Eurocement Ukraine swings to profit

Eurocement Ukraine has reported a rise in net profit for 2012 of UAH37.433m (EUR4.6m) compared to a loss of UAH46.048m in 2011.

The company is a subsidiary of a subsidiary of the Russia-based Eurocement group and has two cement works in Ukraine. Khrakov region in northeastern Ukraine has five kilns, the largest of which was re-commissioned in 2007 after a decade-and-a-half of idleness. The Baltsem works has a theoretical milling capacity of 4.05Mta. The Kramartorsky Pushka cement works near Kramartorsk in the Donetsk region has a cement capacity of 0.65Mta. That works has its prime market in eastern Ukraine.

Local press have reported that Eurocement Ukraine intends to buy clinker worth a total of UAH3bn from Eurocement Trade Company (Russia).

After a double-digit rise in demand in 2011, last year the Ukrainian market proved more subdued. However, with modest rises in GDP expected and as the government invests in road improvements, gains of around five per cent per annum are expected over the 2013-14 period.