STAT-USA on the Internet
US Department of Commerce
(202) 482-1986Competitive Situation
Competetive situation on construction market.
Domestic Production
Ukraine is rich in china clay (kaolin) (Dnipropetrovsk and
Vinnytsya oblasts), gypsum decorative stones and granite
(Vinnytsya, Cherkaska and Kyiv oblasts), glassy sands (Kharkiv,
Donetsk, Chernihiv and L'viv oblasts), graphite (Kirovohrad
oblast), and various limestone and fire-clays.
There are over 7,500 large and medium-size enterprises and
organizations in the Ukrainian construction sector. Of these,
approximately 6,400 enterprises are construction organizations,
60 are project-research institutions, and the remaining 1,100
enterprises deal with the production of building materials. Only
20% of these enterprises and organizations are state-owned.
There are also 9,696 small businesses and joint ventures in the
construction sector.
The construction industry in Ukraine is very monopolized:
"Ukrbudmaterialy" amalgamates 350 plants and factories in the
building materials industry, "UkrCement" operates 28 joint stock
companies in the cement industry, "Kyivmiskbud" holding company
built approximately 90% of residential and social-cultural
buildings in Kyiv. "Ukrmontazhspetsbud," "Ukragroprombud,"
"Ukrtransbud," and "Ukrmetrotunelbud" operate approximately 10-15
production enterprises each. There is a new trend of joining
enterprises into industrial associations to provide members with
advocacy support via legal advice, to coordinate training
programs, licensing procedures, distribution of information, and
to protect the rights of its members. In March 1998, the
Ukrainian Association of Assembly and Construction Enterprises
was established. The Association includes 300 members and issues
the "Assembly Plus Technology" magazine.
The domestic sector of building materials includes the production
of cement, soft-roofing and roofing materials, stone, granite,
crushed stone, wall materials, building bricks, prefabricated
reinforce concrete, building metal constructions, construction
joinery goods, gypsum, ceramic tiles, and glass. The production
of cement, asbestos cement, soft roofing and roofing, granite,
crushed stone, and glass are the most developed domestic sub-
sectors. Production of these materials depends on locally-
supplied raw materials, needs low investments, and has a 3-5 year
pay back period. Ukrainian cement and granite are well-known for
their quality and are exported by Ukraine to many European
countries. Ukrainian crushed stone is used in the road
construction industry and is exported to Russia.
Domestic production of interior/design materials, paints,
flooring and wall tiles, ventilation systems, pipes and fittings,
and bath-room fixtures is very underdeveloped in Ukraine.
Unfortunately, most of these enterprises lack new technologies
and modern equipment. As a consequence, these products are not
competitive in the Ukrainian market.
The production of security and fire safety systems, energy-
efficient heating, and insulation systems did not exist in
Ukraine. During the last few years, a several joint manufactures
of insulated windows, doors, roofing materials, cement-based
building mixtures and wall panels emerged in Ukraine. A few
Ukrainian companies launched the manufacture of building
materials under the western technologies.
A poor representation of locally-produced products offers a real
opportunity for foreign exporters and investors in the Ukrainian
market. Ukrainian building materials manufacturers are running
at capacity levels of 15-25%. Until recently, the domestic
building materials industry was notorious for its outmoded
technologies and energy efficiency. Official estimates show that
more than 40% of building materials producers are in severe need
for modernization.
1.1 Domestic Production of Cement
Cement production is a major hard currency earner in Ukraine's
construction industry and is is one of the most developed sub-
sectors of the building material industry. There are 13 large
cement plants in Ukraine with an annual capacity of 23 million
tons. Well-known factories in the cement industry include:
Amrosivsky, Balaklevsky, Dniprodzerzhynsky, Ivano-Frankivsk,
Kamyanets-Podilsky, Kramatorsk, Kryvorizhsky, Mykolaiv,
Yenakyivo, and Zdolbynovsky. Factories in Dnipropetrovsk,
Donetsk, Khmelnytsky, Ivano-Frankivsk, and L'viv produce the
largest volumes of cement. In May 1998, 593,000 tons of cement
were produced, up from 513,000 tons in May 1997. It is estimated
that the Ukrainian cement industry has enough raw materials
(chalk, lime, clay, silica) for the next 100 years of cement
production.
1.2 Domestic Production of Roofing Materials
Production of soft-roofing is the second promising sub-sector of
the Ukrainian building materials industry. According to the
State Statistics Committee of Ukraine, this sub-sector produced
6,995,000 square meters of soft-roofing material in May 1998, up
from 5,892,000 square meters in May 1997. Volyn, Odesa, and Kyiv
produce the largest volumes of soft-roofing materials in Ukraine.
To meet market demand, several Ukrainian production enterprises
have established joint manufactures of soft-roofing materials
with European partners. "Hipron" in Bila Tserkva and "Finprofil"
in the Kharkiv oblast were the first Ukrainian enterprises to
launch production of modern roofing materials. In March 1998,
the Finnish company Rautaruukki established a manufacturing plant
in Kyiv.
The production level of roofing materials, other than soft-
roofing (e.g., corrugated asbestos slates) still remains high in
Ukraine. It is important to note that corrugated asbestos slate
is considered ecologically harmful to human beings and most
western countries have ceased production of this product.
Ukrainian production of corrugated asbestos slates should slowly
decrease and the demand for new technologies in roofing materials
will increase.
1.3 Domestic Production of Granite
Ukraine is notorious for the quality of its granite. According
to "Infobusiness" Association of Entrepreneurs, approximately
150,000 cubic meters of granite is mined annually at 55 quarries
in Ukraine. "Ukrbudmaterialy" is Ukraine's major producer of
granite. Of the 22 industries currently active in this industry,
the most well-known include: Beletsky Factory, Khust Stone
Processing Enterprise, Minselkhozprod, Hoskomzhylkomunkhoz,
Hoskomgeology private and joint stock companies, factories in
Kapustynsk, Tokovsk, Yemelyanovsk, Kornensk, Yantsevsk,
Korostyshevsk, and Holovynsky. A few of these enterprises have
installed western-style modern equipment. The granite from
these factories is exported to Italy, Germany, Austria, Hungary,
Greece, France, Great Britain, Turkey, Poland, Japan, Bulgaria,
and Israel.
1.4 Domestic Production of Wall Materials
In terms of production volume and number of employees, the wall
materials industry was previously one of the largest in the
country. Until recently, the production of building bricks was
the most important sub-sector of the building materials industry.
In 1997, Ukrainian production of construction materials used for
walls decreased by approximately 10%. During 1997-1998, the
largest volumes of wall products were produced in Kharkiv,
Dnipropetrovsk, Kyiv oblast, L'viv, and Ivano-Frankivsk.
Production of bricks declined by approximately 19% in 1997.
However, in Crimea, Kyiv, Chernivtsi, Sevastopol, and Odesa
production of bricks is not declining.
1.5 Domestic Production of Other Building Materials
Other developed sub-sectors of the building materials industry
include: production of prefabricated reinforced concrete, metal
constructions, construction joinery goods, gypsum, ceramic tiles,
and glass. Approximately 459 Ukrainian enterprises are involved
in the manufacture of prefabricated reinforced concrete with an
average annual manufacturing capacity of 25 million cubic meters.
This includes the manufacture of building panels with an average
annual capacity estimated at nearly 10 million square meters.
During 1997, production of prefabricated reinforced concrete in
Ukraine declined by approximately 13%.
Nearly 22 enterprises are involved in the manufacture of metal
constructions with an average production capacity 800,000 tons.
During 1997-1998, production of ceramic tiles declined by 6%,
production of linoleum declined by 18%, production of glass for
construction decreased by 25% and production of window glass
decreased by 26%.
2. Third-Country Imports
Unfortunately, neither the State Statistics Committee nor the
State Committee on Architecture and Construction have detailed
information on third-country imports to Ukraine. To estimate the
share of imported building materials, CS-Kyiv used information
provided at numerous construction shows/fairs held in Kyiv.
Representation at local construction and building material
exhibitions is dominated by European companies. Approximately
250 companies and joint ventures frequently participate in
construction shows in Kyiv. Most of these companies represent
foreign-made building products. More than 70% of the
participants display imported products, while less than 30%
represent products of domestic production.
Countries with the largest number of representation include:
Germany, Italy, France, Scandinavia, and Spain. Many of
exhibitors at local shows have already established a presence in
Ukraine and operate through authorized dealers and distributors.
Some companies have set up joint-ventures with Ukrainian
companies and have launched local manufacture of building
materials.
There is a broad range of building products imported into
Ukraine: insulated windows and doors, false ceilings, floor-
covering, wall-covering, other interior-decorating materials,
paints, plasters, cement mixtures, sealants, water-proofing
materials, insulation materials, heating systems, piping and
bathroom fixtures, exterior siding and roofing materials,
ventilation systems, sprinkler systems, automatic garage door
openers, and safety devices.
2.1 Germany
During the past several years, German companies have taken
advantage of their proximity to Ukraine and have gained a strong
foothold in the market. Products are represented through either
Ukrainian distributors or German representative offices. German
technologies are being utilized for the local manufacture of
panels, made of metal-plastic and aluminum materials. German
suppliers of building materials represent a broad range of
products in Ukraine: plastic and metal panels, paints, metal
constructions, insulated doors and windows, various fittings,
roofing materials, heating systems, wall covering materials,
plastic pipes, and cement-based mixtures.
Plastic and metal panels are represented by:
- "Knauf" (wall plastic panels and technologies);
- "Moller" (acrylic panels and coverings);
- "Khipping," "Plus Plan," and "Plusthc"
(metal-plastic panels and constructions);
- "Wahl GmbH" represents 15 German companies: "Alfa-Lacke,"
"Wolfcraft," "OWA," "Weidner," "Atex," "Hufgard," and other
suppliers of plastic panels, paints, wall plasters, fittings
and electric devices spare parts), "Dollken" (plastic panels),
"Atex" (panels), "Volta" (plastic panels), "Decosa"
(polystyrene
materials), and "Alucobond" (aluminum panels).
German suppliers of metal constructions and providers of
technologies include:
- "Raynaers" (metal constructions);
- "Plusthc" (technology of metal-plastic constructions;
- "Khipping" (technologies of metal-plastic constructions);
- "Heroal" (technologies of aluminum constructions);
- "Neher" (technologies of aluminum constructions);
- "Plus Plan" (metal-plastic panels and constructions).
Paints are supplied by:
- "Meffert AG" ("Dufa" brand);
- "Paul Mittermayer Gmbh" ("Mira" trademark);
- "Jobi" ("Jobi" trademark);
- "Dezowag" ("Xyladecor," "Xylamon," and "Consolan" brands);
- "Lacufa," and "Lober GmbH".
Insulated windows and doors are represented by: "Veka," "Schuco
International," "Gealan," and "Raumplus" (rolling doors).
Windows, doors, and furniture fittings are imported from:
"Sanha," "Siegenia," "Hafele" concern, "DOM," "HP Plus," "FSB,"
"GEZE," "WinkHaus," "Wahl GmbH," and "Teckentrup" (automatic
garage doors).
Roofing materials are supplied by "Creaton" and "A.B. Anddernach
Roofing Materials."
Heating systems are represented by "Stiebel Eltron" and "Olympic
Watmetechnik GmbH"; flooring materials by "Kronospan," "Parador,"
"Coelan-Hemie," "Tarkett" (linoleum); pipes and valves are
supplied by "KME" (copper pipes), "Heimeier" (valves and
fittings); pumps are supplied from "Wilo," "Rowi," "Meibers," and
"Grundfos"; "AMF Thermatex" represents false ceilings; ceramic
tiles are imported from "Meissen"; wall paper products are
represented by "AS CREATON" and the "BASF" company ("Glasurit"
brand covering).
Other German products are represented by: "Rivona-Termodom"
(construction technologies), "Westex" (tools), "Elso" (electra-
devices), "Wago" (accessories for electric devices), "M.I.K.
Schorr GmbH" (lighting systems), "Cedima GmbH" (diamond tools and
machinery for building materials production), "Bayer AG"
(mixtures for cement-based products manufacture), "Sanho"
(bathroom fixtures), "Deitermann" (glues, construction mixtures).
In addition to exporting to Ukraine, some German companies have
launched joint manufactures of building materials.
2.2 Italy
Italy is the second major supplier of building materials and
technologies to Ukraine. Exported products from Italy include:
insulated windows and doors, lighting systems, ceramic tiles,
bathroom fixtures, roofing materials, and paints.
Doors and windows are supplied from "Albertini" (windows frames),
"TRE-P" (doors), ""Garofoli" (doors), "Dierre" (specific doors,
shutters), "Olibari," "Valli&Valli," "Fusital" (window and door
fittings), "Came" (automatic rolling interior doors).
Lighting systems are represented by "Garden Light," "Vimar,"
"Metal-Lux," "Disano," "La Lampada," "Reccgni Angelo," "Massive,"
"Basilux," "Egoluce," "Lival," and "Murano."
Ukrainian distributors of "Marazzi" company represent
approximately 4,500 types of ceramic tiles. Another Italian
ceramic tiles exporter is "Granito Gres". Paints, plasters, and
various types of chemical construction materials are represented
by "Algolite," "Oikos," and "Litokol". Roofing materials are
supplied by "Valli Zabban," bathroom fixtures by "Rolex," and
metal false ceilings by "Catena Building Industry" company.
2.3 Finland
Finland is also a leading supplier of building materials in
Ukraine. Finnish exporters and producers are notorious for their
good quality of roofing materials, paints, insulation materials,
flooring, and covering products. "Rautaruukki" concern is an
aggressive supplier of roofing products in the Ukrainian market.
Its subsidiaries work in eight European countries: Slovakia,
Poland, the Czech Republic, Estonia, and Russia among them.
"Weckman" company, an exporter of roofing materials, operates
through three subsidiary enterprises: "TPK-Center" (Kyiv), "TPK-
Dnipro" (Dniprodzerxzhinsk), and "TPK-Pivden" (Odesa).
Other Finnish companies present in the Ukrainian market include:
Matek" ("Makroflex" foams and hermetic), "Isover" (insulation
materials); "Sadolin" and "Polifarb" ("Pinotex Ultra," "Premo,"
"Master Lux," "Bindo" brands); "Teknos Winter" (paints);
"Kilsgaard" (door panels), "Optiroc" ("Vetonit" trademark,
construction mixtures), "Kirena" (in-wall furniture), "Karela"
(flooring materials), "Vetonit" (chemical construction
materials), "Rettig" (radiators), "Weckman" (metal and plastic
constructions), and "Lemminkainnen" (wall covering materials).
2.5 France
France is a major supplier of wall covering, paints and flooring
materials to the Ukrainian market: "Alpa" (paints, plasters),
"Profitex" (glass-based wall coverings), "Barrisol"
(sophisticated false ceilings), "Acron" (carpet flooring), and
"Berry Wood" (flooring materials). Other French suppliers of
building materials to the Ukrainian market are: "De Dietrich"
(heating systems), "Jean Desjoyaux" (swimming pools), "Richard le
Froff" (fireplaces), "Sotralenz" (sewage systems), and "FLIN"
(wood staircases). The French company "Lafarge" Group purchased
41% of the "Mykolaivcement" plant, and is likely to take a
partial control over the Ukrainian cement market. However, the
counteractions of the Ukrainian shareholders at the plant may
present serious problems for the company's investment plans.
2.6 Other Participants in the Market
Austria, Belgium, the Czech Republic, Denmark, Holland, Ireland,
Israel, Hungary, Great Britain, Poland, Spain, Sweden,
Switzerland, Portugal, Slovakia, and Turkey have also gained
strong positions in the Ukrainian market for building materials.
These European countries are represented by the following
companies and product lines:
Austria:
"Kronospan" (interior fittings and flywood), "Tel MineralWolle"
(warming insulation), "HERZ Armaturen" (heating systems),
"Kosche" (plastic panels), "Kaindl" (plastic interior
construction materials), and "MACO" (fittings)
Belgium:
"Plastivan" (Plastic panels), "Rolvoplast" (plastic panels),
"NMC" (decorative panels), "Muller" (plastic panels), "Deschacht"
(plastic panels), "Polygum," "Imperial" (roofing materials),
"Plastivan" (plastic panels), "Venta" (flooring materials), and
"Deceunick" (metal-plastic windows and doors)
Canada:
"Premdor" (doors), "Gemite" (cement mixtures), I.B. Canada Inc."
(false ceilings, doors, wall panels, machinery), and "Royal
Building" (sidings).
Denmark:
"Lifton" (hydro systems), "Velux" (windows), "Junckers"
(parquet), "Marlon" (plastics materials), "Plastmo" (plastic
pipes), and "Rockwool" (insulation materials)
England:
"Rustin Allen" (self-adhesive molding materials, plastic panels)
Holland:
"Nemef" (door fittings), "Cocon" (construction foams, adhesive
liners), "Bruynzeel" (plastic panels), "Bruynzeel" (plastic
panels), "SPS" (paints), and "Alabastine" (construction tools)
Hungary:
"Dunaferr Lux" (heating radiators)
Ireland:
"Masonite" (door skin)
Israel:
"Shiryonit Hosem Security Products Manufacturing Ltd.," "Polygal"
(polycarbonate and polypropylene construction plates), "Tambour"
(paints), and "Markem Building Chemicals Inc." (paints)
Poland:
"Atlantis S.A." (Styrofoam and polyurathane foam core panels),
"Porta" (doors), "Fakro" (windows), "Protex" (door panels),
"Centrostal Bydgoszcz" (roofing materials, windows, metal panels,
siding, wall materials), and "Kronospan" (wall panels)
Portugal:
"Amorim Group" (cork oak covering, "Ipocork" and "Wicanders"
trademarks)
Slovakia and the Czech Republic:
"Modratherm" (heating systems), "Tatramat" (heating systems),
"ELEKO" (heating systems), "Korado" (heating systems),
"Planiterm" (insulated windows), and "Kerko" (ceramic tiles)
Spain:
"Sanchis" (ceramic tiles), "Guibosa" (ceramic tiles), "Colorker"
(ceramic tiles), "Gres de Nules" (ceramic tiles), "Taugres"
("Karmen") (ceramic tiles), "Italgres" (ceramic tiles), "Tesa"
(Fittings), "Amig" (fittings), "Norma" (door panels), and "Proma"
(doors). The Ukrainian "Inus" company distributes ceramic tiles,
bath and kitchen fixtures, doors, lighting systems of many
Spanish companies. Its "Karmen" store in the center of Kyiv has
gained popularity among Ukrainian customers because of the high
quality of products and service.
Sweden:
"Lindab" (roofing), "Glasa" (metal constructions), and "Tarkett"
(wood flooring)
Switzerland:
"Oertly" (heating systems)and "Guttanit" (roofing materials)
Turkey:
"Fenis Foreign Trade Inc.," "PMS Aluminum Sanayi," "Kale Kilit
Dis Tigaret A.S.," "Ozcelik Makina San. Ve Tic. Ltd. Sti," (metal
constructions), "Saray" (therm-aluminum windows, doors and
display stands), and "Kale" (ceramic tiles)
US Market Share
During the past several years, American companies have
strengthened their position in the Ukrainian building materials
market. However, it is not easy to compete with German, Italian,
French, and Scandinavian companies which have gained a strong
foothold in the Ukrainian market for building materials.
American companies prefer to work through established Ukrainian
distributors. There are only a few Ukrainian distributors which
represent products produced in Europe under U.S. technology or by
U.S.-European joint manufacture. Ukrainian distributors will
advertise such products as being of European origin. It is not
so easy to determine the real share of U.S. origin products in
the Ukrainian market. In addition, CS-Kyiv assumes that not all
U.S. companies operating in the Ukrainian market are known to the
Embassy, due to their weak participation in construction shows to
poor advertising.
The assortment of U.S-origin products available in Ukraine is not
as wide as that of those from Germany. Products offered by U.S.
companies include: false ceilings, doors and windows, roofing
materials, panels, sun-protection films, roofing materials,
lighting systems, insulation materials, and electric tools.
Currently, the following U.S. building materials companies are
represented in the Ukrainian market: Armstrong (false ceilings),
AIDCO (insulated windows), Black&Decker (electric tools, De Walt,
Elu, BBW, Piranha, Black&Decker trademarks), Celotex (false
ceilings), Certain Teed Corp. (sidings), Dryvit Systems
(insulation materials), Englert (aluminum panels with acrylic
covering), Georgia Pacific (panels), General Electric (lighting
systems), Liquid Nails (nails), Ondura (roofing materials),
Southwall Technologies, Inc. (insulated windows), TELEDYNE LAARS
(swimming pools), Solarmax (sun-protection window films), Solar
Gard International (sun-protection and energy-saving films),
Stanley (electric devices), SICO concern (amalgamates American
and Canadian companies Hancock, Rust-Oleum, Mulko).
The U.S. trading company Tortola operates in the Ukrainian market
in conjunction with the Ukrainian company, D.I.T. Company.
Tortola has opened four stores in Kyiv and offers the following
products: ceramic tiles, wall paper, linoleum, fixtures, windows,
and doors, housewares and electric home appliances. Some of
these products offered are of U.S. origin, but most are of
European origin.
Several joint U.S.-Ukrainian manufactures have been launched
during the past few years. They mostly deal with the production
of insulated windows and doors. Ukr-West Window Ltd. is a joint
venture between American Industrial Development Corporation
(AIDCO) and Production Association Orizon of Smela, Cherkassy
Region, Ukraine. The joint venture produces energy efficient
polyvinyl chloride (PVC) windows and doors using U.S. technology,
equipment, and materials. Ukr-West Window imports PVC extrusions
and window and door components from the United States and Europe.
All cutting, welding, and assembly of the PVC frames is done at
the Smela plant.
There are two additional joint American-Ukrainian manufacturers
of windows and doors in Ukraine: Best International
(Zaporizhzhya) produces plastic-aluminum insulated windows and
doors using materials imported from the U.S., Canada, and Europe,
and Interwindows (Odesa) produces windows, doors, and related
aluminum products.
In 1997, the American company "OTIS" established the joint
venture "Ukr-Otis" for the manufacture of modern elevators in
Kyiv. This joint venture can easily meet the demand of Ukrainian
collective end-users and construction project developers.
In 1998, the Western NIS Enterprise Fund invested in the
renovation of the Slobozhanska Budivelna Keramika
(Slobozhanshchyna Construction Ceramics) plant in the Sumy
oblast. The plant was shut down in 1996 and was badly in need of
investors. The plant was modernized with a modern mass mixing
machine, forming complex, and two mills for clay mass preparation
work. The plant's new production capacity equals 30 million
items annually. Bricks produced at the plant will be packaged in
modern packaging materials to prevent them from absorbing water.
This joint U.S.-Ukrainian manufacturing venture will work to
satisfy the increasing demand of the Ukrainian market and
neighboring countries.
4. Joint Manufacture of Building Materials in Ukraine
During the past few years, several German, French, and Austrian
enterprises have set up joint manufacturing ventures in Ukraine.
In March 1998, the Ukrainian-German joint venture "Stroimak-
Knauf" was established for the joint manufacture of wall panels
to meet local demand and to export to Russia. The joint venture
has a capacity of 8 million square meters of gypsum board a year
which is likely to satisfy meet the local demand for gypsum wall
boards.
"Evroviknobud," a Ukrainian company has launched the manufacture
of metal-plastic windows, doors (external, internal and balcony),
protection rollers, insulated windows, and display stands. The
company uses imported components and the technology of German
company "Schuco International". In 1994, the Ukrainian company,
"Kwin-Swing" established the joint manufacture of metal-plastic
windows and constructions with a German partner "Khipping"
company. The company also utilizes the technologies of "Heroal"
and "Neher" German companies. The Ukrainian company "Klenovyi
List" set up the manufacture of metal-plastic windows under the
technology of the German company "Gealan" with use of fittings
from the German company "Roto". Another German-Ukrainian
manufacture of insulated windows is "Fenster," which is based in
Kyiv. The joint stock company "Ardex" represents the "Poliram"
trademark - dry cement-based products manufactured in Ukraine
from additives manufactured by the German companies "Wacker-
Chemie GmbH" and "Bayer AG".
Italian and Finnish companies have established joint
manufacturing of soft-roofing materials. The French company
Lafarge re-equipped the Mykolaiv cement enterprise. In 1997, the
U.S. company, OTIS launched the production of modern elevators in
Ukraine and can easily meet the demand of Ukrainian collective
end-users. AIDCO, an American company established the joint
manufacture of insulated windows.
The Ukrainian company "Budcomplect" Ltd. has been manufacturing
pavement tiles under the technology of the British company
"Creative Impressions" since 1995.
Several Finnish companies have established joint manufacturing of
soft-roofing materials. In March 1998, the "Rautaruukki" Finnish
concern launched a new manufacturing subsidiary "Ranilla-Kyiv"
company in Kyiv. The steel plates for the Kyiv enterprise are
supplied by "Rautaruukkii" concern from Finland. In addition to
roofing materials, the Kyiv subsidiary produces steel
constructions. "Ranilla-Kyiv" has a developed distributorship
network throughout Ukraine. "Finprofil" (Kharkivska oblast)is
the second joint Finnish-Ukrainian enterprise to produce roofing
materials. The establishment of these joint Finnish-Ukrainian
enterprises has led to a decrease in the price of roofing
materials available in Ukraine from US$12.50 to US$14.00 per
square meter in 1996 to US$9.50 to US$10.00 per square meter in
1998. In 1997, the "Finprofil" company paid US$22 million for
the import of steel plates from Finland. According to Ukrainian
directors of the above-mentioned joint ventures, the use of the
steel plates produced in Ukraine could help reduce the price of
locally- produced soft-roofing materials.
"Lafarge" Group, the world's second largest producer of cement
and concrete, and the largest producer of monolith blocks,
roofing materials and cement mixtures, purchased a 41% share of
the "Mykolaivcement" company (Mykolaiv oblast). It plans to
invest approximately US$150 million into production at
"Mykolaivcement". The full production capacity of the
"Mykolaivcement" plant is 62% of the overall Ukrainian cement
production volume. The "Lafarge" Group has the potential to
control the Ukrainian cement market.
"Gemite-Ukraine," a Ukrainian-Canadian joint venture manufactures
cement-based materials with mixtures received from the Canadian
company "Gemite".
The Ukrainian company "Ivrus-Moto" is a major manufacturer of
wardrobes with rolling doors. It has been representing
"Shiryonit Hosem Security Products Manufacturing Ltd." (Israel)
since 1991. "Ivrus-Moto" also provides after-installation
service.
There are a number of joint manufactures that use components of
different foreign producers. The Ukrainian company "Yuna-96"
manufactures doors and uses door panels imported from "Masonite"
(Ireland), "Kilsgaard" (Finland), "Norma" (Spain), and "Protex"
(Poland).