Updates not immediately, but eventually: KPK finds that investments in military modernization cannot end

Dozens of stones and billions of dollars in investments from donors – according to the EBRD, in the first five years of the war, Ukraine will need more than 50 billion dollars in additional contributions to the river.

In this case, we will focus our attention on industries and businesses that serve as drivers of the domestic economy, and the cardboard and paper industry.

On the eve of the new year, the Association of Ukrainian enterprises in the pulp and paper sector “UkrPapir” reviewed the statistics of leaf fall, and, at first glance, these indicators give reason for the streamlined optimism.

So, let’s stand up end of leaf fall In Ukraine, an increase in the output of paper and cardboard was recorded by 11.8% compared to the same period in 2022, containerboard by more than 20%, and corrugated boxes by 18.9%. And this – despite the fact that, due to the large-scale invasion and a sharp decrease in internal proliferation, a significant part of the growing number of goods was imported.

Of course, there is still no pre-war rush, but the trend is encouraging. The biggest contribution to this show was made by one of the largest specialized companies in Europe – PJSC “Kyiv Cardboard and Paper Mill”that within 11 months of production production increased the volume of commercial products by 3.3%, equivalent to 2022 (including corrugated boxes – by 20.5%).

Why not allocate investments in the renovation and modernization of enterprises that produce sanitary, hygienic and packaging products from paper and cardboard in “after success”? І as closing partners (Zokrema, Austrian Pulp Mill Holding GmbH) was obtained to produce ham pulp-paper haluza in military mill aphids? Rozpov Yuri Golovchenkohead of the board of PrJSC “KKPK”.

How did the work of the cardboard-paper galuz as a whole and the CPCC change after the start of the mass raid? What are the main trends?

The war has already affected the economic situation in general and our industry, for that matter. Wu Pershu Chergu, the market landscape itself radically changed – production workers suffered from shelling, businesses disappeared under employment. Among them are the Rubizhansky Cardboard and Container Mill, the Rohansky Cardboard Factory, Dunapak Tavria, Zmiivska PF and others. In the bag, some of the great gravitationalists are pinned to the robot, some of the confusion is shifting the tension.

Of course, everyone hit the galuz as a whole, the fragments, for example, of the Rubizhansky CPC during the pre-war period, destroying almost one third of all corrugated packaging in Ukraine. According to the UkrPaper association, through the actions of the aggressor, in the first quarter of last year, the production of cardboard and paper in Ukraine decreased by 45%. How did the situation with the power of the virus end in the Kingdom of the world? Why suttaThis contribution to the repair of Galuzev should be left at our plant itself. Well, let me tell you frankly, it’s not easy.

Adj another official, which fundamentally changes the work of the cardboard and paper businesses, is logistics. And since the invasion began, the cob has changed and become more expensive. In Ukraine, there is a daily production of cellulose, and the wet production of waste paper is not enough to meet the demand for production. Apparently, the consumption of natural resources is covered by the cost of imports.

The traditional transport routes from Scandinavia, Turkey, Brazil, which used to pass through the Black Sea ports, no longer work. It is possible to acquire the port infrastructure of other European countries and start bringing raw materials to Ukraine by land transport. All this means additional costs for logistics. Add to this the blocking of cordons by Polish and Slovak carriers, causing delays in deliveries, and the overall picture is less colorful.

Why is the renewal of these spheres more important for the Ukrainian economy? How does the cardboard industry spill over into other fields and logistics hubs?

In this context, there are two main aspects to be seen. First – the influx of cardboard and paper industries in neighboring countries. In my opinion, the very development of the segment of corrugated cardboard and packaging products affects the consolidation of work in many areas of the Ukrainian economy. Let me explain why.

Kiev Cardboard and Paper Mill vibrated wide range packaging solutions for different product groups – this includes the dairy industry, confectionery products, whiskey, alcoholic and non-alcoholic beverages, fruits and vegetables, pharmaceuticals, household chemicals and more. Without containers, it is impossible to deliver and store goods, so our uninterrupted work relies on retailers, large online trade networks, logistics companies, and postal operators. Of course, to support the growing flow of humanitarian aid to different regions of Ukraine, proper packaging is still needed.

Of course, cardboard-paper products for these segments can be imported, but the “shoulder” of delivery will increase significantly, and the comparison of commercial products will increase, and thus the additional emphasis will fall on the shoulders of the last partners iv. We have thought about the logistics problems now.

Others An important point is that our business saves on budget and location. The Kiev Communist Party group currently has 2,320 workers, and in the organization of subsidiaries, the total number of personnel is 3.5 thousand. Among them are twenty internal displacements of individuals who, through the War of Repression, left their villages and moved to Obukhivshchyna. 250 military personnel are needed to defend Ukraine at once.

A group of companies in this difficult time for the region is trying to fully support the community by providing jobs and wages to competitors. In addition, in the first nine months of this year alone, the KKPK allocated over one billion hryvnias to the budgets of all equivalents and directly allocated up to 100 million hryvnias to humanitarian projects.

Therefore, I believe that a small power will immediately focus on the promotion of both spaces and business units, how to replace the budget, create workplaces and provide supplies for the development of others, private business and economic sector iki.

Unfortunately, this is not the case. І by external pressure ( We are talking about the unresolved renewal of the criminal case on the right from the old days and the attempt to block the assets of a group of companies – ed.) now Our plant continues to operate and modernize not only immediately, but drastically.

Do you agree that it is necessary to start investing in the renovation and modernization of cardboard-paper linings, not only as much (and not as much) after the success, but now at the same time? Although the world of developments in this area does not stop, new technologies and trends appear, and it is necessary to lose competitiveness?

So, the Asian competitors will not sleep. Our thriving market is a great and rewarding goal for them. And when local businesses are stuck with low sales, many foreign traders take advantage of the situation for their own interests. They are dumping, expanding their diversification, and pursuing an aggressive commercial policy. In a word, they are looking for options to release ham brands from the Ukrainian market – both regarding the line of packaging materials and regarding sanitary and hygienic products.

Therefore, it is necessary to invest immediately in the renewal and development of power generation, regardless of the unfriendly thoughts of external officials. The war against the aggressor does not lead to the motivation to fight for clients and markets.

How long will it take before the production of cardboard and paper products in the country returns to pre-war levels? Are European partners ready to invest capital in Vidbudov and modernize cardboard plants in Ukraine? And for what kind of thinking?

No need for time frames – at the same time rhetorical nutrition. No one knows the origin of all businesses. In addition, many external officials are interested in the possibility of updating operational processes. Unfortunately, the threats of shelling, blackout, blocking of nobles, information attacks on Ukrainian businesses are still relevant. Therefore, calling these deadlines in the context of all disturbances is inappropriate.

Speaking specifically about our plant, we have planned a modernization of production for 2024. The Austrian investor Pulp Mill Holding has already invested more than 360 million euros in the developments of KKPK. And, during the war, what worries us, and all the negative external comments that we have predicted, is planning to continue the investment program – in the spring confirmed plans for the modernization of equipment for 12 million euros.

However, the specific terms depend directly on the possibilities of transportation. I will put specific stock in place with the purchase of a new Yankee cylinder (the main unit entering the warehouse of the paper machine drying group – ed.). Since previously similar installations came to us by sea and Dnieper River, then transporting such a large cargo from Europe is not a small task from the point of view of logistics, as our suppliers and partners.

Of course, it is reasonable to count on vocal institutional support for these processes from the side of the Ukrainian government. Or, remember, so that the state does not create additional obstacles for national producers and investors. Oh, nothing like that. So we rely on the power of strength.