Page 52 - UKRRptApr19

Dutch animal feed giant buys controlling stake in Lviv company and eyes Ukraine expansion . Global animal feed leader Royal de Heus of the Netherlands has acquired a majority stake in Lviv Oblast company D-Mix as part of a strategic expansion into the Ukrainian market. The new joint venture will operate under the trade name Koudijs Ukraine. D-Mix, which specializes in feed for pigs and poultry, is located in Zolochiv in western Ukraine. Royal de Heus will be hoping to benefit from increased demand as the Ukrainian authorities implement recently unveiled plans to increase the country’s livestock population over the coming years in order to help meet growing demand driven by the expansion of the country’s agricultural exports.
9.2.9 Utilities corporate news
Ukraine’s leading coal and power holding DTEK Energy generated 3.85 TWh of electricity in January , Concorde Capital calculated based on sector-wide data reported by the Energy Ministry. This is 2.4% less y/y. However, on a like-to-like basis – excluding the generation data of Kyiv-based power plants (which DTEK has not controlled since August 2018) – the holding has boosted its power generation 10.5% y/y. DTEK’s thermal power plants (TPPs) produced 3.80 TWh of electricity in January, which is 10.8% more y/y, with all eight plants demonstrating y/y growth in generation. The key contributors to the growth were Kurakhivska TPP (up 18.7% y/y) located in eastern Ukraine and Ladyzhynska TPP (up 11.0% y/y) located in central Ukraine. DTEK’s TPPs increased consumption of hard steam coal by 16.0% y/y to 1.73 mmt in January, while their consumption of anthracite coal dropped 19.5% y/y to 0.21 mmt, which is a result of the plants' gradual conversion from burning scarce anthracite. Ukraine’s total production of electricity rose 4.0% y/y in January to 15.21 TWh, while all TPPs combined boosted generation 4.1% y/y to 4.95 TWh. “January's cold weather created high demand for electricity in Ukraine, boosted production growth, and led to power plants outperforming the Energy Ministry’s production plans. In particular, DTEK Energy outperformed the state's January plan for it by 8.6%,” Alexander Paraschiy of Concorde Capital said in a note.
9.1.9 Renewables corporate news
9.2.10 Metallurgy & mining corporate news
German commercial banks will loan €90mn for construction of the second phase of the Primorsk Wind Power Plant , Philipp Leckebusch, DTEK Renewables CEO, said at the inauguration. “This project is financed by two loans of German commercial banks for a total of EUR180mn,” he said. “This will be one of the largest commercial loans in Ukraine in recent years.” Expected to cost €300mn in total, the plant is to have the capacity to generate 200 MW.
● Metinvest
Ukraine’s largest steelmaker Metinvest has launched a continuous casting machine No. 4 (2.5 mmt p.a. of slabs, a $150mn investment) at Ilyich Steel, the company said on March 1. Metinvest said that it plans to reduce its pig iron exports in order to boost steel production, for, which its lack of casting
52 UKRAINE Country Report April 2019 www.intellinews.com