Joint business ventures in Ukraine

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Source: Hospodárske noviny, 12 November 2010, p. 15; –
During his recent visit to Ukraine, the President, Ivan Gašparovič, was accompanied by a group of strong Slovak businessmen. They were strong in numbers, twenty-eight in all, as well as in their commitment to mutual economic cooperation. Several important investments, joint businesses and projects are involved, one of which was solemnly launched during this visit.

With the participation of the Ministry of the Economy, Ivan Miškov, a company for the collection, storage, sorting and processing of communal waste, Simeko, began its operations in Simferopol. This is the first ever private initiative in this sector in Ukraine. Further, it can be called a PPP, i.e. a public-private partnership project: the Simferopol Fund for Communal Property and the Slovak joint-stock company Bioenergetická spoločnosť are both participating.

Simferopol is the capital of the Autonomous Republic of the Crimea and has 340 thousand inhabitants. In Slovakia, this would make it the second largest town, for which waste management is an important and difficult task. In Simferopol, the solution to this problem has not been meeting current requirements for a long time; the joint activity means a progressive step with a long-term perspective. Simeko deals with the collection of communal waste, its sorting and the possibility of processing secondary raw materials and looks after a waste dump with similar parameters. Its fifty employees, together with the necessary technology, carry out these tasks on a modern level; to date, approximately two million Euros have been invested, and the investments should more than double over the next five years.

Bioenergetická spoločnosť, a. s., with its seat in Kolíňany near Nitra, is specialised in biotechnologies and electro-energy, in particular renewable sources. It has also acquired much experience while carrying out projects in the field of environmental protection and waste management not only in Slovakia, but also in Serbia, Bosnia Herzegovina, in Russia and in Ukraine. Its general director and chairman of the board, Peter Káčerík, underlines the relationship between the energy industry and ecology, a responsible attitude towards environmental protection and the environment. For mankind, it is a basic existential question – and a basic principle underlying its activities for Bioenergetickú spoločnosť. The project in Simferopol is an example of this in practice.

Representatives of Arca Capital and Minerfin also participated in the business mission. They are some of the most important and most experienced Slovak companies in Ukraine and have invested tens of millions Euros here. Arca Capital and one of the most important Ukrainian construction companies, Južspecstroj, recently agreed on a strategic partnership, whose aim is to develop the activities of the joint company Charkovmetrostroj. This association will allow a strong corporation to be built, whose ambition is to become a leader in construction companies in Ukraine.

Minerfin, together with its main partner, the metallurgic business concern Zaporožstaľ, is developing the activity of the Záporožsky iron ore factory. This concerns the mining and processing of 4.5 million tonnes per year of high-quality iron ore which is purchased by steel works in several countries.

GTB from Liptovský Hrádok also wants to implement itself on the large Ukrainian market.

During the business mission, and during the ensuing negotiations, talks began with UkrAVTO, which is the largest company in the automotive industry segment in this neighbouring country. They are interested in creating a joint company dealing with modifications to lorries and technology for communal management, in which GTB has a very good name and experience.

Development in the near future will show whether this plan will be one of the successful joint projects in Ukraine.