Main trends and main players of Ukraine’s construction industry

18−20 May 2021

IEC, 15, Brovarsky Prospect
Kyiv, Ukraine

News

28 April 2012

Main trends and main players of Ukraine’s construction industry

Direct and indirect Government spending on construction in Ukraine totalled 27.4bn UAH (£2.1bn, €2.6bn, .4bn) in 2011. Of this, 15bn UAH went on construction, renovation, and road repair; 200 million UAH was spent on affordable housing; and 5bn UAH was allocated to providing government guarantees. These guarantees were offered for a range of projects, including Ukravtodor (the national highways agency) projects, construction for Euro 2012, offering Government-backed mortgages, providing youth housing assistance, and funding various investment and infrastructure projects - many focused on increasing exports or energy saving.

This level of Government activity has also been reflected in the Ukrainian economy. Construction and building materials production are both seeing considerable growth, with a total of 60.5bn UAH being spent on construction in 2011, 11% up from the previous year. This figure included 51.8bn UAH spent on buildings and 5.6bn UAH on installing engineering facilities. This makes for encouraging reading, and even more so when they are broken down further - nearly 80% of construction spending went on new developments, renovations, and technical reequipping of facilities, with the remainder being spent on major or operational repair work. Nine million square metres of housing was built in this time, 74% of it in urban areas, with the star performer being Kyiv, where a record 1.5 million square metres of residential construction was finished in that time. The Kyiv Region's achievements did not stop there, however - it posted Ukraine's highest growth rate in general construction along with the Volyn and Donetsk Regions.

The building materials market showed growth across the board, with an increase in production of mineral wool, extruded polystyrene, wall materials, cement, metal framings, suspended ceilings, ceramic tiles, and dry mix. Export levels rose considerably to 14.5bn UAH, creating a trade surplus in the industry of nearly 7bn UAH. This growth in the cement industry, where market leaders include Podolski Cement and Eurocement Ukraine, was helped by the UkrCement association, who are developing effective means of improving adherence to legislation and preventing the sale of substandard or adulterated cement.

Below is a series of short overviews of various areas of Ukraine's construction market:

Clinker production grew by 53% to 471,000 tonnes. International firms are widely represented in this market, such as NELISSEN Steenfabriek, Hagemeister, ABC Klinker Gruppe, Terca Wienerberger, Roben, Celina Klinker, and Abc-klinkergruppe. Main Ukrainian producers include Kerameya, SBK, Arigonbud, Klinkerbud, Rusinia, Euroton, and Silta Brik.
Although around 150 companies in Ukraine produce dry mix, 80% of all production is accounted for by just seven (Knauf Marketing, Helkel Bauteknik, Formalgaut-Polimin, BudMaster, Polirem, Artel, and Gelios), who each have a market share of between 5 and 30%.
The roofing market is projected to rise by 5 to 9%. The majority of leading companies were established in the late nineties: Ruflex, Tegola Roofing Products, and TechnoNIKOL. Additionally, a number of major international companies are represented in the Ukrainian market, including Italian, American, French, and Finnish firms.
International importers are definitely in pole position when it comes to the tiles market, with Roben, Tondach, Coramik, and La Escandella leading the way. Domestic production is mainly accounted for by major factories in Lviv, Mukachevo, Artemivsk, and Slavyansk.
Import-dominated sectors include glass, sanitary ware, and roofing tiles, whereas raw materials are extensively exported, particularly wood and clay.

An exciting feature of the Ukrainian market is the close business relationships that local distributors and representatives enjoy with large international companies. To this end, the domestic company Tretiy Dom have teamed up with Finnmaster, the Finnish producer of tear-resistant, non-slip, UV-resistant, synthetic composite base shingle layers - the only product of its kind in the world. Continuing the Nordic theme, the Finnish shingle and roofing corporation Nordic Waterproofing Oy, following its high-profile purchase of the Kerabit brand, based in Tuulusa near Helsinki, which elevated it to the status of Scandinavia's number one producer, has already agreed a deal with Ukrainian representatives to promote their products in Ukraine and the CIS.

Source: Premier Expo

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28 April 2012

Main trends and main players of Ukraine’s construction industry

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