The VESCO Group of Companies in Ukraine resumed clay production, having been suspended since the 2022 Russian invasion and not conducted throughout in 2023, obtaining 285,000 tons of raw materials in the first half of 2024. The quantity of finished product shipments to customers and port warehouses increased to 536,000 tons, four times more than in the same period of 2023.
The production results for the reporting period exceeded expectations: the Group beat its target by 11%. This was made possible by stable rail operations for raw material delivery to external warehouses and customers, along with resumed direct supply of ceramic raw materials from Ukrainian ports to other countries via the Black Sea, expanding the Group’s capabilities.
The Group’s capital expenditures aim to ensure seamless equipment operation and maintain high-quality customer service. In the first half of 2024, the total amount of investments exceeded UAH 16.4 million, of which UAH 12 million was invested in relocation and updating the physico-chemical laboratory, which ensures uniform quality of ceramic raw materials under customer requests and international standards.
“It is difficult to present achievements nowadays, but the VESCO Group of Companies in Ukraine has overcome numerous challenges and adapted to the extreme wartime conditions while operating in the Donetsk region. We have resumed the production of raw materials and significantly increased the volume of product shipments,” notes Yevgeniy Tsymarman, CEO of the VESCO Group of Companies in Ukraine. “While we are still facing many challenges, we believe in a peaceful future and are making every effort to bring it closer by aiding both the army and civilians.”
The VESCO Group of Companies in Ukraine is an important funding source for local community budgets in Ukraine’s eastern region, where its main production facilities are located. In the first half of 2024, the total taxes paid to local municipalities amounted to UAH 63.9 million. Despite the tough economic conditions, the Group has remained a responsible employer. From May 1, 2024, staff wages increased by 15-19% on average. The Group’s staff continued receiving support via group-funded health insurance and holiday gifts. More than UAH 1.1 million was allocated to these goals during the reporting period. To ensure staff safety at production sites, work is being done on mobile shelter installation.
Support for the warriors defending Ukraine remains our priority. In the first half of 2024, more than UAH 2.8 million was allocated to support the Armed Forces of Ukraine, the Ukrainian Territorial Defense Forces, and for communities to increase the country’s defense capabilities.
