainian exports fell by $32 billion, the country, without any information actually - by half. The average annual on the quality of the product. They can’t accumulative percentage drop is equal send money to a country where there to 12% per year. In particular, only is war and where it is more complicated deliveries in Europe decreased by $8 to get a visa then to the United States. billion. is questionable at international Artem We can thank our Ministry of Foreign When foreigners talk about working business arena. The roots of the Gudkov, Aff airs and Migration Service for the with Ukrainian companies, they have problems are dual, both the companies PanAfrican incredible regulation of this procedure. more arguments not to work with that many times let down their Trading Alliance The lack of competitive advantages of Ukrainians then to do it. We do not international counterparties and Director Ukrainian goods in the international really think how our country in general ruthless state apparatus represented market is the fi fth reason. The majority and companies in particular, look in by Ukrzaliznytsya, Ukravtodor, the of businessmen do not understand front of the rest of the world. And the customs and tax services are equally which criteria are top-priority for situation is actually quite depressing. to blame of it. Sometimes it seems, that certain countries and companies. For War is the fi rst and key issue. Whatever their goal is to completely eradicate some countries price is above quality, words the establishment uses to name domestic exports. Although this is for others quality is above price. We the confl ict in Eastern Ukraine, the perhaps a topic for a separate article. are not ready to tailor the packaging world has long acknowledged the The third problem is the cost of to the requirements and customs obvious. Almost every day all the world Ukrainian goods. Due to some of the country of the destination, TV channels demonstrate how shots unknown reason our businessmen not to mention the taste/consumer from Grad multiple-launch rocket refuse to accept world market characteristics of the goods. The map of systems erase whole towns from conditions, and consider their products the world commodity priorities is not the world map. How can we explain, to be not only competitive, but also the formed even at the state level. for example, to an Iraqi who knows cheapest ones. Commercial directors We are only at the beginning of a fi rsthand what war is, that we have and sales managers in the pursuit of long and challenging journey with a war only on a small plot of our vast their own bonuses shamelessly lye many hardships and challenges. In country, and the whole Ukraine lives to the owners about the situation on this way, Ukrainian exporters will be happily, businesses are not in danger, the international market. Although divided into two categories: the fi rst and they can easily transfer the money the “hand” of the offi cials also greatly one will consider that export is not a for the goods that have not been yet contributed to this. Only lowering the panacea, and they will be developing delivered. According to international law loading of containers by 4 tons leads in at the expense of the domestic market, war is a force majeure, which actually fact to a direct increase in the cost of and the second category will deal allows the supplier not to fulfi l its Ukrainian goods in foreign markets, on with challenges, learn, adapt to new obligations. average, by UAH 1 billion per year. You challenges, represent the country in the Dishonesty is the second problem. may add here the unreimbursed funds international arena. It is a great surprise and regret but or elective compensation of the VAT, Ask yourself, to which category you decency of Ukrainian businessmen the opacity of tax policy and one will would like to be subsumed to.

Q_1259_66.indd 66 25.03.2017 02:06:12 .Б ИЗНЕС ONLINE MAGAZINE BUSSINESS https://business-journal.com.ua

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Cover_English.indd 4-6 25.03.17 02:46 #12-13 March 27, 2017 Published since 1992 EXPORT STRATEGY THE POINT OF VIEW OF THE BUSINESS Nataliya Mykolska, Deputy Minister of Economic Development and Trade of Ukraine — on the National Export Strategy of the country

WORLD’S BEST GRAIN OKKO Agrotrade is planning to export 70% of grain purchased from Ukrainian farmers business-journal.com.ua

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