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07.11.2007р. |
KRONO: experience of work in Ukraine

Foreign investors, investments…. A lot of talks proceed around these words. Investments give new life, open a way in the future. We made sure herein, visiting the enterprise of Krono group – «KronoLviv» at the Kamyanko-Bus’ka of Lviv region. Just a year ago here all stood still, and now an enterprise woke up, start to run fast, so how it all started we can find out from Maryan Skhodnik, chief of export department:

- Beginning of work on Kronopol in Poland, was similar to «KronoLviv» at Kamyanko-Bus’ka. The swiss group of Krono bought a factory, which was a bankrupt by then, together with all debts. The stream of oversea investments was the main power which raised the enterprise up. We began with production of raw plate, then passed to laminating and cutting. Then there was an agreement concluded with power of province about those minimum obligations of Kronogroup in relation to investments, payment of debts of former factory of DSP and employees of factory. In the moment of signing of contract with Kronopol in 1994 the minimum obligations from investments made 30 million DEM, and quantity of employees was minimum 300 persons, which has to work with pleasure. On this time these investments are 600 million DEM. On Kronopol are employed 1000 emloyees in three shifts. The last ten were employed to work in a factory of melaminkarbomideformaldegide resin, which make possible to close the production cycle. Meaning that, we get raw material, work it into, waist is burnt on a factory for heating of the office and warehouse. A factory fully provides itself with chemicals and heat. We have also own production of tapes for laminating. We buy paper with a picture and impregnate it with. We are cutting formats, pack, and, by the way, afterwards will transport it already here, on “KronoLviv”.

Later we start to analyse the closest markets. Factory in Germany– “Kronotex”, had existed already before - in Franceoperates – “Кronofrans”, well and, of course, the factories in Switzerland, where it all had began – “Kronofis” and “Kronoteck” and “Kronospan”. So the decision to invest in Ukrainewas accepted. Unlike other large companies, which, as a rule, start their way from Russia, meaning Moscow, then later try to look wider, the group of Krono had started from Kamyanka-Bus’ka. We put great expectations on the future. Until now a market confirms the rightness of the decision accepted by the proprietors of Krono and rule of Kronopol. Now the Kronopol leader from the supply of laminated DSP at the Ukrainian market. It is confirmed by good suggestion, a great colour choice – basic scale has 64 colors, by the varied formats and also plenty of thicknesses – from 10 mm upto 32 mm.Now the suggestions of “KronoLviv” will be added in relation to formats, thicknesses and colors. This will be substantial addition of suggestion of Kronogroup in Ukraine. And we feel already now, that the Ukrainian market extraordinarily positively responded to the products of “KronoLviv”. All more representatives of the Ukrainian firms get in from different regions, to conclude contracts on the supply of our products. When talking about the structure of plates market in Ukraine, the volume of consumable laminated plates of Kronopol makes about 40 percents. The products of the Ukrainian factories-producers take substantial seat, less part is engulfed by our enterprise of Interspan, part is on the expensive plates of western companies of Egger, Termopal and others like that. According to the changes in the customs legislation, Russian plate in Ukrainepractically is not present. We have already proposals to the supply the plates of “KronoLviv” to Russiaand other countries. Of course, everyone expect with impatience to see the laminated plates from “KronoLviv”.

- Tell, please, more detailed about history of entrance into the Ukrainian market?

- Three years ago we’ve done the analysis of OSB market in Ukraineand it’s producers: their abilities, placement, technical state of factories, source of raw materials. The choice was done on Kamyanka-Bus’ka, that is explained by closeness to Polandfor delivery of equipment, stuffs, raw material. Suggestions of the Ukrainian side were also done in good time and properly, unlike other enterprises. Presently Kronopol in relation to a capital is the proprietor of “Kronolviv”.

- How the structure of OSB market is going to change when “KronoLviv” will start working on a full capacity?

- The changes will take place, of course, but one should take into account, that market dynamically grows and we hope, that we are not going to cut export of Kronopol to Ukraine, which, as I said already, takes 40 percents of the Ukrainian market. It possesses it’s own color scale and format. “KronoLviv” has different format. There will work out a new color scale and new suggestions, meaning, tnat Kronopol proposals will be complemented. And the changes in the structure of the Ukrainian market will go toward the choice of good quality of plates. Enterprises, which offer the plates of insufficient quality will be forced to leave the market. We had had same situation in Polandthree years ago. Small enterprises got bankrupt, because of not reliable quality and price. Probably such process is expected in Ukraine. The time for good quality has already come, when the Ukrainian customer, same as producer doesn’t hesitate to choose a better quality of plates. In the Kronogroup accent is done foremost on qualities of products. Quality of products, and the well-educated personnel of Western Europe, is the main thing supported by German company. Quality determines a price policy and success on the sale of products of business concern of Krono. On “KronoLviv” also a large accent is done on quality. It was already appreciated by the first buyers. We underline always, that in the cost of products of group Krono Switzerlandincludes the row of factors. It is the not quite dry cost of commodity which is loaded on a transport. This is, foremost, the quality, very good service, advertisement, publicity support at the market, in this particular case – on Ukrainian, support of dealers in work on their territory, selling aids on fairs and exhibitions, conducting of seminars on places, and also is tours on the enterprise of Kronopol, acquaintance with polish base, from which products are coming, in order to see the potential, which stands after these investments.

The Ukrainian market, I consider, really follows the fashion, which is now in Europe, and the design of furnitures. The Ukrainian producers visit international exhibitions in Poland, Germanyand others like that. The level, which now exists abroad is really close here. The Ukrainian buyer also knows what to buy, and wants to pay money for a good commodity. And it is once again getting back to what I said: transformation of market will come to the side of quality. It means, that the requirements to the Ukrainian producer will grow up.

But we will get back to businesses at the plant in Kamyanka-Bus’ka. The company of “KronoLviv” works already more than year. Step by step we moved up farther. Workers were hired from the local population. Highly skilled personnel, usually, are coming from Lviv. Now about 400 employees work at the plant. The reception of workers lasts further, because production is growing. We do an accent on young people. A line, due to the clear adjusted deliveries of raw material, is already loaded on 60 percents. With an coming on full capacity, we will attain 400 м3of plate per 24h (about 130 thousand м3 per year) . We will reach this amount to the end of month. It is strictly watched by engineers from Germanyand Poland. First format, which is good for the Ukrainian market is - 2440х1830 мм. Exactly that is produced by “KronoLviv”. It was neglected at once after marketing researches and approved by the Ukrainian market.

We should mark some peculiarities of the Ukrainian market. For example, our partners need plates of a thickness 16 mm, and we produce it, but I would like to note also, that this thickness is consumed by those enterprises, which work on the old domestic equipment. Producers, who invest in a new woodworking machinery work with a thickness 18 мм. The mounting technology of modern furniture accessories on a thickness of 18 mm, also all companies, which produce build-in closets work with a plate of a thickness 18 and 10 mm, as a rule in a pair. It touches laminated plates as well. Polished plate of a thickness 16 mm, consumes enterprises, which vignette themselves, building companies and also producers of furniture. This is simply cheaper for them. Technological differences make it possible to produce plates of a thickness 16, 18, 19 and 22 mm.

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