In 2024, the VESCO Group of Companies in Ukraine significantly increased the volume of ceramic raw material shipments to over 1.2 million tons, which is approximately four times higher than the previous year. Another 1.1 million tons of raw materials were accumulated in warehouses as of the end of the reporting year. Raw materials were mostly supplied to Ukrainian consumers in line with their production requirements and changes in demand. The customers include Ukrainian manufacturers of ceramic tiles and bricks and metallurgical industry enterprises. Gross sales revenue increased by 293% compared to 2023.
“Thanks to expanding logistical capabilities, overcoming operational issues daily, and the resilience of the Ukrainian military, in 2024 we managed to scale up our activities and achieve even better results than we expected, even though we operate in a region that suffers enemy shelling daily. We are currently developing eight quarries and some new business areas within the country,” notes Yevheniy Tsymarman, Executive Director of the VESCO Group of Companies in Ukraine. “Such results create more opportunities to support the resilience of our team, the economy of the country as a whole, local communities, and our defenders. VESCO is part of the critical infrastructure and replenishes the local budgets of the Donetsk region, where we transferred about 87% of all taxes and fees paid in the reporting year. Moreover, in 2024 VESCO allocated UAH 3.8 million for the purchase of certain items for the Armed Forces of Ukraine.”
In 2024, the VESCO Group of Companies in Ukraine invested UAH 37.8 million in business development. Of that, UAH 8.3 million was allocated for the recovery of the measuring laboratory capabilities, in particular by installing new modern equipment. This allowed us to resume various analyses and tests of raw materials by 75% compared to the pre-war period, and also to guarantee relevant quality control at all stages of the production process. Apart from that, the updated laboratory resumed service provision to third-party customers, which confirms the high-level expertise and efficient competencies of Ukrainian experts when using modern technical equipment.
In the reporting year, UAH 17.5 million of the total investments was allocated for the update and repair of technological equipment. The Group also invested UAH 12 million in R&D activities. UMG Kaolin LLC, one of the Group’s enterprises, was granted a five-year special permit for geological exploration of a kaolin deposit with pilot-industrial development of the Ivankivetska site (Zhytomyr Oblast). The Group plans to launch production here with an expected capacity of 50 thousand tons per year. The production will guarantee the creation of about 16 jobs. The project investments are estimated at USD 2 million.
In 2025, VESCO plans to continue technical re-equipment and improvement of production processes. The planned measures include, in particular, the renewal of geodetic equipment, the acquisition of new laboratory equipment to expand the range of physicochemical analyses, and the overhaul of railroad cars.
Although operating in the frontline region, we continue to restore land where mining operations have been completed. In 2024 the VESCO Group of Companies transferred 32.7 hectares of restored land with improved fertile soils and vegetation to communities. The total accumulated value of these restored land plots amounts to UAH 56.5 million.
In 2024 the number of personnel was increased by 8% to ensure production volume growth. In 2025 the group plans to hire another 75 employees to the team. The number of women in production positions is also gradually increasing: following 2024, their share increased from 5% to 10%.
The Group keeps commitments to its employees. Since May 1, 2024, salaries have increased by an average of 14.9%, and in 2025, we plan another increase of approximately 15%. Total expenses for health insurance and corporate events increased by 35% compared to 2023. In 2025 we plan to maintain all corporate projects for personnel.
