Sector Construction Materials

Ukraine

Compiled by:

United States Agency for International Development (USAID)

Kyiv, October 2006

ACKNOWLEDGEMENTS
This publication was made possible through support provided by the U.S. Agency for International
Development (USAID) under the terms of Contract No. 121-C-00-00-00831-00.

The Construction Materials Sector Diagnostics was conducted by KPD 100 Private Enterprise Information
Marketing Center by request of BIZPRO.

ADDITIONAL REFERENCES
All BIZPRO reports and publications can be downloaded in PDF format from the “Electronic Library”
section of the BIZPRO website (www.bizpro.org.ua ).

U. S. Agency for International Development (USAID) KPD 100 Private Enterprise Information Marketing

Regional Mission to Ukraine, Moldova, Belarus Center

19 Nyzhniy Val St., Kyiv 04071 Ukraine 7 Briullov St.

Тel.: (+38-044) 537-4600 Kyiv 03049 Ukraine

Fax: (+38-044) 537-4684 Tel./Fax: (+38-044) 248-9145

http://ukraine.usaid.gov

BIZPRO
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Kyiv 03056 Ukraine
Тel.: (+38-044) 490-3350
Fax: (+38-044) 496-7728
www.bizpro.org.ua
SECTOR DIAGNOSTICS

CONSTRUCTION
MATERIALS
October 2006

This report has been compiled based on a survey the findings of which may differ from the point of view of BIZPRO
or the U.S. Agency for International Development (USAID).

Kyiv 2006
CONTENTS
SUMMARY ........................................................................................................................................... 1
SURVEY METHODOLOGY ................................................................................................................. 6
1. STRUCTURE AND CAPACITY OF SECTOR’S MARKET ............................................................. 7
1.1. Segmentation of Sector’s Market by Product Group ......................................................... 7
1.2. Production Volume by Segment in 2000-2004. Key Producers ........................................ 10
1.3. Sales by Segment in 2000-2005........................................................................................ 46
1.4. Volume and Structure of Sector’s Export in 2000-2004..................................................... 54
1.5. Volume and Structure of Sector’s Import in 2000-2004..................................................... 57
1.6. Volume of Foreign Direct Investment in 2000-2004 .......................................................... 62
2. PRODUCTION ................................................................................................................................. 64
2.1. Organization and Structure of Production......................................................................... 64
2.2. Technological Level and Re-Equipment of Sector Enterprises ........................................ 68
2.3. Research and Development and Copyright Issues .......................................................... 74
2.4. Problems of Certification and Standardization of Products .............................................. 77
3. RAW MATERIALS AND RESOURCES .......................................................................................... 81
3.1. Situation on Raw Materials Market .................................................................................. 81
3.2. Models for Supplying Raw Materials Used by Enterprises in the Sector......................... 87
3.3. Structure and Efficiency of Energy Resources Use......................................................... 88
4. SALES.............................................................................................................................................. 97
5. COMPETITION................................................................................................................................. 108
5.1. Market Shares of Key Competitors .................................................................................. 108
5.2. Activities of Key Market Players....................................................................................... 108
5.3. Level of Competition and Competitive Advantages of Various
Companies in the Industry ...................................................................................................... 130
5.4. The Shadow Economy’s Role.......................................................................................... 133
6. FINANCE.......................................................................................................................................... 134
6.1. Cost Structure ................................................................................................................. 134
6.2. Average Production Profitability by Segment ................................................................. 134
7. EXPORT BUSINESS ....................................................................................................................... 136
7.1. Export Business of Enterprises in the Sector ................................................................. 136
7.2. Level of Support and Evaluation of Consequences of Ukraine’s Possible Accession to
World Trade Organization, European Union, and Common Economic Space...................... 139
8. DEVELOPMENT .............................................................................................................................. 146
8.1. Main Directions for Industry’s Development ................................................................... 146
8.2. Quality Standards, Extent of Implementation of International Certification .................... 148
8.3. Level, Structure, and Origin of Investments in Development of Sector’s Enterprises .... 153
9. REGULATORY ENVIRONMENT..................................................................................................... 156
9.1. Administrative Barriers to Economic Activity in Construction Materials Sector .............. 157
9.2. Influence of Economic Entities on Regulatory Environment........................................... 160
10. BUSINESS ASSOCIATIONS......................................................................................................... 164
APPENDICES ...................................................................................................................................... 171
GENERAL SPECIFICATIONS FOR BUILDING PRODUCTS.............................................. 208
LIST OF ABBREVIATIONS USED ....................................................................................... 219
SUMMARY
Market
The nonmetal construction materials industry,
which is the subject of this survey, can be
subdivided into four main segments, according to
what it produces:
1. Nonmetal mineral products (cement, lime
and plaster, glass and glass products,
ceramic products, walling and roofing,
mining and dressing of natural stone,
heat-insulating and waterproofing
materials, etc.);
2. Varnishes, paints, and dyes;
3. Rubber and plastic building products;
4. Parquet and other wood articles.
The Ukrainian construction materials sector has
been showing sustainable growth since 2000,
thanks to:
1) overall development of the building
industry, manifested in new building
projects; and
2) reconstruction of residential, office,
commercial, and industrial properties.
In the period under study, the industry was
characterized by high growth rates, averaging
15% every year. Sales of construction materials
are showing even higher growth figures, of 25%
per year. In 2003-2004, there was a substantial
growth in production, and the industry grew at
nearly 30%.
According to Ukraine’s State Statistics Committee,
there are nearly 9,000 companies making
construction materials in Ukraine. The majority of
them are concentrated in the Kyiv, Lviv, Kharkiv,
Donetsk, Sumy, and Zhytomyr regions. However,
the range and quality of domestic products do not
always satisfy the needs of modern civil
engineering. A significant development lag is the
result of the sub-par technological level of
production facilities, and requires innovation and
investment.
Based on State Statistics Committee data, the
nonmetal construction product industry’s output
amounted to Hr14.8 billion in 2004, including:
Hr12.7 billion for mineral products, Hr0.8 billion for
paints and varnishes, Hr0.8 billion for rubber and
plastic building products, and Hr0.5 billion for
woodworking and wood products.
Prepared by BIZPRO
Various industry segments have different
development dynamics. The production of
ceramic tiles, walling, dry building mixtures,
concrete or artificial stone components of
prefabricated structures for residential and civil
construction, plaster products for residential and
civil construction, and sheet glass increased from
2000 through 2004. There was some decline in
the production of corrugated boards (asbestos
boards and similar asbestos cement products),
slag wool, mineral silicate cotton, and other heat-
insulating materials.
The construction materials sector is quite active
both in export and import. Thus, import in the
industry amounted to $1,155.2 million at the end
of 2005, and export to $1,160.2 million. According
to Ukraine’s State Statistics Committee, import
was growing at an average 20% annually (both in
terms of money and physical volume) during
2000-2004.
According to the Statistics Committee data, the
industry’s key export items include wood products
and mineral materials and products (including
sheet glass, ceramic products, granite, and raw
materials used for production of construction
materials). CIS and European countries are the
key markets for industry exporters.
The construction materials imported are goods
made by means of technologically complex
processing and manufacturing processes.
Domestic manufacturers’ equipment keeps them
from fully satisfying internal market demand.
Plastics, flooring materials, stairs, and ceilings, as
well as heat-insulating and waterproofing
materials, account for the largest percentage
share of imports.
The construction materials sector’s attraction of
investors is based on Ukraine’s improved
economic climate, the availability of a raw
materials base, the development of the
construction materials trade sector, and the
growing volume of capital construction. The
largest number of investors come from Russia,
Germany, Italy, France, the USA, and island
nations. Foreign investment is still not
considerable. It is hampered by a deficiency of
manufacturing facilities, a lack of political stability,
high taxes, the lack of an investment insurance
system, and insufficient state support for
investment policy.
1
Investors prefer establishing new manufacturing
enterprises, and opening branches and affiliate
companies, to modernizing and modifying existing
facilities. This is primarily due to the existing
facilities’ lack of compliance with modern
manufacturing standards. Foreign investors,
however, also invest in existing enterprises,
launch production lines, invest in development of
retail chains, create and promote trademarks, and
modernize enterprises. The most attractive
segments for foreign investors include plastic
products, glass, kaolin, cement, dry building
mixtures, ceramic tiles, and plaster stone
products.
Production
Significant qualitative changes took place in the
structure of construction materials production over
the last two years (2004-2005):
- manufacturers are introducing new
technology, modernizing their enterprises
(most with their own equity and foreign
direct investment);
- they’re introducing foreign technology and
implementing quality assurance systems
based on international standards;
- transition is underway towards
manufacturing materials and products the
market needs (based on new technology,
with the latest properties and features).
These conform to modern building
requirements. They are competitive and
can replace imports (wood products,
paints and varnishes, heat-insulating
materials and products, bricks, dry-
building mixtures, and safety glass).
The industry is energetically modernizing itself.
According to the survey, the majority of
companies in the industry (62.5%) were buying
equipment, mostly by the individual unit, in 2005.
This is especially the case for large companies.
Foreign equipment was mostly imported from
Germany, Italy, Poland, and Russia.
Copyright
In entrepreneurs’ opinion, copyright issues are not
very relevant for the construction materials sector.
Only 9.0% of the surveyed industry enterprises
claimed that illegal copying of industrial models
was common, whereas two thirds of those
surveyed believe there is no illegal copying at all.
Certification
There is mandatory and voluntary certification for
the majority of construction materials industry
products in Ukraine. Survey results show that a
quarter of the companies whose products are
subject to mandatory certification in Ukraine do
Prepared by BIZPRO
not consider the existing domestic standards
obsolete.
Raw Materials and Resources
Ukraine has plentiful natural sources of raw
materials for making construction materials:
deposits of kaolin, clay, lime, gypsum, granite,
quartz sand, basalt, chalk and pearlite.
Construction materials producers have no
problem in terms of raw materials availability.
However, to manufacture certain products,
smaller amounts of raw materials and stock are
imported, mainly from Western European and CIS
states. To produce dry building mixtures, for
example, significant amounts of admixtures are
required, which are imported from EU countries.
Energy accounts for about 16.3% (this share
varied from 5% to 40% by segment) of the cost
structure of construction materials. To reduce
energy consumption, each industry’s segment is
using its own methods. For example, glass
manufacturers are improving their raw material
processing techniques and the design of their
glass furnaces. Roofing manufacturers are
improving the structure of materials and new
production techniques. One of the key methods of
reducing fuel consumption in the production of
cement, meanwhile, is to reduce the slime
humidity, etc. Another issue is modifying the
facilities to take advantage of the energy-carriers
that prevail in Ukraine, as well as non-traditional
energy sources (solar, wind, and industrial waste).
Sales
The primary sales channels for construction
materials manufacturers include building
organizations, wholesale distributors, and
specialized stores or construction material
supermarkets. Markets and bazaars are still active
in this sector, selling products to retail customers.
Large enterprises also create their own sales
chains and sell their produce through their own
representative offices. Some construction
materials distributors operate directly from
manufacturers’ warehouses, which sell
construction materials in large batches.
According to the survey, direct sales to end users
from the warehouse and custom orders were the
most common sales channel in 2005. They were
used by nearly two thirds of companies. Half the
surveyed companies indicate that their products
are distributed through wholesale agents. About a
third of companies used such channels as retail
agents and direct sales through their own retail
chains.
Competition
The construction materials sector consists of
numerous product categories subdivided into
segments. It is therefore reasonable to discuss
2
competition within each segment and sub-
segment.
For instance, in the cement production segment,
nearly 60% of the Ukrainian market is controlled
by four large companies (HEIDELBERGCement,
EUROCEMENT, CRH, Dyckerhoff), which own six
cement plants in different parts of Ukraine: OJSC
Balcem, OJSC Podolcement, OJSC Kryvyi Rih-
Cement, OJSC Cement Donbasu, OJSC Volyn-
Cement, and OJSC Dniprocement. Regional
business groups own the rest Ukraine’s cement
plants.
There is a real fight in the roofing felt market for
market shares and to boost production outputs.
The key players here include Slavuta Ruberoid
Plant, Technonikol, and Akvaizol, based in
Kharkiv.
The Proletariy Glass Plant, in Lysychansk, is a
clear leader in the glass market. It manufactures
high-quality, thermally-polished float glass.
The markets for dry building mixtures and paints
and varnishes were quite competitive. The market
for dry building mixtures (80%-85% of total output)
is dominated by ten enterprises of national
significance (listed alphabetically): Akvalit (Akvalit
TM), Artil (Artisan TM), Bion-Impeks (Sim Gnomiv
TM), Helios (Ferozit TM), PavlohradZhytloBud
(BudMaister TM), Polirem (Polirem TM), TRST
(ProfiLine TM), Fomalhaut (Polimin TM), Henkel
Bautechnik Ukraine (Ceresit, Thomsit TM), and
KhZSS (Tokan TM).
More than 80% of the varnish and paint market in
Ukraine is held by leading manufacturers, the
most important of which are the Dnipropetrovs’k
Varnish-and-Paint Plant, CJSC Lakma, OJSC
Sumykhimprom, OJSC ELAKS, Korosten’ Yantar
Plant, CJSC Nifar, PE ZIP, and Kremniypolimer.
Concurrently with development of the leading
Ukrainian manufacturers, foreign producers are
launching their own affiliates, including Sniezka
(Poland) and Jobi (the Netherlands). They are
also creating joint ventures like Meffert (a German
concern with the Dnipropetrovs’k Plant) and Farby
Koloryt Ltd. (Finnish-Ukrainian JV, Tikkurila TM).
The ceramic tiles market was occupied by the
following companies in 2004: Kharkivska
Keramika Ltd. (55.2%); Atem (13.8%); CJSC Lviv
Ceramics Plant (18.9%); CJSC Piastrella-K
(7.2%); Karpatska Keramika (4.0%); and ChMP
Fagot (4.0%). The Zevs Keramika Company
significantly boosted its output by launching new
production lines in 2005.
The Kovalska Reinforced Concrete Plant (50%),
ZhBK No.1 (8%), and Darnytsya ZhBK (6%) are
the key players in the production of concrete and
products.
Prepared by BIZPRO
According to the surveyed companies, the main
methods of competitive struggle in the domestic
market include attractive pricing (52.1% of the
surveyed entrepreneurs believe that their pricing
provides competitive advantages), properly
operating sales channels (51.3% of entrepreneurs
depend on that), and superior product quality
compared to the competition (this is the core
competitive advantage for 49.6% of companies). It
is only a comparatively small percentage of
companies that rely on unique products (14.3%)
and customized products (10.1%).
In experts’ estimates, the shadow economy plays
an important role in the construction materials
market. Building projects require significant
financial outlays; therefore, consumers try to find
any means to save money. Shadow sector
methods are based on significantly reduced
prices. These interfere with the operation of legal
players, which try to fight the gray market by
creating and promoting new trademarks,
developing protective packaging/labeling,
establishing closer cooperation with distributors,
and expanding their own distribution networks,
etc.
Finance
Making construction materials is raw material
intensive, and therefore, raw materials costs and
inputs account for the major part of production
costs. According to the interviewed experts, these
costs account on average for 52% of production
cost. The rest is used for payroll, depreciation of
equipment, energy, transport, marketing, R&D,
packaging, etc.
Construction materials are a rather profitable
business. Some 53.7% of companies regard the
financial situation as profitable based on their
2005 performance, and 36.3% describe it as
breakeven. Only 10% state they were unprofitable
in 2005.
According to unofficial data, average profitability in
the industry runs between 15% and 20%. Each
segment, however, has its own profitability level,
which depends on the prime cost and level of
competition, product life, range of products,
demand trends, and company size. Aside from the
general profitability situation, there are differing
profitability levels for different product groups
within one company. Specifically, a unique
product might be more profitable, while for other
groups it makes sense from the marketing point of
view to work “zero-based.”
Therefore, according to respondents’ data, the
average profitability for the dry building mixtures
segment is estimated at 15% to 18%, and
sometimes approaches 25%. Profitability as high
as 100% could be achieved for brick manufacture
3
and sales; however, it is normally 50% (even
though profitability for brick manufacturing without

7
sales only amounts to 3%-10%). Average
profitability for the varnish and paint segment
oscillates between 20% and 80% (even though
some experts also quoted the figure of 5%). For
woodworking, concrete, roofing and ceramics
products, the profitability is rather low, varying
from 5% to 10%.
Export and Participation in International
Associations
Today, only about a quarter of construction
materials companies (24.8%) are exporting their
produce. Large companies are the main exporters
in the sector. Some 66.7% of them are or have
been involved in export.
For the companies engaged in export business,
the main foreign markets include CIS states and
European countries.
According to the survey, the main problems
companies have experienced in entering CIS
markets have been a high level of competition and
bureaucratic barriers in Ukraine.
Overall, the Ukrainian manufacturers of
construction materials are supportive of Ukraine’s
joining various economic and political groups.
Nearly a half of surveyed companies fully support
Ukraine’s joining the World Trade Organization,
European Union, and Common Economic Space,
with about a quarter of companies opposed to
such actions.
However, opinions widely vary about possible
consequences of joining the above groups.
Opinions split almost equally with regard to the
possible impact of Ukraine’s joining the WTO and
EU. Some 28.2% of entrepreneurs believe WTO
accession will improve the situation in their
companies, 27.3% expect a worsening of
situation, and another 31.8% believe nothing is
going to change. Expectations about joining the
European Union are approximately the same.
There are more positive expectations regarding
Ukraine’s joining the Common Economic Space,
with just 16.8% of interviewed entrepreneurs
believing that joining it will have a negative impact
on their companies. Improvements in their
situations are anticipated by 33.6% of enterprises,
and 35.5% believe that nothing will change.
Well-informed manufacturers believe that joining
the WTO, EU, and CES will have a positive
impact on development of Ukrainian enterprises
and increase their output, as possible
consequences of joining these groups would
include:
- leveling of border barriers;
- improvement of Ukraine’s investment
attractiveness;
Prepared by BIZPRO
- bringing production development to a
qualitatively higher level;
- increased production volume and sales thanks to
market expansion (however, tougher competition
is also possible).
Development
There are good prospects for growth in each
segment of the construction materials industry.
For the dry building mixtures segment, experts
forecast growth in the share of cement and plaster
mixtures. It is estimated that the market for dry
building mixtures will grow by about 30%.
According to market experts, heat-insulating
systems are the most promising materials (given
price hikes in utility services and energy), along
with plaster fillers and grout. Some manufacturers
forecast increases in sales of certain types of dry
mixtures, e.g., materials for machine application
and façade finishing.
In the concrete products segment, the production
of foam concrete is expected to increase, as its
properties are superior to those of ceramic bricks
and reinforced concrete.
The glass market is developing rapidly. Experts
believe the main focus will be on production of
float glass, hardened and safety glass for building,
and energy-saving glass.
The roofing market is also developing: corrugated
bitumen plates (euro-boards) and polymer-
bitumen membranes (euro-ruberoid).
The varnish and paint market is showing growth in
output and an increase in the number of brands
present on the market, both Ukrainian and
international. Advertising activity is growing, and
there is growing demand for higher-quality and
environment-friendly goods in the mid-price and
premium price segments. Water-dispersion acrylic
paints very promising.
In the rubber and plastics segment, experts
expect a 20% increase in the production of
polyethylene pipes.
Survey results indicate that most companies’
products are standardized, as required by the law
(78.3% of companies). The situation is virtually
the same as regards certification according to
Ukrainian standards, with the products of every
second surveyed company subject to mandatory
certification in Ukraine.
The level of implementation of quality
management systems, however, is rather low.
Only 23.5% of companies have international
certificates for their quality management systems.
This situation is primarily connected with various
companies’ engagement in the export business.
Only 34.6% of companies have international
4
certificates. This is because the level of
production and quality of goods fail to comply with
international standards.
Regulatory Environment
Survey results indicate that the regulatory
environment remains largely unfavorable for
conducting business.
Companies’ most common encounters with
supervisory bodies take place during inspections
related to economic activities (81.5% of the
companies experienced this procedure in 2005).
The most complicated procedures were those
related to licensing and obtaining permits. The
simplest ones were those related to import of
goods.
In the opinion of entrepreneurs, their ability to
influence the regulatory environment for the
construction materials industry by legal means
was insignificant. In 2005, only 8.9% of
companies took part in discussing draft
resolutions that would regulate entrepreneurial
activities at the central government level. When it
came to discussing draft resolutions developed by
local authorities, the degree of company
participation was slightly higher (24.3%).
Another means of influencing decision-making
was making informal payments to officials. The
most frequently quoted reason for entrepreneurs’
resorting to informal payments was to accelerate
completion of administrative procedures (38.1%).
Some 25.7% of entrepreneurs say payments have
to be made to avoid obstacles in completing
administrative procedures. Another 24.8% of
entrepreneurs believe the reason is that officials
demand such payments.
Business Associations
Cooperation between enterprises from different
segments within the construction materials
industry is effective and beneficial for all parties in
the following matters: lobbying industry members’
interests; developing public relations; developing
Prepared by BIZPRO
specialization and cooperation in manufacturing;
cooperation in R&D activities, etc. However, the
level of engagement of the construction materials
industry’s companies with business
groups/business associations was low as of April
2006. According to the survey, nearly one third of
companies in the industry (27.7%) are members
of such associations.
The following industry associations are extant in
Ukraine at this time:
- Association of Cement Producers;
- Association of Producers of Dry Building
Mixtures;
- Association of Ceramics Products
Producers, Exporters, and Importers;
- Ukrainian Association of Stiff Concrete
Producers;
- Ukrainian Association of Stone Exporters;
- Ukrainian Association of Nonmetal
Construction Materials Producers;
- Association of Polymer Shapes
Producers;
- Association of Plastics Shapes
Producers;
- Sklo Ukrayiny Glass Industry Association;
- Association of Roofing and Insulating
Materials Producers;
- Association of Polymer Pipeline
Manufacturers and Builders;
- Association of Transparent Structure
Manufacturers;
- UkrBudMaterialy Corporation (including
Vinnytskbudmaterialy, Lvivbudmaterialy,
Kyivbudmaterialy)
5
SURVEY METHODOLOGY
The survey objective is to study the status and
dynamics of the construction materials sector in
the period of 2000 through 2005.
The following data have been used in the course
of the survey:
1. Secondary Data
1. Summarized data of Ukraine’s State Statistics
Committee regarding construction materials
production volume, sales of construction
materials, volume of export and import of
construction materials, and foreign investments in
the construction materials industry.
2. Media reports and other open sources of
information.
2. Results of the National Survey of Managers
of Construction Materials Industry Companies,
Commissioned by the BIZPRO Project
The national survey of company managers in
various manufacturing sectors has been
performed with a view toward studying the internal
and external barriers to conducting business in
the construction materials sector.
The survey was conducted among managers of
companies of all sizes, all of which are legal
entities and which operate in the construction
materials industry as their core activity. The
survey focused on manufacturing companies only,
without surveying any trade companies or
customers. The total sample comprises 122
company CEOs.
The survey has been implemented using the
structured interview method. The questionnaire
included the following sections:
1. Key information about the company
2. Export
3. Investments
4. Resources
5. Sales channels
6. Foreign economic policies
7. Standardization and certification
8. Competition
9. New designs and industrial models
Prepared by BIZPRO
10. Regulatory environment
11. Level of civic engagement of companies
In terms of their size, the companies have been
categorized into small (up to 50 employees
inclusive), medium-sized (from 51 to 250
employees), and large (more than 250
employees) companies. Companies of different
sizes have been selected in proportion to their
share in the general sample.
3. Results of Expert Survey Conducted by
KPD100 Company
The survey was intended for obtaining expert
evaluations of the situation on the construction
materials market.
The survey tasks were as follows:
1. Identify construction materials market trends in
terms of raw material supplies (Ukrainian and
foreign suppliers) and forecast the situation for the
next several years.
2. Assign the main production costs by item,
assessing the profitability level.
3. Evaluate export capacity of companies of
different sizes, identifying the target export
countries.
4. Evaluate the quality of products manufactured
by various industry companies, as well as their
compliance with international standards.
5. Identify investing locations, directions, origins,
and forecasts (including foreign investments) for
the industry.
6. Evaluate the producers’ ability to influence
government policy pertaining to their industry.
7. Evaluate availability and operational
particularities of R&D and experimental design
departments within companies, as well as clarify
the situation concerning availability of registered
trademarks.
8. Identify the key producers of construction
materials in Ukraine and assess their market
shares.
9. Evaluate the size of the shadow economy.
The sample consisted of 14 experts. The experts
are CEOs of large and medium-sized construction
materials manufacturing companies.
6
1. STRUCTURE AND CAPACITY
OF SECTOR’S MARKET
1.1. SEGMENTATION OF SECTOR’S MARKET BY PRODUCT GROUP
According to Ukraine’s National Classifier SCP
(DK 009:2005, effective as of April 1, 2006), the
nonmetal construction materials sector may be
subdivided into four main segments, according to
groups of building products: manufacture of
nonmetal mineral products (production of all
types of glass, ceramic products, tiles, bricks,
roofing tiles, cement, plaster, stone dressing,
etc.); production of varnishes, paints, and dyes;
manufacture of rubber and plastic products for
building; and manufacture of parquet and other
wood products.
The sector structure is shown in Diagram 1-1.

DIAGRAM 1-1. STRUCTURE OF CONSTRUCTION MATERIALS SECTOR1

CONSTRUCTION
MATERIALS SECTOR

Production of Production of Production of parquet Production of

nonmetal mineral vanishes, paints, and other wood rubber and plastics
materials and and dyes products products
products

Production of Production of Production of ceilings, Production of

glass and ceramic floors parquet
glass materials and
products products
Production of roofing
and water-proofing Production of other
materials building wood
Production of Production of
products
cement, lime, dry building
plaster, and mixtures Production of doors and
building windows
mixtures

Mining and Production of Production of heat-insulating and sound-proofing

dressing of wall materials
natural stone materials

Production of building bars and equipment

Production Production
of concrete of cement
and products
concrete
products
1
The following is to be analyzed below: production of mineral materials and products: production of cement, plaster, lime, bricks,
mortar; production of dry building mixtures; production of concrete and concrete products; production of glass and ceramics;
production of ceramic building products; production of parquet and other wood products; production of rubber and plastic products
for building; production of paints and dyes; production of roofing materials; production of ceilings, floors, stairs.

Prepared by BIZPRO 7
The diagram has three segments shown
separately:
а) Production of ceilings, floors, and stairs,
b) Production of roofing materials, and
c) Manufacture of doors and windows, the
component parts and materials of which belong to
various product groups within the construction
materials sector, and which are taken into account
in the total production output. It seems
reasonable, however, to diagnose these
segments as a single separate segment.
Also, the following should be referred to the
construction materials sector:
- production of joining and sealing materials
(which borders on chemical industry goods);
FIGURE 1-1. STRUCTURE AND OUTPUT OF CONSTRUCTION MATERIALS SECTOR IN 2004, HR
MILLION
- production of heat-insulating, waterproofing, and
soundproofing materials (made of both mineral
raw materials and through chemical processes);
- manufacture of building fittings and equipment,
which should be considered as a separate class
or as machine-building industry segment.
According to the State Statistics Committee, the
output of the nonmetal construction materials
sector amounted to Hr14.8 billion in 2004,
including Hr12.7 billion for nonmetal mineral
products; Hr0.8 billion for varnishes and paints;
Hr0.8 billion for rubber and plastics products; and
Hr0.5 billion for woodworking and wood products
(Fig.1-1). A detailed description of the items
included in the sub-segments is contained in the
Appendices, Tables 1 and 2.

14000 12717,7

12000
Production of nonmetal mineral products
10000
Production of varnishes and paints
8000
Hr million

Production of wood products

6000

Production of rubber and plastics products

4000

2000 762,4 801,0 537,2

0 Source: State Statistics Committee of Ukraine

As the data makes clear, mineral products are the output in monetary terms. The breakdown of
key subsector within the construction materials segment shares within the sector is shown in
segment, amounting to 85.8% of the total sector Fig.1-2.

FIGURE 1-2. SHARES OF SEGMENTS WITHIN CONSTRUCTION MATERIALS SECTOR BY OUTPUT

(IN MONETARY TERMS)

Rubber and plastics

products Wood products
5,4% 3,6%
Varnishes and
paints
5,1%
Nonmetal mineral
products
85,8%

Sourc e: Sta te Sta tistic s Com m ittee of Ukra ine

Prepared by BIZPRO 8
Due to a change in the state classifier in 2004, it Therefore, we will provide a comparison for the
would be inappropriate to compare the data of years 2000-2003. During 2000-2003, production
2000-2003 and 2004, as the composition and output grew at an average annual rate of about
number of product groups by subsector have 15% (Fig.1-3) and sales grew at an average of
changed (the classification of 2000-2003 is shown 25% per year (2000-2003) (Fig.1-4).
in greater detail in Table 2 of the Appendices).
FIGURE 1-3. PRODUCTION VOLUME OF NONMETAL CONSTRUCTION MATERIALS IN 2000-2004,
HR MILLION

Nonmental mineral materials and products

Paints and varnishes
Wood products
Rubber and plastics products

4000,7

3264,6

2277,4 2938,5

1184,9
1089,7
1271,5 941,
972,3
519,4 700,7
417,8
60,7 83,9 144,0
36,6
2000 2001 2002 2003

In 2000-2003, the highest output growth rates segment.

were observed in the rubber and plastics
FIGURE 1-4. SALES DYNAMICS OF NONMETAL CONSTRUCTION MATERIALS IN 2000-2005, HR
MILLION

Nonm eta l m inera l m a teria ls a nd p rod uc ts

Pa ints a nd va rnishes
Wood p rod uc ts
Rub b er a nd p la stic s p rod uc ts

11492,0

9830,7
8073,3
1062,8
6166,5 960,0
5766,4 852,6
5075,5 803,6
900,8 376.7
645,3 7196,8
612,1 530,4
451,2 445.3 5730,1
363.6 4535,5
2790,8 3153,6
2239,6

2000 2001 2002 2003 2004 Nine months of

2005

Prepared by BIZPRO 9
According to estimates of Ukrainian experts1, the
construction materials and services market has
significant potential, showing growth of 26%-30%
in 2004 against the previous year.
Positive trends on the market are influenced by a
number of factors, the most important of which
include:
1. High growth rates for the country’s economy.
According to the State Statistics Committee, the
average annual GDP growth rate was 8.4% from 2000-
2004 (a 12% increase was recorded in 2004 vs. 2003).
2. A higher growth of gross added value was observed
in 2000-2004 in the core types of economic activity,
2
where the building industry occupies a special place .
3. The growing volume of commercial and office
building construction projects, as well as of
residential projects.
Despite a decline in building volume in 2002, the
years 2003 and 2004 provided high rates of
1.2. PRODUCTION VOLUME BY SEGMENT IN 2000-2004. KEY PRODUCERS
The subjects of this study in the nonmetal mineral
products segment are listed below (a detailed list
of product groups is shown in Tables 1 and 2,
provided in Appendices): Production of glass and
glass products; Production of ceramics goods;
Production of cement, concrete, plaster, and lime;
Production of bricks (clay and lime-sand bricks);
Production of concrete, cement, and plaster
products, building mortar; Production of dry
building mixtures; Production of other nonmetal
mineral products.
The following subsectors are diagnosed
separately: Production of parquet and other wood
articles; Production of rubber and plastic products;
Production of paints and dyes; Production of
roofing; and Production of ceilings, floors, and
stairs.
The nonmetal mineral materials and products
segment consists of major subsegments, which
have their own development directions and
influencing factors. Therefore, it seems
reasonable to discuss each sub-segment
separately. According to the State Statistics
Committee, annual average growth of about 25%
was observed for the nonmetal mineral products
sector from 2000 through 2004. Growth in output
______________________
1 th
Statistical data of the 5 International Specialized Exhibition “PRIMUS: WINDOWS, DOORS, SHAPES
2005”/http://www.okna.com.ua/artic.php?a=389.
2
State Statistics Committee: «Statystychnyi dovidnyk» (Statistical Reference Book).
3 th
Statistical data of the 5 International Specialized Exhibition “PRIMUS: WINDOWS, DOORS, SHAPES
2005”/http://www.okna.com.ua/artic.php?a=389.
4 th
Statistical data of the 5 International Specialized Exhibition “PRIMUS: WINDOWS, DOORS, SHAPES
2005”/http://www.okna.com.ua/artic.php?a=389.
5 th
Statistical data of the 5 International Specialized Exhibition “PRIMUS: WINDOWS, DOORS, SHAPES
2005”/http://www.okna.com.ua/artic.php?a=389.
Prepared by BIZPRO
growth of building volume and contract work
thanks to implementation of capital repairs and
reconstruction of industrial enterprises. In the
majority of the country’s regions, especially in the
capital city, there was a significant increase in
building of social and cultural facilities, including
residential properties. Significant investments in
capital construction have made it possible for the
building industry to make Hr20.8 billion in
contracts, which is 23.9% more than the 2003
amount of Hr14.0 billion (which itself is 24.3%
more than in 2002)3.
4. The growth of the population’s real disposable
income, adjusted for the price factor and inflation,
by an average of 13% in the period 2000-20044.
5. The improved quality of construction materials
and extensive use of advanced materials and
technology.
was noted in the production of ceramic tiles,
walling, components of prefabricated structures
for housing construction and civil engineering
made of cement, concrete or artificial stone,
plaster products for housing construction and civil
engineering, plate glass, and cement. There was
some decline, however, in the production of
corrugated sheets (asbestos sheeting and similar
products made of asbestos cement), slag wool,
silicate wool, and similar mineral wools (here and
elsewhere in the text, the product names are used
in accordance with the Statistical Classifier).
Glass Making
Just as has been the construction materials
market in general, the Ukrainian glass market has
been developing and growing in recent years.
This applies to both its capacity and structure. At
the same time, various segments within this
market differ from each other in their development
dynamics. Thus, the domestic output decreased
to nearly 19.8 million m2 in 2003 from 23.6 million
m2 in 20025 mainly due to a decrease in the
production of glass based on Furco technology
and stoppage of work at the Avtosklo Plant and
the Lysychansk Glass Plant.
10
There has been an unconditional increase in glass
sales since 2001, with an average annual growth
of about 20%1. This has been caused by the
growing use of medium- and high-quality float
glass. Experts believe it is the growing demand for
this product that caused a decrease in exports for
the Proletariy Plant in 2002-2003, which resulted
in increased sales on the domestic market. This
has also boosted imports from Russia and
Belarus.
Experts estimate the annual increase in use of
float glass in Ukraine at 20%. For special types of
glass (tinted, mirror, and low-emission glass), the
annual growth in consumption is estimated at
35%-40%, nearly all satisfied through imported
supplies.
Today, enterprises making glass and products,
including more than 50 large- and medium-sized
TABLE 1-1. STRUCTURE OF PLATE GLASS MARKET IN UKRAINE IN 20042
Output in 2004, Import in 2004,
Type of glass
million m2 million m2
Drawn glass 9.044 0.662
Float glass 16.745 7.7517
FIGURE 1- 5. GLASS PRODUCTION VOLUME IN 2000-2004, HR MILLION
plants and about 180 enterprises engaged in
industrial processing of plate glass, are all non-
governmental enterprises. Not all of them survive
the competition. Some diversify into making other
products and learn how to work under market
conditions. Capital assets are worn out. A lack of
long-term capital investment has led to an almost
complete moratorium on construction of new
facilities that make plate float glass, leading to an
annual shortfall of 15 million m2.
Only one company, CJSC Lysychansk Proletariy
Glass Plant, is working and developing; a float
glass line is being built at the plant at this time).
The company produces about 17 million m2 of
plate float glass per year, which is clearly not
sufficient.
Export in 2004, Demand, Shortfall,
million m2 million m2 million m2
4.424 11.00 5.718
8.185 35.00 18.6883

500
435,5
450
386,0
400 349,8
350
Hr million

300 260,9
231,3
250
200
150
100
50
0
2000 2001 2002 2003 2004

Source: State Statistics Committee of Ukraine

The Sklo Ukrayiny Glass Industry Association consumption of plate glass3.
provides the following statistics for production and

______________________
1
From calculation of absolute value data of the State Statistics Committee of Ukraine.
2
www.okna.com.ua
3 rd
From materials of the roundtable Prospects for Using Glass in the Building Industry, 3 International Specialized Exhibition
“Primus: Architectural Glass 2006”.

Prepared by BIZPRO 11
 FIGURE 1-6. PRODUCTION AND CONSUMPTION OF PLATE GLASS IN UKRAINE IN 2002-2005,
SQUARE METERS

29,5
30
26,6 25,8 25,8
24,4
25
21,3
20 19,2 18,6

15

10

0
2002 2003 2004 2005г.

production consumption

Looking at trends in the development of the glass Tables 1-2 show the main materials in the glass
market structure, one might notice that high- production structure and physical production
quality production is growing at a high rate, volume figures for 2000-2004.
squeezing out low-quality products. This is a
result of the current move towards energy
efficiency and various customized designs.

TABLE 1-2. GLASS PRODUCTION VOLUME IN 2000-2003. UNITS OF PRODUCTION1

Code Materials and products 2000 2001 2002 2003
730011 Building glass, thousand m2 18148.8 20885.6 23893.8 13941.6
731001 Including window glass, thousand m2 17396.2 20094.2 23208.5 13289.3
731012 Including window gauge glass 23 mm, 0.1 99.4 2414.5 3014.8
thousand m2
731081 Insulating glass units, thousand m2 3.6 13.3 40.6 41.3
731083 Wire glass, thousand m2 195.7 82.8 141.2 216.2
731085 Cathedral glass, thousand m2 476.4 172.2 469.6 377.6
731095 Architectural glass, thousand m2 - - - 0.3
TABLE 1-3. STRUCTURE AND VOLUME OF GLASS PRODUCTION IN 2004. UNITS OF
PRODUCTION
Code Materials and products 2004
26.11.11 Cast, rolled, blown or drawn glass, plate or profiled, not otherwise 9069.4
processed, thousand m2
26.11.12 Float glass and ground or polished glass in sheets, not otherwise 16744.9
processed, thousand m2
26.12.11 Bend plate glass, cut glass, engraved, drilled, enameled or otherwise 685.9
processed glass, however to work “zero-based” unframed or unmounted,
thousand m2
26.12.12 Safety glass (non-splitting glass), thousand m2 360.8
26.12.13.300 Laminated insulating glass products, thousand m2 372.7
26.14.11 Glass fiber bands, roving, yarn, and staple glass fiber, tons 3493.0
26.14.12A Fabrics (veils), thin meshing, web, matting, mattresses, panels, and other 11267.0
glass fiber products, except glass cloth, thousand m2
26.15.11 Bulk glass balls (except micro spheres), rods, and pipes, tons 19359.0
26.15.12A Paving blocks, bricks, tiles, and other pressed or molded glass products, 26.57
stained glass and similar products, laminated glass or foam glass in blocks,
slabs or similar forms, thousand m2

______________________
1
Here and further on: Due to change of Production Classifier in 2004, tables dating before and after the year 2004 are shown
separately.

Prepared by BIZPRO 12
17
Glass production in Ukraine was estimated at imported, including 7.8 million m2 of float glass,
650,000 tons in 2005. Production of float glass 0.7 million m2 of cathedral glass, 247,000 m2 of
and ground/polished glass in Ukraine decreased safety glass, and 658,000 m2 of laminated glass.
by 14.5% to 8.3 million m2 in January-July 2005 This, despite the fact that Ukraine has companies
compared to the same period in the previous year. that make special glazing. Yet glass made by
In July 2005, output decreased by 0.6% year on European manufacturers is used for such glazing
year, to 1.4 million m2, which is 15.3% more than today.
in June 2005.
The country needs about 8.5 million m2 of
Production of cast and rolled glass increased by capacity to replace the old glazing, which causes
3.7% in January-July 2005 year on year, to 5.2 losses of nearly 40% of heat. The lack of special
million m2. Production in July 2005 increased by glass, its high price, the high cost of the
5.9% year on year, to 0.8 million m2, which is equipment needed to produce it —all lead to
2.4% more than in June 2005. The production of imported various types of glass into Ukraine,
glass and glass products should increasingly where customers are frequently unable to select
make use of progressive technology to enhance the glass they need. Architecture today is widely
its socioeconomic benefits for society by using façade glazing; there exist no standards,
improving the sector’s energy-efficiency and however, that would would mandate what is
reducing pollution and waste. required in such glazing.
Glass has become a structural material in its own Key Glass Producers
right and thus introduces unique characteristics
into the design of buildings and structures. Glass production is concentrated in the three
Ukraine, however, does not produce glass with regions: Luhansk, Donetsk, and Lviv. Experts and
decorative, specialized properties. In 2004, for official statistics identify the following main
2
example, 8.4 million m of plate glass were producers on the domestic market:
TABLE 1-4. KEY GLASS PRODUCERS
Producer Region Product
CJSC Lysychansk Proletariy Lysychansk, Luhansk Production of high-quality, thermally-
Glass Plant Oblast polished float glass of grades M1, M2, and
M7 (large size)
Budsklo Ltd. Kostyantynivka, Donetsk Production of lower-quality glass of grades
Oblast M5 and M6 (small size)
OJSC Lviv Mechanical Lviv Production of lower-quality glass of grades
Glass Plant M5 and M6 (small size)
Bucha Glass Products Plant Bucha, Kyiv Oblast Production of cathedral and wire glass
Ltd.

Production of Dry Building Mixtures 2. Domestic production is estimated at 240,000 to

The volume of the dry building mixtures market
was gradually growing in Ukraine in 2001-2005,
with an average annual output increment of about
30%1. However, providing objective statistic that
would characterize the market’s key indicators is
challenging, since the national classifiers (both
foreign-trade and manufacturing classifiers) lack
items that would clearly correspond to the main
types of dry building mixtures. This result is that
importers may import plaster-based dry building
mixtures disguised as cheaper materials—
gypsum or anhydride.
The market’s main features2:
1. The market capacity is estimated at 400,000 to
500,000 tons per year.
320,000 tons annually, with a tripling of the output
within the next five years.
3. High share of imports (more than 35% of the
market in 2003), minor exports.
4. Rapidly dividing market, with more than 150
producers, mainly represented by small
enterprises with primitive technology.
5. The total installed productivity of the leaders is
within 50,000 to 100,000 tons per year, with the
production capacity never used for more than
40%.
6. Market structure: domestic production of basic
mixtures; import of expensive mixtures.
7. Production is hampered by the poor quality of
Ukrainian components.

_______________________
1
http://www.eizvestia.com/?a=article_review&id=16094522
2
“Proizvodstvo stroitelnykh materialov v Ukrainye: obzor strategiy vykhoda na rynok” (Production of Construction Materials in
Ukraine: Review of Market Entry Strategies), National Investment Alliance, February 2005.

Prepared by BIZPRO 13
The dry mixtures market is subdivided into two mixtures. They develop as follows1:
major segments: cement- and plaster-based
TABLE 1-5. CHARACTERISTICS OF DRY MIXTURES MARKET SEGMENTS
Cement mixtures Plaster mixtures
General trends The market increased by an average of Market development has been held
15% in 2002-2004. back by the large volume of gray
Growth potential is limited only by the imports, which resul from inadequate
building industry’s growth rate. sector regulation. These imports lead
to lower surcharges for local
producers.
Market 1. Cement for ceramic tiles (largest
segmentation segment).
2. Floor mixes: about 15% of cement
mixtures.
3. Mixtures for pebble plasterwork: about
5% of cement mixtures, and with the
greatest development potential.
Market capacity About 200,000 tons per year 150,000-160,000 tons per year

Key operators Henkel Bautechnik, Pavlohradzhilstroi Knauf and Lafarge

Import - Large share of imports from Turkey,

Russia, Moldova (mainly Knauf)
FIGURE 1-7. PRODUCTION VOLUME OF DRY BUILDING MIXTURES IN 2001-2005, THOUSAND
TONS

600

500
500 450
400
400

300
220
190
200

100

0
2001 2002 2003 2004 2005

Source: Association of Producers of Dry Building Mixtures

The highest sales dynamics within this segment primer. Brisk demand for the first two categories is
are in such product categories as cement for tiles, due to their low cost, which makes them
gypsum filler and putty, poured flooring, and affordable for lower income customers.

______________________
1
“Proizvodstvo stroitelnykh materialov v Ukrainye: obzor strategiy vykhoda na rynok” (Production of Construction Materials in
Ukraine: Review of Market Entry Strategies), National Investment Alliance, February 2005

Prepared by BIZPRO 14
As regards plaster mixtures, market operators
note that the market was saturated with cheap
Turkish goods and Ukrainian compact gypsum
before 2004. Ukrainian manufacturers, however,
are shifting toward producing higher quality
products that resemble imported ones, and are
moving towards increasing their own share in the
domestic market.
Dry building mixtures are subdivided into plaster
and cement-lime mixes. Based on 2004
production and sales figures, these two types
were split as follows: 55% for cement mixtures,
and 45% for plaster mixtures1.
According to expert estimates2, imports now
account for about 10%-20% or the market and
Ukrainian goods for about 80%-90%.
Professional builders are the main users of dry
building mixtures, accounting for more than 75%
of total consumption.
The key factors affecting the growth of the dry
building mixtures market include:
- growing volumes of building, repair and
renovation work;
- rising cost of materials per unit of finished work,
which results in use of higher-quality materials
and better-quality workmanship;
- the use of modern building systems and
materials with minimal tolerances.

FIGURE 1-8. STRUCTURE OF THE DRY (CEMENT-LIME) BUILDING MIXTURES MARKET

5%
5%

10%
40%

10%

30%

Adhesive mixtures Internal Fillers and Plasters External fillers and plasters

Floor mixes Joint fillers Special mixtures

Key Producers of Dry Building Mixtures them, however, hold minor market shares. Some
15-20 companies comprise the group of major
There are more than 100 domestic producers on producers, and a mere five or six companies
the dry building mixtures market. The majority of occupy the leading positions (Table 1.6).

______________________
1
All-house – Real Estate Information Resources. Budmaterialy vid profesionaliv (Construction Materials from Professionals), 4
November 2005
2
Property Times №3 (54), 1 February 2005

Prepared by BIZPRO 15
 TABLE 1-6. KEY PRODUCERS OF DRY BUILDING MIXTURES
Producer Products
ARTIL Ltd. Artisan TM
Bion-Impeks Ltd. Sim Gnomiv ТМ
Helios Ltd. Ferozit ТМ
OJSC Pavlohradzhytbud Bud Maister ТМ
OJSC Polirem Polirem ТМ
Fomalhaut Ltd. Polimin TM
ТММ (Kharkiv Building Mixtures Plant) Tokan ТМ
Henkel Bautechnik Ukraine Ceresit, Thomsit
TM

The above companies are members of the
Ukrainian Association of Producers of Dry
Building Mixtures.
Brick Production
Brick is a traditional Ukrainian material, which
suits the country’s climatic conditions and is used
for building and finishing. The growing volume of
residential and other building projects is an
important factor driving up brick production
volume and sales. Besides, experts claim, the
“elite” appearance of ceramic bricks testifies to the
building owner’s status. Bricks are therefore
becoming increasingly popular with the most
demanding customers.
The increase in brick production is connected with
growing construction volume. According to the
State Statistics Committee and State Building
Committee, Rynok kirpicha v Ukrainye (Ukrainian
Brick Market) report prepared by Ukrbudmaterialy
Corporation in 2005, the building volume peaked
in 2003-2004 at 122%, which radically boosted
the demand for bricks. Older enterprises resumed
production of bricks. Some of the enterprises have
been modernized. Mostly, such enterprises supply
ceramic bricks within one particular region.
According to statistics, the average annual growth
rate of brick production was 20% during 2000-
2004. The highest growth figures were noted in
2004 and 2003. Growth during each of those
years was 27%.

TABLE 1-7. GROWTH OF BUILDING VOLUME AND BRICK PRODUCTION BY REGION IN

JANUARY-MARCH 2005
Completion of building Value of Commissione Number of plants
projects commissione d building with capacity of
Total Percentage d properties, projects over 5 million
floor vs. last year in million bricks per year
area, euros
thousand
m2
Ukraine 1463.1 117.7 248.7 7287 85
AR Crimea 50.1 81.2 7.6 204 3
Regions:
Vinnytsya Oblast 51.8 100.1 6.6 400 3
Volyn Oblast 20.9 83.1 3.3 137 4
Dnipropetrovs’k 95.6 126.9 12.2 586 3
Oblast
Donetsk Oblast 74.4 115.9 5.5 559 4
Zhytomyr Oblast 37.4 86.7 2.5 237 0
Zakarpatska Oblast 29.3 72.9 3.5 160 2
Zaporizhzhya Oblast 27.6 106.2 2.6 226 1
Ivano-Frankivsk 55.0 91.5 6.3 309 5
Oblast
Kyiv Oblast 122.2 106.8 19.3 515 6
Kirovohrad Oblast 21.6 118.9 1.4 215 1
Luhansk Oblast 56.7 111.5 4.2 462 3
Source: State Statistics Committee and State Building Committee, Rynok kirpicha v Ukrainye (Ukrainian Brick
Market) report prepared by Ukrbudmaterialy Corporation in 2005.

Prepared by BIZPRO 16
 Lviv Oblast 96.3 102.7 8.0 444 12
Mykolaiv Oblast 24.4 106.5 2.0 185 0
Odesa Oblast 83.7 153.6 11.2 302 4
Poltava Oblast 41.0 115.5 5.2 241 6
Rivne Oblast 29.0 102.6 4.1 182 2
Sumy Oblast 19.4 90.5 2.0 175 3
Ternopil Oblast 32.8 93.8 3.8 158 4
Kharkiv Oblast 58.5 82.9 6.3 336 2
Kherson Oblast 37.1 157.7 4.5 228 1
Khmelnytsky Oblast 32.4 78.3 3.6 215 4
Cherkasy Oblast 28.9 94.5 3.4 229 1
Chernivtsi Oblast 42.0 114.8 3.0 251 5
Chernihiv Oblast 20.9 115.7 2.0 172 3
Kyiv City 255.4 3.1 times 110.0 130 2
Sevastopol City 18.7 107.7 5.2 29 1
FIGURE 1-9. BRICK PRODUCTION VOLUME IN 2000-2004, HR MILLION

2500

1921,1
2000

1511,8
1500
Hr million

1185,5
1063,6
1000 883,7

500

0
2000 2001 2002 2003 2004
Source: State Statistics Committee of Ukraine

TABLE 1-8. BRICK PRODUCTION STRUCTURE AND VOLUME IN 2000-2003, PRODUCTION UNITS
Code Materials and products 2000 2001 2002 2003
706000 Building bricks, million equivalent units 2070.4 2047.3 2161.3 2357.9
707112 Including: Cavity and solid bricks and stones 458.5 480.0 506.2 628.4
with density of not more than 1600 kg/m3,
made of clay and lime-sand, million
equivalent units
707132 Finishing bricks, million equivalent units 84.3 97.6 95.7 116.8
707200 Lime-sand and slag bricks, million equivalent 673.5 666.7 699.4 757.6
units
707212 Including: finishing bricks, million equivalent 45.9 44.1 41.7 39.8
units
707220 Of the total volume of building bricks made 304.2 302.7 289.7 305.5
using waste of coal-preparation plants,
million equivalent units

Prepared by BIZPRO 17
 TABLE 1-9. BRICK PRODUCTION STRUCTURE AND VOLUME IN 2004, PRODUCTION UNITS
Code Materials and products 2004
Bricks, blocks, tiles, and other ceramic refractory products (including slabs, 15.9
26.26.11 panels, cavity bricks, cylinders, pipes) made of siliceous stone powder or
dolomite earth, thousand tons
Ceramic refractory bricks, blocks, tiles, and other similar building refractory 724.7
26.26.12 materials, except materials made of siliceous stone powder or dolomite
earth, thousand tons
26.40.11.100A Non-refractory ceramic building bricks, million equivalent units 1828.5
Ceramic bricks and blocks for common brickwork, finished articles, 1603.5
26.40.11.130A perforated or solid, for walls with external plastering or external finishing,
million equivalent units.
Ceramic finishing bricks, finished articles, perforated or solid, for use 224.3
26.40.11.150A
without external plastering, million equivalent units
Ceramic bricks for paving (paving clinker); finished flooring and road- 0.7
26.40.11.170A
paving products, million equivalent units
26.61.11.320A Lime-sand bricks, million equivalent units 865.0
Building blocks and bricks made of cement, artificial stone or concrete, 1648.3
26.61.11.300A
million equivalent units

The brick segment has the following specific
features1:
1. There was an increase in brick production by
7%-18% from 2000-2004.
2. The market, estimates say, will show annual
growth of 8%-10% in 2005-2008.
3. There are about 200 small local producers
operating in the sector.
4. There was been rapid development of
production of high-quality, expensive bricks.
5. There is increasing competition from other
walling materials (gas concrete products).
According to the State Statistics Committee, the
production of non-refractory ceramic building
bricks increased by 3.1% in 2005 compared to
2004, growing to 1,637 million equivalent bricks.
In January-April, output increased by 8.7%
compared to the same period in 2005, reaching
442 million equivalent bricks.
The structure of demand for ceramic and finishing
bricks has been stable in recent years. However,
finishing bricks production volume is insufficient to
satisfy 14% of the market demand (the remaining
86% of the market demand is for ceramic bricks)2.
In view of this fact, the significant shortage of
finishing bricks on the market is compensated for
by improved quality bricks. As cottages, high-rise
apartment buildings, and office and commercial
buildings are the most promising building industry
segments, and the greatest share of finishing
bricks is used for building cottages, it is not
unlikely that the market share of finishing bricks
may well increase in future.
According to data from the Ukrbudmaterialy
Corporation, production of finishing bricks is
underdeveloped in Ukraine when compared to
production of ceramic bricks. It is, however,
developing rapidly. There were about 2.3 million
ceramic bricks and only 173 million finishing
bricks produced in 2004.

TABLE 1-10. PRODUCTION DYNAMICS OF FINISHING AND CERAMIC BRICKS IN 2002-2004,

MILLION BRICKS
2002 2003 2004
Ceramic bricks 1875.2 2091.8 2342.82
Finishing bricks 97 121 173

Key Brick Producers The following brick market leaders should be

noted:
More than 300 producers operate on the
Ukrainian brick market.

_____________________
1
“Proizvodstvo stroitelnykh materialov v Ukrainye: obzor strategiy vykhoda na rynok” (Production of Construction Materials in
Ukraine: Review of Market Entry Strategies), National Investment Alliance, February 2005.
2
Data by State Statistics Committee and State Building Committee, Rynok kirpicha v Ukrainye (Ukrainian Brick Market) report
prepared by Ukrbudmaterialy Corporation in 2005.

Prepared by BIZPRO 18
 TABLE 1-11. KEY PRODUCERS OF CERAMIC BRICKS1
Producer Region 2004, million bricks 2005, million bricks
Finishing Building Total Finishin Building Total
bricks bricks g bricks bricks
Slobozhanska Romny, Sumy 52 7 59 51 6 57
Keramika (SBK) Oblast
Slobozhanska Kharkiv 15 9 24 22 7 29
Keramika (SBK)
Novy Rozdil Lviv Oblast 32 28 60 32 28 60
KeramikBudServis Ivano-Frankivsk 10 20 30 14 16 30
Oblast
Mukacheve Zakarpatska 9 3 12 10 3 13
Oblast
Artemivsk Donetsk Oblast 9 6 15 9 6 15
Ceramic Pipes
Plant
Keramik Donetsk Oblast 15 10 25 15 10 25
Azot Luhansk Oblast 15 15 15
Novooleksandrivs Dnipropetrovsk 27 27 27 27
ky Oblast
Ocheretynsky Donetsk Oblast 7 13 20 15 5 20
Bilotserkivsky Kyiv Oblast 30 30 30 30
Korchevatsky Kyiv Oblast 30 30 5 26 31
Fagot Luhansk Oblast 60 60 60 60
Total 209 198 407 233 179 412

Other Ukrainian producers also include:
- Kolomyya Construction Materials Plant Authority
(Ivano-Frankivsk Oblast), which has a production
capacity of 80 million bricks (operated at full
capacity in 2004; produces ceramic bricks)2;
- Chernivtsi Brickmaking Plant No.3 (Chernivtsi),
production capacity 60 million bricks (produced 42
million bricks in 2004; makes ceramic bricks);
- Irpin’ Progres Integrated Works (Kyiv Oblast);
production capacity 32 million bricks (produced 32
million bricks in 2004; produces ceramic bricks);
- Lutsk Brickmaking Plant (Volyn Oblast);
production capacity 31 million bricks (operated at
full capacity in 2004; produces ceramic bricks);
- OJSC Keramik (Vinnytsya Oblast); production
capacity 50 million (produced 30 million bricks in
2004; makes ceramic bricks);
- Khmelnytsky Construction Materials Plant
(Khmelnytsky Oblast); production capacity 70
million bricks (produced 29 million bricks in 2004;
makes ceramic bricks);
- Snityn Brickmaking Plant (Ivano-Frankivsk
Oblast); production capacity 30 million bricks
(produced 27 million bricks in 2004; makes
ceramic bricks);
- CJSC Promin’ (Kyiv); production capacity 30
million bricks (22 billion bricks produced in 2004;
makes ceramic bricks);
- OJSC Budmaterialy (Ivano-Frankivsk Oblast);
production capacity 46 million bricks (23 million
bricks produced in 2004; makes ceramic bricks);
- OJSC Keramik (Ternopil Oblast); production
capacity 23 million bricks (produced 21 million
bricks in 2004; makes ceramic bricks);
- OJSC Chernivtsi Brickmaking Plant No.1;
production capacity 36 million bricks (produced 20
million bricks in 2004; makes ceramic bricks);
- OJSC Zdolbuniv Construction Materials Plant
(Rivne Oblast); production capacity 56 million
bricks (19 million bricks produced in 2004; makes
ceramic bricks);
- OJSC Rivne Building Materials Plant, production
capacity 33 million bricks (produced 18 million
bricks in 2004; makes ceramic bricks).
The following companies should be noted among
the producers of lime-sand bricks:

_____________________
1
“Proizvodstvo stroitelnykh materialov v Ukrainye: obzor strategiy vykhoda na rynok” (Production of Construction Materials in
Ukraine: Review of Market Entry Strategies), National Investment Alliance, February 2005
2
Rynok tsehly v Ukrayini v 2005 rotsi (Ukrainian Bricks Market in 2005), Ukrbudmaterialy Corporation

Prepared by BIZPRO 19
 TABLE 1-12. KEY PRODUCERS OF LIME-SAND BRICKS
Producer
Darnytsya Integrated Works of Construction
Materials and Structures, OJSC
Ladyzhyn Lime-Sand Brickmaking Plant, OJSC
Lyubomyrsky Lime-Silicate Plant, OJSC
Sylikatobeton Plant
JSC Tsehla Trypillya
Chernihiv Construction Materials Plant, Ltd.
The trend toward regular price hikes is standard
for the industry1. Producers justify such price
increases by citing rising gas and electricity
prices. (Gas and electric power account for up to
40% of the prime cost of bricks. Some 15% of the
cost is for clay, and 10% to 15% of the cost is for
labor).
The increase of brick prices was also significantly
caused by growing demand. Experts believe that
the present demand structure is encouraged by
changes in the technology in building multistory
buildings, and primarily by the wish to abandon
bearing-wall structures for monolithic and frame
structures, the external walls of which are made of
bricks. This has resulted in the annual demand for
bricks on the part of the Kyivmiskbud Holding
Company increasing from 120,000 to 200,000
bricks year on year (according to 2004 data).
The main market risk is that the brick production
output in Ukraine is increasing at a much slower
pace than demand. The enterprises, which are
prepared to increase production, have suddenly
faced a problem of bureaucratic nature. Due to
restructuring of departments within the Ministry of
Ecology, which issues permits for extraction of
mineral resources, the companies could not
obtain licenses for clay extraction. Besides, taking
into account that many brickmaking enterprises
were looted by shareholders for metal scrap in
1990s, the industry’s ability to sustain the building
boom in Ukraine seems doubtful.
The best approach the builders have found so far
is to expand their so-called “raw materials area.”
For example, Kyivmiskbud started buying ceramic
(red) bricks beyond Kyiv Oblast, which it has
never done before due to the relatively high
transportation costs. Today, the company is
bringing ceramic bricks from Zhytomyr, Chernihiv,
and Pryluky. It is also looking to transport bricks
from Poltava Oblast by rail. As for expensive
finishing bricks, they are brought to Kyiv from the
____________________
1
The Kontrakty Ukrainian business weekly / No. 19 of 10 May 2004.
Prepared by BIZPRO
Region Product
Kyiv Lime-sand bricks
Ladyzhyn, Vinnytsya Oblast Lime-sand bricks
Village Nova Lyubomyrivka, Lime-sand bricks
Rivne Rayon, Rivne Oblast
Sumy Lime-sand bricks
Obukhiv, Kyiv Oblast Lime-sand bricks
Chernihiv Lime-sand bricks
remotest corners of Ukraine and imported in small
batches.
At the same time, launching their own production
facilities appears to be an unacceptable choice for
builders. Kyivmiskbud has been hampered by a
lack of specialists familiar with brickmaking
equipment and modern technology. This has
raised concerns as to the competitiveness of their
own facility as compared with “outsiders.”
Real estate experts indicate that building
companies are exploiting the shortage and rising
brick prices to boost prices of new construction.
Brick shortages might also be a reason that some
building companies aren’t keeping their project
commissioning deadlines. It is not unlikely that
given today’s market conditions, quite a few
provincial brickyards, now operating at half-
capacity, could find a chance to restore their
fortunes.
Production of Ceramic Products
The market for ceramic products is exciting, due
to the variety of products available and the
multitude of decorative opportunities they afford.
Based on State Statistics Committee data, peak
output growth of 240% was observed in 2004.
This was due to increased production, including
export production (which increased by 47%), and
to implementation of repair work.
According to preliminary data, production of
ceramic slabs and tiles increased by 19.4% in
2005, to 19,933,200 m2. In January-April 2006,
production of ceramic slabs and tiles increased by
1.5% compared to January-April 2005, to
6,546,000 m2.
The Kharkivska Keramika Company is the largest
manufacturer of ceramic tiles in Ukraine,
producing about 70% of Ukrainian tiles.
20
Key Producers
There are few producers of ceramic ware in
Ukraine. According to statistics, only 40
companies were involved in this segment as their
core activity at the end of 2004. Twelve
companies reported being engaged in tile
production in 2003-2005. However, the main
volume of products (about 99%) was
FIGURE 1-10. DYNAMICS OF CERAMIC WARE PRODUCTION VOLUME IN 2000-2004, HR MILLION
manufactured by seven companies in 2004 (see
table below). Such companies as Kharkivska
Keramika Ltd. (the successor toOJSC Kharkiv Tile
Plant) and Atem Ltd. are boosting production. A
new player, CJSC Zevs Keramika, based in
Donetsk, entered the market in 2005. The
company accounted for up to 10% of domestic tile
output in 2005.

450

395.3
400

350

300
Hr million

250

200
165.2
142.1
150 132
104.6
100

50

0
2000 2001 2002 2003 2004

Source: State Statistics Committee of Ukraine

TABLE 1-13. CERAMIC WARE PRODUCTION STRUCTURE AND VOLUME IN 2000-2003,

PRODUCTION UNITS
Code Materials and products 2000 2001 2002 2003
715001 Glazed ceramic tiles for interior walls with 6563.5 6879.5 7173.4 8929.8
profiled parts, thousand m2
715005 Glazed ceramic tiles for interior walls, 5905.1 6162.8 6615.9 7376.4
color, glazed, thousand m2
715121 Ceramic floor tiles, thousand m2 1734.9 2563.0 2630.7 2547.2
715126 Large-sized floor ceramic tiles (face length 1734.9 2563.0 2630.7 2547.2
150 mm and more), thousand m2
715131 Multicolor ceramic façade tiles, thousand 413.2 94.7 42.1 27.9
m2
715141 Ceramic sewer pipes, equivalent km, 200 - 8.0 10.0 3.0
mm diameter
716131 Lime-silica products, m3 1960.0 4083.0 3876.0 1817.0

Prepared by BIZPRO 21
 TABLE 1-14. CERAMIC WARE PRODUCTION STRUCTURE AND VOLUME IN 2004, PRODUCTION
UNITS
Code Materials and products 2004
26.26.10 Refractory products, thousand tons 1351.7
Other ceramic refractory products, unfired; commercial-grade ceramic 348.6
26.26.14
refractory products, not included in other categories, thousand tons
26.30.10 Ceramic slabs and tiles, thousand m2 16972.4
Other non-refractory building ceramic wares, including deflectors, bricks for 0.2
26.40.12.700 chimneys, caps for chimneys, architectural decorations, fan grills, thousand
tons
Ceramic pipes, pipelines, water removal lines, drainage piping, ducts and 0.2
26.40.13
connecting pieces for pipes, thousand tons

Based on performance results and according to the following key producers can be noted:
the Statistical Classification of Products (SCP),
TABLE 1-15. KEY PRODUCERS
Producer Region Product
OJSC Zaporizhzhya Ceramic refractory products
ZAPORIZHVOHNETRYV
OJSC PANTELEIMONIVKA Urban-type settlement Ceramic refractory products
REFRACTORY PLANT Panteleimonivka, Horlivka, Donetsk
Oblast
OJSC CHASIV YAR CHASIV YAR, DONETSK OBLAST Ceramic refractory products
INTEGRATED
REFRACTORY PLANT
OJSC KRASNOHORIVKA KRASNOHORIVKA, MARYINSKY Ceramic refractory products
REFRACTORY PLANT RAYON, DONETSK OBLAST
OJSC VELYKOANADOLSKY URBAN-TYPE SETTLEMENT Ceramic refractory products
INTEGRATED VOLODYMYRIVKA, VOLNOVASKY
REFRACTORY WORKS RAYON, DONETSK OBLAST
OJSC KRASNOARMIYSK KRASNOARMIYSK, DONETSK Ceramic refractory products
SILICA PLANT OBLAST
OJSC KINDRATIVSKY URBAN-TYPE SETTLEMENT Ceramic refractory products
REFRACTORY PLANT OLKSIYIVO-DRUZHKIVKA,
DRUZHKIVKA, DONETSK OBLAST
CALDERIS UKRAINA LTD URBAN-TYPE SETTLEMENT Ceramic refractory products
VOLODYMYRIVKA, VOLNOVASKY
RAYON, DONETSK OBLAST
OJSC TECHMET DONETSK Ceramic refractory products
SCIENTIFIC AND
PRODUCTION
ENTERPRISE
SIVERSKY DOLOMIT LTD SIVERSK, ARTEMIVSKY RAYON, Ceramic refractory products
DONETSK OBLAST
DONBAK-MIKS INDUSTRIAL DONETSK Ceramic refractory products
AND COMMERCIAL
COMPANY LTD
CJSC BILOKAMENSKI SOLEDAR, DONETSK OBLAST Ceramic refractory products
REFRACTORIES
SE CJSC IZOSEV-1 IZOSEV SIVERSK, ARTEMIVSKY RAYON, Ceramic refractory products
DONETSK OBLAST
KALTOP ENTERPISE LLC DONETSK Ceramic refractory products
MYKHAILIVSKE SETTLEMENT MYKHAILIVSKE, Ceramic refractory products
REFRACTORIES PLANT KRASNOPILSKY RAYON, SUMY
OBLAST
FEMATEK-UKRAYINA LTD DNIPROPETROVSK Ceramic refractory products
OGNEUPOR-M SCIENTIFIC DNIPROPETROVS’K Ceramic refractory products
AND PRODUCTION
CENTER LTD

Prepared by BIZPRO 22
 Producer Region Product
CJSC YASYNUVATA YASYNUVATA, DONETSK Ceramic refractory products
REINFORCED CONCRETE OBLAST
PLANT
TAYIS PRIVATE SETTLEMENT Ceramic refractory products
ENTERPRISE KHRYSTOFORIVKA,
KRYVORIZKY RAYON,
DNIPROPETROVS’K OBLAST
OJSC KHRYSTOFORIVKA SETTLEMENT Ceramic refractory products
REFRACTORY BLOCKS KHRYSTOFORIVKA,
AND CONCRETE PLANT KRYVORIZKY RAYON,
DNIPROPETROVS’K OBLAST
ZIRCON REFRACTORY VILNOHIRSK, Ceramic refractory products
PLANT LTD DNIPROPETROVS’K OBLAST
OJSC MAIDAN-VYLSKY VILLAGE MYKHAILYUCHKA, Ceramic refractory products
INTEGRATED SHEPETIVSKY RAYON,
REFRACTORY WORKS KHMELNYTSKY OBLAST
CJSC KERAMPERLIT Kyiv Ceramic refractory products
PLANT
BURTYN REFRACTORIES VILLAGE BURTYN, POLONSKY Ceramic refractory products
PLANT COLLECTIVE RAYON, KHMELNYTSKY OBLAST
ENTERPRISE
POLONNE DECORATIVE POLONNE, KHMELNYTSKY Other ceramic ware
CERAMICS PLANT OBLAST
SE BUDSERVIS, OJSC VILLAGE ROZVADIV, Other ceramic ware
ROZVADIVBUDMATERIALY MYKOLAYIVSKY RAYON, LVIV
OBLAST
CJSC SLAVUTA SLAVUTA, KHMELNYTSKY Ceramic sanitary ware
BUDFARFOR INTEGRATED OBLAST
WORKS
DNIPROKERAMIKA LTD POLOHY, ZAPORIZHZHYA Ceramic sanitary ware
OBLAST
KERAMLINE LTD DRUZHKIVKA, DONETSK OBLAST Ceramic sanitary ware
KHARKIVSKA KERAMIKA KHARKIV Ceramic tiles
LTD
CJSC LVIV CERAMICS LVIV Ceramic tiles
PLANT
CJSC ZEVS KERAMIKA SLOVYANSK, DONETSK OBLAST Ceramic tiles
ЗА Т "ЗЕВС КЕРАМІКА"
CJSC WITH FOREIGN KYIV Ceramic tiles
INVESTMENTS
“PIASTRELLA-K” "
NOTA KERAMIKA PRIVATE DNIPROPETROVSK Ceramic tiles
ENTERPRISE
KARPATSKA KERAMIKA KALUSH, IVANO-FRANKIVSK Ceramic tiles
LTD OBLAST
MAKROINDUSTRIA LTD DNIPROPETROVSK, SAMARSKY Ceramic tiles
WITH FOREIGN RAYON
INVESTMENTS
SE OJSC CONSTRUCTION VILLAGE ZAGVIZDYA, Ceramic tiles
MATERIALS ZAGVIZDYA TYSMENYTSKY RAYON, IVANO-
DALLE FRANKIVSK OBLAST
CHMP FAGOT LUHANSK OBLAST Ceramic tiles
VELES INDUSTRIAL AND DONETSK Ceramic tiles
TRADE COMPANY LTD
OJSC MONASTYRYSKA MONASTYRYSKA, Ceramic tiles
CONSTRUCTION MONASTYRYSKY RAYON,
MATERIALS PLANT TERNOPIL OBLAST
AUTHORITY

Prepared by BIZPRO 23
Production of Cement, Concrete, Lime, and
Plaster
The cement industry has the following
characteristic features1:1. Its existing production
capacity is underused.
2. Some 60% of cement production is controlled
by foreign companies: Lafarge, Heidelberg and
Dyckerhoff.
3. Output increased by 20% in 2004, with
estimated growth of 25% for 2005.
4. Market structure in 2004 broke down thus:
export 10%; domestic consumption 90%; no
imports.
5. Existing duties prevent imports from Russia.
6. Prices increased by 20% in 2004, due to
growing demand and increase in production costs.
In the opinion of experts, cement plants are
attractive assets at the moment. As building
volume grows, it requires growth in the building
industry’s base sector. Ukrainian cement plants
increased their output by 13.4% to 12.144 million
tons in 2005.
The cement production leaders, both in 2005 and
in 2004, included OJSC Balcem, which produced
2.129 million tons of cement (21.4% more than in
2004); OJSC Podolcement (Khmelnytsky Oblast),
which increased production by 3.4%, to 1.856
million tons; and OJSC Kryvyi Rih – Cement
_____________________
1
“Proizvodstvo stroitelnykh materialov v Ukrainye: obzor strategiy vykhoda na rynok” (Production of Construction Materials in
Ukraine: Review of Market Entry Strategies), National Investment Alliance, February 2005
2
Daidzhest torhovtsya budivelnymy materialamy (Construction Materials Trader’s Digest) / pau.kiev.ua
Prepared by BIZPRO
(Dnipropetrovs’k Oblast), which increased
production by 5%, to 1.4 million tons2. The highest
output growth rates in 2005 were registered by the
following companies, which resumed operation in
2004: Cement Donbasu Ltd., which produced
210,000 tons of cement, nearly tripling the
previous year’s output; and OJSC Volyn-Cement
(Rivne Oblast), which boosted cement output by
35.6%, to 1.37 million tons. Also deserving of
citation is OJSC Dniprocement (Dnipropetrovs’k
Oblast), which produced 546.6 million tons of
cement, or 25.5% more than in the previous year.
According to the Ukrcement industry association,
the total capacity of all cement plants was
21,102,000 tons as of April 1, 2006. There were
12,144,000 tons produced in 2005, which
amounts to 57.5% of total capacity.
Statistics show an average annual increase of
cement, concrete, plaster, and lime output of
about 30% in 2000-2004. Some slowing of the
growth rate was recorded in 2002 and 2003, with
only 19%, vs. 26% in previous years. According to
Ukrcement, production of cement increased by
14.6% in 2005 against 2004, to 12,183,000 tons;
and by 7.6% in January-May 2005 compared to
the same period in 2005, to 4.31 million tons.
Key Producers of Cement, Concrete, Lime,
and Plaster
As of the first half of 2005, there were 32
enterprises with core activity in this sector. The
leading enterprises are listed in Table 1.16.
24
 FIGURE 1-11. CEMENT, LIME, AND PLASTER PRODUCTION VOLUME IN 2000-2003, HR MILLION

26111,4
120749,0
19148,9

17551,4 105856,1
Hr million

102430,4
13618,4
108856,3 1434611,1
1138336,0
926295,3
642118,6

2000 2001 2002 2003

Cement Lime Plaster

Source: State Statistics Committee of Ukraine

TABLE 1-16. CEMENT, LIME, AND PLASTER PRODUCTION STRUCTURE AND VOLUME IN 2000-
2003, PRODUCTION UNITS
Code Materials 2000 2001 2002 2003
702000 Cement, thousand tons 5311.4 5786.3 7156.5 8922.7
702002 Including: cement made of clinker produced with 1365.1 1385.4 1304.9 1635.9
energy-saving technology, thousand tons
702004 Including cement made using “dry” process, thousand 1365.1 1385.4 1304.9 1635.9
tons
702013 Of total cement: grade 300 cement, thousand tons 0.7 0.2 16.5 -
702014 Grade 400 cement, thousand tons 4331.8 4729.5 5609.3 7097.6
702015 Grade 500 cement, thousand tons 748.3 750.8 1203.0 1628.4
702016 Grade 550 cement, thousand tons - - 0.2 0.2
702017 Grade 500 cement, thousand tons 0.2 0.2 0.5 0.3
702101 Of total cement: Portland cement, thousand tons, total 4236.4 4478.6 5375.8 6954.4

702111 Slag Portland cement, thousand tons, total 1039.6 1254.9 1739.0 1967.3
703110 Portland cement (without additives), thousand tons 354.3 331.1 652.9 935.2
703130 Portland cement for making asbestos cement products, 500.1 528.9 623.0 686.6
thousand tons
703140 Sulfate resistant Portland cement (including that with 6.1 14.3 11.1 27.8
barium), thousand tons
703150 Portland cement with mineral additives, thousand tons 2958.7 3505.2 3869.6 5062.0
703160 Rapid-hardening Portland cement, thousand tons 388.6 77.2 190.5 215.2
703170 Road Portland cement, thousand tons 10.7 17.5 17.9 4.1
703240 Common slag Portland cement, thousand tons 1011.0 1208.0 1649.4 1780.5
703250 Sulfate resistant slag Portland cement, thousand tons 28.6 47.0 89.7 186.8
703330 Alumina cement, thousand tons 0.5 0.4 0.5 0.8
703340 Expanding cement, thousand tons 0.1 0.1 0.2 0.2
703360 Oil-well cement, thousand tons 46.6 49.4 43.5 13.8
703490 Other cement types (for casting of concrete without 5.1 7.2 5.4 9.7
forms, etc.), thousand tons
703500 Calibrated cement, thousand tons 766.6 669.2 1075.3 1521.5
705001 Building lime, thousand tons 581.1 506.5 531.9 594.6
705011 Production lime, thousand tons 3050.3 3433.6 3924.2 4301.3
705012 Including production lime for making construction 220.6 219.3 207.3 223.8
materials, thousand tons
705021 Plaster stone, thousand tons 304.8 378.8 429.4 709.7
705041 Plaster, thousand tons 119.0 151.1 206.9 264.3
705052 Including building plaster, thousand tons 104.7 138.9 192.5 248.1
705053 Casting plaster, thousand tons 7.7 8.0 11.5 13.7

Prepared by BIZPRO 25
 TABLE 1-17. CEMENT, CONCRETE, LIME, AND PLASTER PRODUCTION STRUCTURE AND
OUTPUT IN 2004
Production Hr million
Code Materials
units
14.12.10.300 Plaster and anhydrite (natural or synthetic), thousand tons 1153.8 20828.5
14.12.10.500 Limestone (except crushed limestone filler and limestone 21275.0 300202.0
cut to measure), thousand tons
14.12.20.300 Uncalcined dolomite (except crushed dolomite filler), 10.8 379.2
thousand tons
14.12.20.500 Calcined and fired dolomite, thousand tons 243.0 114277.7
14.12.20.700 Agglomerated dolomite (including petrolized dolomite), 1130.8 16060.8
thousand tons
26.26.13 Refractory cement, mortar, concrete, and similar mixtures, 262.5 62914.6
thousand tons
26.63.10 Ready-mixed concrete, thousand tons 9273.9 655573.8
26.64.10 Building mortar and concrete, except ready-mixed concrete, 2231.2 310917.6
thousand tons
26.51.12 Cement, thousand tons 10647.8 1606848.0
26.52.10 Lime, thousand tons 5243.0 130853.0
26.53.10 Plaster mixes, thousand tons 155.8 49672.0
TABLE 1-18. KEY PRODUCERS OF CEMENT, CONCRETE, LIME, AND PLASTER
Producer Region Product
OJSC Dniprocement (owned by Dniprodzerzhinsk, Production of cement
Heidelberg Cement, Germany) Dnipropetrovs’k Oblast
Dnipropetrovs’k Cement Plant Village Partyzanske, Production of cement
Dnipropetrovs’k Rayon,
Dnipropetrovs’k Oblast
CJSC BAKHZHYSARAI BAKHCHYSARAI, Production of cement
BUDINDUSTRIA INTEGRATED BAKHCHYSARAI RAYON,
WORKS AR CRIMEA
OJSC Yenakiyeve Cement Plant Yenakiyeve, Donetsk Production of cement
Oblast
Kramatorsk Pushka Plant Kramatorsk, Donetsk Production of cement
Oblast
Doncement (owned by Heidelberg Urban-type settlement Production of cement
Cement, Germany) Novoamvrosiyivske,
Amvrosiyivsky Rayon,
Donetsk Oblast
Cement Donbasu Ltd. (owned by YENAKIYEVE, DONETSK Production of cement
Heidelberg Cement, Germany) OBLAST
CEMLINE LTD UKRAYINKA, OBUKHIV Production of cement
RAYON, KYIV OBLAST
Kryvyi Rih Cement Plant (owned by Kryvyi Rih, Dnipropetrovsk Production of cement
Heidelberg Cement, Germany) Oblast
Kharkiv Experimental Cement Plant Kharkiv Production of cement
Balcem (owned by Balakliya, Balakliya Rayon, Production of cement
EUROCEMENTGrop, Russia) Kharkiv Oblast
Ivano-Frankivskcement Ivano-Frankivsk Production of cement
Mykolaivcement (owned by Lafarge, Mykolaiv, Mykolaiv Rayon, Production of cement
France) Lviv Oblast
Volyn Cement (owned by Zdolbuniv, Rivne Oblast Production of cement
Dickerhoff-Ukraine)
Podilsky Cement (owned by CRH, Village Humentsi, Production of cement
Ireland) Kamyanets-Podilsky
Rayon, Khmelnytsky Oblast
Kyivcement (owned by Dickerhoff- Kyiv Production of cement
Ukraine)
Odesa Cement Plant Odesa Production of cement

Prepared by BIZPRO 26
 Producer Region Product
Yug Cement (owned by Dickerhoff- Urban-type settlement Production of cement
Ukraine) Vilshanske, Mykolaiv
Rayon, Mykolaiv Oblast
OJSC Kramatorsk Cement and Kramatorsk, Luhansk Production of cement and clinker
Slate Integrated Works (owned Oblast
EUROCEMENTGroup, Russia)
OJSC Kryvyi Rih Cement and Kryvyi Rih, Dnipropetrovsk Production of cement and clinker
Mining Integrated Works Oblast
Knauff Gips Donbas Ltd. SOLEDAR, DONETSK Production of plaster
OBLAST
CJSC STROMGIPS FIRM ARTEMIVSK, DONETSK Production of plaster
OBLAST
OJSC KAMYANETS-PODILSKY KAMYANETS-PODILSKY, Production of plaster
GIPSOVYK KHMELNYTSKY OBLAST
AKS I K MANUFACTURING AND DNIPROPETROVSK Production of plaster
COMMERCIAL FIRM LTD
OJSC MYKYTIVSKY ALABASTER HORLIVKA, DONETSK Production of plaster
INTERGRATED WORKS OBLAST
OJSC Mamalyhivsky Plaster Plant Chernivtsi Oblast Production of plaster
OJSC Slovyansk Chalk and Lime Slovyansk Production of lime
Plant
OJSC Lyubomyr Lime and Silicate Lyubomyr Production of lime
Plant
OJSC Zaporizhzhya Construction Zaporizhzhya Production of lime
Materials Plant
LETAN PRODUCTION AND DNIPROPETROVSK Production of lime
COMMERCIAL FIRM LTD
CJSC INDUSTRIA URBAN-TYPE Production of lime
SETTLEMENT
KUSHUHUM,
ZAPORIZHZHYA RAYON,
ZAPORIZHZHYA OBLAST
AZOVBUDMATERIALY MARIUPOL, DONETSK Production of lime
COLLECTIVE ENTERPRISE FIRM OBLAST
LIME FACTORY LTD DNIPROPETROVSK Production of lime
OJSC PRYBORZHAVSKE VILLAGE Production of lime
CONSTRUCTION MATERIALS PRYBORZHAVSKE,
PLANT AUTHORITY IRSHAVA RAYON,
ZAKARPATSKA OBLAST
HALPROMTEKS COMPANY LTD ROHATYN, ROHATYN Production of lime
RAYON, IVANO-
FRAMKIVSK OBLAST
OJSC PUSTOMYTY LIME PLANTS POSTOMYTY, Production of lime
AUTHORITY PUSPOMYTY RAYON,
LVIV OBLAST
KVADRO-L LTD VILLAGE ROZVADIV, Production of lime
MYKOLAIV RAYON, LVIV
OBLAST
OJSC PODILSKI TOVTRY VILLAGE VERBKA, Production of lime
KAMYANETS-PODILSKY,
KHMELNYTSKY OBLAST
BILOKRYNYTSKY LIME PLANT URBAN-TYPE Production of lime
LTD SETTLEMENT
KARYERNE,
VELYKOOLEKSANDRIVS
KY RAYON, KHERSON
OBLAST
VAPNYARKA PRIVATE VILLAGE NAVARIA, Production of lime
ENTERPRISE PUSTOMYTY RAYON,
LVIV OBLAST

Prepared by BIZPRO 27
 Producer Region Product
SE BILOKRYNYTSKY LIME URBAN-TYPE Production of lime
PLANT SETTLEMENT
KARYERNE,
VELYKOOLEKSANDRIVS
KY RAYON, KHERSON
OBLAST
CJSC FORUM-DS KYIV Production of ready-mixed
concrete
PIDRYAD LTD VYSHNEVE, KYIV Production of ready-mixed
OBLAST concrete
OJSC ASPHALT CONCRETE KHUTIR OSTRIV, Production of ready-mixed
PLANT HOLOSIYIVSKY RAYON, concrete
KYIV
KOMFORTBUD-1 BUILDING LVIV Production of ready-mixed
COMPANY LTD concrete
OJSC REINFORCED CONCRETE KYIV Production of ready-mixed
AND ROAD BUILDING concrete
MATERIALS PLANT
S.K.S.M. LTD KHARKIV Production of ready-mixed
concrete
AGROPROMSHLYAKHBUDINDUS VINNYTSYA Production of ready-mixed
TRIA COLLECTIVE ENTERPRISE concrete
FIRM
KOMPLEKT LTD MARIUPOL, DONETSK Production of ready-mixed
OBLAST concrete
BETONIKS PRODUCTION AND KHARKIV Production of ready-mixed
COMMERCIAL ENTERPRISE LTD concrete
CJSC BETONEKS URBAN-TYPE Production of ready-mixed
SETTLEMENT concrete
VELYKODOLYNSKE,
OVIDIOPOL RAYON,
ODESA OBLAST
OJSC TERNOPIL ROAD URBAN-TYPE Production of ready-mixed
BUILDING MATERIALS SETTLEMENT VELYKA concrete
INTEGRATED WORKS BEREZOVYTSYA,
TERNOPIL RAYON,
TERNOPIL OBLAST
SATURN PK LTD KYIV Production of ready-mixed
concrete
DNIPROBUDKOMPLEKT DNIPROPETROVSK Production of ready-mixed
SCIENTIFIC AND PRODUCTION concrete
ENTERPRISE LTD
LVIV CONCRETE PLANT LVIV Production of ready-mixed
PRODUCTION ENTERPRISE LTD concrete
BETON-SERVIS LTD ODESA Production of ready-mixed
concrete
PE AVROSHLYAKHBUD-SAA MYKOLAIV Production of ready-mixed
BUILDING FIRM concrete
NOVODNISTROVSK CONCRETE NOVODNISTROVSK, Production of ready-mixed
AND MORTAR PLANT LTD CHERNIVTSI OBLAST concrete
INZHPROMBUDSERVIS FASTIV, KYIV OBLAST Production of ready-mixed
PRODUCTION LTD concrete
BUDMATERIALY PLUS LTD DNIPROPETROVSK Production of ready-mixed
concrete
CJSC DNIPROSPETSBUD ZAPORIZHZHYA Production of ready-mixed
concrete
FASAD LTD RIVNE Production of ready-mixed
concrete
STANDARD-IF COMMERCIAL IVANO-FRANKIVSK Production of ready-mixed
ENTERPRISE LTD concrete

Prepared by BIZPRO 28
 Producer Region Product
PE ASFALT VILLAGE MARYANIVKA, Production of ready-mixed
KRYVYI RIH RAYON, concrete
DNIPROPETROVSK
OBLAST
CJSC ASFALTOBETON MYKOLAIV Production of ready-mixed
concrete
ENERGETYK LTD KHARKIV Production of ready-mixed
concrete
OJSC VINNYTSYA ASPHALT VINNYTSYA Production of ready-mixed
CONCRETE PLANT concrete
TMM-BUDKOMPLEKT LTD KYIV Production of ready-mixed
concrete
SE BUDSUMISHI, OJSC ZHYTOMYR Production of ready-mixed
ZHYTOMYRINVEST FIRM concrete
ROSTA LTD KHARKIV Production of ready-mixed
concrete
KHARKIVBETON LTD KHARKIV Production of ready-mixed
concrete
CJSC BIAS ZAPORIZHZHYA Production of ready-mixed
concrete
BUDEKSTRA COMMERICLA AND LVIV Production of ready-mixed
PRODUCTION PRIVATE FIRM concrete
PE GAMA-TEKHNIKA KHMELNYTSKY Production of ready-mixed
concrete
OJSC CHERKASY ASPHALT CHERKASY Production of ready-mixed
CONCRETE PLANT concrete
BALANS SMALL ENTERPRISE PERVOMAISK, LUHANSK Production of ready-mixed
OBLAST concrete
DORSTROI LTD DONETSK Production of ready-mixed
concrete
MONOLITBETON LTD KRYVYI RIH, Production of ready-mixed
DNIPROPETROVSK concrete
OBLAST
LANIVTSI ASFALTBUD LTD LANIVTSI, LANIVTSI Production of ready-mixed
RAYON, TERNOPIL concrete
OBLAST
OJSC PIVDEN ASPHALT CHERKASY Production of ready-mixed
CONCRETE PLANT concrete
CJSC RAYAGROBUD BALAKLIYA, BALAKLIYA Production of ready-mixed
RAYON, KHARKIV concrete
OBLAST

Production of Concrete, Cement, and Plaster
Products
The highest growth rate in concrete production
was recorded in 2004, when it nearly tripled. This
rapid growth rate was in part catalyzed by foreign
direct investmentsin this segment in 2003 and
2004. This investment totaled Hr7.9 million, which
The production of concrete blocks is characterized
by the following features (“Proizvodstvo
stroitelnykh materialov v Ukrainye: obzor strategiy
vykhoda na rynok” (Production of Construction
Materials in Ukraine: Review of Market Entry
Strategies), National Investment Alliance,
February 2005):
1. Market growth of 10-12% in 2003-2004.
2. A production capacity that has risen
considerably.
is 43 times as much as was invested in 2001 and
2002. In 2001, investments had a negative value
Hr 0.8 million. In other words, foreign investors
withdrew part of their investment. This had an
effect on the production growth rate, which saw a
4% increase in 2001 compared to 2000. The 2003
growth rate was 26%.
3. Actual productivity of not more than 50% the
rated level, given obsolete equipment.
4. Actual production is about 10%-12% of installed
productivity.
5. Plants are located uniformly around the
country.
6. Production is complicated by poor supplies of
crushed rock aggregate.

Prepared by BIZPRO 29
 FIGURE 1-12. PRODUCTION OF CONCRETE, CEMENT, AND PLASTER PRODUCTS IN 2000-2004,
HR MILLION
299,6
Hr million

99,1
77,5
53,2
31,5 3071,2

1975,2
1464,0 1544,6
1203,5

2000 2001 2002 2003 2004

Production of plaster products
Production of concrete, cement, and building mixtures products
Source: State Statistics Committee of Ukraine

TABLE 1-19. PRODUCTION STRUCTURE AND VOLUME OF CEMENT, CONCRETE, AND PLASTER
PRODUCTS IN 2000-2003, PRODUCTION UNITS
Code Products 2000 2001 2002 2003
708032 Small wall blocks based on cement binder, million 25.3 21.6 21.9 29.5
equivalent bricks
708041 Large concrete and lime wall blocks (including 152.8 151.9 169.7 224.6
foundation wall concrete blocks), million equivalent
bricks
708071 Small porous concrete wall blocks, million 171.8 210.1 246.2 348.5
equivalent bricks
711001 Precast reinforced concrete structures and 2037.1 2127.7 2064.4 2376.8
products, thousand m3
711002 Including: lightweight and porous concrete 74.3 43.3 46.2 47.1
structures and products, thousand m3
711012 Prestressed structures and products, thousand m3 533.3 553.4 498.1 536.7

711122 Of the total volume of precast reinforced concrete 1606.5 1581.6 1629.2 1364.2
structures and products: reinforced concrete ties,
thousand pcs
711124 Of the total volume of precast reinforced concrete 1604.7 1577.5 1628.4 1364.2
structures and products: reinforced concrete ties
for wide-gauge track, thousand pcs
711125 Reinforced concrete poles for power and telecoms 53.6 129.1 52.7 72.2
transmission lines; railroad contact system and
lighting system components, thousand m3
711127 Reinforced concrete sections and tubing for 37.6 42.1 40.8 36.0
tunnels and mine supports, thousand m3
711129 Wall panels, thousand m3 189.4 164.2 163.2 165.9
711136 Reinforced concrete pipes, thousand m3 4.2 3.4 3.6 4.3
711182 Reinforced structures and products made of non- - 0.2 0.4 0.4
cement concrete, thousand m3
711184 Large-panel and apartment modular construction, 313.9 295.1 331.9 372.1
thousand m2 of total floor area
711189 Including external wall reinforced concrete panels 4.9 - 4.0 -
with flexible connections and efficient heat-
insulation (for housing construction), thousand m2
of total floor area
711190 Heat-resistant concrete prefabricated structures 0.2 0.3 - -
and products, thousand m3
711220 Non-reinforced concrete products, thousand m3 196.0 269.8 245.3 236.3

Prepared by BIZPRO 30
 712101 Gypsum plasterboards, thousand m2 (equivalent 7253.4 11770.0 19580.9 26977.6
thickness of 10 mm)
712201 Partition plasterboards and panels, thousand m2 3.4 2.9 0.2 6.9
712211 Perforated soundproofing plaster plates, thousand 1.3 0.4 0.5 -
m2
TABLE 1-20. CEMENT, CONCRETE, LIME, AND PLASTER PRODUCTION STRUCTURE AND
VOLUME IN 2004, PRODUCTION UNITS
Code Products 2004
26.60.10 Wall building materials, million equivalent bricks 3476.9
26.61.11.310A Porous concrete blocks, million equivalent bricks 429.9
26.61.11.500A Tiles, slabs, roofing tiles, and similar cement, concrete or artificial stone 2812.5
products, thousand m2
26.61.12A Components of prefabricated structures for housing construction or civil 2723.5
engineering made of cement, concrete or artificial stone, thousand m3
26.61.13A Cement, concrete or artificial stone pipes, thousand m3 7.7
26.61.20A Prefabricated concrete buildings, thousand m2 3.1
26.62.10 Plaster products for housing construction or civil engineering, thousand 31435.1
m2
26.62.10.500 Plaster boards reinforced with paper or cardboard only, thousand m2 31412.1
26.62.10.900 Plaster blocks or plates or other products based on plaster mixes, 23.0
thousand m2
26.64.10 Building mortar and concrete, except ready-mixed concrete, thousand 2231.2
tons
26.65.11 Panels, plates, blocks, and similar products made of plant fibers or wood 3.1
waste, agglomerated with mineral binders, thousand m2
26.65.12.500A Pipes, unions, and connecting parts made of asbestos cement, cellulose 2013.5
fibrolite and similar materials, km of equivalent pipes
26.66.11 Plaster or plaster mix products, not otherwise categorized, tons 24303.0

Key Producers plaster products as their core activity.

According to statistics, Ukraine has about 1,000
companies producing concrete, cement, lime, and
TABLE 1-21. KEY PRODUCERS OF CEMENT, CONCRETE, AND PLASTER PRODUCTS
Producer Region Product
OJSC S. Kovalska Kyiv Production of concrete blocks
Ferroconcrete Structures Plant and other concrete products
Darnytsya Construction Kyiv Production of concrete blocks
Materials Plant
Slag Blocks Plant Kyiv Production of concrete blocks
Obukhiv Manufactured Goods Kyiv Oblast Production of concrete blocks
Plant
Zhytomyrprombudinvest Zhytomyr Production of concrete blocks
Lviv ZST Lviv Production of concrete blocks
OJSC Gipsovyk Kamyanets-Podilsky Production of plaster and
products
Elite Beton Urban-type settlement Gurzuf Production of concrete and
products
OJSC IVANO- VILLAGE YAMNYTSYA, Production of fiber cement
FRANKIVSKCEMENT TYSMENITSYA RAYON, IVANO- products
FRANKIVSK OBLAST
KRAMATORSKY SHIFER LTD KRAMATORSK, DONETSK Production of fiber cement
OBLAST products
BALAKLIYA ASBESTOS KHARKIV Production of fiber cement
SLATE INTEGRATED WORKS products
LTD
VOLYN-SHIFER LTD ZDOLBUNIV, ZDOLBUNIV Production of fiber cement
RAYON, RIVNE OBLAST products
SE ASBESTOS SLATE PLANT Kyiv Production of fiber cement

Prepared by BIZPRO 31
products

37
 TEKHPROM LTD
OJSC KHARKIV PLANT OF
INSULATING AND
ASBESTOS-CEMENT
MATERIALS
OJSC AZBODEREVSKLO
OJSC ZAPORIZHZHYA PLANT
OF ASBESTOS-CEMENT
MATERIALS
SE PP KRYAZH
KRASNOGVARDIYSKY
ASBESTOR SLATE PLANT
DELTA BUH FIRM LTD
CJSC Z II STROIMAK KNAUFF
Obukhiv Porous Concrete Plant
Experimental Plant of Porous
Concrete and Products
Zhytomyr Silicate Products
Integrated Works
More than 150 enterprises, the
best known of which are: OJSC
SVITLANA KOVALSKA
REINFORCED CONCRETE
PLANT; REINFORCED
CONCRETE PLANTS NO.1,
NO.5; OJSC DARNYTSYA
REINFORCED CONCRETE
PLANT (KYIV); OJSC
BROVARY BUILDING
STRUCTURES PLANT (KYIV
OBLAST); CJSC BETON
NOVA (DONETSK OBLAST)
MAKIYIVKA, HIRNYTSKY Production of fiber cement
RAYON, DONETSK OBLAST products
KHARKIV Production of fiber cement
products
Kyiv Production of fiber cement
products
ZAPORIZHZHYA Production of fiber cement
products
URBAN-TYPE SETTLEMENT Production of fiber cement
KRASNOGVARDIYSKE, products
KRASNOGVARDIYSKE RAYON,
AR CRIMEA
MYKOLAIV Production of fiber cement
products
Kyiv Production of plaster products
for use in building
Kyiv Oblast Small porous concrete wall
blocks
Bilhorod-Dnistrovsky, Odesa Small porous concrete wall
Oblast blocks
Zhytomyr Walling: lime-sand bricks,
porous blocks, heat-insulating
blocks, foundation blocks, wall
stones, concrete, mortar,
prefabricated reinforced
concrete components, wood
products, heat insulation
materials, lime, refractory
blocks for lime furnaces
- Production of prefabricated
concrete and reinforced
concrete products

Production of Other Mineral Materials and
Products
The segment of other nonmetal mineral products
includes materials and products needed in the
building industry and required for making other
construction materials and products. These
materials and products, however, have smaller
production and sales volumes than materials and
products in other segments. It thus seems
reasonable to consolidate them into one segment.
Other nonmetal mineral products groups includes:
- stone and stone products;
- granite;
- chalk; sand, pebbles, gravel, and crushed stone
aggregate; slag; kaolin and clay; andalusite,
kyanite, fibrolite, mulite; chamotte or silica earth;
- salt and pure sodium chloride;
- natural bitumen and asphalt, asphalt and asphalt
rock;
- natural minerals;
- panels, slabs, blocks, and similar products made
of plant fibers or wood waste, agglomerated with
mineral binding materials;
- pipes, unions, and coupling parts f made of
asbestos cement, cellulose fibrolite and similar
materials;

Prepared by BIZPRO 32
- natural powders or artificial abrasives or grain;
- treated asbestos fiber; asbestos-based mixtures;
products made of such mixtures; friction material
for brakes, clutches, and similar products,
unassembled;
- bituminous mixtures based on natural asphalt, oil
asphalt, mineral tar or mineral pitch;
- slag wool, silicate rock wool and similar rock
wools (including blends) in blocks, sheets or rolls;
- blends and products made of heat-insulating or
sound-proofing materials;
- treated mica and mica products.
The following subgroups had the largest shares in
the segment of other mineral materials and
products in 2004 (in monetary units):
Various types of building sand, pebbles, gravel,
and crushed stone aggregate – 40%;
Stone products – 23%;
Other types of clay, andalusite, mulite, chamotte
or silica earths – 10%;
Bituminous mixtures based on natural asphalt, oil
asphalt, mineral tar or mineral pitch – 9%
Others – below 2%.
According to State Statistics Committee data,
production of the following products declined in
2004 as compared with 2003:
- blends and products made of heat-insulating or
sound-proofing materials; and
- treated mica and mica products.
This period also saw a significant increase in
production of the following materials:
- marble and travertine;
- limestone, gypsum and limestone alabaster;
- sandstone,
- products made of other stones;
- delaminated vermiculite, expanded clay, foam
slag, and expanded mineral products (including
mixtures);
- non-electrical articles made of graphite or other
carbon materials;
- chalk;
- natural minerals;
- panels, slabs, blocks and similar products made
of plant fibers or from wood waste agglomerated
with mineral binding substances;
- pipes, unions, and connecting parts for them
made of asbestos cement, cellulose fibrolite, and
similar materials;
- bituminous mixtures based on natural asphalt, oil
asphalt, mineral tar or mineral pitch.

TABLE 1-22. PRODUCTION OF OTHER NONMETAL MINERAL PRODUCTS IN 2004, PRODUCTION

UNITS
Code MATERIALS AND PRODUCTS 2003 2004 Growth
rate, %
14.11.11.300 Marble and travertine, thousand m3 1.1 4.2 381.8%
A
14.11.11.500 Limestone, plaster and limestone alabaster, 690.5 900.3 130.4%
A thousand m3
14.11.12.300 Granite, thousand m3 515.9 579.1 112.3%
A
14.11.12.500 Sandstone, thousand m3 44.8 131.7 294.0%
A
14.11.12.900 Tuff, basalt, porphyry, and other undressed 138.4 145.3 105.0%
A stones, coarsely dressed or cut into blocks and
slabs, thousand m3
14.21.12A Pebbles, gravel, crushed rock aggregate, and 34502.5 39199.2 113.6%
crushed stone, thousand m3
26.70.11A Products made of marble, travertine, alabaster, 27.9 23.0 82.4%
hewn or shaped by other means, thousand m2
26.70.12A Product made of other stones, thousand m2 964.5 1242.2 128.8%
26.82.14 Artificial graphite; colloidal or semi-colloidal 96.5 94.4 97.8%
graphite; graphite-based products, thousand tons
26.82.15 Manufactured corundum, thousand tons 66.3 62.8 94.7%
26.82.16.200 Delaminated vermiculite, expanded clay, foam 466.8 631.1 135.2%
A slag, and expanded mineral products (including
mixtures), thousand m3

Prepared by BIZPRO 33
 26.82.16.700 Non-electrical articles made of graphite or other 5.3 10.5 197.1%
carbon materials, thousand tons
14.12.20.100 Chalk, thousand tons 1217.0 1513.6 124.4%
14.21.10A Sand, pebbles, gravel, and crushed rock 40509.9 45580.8 112.5%
aggregate for building purposes, thousand m3
14.21.11.900 Other building sands (metalliferous sand), 5365.6 5680.9 105.9%
A thousand m3
14.21.11A Natural sands, thousand m3 6989.1 7445.5 106.5%
14.21.13A Building slag, thousand m3 295.8 354.0 119.7%
14.22.11 Kaolin and other kaolin clay, thousand tons 1176.4 1468.1 124.8%
14.22.12 Other clays, andalusite, kyanite, fibrolite, mulite, 7163.6 7771.8 108.5%
chamotte or silica earths, thousand tons
14.30.13 Other natural minerals for the chemical industry, 23.9 23.6 98.9%
thousand tons
14.40.10.000 Salt and sodium chloride pure, thousand tons. 2906.4 3339.4 114.9%
14.50.10.000 Natural bitumen and asphalt, asphaltites and 0.4 0.003 0.8%
asphalt rock, thousand tons.
14.50.23 Natural minerals, not otherwise categorized, 1077.1 1632.1 151.5%
thousand tons
26.65.11 Panels, slabs, blocks, and similar products made 1.3 3.1 238.5%
of plant fibers or wood waste agglomerated with
mineral binding substances, thousand m2
26.65.12.500 Pipes, unions, and connecting parts for them 1491.0 2013.5 135.0%
A made of asbestos cement, cellulose fibrolite and
similar materials, km of equivalent pipes
26.81.12.300 Natural powders or artificial abrasives or grain on 1148.3 1227.1 106.9%
textile base, thousand m2
26.81.12.500 Natural powders or artificial abrasives or grain on 178.8 209.1 116.9%
paper or cardboard base, thousand m2
26.81.12.900 Natural powders or artificial abrasives or grain on 12.7 12.7 100.0%
basis of other materials, thousand m2
26.82.11 Treated asbestos fibers; asbestos-based mixtures; 7.0 7.0 100.9%
products based on such mixtures; friction material
for brakes, clutches, and similar articles,
unassembled, thousand tons
26.82.13 Bituminous mixtures based on natural asphalt, 2517.3 3230.7 128.3%
petroleum asphalt, mineral tar or mineral pitch,
thousand tons
26.82.16.100 Slag wool, silicate mineral wool, and similar 296.0 293.2 99.1%
A mineral wools (including blends) in blocks, sheets
or rolls, thousand m3
26.82.16.300 Blends and products made of heat-insulating or 172.3 129.6 75.2%
A sound-proofing materials, not otherwise
categorized, thousand m3
26.82.16.500 Treated mica and mica products, thousand tons 0.011 0.006 54.5%

Key Producers in Other Mineral Products
Segment
There are more than 600 producers of mineral
materials in this segment that are not included in
the nonmetal construction materials sector
segments above. Note should be made of the
companies among them that are leaders in terms
of sales income, according to SCP (Table 1-23).

Prepared by BIZPRO 34
 TABLE 1-23. KEY PRODUCERS OF OTHER MINERAL PRODUCTS AND MATERIALS
Producer Region Product
CJSC BILYCHI Mining Extractive Urban-type settlement Stone dressing
Stone Dressing Integrated Works Kotsyubynske, Kyiv Oblast
OMFAL Stone Dressing Plant Shakhtarsk, Donetsk Oblast Stone dressing
Budynok Marmuru Kyiv Oblast Production of marble, granite,
and artificial stone articles
OJSC Yantsevsky Granite Quarry; Ukraine Granite mining and dressing
CJSC Kapustyansky Granit; CJSC
Holovynsky Granite Quarry; CJSC
Omelyanivsky Granite Quarry; OJSC
Oleksandrivsky Granite Quarry; OJSC
Pervomaisky Granite Quarry; JSC
OJSC Starobabansky Granite Quarry
Sava Teks Dekor Production of artificial stone,
marble articles, dressing of
sandstone, shale, and quartz
OJSC TRIBO Bila Tserkva, Kyiv Oblast Production of other nonmetal
mineral products, not otherwise
categorized
BLASTO LTD Kremenchuk, Poltava Production of other nonmetal
Oblast mineral products, not otherwise
categorized
EDELVEIS LTD Podvirky, Kharkiv Oblast Production of other nonmetal
mineral products, not otherwise
categorized
OJSC ENERGORESURS LVIV Production of other nonmetal
UKRAINIAN-POLISH JV mineral products, not otherwise
categorized
OJSC MARGANETS EXPANDED MARGANETS, Production of other nonmetal
CLAY GRAVEL PLANT DNIPROPETROVSK mineral products, not otherwise
OBLAST categorized
PROMTEKS LTD URBAN-TYPE Production of other nonmetal
SETTLEMENT, KHARKIV mineral products, not otherwise
RAYON, KHARKIV categorized
OBLAST
DONHOLDING LTD AVDIYIVKA, DONETSK Production of other nonmetal
OBLAST mineral products, not otherwise
categorized
OMEGA MINERALS UKRAINE LTD MYRONIVKA, Production of other nonmetal
MYRONIVKA RAYON, mineral products, not otherwise
KYIV OBLAST categorized
CJSC BILYCHI URBAN-TYPE Production of other nonmetal
TEPLOZVUKOIZOLYATSIA PLANT SETTLEMENT mineral products, not otherwise
KOTSYUBYNSKE, IRPIN, categorized
KYIV OBLAST
ADSORBENT PLANT LTD SVITLOVODSK Production of other nonmetal
mineral products, not otherwise
categorized
OJSC MARIUPOL GRAPHITE MARIUPOL, DONETSK Production of other nonmetal
INTEGRATED WORKS OBLAST mineral products, not otherwise
categorized
CHERNIVTSI HEAT-INSULATING CHERNIVTSI Production of other nonmetal
MATERIALS PLANT PRODUCTION mineral products, not otherwise
AND COMMERCIAL ENTERPRISE categorized
LTD
OJSC YAVORIV CONSTRUCTION URBAN-TYPE Production of other nonmetal
MATERIALS PLANT AUTHORITY SETTLEMENT SHKLO, mineral products, not otherwise
YAVORIV RAYON, LVIV categorized
OBLAST

Prepared by BIZPRO 35
 Producer
SE EXPLOSION-PROOF AND
BINDING MATERIALS ENTERPRISE
UTYLIZATOR-2 LTD
KHMELNYTSKY EXPANDED CLAY
AGGREGATE PLANT
OJSC KALYNIVKA BUDPERLIT
PLANT
BASALT PRODUCTS PLANT LTD
OJSC ZHYTOMYR ROOFING AND
INSULATING MATERIALS PLANT
CJSC SAMBIR EXPANDED CLAY
PLANT
KERAMZYT PRODUCTION COOP
PINOPOLISTYROL LTD
OJSC SVITLOVODSK HEAT-
INSULATING AND CONSTRUCTION
MATERIALS PLANT
OJSC KERAMZYT PLANT
TEMARA LTD
OJSC
UKRTSUKORTEPLOIZOLYATSIYA
KHIMVISKPROM LTD
OJSC KIROVOHRAD MECHNICAL
PLANT
OJSC ZIM
KIROVOHRAD EXPANDED CLAY
AGGREGATE PLANT LTD
CJSC UKRAINIAN SULICATE
STATE ENTERPRISE
SOKYRNYTSKY ZEOLITE PLANT
Prepared by BIZPRO
Region Product
DOKUCHAYEVSK, Production of other nonmetal
DONETSK OBLAST mineral products, not otherwise
categorized
KHARKIV Production of other nonmetal
mineral products, not otherwise
categorized
VILLAGE SHAROVECHKA, Production of other nonmetal
KHMELNYTSKY RAYON, mineral products, not otherwise
KHMELNYTSKY OBLAST categorized
URBAN-TYPE Production of other nonmetal
SETTLEMENT mineral products, not otherwise
KALYNIVKA, BROVARY categorized
RAYON, KYIV OBLAST
DNIPROPETROVSK Production of other nonmetal
mineral products, not otherwise
categorized
ZHYTOMYR Production of other nonmetal
mineral products, not otherwise
categorized
VILLAGE VYKOTY, Production of other nonmetal
SAMBIR RAYON, LVIV mineral products, not otherwise
OBLAST categorized
KHARKIV Production of other nonmetal
mineral products, not otherwise
categorized
VINNYTSYA Production of other nonmetal
mineral products, not otherwise
categorized
URBAN-TYPE Production of other nonmetal
SETTLEMENT VLASIVKA, mineral products, not otherwise
SVITLOVODSK, categorized
KIROVOHRAD OBLAST
VINNYTSYA Production of other nonmetal
mineral products, not otherwise
categorized
STRYI, LVIV OBLAST Production of other nonmetal
mineral products, not otherwise
categorized
KYIV Production of other nonmetal
mineral products, not otherwise
categorized
VILLAGE KOMINTERN, Production of other nonmetal
OLEKSANDRIYA RAYON, mineral products, not otherwise
KIROVOHRAD OBLAST categorized
VILLAGE Production of other nonmetal
PERVOZVANIVKA, mineral products, not otherwise
KIROVOHRAD RAYON, categorized
KIROVOHRAD OBLAST
MARIUPOL, DONETSK Production of other nonmetal
OBLAST mineral products, not otherwise
categorized
KYIV Production of other nonmetal
mineral products, not otherwise
categorized
KHERSON Production of other nonmetal
mineral products, not otherwise
categorized
VILLAGE BORONYAVO, Production of other nonmetal
KHUST RAYON, mineral products, not otherwise
ZAKARPATSKA OBLAST categorized
36
 Producer Region Product
OJSC TOMAKIVKA EXPENDED URBAN-TYPE Production of other nonmetal
CLAY GRAVEL PLANT SETTLEMENT mineral products, not otherwise
TOMAKIVKA, TOMAKIVKA categorized
RAYON,
DNIPROPETROVSK
OBLAST
OJSC LVIVPOKIZOL PRODUCTION LVIV Production of other nonmetal
ASSOCIATION OF INSULATING mineral products, not otherwise
AND MAJOLICA ARTICLES categorized
OJSC ODESA EXPANDED CLAY ODESA Production of other nonmetal
AGGREGATE PLANT mineral products, not otherwise
categorized
OJSC Kombinat Budindustriyi Kyiv Production of heat-insulating
products
Dnipropetrovsk Heat-insulating and Settlement Yuvileiny, Production of heat-insulating
Basalt Products Plant Ltd. Dnipropetrovsk Oblast products
NPP Dobrobut Ltd. Kyiv Production of heat-insulating
products
OJSC Insulating Materials Plant Mariupol, Donetsk Oblast Production of heat-insulating
products
OJSC IZOLYATSIYA DONETSK Production of heat-insulating
products
CJSC Stirol-Pak Horlivka, Donetsk Oblast Production of heat-insulating
products
UkrPinoPolyEthylen Ltd. Kharkiv Production of heat-insulating
products
OJSC Tsentralna Budivelna Kyiv Production of heat-insulating
Kompania products

Production of Varnishes and Paints
The Ukrainian varnish and paint market’s capacity
is still quite small compared to that of EU
member-states. While in the EU countries per
capita paint sales reach 12 kg (Kontrakty
Ukrainian business weekly, No. 15 of 11 April
2005), and in the most prosperous of EU states
(e.g., UK), they can be as high as 20 kg, in
Ukraine market players barely managed to reach
the level of 4.4-4.5 kg in 2004. According to expert
estimates, the Ukrainian varnish and paint market
reached a production volume of 280,000-290,000
tons in 2004. At the same time, this lagging
behind the European markets in terms of product
sales testifies to the domestic market’s great
potential. In particular, experts anticipate varnish
and paint sales to grow by 15%-20% in 2005 in
Ukraine.
The Ukrainian varnish and paint market is growing
primarily at the expense of building paints, the
growth in demand for which, according to the
leading producers, reached 30% in 2004.
According to the Market Department at the
Dnipropetrovs’k Varnish and Paint Plant, sales of
industrial paints and primers are growing 20%
every year. The popularity of water dispersion
products is also growing. Based on data from
CJSC Lakma, consumption of them amounted to
20,000 tons in 2002, went as high as 36,000 tons
in 2003, and was at about 47,000 tons in 2004.
Not surprisingly, then, a lot of new water-based
products are being developed, including brick and
concrete and interior paints, primers, and
varnishes. In particular, Nifar added to their range
water dispersion paints and primers under the
Snizhyna and Snizhyna-Luks brands. The Yantar
company, based in Korosten’, has made water
dispersion paints its core product, and the Akzo
Nobel Company put water-thinned primer and
varnish, under the Pinotex Aqua brand, on the
market.
According to Henkel Bautechnik (Ukraine), brick
and concrete paints account for 10%-15% of the
market. At the same time, the shares of mid-price
(Hr7 to Hr30 per kilogram) and expensive (more
than Hr30 per kilogram) price segment are
growing. The trend is affected by gradually
growing customer requirements: those, who were
buying cheap paints previously, are now choosing
mid-priced products, while former mid-price paint
customer is moving up to expensive paints.
Private customers, as well as the best building
organizations, have become more discriminate in
paint selection and more perceptive to new
technology. Hence, there is a rapid increase in
demand for environmentally friendly, water
dispersion acrylic paints: e.g., CJSC Lakma is
doubling their output annually, with their share
approaching 15%-20% in company’s production
volume.
The share of cheap oil and alkyd paints, which
include the best-known products, such as

Prepared by BIZPRO 37
pentaphthalic enamel paints PF-115 or PF-266, is
gradually declining. Despite the fact that such
paints remain the most common, their domination
of the market is not as assured as it used to be.
According to the Lakma Company, even in 2003,
alkyd and oil paints accounted for 62% of the
market, but accounted for only half in 2004. It is
not only the basic paints that are losing market
share, but also the most basic ways of selling
basic paints. Based on Lakma data, the share of
open-air markets in paint retail trade has fallen to
40%, and experts believe it to be declining further
due to stronger sales by building supermarkets.
Simultaneous with the expansion of leading
Ukrainian companies’ product ranges through
introduction of higher-quality products has been a
movement towards lowering prices for products
made by well-known foreign manufacturers, as a
result of their establishing production facilities in
Ukraine. Nevertheless, national producers with
foreign registrations have not yet become the
primary competition for domestic producers, which
rely on the cheapness of their products, believing
low prices to be their unconditional competitive
advantage over foreign investors. Thus, CJSC
Lakma’s management claims that production
volumes of Koloryt paints (less than 3,000 tons
are made per year) or the market shares held by
Malyar and Empils painst do not yet threaten
Lakma. Even the launch in August of last year of a
Henkel Bautechnik (Ukraine) facility with a paint
and liquid plaster line rated for 30,000 tons per
year has not caused a market upheaval, because
the company specializes in a limited range of
products for finishing building fronts.
Still, the market influence of primitive small
enterprises is weakening, as customers are
becoming more focused on product quality. Retail
volume on the paint market, in which small
enterprises used to dominate, are gradually
FIGURE 1-13. VARNISH AND PAINT PRODUCTION VOLUME IN 2000-2004, HR MILLION*
Hr million
1271,5 1089,7
941,2
2000 2001 2002
* Acc. To KVED
Source: State Statistics Committee
Prepared by BIZPRO
declining, to the benefit of corporate orders.
“Cottage” enterprises are gradually leaving the
market due to the recent increase in prices for the
raw materials used in paint production. (This
increase is of course connected with the global
increase in oil prices.) Making varnish and paint is
not a highly profitable business: the lower the
output, the more difficult it is, so smaller
enterprises are at disadvantage.
Market leaders are going to consolidate their
positions even more, as the price rise for varnish
and paint products of 2004 is not the last one the
world will see. Experts believe the seven or eight
largest companies could capture up to 85% of the
market in the future. It seems likely that
international companies (which experts say are
going to accelerate their expansion on the
Ukrainian market) will dominate in this group. Only
extremely attractive investment opportunities in
other promising markets, e.g., India’s or China’s,
could slow down the large international
companies’ conquest of the Ukrainian market.
In the opinion of market operators, the market is
becoming more favorable for large companies.
The varnish and paint sector has finally felt the
effects of the industrial boom. Demand for
industrial paints (for painting equipment, machine
tools, agricultural machinery, ships) is growing as
rapidly as demand for building paints. This means
the market, primarily for the traditional products of
large enterprises, and in particular for alkyd
paints, is strong.
According to data from the State Statistics
Committee, the growth in production of varnishes
and paints was about 10% (the average annual
indicator) in 2000-2004. In turn, importers are now
establishing their own production facilities in
Ukraine (Zerkalo Nedeli http://www.zerkalo-
nedeli.com/ie/show/459/41654/).
1726,0
1184,9
2003 2004
38
 TABLE 1-24. VARNISH AND PAINT PRODUCTION STRUCTURE AND VOLUME IN 2000-2003,
PRODUCTION UNITS
Code Products 2000 2001 2002 2003
620900 Varnish and paint materials, total, tons 107284.0 130456.0 167247.0 181340.0
620951 Including progressive materials, tons 92394.0 116835.0 150010.0 167652.0
622101 Condensation resin varnishes, tons 24626.0 25193.0 27728.0 27738.0
622111 Enamels, primers, and fillers based on 51613.0 67474.0 75909.0 77719.0
condensation resins, tons
622121 Varnishes, enamels, primers, and fillers 4979.0 4673.0 8611.0 10257.0
based on polymerization resins, tons
622131 Varnishes, enamels, primers, and fillers 3499.0 2732.0 3871.0 3591.0
based on cellulose ester, tons
622151 Solvents and removers for varnish and paint 1981.0 4710.0 12136.0 10253.0
materials, total, tons
622213 Alcoholic varnishes and alcohol-diluted 206.0 64.0 918.0 829.0
lacquers, tons
622600 Water paints, tons 5406.0 11453.0 20027.0 36296.0
622700 Heavy-bodied oil paints, tons 1264.0 841.0 1671.0 285.0
623000 Drying oil, total, tons 5553.0 3691.0 4105.0 2987.0
623100 Natural drying oil, tons 392.0 155.0 47.0 56.0
623200 Combination drying oil, tons 1150.0 890.0 987.0 527.0
623300 Oksol drying oil, tons 4011.0 2646.0 3071.0 2404.0
624381 Light-bodied oil paint, tons 7392.0 8468.0 11188.0 10373.0
624383 Powder paint, tons 25.0 473.0 806.0 968.0
624401 White pigment, total, tons 90212.0 95956.0 77027.0 93649.0
624422 Titanium dioxide pigment, tons 84828.0 90917.0 72509.0 87795.0
624462 Zinc white, tons 5349.0 5039.0 4518.0 5854.0
624682 Ferrioxide red pigment, tons 15436.0 12429.0 11968.0 16291.0
624683 Ferrioxide yellow pigment, tons 2702.0 3404.0 3784.0 3757.0
626290 Turpentine, total, tons 411.0 265.0 319.0 238.0
TABLE 1-25. VARNISH AND PAINT PRODUCTION STRUCTURE AND VOLUME IN 2004,
PRODUCTION UNITS
Code Products 2004
24.30.1 Polymer-based paints and varnishes, tons 186570.9
24.30.11 Water-diluted polymer-based paints and varnishes, tons 46116.9
24.30.12 Paints and varnishes diluted by other solvents, tons 140440.1
24.30.12.200 Paints and varnishes, including enamels and lacquers, based on 80942.7
polyester, dispersed or diluted in volatile organic solvents, tons
24.30.21 Ready-made paints and vitreous mixtures, tons 4884.8
24.30.22 Paints and varnishes, ready-made driers, tons 33170.4

Key Producers Ukraine, CJSC Nifar, Polifarb Ltd, Sniezka-

There are about 130 producers of varnishes and
paints in Ukraine. Notably, 15 of those produce
80% of all varnishes and paints. The market
leaders, however, are mainly using obsolete
Soviet technology and reduce their production
year after year. This also applies to medium-sized
companies, which have to compete with new type
of firms. These are mainly either joint ventures or
firms with foreign investments. Enterprises of this
type include Sniezka-Ukraine and Polifarb (Polish
investors), Meffert-Ganza and Jobi-Ukraine
(German), and BNS-Farba (Austrian).
The leading Ukrainian producers (listed
alphabetically): OJSC Dnipropetrovs’k Varnish
and Paint Plant, OJSC Elaks, PE Zip Ltd.,
Kremniy Polimer, CJSC Lakma, JV Meffert Ganza
Ukraine Ltd., JV Sofrakhim, JSC Khimreserv.
These enterprises account for about 70% of total
paint output in the country (Budivelnyi Zhurnal
(Building Journal), No.5/2006, p.34). Quite
successful also are such enterprises as the
Yantar Plant based in Korosten, OJSC
Sumykhimprom, Lider and Emal, both based in
Dnipropetrovs’k, Fiolent Kolor of Sevastopol, and
others.
Simultaneously with development of the leading
Ukrainian companies (thanks to their producing
higher-quality goods), there is also a tendency for
foreign producers to lower their prices, a result of
their locating production facilities in Ukraine.
Sniezka of Poland has opened affiliates in
Ukraine, as has Jobi of the Netherlands. The

Prepared by BIZPRO 39
German concern Meffert AG created a joint
venture (Meffert Ganza Farben in

46
Dnipropetrovs’k). Tikkurila of Finland bought
enterprises in Ukraine (Farby Koloryt Ltd.), as has
Russia’s Empils (Elaks Plant in Odesa). Akzo
Nobel is placing orders in Ukraine (Khimreserv
Firm) for making paints under the local Malyar
brand.
Production of Plastic and Rubber Articles for
Building
According to the State Statistics Committee of
Ukraine, the plastics and rubber market recorded
an average annual growth of about 30% for
plastics and nearly 7% for rubbers in 2000-2004.
Output increased by 72% in 2003 compared to
2002, increased 5.7 times in 2004 compared to
2003.
The number of population centers and industrial
facilities connected to centralized gas and water
services is growing every year. Residential and
commercial construction is on the rise. High
growth rates are attracting new players to this
market. One of these players is the new OJSC
Rubizhne Pipe Plant (Luhansk Oblast), which
FIGURE 1-14. RUBBER AND PLASTICS PRODUCTION VOLUME IN 2000-2004, HR MILLION*
started production in early 2005 (Russia’s
Eurotrubplast Holding is the main investor).
The most attractive segment in plastic and rubber
products for the construction material industry is
making plastic and metal-plastic pipes for
construction, repair, and reconstruction of
underground gas lines, water supply lines, sewer
systems, and district heating systems. There are
also protective plastic pipes designed for holding
telecommunications cabling.
The key benefits of plastic pipes include their high
resistance to corrosion, preservation of the
original flow rate capacity because deposits don’t
form in them, low heat conductivity, resistance to
galvanic corrosion, light weight, flexibility,
improved sealing tightness, quick and easy
installation, and a service life of at least 50 years.
The weaknesses include susceptibility of some to
ultraviolet light and lower resistance to mechanical
stress. Use of plastic pipes is also limited for
heating systems, as not all plastics (depending on
the polymer materials used) are resistant to high
temperatures.

818,2
Hr million

144,0
83,9
60,7
36,6

2000 2001 2002 2003 2004

Source: State Statistics Committee

TABLE 1-26. KEY PLASTICS ARTICLES PRODUCTION STRUCTURE AND VOLUME IN 2000-2003,
PRODUCTION UNITS
Code Products 2000 2001 2002 2003
612251 Pipes and parts of pipelines made of 2807.0 5341.0 8652.0 16459.0
thermoplastics, tons *
614701 Glass-reinforced plastics and products, total, tons 1464.0 1550.0 1556.0 1601.0
614757 Pipes and parts of pipelines made of glass- - 46.0 59.0 34.0
reinforced plastics, tons
614759 Large-size glass-reinforced plastics articles, tons 44.0 112.0 53.0 39.0

Prepared by BIZPRO 40
According to information from the Association of volume in meters of equipment amounted to
Manufacturers and Builders of Polymer Pipelines, 14,000 m in 2002 and 18,000 m in 2003.

TABLE 1-27. KEY PLASTICS ARTICLE PRODUCTION STRUCTURE AND VOLUME IN 2004,
PRODUCTION UNITS
Code Products 2004
25.13.30 Rubber tubes and pipes, hoses and sleeves, except ebonite, kg 4343415.1
25.13.30.550 Metal-reinforced rubber sleeves and hoses, kg 1345132.0
25.21.21.500 Rigid pipes, tubes, hoses, and coupling parts made of polymers of 34783.6
ethylene, propylene, vinyl chloride, and other plastics, kg
25.21.22 Other pipes, tubes, sleeves, hoses, and coupling parts made of plastics, 640081.0
kg
25.23.14 Doors and sills, windows, frames, panes, shutters, similar products and 5270.0
their parts made of plastics, kg

Key Producers of Rubber and Plastic Products Committee) offering their products to customers
for Building as the core activity, with dozens of enterprises
making pipes from polymer materials. The market
Based on State Statistics Committee data, as of leaders may be singled out from among these
the end of 2004, there were 1,447 manufacturers companies (Table 1-28).
in this segment (Data of Ukraine’s State Statistics
TABLE 1-28. KEY RUBBER AND PLASTICS PRODUCERS
Producer Region Product
Rubizhne Pipe Plant (TD Luhansk Oblast Pipes made of polymer materials
Eurotrubplast)
PE Atols Brovary, Kyiv Oblast Pipes made of polymer materials
OJSC Vynohradiv PMK-78 Vynohradiv, Vynohradiv Pipes made of polymer materials
Rayon, Zakarpatska Oblast
NPF Vodopolimer Boryspil, Kyiv Oblast Pipes made of polymer materials
OJSC Hamaplast Ukrayina Boryspil, Kyiv Oblast Pipes made of polymer materials
OJSC Sanitary Wares Plant Kyiv Pipes made of polymer materials
Zakhidbudservis Scientific Lviv Pipes made of polymer materials
and Production Association
OJSC Kyivoblgaz Kyiv Pipes made of polymer materials
OJSC Nosivsky Pobiedit Donetsk Pipes made of polymer materials
Plant
Plastpipe Ltd. Ivano-Frankivsk Pipes made of polymer materials
OJSC Polivtor Krasnoperekopsk, AR Pipes made of polymer materials
Crimea
OJSC Rozma Chernivtsi Pipes made of polymer materials
Rubizhne Zorya Treasury Luhansk Oblast Pipes made of polymer materials
Chemical Plant
OJSC Sizakor Simferopol, AR Crimea Pipes made of polymer materials
OJSC Simferopol Plastics Simferopol, AR Crimea Pipes made of polymer materials
Plant
SITEK Ltd. Dnipropetrovsk Pipes made of polymer materials
CJSC UDT Kyiv Pipes made of polymer materials
Ukrgazyfikatsiya-Yug Ltd. Odesa Pipes made of polymer materials
Elplast-Lviv Ltd. Horodok, Lviv Oblast Polyethylene piles, coupling parts for
gas- and water supply lines
Ukrpolimerkonstruktsiya Kyiv Polyethylene pipes for supplying
Ltd. flammable gases and for pressure water
supply
CJSC Brovary Plastics Brovary, Kyiv Oblast Production of plastics and plastic
Plant products
Luha-Plast Ltd. Luhansk Production of plastics and plastic
products
Plast Modern Scientific and Urban-type settlement Production of plastics and plastic
Production Firm Kotsyubynske, Kyiv Oblast products

Prepared by BIZPRO 41
 Ekopolimer Scientific and Kharkiv Production of plastics and plastic
Production Firm products
DAK Ltd. Donetsk Production of plastics and plastic
products
JV Euro-plast Lviv Production of plastics and plastic
products
OJSC Kyivguma Kyiv Production of rubber

Production of Wood and Wood Products
Based on State Statistics Committee data,
woodworking industry enterprises increased
production volume (in monetary terms) by 2.4% in
2004 compared to 2003. Increases were recorded
in the production of hardwood parquet, plywood,
particle boards, wood windows, doors, frames,
and sills (by 23%-52%). The 2003 data show an
increase in sales earnings by 24.4% compared to
2002.
Production of particle boards increased by a third,
with 9% to 22% growth for matches and plywood.
At the same time, production of wood crating and
parquet decreased.
FIGURE 1-15. WOOD AND PRODUCTS PRODUCTION VOLUME IN 2000-2004, HR MILLION
In 2002, as compared with 2001, production of
particle board increased by 45%, of matches and
plywood by 23%-29%, and of wood fiberboards by
7% in 2002.
However, a decline of 15% was recorded in the
production of window and door assemblies.
Parquet and lumber production fell by 1%-3%.
There was an increase in production volumes of
plywood, particle board, and matches (by 42%-
67%), wood fiberboard and wood packaging (by
14%-20%) in 2001 as against 2000. At the same
time, there was a decrease in the production of
parquet, window and door assemblies and timber
by 2%-12% compared to 2000.

1047,2 1072,7

841,6
Hr million

655,3
516,7

2000 2001 2002 2003 2004

* Acc. To KVED
Source: State Statistics Committee

TABLE 1-29. WOOD AND WOOD PRODUCTS PRODUCTION STRUCTURE AND VOLUME IN 2000-
2003, PRODUCTION UNITS
Code Products 2000 2001 2002 2003
671001 Lumber, thousand m3 2116.5 1993.3 1932.5 2075.4
671033 Birch and softwood lumber, thousand m3 29.1 29.6 22.2 44.6

671244 Mine lagging, thousand m3 1.6 0.2 0.2 0.2

672101 Plywood, m3 56283.0 79949.0 101584. 125189.
0 0
672201 Peeled veneer, m3 20392.0 26096.0 34971.0 39495.0
672241 Planed veneer, thousand m2 9086.0 8114.4 11524.6 14169.3
673051 Glued wood structures, thousand m3 - - - 2.4

Prepared by BIZPRO 42
 673120 Kits of wood parts for houses with walling - 6.2 7.1 16.4
made of local building materials and products
for house-building, thousand m2 of total area
673129 Timber used for building, thousand m3 - - - 0.2

673130 Window and door assemblies, thousand m2 972.1 1010.7 844.8 991.2
673131 Including window assemblies, thousand m2 397.8 465.5 381.6 404.2

673711 Parquet, thousand m2 1189.0 1216.2 1278.3 1292.0

674441 Wood fiberboards, thousand of equivalent m2 17443.6 21287.3 22659.2 23506.3
674464 Including hardboards, thousand of equivalent 16563.8 19962.1 21236.3 22250.1
m2
674481 Particle boards, m3 232298. 333703. 495333. 668061.
0 0 0 0
TABLE 1-30. WOOD AND WOOD PRODUCTS PRODUCTION STRUCTURE AND VOLUME IN 2004,
PRODUCTION UNITS

Code Products 2004

20.10.10.770 Bars, planking, and borders for parquetry or wood flooring, planed, 1417.6
unassembled, made of oak (except for shaped), thousand m2
20.10.21.550 Hardwood parquet, thousand m2 1780.7
20.20.12 Veneered wood panels, m3 945.0
20.20.21.100 Veneer, plywood sheets, other wood, cut parallel to the grain, 6 mm or less 75072.
thick; pencil slats, m3 9
20.20.21.101 Peeled veneer, m3 44797.
7
20.20.21.102 Planed veneer, thousand m2 21674.
A 0
20.30.11A Windows, doors, their frames and sills made of wood, thousand m2 1537.8
20.30.12.100 Panel wood parquet, thousand m2 399.7

Key Producers of Wood and Wood Products
According to the State Statistics Committee, there
are over 1,000 woodworking enterprises in
Ukraine, producing wood and wood products as
their core activity. The greatest contribution to the
wood and wood products market is made by the
following companies (According to rating of sales
earnings as per KVED): STEN LTD, DOKA LTD,
PE LISPROMSERVIS, AVERS LTD, CJSC
STOKHID, and PYRYATYNDEREV LTD.
Production of Roofing and Waterproofing
Materials
The Ukrainian roofing materials market is one of
the fastest growing of markets. In the estimates of
some industry experts, nearly $300 million worth
(in wholesale prices) of various products sold in
2001. During the last three years, sellers note an
annual increase in sales of approximately 20%.
Also, the number of manufacturing companies has
grown. This has resulted in increased sales of
domestically-produced goods (the majority of
these goods are still made from imported raw
materials). This has led to a situation in which
increasingly smaller volumes of finished roofing
materials are imported into Ukraine. Today,
imports account for at most 10% of the total
market volume, even though they generated some
30%-35% of the earnings for sellers four years
ago.
Roofing materials are made for two types of roofs:
flat and inclined. Different materials are used for
each. Experts say the share of inclined roofs
accounts for more than 20% of the market (in
money terms) and flat roofs for about 80%. Rag
felt materials are mainly used for flat roofs, with
ruberoid being common for the Ukrainian market.
Of late, euro-ruberoid is becoming increasingly
popular.
The structure of rag felt roofing in 2004 broke
down thus (Dilova Stolytsya/www.dns.kiev.ua, of
26 July 2005.):
- asbestos cement boards – about 83% of the
market
- metal tiles – 11,5%
- euro-slate – 3,7%
- bitumen tile – 1,1%
- natural tile – 0,3%
The highest consumption growth rates, of about
40% compared to 2003, were noted for bitumen
tiles; the shares of euro-slates and metal tiles are
also growing, with 37% and 23%, respectively.
The total inclined roofing market has been
growing at an average of 4%-5% annually.

Prepared by BIZPRO 43
Ruberoid manufacturers could hardly call the year
2004 a good one. Given a boost of their
production capacity, the anticipated market growth

51
 failed to materialize. Even a fall in product prices
and the driving out of importers failed to help this
material recapture its market share from other
types of roofing. Experts believe the main reason
of Ukrainian producers’ insufficient development
to be contraband supplies of cheap and not
always good quality products from Russia (Dilova
Stolytsya www.dns.kiev.ua, of 26 July 2005.).
Ukraine’s present raw materials base is unable to
satisfy manufacturers’ needs for the production of
about 40 million m2 per year. Only financially
strong companies can import raw materials from
abroad or invest in making them in Ukraine.
Today, Akvaizol is the only company making non-
woven base for euro-ruberoid in Ukraine. Taking
this into account, in two or three years, the market
will consist only of the three largest ruberoid
producers. The rest will be forced to either
diversify or leave the market.
The Ukrainian roofing materials market is
developing both quantitatively and qualitatively.
Ukrainian producers are presenting innovative
products and driving imported materials out.
Growing consumption in the provinces is having a
positive impact on the market. The main trends
also include a gradual reduction in imports. More
interest if foreseen in more durable and higher-
quality roofing materials.
The domestic roofing materials market is now
estimated at 100 million euros, with anticipated
growth of about 30%. The market’s development
is accompanied by the emergence of new players.
So, in 2005, a Ukrainian plant manufacturing
roofing materials was launched in
Dniprodzerzhinsk, built by Russia’s Tehkhnonikol
Company, which has been supplying roofing
materials to Ukraine for ten years. Launching
production in Ukraine would allow lower roofing
materials prices. Compared to Russian imports,
prices of certain types of goods have already
dropped by 15%.
Today, experts are noting the rapid development
rate of the Ukrainian market for waterproofing
underlay. Market capacity is growing year by
year, and the share of imports, which is
insignificant even today, is diminishing further.
Another favorable trend is connected with the
transition to use in the building industry of new-
generation waterproofing underlay. This is an
indicator that Ukraine is gradually moving toward
embracing international standards. However,
there are also problems in this segment. The
biggest problem is an insufficient raw materials
base, which has an impact on the quality of
finished products, as well as their price.
The Ukrainian market today has three generations
of waterproofing materials represented: traditional
ruberoid; roofing with a synthetic base; and so-
called polymer waterproofing (bitumen-free
Prepared by BIZPRO
polymer membranes). Ruberoid is the best-known
roll waterproofing material. It is not, however, rot-
resistant and or very durable. It is gradually being
replaced with new roll materials.
The second generation of roll waterproofing is
represented by a coating, where synthetic
materials (polyester, glass canvas, glass fabric)
are used as a base. Bitumen is modified by SBS
(styrene-butadien-styrene) polymers and APP
(atactic polypropylene), which significantly
improves the material’s elasticity and heat-
resistance.
The capacity of the roll roofing materials market,
according to different operators, varies from 60 to
80 million m2 in 2005. Experts estimate that the
ratio of use of traditional ruberoid and euro-
ruberoid has been equalizing in recent years.
According to some operators, the annual increase
in the capacity of the euro-ruberoid market has
been approaching 50% in recent years. This
situation is justified economically. Despite the fact
that the price of euro-ruberoid is higher than that
of common ruberoid, the service life of the
building in general, and of the roof in particular,
when second-generation materials are used is
higher by an order of magnitude. Cardboard-
based ruberoid is coated in three to five layers;
such a roof needs to be repaired approximately
every three years. The uro-ruberoid service life is
much longer, and it is applied in two layers. It may
be concluded that the savings rate that results
from using second-generation waterproofing
materials should be very substantial nationwide.
Key Producers of Roofing and Waterproofing
Materials
There are about 25 manufacturers on the metal
roofing market. The largest of them are: TPK;
Ruukki; Arsenal; Albatros; Maister-Profi; and
Zakhidspetsprofil. In the second half of 2004 and
in early 2005, there emerged several new
producers of metal roofing tiles, such as Aviks-
Metal, Prushynsky. Arsenal has expanded its
plant network.
The following companies should be noted among
Ukrainian producers of ruberoid and euro-
ruberoid: OJSC Blasto; OJSC Zhytomyr Plant of
Roofing and Waterproofing Materials; Organic
Synthethis Plant (Rubizhne, Luhansk Oblast);
East-Membrane (Kharkiv); OJSC Kyiv
Budindustria Integrated Plant; OJSC Lutsk
Cardboard and Ruberoid Plant; OJSC Lvivpokizol;
CJSC Oreol-1; JSC Ukrvodtekhsnab Production
and Commercial Firm (Kyiv); OJSC Rubitel
(Odesa); OJSC Slavuta Ruberoid Plant;
Skloplastyk Ltd. (Berdyansk, Zaporizhzhya
Oblast); OJSC Budinvest (Kharkiv); Tekhnonikol
Ukrainian-Cyprus Joint Venture; Fibrebit Ltd.
(Kyiv; Arkon Firm Ukrainian-Russian JV; Edelveis
Ltd. (Akvaizol Roofing Materials Plant).
44
On the ceramic roofing tiles and slates market, the
key producers can be identified by their sales
earnings according to SCP: OJSC Ivano-
Frankivsk Cement Slates Integrated Works;
Ekotile Ltd.; Kramatorsky Shyfer Ltd.; Balakliya
Slates Intergrated Plant Ltd.; Volyn-Shyfer Ltd.;
SE Slates Plant (Kyiv); Tekhprom Ltd. (Makiyivka,
Donetsk oblast); OJSC Kharkiv Plant for
Insulating and Asbestos Cement Materials; OJSC
Azboderevsklo; OJSC Zaporizhzhya Plant for
Abestos Cement Products; Kryazh Affilliate of
Private Enterprises; Krasnogvardiysky Slate Plant.
Production of Materials for Floors, Ceilings,
and Stairs
Today, this segment is growing both quantitatively
and qualitatively. The market is being filled with a
new range of products, and goods with new and
improved features. Where floor and stair materials
mostly depend on fashion trends, architectural
innovations, customer preferences and prices, the
use of ceiling materials is more influenced by
functionality, cost, and warranty period.
The market of floor products consists of three
main groups: wood products; ceramic floor tiles;
and linoleum and synthetic carpeting. Wood
products include parquetry, laminated flooring,
bars, planking, and borders for parquet or wood
floors.
The parquet market is the largest component of
the flooring market. Today, the Ukrainian flooring
products market is highly competitive, with
companies trying to win customers, and
competition is becoming tougher in every market
segment, including linoleum and carpeting, and
laminated floors and parquet.
Market experts (Kontrakty / No. 09 of 27 February
2006) note that Ukrainian producers of parquetry
satisfy about 85% domestic market demand.
Imported parquet therefore has a 15%-20% share.
Imports mainly consist of multilayer glued parquet
boards (which account for about 90% of imports),
imported from European countries. Exotic
parquets (merbau, rosewood, bamboo,
mahogany, belau, mersava, etc.) account for
about 3%.
Production of multilayer parquet board is a
promising field. This material has already won its
markets in developed countries and will be soon
replace traditional parquet and laminated floors
(and in some cases, also linoleum) in Ukraine,
especially on residential premises.
Like parquet products, stairs, in addition to their
functional role, also serve as a prominent interior
and exterior component. Today, thanks to use of
new technology, it has become possible to stay
consistent with the interior decoration style and
create modern structures.
Prepared by BIZPRO
A rather wide range of nonmetal materials is used
for making stairs:
- various varieties of wood;
- various types of glass;
- plastics;
- natural stone;
- agglomerates;
- ceramic products, etc.
Only quality wood is used for making stairs, both
for load-carrying structures and decoration.
Softwoods, semi-hard, and hardwoods are used.
Diverse design solutions are implemented based
on compatibility of wood with other materials.
Metal, acrylic glass and ceramics are those most
frequently used.
Manufacturers produce various types of ceramic
products used for finishing steps. Tiles for steps
always have a special anti-slipping component,
which ensures safety of use.
Stairs with steps made of glass or transparent
plastic are becoming increasingly popular. They
use various types of glass and plastic.
The stone for stairs may be extracted only by
drilling stone blocks, rather than by explosive
technique. Marble is used inside buildings,
whereas granite can be used both inside and out.
The stairs market started developing only several
years ago, with the boom in cottage building and
multilevel apartments. The rapidly growing
demand for interior stairs has prompted a number
of makers of traditional joiner’s products
(windows, doors) to start making stairs. Other
important factors also included: the shortage of
these products; the high profitability of production;
the nearly absolute lack of competition
(www.dsnews.com.ua/archive/index.php?action=a
rticle&r_id=18&article_id=18890&arc_num=204).
Today, there is a shortage of this type of product
in the capital and customers often have to wait for
one or two months to have their orders fulfilled.
According to market experts, up to 70% of the
Kyiv market is occupied by small companies,
which make stairs alongside other joinery. The
unique orders on this market allow for higher profit
margins (where prices for materials account for
about 50% of the production cost of common
stairs, they account for about 8% for custom
products). In making premium unique stairs
costing $20,000 to $40,000, a manufacturer’s
profit could be as high as 100%.
Despite shortages, manufacturers are noting that
importers with a current share of not more than
10% are gradually leaving this market. Experts
explain this by citing differences between
45
European and Ukrainian building standards and
the unwillingness of Kyivans to buy standard
series products, adjusting which to suit real-life
dimensions would be complicated and expensive.
It is likely that another round in the cottage
building boom will lead to further market
expansion and company growth.
Key Producers
Making parquet in Ukraine has long been a
traditional business for woodworking plants and
forestry enterprises.
Some 160 to 200 enterprises claim to make it;
however, there are not more than 10-15 serious
parquet manufacturers (that is, with an output of
at least 2,000-3,000 m2 per month).
Conventionally, they can be categorized into two
groups: the “old-timers” and the “new wave” of
enterprises.
The first group includes: Ivano-Frankivsk
Integrated Woodworking Plant; Potutorsky
Woodworking Plant; Kamyanka-Buz’ka Timber
1.3. SALES BY SEGMENT IN 2000-2004
Sales growth of an average annual rate of about
25% was observed in the period of 2000-2004.
The majority of construction materials industry
segments demonstrated sustainable sales growth
of sales in that period, with the rubber and plastics
segments seeing higher rates.
We will now discuss each sector segments in
greater detail.
Prepared by BIZPRO
Industry Complex (Lviv Oblast); Kivertsi Integrated
Woodworking Plant (Volyn Oblast).
The second group comprises the Dim Parketu
Kyiv group of companies, Ineks UkrParket, which
is part of the PIG Concern, Krokus 999, Veles,
Klenovyi Lyst (Kremenchuk), Pyryantynderev
(Pyryatyn, Poltava Oblast), Edelveis (village
Solomonove, Zakarpatska Oblast), Bukovynsky
Parket, Dniprowood (the first manufacturer of
multilayer parquet in Ukraine), and Promarsenal
Plant (Kramatorsk).
Experts say the above group of leaders provides
for 40%-50% of domestic production, which in
general satisfies some 85% of Ukrainian market
demand.
Some domestic manufacturers (primarily joint
ventures) are exporting a lion’s share of their
produce to Europe, and dump only smaller
remaining batches on the domestic make.
Sometimes these are batches rejected by
Western customers.
Average annual growth rate for the whole
nonmetal mineral construction materials segment
amounts to nearly 20%.
The lowest rate, of 5%, was observed in 2001 vs.
2000, and the highest rate, of 38%, was in 2004
vs. 2003.
Also, a decline in sales was observed in the
cement, concrete, and plaster industry in 2001 vs.
2000.
46
 FIGURE 1-16. STRUCTURE OF SALES OF NONMETAL MINERAL MATERIALS IN 2000-2005,
HR MILLION

2645,1

2031,4

2077,8
Hr million

1516,7 1547,2 6486,6

1549,3 1338,8
1046,3
1244,9 4682,7
415,9
954,6 3848,3 256,2
3262,1
126,3 170,5 3767,5
2669,3
64,7 2512,2
1751,8 1737,6
427,6 457,6 441,9 736,7
1407,3
300,6 1185,7 1160,9 1442,2
702,3 1041,7

2000 2001 2002 2003 2004

Sales of other nonmetal mineral products

Brick sales
Sales of concrete, cement, and plaster products and of building mixtures
Sales of dry building mixtures
Cement, plaster, and lime sales
Sales of ceramic tiles
Glass sales
Source: State Statistics Commmittee of Ukraine

Glass Sales absolute value data of Ukraine’s State Statistics

Committee).
Glass sales have been growing at an average rate
of about 20% since 2001 (Based on calculation of
FIGURE 1-17. GLASS SALES GROWTH DYNAMICS IN 2000-2004, HR MILLION

Prepared by BIZPRO 47
 1442,2

1185,7 1160,9
1041,7
Hr million

702,3

2000 2001 2002 2003 2004

Source: State Statistics Committee of Ukraine

56
 TABLE 1-31. DYNAMICS OF GLASS SALES (AS CORE ACTIVITY), HR MILLION
Enterprises with sales more than 0, SCP category 2000 2001 2002 2003 2004
26.11 Production of plate glass 358.2 476.2 471.7 493.9 668.5
26.12 Shaping and processing of plate glass 49.1 85.0 115.5 159.4 168.6
26.14 Production of glass fiber 124.0 135.9 91.8 130.2 94.8
26.15 Production and processing of other types of glass and glass 170.9 344.6 506.6 377.3 510.4
products

Sales of Dry Building Mixtures an average annual increase of sales of about

55%, according to the statistics.
The market volume of dry building mixtures was
gradually growing in Ukraine in 2000-2004, with
FIGURE 1-18. SALES OF DRY BUILDING MIXTURES IN 2000-2004, HR MILLION

485,2*

415,9
Hr million

256,2

170,5
126,3
64,7

2000 2001 2002 2003 2004 2005

Source: State Statistics Committee of Ukraine
* Expert evaluation

Sales of Bricks (Data of the State Statistics Committee of

Ukraine.).
Fig. 1-21 shows the dynamics of brick sales
growth
FIGURE 1-19. BRICK SALES IN 2000-2005, HR MILLION*

2031,4

1547,2
1338,8
Hr million

1046,3
954,6

2000 2001 2002 2003 2004

Source: State Statistics Committee of Ukraine

Prepared by BIZPRO 48
Sales of Ceramic Tiles
According to the State Statistics Committee, there
was a slight decline (3.4%) in ceramic tile sales in balance, with 20% excess over imports). Also,
2003. Despite this fact, however, average annual
sales growth of about 30% was observed in 2000-
FIGURE 1-20. CERAMIC TILE SALES IN 2000-2004, HR MILLION
427,6
Hr m illio n
300,6
2000 2001
Source: State Statistics Committee of Ukraine
Sales of Cement, Plaster, and Lime
A slump in lime sales was recorded in 2001,
based on indicators of all operators active on the
Ukrainian market. However, when evaluating the
sales situation for operators for whom lime
production was a core activity, sales were
growing. The situation as regards cement sales in
2002 is similar. The decline in sales is connected,
to a certain extent, with a 39.5% growth of
exports. Exports, though, continue declining, with
Prepared by BIZPRO
2004. The reduction in sales of ceramic products
on the domestic market in 2003 was caused by
increase in the volume of exports (positive
there was a considerable decline in investment
activity in ceramics production.
736,7
457,6 441,9
2002 2003 2004
an increase of only 9%, whereas sales are
growing at an average of 50% on the domestic
market.
Another important factor affecting sales of these
materials consists in the growing demand for
products made from them. This demand
encourages manufacturers to use their goods as
raw materials and make finished products from
them.
49
 FIGURE 1-21. SALES OF CEMENT, PLASTER, AND LIME IN 2000-2004, HR MILLION

73,8

289,2

50,5

256,1
Hr million

54,0 56,9
3404,5
19,3 186,8 202,0

202,8
2205,6

1510,9 1478,7
1185,2

2000 2001 2002 2003 2004

Cement sales Lime sales Plaster sales

Source: State Statistics Committee of Ukraine

TABLE 1-32. DYNAMICS OF SALES OF CEMENT, LIME, AND PLASTER (AS CORE ACTIVITY), HR
MILLION
Enterprises with sales of more than 0, SCP 2000 2001 2002 2003 2004
category
26.51 Production of cement 686.4 801.7 895.9 1201.4 1753.5
26.52 Production of lime 57.3 55.9 72.0 74.2 86.5
26.53 Production of plaster 13 17.3 18.5 24.2 38.2
TABLE 1-33. DYNAMICS OF SALES OF CEMENT, LIME, CONCRETE, AND PLASTER
(FOR INDUSTRY IN GENERAL), HR MILLION
Enterprises with sales of more than 0, SCP 2000 2001 2002 2003 2004
category
26.51 Production of cement 1185.2 1510.9 1478.7 2205.6 3404.5
26.52 Production of lime 202.8 186.8 202.0 256.1 289.2
26.53 Production of plaster 19.3 54.1 56.9 50.5 73.8

Sales of Cement, Concrete, and Plaster Products

Sales of products made of these materials are about 25%. The highest growth rate, of nearly 40%,
growing rapidly, with an average annual growth of was observed in 2004 vs. 2003.
TABLE 1-34. DYNAMICS OF SALES OF CEMENT, CONCRETE, AND PLASTER PRODUCTS (AS
CORE ACTIVITY), HR MILLION

Enterprises with sales of more than 0, SCP category 2000 2001 2002 2003 2004
26.61 Production of concrete products for use in building 969.9 1192.4 1230.6 1593.4 2457.4
26.62 Production of plaster products for use in building 46.0 68.7 101.6 134.4 164.2
26.63 Production of ready-mixed concrete mixtures 137.9 216.6 224.1 424.8 695.6
26.65 Production of fibrous cement products 197.8 216.6 273.5 336.2 516.6
26.66 Production of other concrete and plaster products 7.5 13.0 14.1 24.8 32.7

Prepared by BIZPRO 50
 TABLE 1-35. DYNAMICS OF SALES OF CEMENT, CONCRETE, AND PLASTER PRODUCTS (FOR
INDUSTRY IN GENERAL), HR MILLION
Enterprises with sales of more than 0, SCP category 2000 2001 2002 2003 2004
26.61 Production of concrete production for use in building 1733.5 2240.6 2348.3 2949.0 4395.0
26.62 Production of plaster products for use in building 101.9 130.3 185.9 266.3 317.6
26.63 Production of ready-made concrete mixtures 417.8 486.5 524.0 783.0 846.1
26.65 Production of fibrous cement products 389.4 366.6 486.3 614.5 808.9
26.66 Production of other concrete and plaster products 26.8 38.2 303.7 70.0 119.0
FIGURE 1-22. SALES OF CONCRETE, CEMENT, AND PLASTER PRODUCTS IN 2000-2004, HR
MILLION

7000
119,0

6000 808,9

846,1
5000 70,0
317,6
614,5
4000
Hr million

38,2 303,7 783,0

486,3
3000 26,8 366,6 266,3
524,0
486,5
389,4 185,9
130,3 4395,0
2000 417,8
101,9 2949,0
2240,6 2348,3
1000 1733,5

0
2000 2001 2002 2003 2004

Sales of concrete products for building uses Sales of plaster products for building uses

Sales of ready concrete mixes Sales of fibrous cement products

Sales of other concrete and plaster products

Source: State Statistics Committee of Ukraine

Sales of Other Mineral Materials and Products
Judging from statistics, producers whose core
activity involves production and sale of mineral
products and materials not included in the above
categories are boosting their production volumes
and sales. If one considers the data for the
industry in general, the growth rate is somewhat
lower, and 2002 even saw some decline (Tables
25 and 26).
The “other nonmetal mineral products” segment
shows an average increase in sales of 22%, when
an enterprise’s core activity is in question. The
highest growth rates are observed in the “stone
dressing” segment, which in 2004 saw strong
growth over 2003. Sales of abrasive products
show more modest growth figures, and even
slumped in 2002 and 2003.

Prepared by BIZPRO 51
 TABLE 1-36. STRUCTURE AND VOLUME OF SALES OF NONMETAL MINERAL PRODUCTS AS
CORE ACTIVITY IN 2000-2004, HR MILLION
Enterprises with sales of more than 0, 2000 2001 2002 2003 2004
SCP category
26.7 Stone dressing 71718.5 96233.3 117569.4 148737.3 209513,9
26.81 Production of abrasive products 266148.6 282627.2 250581.2 260912.8 320483,4
26.82 Production of other nonmetal 176002.4 226123.4 245922.9 405716.0 591622,1
mineral products, not otherwise
categorized
TOTAL 513869,5 604983.9 614073.5 815366.1 1121619.4
TABLE 1-37. STRUCTURE AND VOLUME OF SALES OF OTHER NONMETAL MINERAL PRODUCTS
IN 2000-2004 (FOR INDUSTRY IN GENERAL), HR MILLION
Enterprises with sales of more than 0, 2000 2001 2002 2003 2004
SCP category
26.7 Stone dressing 293706.3 343234.2 401695.8 549431.4 703150,8
26.81 Production of abrasive products 515158.8 521484.4 450985.8 445797.4 572755,4
26.82 Production of other nonmetal 436032.0 684547.8 664029.8 1082552. 1369210,4
mineral products, not otherwise 6
categorized
TOTAL 1244897, 1549266. 1516711. 2077781. 2645116.6
1 4 4 4
FIGURE 1-23. SALES OF OTHER NONMETAL MINERAL PRODUCTS IN 2000-2004 (FOR INDUSTRY
IN GENERAL), HR MILLION

572,8

445,8
703,2
Hr million

549,4
521,5 451,0

515,.2
343,2 401.7
1082,6 1369,2
293,7
684,6 664,0
436,0

2000 2001 2002 2003 2004

Sales of other mineral products Stone dressing Sales of abrasive products

Source: State Statistics Committee of Ukraine

Sales of Varnishes and Paints
In market operators’ opinion, the market
environment for large enterprises is becoming
more favorable. The varnish and paint sector is
experiencing the effects of the current industry
upturn: the demand for industrial paints (for
painting equipment, machine tools, agricultural
machinery, ships) is growing at an equally brisk
pace as the demand for building paints.

Prepared by BIZPRO 52
 FIGURE 1-24. SALES OF VARNISHES AND PAINTS IN 2000-2004, HR MILLION*

1062,8
Hr m illion

803,6
645,3
612,1

451,2

2000 2001 2002 2003 2004

* Acc. To KVED
Source: State Statistics Committee of Ukraine

Sales of Plastics and Rubber housing and utility service lines, and development
of villages and settlements.
The rubber and plastics segment has been
developing in recent years. This has been Rapid growth in sales at an average of 35% was
facilitated by growing volumes of construction, observed for the entire 2000-2004 period (see
greater use of glass-reinforced plastics and other Table 1-38).
plastics products, increase and expansion of
FIGURE 1-25. SALES OF RUBBER AND PLASTICS IN 2000-2004, HR MILLION*

6725,0

4600,4
Hr million

3172,7
2814,2

1996,2

2000 2001 2002 2003 2004

* Acc. To KVED
Source: State Statistics Committee of Ukraine

TABLE 1-38. GROWTH RATE OF RUBBER AND PLASTICS SALES, PERCENT VS. PREVIOUS
YEAR
Year 2001 2002 2003 2004
Growth rate 41.0% 12.7% 45.0% 46.2%

Production of Wood and Wood Products growth of about 20%.

This segment has been demonstrating more
stable growth rates, with an average annual

Prepared by BIZPRO 53
 FIGURE 1-26. SALES OF WOOD AND WOOD PRODUCTS IN 2000-2005, HR MILLION*

3122,3
2625,1

2074,0
Hr million

1685,9
1498,9

2000 2001 2002 2003 2004

* Acc. To KVED
Source: State Statistics Committee

TABLE 1-39. WOOD AND WOOD PRODUCTS SALES GROWTH RATES, PERCENT VS. PREVIOUS
YEAR
Year 2001 2002 2003 2004
Growth rates 12.5% 23.0% 26.6% 19.0%

1.4. VOLUME AND STRUCTURE OF SECTOR’S EXPORT IN 2000-2004

Export and import volumes of construction
materials grew at an average of 20% in Ukraine in
2000-2004. The volume of imports amounted to
$1,155.2 million at the end of 2005, with exports
of $1,160.2 million.
Ukraine has significant potential for export of raw
materials, including those used in making
FIGURE 1-27. STRUCTURE AND DYNAMICS OF EXPORTS IN CONSTRUCTION MATERIALS
SECTOR IN 2000-2004
construction materials. Raw material for
production of ceramic articles is exported as
refractory clay (85%-87% by volume and 75%-
78% in monetary terms). Kaolin and kaolin clay
takes second place (up to 9% by volume and 18%
in monetary terms). The increase in raw materials
exports slowed down substantially in 2005, which
correlates with a slowing down of production.

500 490,4
428,0
450
380,8
400
337,3
350
277,4
300 266.8
USD million

241,2
250 210,4 208,1 220,9

200

150
90,3
100 62,5 54,9
40,1
50 22,7 4,5 16,3
1,1 1,8 10,5
0
2000 2001 2002 2003 2004

Export of wood and wood products Export of varnishes and paints

Export of plastics and rubber Export of mineral products

Sources: State Statistics Committee

Prepared by BIZPRO 54
Ukrainian producers are boosting the rate and
volume of exports. This is the result of a number
of factors:
- producers’ implementation of international
quality certification systems;
- expansion of their own production facilities and
output;
- investments in modernization of enterprises;
- international companies establishing affiliates
and enterprises on the Ukrainian market, etc.
The main bulk of export is made up of rubber and
plastics, wood and wood products, and mineral
materials and products. For more details, see
Tables 3 and 4 in the Appendices.

TABLE 1-40. NONMETAL CONSTRUCTION MATERIALS EXPORT GROWTH RATE IN 2000-2004

Product 2001 2002 2003 2004
Mineral products and materials 15.9% 10.6% 26.4% 26.9%
Wood and wood products 4.8% 25.7% 37.3% 28.8%
Rubber and plastics 76.7% 55.9% -12.2% 64.5%
Varnishes and paints 11.8% -30.1% 37.2% 40.3%

The main exports in the mineral materials and products. These products are more competitive in
products segment include plate glass, ceramic terms of production costs and conformity with
products, bricks, and cement, plaster, and lime international quality standards.

TABLE 1-41. MINERAL MATERIALS AND PRODUCTS EXPORT GROWTH RATE IN 2000-2004
Product 2001 2002 2003 2004
Glass and glass products 27.9% -4% -8.7% 45%
Ceramic products 0.6% -0.5% 13.4% 47.8%
Bricks -30% 423.8% 164.7% 91.3%
Cement, concrete, plaster, and lime 39.5% 39.7% 9.3% 9.4%
products
Other mineral products and materials 21.7% 9.4% 38% 18.7%

It seems justified to single out the roofing amounted to $14.6 million and $3.2 million,
materials and flooring segments in which export respectively, in 2004.

FIGURE 1-28. STRUCTURE AND DYNAMICS OF EXPORT OF ROOFING AND FLOOR MATERIALS
IN 2000-2004*

15,8
16 14,6

14 12,7

12
9,7
10
USD million

8 6,3

6 4,6
3,2
4

2 0,6 0,7
0,2

0
2000 2001 2002 2003 2004

Roofing materials Flooring materials

Source: State Statistics Committee

Prepared by BIZPRO 55
 TABLE 1-42. STRUCTURE OF EXPORTS IN 2001-2004
2002 2003 2004
Percent
Value, $ Value, $ Percent Value, $ Percent vs.
vs.
thousand thousand vs. 2002 thousand 2003
2001
Mineral products 2244887.9 128.3 3499799.1 1.6 times 4323711.1 123.5
more
Cement 158254.3 116.4 207017.1 130.8 257621.6 124.5
Chemical industry 67503.2 137.1 88027.3 130.4 171532.2 1.9 times
products more
Polymer materials, 158703.6 130.5 257005.8 1.6 times 307477.3 119.7
plastics more
Caoutchouc, rubber 104031.5 77.3 104047.8 100.0 131768.1 126.6
Wood and wood 289678.9 126.0 400399.0 138.2 516521.7 129.0
products
Stone, plaster, and 35792.9 101.6 50155.8 140.1 56718.5 113.1
cement products
Ceramic products 44848.5 99.5 50851.2 113.4 75132.9 147.8
Glass and glass 66657.5 109.4 130266.0 2 times 149058.1 114.4
products more

There exists today a relatively large group of dynamic, and profitable. The most important
exporters and importers of construction materials exporting producers and importers can be singled
and products, as this market is promising, out from this group.

TABLE 1-43. CONSTRUCTION MATERIALS EXPORTERS AS OF THE ONSET OF 2006

Exporter Exported products
Dniprokeramika Porcelain and ceramic products
Slavuta Budfarfor Integrated Works Sanitary ceramics
PE SIO Wood products
The Carpathian State Specialized Forestry Lumber
Zhovkva Forestry Deciduous firewood for process applications
OJSC Zakarpatnerudprom Lumber
CJSC Ukrskloprom Glass products
Lysychansk Proletariy Plant Plate glass
Budsklo Plate glass
JV Sanza TOP Ltd. Wood products
CJSC VESKO Refractory clay
OJSC Druzhkivka Ore Mining Authority Refractory clay
Khersonelektro Ltd. Floor tiles
OJSC Doncement Portland cement
OJSC Balcem Portland cement clinker
OJSC Kramatorsk Cement Plant Portland cement
OJSC Starokostyantynivsky Specialized Quarry Crushed granite aggregate
OJSC Hnivansky Quarry Crushed granite aggregate
OJSC Vatutinsky Integrated Refractories Plant Kaolin
OJSC Kirovohrad Ore Mining Authority Kaolin
OJSC Zaporizhzhya Integrated Abrasives Plant Bakelite bond, reinforced grinding wheels
OJSC Ivano-Frankivsk Cement Building plaster
OJSC Mamalyhivsky Plaster Plant Building plaster
NOVOSELIVSKY MINING AND Extraction, concentration, and supply of quartz sand
CONCENTRATION INTEGRATED WORKS
OJSC Kyiv Rubber and Latex Products Plant Soundproofing lining materials
OKSC Experimental Plant of Reinforced- Reinforced-concrete ties
concrete Ties
JSC LekKhim Organic-synthetic dyes
OJSC Dnipropetrovsk Vanish and Paint Plant Polyester-based enamel paints
ZDP Kremniypolimer Organic varnish
OSCJ Sumykhimprom Titanium dioxide

Prepared by BIZPRO 56
OSCJ Ovruch Kvartsyt Mining and Concentration Quartzite
Plant
CJSC Elgran Granite blocks
PE Karavela Concrete facing bricks
Kharkivska Keramika Ltd. Ceramic tiles
Rehau Ltd. Plastics

According to the survey data, the main external - Belarus

markets for Ukrainian companies include: CIS - Kazakhstan
countries (20.5%), European countries (11.5%),
and Canada and the USA (4%). The European Let us consider in greater detail the export of
countries in which Ukrainian producers have the certain types of products under review.
largest market presence include:
Exported Ukrainian varnish and paint materials
- Germany are mainly certain types of cheap organic solvent-
- Italy based products, including primers, fillers, etc.
(these products account for about 50% of exports)
- Poland (Budivelnyi Zhurnal, No.5, 2006, p.35).
- UK
Russia is the main customer for Ukrainian varnish
- Hungary and paint materials. Moldova is the second largest
- Cyprus importer, with nearly a third of organic solvent-
- Slovakia based materials. Overall, more than 95% of
products of this group are exported to former
- Latvia Soviet countries. Small deliveries are made to
- Estonia Belarus, Kazakhstan, Moldova, and Russia.
Ukrainian producers export mainly titanium
Producers work the most actively with the dioxide to China, Hong Kong, and Egypt.
following CIS countries:
Thanks to brisk domestic demand for bricks,
- Russia exports of facing bricks remain low. However,
- Moldova some growth is being seen. Facing bricks are
mainly exported to CIS countries, where there is a
- Armenia
high demand for them, and where and there is
- Georgia loyalty to quality Ukrainian products. Kazakhstan
- Uzbekistan and Russia account for the main share of
Ukrainian facing brick exports.
1.5. VOLUME AND STRUCTURE OF SECTOR’S IMPORT IN 2000-2004
Statistics show that the import of materials of stairs, and ceilings account for the main share of
Ukraine has natural reserves is increasing slightly. imports. As the Ukrainian construction materials
The main imports are of products that require market is moving ahead and evolving, one-family
sophisticated processing and manufacturing, as houses and “Euro” type renovations are becoming
the technology level of Ukrainian facilities does more popular. In such houses and renovations,
not allow for full satisfaction of domestic market parquet is often replaced with imported three-layer
needs. Roofing materials and materials for floors, boards and laminate flooring.

TABLE 1-44. NONMETAL CONSTRUCTION MATERIALS IMPORT GROWTH RATE IN 2000-2004

Products 2001 2002 2003 2004
Mineral products and materials 17.2% -5.5% 35.3% 32.5%
Wood and wood products 34.9% 17.7% 48.1% 35.9%
Rubber and plastics 35.5% 17.9% 34.8% 27%
Varnishes and paints 14% 16% 44.9% 23.1%
Roofing materials 100% 0 25% 140%
Materials and products for floors, ceilings, 63.6% 150% 133.3% 55.2%
stairs

Prepared by BIZPRO 57
 TABLE 1-45. MINERAL MATERIALS AND PRODUCTS IMPORT GROWTH RATE IN 2000-2005,
PERCENT AGAINST PREVIOUS YEAR
Products 2001 2002 2003 2004
Glass and glass products 51.9% 48.4% 39.4% 66.7%
Ceramic products 15.8% 4.6% 38.2% 26.8%
Bricks -0.7% -9.5% 41.7% 12.1%
Cement, concrete, plaster, and lime 41.9% 33.2% 29.1% 51.8%
products
Other mineral products and materials 33.1% -18.3% 41% 40.7%
FIGURE 1-29. IMPORT STRUCTURE AND DYNAMICS IN CONSTRUCTION MATERIALS SECTOR IN
2000-2004

600
519,9

500

392,3
400 369,6
USD million

306,7 291,0
289,9
300 261,7
215,8
183,0
200
134,7
135,1 131,0
109,4
96,4
100 65,1 75,5
57,1 65,1
41,0 55,3

0
2000 2001 2002 2003 2004
Import of wood and wood products Import of varnishes and paints
Import of plastics and rubber Import of mineral products

Source: State Statistics Committee

Of these, roofing materials and flooring materials million, respectively.

segments amount to $6 million and $16.3

Prepared by BIZPRO 58
 FIGURE 1-31. STRUCTURE AND DYNAMICS OF IMPORT OF ROOFING MATERIALS AND
FLOORING MATERIALS IN 2000-2004

18 16,3

16

14

12 10,5
USD million

10

8
6,0
6 4,5

4 2,5
2,0 1,8 2,0
1,0 1,1
2

0
2000 2001 2002 2003 2004

Import of roofing materials Import of flooring materials

Source: State Statistics Committee

TABLE 1-46. STRUCTURE OF IMPORT IN 2001-2004

2002 2003 2004
Value, $ Percent Value, $ Percent Value, $ Percent vs.
thousand vs. 2001 thousand vs. 2002 thousand 2003
Mineral products 7047279.3 104.8 8479149.7 120.3 10845385.8 127.9
Cement 107260.6 79.2 137518.2 128.2 180227.4 131.1
Chemical industry 271975.1 141.7 239799.2 88.2 312593.1 130.4
products
Polymer materials, 552773.0 119.3 791657.1 143.2 1070933.4 135.3
plastics
Caoutchouc, rubber 183460.9 78.5 242979.9 132.4 335681.4 138.2
Wood and wood 84998.2 116.2 124626.7 146.6 156316.6 125.4
products
Stone, plaster, and 53545.0 107.6 72882.1 136.1 108966.5 149.5
cement products
Ceramic products 92078.9 106.4 126154.7 137.0 163129.2 129.3
Glass and glass 56735.3 117.4 81841.6 144.3 119047.1 145.5
products
TABLE 1-47. KEY IMPORTERS IN CONSTRUCTION MATERIALS SECTOR AS OF EARLY 2006
Name of importer Imported product
SE Komertse EV Plaster building mixtures
Agro-Soyuz Company Ltd. Volcanite hoses
SE Kopos Elektro UA Flexible vinyl chloride polymer piping
Vezha Company Ltd. Lumber
KSK Ltd. White cement
Lamela Ltd. Dyes
Ukrainian-Slovakian Joint Venture Foam polyethylene heat-insulation
Stary UZH Ltd. Abrasive powder

Prepared by BIZPRO 59
 Name of importer Imported product
OJSC PTC Agromat, OJSC Keramin- Ceramic tiles
Kyiv Trading Housing, CJSC Kray
Kerama, OJSC Triumfbud, OJSC
Bareks Ltd., OJSC Transnational
Commodity Group
Khersonelektro Ltd. Fiber boards
Kapri Ltd. Dry building mixtures
JSC Nord Concentrate for polystyrene dyeing
CJSC Alcest Plastic hoses and connecting parts
CJSC Kapital Paints and varnishes, dyes
CJSC Svitanok Glass and glass products
Artemivsk Plant Refractory brick
Yenakiyeve Metallurgical Plant Refractory brick
Zaporizhzhya Integrated Abrasives Feldspar
Plant
OJSC Sumykhimprom Calcium phosphate
OJSC MK Azovstal Magnesite powder, magnesia
MVA Ltd. Flooring (laminate, parquet, etc.)
Fisher-Mukachevo Ltd. » Plastics and rubber, varnishes and paints, dry building mixtures

European countries, CIS states, and the USA are supply products both for production of
the main partner countries for Ukrainian operators construction materials and for sale.
on the construction materials market, which
TABLE 1-48. IMPORTED PRODUCTS AND MAIN PARTNER COUNTRIES FOR UKRAINIAN MARKET
OPERATORS
Country Main imports
Poland Chalk, ceramic tiles
Spain Ceramic tiles, mineral filling materials for tiles
Germany Quartz sand, quartzite, refractory clay, ceramic tile
Russia Chalk
USA Bentonite, calcium carbonite, ceramic tiles
UK Phosphates, marble, plaster, tiles
Italy Ceramic products, tiles
Switzerland Clarifying concentrate, white cement
Moldova Plaster stone
Turkey Alumina-magnesium brick, dry building mixtures
France Mineral substances, refractory claims for brick plants

Imports in the subsegments of particular sectors
needs to be discussed separately. The Ukrainian
plastic and metal-plastic piping market has a
wide representation of foreign manufacturers,
such as: Aquatherm, Ostendorf, Omniplast
Alphakanта, TECE, REHAU, Polymelt
Kunststofftechnik GmbH and Magnaplast
(Germany);
- Czaplinski, GSP Group (trademark U.S. Metrix),
SKOPLAST, Plastimexта KACZMAREK (Poland);
- EKOPLASTIK and FV-Plast (Czechia);
- Genova System (USA);
- KWH PIPE and Uponor (Finland);
- Martoni and Prandelli (Italy);
- Uponor Wirsbo AB (Sweden),
- Wavin (the Netherlands), and others.
According to the Association of Producers and
Builders of Polymer Pipelines, import of polymer
pipes amounted to approximately 4,800 meters
worth $6.4 million in 2002, and 6,900 meters
worth $9.3 million in 2003.
One of the main trends in the dry building
mixtures segment in recent years has been the
ongoing decrease in imported products. Even
today, the Ukrainian goods are almost on a par
with foreign goods in terms of product range. This
is due first of all to increased Ukrainian production
of dry building mixtures, with market leaders
proactively boosting their production capacities
and expanding their product ranges. Key
importers include Knauf, an international concern
(import deliveries are from plants in Turkey and
Moldova), trademarks Dufa (Germany), Kerakoll
(Italy), Mapei, Litokol, and Sopro (Italy), Semin
(France), and Atlas (Poland). Atlas is widely
represented in western Ukraine, being one of the
largest producers of dry building mixtures in

Prepared by BIZPRO 60
Europe and holding about 50% of the Polish
market (The Kontrakty Ukrainian business weekly
(No.22 of 30 May 2005)). Foreign manufacturers
are most active in the troweling materials,
decoration plaster, façade heat-insulating system,
and professional flooring segments.
Based on the data from the Ukrainian Association
of Producers of Dry Building Mixtures (“UAVS”),
250,000 tons of plaster mixtures had to be
imported into Ukraine in 2005. This material was
mainly produced in Turkey (and was mostly of the
Satengips and Izogips trademarks). The
Association argues that the pricing policy of these
TMs is based on dumping. Besides, a significant
portion of these goods entered the country
through “gray” channels. As the ZED foreign trade
classifier does not as yet have customs codes for
dry mixtures, they could be easily declared as
gypsum, at a very low customs value of $70-$80
per ton. Taking into account that the retail prices
of these mixtures are Hr1.1 to Hr1.4 per kilogram
(about $250 per ton), the profitability of this import
is obvious. Indeed, the Turkish plaster mixtures
saw a huge leap in sales in 2002-2004. Imports
accounted for more than 85% of the plaster
market in 2004. When the Ukrainian Knauf plaster
mixture plant started production in 2005, the share
of imports on the “plaster” market dropped to
65%. Nevertheless, any “victory over Turkish
goods” will take place in the future.
In the paints segment, goods are imported from
many countries, including Belarus, Germany, the
Netherlands, Spain, Italy, Latvia, Poland, Russia,
the USA, Turkey, Finland, France, Sweden,
Estonia, and others. The following import brands
are the best known on the Ukrainian market:
Sadolin, Vivacolor, Tikkurila, Tikkolor, Diamant,
Oikos, Jobi, Dufa, Pinotex, Caparol, Casko,
Fractalis, Feidal, Belinka, Sniezka, Marshal.
The largest share (45%-50%) (Budivelnyi Zhurnal,
No.5/2006, p.34) of imported goods are of
Russian and Belarusian origin. Germany holds
second place in terms of import volume, with over
20% (Caparol, Feidal, Dufa, Flamingo, ProfiTec,
Mipa, Tex-Color trademarks). Polish varnish and
paint materials occupy third place (in particular,
the Sniezka trademark, which holds about 15% of
the market). About 10% of varnishes and paints
are imported from the Scandinavian and Baltic
countries, including such well-known trademarks
as Tikkurila, Vivacolor, Sadolin, Pinotex, and
Beckers. Products made by other West European
manufacturers are imported on a much smaller
scale, including: Jobi (the Netherlands), CAP and
Oikos (Italy), Jafep (Spain), Eskaro (Estonia),
Rigas Gruntas Krasas (Latvia), Marshall (Akzo
Nobel’s Turkish plant), and Tik Kolor (a Russian
enterprise of the Tikkurila concern).
In the facing bricks sector, there is a demand on
the part of a higher-income demographic group.
Prepared by BIZPRO
The main share of exports is from Poland and
Belarus, due to lower prices as compared with
German products. For buyers with higher quality
demands, there are imports from Germany,
Belgium, and Finland.
Overall, the following items seem to be the most
promising for foreign suppliers:
1. Linoleum over 2 mm wide with quality color
coating.
There are about 3 million m2 of linoleum worth $12
million produced in Ukraine annually, which
makes up 20% of the market in money terms and
30% in physical volume.
2. Carpets and other textile floor coverings.
There is only one manufacturer in Ukraine
capable of producing more than 1 million m2 of
carpets per years; however, due to raw material
supply problems, it does not operate at full
capacity.
Ukrainian carpets account for 20% of the market,
and their value (about $4 million) amounts to 10%
of it.
3. Ceramic tiles for interior walls, with a wide
variety of colors and sizes.
According to Ukrbudmaterialy Corporation data,
there are about 7 million m2 of tiles, worth $14
million, produced in Ukraine yearly. Ukrainian
manufacturers are annually selling about 6 million
m2 on the domestic market, which makes up 40%
of the market.
4. High quality wallpaper in a wide range of colors.
Ukrainian enterprises are annually producing
about 90 million rolls of wallpaper, worth $130
million in wholesale prices. Domestic
manufacturers satisfy 40% ($100 million) of
domestic market demand. However, they export
up to 50% ($30 million) of their produce, mainly to
the CIS countries.
5. Insulating materials.
Imported mineral wool enjoys a brisk demand with
end users (better packaging), and imported
insulating materials have a wider range of sizes
and prices.
6. Paints.
Domestic production is quite robust (there are
about 40 companies), but it mostly concentrates
on oil paints. Ukrainian manufacturers are mainly
using domestic raw materials; however, they
import stock for acrylic paints. Some 50% of the
paints produced in Ukraine are intended for
industrial applications (machine-building, furniture-
making, etc.) or exported to neighboring countries.
61
The other 50%, amounting to 45,000 tons ($120
million), are for sale.
7. Steel sandwich modules for erecting
supermarkets and other industrial facilities that
require modern construction materials.
1.6. VOLUME OF FOREIGN DIRECT INVESTMENT IN 2000-2004
The investment attractiveness of the construction
materials sector is a result of Ukraine’s improved
economic climate, a stable political situation, a fall
in risk of investment, development of the
construction materials trade sector, increased
production volume, and growing demand for non-
residential (office, commercial) buildings.
Increases in capital construction by nearly 30%
and in private building (35%-40%) (Komertsiyna
Nerukhomist (Commercial Property) of 19
September 2005) in 2000-2005 are indicators of
the beginning of a building boom in the country.
Such circumstances are favorable for attracting
foreign investors.
The greatest number of investors come from
Russia, Germany, the UK, Italy, France, and
island nations. The number of investors and the
amounts of money they are investing, however,
are too small, being hampered by imperfections in
FIGURE 1-32. STRUCTURE AND DYNAMICS OF FOREIGN DIRECT INVESTMENT IN 2000-2004, HR
MILLION
Today, these products are imported from
Germany, Finland, Poland, Czechia, and other
countries.
the existing legislation, an insufficiently stable
immediate political situation (after the presidential
and parliamentary elections and political reform),
high taxes, and a lack of an investment insurance
system.
Normally, investors prefer to build new production
facilities or open branches or affiliate companies
rather than reconstruct and modify existing
facilities. This is due primarily to the fact that
existing facilities do not conform to modern
manufacturing standards. Still, the majority of
foreign investors are investing in existing
enterprises, launching new production lines,
financing development of retail chains, developing
and promoting new trademarks, and modernizing
enterprises. In the 2000-2004, the most exciting
segments for foreign investors were production of
rubber and plastics, glass, cement, concrete, lime,
and plaster.

140
124,6 126,0

120

100

80 77,3
Hr million

67,4 62,4
63,9
56,9
60
48,1 46,7
37,9 39,7
40 34,7 37,5
31,0 36.4 31,7
27,6 27,0
20,6 23,7
21,2 20,0 19,2
20 16,5 15,4 14,7
11,0 11,2 15,9
3,0
6,9 2,5 8 10,2 9,4 4,8 9.9
6,6 7,2 2,1
0,4 2,2 1,6 1,5 2,8 1,9 1,7 1.7 2,0
0 0.4
as of early 2001 as of early 2002 as of early 2003 as of early 2004 as of early 2005

Production of wood and products Production of varnishes and paints

Production of rubber and plastics Production of glass
Production of ceramic tiles Production of bricks
Production of cement, lime, and plaster Production of concrete, cement, and plaster produ
Production of dry building mixtures Production of other mineral materials and products

Source: State Statistics Committee

Prepared by BIZPRO 62
 TABLE 1-49. STRUCTURE AND DYNAMICS OF FOREIGN DIRECT INVESTMENTS IN 2000-2004,
HR MILLION
Enterprises with sales of more than 0, As of early As of As of As of As of
SCP category 2001 early early early early
2002 2003 2004 2005
Production of wood and wood products 16.5 20.6 27.0 37.9 48.1
Production of varnishes and paints 3.0 2.5 2.8 4.8 6.6
Production of rubber and plastics 63.9 67.4 77.3 124.6 126.0
Production of mineral nonmetal 65.1 92.3 120.1 153.3 193.2
materials:
Production of glass and glass products 27.6 31.0 34.7 36.4 46.7
Production of ceramic tiles 0.4 0.4 1.9 1.7 7.2
Production of bricks 6.9 8.0 9.4 9.9 15.9
Production of cement, lime, and plaster 2.2 21.2 37.5 56.9 62.4
Production of concrete, cement, plaster, 11.0 10.2 11.2 14.7 19.2
and lime products
Production of dry mortar mixtures 1.6 1.5 1.7 2.0 2.1
Production of other mineral products 15.4 20.0 23.7 31.7 39.7
and materials

However, not all the investment areas are - Extraction of clay shale;
characterized by a positive balance. For instance,
there were significant (over $1 million) investment - Production of ceramic sanitary ware;
outflows in the rubber goods production segment - Production of ceramic insulator parts for ceramic
(minus $2 million) in 2001, in exploration of gravel insulators;
and sand pits (minus $3 million) in 2003, in
production of rubber goods (minus $20 million) - Production of other industrial ceramic products;
and extraction of building stone (minus $3 million)
in 2004, and production of concrete and plaster - Production of other ceramic products;
products (minus $1 million) in nine months of
- Production of fibrous cement products;
2005.
- Production of other concrete and plaster
Some segments within the sector are unattractive
products.
for investors in general, with no or minimal
investments. This primarily applies to:
TABLE 1-50. GROWTH RATE OF FOREIGN DIRECT INVESTMENTS IN THE CONSTRUCTION
MATERIALS SECTOR IN 2000-2004
SEGMENT 2001 2002 2003 2004
Production of wood and wood products 24.8% 31.1% 40.4% 26.9%
Production of varnishes and paints -16.7% 12% 71.4% 37.5%
Production of rubber and plastics 5.5% 14.7% 61.2% 1.1%
Production of mineral nonmetal materials 41.8% 30.1% 27.6% 26%
Production of glass and glass products 12.3% 11.9% 4.9% 28.3%
Production of ceramic tiles 0 375% -10.5% 323.5%
Production of bricks 15.9% 17.5% 5.3% 60.6%
Production of cement, lime, and plaster 864.9% 76.7% 51.7% 9.7%
Production of concrete, cement, plaster, and lime -7.3% 9.8% 31.3% 30.6%
products
Production of dry mortar mixes -6.3% 13.3% 16.5% 6.1%
Production of other mineral products and 29.9% 18.5% 33.8% 25.2%
materials

Prepared by BIZPRO 63
2. PRODUCTION
2.1. ORGANIZATION AND STRUCTURE OF PRODUCTION
There are construction materials production
facilities in nearly all parts of Ukraine. According
to Ukraine’s State Statistics Committee, there are
nearly 9,000 plants, firms or organizations
employing more than a million persons.
The range and quality of Ukrainian products,
however, does not always comply with the
requirements of modern building practices.
This significant gap is due to the inadequate
technological level of production. Investment and
innovation projects are needed.
The greatest numbers of construction materials
producers are concentrated in Kyiv, Lviv, Kharkiv,
Donetsk, Sumy, and Zhytomyr oblasts. About
76% of the enterprises are based in oblast
centers, 18% in other towns, and 4% in villages
and urban-type settlements (data of a survey of a
group of construction materials manufacturers
conducted in April 2006 upon BIZPRO’s
commission).
Essentially, construction sector enterprises have
similar organizational structures. The main
differences involve the number of active shops,
additional units, and the number of employees.
Enterprises working on foreign markets and those
that have received international quality certificates
have organized their production and management
in accordance with international standards. Their
employees have appropriate qualifications.
The production is ensured by:
- Shops for product manufacturing and packaging.
The number of shops in an enterprise depends on
the number and variety of production lines,
enterprise size, and production volume.
- A quality control department
- A laboratory for testing product conformity with
state standards and international standards;
Prepared by BIZPRO
- A mechanical repair department
- Warehouse facilities
- A motor transport department.
The administration and management are
comprised of:
- Director
- Chief engineer
- Finance or planning and economics department
- Personnel department
- Sales or commercial department
- Labor protection department
- Production and technical department
- Quality control department.
A minority of enterprises (about 10%-20%) also
have marketing departments. These are mainly
companies that adhere to international
management standards and have a foreign
investor and affiliates of foreign manufacturers.
The majority of enterprises have their own testing
and research laboratories and R&D departments,
which mainly concentrate on developing new
products, testing their own products, and
comparing those products with the competition’s.
Construction materials enterprises are distributed
rather uniformly throughout Ukraine; however, the
largest number of such enterprises are
concentrated in Lviv and Kharkiv oblasts.
This concentration is due to the operation of free-
economic zones in the area and the proximity of
raw materials sources in the oblasts.
65
 TABLE 2-1. STRUCTURE OF ADMINISTRATIVE-TERRITORIAL LOCATIONS OF CONSTRUCTION
SECTOR PRODUCERS
Oblast Number, %
Lviv 10%
Kharkiv 10%
Kyiv City 9%
Donetsk 8%
Zhytomyr 6%
Zaporizhzhya 5%
Ivano-Frankivsk 4%
Poltava 4%
Sumy 4%
Kherson 4%
Khmelnytsky 4%
Kyiv 3%
Mykolaiv 3%
Odesa 3%
Crimea 2%
Vinnytsya 2%
Volyn 2%
Dnipropetrovs’k 2%
Zakarpatska 2%
Kirovohrad 2%
Luhansk 2%
Rivne 2%
Ternopil 2%
Cherkasy 2%
Chernivtsi 2%
Chernihiv 1%
FIGURE 2-1. STRUCTURE OF ADMINISTRATIVE-TERRITORIAL LOCATIONS OF CONSTRUCTION
SECTOR PRODUCERS

9.00% 10.00% 10% 8% 6% 5% 52%

0% 30% 60% 90%

Kyiv Kharkiv Lviv Donetsk Zhytomyr Zaporizhzhya Other oblasts

Construction materials are made at enterprises of for the absolute majority of employment.
different sizes; however, large enterprises account
TABLE 2-2. ENTERPRISE SIZE AND EMPLOYMENT
Enterprise size Number of enterprises, Employment, percent of the total
percent of the total number employment in the sector
in the sector
Small 43.4 1.5
Medium 34.4 7.0
Large 22.2 91.0
Total 100.0 100.0

Prepared by BIZPRO 65
More than half of construction sector enterprises enterprises, operating since the Soviet era (more
have operated on the Ukrainian market for up to than 50 years).
ten years; however, about 10% are older
FIGURE 2-2. CONSTRUCTION SECTOR ENTERPRISES’ DURATIONS OF OPERATION

10,8

15
10 years or less
11 to 30 years
31 to 50 years
56,7 more than 50 years

17,5

Based on 2005 performance, 53.7% of companies in 2005 against 2004 (62.7%), while
enterprises evaluated their position as profitable; only 13.1% of companies testified to a decline in
36.3% said they were breaking even; and 10% the production volume. Every fifth company
said they saw losses in 2005. Production volume (20.5%) noted no change.
in physical terms increased for the majority of
FIGURE 2-3. CHANGE OF PRODUCTION VOLUME FOR COMPANIES IN CONSTRUCTION
MATERIALS SECTOR IN 2005, AS AGAINST 2004

3,3
6,6

Production volume increased

Production volume decreased

20,5
Production volume unchanged

56,6 Difficult to tell

Refused to answer
13,1

S
ource: Survey of 122 enterprises in the construction materials sector.

Among enterprises where production volume
increased, the increase averaged 32.8%;
production volume decline averaged 23.1%.
Also, the production volume increase is more
typical for large companies, where production
volume in physical terms increased by 74.1%. But
this indicator is 56.4% for medium-sized
enterprises and 61.4% for small enterprises.

Prepared by BIZPRO 66
 FIGURE 2-4. CHANGES IN PRODUCTION VOLUME AT CONSTRUCTION MATERIALS
ENTERPRISES OF DIFFERENT SIZES IN 2004

Large enterprises 74.1 11.1 14.8

Production volume increased
Medium-sized Production volume decreased
56.4 15.4 28.2
enterprises
Production volume unchanged

Small enterprises 61.4 15.9 22.7

The indicators showing changes in utilization of registered at 41.8% of enterprises. For 37.7% of
production capacity in 2005 compared to 2004 enterprises, production capacity utilization
appear to be somewhat lower, with increases percentage did not change.

FIGURE 2-5. CHANGES IN PRODUCTION CAPACITY UTILIZATION AMONG CONSTRUCTION

MATERIALS ENTERPRISES IN 2005, COMPARED TO 2004

3.3
7.4

Increased
41.8 Decreased
Unchanged
Difficult to tell
37.7
Refused to answer

9.8

Among enterprises where production capacity companies, where approximately the same
utilization increased, the increase averaged percentages of enterprises (51.9% and 48.7%,
31.7%, with an average decrease in utilization of respectively) showed an increase in this indicator.
22.7%. There were only 41.9% such producers among
small enterprises.
The increase of production capacity utilization was
more pronounced among large and medium-sized
FIGURE 2-6. CHANGE IN PRODUCTION CAPACITY UTILIZATION AMONG CONSTRUCTION
MATERIALS ENTERPRISES OF DIFFERENT SIZES IN 2005, COMPARED TO 2004

Large enterprises 51.9 11.1 37

Utilization increased
Medium-sized Utilization decreased
48.7 12.8 38.5
enterprises
Utilization unchanged

Small enterprises 41.9 9.3 48.8

Prepared by BIZPRO 67
Significant qualitative changes have been
underway in the last two years (2002-2005) in
terms of the structure of production and
organization of construction materials. Enterprises
are introducing new technology; modernizing their
facilities (mainly through foreign direct
investments and own capital); introducing foreign
technology and implementing international quality
assurance systems.
Thanks to stabilization of economic and regulatory
policy, importers are opening branches and
production facilities in Ukraine, which is resulting
in production growth in the sector, in both
quantitative and qualitative terms. Transition is
FIGURE 2-7. CHANGES IN PRODUCT RANGES OF CONSTRUCTION MATERIALS ENTERPRISES
IN 2005, COMPARED TO 2004, PERCENT OF ENTERPRISES
6.6 2.5
48.4
2.2. TECHNOLOGICAL LEVEL AND RE-EQUIPMENT OF SECTOR ENTERPRISES
More than 30% of enterprises had been in
operation for more that ten years in Ukraine as of
the end of 2005. This suggests that they need to
be modernized, and supplied with new equipment.
As of today, investments in improving the
performance of existing facilities are insufficient.
FIGURE 2-8. PROCUREMENT OF EQUIPMENT BY ENTERPRISES IN THE CONSTRUCTION
MATERIALS SECTOR IN 2005, PERCENT OF ENTERPRISES
37.5
Source: Survey of 120 enterprises in the construction materials sector.
There are some differences in this respect
between enterprises of different size. The largest
proportion of those buying equipment are large
companies (81.5%), whereas only 61.0% are
Prepared by BIZPRO
underway to production of materials and products
needed by the market (based on new technology,
with new properties and functions) and that
conform to modern building requirements and can
replace imported products (ceramic products,
wood products, varnishes and paints, mineral
materials and products, bricks, dry building
mixtures).
Quite a significant proportion of enterprises have
renewed their product ranges. According to the
survey, 37.7% expanded the range of their
products. Some 48.4% kept their product ranges
virtually unchanged.
37.7 Product range increased
Product range decreased
Product range unchanged
Difficult to tell
Refused to answer
4.9
According to the survey, the majority of
enterprises in the construction materials sector
(62.5%) were buying equipment in 2005. A little
more than one third of enterprises (37.5%) did not
buy equipment.
Enterprises, which bought
equipment
Enterprises, which did not buy
equipment
62.5
medium-sized and only 53.8% are small. It can be
assumed that large enterprises pay more attention
to upgrading production and have greater financial
capacity for it.
68
 FIGURE 2-9. PROCUREMENT OF EQUIPMENT BY CONSTRUCTION MATERIALS ENTERPRISES
OF DIFFERENT SIZES IN 2005, PERCENT OF ENTERPRISES
Large enterprises 81.5
Medium-sized
61.0
enterprises
Small enterprises 53.8
Source: Survey of 120 construction materials enterprises.
Among enterprises that bought new equipment,
entrepreneurs gave preference to Ukrainian
equipment, which was bought by 81.1% of
enterprises. Equipment from other countries was
procured by only 39.2% of enterprises.
The percentage of Ukrainian equipment procured
is somewhat higher among large and medium-
size enterprises, with 81.8% and 84.0%,
respectively, buying it. Some 77.8% bought such
equipment among small enterprises. As regards
procurement of foreign equipment, medium-sized
FIGURE 2-10. PROCUREMENT OF EQUIPMENT FROM VARIOUS COUNTRIES BY CONSTRUCTION
MATERIALS ENTERPRISES OF DIFFERENT SIZES IN 2005, PERCENT OF ENTERPRISES
Large
81.8
enterprises
Medium-sized
84
enterprises
Small
77.8 37
enterprises
Source: Survey of 122 construction materials enterprises.
Not too many companies (just 25.0%) bought both
Ukrainian and foreign equipment. Again, large
companies emerged as leaders in such mixed
procurements, while a third of large enterprises
(33.3%) bought both Ukrainian and foreign
equipment, as compared with 23.8% for medium-
sized enterprises and 19.0% for small enterprises.
Foreign equipment was mainly imported from
Germany, Italy, Poland, and Russia.
Prepared by BIZPRO
18.5
Enterprises, which bought
equipment
39.0 Enterprises, which did not buy
equipment
46.2
and small enterprises turned out to be closer, with
such equipment being procured by 36.0% and
37.0% respectively, while 45.5% of large
companies bought foreign equipment. Thus, not
only did large companies buy more equipment in
general, they also bought more foreign
equipment. This points to the greater financial
capacity of these companies. Large enterprises,
thanks to their greater financial capacity, can
afford to buy more expensive foreign equipment,
whereas smaller enterprises have to do with lower
quality, cheaper, domestic equipment.
45.5
Procurement of Ukrainian
equipment
36 Procurement of foreign equipment
Enterprises mainly bought brand-new rather than
used Ukrainian and foreign equipment. In
particular, among enterprises that bough
Ukrainian equipment, 84.7% bought brand-new
equipment and 38.3% bought second-hand. This
proportion is 85.7% to 17.9% for foreign-made
equipment.
69
 FIGURE 2-11. RATIOS OF NEW AND SECOND-HAND EQUIPMENT BOUGHT IN 2005,
PERCENT OF ENTERPRISES*

84.7 85.7

38.3
Brand-new equipment
Used equipment
17.9

Procured equipment Procured equipment

made in Ukraine made abroad

Source: Survey of 122 construction materials enterprises.

*The sum total of percentages exceeds 100%, as more than one answer option could be selected.

Therefore, some enterprises were buying both
brand new and second-hand equipment. In
particular, among the enterprises that bought
Ukrainian equipment, 28.0% bought both brand-
new and second-hand equipment, whereas for
foreign-made equipment, this proportion is only
4.2%.
Notably, all enterprises, large and small, procured
both brand new and used equipment at the same
time, even though the highest proportion of such
procurements is among small enterprises
(35.3%), and the lowest is among large
enterprises (20.0%).
Almost exclusively, enterprises bought new
equipment with their own funds: e.g., 91.8% of
enterprises bought new Ukrainian equipment with
their own money and 82.1% were bought foreign-
made equipment. Some 26.2% of enterprises
bought Ukrainian equipment on credit, and 35.7%
bought foreign-made equipment on credit.

FIGURE 2-12. METHODS OF PROCUREMENT OF NEW EQUIPMENT IN 2005, PERCENT OF

ENTERPRISES*

91.8
82.1

Procured with enterprise's

own funds
35.7 Procured based on leasing
26.2 arrangements
Bought on credit

1.7 0.0
Ukrainian equipment Foreign-made
equipment

Source: Survey of 122 construction materials enterprises.

*The sum total of percentages exceeds 100%, as more than one answer option could be selected.

Production is developing quite briskly in the dry
building mixtures segment. Based on a review in
the Ekonomicheskiye izvestiya newspaper
(http://www.eizvestia.com/?a=article_review&id=2
076) active efforts to boost production capacity
are being pursued by the following companies:
1. The Knauf concern of Germany launched
production of dry plaster mixtures in an existing
facility in Soledar, Donetsk Oblast, at the end of
2004. The plant’s capacity is about 60,000 tons.
Since it is operating at full capacity, Knauf is
thinking of building a new plant near the old one,
with several times the old one’s capacity. The new
plant is expected to start production in late 2006
or early 2007.
2. The Lafarge international building concern
plans to build its own dry building mixtures facility
in Armemivske, Donetsk Oblast, in 2006.
According to the company’s management, the
future capacity of the new plant will b 60,000 to

Prepared by BIZPRO 70
100,000 tons per year. It will operate jointly with a
plasterboard plant, whose construction is also

80
being planned. Total investment in these projects
amounts to €25 million.
3. Some €2 million was invested in a new dry
mixtures facility at the OJSC Pavlohradzhilstroi.
The new facility was launched in late September.
According to enterprise’s management, the plant
used equipment made by leading European
manufacturers. Its capacity is 60,000 tons based
on one-shift operation, and plans are to make 50
products (capacity is estimated to be about
150,000 tons per year). The scope is impressive,
as Pavlohradzhilstroi’s old facilities allowed for
making only up to 40,000 tons of dry building
mixtures per year.
4. The Kyivmiskbud holding is keeping step with
the trend and has started building a plant with an
estimated capacity of 60,000 tons of mixtures per
year.
5. Polirem Ltd. of Kyiv expects to complete
building a huge plant of dry mixtures in
Kamyanets-Podilsky in 2007-2008. The site has
an excellent raw materials base, including plaster
and cement plants and a ground limestone plant.
The annual capacity of the plant is 500,000 tons.
The plant is already operational, with the first
stage put into production in fall 2004. Total
investment is estimated at about €15 million.
According to the company, this plant will be the
largest in all post-Soviet countries.
6. There are reports that the Austrian holding
Schmidt Industrie, a prominent European
manufacturer of construction materials under TMs
Baumit, Murexin, Austrtotherm, and others, is to
start building a plant with a capacity of at least
200,000 tons per year near Kyiv in 2006. The
Austrians are providing no further details about
the project.
7. Fomalhaut Ltd. this May launched a new line
for production of cement-sand mixtures with a
capacity of 60,000 tons per year. The investment
amount is €2.1 million. The core machinery is
manufactured by the Zhytomyr Budmash plant,
and the electronic units are supplied by the WAM
company of Italy. Based on this plant, the
Fomalhaut Design Bureau has developed a
project for production and rapid deployment of
mobile, quick-installation production lines of
similar capacity. The company promises to start
installing such lines in each region of Ukraine in
the nearest future. Even today, a new facility is
being built in an eastern region (the extract
location has not been disclosed). It should start
production early next year, and full-capacity
operation in May 2006.
8. Considerable production facilities were also
launched in 2004 and early 2005, including a new
Henkel Bautechnik (Ukrayina) Ltd. plant in the
Kharkiv region. Total investment amounted to
Prepared by BIZPRO
€6.5 million, including €4 million for procurement
of equipment and €2.5 million for erection work,
establishment of a quality control laboratory and
site improvements. In the first six months of 2007,
Henkel Bautechnical plans to launch the third
plant for production of dry mixes in southern
Ukraine (Kherson oblast) with a capacity of
160,000 tons per year.
9. Polirem, Fomalhaut, and Pavlohradzhilstroi
implemented large-scale modernization /
reconstruction of their production lines in 2004
and early 2005.
10. The Budindustriya Integrated Works, based in
Bakhchysarai, has also made a claim to becoming
an active player on the market of dry building
mixtures. Information has already appeared in
news sources to the effect the Budindustriya plans
to build a plant for manufacturing dry building
mixtures, including those for plastering,
smoothing, tile cement, and poured floors. Varnish
and paints solutions will also be made. The
capacity will be as many as 30,000 tons. The
Bakhchysarai company intends to use local raw
materials and imported additional and
supplementary components.
Modernization of cement industry plants is a
super-urgent task today, since by upgrading
production facilities enterprises will be able to not
just significantly reduce production costs, but also
substantially improve product quality. The main
task for producing quality cement is to obtain a
raw-material mixture of constant composition. The
raw materials processed by the cement industry
differ not just in composition, but also in their
physical and technical properties (humidity,
strength, etc.). Each type of raw material should
have a pre-processing method selected, which
would ensure fine grinding and uniform mixing of
mixture components with minimal energy
consumption. Today, there are three main
methods of production: wet, dry, and combination
method.
With the wet method, fine grinding of primary mix
is conducted in a water medium, with the blend
emerging as an aqueous suspension – sludge
with 30%-50% humidity (StroyHelp.ru).
With the dry method, the raw material mix is
prepared as finely ground dry powder. Therefore,
before or in the process of grinding, base
materials are dried. Contrary to the wet method
(which involves firing the moist mix in a furnace),
the “dry” method allows for drying the base
components, to be followed by their blending and
firing. The combined method may be based either
on a wet or on a dry method of blend preparation.
In the first case, the base mix is prepared
according to the wet method as sludge, and then
dehumidified by filter to 16%-18% moisture
71
content, and fed to furnaces for firing as semi-dry
mass. In the second option, the base mix is

82
prepared according to the dry method, and then
granulated with an addition of 10%-14% of water
and fed for firing as 10 mm -15 mm pellets. Each
production method can be implemented as
several process flows, differing both in the
sequence of operation and the type of equipment
used. The choice of a specific process flow will
depend on the properties of the raw materials to
be processed (hardness, uniformity, moisture
content). One of the main ways of reducing fuel
consumption in cement production consists in
minimizing the sludge humidity. Each percentage
point the sludge humidity is reduced allows for
reducing specific fuel consumption for clinker
firing by an average of 117 to 146 kilojoules/kg,
i.e. by 1.7% to 2%. Specific firing heat
consumption for the dry method amounts to 2900-
3750 kilojoules/kg of clinker, while wet method
consumption is two to three times greater. By
adding blast-furnace slag or thermal power plant
cinder to the raw material, fuel consumption can
be reduced by 15%-18%. When producing slag
portland cement, additional fuel economy savings
add up to 30%-40% on average, compared to
purely clinker portland cement.
The “dry” method of production seems to
represent the way forward for cement companies.
This method, according to expert estimates, is
25%-30% more efficient than the traditional “wet”
method and provides 50% fuel economy.
However, investments totaling €50-€55 million will
be required to implement the transition to the “dry”
method. Still, after changing to this method,
increase in cement production could reach more
than 15 million tons in the nearest future. This
would allow increased efficiency in cement
production, thanks in addition to economical use
of base components. Adding blast-furnace slag or
TPP cinder to the raw materials mix will reduce
fuel consumption by 15%-18%. When producing
slag Portland cement, additional fuel economy
amounts to 30%-40% compared to purely clinker
Portland cement.
The main source of losses in cement production
consists in leakage, due to imperfect dust traps at
milling plants. One of the reasons for excessive
consumption is mixing of cements of different
grades and types, given a lack of sufficient
number of hoppers for their storage. In these
cases, manufacturers are forced to use the
consumption rates for the worst of the cement
grades being mixed, which leads to their
consumption increase by 6%-8%. It is important to
use quality concrete aggregates. Every percent of
aggregate contamination equals additional
consumption of approximately 1% of cement. It is
not economical to use grade 400 cement for
making M100 and M150 concrete, as well as
grade 50 and 75 mortar. In these cases, a
significant reduction in cement consumption may
be achieved by introducing mineral disperse
Prepared by BIZPRO
additives to the concrete and mortar mixes, e.g.,
cinder produced by cogeneration plants. Of great
importance for economical use of cement is
selection of the most effective cement application,
with due account for its mineralogical composition
and physical and mechanical properties.
Significant savings of cement at concrete and
prefabricated concrete plants can be achieved
through:
- optimization of concrete compositions;
- using increased rigidity mixtures with compaction
on resonant and shock vibration platforms;
- preheating of concrete mixes and curing of
products after heat treatment;
- increasing the duration of heat treatment;
- expanding the production volume of structures
with negative tolerances;
- improving the process and control equipment.
One of the most promising directions for reducing
cement consumption consists in using chemical
additives. Traditional chemical additives like SDB
allow for reducing cement consumption by 5% to
10%. Possible reduction of cement consumption
when using modern fluidifiers may reach 15%-
25%. Until recently, various types of industrial
waste were used as fluidifiers. As a rule, their
efficiency was low, due to unstable chemical
composition. Today, they have started producing
an effective C3 fluidifier. This agent’s addition to
concrete can save up to 20% of cement (with the
same plasticity of concrete mix); without reducing
the cement consumption and without increasing
plasticity of the concrete mix, however, by
reducing its water-to-cement ratio, the concrete
strength can be increased by 20%-25%. An
additional source of cement economy, while
retaining concrete’s high quality, consists in
applying statistical strength control. The
application of the required concrete strength,
taking into account its uniformity, provides, given
good manufacturing practices, a reduction of
concrete consumption by 5%-10%. Experts argue
that cement consumption can be reduced (with
the quality and longevity of structures improved)
by making concrete from clean, graded
aggregates. Organizing production of such
aggregates would require significant capital
outlays; however, it is much more beneficial for
the national economy, compared with the cost of
repairing and replacing reinforced-concrete
structures that frequently fail before their rated
service lives expire.
In foreign building, no company is making
concrete using one grade 5 mm – 20 mm
aggregate. For instance, in Finland, they use four
grades of clean, large aggregate and low grades
of small aggregate. In this case, the uniformity of
72
the finished concrete is so high that its strength is
determined based on tests of one sample: the
concrete manufacturer guarantees its grade
strength.
Cement efficiency can be improved (and its
consumption therefore reduced) by increasing the
fineness of its grinding. Prefabricated concrete
plants, in order for the concrete to reach its un-
shuttering strength, often overstate the concrete
grade by increasing cement consumption. This
can be avoided by using a finer ground binder:
using such a binder, concrete setting at early age
would occur faster. For economy’s sake, sand,
limestone or any other aggregate might be added
to cement, and additional grinding of the mixture
implemented. However, as research shows, this
decreases the binder’s strength, even though not
in direct proportion to the amount of added
aggregate. To produce concrete of up to 200
grade and even higher, such a binder is quite
acceptable. Depending on the amount of added
aggregate (30%-50%), up to 50% of cement can
be saved. Certain reserves for reducing cement
consumption are contained in the technology of
separate concrete mix preparation. Even though
the method has been known for a long time, it has
not been applied in concrete technology until now.
To get the required effect, one would primarily
need high-speed mixers with capacities
corresponding to the volumes of mix required for
one batch of concrete mixture in a common mixer.
Cement can be saved by using high-quality forms
for samples, taking into account subsequent
increases in concrete strength, carefully selecting
concrete and mortar compositions, using
automatic batchers for components, etc.
An effective quality assurance system is the basis
from a cement plant’s economic sustainability. It is
an important indicator of a company’s
competitiveness on the domestic market and the
essential condition for successful foreign sales.
The majority of companies are devoting more
attention today to the quality of their products. For
example, where primary components were added
“by sight” previously, today dosing is done using
special automatic batchers. This allows for
products of consistently high quality.
Packaging of products is also undergoing
changes. Where earlier cement was packed only
in 50-kg paper bags, now products are packed in
bags of 20, 25, 1000, 15000 and even 5 kg.
Attention is being paid to cement transportation
and storage. It has been estimated that cement
losses due to improper transportation are
significantly higher than normal. No bulk
transportation of cement in railroad cars should be
allowed. Nor should manual unloading, bulk
storage under tents and in barns, or re-shipping
and re-loading from one type of transport vehicle
into another. In the latter case, losses could be
Prepared by BIZPRO
avoided when transporting cement clinker, whose
quality does not deteriorate during transportation
and storage, in distinction to cement. Clinker can
be ground on site to produce fresh high-activity
cement.
Transportation of cement should be conducted in
special-purpose vehicles. Transport in bulk-
cement carriers lead to losses during handling
operations that are on average ten times lower
than losses from transport in covered railroad cars
and 40 times less than from transport in
uncovered rolling stock. Generally, the main
directions for the cement industry’s development
today include:
- technical re-equipment and reconstruction of
plants to increase the percentage of “dry” cement
manufacturing method to 80%-85%;
- development and implementation of high-
efficiency, energy-saving technology;
- preparation for and transition to using coal and
fuel-containing industrial waste as processing fuel;
- re-equipping the machine-building base and
organizing mass production of new-generation
cement-producing equipment;
- reducing hazardous atmospheric emissions and
improving working conditions.
As regards the technological equipment of
Ukrainian glass processors, the situation is quite
encouraging. Much new glass processing
equipment has been procured and installed in
Ukraine. New, expensive machines have
appeared, such as glass-hardening furnaces and
the so-called “jumbo” size glass-cutting machines
(6,000 and 3,210). This process continues
actively, and based on the nearest plans of a
number of companies, this type of equipment
could be seen in many parts of Ukraine soon.
Due to lack of domestic production of glass-
making equipment, Ukrainian glass-makers are
forced to buy this equipment mainly in Western
Europe (China is also starting to enter the global
market for glass industry equipment and
technology), which involves considerable financial
outlays.
Nearly all brick plants in Ukraine require partial
modernization. Usually, new Ukrainian equipment
is used for such modernization, as well as
second-hand German or French machinery.
Baking furnaces and driers represent the core of
process equipment and their quality is very
important for efficient and economic production.
Usually, Ukrainian enterprises use equipment of
such brands as Lingl, Rieter Werke, Morando,
Nosenzo, Agemak, Verges, and Pragoinvest.
73
New companies are constantly emerging in the
varnish and paint segment, while the “old”

85
players expand and modernize existing facilities.
For example, the Dnipropetrovs’k Varnish and
Paint Plant and CJSC Khimreserv have each
invested Hr2.5 million in modernization. CJSC
Lakma invested Hr1.7 million; Splav MV Ltd. –
Hr1.6 million; Timeks Ltd – Hr1.2 million; CJSC
Korosten Yantar Plant – Hr0.5 million (Budivelnyi
Zhurnal, No.5/2006, p.34). A new CJSC Polifarb
Ukrayina plant rated for up to 15,000 tons of
paints and varnishes per year was officially
launched in Dnipropetrovs’k in 2003 (a joint
project of Polifarb Ltd. and Sigma Kalon, an
international concern, which has invested $1.5
million in this production facility). The Finnish
Tikkurila Group bought a controlling block of
shares from Farby Koloryt Ltd. in 2004, while the
Russian CJSC Empils, based in Rostov-on-Don,
launched its own facility in Ukraine to produce
varnishes and paints at the Elaks Plant in Odesa.
Not so long ago, Henkel Bautechnik started
production of acrylic, silicone and silicate Ceresit
paints at its facility in Balakliya (Kharkiv oblast), at
a line with a capacity of close to 30,000 tons per
year, after investing €550,000 in this facility. Akzo
Nobel announced in late 2005 about its
acquisition of the well-known Ukrainian producer
of varnish and paint materials CJSC Khimreservs.
Caparol, a well-known German producer of
varnish and paint materials also plans to build its
plant in Dnipropetrovsk in early 2007. During the
first phase, the company is expected to invest
several million euros in this project.
In the wood products segment, the last to
announce significant investments were
representatives of Vinilin Ltd. and Sintelon of
Serbia (source: Documentinform), which signed
2.3. RESEARCH AND DEVELOPMENT AND COPYRIGHT ISSUES
According to Ukraine’s State Statistics Committee,
there was energeic innovation in Ukrainian
industry in general during 2000-2004; however,
innovation was least apparent in the construction
materials sector. In the sector, the chemical
industry and the wood and wood products
segments were the most active in this sector.
Mainly, innovation aimed at launching new
products, introducing progressive methods,
mechanizing and automating production, and
putting new products on the market.
Prepared by BIZPRO
an agreement on production of parquet in the city
of Kalush, Ivano-Frankivsk oblast (with total
investment of about €100 million).
Also in this sector, there was new that in
Vinnytsya, Barlinek-Ukrayina recently leased 5.8
hectares of land, to build the second phase of a
woodworking plant. By the year 2008, the Polish
company plans to have invested €40 million in the
Vinnytsya plant to create a full manufacturing
cycle and triple its capacity. Earlier, in April 2006,
Barlinek-Ukrayina put into production a
woodworking plant worth €3 million in Vinnytsya
(the plant makes parquet board work pieces, and
has a capacity of 45,000 m3 of wood per year,
with the wood to come from forestry enterprises in
western Ukraine; however, all the plant’s output is
being exported to Poland).
The process of expanding production capacity is
also underway in the roofing materials sector. For
example, the Slavuta Ruberoid Plant has installed
a second line, which boosts the plant’s output to
35,000 m2 per year. Russia’s Tekhnonikol has
launched its own plant in Dniprodzerzhinsk.
Akvaizol, based in Kharkiv, has started making
waterproofing materials, having invested $3
million in a plant to make nonwoven polyester (the
base for euro-ruberoid production) with a capacity
of 20 million m2. With a total Ukrainian market
capacity of 31 million m2, the aggregate
production capacity of Ukrainian manufacturers
has increased to 70 million m2, which has caused
tough competition. Expanded production and
market stagnation have led to a situation in which
about 15%-20% of the construction materials
produced in 2005 remain in warehouses.
Based on survey data, the majority of sector
enterprises were developing new products in
2003-2005. Some 37.3% of enterprises did not
implement such developments, while 55.1% of
enterprises implemented new developments to
improve their products and satisfy customers’
demands. Some 22.0% of enterprises developed
radically new products. Development of new
products and improvement of existing ones were
simultaneously implemented by 26.2% of
enterprises.
74
 FIGURE 2-13. IMPLEMENTATION OF NEW DEVELOPMENTS BY ENTERPRISES IN THE
CONSTRUCTION MATERIALS SECTOR IN 2003-2005, PERCENT OF ENTERPRISES*

Enterprises implemented new

55.1 developments to improve
products as per customer
requirements
37.3
Enterprises implemented new
developments to offer
22 absolutely new products

Enterprises have not

implemented any
developments

Source: Survey of 122 enterprises in the construction materials sector.

*The sum total of percentages exceeds 100%, as more than one answer option could be selected.

The likelihood of making product innovations
depends to a significant degree on a company’s
size. The greatest proportion of enterprises that
did not pursue any developments were among
small and medium-sized enterprises (42.3% and
43.6%, respectively), whereas the share of such
enterprises among large companies was only
18.5%. The level of development of radically new
products is also lowest among small enterprises
(only 13.5%).

FIGURE 2-14. IMPLEMENTATION OF NEW DEVELOPMENTS BY CONSTRUCTION MATERIALS

ENTERPRISES OF DIFFERENT SIZE IN 2003-2005, PERCENT OF ENTERPRISES*

66.7

53.8 Enterprises implemented new

48.7 developments to improve products
42.3 43.6
as per customer requirements
Enterprises implemented new
28.2 29.6 developments to offer radically new
products
18.5
13.5 Enterprises have not implemented
any new developments

Small Medium-sized Large

enterprises enterprises enterprises

Source: Survey of 122 enterprises in the construction materials sector.

*The sum total of percentages exceeds 100%, as more than one answer option could be selected.

Only a little more than one third of enterprises to buying new technology often in this period (2.1
(37.0%) bought new technology in 2003-2005. times on average).
Moreover, enterprises in the sector did not resort

Prepared by BIZPRO 75
 FIGURE 2-15. PROCUREMENT OF NEW TECHNOLOGIES IN 2003-2005, PERCENT OF
ENTERPRISES

37.0
Enterprises procured
new technologies

Enterprises did not

procure new
63.0 technologies

Source: Survey of 122 enterprises in the construction materials sector.

The lowest percentage of enterprises buying new among enterprises that new technology, the
technology is found among small enterprises, lowest average frequency of procurement was
32.7% of which procured such gear in 2003-2005. among large enterprises, which bought new gear
Their proportion among larger enterprises is about 1.5 times. This number was 2.1 times for small
one third (36.6% of medium-sized enterprises and and 2.5 times for medium-sized enterprises.
46.2% of large enterprises). At the same time,
FIGURE 2-16. PROCUREMENTS OF NEW TECHNOLOGIES IN 2003-2005, PERCENT OF
ENTERPRISES

Large enterprises 46.2 53.8

Medium-sized enterprises 36.6 63.4

Small enterprises 32.7 67.3

Procured new technologies Did not procure new technologies

Source: Survey of 122 enterprises in the construction materials sector.

Copyright issues in the construction materials copying of industrial models is a common

sector, according to entrepreneurs, are not phenomenon; whereas 75.7% believe no such
pressing. Among the surveyed enterprises in the cases occur at all.
sector, only 9.0% state that the problem of illegal
FIGURE 2-17. EVALUATION OF PREVALENCE OF ILLEGAL COPYING OF INDUSTRIAL MODELS
IN THE CONSTRUCTION MATERIALS SECTOR, PERCENT OF EXPERTS

9.0

15.3
Illegal copying of industrial
models is very common
Illegal copying of industrial
models occurs sometimes
Normally, there is no illegal
copying of industrial models

75.7

Source: Survey of 122 enterprises in the construction materials sector.

Prepared by BIZPRO 76
Interestingly, representatives of large companies problem for their own companies. Medium-sized
appear more optimistic about this issue, with enterprises experience the problem of illegal
80.8% claiming there are practically no cases of copying of industrial models to a lesser degree
illegal copying of industrial models (compared to than other enterprises, with 12.5% of them
74.5% among small enterprises and 73.5% indicating this problem exists specifically for their
among medium-sized enterprises). company. Some 17.4% of large and 20.0% of
small enterprises experience this problem.
Also, the majority of entrepreneurs (82.9%) do not
perceive illegal copying of industrial models as a
FIGURE 2-18. ENTREPRENEURS’ ASSESSMENT OF THE THREAT OF ILLEGAL COPYING OF
INDUSTRIAL MODELS SPECIFICALLY FOR THEIR COMPANY, PERCENT OF ENTREPRENEURS

87.5
80.0 82.6

Illegal copying of models

presents a problem for the
company
Illegal copying of models is not a
20.0 problem for the company
17.4
12.5

Small Medium-sized Large

enterprises enterprises enterprises

Source: Survey of 122 enterprises in the construction materials sector.

2.4. PROBLEMS OF CERTIFICATION AND STANDARDIZATION OF PRODUCTS

Certification of construction materials involves - modular fabricated buildings;
confirming products’ compliance with standards
and technical documents. There is mandatory and - general building and sulfate-resistant cement;
voluntary certification for the majority of - small-piece walling products;
construction materials in Ukraine.
- bricks and clay and lime-sand stones;
The State Committee of Consumer Standards
approved a list of building products subject to - rock masonry stones;
mandatory certification in Ukraine in May 2006.
This list includes: - facing ceramic tiles and tiling;

- steel columns and frameworks for single-storey - ceramic floor tiles;

and multistory buildings;
- ceramic and concrete roof tiles;
- steel frame structures and floor beams,
- PVC linoleum;
overhead conveyor beams, crane beams for
bridge electrical cranes; - reinforced concrete piles;
- steel trusses; - reinforced concrete columns;
- panels and elements of filler structures (metal, - reinforced concrete bars and secondary means;
frame and frameless);
- reinforced concrete girders for multistory
- metal stairs, stair platforms, and railings of stairs, buildings;
balconies, and roofs.
- reinforced concrete crossbars for brick wall
- metal structures of power transmission line buildings;
supports, open distributing equipment of
substations, mast and tower structures; - reinforced concrete external wall panels;

- metal reservoirs for oil and petroleum products, - concrete roofs for industrial buildings;
gas holders, and water tower structures;
- reinforced concrete floor panels;

Prepared by BIZPRO 77
- reinforced concrete slabs for paving city roads; with these standards. The list of standards
govering how building are manufactured in
- reinforced concrete supports for power Ukraine is provided in Appendix 10.
transmission lines, telecommunications lines, and
components of contact systems of electric Looking ahead, and wishing to satisfy customers’
railroads and lighting systems; requirements, win tenders, and export their
products abroad, manufacturers resort to another
- prestressed reinforced concrete railroad ties; more efficient method of proving product quality:
- reinforced concrete stair components; they certify their products according to
international certification systems.
- reinforced panels for balconies and loggias;
The practices of foreign and leading Ukrainian
- windows and doors for buildings and structures; enterprises indicate that compliance with the
international ISO standards of the 9000 series
- rock masonry units; ensures the required quality level and
competitiveness of products and services both on
- ceramic and concrete roofing tiles.
the domestic and foreign markets.
A certified quality system is practically obligatory
The experience of Ukrainian enterprises, which
for design and building institutes and
have effective quality assurance systems (which
organizations.
are powerful tools for improving competitiveness
The standards in effect for materials developed in and reducing costs), shows that for many
Ukraine have already become somewhat companies this task is feasible, provided top
obsolete, as the market is developing, new management is engaged in it.
products are emerging, and new technologies and
Today, an international quality certificate is
market requirements are evolving. However, if a
mandatory only for exporting enterprises. Every
company operates only on the domestic market
company, however, that wasn’t to improve its
and is not actively engaged in renewing its
standing and look toward the future, can obtain
product range, the existing standards are relevant,
the certificate, irrespective of whether it exports or
as their technologies are in conformity specifically
not.
TABLE 2-3. KEY MANUFACTURERS IN THE CONSTRUCTION SECTOR THAT HAVE
INTERNATIONAL CERTIFICATES
Enterprise Product International certificate
CJSC Slobozhanska Brick Quality management system certificate ISO
budivelna keramika 9000:2000
CJSC Novoselivka Mining Kaolin Quality management system certificate ISO
and Concentration Intergrated 9000:2000
Plant
OJSC Kyivguma Rubber Quality management system certificate ISO
9000:2000
Pavlohradzhylbud Dry building mixtures Quality management system certificate ISO
9000:2000
Polirem Company Dry building mixtures Certificate for quality control system as per
international standards ISO 9001 in 2005
Fomalhaut Company Dry building mixtures Certificate for quality control system ІSO
9001 in 2003
NVP Helios Ltd. Dry building mixtures Certificate for quality control system as per
international standards ISO 9001:2000, in
2005
CJSC Lysychansk Proletoriy Glass Certificate for quality control system as per
Glass Plant international standards ISO 9001:2000
OJSC Dniprocement Cement Certificate for quality control system as per
international stndards ISO 9001:2000, in
2004
CJSC Nifar Varnish and paint Certificate for quality control system as per
industry international standard ISO 9001:2000
OJSC Zevs Keramika Ceramic products Certificate for quality control system as per
international standard ISO 9001

Prepared by BIZPRO 78
 OJSC Kovalska Reinforced Reinforced concrete
Concrete Plant products
Slavuta Ruberoid Plant Roofing materials
About a quarter of the enterprises whose products
are subject to mandatory certification in Ukraine
do not regard the existing national standards as
obsolete. In particular, 25.3% of entrepreneurs
whose enterprises are certified disagree with the
statement that existing national standards do not
conform to modern manufacturing technologies,
28.6% of enterprises disagree with the statement
that products manufactured according to national
standards are not in demand, 30.2% disagree with
the statement that the national standards do not
allow for expanding product range, and 28.6% of
enterprises disagree with the statement that
observing national standards raises production
costs.
The rest of the entrepreneurs whose products are
subject to obligatory certification believe the
national standards are obsolete and that this
affects, to varying degrees, various aspects of
manufacturing and selling construction materials.
In particular, 10.3% of entrepreneurs believe
obsolete standards are severely interfering with
operations due to the standards’ incompatibility
with modern manufacturing technology; for 10.7%
of entrepreneurs the impact of obsolete standards
Prepared by BIZPRO
Certificate for quality control system as per
DSTU ISO 9001:2000, in 2003.
Certificate for system of quality management
as per international standards ISO
9001:2000, received from German
certification authority for Systems TUV
NORD CERT for plant’s building activities, in
2005.
Certificate for quality control system as per
international system ISO 9001:2000
on demand for their products is very relevant;
7.0% of entrepreneurs note the high negative
influence of obsolete standards on the range of
products; and for 10.7% of entrepreneurs, the
impact of obsolete national standards on
increased production costs is extremely relevant.
Some 19.5% of entrepreneurs regard non-
conformity of obsolete technology with present-
day manufacturing technologies as minimally
relevant for their companies. That products are
manufactured according to obsolete standards
and are not in demand is marginally relevant for
17.9% of enterprises. The problem of obsolete
standards as an obstacle towards expanding
product range is minimally relevent for 23.3% of
enterprises; and impact of obsolete standards on
increased production cost has low relevance for
21.4% of enterprises.
Ukrainian manufacturers, then, are not overly
concerned with the existing national standards.
Even if these standards are obsolete, they don’t
interfere with manufacturers’ sales. Therefore,
they are paying little attention to this matter for the
time being.
79
TABLE 2-4. RELEVANCE OF PROBLEMS RELATED TO OBSOLETE NATIONAL STANDARDS FOR
ENTERPRISES

5
Standards 1 (Maximu Average
are not (Minimal 2 3 4 m relevance
obsolete relevance) relevance score
)
Obsolete standards
do not comply with
modern 25.3 19.5 9.2 31.0 4.6 10.3 2.7
manufacturing
technologies
Products made
according to obsolete
28.6 17.9 13.1 17.9 11.9 10.7 2.8
standards are not in
demand
Obsolete standards
prevent expansion of
30.2 23.3 14.0 14.0 11.6 7.0 2.5
company’s range of
products
Observance of
obsolete standards
leads to a significant
increase in
production costs and 28.6 21.4 13.1 20.2 6.0 10.7 2.6
renders the product
uncompetitive on the
market

Source: Survey of 122 enterprises in the construction materials sector.

Prepared by BIZPRO 80
3. RAW MATERIALS AND
RESOURCES
3.1. SITUATION ON RAW MATERIALS MARKET
Ukraine has abundant natural sources of raw producers have no problems with availability of
materials for production of construction materials: raw materials. At the same time, plentiful raw
deposits of kaolin, lime, gypsum, granite and materials allow satisfaction of foreign market
marble, quartz sand, basalt, chalk, dolomite, and demands.
perlite. Therefore, construction materials
FIGURE 3-1. STRUCTURE OF SALES OF KEY RAW MATERIALS IN 2000-2004, HR MILLION

2000
2026,7 * Acc. To KVED
Source: State Statistics Committee

1226,2
1256,1
1196,2
Hr million

983,3 905,4
1000 896,2 867
688,8 854,1 809,1
772,4 759,7
587,2 691,4
547,3 632,7 636,5
551,2 528,7 547,6
493 468,3
392,5
324,6

0,1 0,3 0,4 16,8 7,6

0
2000 2001 2002 2003 2004

Production of clayey shale Development of gravel and sand pits

Productio of limestone, plaster, and chalk Production of building stone

Production of clay and kaolin Production of sand and clay

We will now consider the raw material production, production for the construction materials sector
import, and export structures in greater detail. At amounted to Hr5,248.2 million.
the end of 2004, the total volume of raw materials
TABLE 3-1. RAW MATERIALS PRODUCTION VOLUME IN PHYSICAL TERMS IN 2003-2004
SCP CODE Raw material 2003 2004
14.11.11.300A Marble and travertine, thousand m3 1.1 4.2
14.11.11.500A Limestone, gypsum and lime alabaster , thousand m3 690.5 900.3
14.11.12.300A Granite, thousand m3 515.9 579.1
14.11.12.330A Crushed (commercial) granite, thousand m3 492.9 550.3
14.11.12.500A Sandstone, thousand m3 44.8 131.7
14.11.12.530A Crushed sandstone (commercial), thousand m3 44.1 45.2
14.11.12.900A Tuff, basalt, porphyry, and other undressed stones, coarsely 138.4 145.3
dressed, and sawn into blocks and slabs, thousand m3
14.11.12.901A Tuff, basalt, porphyry, and other crushed stones (commercial 104.9 105.2
grade), thousand m3
14.12.10.300 Plaster and anhydrite (native or synthetic), thousand tons 813.4 1153.8
14.12.10.310 Plaster, thousand tons 321.4 336.9
14.12.10.500 Limestone (except for crushed limestone aggregate and 19275.2 21275.0
limestone cut to size), thousand tons

Prepared by BIZPRO 81
14.12.20.100 Chalk, thousand tons 1217.0 1513.6
14.12.20.300 Uncalcined dolomite (except crushed dolomite aggregate), 8.5 10.8
thousand tons
14.12.20.500 Calcined and fired dolomite, thousand tons 218.5 243.0
14.12.20.700 Agglomerated dolomite (including petrolized dolomite), 982.8 1130.8
thousand tons
14.21.10A Sand, pebbles, gravel, and crushed stone for building, 40509.9 45580.8
thousand m3
14.21.11.900A Other building sands (except metal-containing sand), thousand 5365.6 5680.9
m3
14.21.11A Natural sands, thousand m3 6989.1 7445.5
14.21.12 Pebbles, gravel, and crushed stone, thousand tons 48310.9 54603.3
14.21.12.100A Pebbles, gravel, crushed stone, and silicon, thousand m3 27437.5 31289.2
14.21.12.131A Building gravel (including that used as concrete aggregate), 437.1 393.4
thousand m3
14.21.12.151A Building crushed stone, pebbles, and silicon, thousand m3 24861.1 28663.7
14.21.12.300A Crushed stone used as aggregate for concrete, for road 3384.6 3495.7
pavement, and for other building purposes, thousand m3
14.21.12.500A Marble aggregate, pellets, and powder, thousand m3 24.6 13.9
14.21.12.900A Aggregate, pellets, and powder of other stones, thousand m3 3655.8 4400.4
14.21.12A Pebbles, gravel, crushed rock, and crushed stone, thousand 34502.5 39199.2
m3
14.21.13A Building slag, thousand m3 295.8 354.0
14.22.11 Kaolin and other kaolin clays, tons 1176353.0 1468123.0
14.22.11.400 Kaolin, tons 1072790.0 1365502.0
14.22.11.410 Enriched kaolin, tons 169901.0 202291.0
14.22.12 Other clays, andalusite, kyanite, sylimanite, mulite; chamotte or 7163.6 7771.8
silica earths, thousand tons
14.22.12.300 Refractory clay, thousand tons 5006.1 5249.1
14.30.11.500 Carnallite, sylvite, and other natural potassium salts, tons 58397.0 20700.0
14.30.12.500 Native (unprocessed) or non-refined sulfur (including extracted 98727.0 75281.0
sulfur), tons
14.30.13 Other natural minerals for chemical industry, tons 23912.0 23648.0
14.40.10.000 Salt and pure sodium chloride, tons 2906379.0 3339370.0
14.50.10.000 Natural bitumen and asphalt, asphaltite and asphalt rock, tons 366.0 3.0
14.50.23 Natural minerals, not otherwise categorized, tons 1077137.1 1632057.9
14.50.23.130 Natural graphite, tons 10956.0 10833.0

Prepared by BIZPRO 82
 FIGURE 3-2. STRUCTURE OF RAW MATERIALS PRODUCTION IN 2004, HR MILLION
1000 926,8
900 838,5
800 722,9
700
594,9
600
Hr million

500
304,5
400
300,2
300 215,8

200 86,5 130,8

61,3 119,6
100 20,439,3 67,6
0,2 0,8 1,2 2 2,8 4,2 5,9 7,9 14,6
0
2004
Marble and travertine
Marble aggregate, pellets, and powder
Carnallite, sylvite, and natural potassium salts
Sandstone
Limestone, plaster and lime alabaster
Plaster
Tuff
Chalk
Raw sulfur, unprocessed or unrefined (including extracted sulfur)
Natural graphite
Other stone aggregate, pellets, and powder
Crushed stone
Natural minerals
Building slag
Granite
Dolomite
Kaolin and other kaolin clays
Limestone
Salt and pure sodium chloride
Building ballast, gravel, and silicon
Pebbles, gravel, ballast, and crushed stone
Building sand, pebbles, gravel, and ballast
Clay
* Acc. To KVED
Source: State Statistics Committee

The aggregate volume of import and export Namely:

amounted to $162.2 million and $214.3 million,
respectively (with a positive trade balance in the Sumykhimprom, Khimreserv, Yantar, Mittal Steel
construction materials sector). (For more detail, Temirtau, Biolar, CJSC Pivden, OJSC Balcem,
see Tables 5-8 in the Appendices). Doncement, state forestries, Lukoil Naftokhim,
and other producers of mineral materials and
Key Raw Materials Producers preprocessing products.
The key producers of raw materials for various
segments are companies that are the main
players in respective segments.
TABLE 3-2. KEY PRODUCERS OF RAW MATERIALS
Product Raw material Key suppliers
Glass Quartz sand Novoselivka Mining and Concentration Integrated
Plant
Bricks Clay Mainly, manufacturers are using their own clay pits,
as well as raw materials supplied by CJSC Pivden,
Ukrvohnetryv, and Hlyny Donbasu.
Ceramic and Clay, sand, feldspar, dyes, CJSC Pivden, OJSC Vesko, importers of dyes CJSC
terracotta kaolin Dniprokaolin and Budavtodor
products

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 Concrete, Cement, sand, crushed Podilsky Cement, Doncement, Yunigranit,
concrete rock, metal Starokostyantynivsky Special Quarry, OJSC Ivano-
products Frankivskcement, Kryvorizhstal
Plaster Plaster Mamalyhivsky Plaster Plant, OJSC Gipsovyk
products
Dry building Plaster, cement, binding OJSC Gipsovyk, OJSC Ivano-Frankivskcement
mixtures agents
Lime Limestone Olenivske OJSC DFDK
Paint Alkydes, dispersion, gas, Khimreserv, Sumykhimprom, Yantar, Khimprom,
dyes, solvents VAMP, Dnipropetrovsk Varnish and Paint Plant,
Dniprodzerzhinsk ZIP
Varnishes Acryl Products imported from Finland, Germany, Turkey
Wood Decidious and coniferous State forestries in the Vinnytsya, Kirovohrad,
products wood, mainly: oak, pine, Zakarpatska, Odesa, Mykolaiv, and Cherkasy
alder, and maple. oblasts

Plastic Polyethylene, polypropylene Lukoil Naftokhim, Lukor of Ivano-Frankivsk, as well

products as foreign suppliers
Roofing Clay, cement, galvanized Mariupol Illicha Plant, Pivnich Stal, Balcem, OJSC
materials sheet metal with and Vesko
without polymer coating.

However, for production of many types of building
products, raw materials and stock are imported in
large volumes, mainly from western Europe and
CIS states. For example, substantial amounts of
chemical additives are required to make dry
building mixtures, and these are mainly imported
from the Euro-zone; manufacturers of varnish and
paints products buy the required components
(pigments, fillers, dyes, etc.) abroad.
One of the key problems of modern materials
science is creating new types of cement,
concrete, building mortars, and dry mixtures that
can provide high service properties over a long
period of time. Making construction materials
would be unimaginable without application of
various chemical additives. Research is
underway in Ukraine today to develop competitive
domestic additives.
Concrete Additives
Using additives is an efficient way of regulating
concrete’s rheological and physical-mechanical
properties. Foreign experience shows that more
than 70% of the total volume of concrete laid uses
chemical additives. Despite an increase in price of
concrete, use of additives is economically
justifiable thanks to improvement of a number of
process variables and service properties.
The national normative document DSTU Б.В.2.7-
65-97 classifies the additives for concrete and
building mortar based on mineral binders and
assesses their influence on concrete and mortar
properties. According to this classification,
concrete and mortar additives, depending on
application, are subdivided into:
— additives that regulate properties of concrete
and mortar mixes;
— additives that regulate hardening of concrete
and mortar;
— additives that increase strength and/or
corrosion-resistance and frost-resistance of
concrete and reinforced concrete, which reduces
concrete permeability;
— additives that add special properties to
concrete and mortar.
Application of additives is implemented in
accordance with DBN В.2.7-64-97 “Rules of
Application of Chemical Additives in Concrete and
Building Mortar.” Additive widely used in Ukrainian
building include UPB, LST, PSK, PFS, Dofen, Z-3
and complexes on the bases UPB + SN, LST +
SN, Relaksol, PMF-BS, Dofen-M, and others.
More than a half the volume of concrete mix
produced by a wide network of concrete plants is
used to make cast concrete or reinforced concrete
structures. Therefore, it is essential to provide
users with quality concrete additives, and use
efficient pouring methods and concrete pumps. To
ensure quality cast structure production and
provide for convenient concrete mix pumping, it is
essential to provide such important characteristics
as unmixing capacity, dehydration, and water-
retention capacity. Chemical additives are called
on to improve these properties.
In erecting hydraulic structures, in irrigation and
drainage works, in road construction, in working
on widely spread and remote facilities in rural
areas, there often emerges a need for prolonged
transportation and laying of concrete. The “vital
activity” of concrete mixes can be extended by
introducing hydrophilization and hydrophobization
additives, e.g., UPB and UPB + HKZh-11. In this
case, application of hydrophilizing surfactants of

Prepared by BIZPRO 84
various action types has the greatest effect on the
preservation time and convenient concrete laying.
NK, NKM, NK+UPB, P, P+LST are used as frost-
resistant additives, applied when preparing
concrete in winter conditions. Use of surfactants in
complex reagents makes laying concrete within
the prescribed process period more convenient.
Complex additives improve concrete’s porous
structure and facilitate improvement of a number
of its service properties (frost-resistance,
waterproofing).
Accelerated concrete hardening both under
natural conditions and with heat treatment is of
great practical value. It helps to save energy and
material resources, and increase productivity.
Chlorous additives are the most efficient
accelerants, but they have the major drawback of
causing corrosion of reinforcements. Development
of chlorine-free additives with high hardening
intensification capacity seems promising. At the
same time, both domestic and international
experience shows that fluidifiers combined with
surfactants of groups 3 and 4, electrolytes, and
active mineral agents, allow for not only
significantly intensifying concrete hardening, but
also produce quality, high-strength concrete.
Use of chemical additives is also an efficient
method of producing concrete with special
properties, including corrosion resistance,
electrical conductivity, and protective properties
with regard to steel reinforcements, embedded
items, etc. There are, however, virtually no special
additives produced for these applications on the
Ukrainian market at present.
The way to increase the efficiency, versatility, and
multifunctionality of additives in cement systems is
to apply complex additives based on the
prevailing action of one additive; or multifunction,
complex modifiers with equal contributions from
each component into the summary action; and
complex additives based on the synergy of
individual actions on the cement system. Another
promising direction for further improvement of
concrete and reinforced concrete technology also
involves making high-efficiency chemical additives
for concrete based on specially developed
products from environmentally safe raw materials,
including for casting technology for self-
compacting concrete, andnhigh-grade and
special-purpose concrete. Newly developed
additives should be agreed with the head
organization of the State Building Committee of
Ukraine responsible for use of additives in
concrete. or with the Technical Committee on
Construction Materials, and must be entered in
the existing normative documents on use of
chemical additives in concrete.
Additives and Components of Dry Building
Mixtures
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The materials used for production of dry mixtures
are extremely diverse in their range and
properties. Each material adds certain properties
to mixtures and mortars.
Experts categorize additives and components of
dry building mixtures into several main groups:
— organic adhesive substances;
— mineral binding agents;
— fillers, including natural-disperse, natural
mechanical disperse, synthetic, reinforcing fibrous
(natural mechanically disperse, and synthesized);
— water-retentive additives: water-soluble
methylcellulose, bentonitic clays, including
modified;
— fluidifiers, products of condensation of
naphthalensulfonic acid and formaldehyde, and
complex additives on their basis;
— antifoaming agents, materials produced on the
basis of organic silicon compounds, higher fatty
alcohols, and amines;
— pigments, nonorganic (by chemical
composition these could be grouped into oxides –
pigment titanium dioxide, ferrioxide and
chromoxide pigments, salts, Prussian blue) and
organic (phthalocyanine pigments: blue, green,
and red colors);
— emulsifiers, cationic and anionic surface active
agents;
— setting regulators for building mortars made of
dry mixes: accelerants (mainly, salts of alkaline
and alkaline-earth metals and of hydrochloric or
carbonic acids) and setting retardants
(polysaccharides, adhesives of animal origin);
— hydrophobisators: microemulsifying, water-
soluble concentrates of silicone microemulsions
and powders on a silane/siloxane base.
As a rule, powder raw materials of varying
dispersity are used for making dry building
mixtures; however, to make certain types of dry
mixtures, use is also made of fibrous materials
with a preset fiber length or gravel size of 3 mm-
10 mm.
The above materials have a number of common
properties, which are equally important for all
materials (density, porosity, volume weight) and a
number of specific properties, which allow for
evaluating the feasibility of their use for the
desired purpose (e.g., water-retentive capacity).
Mineral Binders and Fillers
Mineral binders and fillers are the main
components for dry mix production. The largest
grade sand and fine crushed rock of 3-10 mm
85
may be used as filler in dry mixes intended for
renovation of concrete and reinforced concrete
structures.
Water-Retentive Capacity Regulators
Water-soluble methylcellulose is used for making
dry building mixtures. Methylcellulose is capable
of preserving its properties after being dissolved in
water, after repeated dehydration and
dispersion/powdering. The viscosity of
methylcellulose solutions is within 400 to
40000 Mpa.s. It depends on molecular weight,
concentration of methylcellulose in the solution,
temperature, and chemical modification. With
higher temperatures, viscosity of methylcellulose
solutions is decreasing. As viscosity increases,
the water-retentive capacity is growing. The same
effect is observed when increasing the
methylcellulose concentration in the solution from
0.1% to 0.3%.
In making dry mixtures, using bentonitic clay
modified with organic bases is also
recommended. They have a lesser impact on the
water-retentive capacity of building mortars than
does methylcellulose.
Fludifiers
The key advantage of fluidifiers is that with the
same water-to-cement ratio, they significantly
improve the flowability of concrete and mortar,
without impairing the strength of hardened mixes.
Use of fluidifiers in the composition of dry building
mixtures, in combination with other modifiers,
allows for creating high-strength, self-leveling
building mixes intended for both manual and
mechanized laying.
Depending on the chemical base, fluidifiers are
subdivided into the following types:
— fluidifiers based on sulfurized melamine-
formaldehyde compounds and derivative
complexes;
— fluidifiers based on sulfurized naphthalene-
formaldehyde compounds and derivative
complexes;
— fluidifiers based on modified lignosulfanates;
— fluidifiers based on water-soluble carboxylated
polymers.
Experts note that the benefits of using any specific
fluidifier cannot be determined unambiguously.
The effect of using fluidifiers in dry buildings
mixtures might change, depending on the cement
mineral composition, its specific surface,
properties of fillers, aggregates, and modifiers,
and on compatibility with the components that
comprise a specific product. It might also depend
on conditions of hardening, as well as on the cost
of fluidifiers used. The only certain thing is that
Prepared by BIZPRO
adding fluidifiers to dry building mixtures improves
the mix’s building and process properties, and that
it is only the emergence of modern fluidifiers that
has made it possible to produce self-compacting
and self-leveling mixtures.
Modifiers for Dry Building Mixtures
Despite the fact that the main processes of
formation of building mortar’s properties are
determined by interactions within the system of
“mineral binder - aggregate - water”, adding
homorganic and organic modifiers into this system
can change properties of practically all materials.
Mortars can be made with preset properties and
that are intended for use under diverse, even
extreme, conditions. Use of modifiers in dry
building mixtures allows for changing, within a
wide margin, the process properties of mortar
mixes and mortar’s building and technical
properties. It has also opened an opportunity for
applying thin-layer technology and machine
application technology. The range of such
additives is extensive today. They include
surfactants, water-soluble polymers, water
dispersions of polymers, electrolyte additives, and
others.
Use of modifiers in mortar and concrete has a
long history. Adding vegetable oil, animal blood,
egg whites, dairy products, and tree bark
concoctions into lime concrete and mortar has
made it possible to preserve the churches of the
ancient Russian towns of Vladimir and Suzdal,
mosques in Bukhara and Samarkand, and the
famous Charles Bridge in Prague.
With the emergence of hydraulic binding agents,
the modifiers used by builders of old receed into
the background and were undeservedly forgotten.
Only in the 1930s did use of modifying agents in
concrete and mortar reappear in building, albeit at
a new scientific and technological level. In many
industrially-developed countries, the percentage
of concretes and mortars produced with modifying
agents approaches 90%-95%
The special feature of using modifiers in dry
building mixtures exists in the technology of their
application. If in making concrete and mortar,
additives are introduced as solutions, dispersions,
emulsions, and suspensions, for dry building
mixtures, additives are applied as powders only,
which in addition to the general requirements for
modifying agents must also have low
hygroscopicity and be distributed uniformly in dry
and wet mixes.
Class one modifying additives, which are
regulators of rheological properties, are those
most widely used in the production of dry building
mixtures. Additives of this class are used for
modifying dry building mixtures for virtually any
application.
86
The second class of modifying agents, which are however, with the exception of sand, are
setting and hardening regulators, is used for characterized by variability of their chemical
modifying repair compounds, flooring mixes, composition, especially in terms of their main
mixes for mechanized application, dry building components, and an increased content of
mixtures based on plaster binders, etc. polyvalent metal oxides, primarily ferric oxides
(Fe2O3). This problem can be overcome by
The modifying additives of the third class, which development of qualitatively new methods of raw
are structure regulators, are used for modifying materials enrichment, which would allow bringing
repair, water-proofing, plastering, and other them to the required stable condition in terms of
mixes. chemical composition. This task requires
Fourth class modifiers give special properties to innovations towards a targeted research
mixes and are used for the compositions of dry approach, using basic physical-chemical research
building mixtures that must comply with special and modern production facilities for
functional requirements in terms of their comprehensive development of raw materials that
application or service environment. will comply with ecological requirements, ensuring
their preparation and delivery to users, as well as
Ukraine is rich in deposits of sand, dolomite, preparation of normative documents regulating
chalk, kaolin, and pegmatite—the raw materials quality requirements.
used for glass production. The said raw materials,
3.2. MODELS FOR SUPPLYING RAW MATERIALS USED BY ENTERPRISES IN THE SECTOR
Based on experts’ estimates, proportions between of products; therefore, it makes no sense to
the raw materials used for various types of “averae” the opinions of representatives of
products are different today: different subsectors.
As regard changes in the raw materials situation The classical model of raw materials supply for
over the last three years, experts have split almost construction materials production is a situation in
equally among those who believe that the which the manufacturer places its production
proportion of domestic raw materials increased facility near raw material sources. Therefore, each
somewhat and those who argue that the company (especially a large one) strives to have
proportion of foreign raw materials increased quarries and pits for extracting various minerals,
significantly. Apparently, this is due to the fact that or other raw materials facilities, among its assets.
different raw materials are used for different types
TABLE 3-3. ORIGIN OF RAW MATERIALS FOR PRODUCTION OF CONSTRUCTION MATERIALS
Product Proportion of foreign raw Proportion of domestic raw
materials, % materials, %
Acrylic 80 20
Alkyds 30 70
Asbestos 100 0
Dyes 100 0
Clay 0 100
Oak, pine, alder 0 100
Sand 0 100
Feldspar 30 70
Solvents 10 90
Glass 0 100
Process additives 90 10
Cement 0 100
Slurry coal 0 100
Crushed rock 0 100

This is done not just to save on raw material
costs, but also in view of the transportation factor,
an extremely important for producers of
construction materials. It is worth mentioning
certain particularities about raw materials
transportation in the context of construction
materials enterprises.
As that enterprises that produce and process the
raw materials are quite distant from each other,
and because some types of raw materials have to
be imported, rail seems the transport of choice for
such supplies. It ensures transportation of large
volumes in any form and offers moderate freight
cost. Ukraine does not as yet have a well-
established just-in-time system. As Ukrainian
producers experience no problems with
availability of raw materials, the greatest supply
bottlenecks are caused by transportation.

Prepared by BIZPRO 87
Makers of primary building materials mostly use
rail for receiving raw materials and delivering

100
finished product. Rail transport, in turn, is
controlled by the state and does not depend on
any of the parties involved in deliveries.
Therefore, in case of delays, the producers cannot
influence the delivery speed.
Having suffered from lack of rail cars, cement
plants have decided to switch to trucks.
Dyckerhoff (Ukraine), which owns three cement
plants in Ukraine, has spoken of creating its own
truck fleet.
A spokesman for Dyckerhoff (Ukraine) says
(Ekonomicheskiye Izvestiya of 9 June 2006) the
railway is no longer able to cope with increased
cement production volume. The company
invested €1 million in creating its own truck fleet,
which is based at the Yugcement Plant in
Mykolaiv. The idea has caught on with other
enterprises. Company representatives claim that
cement trucks are economical for deliveries of up
to 200 km. For transportation to more distant
3.3. STRUCTURE AND EFFICIENCY OF ENERGY RESOURCES USE
Making construction materials requires significant
amounts of energy. This requires significant
financial outlays and influences the cost of goods.
Therefore, the majority of producers are now
striving to improve the production process,
modernizing and re-equiping their facilities to
more efficiently use energy resources and reduce
energy consumption. Different methods of
reduction are used in each industry segment. For
example, in the glass production segment, they
improve raw materials processing methods and
material production (oxygen enrichment); in
production of roofing materials, the structure of
TABLE 3-4. MAIN TYPES OF ENERGY RESOURCES USED BY CONSTRUCTION MATERIALS
ENTERPRISES, PERCENT OF ENTERPRISES
Source of energy
Electric power
Natural gas
Petroleum products
Coal and products
Other
Source: Survey of 122 enterprises of the construction materials sector.
According to respondents, energy accounts for
about 16.3% of production costs on average (the
proportion varies by segment from 1% to 55%). At
the same time, it should be noted that for almost a
half of enterprises (48.9%), these costs account
Prepared by BIZPRO
locations, the cement industry would still use rail.
Today, 11% of Yugcement output is delivered by
cement truck. this proportion will increase to 25%
by the end of the year.
Spokespersons for the Ukrcement Association
say this problem concerns all cement producers
that use the railways. Kryvyi Rih Cement, owned
by Heidelberg Cement, also started building its
own fleet of cement trucks several years ago.
Motor transport is another widely used means of
transportation. It delivers smaller-sized loads in
comparison with railway transport, but is more
flexible. Here too, however, obstaclesinfluence the
speed and cost of deliveries, including bad roads,
demands for informal payments at border
crossings or on the road, and delays on the
border (queues, customs fees, etc.). To avoid
complicated and expensive import procedures,
producers prefer to buy raw materials and inputs
from wholesale distributors.
materials is improved and appropriate new
production methods are developed; one of the key
ways of reducing fuel consumption in cement
production is reducing the sludge moisture
content.
Electric power is the main type of energy for the
absolute majority of companies in the construction
materials sector. It is used by 79.3% of
companies. A significant number of enterprises
are also using natural gas. Other types of energy
(petroleum products, coal, etc) are only used by
individual enterprises.
Percent of
enterprises
79.3
12.4
5.0
0.8
1.7
for 10% of production costs. For another 26.7% of
enterprises, energy costs account for 11% to 20%
of total production costs. For the remaining 24.4%
of enterprises, energy costs account for over 20%
in the total production costs.
88
 FIGURE 3-3. SHARE OF ENERGY COSTS IN TOTAL PRODUCTION COSTS, PERCENT OF
ENTERPRISES

11.1

13.3
48.9

Up to and including 10%

11-20%
21-30%
26.7 31-55%

Source: Survey of 122 construction materials enterprises.

The share of energy costs in the total structure of enterprises (31.3% and 23.8%, respectively) have
production costs is significantly lower for small costs at a level of 11% to 20%. Also, large
enterprises, where 62.2% of enterprises keep enterprises have the highest proportion of those
these costs at a level below 10%, whereas a (23.8%) for whom such costs exceed 30.0%.
significant part of medium-sized and large
FIGURE 3-4. SHARE OF ENERGY COSTS IN PRODUCTION COSTS FOR ENTERPRISES OF
DIFFERENT SIZES, PERCENT OF ENTERPRISES

Large
33.3 23.8 19 23.8
enterprises
Up to and including 10%
11-20%
Medium-sized
43.8 31.3 15.6 9.4 21-30%
enterprises
31-55%
Small
62.2 24.3 8.15.4
enterprises

Source: Survey of 122 construction materials enterprises.

Half the enterprises (50.0%) could not decide
what magnitude of energy price rise would have a
significant impact on their competitiveness. This
appears to be due to the fact that the majority of
construction materials companies are using
electric power as the main energy carrier.
Electricity is relatively cheap in Ukraine, so a
significant number of entrepreneurs are not too
sensitive about its impact on production costs
and, accordingly, they have never made any
estimates of how higher electricity prices would
influence their businesses.
Among entrepreneurs who answered this
question, a significant proportion are convinced
that even a moderate increase of energy prices
could impact their competitiveness. In particular,
nearly half of those who answered this question
(49.2%) would expect their competitiveness to
deteriorate even after an energy price increase of
10% or less. Only 23.0% of enterprises said the
limit for staying competitive is above the 20%
energy price-hike mark.

Prepared by BIZPRO 89
 FIGURE 3-5. ENTERPRISES’ ASSESSMENT OF WHAT ENERGY PRICE RISE WOULD DAMAGE
THEIR COMPETITIVENESS, PERCENT OF ENTERPRISES

23.0

49.2

Up to and including 10%

27.9
11-20%
20-55%

Source: Survey of 122 construction materials enterprises.

Large and medium-sized enterprises have the
highest “safety margin.” Where a threat to
profitability starts with an 20% rise in energy
prices for 40% of large enterprises and for 36.4%
for medium-sized enterprises, there are only 6.9%
small enterprises in the same position. More than
half small enterprises (55.2%) would suffer even
given an energy price rise of less than 10%.
If energy prices rise, entrepreneurs say their main
methods for reducing production would be
improving the manufacturing process and their
equipment. Some 41.9% of entrepreneurs
answered that way. Another 30.5% hope to switch
to cheaper energy carriers, and 22.9% intend to
forgo buying new equipment or expanding
production.

TABLE 3-5. METHODS OF REDUCING PRODUCTION COSTS IN CASE OF HIGHER ENERGY

PRICES, PERCENT OF ENTERPRISES*
Percent of
Methods of reducing costs
enterprises
Improved production processes and equipment 41.9
Switch to cheaper energy carriers 30.5
Forgo buying new equipment, expanding production, etc. 22.9
Saving energy and materials 21.9
Saving on payroll 11.4
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.

The majority of enterprises are taking some steps towards a more economical use of energy at
to introduce energy-saving measures, with 36.8% present; however, only 22.2% of enterprises are
of them actively engaged in such efforts and neither implementing nor planning to implement
another 29.9% implementing individual steps. such steps.
Some 33.3% of enterprises are doing nothing
FIGURE 3-6. STEPS TAKEN TOWARDS A MORE ECONOMICAL USE OF ENERGY, PERCENT OF
ENTERPRISES

22.2 Enterprise takes active steps

36.8
Enterprise takes some steps

Enterprise is doing nothing but

11.1 has plans
Enterprise is doing nothing and
29.9 has no plans

Source: Survey of 122 construction materials enterprises.

Prepared by BIZPRO 90
Large enterprises are more proactive in
introducing energy-saving technology. Some
88.0% of them are taking either active or certain
steps in this direction, as compared to 60.0% of
medium-sized enterprises and 61.6% of small
enterprises. This appears to be connected with
FIGURE 3-7. STEPS TO IMPLEMENT A MORE ECONOMICAL USE OF ENERGY RESOURCES
AMONG ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTERPRISES
Large
60.0 28.0
enterprises
Medium-sized
42.5 17.5 12.5
enterprises
Small
21.2 40.4 13.5
enterprises
Source: Survey of 122 construction materials enterprises.
The main steps undertaken by companies for
energy economy include:
– energy-saving modes of equipment operation;
– modernization of equipment and units;
– installation of new type of boilers and use of
boilers for waste incineration;
– using energy-saving technology and improving
the quality of lighting fixtures;
– capacitor equipment;
– switch to cheaper energy carriers;
TABLE 3-6. WAYS OF REDUCING PRODUCTION COSTS AS ENERGY PRICES RISE, PERCENT OF
ENTERPRISES
Activities
Improving processes and equipment
Changing to cheaper energy-carriers
Saving raw materials and inputs
Deciding to forgo procurement of new equipment, expansion of
production, etc.
Savings on payroll
Raising prices of products
Let us consider the issue of implementing
energy-saving technical, using some examples
from construction materials industry segments
(Guide “Energy-Saving Technologies,
Equipment, and Technical Solutions” / State
Committee of Ukraine for Energy Economy, SE
International Center for Energy Efficient
Technology, Kyiv, 2004).
Since the construction materials industry uses
energy both when producing materials and when
Prepared by BIZPRO
the fact that large companies are greater
consumers of energy and have a greater share of
energy in their production costs. The large
companies are, accordingly, interested in reducing
these costs to maximize their profits.
Enterprise takes active steps
4.08.0
Enterprise takes some steps
27.5 Enterprise is doing nothing but has
plans
Enterprise is doing nothing and
25.0
has no plans
– innovation and improvements in the production
process;
– support of state energy-saving program, etc.
It should be noted that entrepreneurs primarily
concentrate on improving processes and
equipment that could reduce their energy-intensity
(36.9% of enterprises), using cheaper energy-
carriers (26.2% of enterprises), and saving raw
materials and inputs (20.5% of enterprises)
Also, some enterprises indicate that they have
launched systems of monthly bonuses for energy-
savings.
Percent of
enterprises
36.9
26.2
20.5
19.7
9.8
6.6
using them in other industries, implementation of
the state energy-saving policy has two main
directions:
The first direction involves economy in the
production of construction materials (introduction
of energy-saving processes, materials, and
equipment, using waste energy, etc.);
91
The second direction provides for increasing the
production of energy-efficient structural and
heat-insulating, and heat- and sound-insulating,

105
materials. Using these saves energy (in housing
and industrial construction, shipbuilding, the
airframe industry, the power industry,
technology, etc.).
The Energy Saving Program is based on
developments by leading research institutions,
including industry institutes: the Scientific and
Research Institute of Construction Materials and
Products (NDIBMV), the State Institute for
Design of Construction Materials Industry
Enterprises (Pivdendiprobudm), the Ukrainian
State Institute of Glass (UkrDIS), and the
LvivbudmNDiproekt Scientific and Design
Institute.
GLASS INDUSTRY
Reconstruction and Modernization of
Building Glass Production Lines
Today, the float process is used to produce 90%
of the world’s building plate glass. According to
this process, molten glass, at a temperature of
about 10000 C, is poured on a molten lead
surface, where it spreads and floats due to
difference in density, which makes it possible to
produce a zero-defect surface.
Reconstruction and modernization of float
process plate glass lines at CJSC Lysychansk
Proletariy Glass Plant has to a reduction in
process loss and an increase in production of
quality glass by 6%. The specific fuel rate has
fallen by 4.1%.
The plant has launched an industrial-
technological complex for manufacturing safety
glazing, i.e., building-grade hardened glass
(heat treatment is used here to improve impact
strength and resistance to temperature
variations, which is relevant for the production of
energy-efficient glass units and structural
glazing).
Thanks to modernization and implementation of
effective technology solutions (automatically
controlled burners, new recuperators for heating
air supplied for furnace firing, sealing of furnace
loading areas, heat-insulation of furnace
components) in the vertical glass pulling
manufacturing system at Shop No.3 at Budsklo
Ltd., in Kostyantynivka, the company has
renewed production of sheet glass, 2 mm thick.
Fuel consumption has fallen by 3% and electric
power consumption by 1.2%.
Introduction of Energy-Efficient Glass
Furnaces Using Ukrainian Refractories
The Ukrbudmaterialy Corporation participated in
putting into production the Vilnohirsk Zircon
Refractories Plant. The industry institutes UkrDIS
and Pivdendiprobudm developed designs for
modern glass furnaces based on Ukrainian
Prepared by BIZPRO
refractories. Recommendations have been
developed and published for test-bench selection
of refractories for building furnace components,
including flat-roof burners. These ensure efficient
burning, as well as zone regulation of glass
manufacturing thermal conditions.
Launching glass manufacturing systems
equipped with recuperators or regenerators
made of refractories, which preheat air for
burning, reduces fuel consumption by 10%-12%,
and by up to 30% for new furnaces.
Thus, use of high-quality refractories and efficient
furnace linings extend the service life of furnaces
to 5-7 years and reduce fuel consumption by
10%-15%. Consumption of electric power falls by
3%-5%.
Implementation of Heat Insulation of Process
Units in Glass Industry
The UkrDIS Institute has developed guidelines
regulating implementation of heat insulation for
concrete process units at existing and new
facilities. The guidelines contain information on
the traditional and the new high-efficiency heat-
insulating materials, on optimal approaches to
heat-insulation, on thermal calculations of
insulation, and on economic indicators. Heat
insulation measures allow for a 10%-15%
reduction in glass production fuel consumption.
Use of Secondary Cullet for Manufacturing
Glass Products
Increased use of secondary cullet reduced
energy-intensity accordingly: 5% is equivalent to
30 kg - 60 kg of equivalent fuel, per ton of
finished product.
A decision has been made to build a facility for
making foam glass of secondary cullet in
Ukraine. Research has been conducted; the plan
is to build a line in one of the shops of the
Slovyansk Integrated Ceramics Plant. Foam
glass is an efficient material for heat-insulation. It
combines properties of heat-, fire-, and hydro-
insulation, as it has a specific density of 140 to
220 kg/m3 and is nonhygroscopic. Use of foam
glass in building projects reduces heat losses by
2.5 to 3 times, and a block 120 mm thick has the
same heat-insulating properties as brickwork that
is about 950 mm thick. Heat-insulation for roof
coverings seems to be the most efficient use for
foam glass.
Developing Glass-Making Technology for
Energy-Efficient Glazing
Given Ukraine’s climate, heat-insulation in winter
is the most important function of transparent
construction. Heat is lost through windows by
means thermal conductivity, convection, and heat
radiation. To minimize heat losses due to thermal
92
conductivity and convection, multiple glazing is
used. The recently invented multiple-glazed unit

107
has become an integral component for modern
windows. Glass units have high heat- and sound-
insulating properties thanks to the two or three
glass sheets tightly sealed along the perimeter,
with layers of dry air or inert gas inside. Further
improvement of the heat-resistant properties of
windows by increasing the number of glass
sheets is not economically justified. To this end,
energy-saving types of glass are being
developed and applied, including k-glass with
special “hard” coating and I-glass with special
“soft” coating.
To give float glass the heat-saving properties of
k-glass, a thin layer of metal oxides is applied on
the glass surface when it is still on the production
line (by means of pyrolysis spraying); for i-glass
properties, a multilayer coating of successive
layers of silver, other metals, and dielectrics is
applied to finished cold glass by means of
vacuum deposition.
Plans are to implement technological innovations
devised by the Ukrainian State Institute of Glass
(UkrDIS) and the Scientific and Production Rubin
Association and launch production of polished
plate glass with multifunctional properties using
the pyrolysis method.
To reduce consumption of energy for air-
conditioning, special sun glass is used (mass
dyed glass, as well as certain types of coated
glass).
Other promising energy-saving areas of Institute
research include methods for producing glass
with selective absorption across the whole light
spectrum.
The developments include copper-haloid
photochromic glass, a technology for producing
the heat-absorbing float glass, and a method of
applying coatings based on sol-gel method.
Research is underway to develop technologies
for physical coating application, in particular
multilayer systems of electrochromic coating.
The Institute has developed the technology for
applying a film-forming solution to large-size
glass. This sun-protective coating does not
require rare materials, and the resulting film has
an optical transmission of 75%, and good
mechanical and climatic properties.
Given the acute shortage of fuel and energy
resources in Ukraine, UkrDIS designs that will
reduce heat losses by 15%-20% has special
relevance.
CERAMIC INDUSTRY
Phased Modernization of Existing Production
Lines, and Introduction of Modern Equipment
for Production of Building Ceramics
Prepared by BIZPRO
Plans are to launch and implement modern
transfer lines for making a wide range of ceramic
tiles, using imported equipment, at the CJSC
Kharkiv Tile Plant and OJSC Lviv Ceramic Plant.
Specific consumption of fuel for interior tiles is to
be reduced to 4.7 kg/m2, and for floor tiles to 8.0
kg/m2.
Phased reconstruction of shops at the CJSC
Slavuta Budfarfor Integrated Works is underway.
They are to be equipped with imported and
Ukrainian machinery.
Thanks to implementation of efficient fibrous
refractories and thermal insulation of tunnel
furnaces, and to reduced material-intensity of
linings for furnace cars, specific fuel
consumption for production of sanitary ware has
been reduced to 480.0 kg/ton.
Introduction of Modern Driers for Nonmetal
Industry
Work continues to modernize production of
enriched kaolin by launching energy-efficient
driers at CJSC Hlukhovetsky Mining and
Enrichment Integrated Works and CJSC
Dniprokaolin. The new driers are based on a
new way of drying raw kaolin in direct contact
with natural gas combustion products. This
would reduce fuel consumption in kaolin
production by 10%-15%.
NONMETAL INDUSTRY
Introduction of Modern Equipment, and the
Expanding Range of Stone-Working Industry
Products
A process line based on Italian stone-breakers
for production of paving blocks and road pitchers
has been put to work at OJSC Yantsevsky
Granite Quarry.
OJSC Novoselytsky Quarry has renewed making
marble blocks by installing modern rope sawing
equipment, which allows for higher yields of
blocks from the solid mass due to reduced
losses, and because less energy is used for their
subsequent dressing.
Plans are to rebuild the stone-breaking sections
at CJSC Holovynsky Granit Quarry and OJSC
Malobuzukivsky Quarry.
Thanks to the above measures, specific electric
power consumption is expected to fall by 5%-
10%.
WALLING AND BINDING MATERIALS
INDUSTRY
Resource-Saving Technology and Equipment
for Making Efficient Walling
Ceramic walling (bricks and blocks), thanks to its
high architectural, technological, and comfort
93
properties, holds a significant share of total
walling construction materials volume, despite

109
the fact that making it requires relatively high
energy inputs.
To reduce energy consumption in ceramic tile
production, the following step are planned:
- to implement transition from traditional plastic-
making to making products from lower-humidity
mixes and to semi-rigid making, which would
increase productivity of process lines, ensure
more voidage, improve product appearance,
expand the range of ceramic products, and
reduce the fuel and energy required for mass
preparation of mix and drying and firing of
ceramics;
- to continue providing enterprises with tooling
for the plastic and semirigid presses needed for
production of conditional economy (density
1400-1600 kg/m3) and economy (up to 1450
kg/m3) ceramic bricks and stones with voidage
of 22%-32%; 25%-45%, and walling units with
voidage of up to 55%.
Technical re-equipment and intensive
implementation of ceramic brick producton using
plastic-making is carried out at an accelerated
pace at walling subsector enterprises. In
particular, OSCJ Budmaterialy, based in Bila
Tserkva, reduced its specific fuel consumption
by 2.6% in 2003, thanks to kiln reconstruction
and optimization of brick-firing conditions.
OJSC Bolekhiv Construction Materials Plant
Authority, JV Brick Plant Ltd., based in
Zymohirya, and OJSC Kirovohrad Brick Plant
have started making bricks with voidage of 22%-
37%, and ceramic blocks with voidage of up to
40%, which corresponds to the following
proportion of reduction of fuel and energy
resources and raw materials: an increase of
voidage by 1% reduces costs by 0.7%.
NDIBMV has developed new, nontraditional
process equipment for making ceramic bricks by
semidry pressing.
The equipment lowers energy use by 25%, and
unit capital costs and production costs by up to
20%. The quality of raw materials preparation
and good product pressing conditions are also
provided for.
Technology for Firing Low-Grade Solid Fuel
A number of technical solutions and an
integrated unit base for maneuvering the
dominant types of fuel in Ukraine are expected to
be implemented in the walling industry.
According to Pivdendiprobudm estimates,
stabilization of production, with improved furnace
productivity, would reduce consumption of fuel
types in short supply at brick plants by 20%.
Prepared by BIZPRO
Using Waste from the Coal and Power
Industry for Production of Wall Materials
The industry has significant production capacity
for processing man-made waste. Given
appropriate economic incentives and an
increase in the range of construction materials
produced, their use could be increased to
14.5%-20% of the total amount of raw materials
in the next three to five years.
The research and development efforts of the
institutes NDIBMV, Pivdendiprombudm,
LvivbudmNDiprojekt, and others, as well as the
production experience of industry enterprises, all
indicate that using coal-containing waste as the
main raw material, as well as as a fuel and
mineral additive to clay in the production of
ceramic bricks, reduces fuel consumption for
1,000 equivalent bricks by 20% to 70%. For
example, the CJSC Kolomyya Construction
Materials Plant Authority is firing bricks using
natural gas, at a rate of 100-110 kg of equivalent
fuel and waste coal, which contains 70-90 kg of
equivalent fuel for 1000 equivalent bricks. The
industry-wide level of commercial fuel use for
the production of ceramic bricks amounts to 175
kg for 1000 equivalent bricks, which points to the
advisability of additional processing of man-
made raw materials.
Estimates show that the majority of walling
enterprises are capable of processing waste
without significant capital investment or
installation of additional equipment for preparing
waste coal. The technology developed by
industry research institutes, based on optimal
compositions of mixes, does not require
additional specialized equipment for filtering
emissions either.
According to the estimates made by the
Ukrbudmaterialy Corporation, 19 brick
enterprises were already capable of processing
250,000 to 350,000 tons in 2004-2005, which
corresponds to an increase in the use of waste
by 5-7 times for the industry in general. Taking
into account the renewal of brick production and
a further increase in output in 2007-2010, it
would be possible to use 800,000 to 1,200,000
tons of coal and power industry waste per year.
Development and Implementation of New
Energy-Saving Thermal Units and Burners
New energy-saving thermal units and burners
have been developed:
- a chamber dryer for transverse reversible
blowing of ceramic products with movable
turbolator (reduction of heat losses for
evaporation of 1 kg of moisture to 900-1100
ccal/kg against 1500-1800 ccal/kg for existing
dryers);
94
- a tunnel furnace for firing ceramics, providing
energy use reduction by 10%-20% compared to
the furnaces currently in operation. This is
achieved thanks to automation of the firing
process, use of high-efficiency thermal
insulation, good design, improved sealing, and
efficient use of secondary heat;
- energy-saving gas burners, a standard range
of which rated from 8 to 16 m3/sec has been
developed by NDIBMV and the Gas Institute of
the Ukrainian National Academy of Sciences.
Low and medium pressure burners are intended
for the firing systems in tunnel and circular
furnaces in wall ceramics-making, and in shaft
and rotating furnaces for firing limestone. The
developed gas burners have passed state tests
and have been recommended for gas fired units.
The experience of using these gas burners at a
number of enterprises confirms the possibility of
reducing consumption of natural gas for firing of
products by 15%. The new system of firing
should be implemented taking into account the
properties of specific raw materials, furnace
construction, and its thermotechnical and
aerodynamic parameters.
The Pivdendiprobudm Institute has designed a
new tunnel furnace for “self-firing” of ceramic
bricks from raw materials made up of 100% of
waste coa. This contains 14% of carbon, whose
burning in the furnace provides for brick self-
firing without use of primary fuel. Using the extra
heat in the firing zone at a rate of 1.13 · 106
ccal/hr is also foreseen.
Development of Production of Porous
Products and Their Use in Mass-Scale
Building
Porous concrete is a promising wall-building
material made of sand, cement, lime, and
aluminum powder (afoaming agent) using the
autoclave hardening method. This material has
high heat-resistance and heat-storage
properties, is capable of significantly reducing
energy-consumption during its production and in
buildings and structures, and provides for more
comfortable housing. Porous concrete is an
environmentally-clean material, emitting no toxic
substances. the comfort coefficient is 2, which is
second only to wood, which has a coefficient of
1 (to compare, ceramic bricks’ comfort
coefficient is 10).
In 1996, new standards were institututed for
heat resistance of external filler structures.
These exceed heat- resistance of buildings
made of traditional walling by nearly 2.5 times.
For further development of construction and to
ensure compliance with heat resistance
standards, the only option is to make a transition
to multilayer structures, using light heat-efficient
Prepared by BIZPRO
construction materials and porous concrete
products.
The energy-intensity of porous concrete,
including fuel costs, is 2-2.5 times lower than the
energy-intensity of ceramsite concrete and 1.5
times lower than fuel and energy consumption in
making ceramic bricks.
The heat-resistance of porous concrete with a
density of 400 to 600 kg/m3 is 1.5-2.5 higher
than that of traditional wall materials, which
reduces consumption of energy resources for
maintenance of buildings by more than 20%.
Structural and heat-insulating products with a
density of 400-600 kg/m2 and “thermoblocks”
with a density of 250-400 kg/m3, according to
researchers, will take leading places in the
range of construction materials on the Ukrainian
market. This is consistent with the state
industrial policy of energy-savings and
overcoming the resource-intensive nature of
production.
The design capacity of the OJSC Obukhiv
Porous Products Plant has been boosted by
more than a third. The company is completing
second-phase construction of a facility with an
additional capacity of 80,000 m3 of porous
concrete products per year.
Production is being renewed and output of
porous concrete blocks increased at OJSC
Bilhorod-Dnistrovsky DEZNB, OJSC
Sylikatobeton in Sumy, and OJSC Zhytomyr
Integrated Plant of Silicate Products.
THE POLYMER, HEAT-, SOUND-, AND
HYDRO-INSULATING INDUSTRY AND THE
ROOFING MAProduction Technology and
Use of Modern Construction Materials for
Energy-Efficient Buildings and Structures
The OJSC Zhytomyr Integrated Plant of Silicate
Products has launched production of extrusion
foam polystyrene on a line with a capacity of 17.5
m3 per year. This is a new class of heat-
insulating materials, which thanks to their water-
resistance, high mechanical strength, and
structural stability against impact of external
factors serve as reliable protection against
extreme atmospheric conditions. According to
preliminary estimates, application of foam
polystyrene boards 50 mm thick for heat
insulation of structural elements of buildings and
structures would reduce heat losses 2.7 times.
The OJSC Chernivtsi Heat-Insulating Materials
Plant has started making structural basalt heat-
insulating materials for buildings. The company is
expanding and modernizing its production. Basalt
Technologies Ltd. in Irpin, Kyiv oblast, and CJSC
Bilychi Teplozvukoizolyatsiya Plant are renewing
production.
95
The NDIBMV Institute has developed a process
for expanded production of perlite, as well as of
products made on its basis, using raw materials
from the Berehove deposit. A mobile perlite plant
has been designed, and the first pilot unit
installed at the Lipetsk Steel Plant in Russia. The
integrated equipment allows for producing perlite
sand directly on the production or building site.
The perlite is to be used for concrete products,
dry building mixtures, and as fill heat-insulation.
The density of expanded perlite sand is 80-120
kg/m3, so products made of expanded perlite
(boards, blocks, plaster) serve as high-efficiency,
heat- and sound-insulating materials. Heat
conductance of products with densities of 80-250
kg/m3 amounts to 0.04-0.09 W/mcm.
The OJSC Slavuta Ruberoid Plant is using
progressive technology to increase production of
high-quality, European grade soft roofing at a
line rated for 12 million m2 per year. Work has
started on installing the second production line.
The company was the first in Ukraine to launch
production of Teplozvukoizol heat-insulating,
acoustical material; technology for making
bitumen roof tiles and other efficient water-
proofing materials has been implemented. The
production is based on modern technology,
which provides for exclusion of an energy-
intensive process of bitumen oxidization and
reduction of fuel consumption to 60 kg of
equivalent fuel and electric power to 34 kWh of
electric power per 1000 m2 of soft roofing.
OJSC Obukhiv Porous Products Plant has
started production of modified special-purpose
building mixtures for seamless (glued) wall
laying, which exclude cold layers. The efficiency
of such mixtures has been proven by building
practices. This tendency in the construction
materials industry is developing rapidly, not only
in terms of increased use of the mixtures, but
also thanks to creation of a domestic raw
materials industry.
Manufacturers of dry building mixtures are
satisfied with the products of OJSC
Pryborzhavske Construction Materials Plant
Authority (marble powder), OJSC Gipsovyk,
based in Kamyanets-Podilsky (separated
plaster), OJSC Novoselivsky Mining and
Concentration Integrated Plant (ground quartz
sand), and OJSC Obukhiv Porous Products
Plant (hydrated lime).
Prepared by BIZPRO
Production of dry building mixtures with special
concrete additives and modifiers seems
promising. Such concrete will be used for
making thin-wall structures. It weighs 2-3 times
less than high-strengths, helps reduce a
building’s energy-intensity.
SANITARY WARE INDUSTRY
Introduction of Efficient Heaters and Metal
Hardware for Windows and Doors
CJSC Luhansk Foundry and Mechanical Plant
has launched production of enhanced heat-
irradiation heaters of lower metal-intensity and
modern design, in models MS-140 and RO-80.
OJSC Simferopol Santekhprom has started
making fittings for windows and balcony doors
with single-, double-, and triple-glazing, as well
as more than 50 models of locks and hardware
with electroplating or polymer coating based on
energy-saving technology.
INDUSTRYWIDE ACTIVITIES
Use of Waste Energy
Activities are underway to install glass furnaces
equipped with heat-utilizing units. The
effectiveness of this approach has been
confirmed by the operational experience of the
CJSC Lysychansk Proletariy Glass Plant (where
the annual volume of using waste energy has
reached 16,700 Gcal, the equivalent of saving
2,700 tons of equivalent fuel).
There are systems for utilizing heat of gases
discharged from walling industry furnaces. For
instance, the OJSC Kherson Integrated Plant of
Walling and Binding Materials is annually
producing up to 10% of process heat in its heat-
utilization units.
Introduction of Fuel and Energy Control and
Metering Devices, Conducting Energy Audits
and Energy Management, and Developing
Technologically Justified Consumption
Standards
The above steps are expected to help reduce
fuel consumption in making construction
materials by 3%-5%. The experience of the
industry’s best companies testifies that savings
can be achieved without significant capital
outlays.
96
4. SALES
Manufacturers are striving to occupy their niches
or win the maximum market share. In addition to
manufacturing, they need to develop product
sales channels.
The primary sales channels for construction
materials manufacturers are building
organizations, wholesale distributors, specialized
stores and construction materials supermarkets.
Large companies are also creating their own sales
networks and sell products through own
representative offices.
Some distributors of construction materials work
directly via manufacturer warehouses and sell
construction materials in large batches to building
contractors. This is positive, because it offers the
chance to maintain control over sales channels,
develop specialized knowledge about producst,
and work in close cooperation by setting up
training seminars and bonus systems. Such
practices are effectively reduce the number of
intermediaries and trade surcharges.
FIGURE 4-1. PRODUCT SALES CHANNELS, PERCENT OF ENTERPRISES*
68.0
49.2
32.0 32.0
Source: Survey of 122 enterprises in the construction materials sector.
* The sum total of percent may exceed 100%, as several answer options could be selected.
Also, there are some differences, depending on
company size. If direct sales through warehouses
and on an individual order basis are used in
almost equal proportions by enterprises of all
sizes, the share of enterprises using selling
through its own retail chains is smaller for small
enterprises. For example, 48.1% of large
enterprises sell their produce through own retail
Prepared by BIZPRO
However, if a manufacturer is uninterested in
controlling the distribution process, he can also
work with regional distributors, who resell goods
to other wholesale chains.
In addition to the above sales channels, markets
and bazaars are still active in this sector. They sell
goods to retail customers. Each sales channel has
its strengths and weaknesses, and each company
selects a system that suits it best.
Based on survey data, direct sales to end users
from the warehouse and sales on an individual
order basis were the most popular sales channels
in 2005, with 68.0% of enterprises selling their
produce in these ways. Second place belongs to
distribution via wholesale agents, with 49.2%4 of
enterprises selling their products in this manner.
Retail intermediaries and direct sales through
enterprises’ own retail chains were used by about
a third of companies (32.0% each).
Agents - wholesale traders
Agents - retail traders
Direct sales through proprietary retail
chain
Direct sales to end users (from
warehouse, custom orders, etc.)
networks; but among medium-sized companies
only 23.8% do, and among small enterprises
30.2% do. The same correlation is also true for
sales via wholesale traders, with small enterprises
being the least likely to resort to their services
(41.5%), while 50.0% of medium-sized enterprises
do and 63.0% of large enterprises.
97
 FIGURE 4-2. PRODUCT SALES CHANNELS USED BY ENTERPRISES OF DIFFERENT SIZES,
PERCENT OF ENTERPRISES*

Large enterprises 63.0 37.0 51.9 33.3

Medium-sized
50.0 35.7 23.8 69.0
enterprises

Small enterprises 41.5 26.4 30.2 67.9

Agents - wholesale traders

Agents - retail traders
Direct sales through own retail chain
Direct sales to end users (from warehouse, custom orders, etc.)

Source: Survey of 122 enterprises in the construction materials sector.

* The sum total of percent may exceed 100%, as several answer options could be selected.

As seen from the figure, the larger a company is, the
greater the number of sales channels it uses. This
can be explained by differences in production volume.
For small enterprises with smaller production
volumes, a limited number of sales channels might be
sufficient. Large enterprises, however, to ensure sales
of their large production volume, have to take
FIGURE 4-3. PROPORTIONS OF VARIOUS CHANNELS IN SALES OF CONSTRUCTION
MATERIALS PRODUCTS, PERCENT OF PRODUCTS
1.5
24.2
advantage of the maximum possible number of
channels.
As regards shares of various sales channels used in
the sector in general, direct sales to end users from
warehouses and sales on an individual order basis
account for the largest share of finished product sales
(50.0%). Then come sales through wholesale traders
(25%).
Agents - wholesale traders

Agents - retail traders

Direct sales through

proprietary retail chain
50.0
10.6 Direct sales to end users (from
warehouse, custom orders,
etc.)
Other
13.7

Source: Survey of 122 enterprises in the construction materials sector.

Manufacturers of dry building mixtures use
traditional sales arrangements. The majority of
enterprises engage large distributors with
wholesale warehouses as partners.
The majority of manufacturers have about five
products that generate continued sales, even
though total ranges are much wider. The
percentage of sales to building companies,
bypassing intermediaries, varies from 0 to 30,
depending on the manufacturer (The Kontrakty
Ukrainian business weekly (No.22 of 30 May
2005).
In recent years, however, the geographic structure
of sales is changing, with large manufacturers
based in Kyiv starting to expand to the provinces.
At the same time, regional leaders are moving in
the opposite direction, occupying the capital city

Prepared by BIZPRO 98
market. Small firms, as before, operate within their
local regional markets.
The sales structure on the dry building mixtures
market can be represented as follows (The
FIGURE 4-4. DRY BUILDING MIXTURES SALES CHANNELS
HOW THEY SELL DRY MIXTURES
Building
companies
Producer
Renovation
teams up to
20 persons
Both construction materials manufacturers and
traders have strengthened their positions in the
last three or four years. Relations between market
players are becoming more civilized with every
passing year. However, there remain numerous
problems in how sales are organized. The number
and complexity of these problems depend on
several factors. First, they depend on the
country’s general economic development.
Second, on a company’s financial capacity and
business management techniques. Third, they
depend on the level of development of companies
(distributors and dealers) and on competition in
specific submarkets within the building industry.
The latter two factors are decisive when a
company is selecting distribution channels. The
survey indicates the difficulties they have to face
and their criteria for arranging how their goods are
sold. Not infrequently, companies use radically
different arrangements for promoting their
products. Also, depending on a multitude of
factors, some companies are using several
distribution channels simultaneously, i.e., pursuing
a mixed sales system.
Dealers and Distributors
The role of powerful trading companies is growing
as the building industry is evolving. Naturally, the
majority of manufacturers are interested in
working with strong distribution companies. The
lack of such companies, however, often drives
producers to get involved in direct distribution.
Large producers could potentially have 20 to 50
dealers. As a rule, companies are developing
Prepared by BIZPRO
Kontrakty Ukrainian business weekly (No.22 of 30
May 2005):
Dealer Shops
Private
individuals
extensive dealer networks by promoting materials
that can be “easily” sold at non-specialized
building stores, including dry mixes, plasterboard,
varnishes and paints, miscellaneous building
chemicals, etc. Specialization is unimportant in
this segment. The main benefits of working with
dealers are as follows: they know their local
markets; they have established sales systems;
there is savings when it comes to maintaining of
offices, warehouses, etc., in the regions.
According to a majority of companies, the
disadvantages of working with dealers are as
follows (O. Rudenko, “Budibuilding 2003” //
Biznes, 18 August 2003 (No.33), pp. 126-129):
first, there is always a possibility that another
supplier might entice a dealer (however, given an
extensive sales system, it is unlikely that all its
participants would reject the business of one
supplier for another simultaneously); secondly, it
is impossible to directly influence dealer activities
or control prices (which tends to lead to dumping);
there is no customer feedback; there is insufficient
information about regional market developments.
Things could be smoothed over by developing an
effective pricing policy. Also, operators believe it
would be useful to hold informational meetings
with dealers. Besides, the most prudent suppliers
are trying to support the sales process, research
markets, etc., using trade representatives and
merchandisers. These, as a rule, occupy staff
positions within the company. Approaches can
vary widely. Some companies set up non-trade
offices; others do without special offices.
99
Proprietary Sales Units
As a rule, these are branches or affiliated
enterprises.
A manufacturer or a large importer might want to
establish its own sales entity under the following
circumstances:
1. There are no mature trade companies on the
market. 2. Special after-sales servicing is
required. This might include various finishing
materials, or articles for whose installation special
calculations and contract supervision is needed.
The key benefits of sales through branches are
control of network pricing policy, reliable market
information and hence the possibility of more
accurate sales planning, availability of a
company’s own skilled staff, and warehouse and
office facilities.
Here, however, is the main drawback of this
system, namely the need to outlay money to
establish a branch and to keep spending money
to maintain it. Primary investment might run from
several thousand dollars to $15,000, depending
on the branch activity (store, office with
warehouse, etc.) and method of its establishment.
There might be problems with recruiting
appropriate staff. Besides, managing the network
and doing warehouse inventory and logistics lead
to problems.
Franchising
Many construction materials traders consider this
approach promising. The advantages include
expanding a company’s network under the same
trademark, without substantial expenditures.
However, according to the operator data, a
franchising network is less profitable than a
company’s own branches. Besides, there are
difficulties in maintaining performance standards
among franchising network participants.
The Ukrainian building market is developing
rapidly: by 5%-30% per year for trade in
construction materials; and by 20%-40% in
supplies for building organizations
(http://news.elcomart.com/print/Stroitelnotorgovyj_
format). Overall market growth is due to the
gradual transition of builders to European
standards. At the same time, large building
concerns can work with a manufacturer or
distributor directly, which puts large cash flows
outside the trade sector.
Experts identify the following trade formats on
the market in general:
1. Store depot (both single outlets and chain
facilities) – a commercial facility with floor area of
800 m2 to 6000 m2, which works with B2B clients,
about 60%-80% of sales and B2C (business to
customer) customers – about 20%-40%).
Prepared by BIZPRO
2. Chain stores specializing in sales of individual
groups of goods and department stores.
3. Small stores with a trade area of up to 500 m2.
4. Trade outlets at open-air building markets –
stalls, containers, small specialized stores or
pavilions.
5. Large building stores with a comprehensive
product range (departments: sanitary ware,
construction materials, flooring, tiles, garden
plants, garden and house tools and accessories,
universal house goods, doors, wallpaper, and light
fixtures), operating based on the DIY format.
In experts’ opinion, the Kyiv market is the most
mature. The above formats are sufficiently
developed in it. The regions are seeing an
evolution of trade practices and a constant
reshuffling of formats, even though sustainable
market arrangements are on the rise. The market
is developing, some facilities are seeing
transformations, and customer requirements are
changing. For example, there open-air markets
are declining. Civilized trade formats are
developing and improving (e.g., DIY-format trade
outlets are emerging with floor areas over 4,000
m2). With the advent of foreign operators, there
will be a more definitive market structuring (e.g.
METRO on the food market).
There are two segments on the civilized trade firm
market: professional (whose target audience is
medium-sized and small building organizations
[B2B]), and mass market (whose target audience
is end users, investors who are independently
producing materials and contracting
professionals).
The professional segment is represented in
Ukraine by two formats. The most common is
showroon+warehouse (21 Stolittya, Budivelni
Rishennya) and store warehouse. The
showroom+warehouse type consists of a store
(showroom) and warehousing premises or a
distribution center (Tvoya Kimnata). The
weakness of this model is the significant increase
in amount of time required for purchase. As is
quite often the case, goods are represented in
showrooms as display only (often, the stock of the
required product in the warehouse is insufficient).
Advantages of this format include convenient
presentation of goods by categories, and
availability of the whole range in large volumes in
a warehouse shop, which allows for minimizing
time needed for the purchase.
There are also regional markets that are quite
diverse and that can be segmented by the degree
of their maturity. For example, there is only one
warehouse store in Poltava, with a floor area of
3,000 m2. It targets professional builders.
100
The main costs of building a trade center are for
erecting the building frame, installing façade
systems, and doing finishing work. The most
costly materials include concrete for making the
cast frame (up to 40% of the total cost of all
materials), façade systems, and roofing. The
building cost is between $450 and $700 per 1 m2
(e.g., Kvadrat on Lukyanivka, where 1 m2 cost
$650).
The special feature of building commercial
properties is that there is a great amount of one
type of material and a relatively small amount of
others. Building companies are forced to
cooperate with shop warehouses to place smaller
orders. Experienced builders have standard
solutions for such matters. They have database
that are updated for all required product items.
The availability of direct contracts with
manufacturers or exclusive distributors allows
more efficient spending of funds.
For large building companies, an important
criterion when selecting a supplier is the latter’s
possession of finishing materials, which comply
with quality, volume, and price requirements. A
decisive factor when placing an order is a
supplier’s expertise, his ability to provide the
required range of additional services, such as
loading and delivery to the construction site.
Procurement of construction materials is a
builders’ responsibility rather than that of a
managing company. However, certain criteria for
selecting suppliers are prescribed. Many
requirements are standard, including pricing and
quality. Experience shows that as time goes by, a
certain group of companies emerges who are
worth cooperating with.
In the showroom warehouses segment,
customers are categorized by occupation as:
- general contracting companies;
- building companies specializing in finishing work;
- companies engaged in installation and servicing
of sanitary ware;
- companies specializing in electrical equipment
and servicing power networks and devices.
Many players on the construction materials
market were not prepared to estimate its volume.
However, nearly all of them agree that it is
growing: 10%-20% (depending on the season) for
the Tvoya Kimnata chain; 5%-15% (per month) for
Domostroi; 30%-40% (per year) for Nova Liniya.
Experts estimate the Kyiv market at $3 billion,
where trade accounts for only 10%. Rising living
standards mean the market is constantly growing,
and there are further opportunities for growth.
According to Serhiy Klymenko, the Budmaks
chain has achieved the sales figure of $350 per
square meter per month, which is comparable to
Prepared by BIZPRO
the performance of efficient Western chains.
Regional differences are insignificant. In the
national network of Budmaks building warehouse
stores, professional builders account for about
80% of all sales. At the Enso Group (Budivelni
Rishennya TM), they do not keep track of their per
square meter turnover, arguing that this measure
is related to classical retail trade.
The largest nationwide warehouse stores include:
Budmaks, Enso Group, XXI Stolittya, and some of
outlets of the Tvoya Kimnata chain. They are
targeting professional buyers. Also, each regional
center (sometimes even a rayon center), has a
local company. A warehouse store is understood
by operators as follows: there is a showroom,
where customers can see the basic range of
construction materials offered by the trade chain,
and where they can get information, become
familiarized with manufacturer catalogs, and
receive advice from industry experts. There is also
a warehouse, from where goods are delivered
after paperwork is completed and the order is paid
for.
Some wholesale suppliers (e.g., Oldi) are also
working on developing retail business. According
to one industry player, the most rapid sales
growth over the last season was observed in the
formats that resemble the supermarket (in terms
of floor area and number of commodity groups).
According to market participants, this format
accounts for 20%-25% of construction materials
sales in the capital. The share of warehouse
stores could also increase if existing Kyiv
construction materials warehouses are
reformatted as a result of tough competition and
the advent of foreign chains. A simplified system
used in this segment is “price-warehouse-
delivery.” There is a trend toward orienting
warehouse stores either towards retail or toward
professional builders. The needs of end users
differ from those of professionals, and it is
impossible to develop the two directions within
one store.
The chain format is employed by Tvoya Kimnata,
Budivelni Rishennya, Budmaks, XXI Stolittya,
Maister (Dnipropetrovs’k), Dniprokeramika
(Dnipropetrovs’k), Meta-impeks, Epitsentr, Nova
Liniya, Oldi, Dekor-servis, Panelektro, Kapro, and
Palas (Simferopol).
As the construction materials market is constantly
evolving, existing companies intend to increase
their presence. For example, Nova Liniya, which
opened its first supermarket in 2001, had three
facilities at the end of 2005. Epitsentr has
launched its second hypermarket recently. Chain
availability allows an enterprise to:
- buy products at lower prices;
101
- realize comprehensive cooperation with national
building operators;

118
- optimize logistics;
- reduce distribution costs;
- work more flexibly with inventory;
- conduct advertising and promotion campaigns
more efficiently.
The segment of small stores with a trading floor
areas of up to 500 m2 is very densely populated
on the market. Given the great demand for
construction materials and a non-saturated
market, they could coexist in harmony with larger
formats.
It seems reasonable to subdivide trade outlets into
department stores and specialized stores. Their
advantage is proximity to the customer (in the first
case) and the wide range of goods presented
within one category (in the second case).
Department stores try to accommodate a greater
range of popular products in convenient
packaging. These operators only rarely work with
manufacturers directly. They resort to the services
of large warehouse stores and wholesale centers.
These stores are similar to food discounters.
The capital has seen the emergence of large
construction materials hypermarkets, which
accumulate the widest possible range of goods
under one roof. Increasingly, retailers are
expressing concern about the share held by small
building stores. They believe that, unless they
specialize, they could be forced out of the market.
They quote the example of Hungary, where
following the arrival of large construction materials
trade players, such as Obi, Kastorama, Bauhaus
AG, and others, local chains had to move from
selling a general range of products to specializing.
In addition to areas within general open-air
markets, there are four specialized building
markets:
1. Lisovyi (Yunist). There are about 1,500 people
employed on the market today; one stall takes up
about 2 m2 in area. The Epitsentr hypermarket is
located nearby.
2. Shpalernyi (wallpaper) market on the Circular
Road (speed tram route terminal);
3. Petrivka (small, civilized market).
4. Heroyiv Dnipra.
According to available information, there are plans
to build a trade center with a total area of about
18,000 m2 on the site of today’s Yunist market.
Only the first floor will be designated for selling
goods typical of today’s construction materials
market, tools, household and electrical goods,
home appliances and sanitary ware. The
Shpalernyi market is constantly shrinking due to
problems with product range and prices. Experts
Prepared by BIZPRO
quote several areas in which an open-air market
cannot compete with civilized trade formats:
- conditions of product preservation are not
complied with;
- prices are constantly growing due to small
procurement batches, compared with the contrary
trend for supermarkets;
- safety;
- there are no guarantees of quality, with
counterfeit goods being quite common (some
markets attract low-income social categories).
Except for warehouse chains, the building
supermarket format is the most capital-intensive
one. Today, this format is employed by
supermarkets like Nova Liniya, Oldi, Domostroi,
and Epitsentr in Kyiv. There are no specialized
building supermarkets in many of the regions.
This format is relatively new for the construction
materials market. Experts say that the operational
conditions and cost structure of DIY outlets in
western Ukraine are such that they cannot offer
the lowest prices. Their main competitive
advantage consists in the wide range of goods
theyoffer, and the main earnings are from smaller
articles: house and garden items, house wares,
interior decoration items.
Competition on the market is becoming more
intense. The entry barrier is rising, and only
foreign investors prepared to invest about $50
million in network development may compete on
an equal footing. Today, it is important to decide
on permanent partners and make long-term
contracts. These are signs of the development of
civilized trade and qualitative growth. The
foodstuffs retail sector is developing more
intensively, as food is bought on a daily basis. The
market will stabilize into a format where 10,000-
15,000 product mix items are sold. As trade
outlets develop, requirements for exclusive
designs will increase accordingly. Therefore,
demand will grow for exterior and interior
structural components. At the same time, basic
structural components will be procured in large
batches (and for several sites).
Lack of available sites for placing commercial
facilities is becoming a problem. There are many
new good that are new to customers; even
experts might have trouble getting to know them
all. Therefore, some 20 to 30 persons have to be
present on the trading floor at the same time,
which would be unusual for Western companies.
In addition to needing advice, very frequently
customers are physically unable to carry
everything they buy out with them. If a trader
works with a building company, the issues of
additional service, discounts, etc., come up. The
majority of companies have to develop their own
logistics departments, expand support facilities for
102
providing additional services (delivery of large interest in Ukraine: initially, in the retail food
batches, delivery of goods bought by one sector, and now, in the building sector. Proprietary
customer to different sites). Trade in Kyiv is production facilities are being developed by:
characterized by higher turnover: goods of higher Dniprokeramika, Enso Group Holding Company
quality are in demand here, and they have (Budivelni Rishennya TM), the Maister group of
appropriate prices. There are exceptions, companies, Anzhio Private Firm, and the 21 Vik
however. For example, high-quality, expensive Corporation. Everybody is worried about the
Johnstone’s varnishes and paints from UK’s advent of a German Bauhaus AG, which owns a
SigmaKalon concern are being successfully sold network of 175 construction materials
all over Ukraine. According to a spokesman from supermarkets in Europe, and which made an
Enso Group, 50%-60% of retail trade in Kyiv is announcement a year ago about its intention to
conducted through building super- and launch a chain of construction materials
hypermarkets. The balance of retail trade is supermarkets in Ukraine. By 2010, it plans to build
concentrated at open-air markets, and small and three trade centers in this sector. According to the
medium-sized shops. The situation is similar in information available, the investor is negotiating
other large cities. In smaller cities, small with the municipal authorities to buy a plot of land
specialized stores are still popular. According to of 4 hectares. The estimated cost of the “maiden”
the management of the Tvoya Kimnata chain, project is €12-€15 million. It is expected that
there are no clear regional differences in Ukraine; supermarket’s trading area will amount to
as an example, they quote their large shop in 15,000 m2. According to a spokesman from
Poltava, where sales and profits are comparable Bauhaus AG, the supermarket will initially sell
to those of Kyiv shops. imported construction materials, and would then
change to selling Ukrainian products. Experts
In addition to trading in construction materials, mention the following companie as being likely to
some companies are investing in manufacturing come to Ukraine in the nearest future: Bauhaus
under their own trademarks (similar to private AG, OBI, Leroy Merlin, Castorama, and others
labels in the food sector). This approach is widely that have already began their expansion in
used in the West and is generating growing Russia.
TABLE 4-1. REFERENCE INFORMATION ON EXISTING BUILDING CHAINS
Name Region Brief information
Palas Simferopol Specialization in building decoration goods.
Main product categories: carpeting, linoleum, ceramic tiles, wallpapers,
soft furniture, beds, bedding accessories, tableware and accessories,
garden furniture and decorations, souvenirs and gifts (including
premium ones).
The chain launched its Ukrainian operation ten years ago as an
importer of carpeting and rugs.
The chain consists of 22 specialized stores in Crimea and other parts of
Ukraine (Dnipropetrovs’k, Mykolaiv, Kherson).
The company operates in three formats: large (about 4000 m2),
medium-sized (about 2000 m2), and small (about 500 m2). There are
two large emporia, three stories each. Palas has no plans to expand to
the capital.
Tvoya Kyiv The company’s profile is in finishing materials and goods for interior
Kimnata decoration.
Founded in 2003.
Company turnover is $8-$9 million.
It has 12 trade outlets, including two trade representations, six of which
operate in Kyiv.
The chain operates in two formats: large (warehouse store of about
1000 m2); and small (over 600 m2).
The chain has announced its plans to increase its number of trade
outlets up to 15-16 in 2005.
The company plans to expand in the following two directions in 2005:
- developing a franchise network; and
- building its own stores, both large and small.
Expected turnover per 1 square meter in 2005 – Hr1000 per month.

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 Agromat Kyiv The company is represented on the retail market by two stores in Kyiv
(Svit Keramiky and Svit Santekhniky), one of which is positioned as a
specialized trade center and warehouse with the area 30,000 m2.
The company is also an importer and official distributor of a number of
ceramic tiles manufacturers. It supplies building and finishing materials
in Ukraine (ceramic tiles, sanitary ware, engineering equipment for
heating, water supply, and sewer, and dry building mixtures).
It has been operating on the construction materials market since 1993.
The company is aggressively developing its dealer network, which
covers Kharkiv, Dnipropetrovs’k, Kryvyi Rih, Kirovohrad, Mykolaiv,
Yalta, Khmelnytskyi, Rivne, Lviv, Zaporizhzhya, Luhansk, Vinnytsya,
and Ivano-Frankivsk.
According to the company, its Svit Keramiky (Ceramics World) store
has a daily inflow of customers at about 300.
Budmaks Kyiv The national chain of depot stores has 14 outlets in Kyiv,
Dnipropetrovs’k, Donetsk, Kharkiv, Zaporizhzhya, Poltava, Odesa,
Mykolaiv, Simferopol, Lviv, Vinnytsya, and a distribution center.
By 2006, the company plans to be represented in each regional capital.
USS 21 Dnipropetrovs’k This is a network of terminals in ten cities of Ukraine: Kyiv,
Stolittya Dnipropetrovs’k, Simferopol, Odesa, Zaporizhzhya, Kremenchuk,
Luhansk, Melitopol, Mykolaiv, and Kherson. Besides, each of the
Ukrainian regions has company trade representatives.
At the beginning of 2003, USS 21 Stolittya was the largest company in
its segment in Ukraine, in terms of sales. It cooperates with more than
250 companies. Customers include several thousand companies all
over Ukraine. The total floor area of the completed facilities is about 3.5
million m2. The total warehouse area exceeds 25,000 m2. On average,
there are 7,000 articles in 31 product groups per one trade outlet.
Anzhio Kyiv The company was established in 1993 and is a chain of 11 wholesale
and retail shops located in Kyiv and its suburbs. It started as a
warehouse store.
The range is more than 5000 items.
The central shop is located in the Expocenter area in Kyiv.
Today, the company positions itself on the Ukrainian ceramic tiles
market as one of the largest wholesalers, with a head office in
Dnipropetrovs’k and a branch in Kyiv (it has a minimum of two large
wholesale partners in each oblast center and satellite cities). Last year,
it opened warehouses in Donetsk and Lutsk. Retail is represented by
several proprietary shops in Dnipropetrovs’k and Kyiv only. A building
supermarket is under construction in Dnipropetrovs’k (total floor are
9,000 m2).
The company’s target for the next couple of years is to move about
45%-65% of its total sales to the retail segment. This is due to the high
profitability and reduced risks involved in implementing long-term
programs involving products of large tile manufacturers (they are
currently launching a program with an Egyptian concern, the Cleopatra
Ceramic Group). It also allows them to more effectively and, most
importantly, rapidly develop sales markets.
Maister Dnipropetrovs’k The company has a chain of 14 warehouse shops in Dnipropetrovs’k
(seven shops), Kyiv, Kryvyi Rih, Kirovohrad, Mariupol, Sevastopol, and
Kherson. The shops are differentiated and their floor areas range from
400 to 2000 m2.
The Kyiv store has range of 2500 items.
The company has disclosed its plans to open three trade outlets, in
Kharkiv, Zaporizhzhya, and Donetsk, as well as a willingness to
develop its network in each region of Ukraine.

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 Nova Kyiv This is the first DIY (Do It Yourself) construction materials supermarket,
Liniya with a floor area of 5000 m2 and a range of over 50,000 products. The
company turnover is estimated to have reached about Hr120 million in
2004. According to the State Securities and Stock Market Commission,
two companies registered in the British Virginia Isles – Coch
Investments and Sorborne Invest Limited – owned 24.47% and 24.25%
of shares respectively, with 40% held by resident private investors. The
company has announced its intention to develop a chain of six
hypermarkets. Investments into four other hypermarkets, two of which
have been built in Kyiv and two in the regions, are expected to exceed
$35 million.
The second Nova Liniya supermarket, built in Kyiv’s Troyeshchyna
district, has a total area of 10,000 m2 and a trading floor area of 7000
m2, with a parking lot for 350 cars. The company bought a plot of 1.96
ha on which to build facilities at a municipal land auction in August
2003, paying $1.9 million or Hr9,004,746. The construction investment
amounts to about $7 million, with the shop’s estimated turnover to
reach $22 million. It is expected that residents of the Troyeshchyna
district (population about 300,000), where active development still
continues, and residents of the Podilsky, Shevchenkivsky, and
Obolonsky districts of Kyiv, will be the main customers.
Epitsentr Kyiv This is the biggest DIY retail facility, with a total area of 17,000 m2 and
(Epitsentr a trading area of 12,800 m2 (in the Troyeshchyna district).
Ltd. DO) The outlet offers more than 40,000 products for building, renovation,
decoration, landscaping and gardening.
Sales are made in cash and non-cash payments.
Turnover per one trading day in the high activity season is Hr450,000.
Company’s estimated turnover is $22 million.
According to some reports, the hypermarket is directly buying about
30%-35% of its whole range from manufacturers (mainly through
import). This group allows for up to 50%-65% of all profits. There is also
information that manufacturers are selling goods to Epitsentr at a
considerable discount. For example, Epitsentr has long worked with
sanitary ware and tiles and the company from which it gets such goods
is ranked among the three leading companies in ceramic tiles sales.
Epitsentr buys the remaining 60%-70% of its goods from Ukrainian
importers, manufacturers, and dealers. Some importers and
manufacturers admit that in order to supply the largest building shop in
Ukraine, they had to provide unprecedented discounts or offer special
prices.

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 Domostroi Kyiv This positions itself as a supermarket that offers the lowest prices in the
supermarkets segment.
The total area is 6000 m2, including 1500 m2 for warehouse space. The
trading floor is 4500 m2. The company was expected to reach $9 million
in total annual sales in 2004.
The company’s European investor is BUILDING PRODUCTS
EUROPEAN S.A., Luxembourg.
The supermarket has boosted sales to 30,000 units per month. This
figure has been growing by 5%-15% per month.
The staff is 150 (with a significant proportion of service personnel);
there are also VIP service managers. It has the following departments:
sanitary wares, construction materials, floor coverings, tiles, garden
plants, garden and house tools, household goods, doors, wallpaper,
and lighting fixtures departments. Customers can place orders for
goods not on display.
Expansion plans call for creating a chain of building supermarkets with
the areas of 10,000 to 15,000 m2 in million-sized cities and regional
centers. They plan to launch two more trade facilities in Kyiv in the next
two or three years. The company is interested in such regions as
Donetsk, Kharkiv, Dnipropetrovs’k, and Lviv. According to
management, the main problem hampering development of their chain
is lack of available plots. Study of company’s policy shows that it is not
striving for super profits. According to a market study conducted by
Domostroi among more than 700 customers, about 70% believe that
the company’s prices are lower than at other shops in the same
segment. The company is continuously monitoring market prices and
prices of operators on the construction materials market who are selling
from equipped warehousing facilities.
Trade, Kyiv CJSC City Market is the investor here.
Office, and Experts estimate the project at about $3 million. Payback period is
Warehouse about eight years. The total area of the trade center is 10,000 m2, in a
Complex at three-level building. The hall of 3500 m2 will have rack stacks 4.5 m
26, high. The first and second floors will house offices.
Moskovsky
Prospekt
Soft Servis Kyiv Founded in 1991. It comprises 24 specialized stores selling materials
Company for renovation and finishing under the Dekor Servis brand.
The chain operates in Kyiv, Kharkiv, Donetsk, Dnipropetrovs’k, Odesa,
Vinnytsya, Lviv, Ivano-Frankivsk, Kryvyi Rih, Bila Tserkva, Makiyivka,
Mariupol, Pevdennyi, Illichivsk.
The range of goods offered by the shops should allow turnkey
renovation of an apartment or office. The main product categories
include linoleum, carpeting, rugs, chemical products for building,
wallpaper, trimming and adhesive tape, sanitary wares, ceramic tiles.
The area of the largest shop in the Dekor Servis chain at Lepse
boulevard in Kyiv is 2500 m2.
The number of goods offered exceeds 10,000.
The company claims it buys all its products from manufacturers or from
exclusive distributors. It also has a manufacturing and warehousing
depot of 2.16 hectares for Dekor Servis shops located 40 km off Kyiv.
The company is also leasing areas in its shops.

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 CJSC Dnipropetrovs’k The company owns five outlets selling building products. Two of these
Ganza- operate as warehouse shops and are located in Zaporizhzhya and
Ukrayina Simferopol. The company’s three supermarkets are located in Kyiv,
Dnipropetrovs’k, and Kryvyi Rih. The former two are the company’s
largest retail facilities. The company has dealers in each region of
Ukraine.
According to expert estimates, the total area of the company’s trade
facilities is 16,000 m2, and turnover is about $20 million.
One of the key supermarket facilities offers about 30,000 products.
The company started its operations in 1992 and is now developing
three businesses simultaneously: retail trade, wholesale trade, and
manufacturing.

Some market experts note that the present retail
trade structure varies significantly depending on
the region of Ukraine. In Kyiv, markets,
specialized chains, and building supermarkets all
have approximately equal shares. Also, the share
of the civilized retail segment is increasing every
year. In Dnipropetrovs’k, specialized chains hold
the main market share. There are no classical
building supermarkets as yet. However, judging
by the information available, Western construction
materials retailers are on their way soon, and their
certain to take their place. In Odesa and Kharkiv,
the lion’s share of the market is held by the
famous “bazaars”: Malyna and the Seventh
Kilometer in Odesa, and Barabashovka in
Kharkiv.
The Kyiv region seems to be growing out of the
cheap goods segment, and there is in progress a
transition to higher quality and, accordingly, more
expensive categories. For example, at the same
time as demand for high-quality finishing materials
is growing, the popularity of imported and more
expensive accompanying materials is growing.
Given the growth rate of sales of accompanying
materials, both building supermarkets and
specialized shops targeting master builders are
developing rapidly. This is primarily a function of
the fact that building and renovation normally
require many different materials, and it is much
more convenient to buy them at one location.
Supermarkets attract customers with their wide
choice and moderate prices; however, they do not
always offer additional services and discount
programs. These outlets are more convenient for
people who are doing renovations themselves, or
for professional builders with smaller volumes.
Local players in the construction materials retail
sector have found the correct retail enterprise
format. It includes consolidation and increasing
retail facility size. New facilities are being opened,
the market is changing, and competition is
becoming more intense; the general direction of
segment development, however, is not likely to
change. The behavior of Western companies is
notable here. They are looking at the market, but
are still reluctant to enter. Local companies are
prepared for changes on the market. Many of
them have elaborated development plans, which
include expanding to the regions. For Nova Liniya,
Dnipropetrovs’k, Donetsk, and Kharkiv seem the
most promising.
Experts believe that 50%-60% of retail trade in
Kyiv is conducted through building supermarkets.
The remaining retail is still handled by open-air
markets and small and medium-sized shops. The
situation is similar in other large cities. In smaller
cities, small specialized stores are still popular.
With the advent of larger operators, life will
become increasingly more difficult for small
retailers, and they will continue to be forced out of
the market. In large oblast centers with
populations of over one million, shops of this size
are likely to capture more than 70% of
construction materials sales.
Significant growth on the building market and an
increase in retail trade make this market
especially attractive for both Ukrainian and
western investors. We are today seeing market
redistribution by sales structure, with the gradual
disappearance of small operators, and a
noticeable segmentation of trade between DIY
and professional outlets. There is also rapid
growth in the size of market operators.

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5. COMPETITION
5.1. MARKET SHARES OF KEY COMPETITORS
The construction materials sector comprises
numerous product groups subdivided into
segments. It is therefore reasonable to discuss
competition within each segment. There are,
however, common features for the whole sector.
Thus, manufacturers that have modern equipment
and/or foreign investment are prevailing in the
competition among Ukrainian construction
materials producers.
For example, in the cement segment, about 60%
of the Ukrainian market is controlled by four large
companies (Heidelberg Cement, EUROCEMENT,
CRH, and Dyckerhoff), which own six cement
plants in different parts of Ukraine: OJSC Balcem,
OJSC Podilcement, OJSC Kryvyi Rih–Cement,
Cement Donbasu Ltd., OJSC Volyn-Cement, and
OJSC Dniprocement. Regional business groups
own 16 cement plants in Ukraine. The total
production capacity of cement manufacturers is
20 million tons per year.
The roofing materials market is seeing real
struggle for market share and increase of
production volumes. The key players here include:
the Slavuta Ruberoid Plant, which launched a
second production line in 2005, making it possible
for the company to boost its production volume to
37 million m2 per year; Tehnonikol, launched by a
Russian company in 2005; Akvaizol from Kharkiv,
which has invested $3 million to launch a plant of
nonwoven polyester (the base for euro-ruberoid
production) with a capacity of 20 million m2 per
year. The key players’ boost in production and the
emergence of strong new competition has led to a
more rigorous market. According to Akvaizol’s
estimates, the key players held the following
market shares in 2004: 40% for Slavuta Ruberoid
Plant; 28% for Technonikol; 20% for Akvaizol; and
12% for other manufacturers. The Lutsk
Integrated Cardboard and Ruberoid Works
remains the largest national ruberoid
5.2. ACTIVITIES OF KEY MARKET PLAYERS
The key players on the construction materials
market focus their activities on:
- developing production facilities and improving
their products;
- developing sales channels, looking for the most
efficient combinations of such channels;
Prepared by BIZPRO
manufacturer, with a production volume of 125
million m2 per year.
In the glass production segment, the Lysychansk
Proletariy Glass Plant is a clear leader, making
high-quality thermally-polished float glass.
A tough battle is being waged on the dry building
mixtures and varnishes and paints markets. Some
80%-85% of dry building mixtures are made by
ten national enterprises: Akvalit (Akvalit TM); Artil
(Artisan TM); Bion-impeks (Sim Gnomiv TM);
Helios (Ferozit TM); Pavlohradzhytlobud
(BudMaister TM); Polirem (Polirem TM); TRST
(ProfiLine TM); Fomalhaut (Polimin TM); Henkel
Bautechnik Ukraine (Ceresit, Thomsit TM);
KhZSS (Tokan TM).
The leading manufacturers in the varnishes and
paints segment account for more than 80% of the
Ukrainian market. The most prominent of these
include: Dnipropetrovs’k Varnish and Paint Plant,
CJSC Lakma, OJSC Sumykhimprom, OJSC
ELAKS, Korosten Yantar Plant, CJSC Nifar, and
Kremniy Polimer. Alongside with development of
Ukrainian manufacturers, foreign producers are
opening their own affiliates (Sniezka from Poland
and Jobi from the Netherlands); and establishing
joint ventures – the German concern Meffert with
the Dnipropetrovs’k Plant, Farby Koloryt (Finnish-
Ukrainian JV, Tikkurila TM).
In the ceramic products market, market shares
were as follows in 2004: 55.2% for Kharkivska
Keramika Ltd., 13.8% for Atem, 18.9% for CJSC
Lviv Ceramics Plant, 7.2% for CJSC Pastrella-K,
4.0% for Karpatska Keramika Ltd., and 4.0% for
PSE Fagot (Data of the State Statistics
Committee).
The Kovalska Reinforced Concrete Plant (50%),
Darnytsya Reinforced Concrete Plant (6%), and
Reinforced Concrete Plant No.1 (8%) are the key
players in the concrete products segment.
- attracting investments to expand their production
facilities;
- increasing their market share;
- collaborating with distributors: training and
discounting arrangements; offering incentives and
bonus systems;
108
- marketing activity aimed at development of sales
systems, collaboration with distributors and with
proprietary networks, development and
registration of proprietary brands, development of
packaging, etc.
Let us consider the activities of the key players in
the construction materials sector in greater detail.
GLASS MAKING
CJSC Proletariy
The Proletariy Glass Plant is based in
Lysychansk, Luhansk Oblast, in the industrially-
developed Donbas region of Ukraine. Proletariy-
made glass is supplied to practically all CIS
countries and to the Middle East, as well as to
Poland, Romania, Slovakia, Turkey, and the
Netherlands.
Key products:
- plate float glass;
- hardened glass;
- furniture mirrors;
- mirror display glass.
In addition to manufacturing, the company
provides a number of services:
- glass cutting to customer specification;
- drilling holes of 4 mm to 220 mm diameter;
- fashioned and linear glass edge trimming;
- hardening of customer glass.
The enterprise is certified for compliance with the
quality management system to international
standard ISO 9001:2000.
Budsklo Ltd.
The plant was founded in 1897 as
Kostyantynivsky Glass Plant, to produce glazing
glass and other glass products.
The enterprise manufactured 18 million m2 of
glazing glass by the vertical pulling method in
1990. It shut down operations in 2001.
Budsklo Ltd. was created thanks to attracting a
foreign investor (a German Marvol firm) and a
change of its form of ownership in 2002. In a short
period of time, the company has built a glass-
making furnace, and modernized equipment for
glass band pulling, equipment for glass
processing and packaging, etc.
The plant is now making 600-630 m2 of glazing
glass per month. The glass enjoys good market
demand.
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Commercial output increased by 32.3% in 2004,
with 7,343,600 m2 of sheet glass produced. Export
deliveries amounted to 18.6% of the total output.
To ensure further efficient operation, plans are to
implement a number of engineering solutions to
foster better fuel and electric power economy,
increase the glass mass utilization factor, and
take other measures. Production of glazing glass
using the vertical pulling method still finds its
customer, but the plant’s future lies in developing
modern production of sheet rolled glass (pattern
and wire glass) and float glass, for which
considerable investment would be needed. The
owners are doing conducting intensive glass
market research and searching for investors. The
plant demonstrated sustainable performance in
2005. It has been boosting production, and the
growth rate was 104.4% during eight months of
this year. The share of exports in its commercial
output is 28.2%.
Names of manufactured products:
- sheet glass DSTU BV 2.7-122-2003 (GOST III-
2001);
- vertically pulled glass 2 mm.
Orion-Glass Ltd.
The plant is located in Cherkasy oblast. The plant
has been making laminated glass (triplex glass),
stalinite hardened glass, and flat and spherical
mirrors since 1990.
Located on the plant site is a laboratory
accredited according to the UkrSEPRO system. It
has the necessary equipment to conduct tests and
trials. The plant has all the required certificates,
confirming compliance of its products to the
requirements of DSTU BV 2.7-110-2002 (GOST
30698-2000).
The plant makes over 4,000 varieties of safety
glass for all means of transport. Special emphasis
is on using safety shaped glass in construction
and architecture. Rapid development of the
construction materials market has pushed up the
demand for building-grade laminated glass and
increased-strength glass, which is made of
imported and Ukrainian raw materials. The
enterprise makes laminated glass for multiple-
glazed units and stalinite glass, both transparent
and tinted.
Special attention is devoted to supplying the
Cherkasy and neighboring regions with a full
range of plate glass.
PRODUCERS OF DRY BUILDING MIXTURES
109
OJSC Pavlohradzhytlobud
The OJSC Pavlohradzhytlobud was launched in
2000, using the production base of the state-
owned Pavlohradsalizobeton and Integrated

127
House-Building Factory enterprises, in the course
of privatization. It registered the Budmaister brand
the same year.
Based on RAFIZ company design and equipment,
a new plant for making building mixes with a
production capacity of 50,000 tons per year was
built in 2001. The same year, the company
implemented a quality management system and
obtained an international certificate for quality
management system to international standard ISO
9001 (1994 edition).
The present capacity of the dry building mixtures
plant is 50,000 tons per year.
A new line for manufacturing BudMaister dry
building mixtures was launched in 2005. It allows
for production of 50 types of dry building mixtures
at a rate of 60,000 tons per year under one-shift
operation.
The product range comprises over 500 items,
including over 50 types of dry building mixtures:
- materials for laying tiles, cement mixes;
- finishing materials for interior and exterior work:
renovation mixes, gypsum plaster, cement
(decorative and plain) plaster, manual and
machine-applied putty;
- floor materials;
- waterproofing materials;
- materials for Frostop heat-insulating system;
- deep-penetrative and adhesive priming
emulsions.
Polirem Company
The company consists of:
Polirem – dry building mixtures plant, based in
Kyiv;
Polirem-Gips – dry mixtures plant based in
Kamyanets-Podilsky;
Polirem-Bauchemie – production of ready-mixed
dispersion polymer mixtures;
Polirem-Center – sales, advertising, marketing;
Polirem-Logistics – transportation service;
Polirem-NTC – scientific and technological
support of production, prospective designs,
cooperation with training events (professional
training, qualifications upgrading, preparation of
training materials and guidelines, organization of
conferences and seminars).
Polirem TM was registered in 1997. The first
industrial batch was produced in April 1998 by the
Dry Mixtures Plant in Kyiv, with an annual
Prepared by BIZPRO
capacity 100,000 tons. In 2003, the company
launched a second line closer to raw materials
sources (in Kamyanets-Podilsky). The plant’s
present capacity is 500,000 tons per year (the
plant has five lines, including four plaster lines and
one cement line). The production capacity of
ready-mixed dispersion polymers in Kyiv in 20,000
tons annually.
The key types of products manufactured by the
company:
- cement-based fillers and primers;
- plaster-based fillers;
- polymer fillers;
- various types of adhesive mixtures.
Fomalhaut Ltd.
This is one of the largest producers of dry building
mixtures in Ukraine. It has been operating on the
market since 1994. The company manufactures
products under Polimin TM.
The main business activities include:
- production of Polimin dry building mixtures;
- production of packaged cement;
- wholesale and retail cement trade;
- production of building machinery of various
levels of complexity;
- wholesale and retail trade in construction
materials and equipment through its own sales
chain;
The plant’s production capacity is 100,000 tons of
cement, plaster, and lime based modified mixtures
per year. The product range covers more than 25
items.
The company products are used all over Ukraine,
with the largest share consumed by the following
regions: Ivano-Frankivsk, Dnipropetrovs’k,
Donetsk, Crimea, Mykolaiv, and Odesa.
The produce is mainly exported to Moldova and
Belarus.
Henkel Bautechnik (Ukraine)
The Henkel Bautechnik (Ukraine) company was
founded in March 1998 and it is a member of
Henkel Group, one of the largest chemical
concerns in Europe. The same year, the company
started building a specialized plant to produce dry
building mixtures. The plant was put in operation
in April 1999. It is equipped with modern German
and Italian machinery. The plant capacity in full
configuration is 120,000 tons per year.
110
Henkel Bautechnik (Ukraine) put a second dry
mixtures plant into production in Balakliya
(Kharkiv oblast) in August 2004. The plant’s

129
capacity is 150,000 tons of finished products per
year; however, the design allows for further
expansion of production capacity. The total
production capacity of Henkel Bautechnik
(Ukraine), according to estimates, will reach
270,000 tons per year after the second plant
achieves its full capacity.
The Henkel Bautechnik (Ukraine) Company
presents products under the Ceresit, Thomsit,
Moment, and Metylan trademarks on the
Ukrainian market.
Initial investment production amounted to 12
million German marks. Some 40% of that was
spent on construction, and the balance was used
for procurement and installation of equipment
imported from Germany and Italy. Additional
investments of over €2 million were made during
the next three years.
The company has invested €6.5 million in the
second plant, including €4 million for procurement
of machinery and €2.5 million for construction,
establishment of a quality control laboratory, and
site improvements.
The plant’s present product range covers a wide
spectrum of goods for building and renovation:
- finishing materials (a diverse range of tile
adhesives, mixes for jointing);
- materials for flooring – Ceresit and Thomsit;
- façade systems, including systems for heat-
insulation of residential and commercial
properties;
- materials for hydroinsulation and
hydrophobization;
- materials for preparing surfaces for finishing
(primers, prime paints, fillers);
- additives for mortar and concrete;
- masonry mortar.
The company also sells installation foam,
sealants, Metylan wallpaper glue, and Moment
household adhesives.
Ukrainian raw materials are used and the
products are intended for the Ukrainian market.
Ukrainian and international certificates testify to
the high quality of the materials. In winter 2004,
Henkel Bautechnik (Ukraine) was granted an
international certificate for its quality management
system to ISO 9001:2000.
Artel Ltd.
This is a young company that is aggressively
expanding on the dry building mixtures market
with its Artisan brand. The enterprise is based in
Prepared by BIZPRO
the Kyiv region. Its production capacity is 50,000
tons of dry building mixtures per year.
Main types of products:
- plaster and cement dry building mixtures;
- liquid components.
Product range:
- cement mixes;
- plaster mixes;
- fillers;
- floor mixtures;
- plastering mixes for heat-insulation and sound-
proofing;
- mineral paints;
- primers;
- emulsions.
Bion-Impeks Ltd.
The Bion-Impeks company was established in
1993 and started manufacturing dry building
mixtures in 1998. In 2001, the company decided
to launch production of acrylic water dispersion
paints and primers; water dispersion paints
appeared under the Sim Gnomiv TM. The
company has now developed new types of acrylic
water dispersion paints. In 2003, the company
launched its third product– pentaphthalic enamel
paints.
The company’s manufacturing facility is located in
Dnipropetrovs’k. The plant has three production
shops. Investments amounted to $600,000 in
2005-2006.
The company’s range of products comprises
about 199 items. The main ones are as follows:
- gypsum plasters and fillers;
- cement plasters and fillers;
- adhesive mixes;
- floor mixes;
- textures finishes;
- acrylic water dispersion paint for walls;
- acrylic water dispersion pain for ceilings;
- enamel paints PF-115, PF-226 in various colors
and hues, etc.
Kharkiv Building Mixtures Plant Ltd.
The enterprise has been working since spring
1999, manufacturing dry building mixtures and
111
primers under the TOKAN trademark. The T.M.M.
Financial and Building Group founded the plant.
The raw materials used for production of dry
mixtures are various types of cement, plaster,
fractional sand, and modifiers made by the
leading international chemical companies,
including Wacker Polymer Systems GmbH & Co.
KG, Walocel MKX, SKW POLYMERS GmbH,
CFF GmbH & Co. KG.
Quality control of inputs and of finished products
is implemented during all phases of the
production. The company has a quality control
department. The plant has a certified laboratory
for radiological control located on site for testing
construction materials.
The products under the TOKAN TM are available
in such cities as Dnipropetrovs’k, Kyiv, Kharkiv,
Luhansk, Donetsk, Sumy, Kremenchuk, Poltava,
and Zaporizhzhya.
Helios Ltd.
The Helios Scientific and Production Enterprise
was established in 1993. It started making dry
building mixtures under the Ferozit TM in 1998.
The plant is located in Lviv, where there are
production lines for making cement and sand and
plaster mixtures; for preprocessing of raw
materials; and for production of primers and
paints, artificial marble, foam polystyrene, and
textured mosaic finishes. In addition, a line
producing dry building mixtures under the Ferozit
TM has been in operation in Kherson since 2002.
Helios Ltd. implemented and certified a system of
quality management to international standard ISO
9001:2000 in June 2005.
The company manufactures a wide range of
products for building and renovation:
- cement for tiles, marble, heat-insulating systems,
plaster boards, plaster and foam concrete blocks;
- plaster;
- filler;
- floor mixes;
- primers;
- paints under Faina Farba TM;
- textured acrylic finishes (Mozaika, Shuba,
Koroyid);
- acrylic finishes;
- materials for heat-insulating systems;
- “flakes” textured finishing systems.
Prepared by BIZPRO
PRODUCTION OF BRICKS AND OTHER WALL
MATERIALS
OJSC Ladyzhyn Lime-Sand Brick Plant
Brief company description:
- Equipment: Complete imported plant (made in
Poland) for lime-sand brick factories;
- Rated production capacity: 100 million
equivalent lime-sand bricks per year and 50,000
tons of building lime per year (shaft furnace).
Description of company products:
- Lime-sand bricks М-150 DSTU BV.2.7-8-98
- Building lime DSTU BV.2.7-90-99
- Capacity utilization was 55.7% in 2004;
- Production growth rate was 87.6% for nine
months of 2005 vs. nine months in 2004.
Plans: to launch production of porous concrete
and expand the product range.
OJSC Obukhiv Porous Concrete Plant
Brief company description: The Obukhiv Porous
Products Plant, with a capacity of 80,000 m3 of
blocks per year, was put into production at the
industrial site of the Trypilsky Lime-Sand Walling
Plant on August 22, 1994. The plant was built with
financing from the Chornobyl Fund.
Equipment: Universal-60 production line; the
technical condition is satisfactory;
Rated capacity: 80,000 m3 per year.
The plant makes porous concrete blocks: 588 х
288 х 200 mm, 588 х 288 х 100 mm.
Capacity utilization:
- 111,600 m3 produced in 2004;
- plant capacity utilization 139.5% in 2004;
- production growth rate was 105.4% in nine
months of 2005 vs. nine months in 2003.
Plans:
- establish a complete new imported production
line to increase volume and improve product
quality;
- install four additional autoclaves;
- expand the product range.
OJSC Budmaterialy, Bila Tserkva
OJSC Budmaterialy was founded in 1994, based
at a construction materials plant. The plant has
demonstrated sustainable performance in the last
112
eight years and has been increasing its production
volume year by year.
Its equipment is made in Ukraine; the equipment’s
condition is satisfactory. It has a tunnel furnace
102 x 3 m, gas fired. The plant’s rated capacity is
30 million equivalent bricks per year.
Considering the prospects of the Ukrainian
construction materials market and of ceramic
bricks in particular, the company modernized the
plant in 2002.
This has made it possible to:
- increase plant capacity to 30 million bricks per
year;
- produce bricks of grades M-125, M-150, and
better;
- increase profitability.
OJSC Budmaterialy plans to implement phase two
of its modernization in order to occupy a
potentially important niche on the construction
materials market. To do this, the company needs
to:
- increase capacity to 60 million bricks per year;
- increase output of high-grade facing and
masonry bricks.
The plant makes ceramic bricks of grades M-75
and M-100 to DSTU BV. 2.7-61-97.
Capacity utilization:
- 25.7 million equivalent bricks produced in 2004;
- rated capacity utilization was 85.7% in 2004;
- production growth rate was 101.6% in 2004 vs.
2003.
The company is considering buying imported
process equipment and is looking for an investor
toward that purpose.
OJSC Zhytomyr Integrated Silicate Products
Plant
Brief description:
- put into production in 1965;
- Ukrainian equipment, condition is satisfactory;
- rated capacity of 110 million equivalent lime-
sand bricks per year; 80 million equivalent porous
concrete blocks per year; 100,000 tons of building
lime per year; 17.5 m3 of extrusion polystyrene per
year.
Description of products:
- Lime-sand bricks M-150 to DSTU BV. 2.7-80-98
- Porous concrete blocks to DSTU BV. 2.7–45-98
- Building lime to DSTU BV. 2.7-90-99
- Extrusion polystyrene to TU UV.2.7.002949.051-
98.

TABLE 5-1. PLANT’S CAPACITY UTILIZATION

Lime-sand bricks Porous Building lime
concrete blocks
Production in 2002 75.8 million eq. bricks 76.200 m3 43.700 tons
Production in 2003 79.9 million eq. bricks 99.100 m3 49.000 tons
Production in 2004 85.3 million eq. bricks 106.600 m3 52.400 tons
Production in nine months of 2004 65.2 million eq. bricks 80.300 m3 40.000 tons
Production in nine months of 2005 62.4 million eq. bricks 80.300 m3 35.900 tons
Rated capacity utilization, percent 72.6 123.9 49.0
Rated capacity utilization in 2004, percent 77.5 134.0 52.4
Production growth rate in 2003 to 2002 112.9 percent 130.7 percent 112.1 percent
Production growth rate in 2004 to2003 106.8 percent 107.6 percent 106.9 percent
Production growth rate in nine months of 95.7 percent 100.0 percent 89.8 percent
2005 vs. nine months of 2004

OJSC Lyubomyrsky Lime and Silicate Plant Description of plant products:

Brief plant description: - lime-sand bricks М-125.М-150,М-200
- rated lime-sand brick capacity of 90 million DSTU BV.2.7-80-98;
equivalent bricks per year;
- colored lime-sand bricks;
- rated lime production capacity of 90,000 tons per
year; - grades III and II, burnt building lime, in bulk and
packaged in 20 kg and 5 kg bags,
- Ukrainian equipment used, condition is
satisfactory. - DSTU BV.2.7-90-99;

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- carbonate lime;
- silicate mix;

133
- foam concrete D-350-400; - cement mortar М-50.
TABLE 5-2. PLANT’S CAPACITY UTILIZATION
Lime-sand bricks Lime
Production in 2003 30.1 million eq. bricks 41,600 tons
Production in 2004 33.6 million eq. bricks 44,040 tons
Production in nine months of 2004 25.7 million eq. bricks 35,660 tons
Production in nine months of 2005 19.0 million eq. bricks 45,700 tons
Plant rated capacity utilization, percent 24.8 47.2
Plant rated capacity utilization in 2004 26.8 48.9
Production growth rate in 2004 vs. 2003 111.6 percent 105.9 percent
Production growth rate in nine months of 2005 vs. nine 73.9 percent 128.2 percent
months in 2004

CJSC Slobozhanska Budivelna Keramika - Textured bricks DSTU BV.2.7-61-97

SBK is the largest producer of facing bricks in - Premium bricks DSTU BV.2.7-61-97
Ukraine, with 40% share of this market.
- Glazed bricks DSTU BV.2.7-61-97
Brief plant description:
- Shaped products - shaped, structural, glazed.
- rated capacity of 60 million equivalent bricks per
year; Production capacity utilization:

- imported equipment in excellent condition; - 47.25 million equivalent bricks produced in 2002;
- 53.8 million equivalent bricks produced in 2003;
- Plant No.15 put into production in Kharkiv,
capacity of 30 million equivalent bricks per year; - rated capacity utilization of 89.7%;
- production growth rate of 113.9% in 2003 vs.
- certified to ISO 9001:2000. 2002.
Description of plant’s production: Plans:
- Ceramic facing bricks in wide range of colors, - increase high-quality brick capacity;
DSTU BV.2.7-61-97; - launch a plant in Kyiv oblast.
TABLE 5-3. SBK PERFORMANCE IN 2004-2005
2004 2005
Total sales, million equivalent 81.2 86.5
bricks
New sales, $ million 13.6 16.2
EBITDA, $ million 6.6 7.4
EBITDA (margin), % 49% 46%
Net profit, $ million 4.3 4.9
Net profit (margin), % 31% 30%
Source: “Proizvodstvo stroitelnykh materialov v Ukrainye: obzor strategiy vykhoda na rynok” (Production of Construction Materials in
Ukraine: Review of Market Entry Strategies), National Investment Alliance, February 2005.
Sylikatobeton Ltd., Sumy
Company’s profile:
TABLE 5-4. COMPANY DESCRIPTION
Lime-sand brick shop Porous concrete blocks shop
Capacity 89,4 million equivalent bricks 140 million equivalent bricks per year
per year
Complete process plant Made in Poland, condition Universal-60 production line, technical
satisfactory condition satisfactory
Autoclaves Passing autoclaves, seven 5 units, 3,6 m х 27
units, 2х40,4, condition
satisfactory
Five presses Made by LASCO, Germany

Prepared by BIZPRO 114

The plant produces: - porous concrete blocks: 588 х 288 х 200 mm
- lime-sand bricks M-150-200 DSTU BV.2.7-80- GOST 21520-98, 588 х 288 х 100 mm.
98;
TABLE 5-5. PRODUCTION CAPACITY UTILIZATION
Lime-sand bricks Porous concrete
blocks
Production in 2002 11.0 million eq bricks 10,400 m3
Production in 2003 12.0 million eq bricks 28,400 m3
Production in 2004 15.8 million eq bricks 50,900 m3
Production in nine months of 2004 10.8 million eq bricks 38,200 m3
Production in nine months of 2005 13.4 million eq bricks 41,100 m3
Production capacity utilization, percent 13.4 20.3
Production capacity utilization in 2004, percent 17.7 36.4
Production growth rate in 2003 vs. 2002 109.0 percent 273.1 percent
Production growth rate in 2004 vs. 2003 131.7 percent 177.9 percent
Production growth rate in nine months of 2005 124.1 percent 107.6 percent
vs. nine months of 2004

Plans: - production growth rate 119.7% in 2003 vs. 2002.

- launch a complete new imported production line
for porous concrete products to boost production
volume and improve product quality;
- launch an automatic packaging unit;
- install two additional autoclaves;
- expand the range of products.
OJSC Chernihiv Brick Plant No. 3
Company profile:
- rated capacity 37.0 million equivalent bricks per
year;
- Ukrainian equipment, in satisfactory technical
condition.
The plant produces ceramic bricks M-75 to DSTU
BV.2.7-61-97, frost-resistance: F -15.
Production capacity utilization:
- 14.7 million equivalent bricks produced in 2002;
- 17.6 million equivalent bricks produced in 2003
- rated capacity utilization 47.6%;
Plans:
- earth-moving machinery procured and put in
operation in 2003;
- production is to be modernized, with
replacement of Ukrainian equipment by more
modern imported equipment.
OJSC Mamalyhiske Construction Materials
Plant Authority
Company profile:
- Ukrainian equipment, satisfactory technical
condition;
- rated capacity of 70,000 tons of plaster per year
and 37.5 million equivalent bricks per year;
- the plant uses centralized gas supply.
Plant’s product description:
- small walling blocks;
- building plaster DSTU BV.2.7-82-99;
- plaster stone DSTU BV.2.7-104-2000.

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 TABLE 5-6. PLANT’S CAPACITY UTILIZATION
Plaster Wall materials
Production in 2002 7,800 tons 0.1 million equivalent bricks
Production in 2003 10,600 tons 0.1 million equivalent bricks
Production in 2004 13,600 tons 0.08 million equivalent bricks
Production in nine months of 2004 11,410 tons 0.07 million equivalent bricks
Production in nine months of 2005 8,500 tons 0.045 million equivalent bricks
Rated capacity utilization, percent 15.1 0.2
Rated capacity utilization in 2004, percent 19.4
Production growth rate in 2003 vs. 2002 135.9 percent 100.0 percent
Production growth rate in 2004 vs. 2003 128.4 percent 80.0 percent
Production growth rate in nine months of 2005 vs. 74.5 percent 64.3 percent
nine months in 2004

Company plans include improving the plaster - Other – 12027.00 tons

quality to satisfy the requirements of dry building
mixture producers. Certified for compliance to DIN EN ISO 9001:2000
78 100 5360
Knauf-Gips-Kyiv Ltd.
OJSC Krasnoarmiysky Dinas Plant
KNAUF is a leader in the European construction
materials industry. It manufactures a wide range Products:
of products for finishing interior walls, ceilings, and - general-purpose dinas – 17256 tons
floors. KNAUF’s main products include plaster
boards, metal shapes, plaster partitions, dry - open-hearth dinas - 2248 tons
mixes, polystyrene, perlite, equipment for machine
processing of plastering mixes, etc. - coke-oven shapes – 27825 tons

The company started active operations on the - electric dinas – 5577 tons
Ukrainian market in August 1996, establishing its
- glass dinas – 6454 tons
daughter company KNAUF-Marketing and
creating a joint venture based at the Stroimak - air-heating dinas – 10005 tons
Construction Materials Plant in Kyiv in 1997.
- dinas lightweight - 1528 tons
At the end of 1997, the company presented its
plan for reconstruction of the Stroimak plant and - ladle non-fired refractories – 18899 tons.
implemented full technical reconstruction of the
Steel plants are the main customers for refractory
plaster board shop. That reconstruction has been
conducted thanks to investments of more than 30 products.
million German marks. The plant was put into Siversky Dolomite Ltd.
production in February 1999.
Products:
PRODUCTION OF CERAMIC REFRACTORY
PRODUCTS - metallurgical fired dolomite

OJSC Panteleimonivsky Refractory Plant - heat-insulating refractory products

Products: - refractory rolls

- Periclase products The products have the following certificates:

- Periclase-chromite roof products - hygienic certificate

- Periclase-chromite cement products - fire safety certificate

- Chromite-periclase products. - quality certificate

Physical production volume in 2005: - radiation properties certificate

- Periclase products - 17134.00 tons The enterprise is certified to ISO 9001:2000.

- Periclase-chromite roof products – 27315.00 CJSC Keramperlit

tons
Products:
- Periclase-chromite cement products – 3877 tons
- architectural and building products
- Chromite-periclase products – 32671.00 tons

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- heat-insulating refractory products
- heat-insulating perlite concrete products
- heat-resistant ceramic products
- building ceramics
- filtrated perlite powder
- ceramic products
- commercial-grade ceramic products
Technological capacity of CJSC Keramperlit
Plant:
- production of expanded perlite M-100, M-150 –
25,000 m3;
- production of perlite powder, filtration class A, B,
U – not less than 10,000 m3 per year;
- production of high-temperature heat-insulating
bricks (similar to moler brick and foam moler
brick), rated capacity 10,000 m3;
- production of non-standard and non-traditional
facing ceramic products based on customer
drawings;
- mobile expanded perlite plant rated for 10,000
m3 per year;
- expanded perlite production line rated for 25,000
m3 per year;
- process equipment for expanded perlite plants;
- production of custom-made shaped refractories
of various configurations from customer drawings;
- production of facing components for add-on
façades – 25,000 m2 per year.
PRODUCTION OF CERAMIC TILES
Kharkiv Tile Plant
The Kharkiv Tile Plant is one of the largest
specialized companies producing ceramic tiles in
Ukraine.
The plant was designed by the Ukrainian
Research Institute in 1936. Initially, the plant
produced ceramic tiles for floors, sanitary ware,
insulators, varnish and paint materials. It was only
in 1949 that the plant was diversified to produce
facing ceramics for external building walls.
As the result of cooperation with Barbieri &
Tarozzi, an Italian manufacturer of equipment for
ceramic plants, the company in 2004 installed a
new high-capacity tower distribution SD-8200
drier for preparing the molding powder for making
flooring tiles. This was intended to replace
obsolete equipment and reduce consumption of
natural gas and electric power. At the same time,
the company launched a Barbieri & Tarozzi line
Prepared by BIZPRO
for making high-strength ceramic flooring tiles,
rated for 2.5 million m2 per year. This new facility
will allow the company to make flooring tiles of
300x300 mm, with decorative, wear-resistant
coatings. The decoration options include color
background plus additional semigloss glazing,
plus a three-color print, minimum. It is a flexible
line, and its technological parameters allow for
rapidly changing tile size to 400x400 mm.
Production of such tiles gives Kharkiv Keramika
Ltd. an opportunity to occupy a new niche in the
ceramic tiles market.
Kharkivska Keramika established a daughter
company on November 26, 1997. Today, it is one
of the largest suppliers of the product range of the
Kharkiv Tile Plant, which accounts for 80% of total
production volume. The company has partners in
nearly all parts of Ukraine. They offer the full
range of Kharkiv Tile Plant products.
Products:
Wall tiles 200х250, 200х300
Flooring tiles 200х200, 300х300
Frame strips
Decorative ceramics
OJSC Zevs Keramika
A new Italian-Ukrainian joint venture Zevs
Keramika was launched in July 2005. The
company has begun active expansion on the
construction materials market.
A new plant has been built under provision of
special economic zones and priority development
territories of the Donetsk oblast; the city of
Slovyansk is located in such territory.
The plant’s rated production capacity is about 12
million m2 of tiles. Zevs Keramika expects to
achieve this level by 2010.
Zevs Keramika uses local raw materials, while the
Italian side assures the quality of the finished
products. For the first time in Ukraine, production
of nonglazed ceramic tiles is to be launched.
These are mainly used for finishing trade centers,
exhibition rooms, and other buildings. They may
also be used for both interior and exterior
decoration. In the future, the equipment currently
being used will be capable of making all sorts of
ceramic tiles, e.g., ceramic granite with marble
appearance, microgranite, glazed tiles, and other
types of products.
Zevs Keramika has launched an automatic
product packaging line to suit euro-pallets
(wooden trays for tiles). This line, made by Italy’s
Marfin, and with a capacity of up to 500 pallets per
day, will protext products when they are being
transported by packing them tight.
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The line, complete with set-making items. costs
€150,000.
Lviv Ceramic Plant
Products:
- ceramic tiles and ceramic sanitary ware.
Rated capacity of 240,000 units per year, capacity
utilization 100%.
CJSC with Foreign Investments Piastrella-K
Products: ceramic tiles
Rated capacity: 1.8 million m2 per year
Makroindustriya Ltd. with Foreign Investments
Products: ceramic tiles
4,000 m2 of tiles per day
2 million ceramic borders per month
The company imports tile blanks (biscuits) already
fired from Spain.
Raw materials:
- frit (special glass composition supplied as
powder or pellets);
- ceramic paints;
- clay;
- kaolin;
- chemical additive liquid to improve glazing.
The plant is certified to ISO 9001:2000.
Karpatska Keramika Ltd.
Products: 48 varieties of ceramic tiles, two grades.
The tile base (biscuit) is imported from Poland.
Rated production capacity: 2,400 m2 per day.
70% of products are supplied to Kyiv.
CEMENT PRODUCERS
OJSC Dniprocement
The company specializes in the production of
Portland cement and slag Portland cement using
dry technology. In 2002, the plant became part of
HEIDELBERGCement Group, an international
cement and construction materials company,
which holds 99.9% of its stock.
The plant’s production capacity is about 615,000
tons of cement per year.
The plant produces high-quality cement:
- Portland cement with additives;
Prepared by BIZPRO
- slag Portland cement;
- sulfate-resistant slag Portland cement.
In 2004, OJSC Dniprocement had its quality
management system certified to ISO 9000:2001.
In August 2004, OJSC Dniprocement became the
first cement plant in Ukraine certified to ISO
14000.
OJSC Kryvyi Rih Cement
The enterprise is one of the leaders in cement
production using the dry process, and is the only
one using processes developed by leading
Japanese companies.
The plant was put into production in 1952. The
plant underwent two renovations during its career.
The main one was performed in 1983 and
consisted of replacing obsolete rotary furnaces
with new-generation furnaces based on Japanese
technology. This made it possible for the plant to
reach a world-class cement production level.
Today, the company has a Japanese batching
unit, a rotary furnace with cyclic heat exchanger
and a calcinator. The rated capacity of the rotary
furnace is 125 tons per hour. Today, a production
capacity of 130 tons per hour has been achieved.
The plant produces high-quality cement:
- Portland cement
- Portland cement with additives
- sulfate-resistance slag Portland cement.
OJSC KRC can produce cement in accordance
with the European standards EN – 197.
As of 2001, OJSC Kryvyi Rih Cement has been
part of the international company
HEIDELBERGCement Group, which owns over
96% of the company’s stock. The OJSC KRC has
implemented a system of conformity with the
HEIDELBERGCement Group’s standards.
OJSC Balcem
The company is based in Balakliya, Kharkiv
oblast. The plant was built in the 1960s. Its rated
capacity is 4.8 million tons of cement and 3.2
million tons of clinker per year. Balcem produces
only high-quality cement, which is one of the best
in Ukraine. Its quality is a function of the high
quality of the raw materials extracted from the
Shebelynka chalk and clay deposit.
In 2005 the plant joined OJSC EUROCEMENT, a
Russian holding, which owns 97.7% of OJSC
Eurocement Group. In 2006, EUROCEMENT
Group plans to invest Hr31 million
(www.kharkivoda.gov.ua/news.php?news=2173)
in OJSC Balcem, Hr3 million of which are to be
used for an environmental program. Among other
things, investments will be made in developing
118
plant infrastructure, procurement of new
machinery, and overhaul of the locomotive fleet
and the local branch rail track.
The plant expects to make 2.2 million tons of
product in 2006. Today, Balcem exports 30% of
its production volume.
OJSC Podilsky Cement
The enterprise is located in Khmelnytsky oblast. It
is the first cement industry plant to be privatized.
In May 1999, CRH of Ireland bought 76% of its
stock from Kinto76 and became the majority
owner of Podilsky Cement.
The net sales profit of Podilsky Cement increased
by 54% in 2004 year on year, to reach Hr282.5
million.
The company increased its output by 3.4% to 1.9
million in 2005. In 2004, the plant produced 1.7
million tons of cement. The plant’s rated capacity
is 3.7 million tons per year.
Today, 93.4% of the company’s stock is owned by
CRH Poland B.V., which is part of the Irish
concern CRH. In late February 2005, the CRH
board approved a project for transforming the
company’s rotary furnaces to use solid fuel, i.e.
coal. The total project cost is €16 million.
Implementation of the project will reduce cement
production costs. The company invested Hr11.551
million in modernization and technical re-
equipment in 2004, and about Hr6.6 million in the
first six months of 2005.
The enterprise produces Portland cement and
slag cement for general building applications of
grades 400 and 500.
The company’s main markets include central and
western parts of Ukraine and the city of Kyiv.
OJSC Doncement
OJSC Doncement is managed by Golden Gate
Company, based in Kyiv. In January-April 2005,
the company increased cement production by
42.2% year on year, to 291,500 tons.
The plant’s rated capacity is 2.5 million tons per
year.
Today, OJSC Doncement has six clinker
production lines with a rated capacity of 2 million
tons of clinker per year and eight cement milling
lines rated for 2.1 million tons of milled cement per
year. The company uses “wet” cement making
technology.
Cement Donbasy Ltd.
Cement Donbasu Ltd. (former Yenakiyeve
Cement Plant, Donetsk Oblast) is managed by the
Golden Gate Company from Kyiv. In January-April
2005, the plant produced 41,700 tons of products.
Prepared by BIZPRO
The plant had resumed operation in June 2004
after being shut down for a year.
The Yenakiyeve plant was the only manufacturer
of white cement in Ukraine. White cement is used
as a raw material for production of dry building
mixtures, and Ukrainian manufacturers have to
import it at present. The company plans restarting
production of white cement (Biznes newspaper,
22 August 2005).
Plant main products today include:
Portland cement
cement
According to the Kontrakty Ukrainian business
weekly (No. 9 of February 28, 2006), OJSC
Doncement and Cement Donbasu Ltd. have been
acquired by Heidelberg.
OJSC Volyn-Cement
Volyn-Cement is one of the most powerful
companies in its sector in Ukraine (the plant’s
rated capacity is about 2 million tons per year).
A world-famous German industrial group
Dyckerhoff, which comprises cement and
construction materials companies, bought the
controlling block of shares in Volyn-Cement in
2001.
In addition to standard cement grades, which are
widely used both in industrial and residential
construction, the company also makes oil-well
cement for the oil and gas industry.
CJSC Bakhchysarai Budindustriya Integrated
Plant
Production and process complexes:
- cement production;
- claydite gravel production line;
- woodworking facility;
- agricultural unit;
- oxygen plant.
Production capacity:
- cement raw materials 713,000 m3;
- clinker 310,000 tons;
- cement 517,000 tons;
- including packaged cement 200,000 tons;
- claydite gravel 100,000 m3;
- oxygen 864,000 m3;
- joinery 30,000 m2.
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OJSC Kramatorsk Pushka Cement Plant
The company is part of a large holding, OJSC
Eurocement Group-Ukraine.
Products:
- clinker;
- commercial-grade clinker;
- Portland cement;
- cement;
- cement, concrete, and artificial stone products.
OJSC Kyiv Cement
Products:
- Portland cement;
- general-purpose Portland cement grade 500;
- general-purpose Portland cement with mineral
agents content of 6% to 20%, grade 400.
Packaging line 1 – capacity 30 tons per hour;
Packaging line 2 – capacity 15 tons per hour.
The Odesa Cement Ltd.
Products:
- Portland cement with mineral additives, grade
500 PC P/A-Sh-500 DSTU BV.2.7-46-96,
intended for civil and erection work;
- Certified cement;
- Portland cement with mineral additives PC II/B-
Sh-400 DSTU BV.2.7-46-96, intended for civil and
erection work; certified cement;
- Sulfate-resistant slag Portland cement SS ShPC
400 D60 DSTU BV.2.7-85-99; intended for use
under increased sulfate aggression; certified
cement;
- Portland cement with mineral additives PC II/A-
Sh-400 DSTU BV.2.7-46-96; intended for civil and
erection works; certified cement;
- Slag Portland cement ShPC III/A-400 DSTU
BV.2.7-46-96; intended for special and general
civil and erection works; certified cement;
- commercial-grade clinker.
OJSC Yugcement
Products:
- Portland cement PC II/A-Sh-400;
Prepared by BIZPRO
- General-purpose building Portland cement with
mineral additives of 6% to 20%, guaranteed grade
400;
- Portland cement PC II/A-Sh-400;
- General-purpose building Portland cement with
mineral additives of 21% to 35%, guaranteed
grade 400;
- Portland cement PC I-500;
- General-purpose building Portland cement with
mineral additives of 0%to 5%, guaranteed grade
500;
- Slag Portland cement ShPC III/A-400;
- Slag Portland cement of guaranteed grade 400;
- Sulfate-resistant slag Portland cement SS ShPC
400 D60.
All cement types are manufactured in accordance
with the State Standard of Ukraine for Production
of Cement.
PRODUCTION OF LIME AND PLASTER
OJSC Pustomyty Lime Plant Authority
Enterprise profile:
- equipment: Ukrainian, in satisfactory technical
condition; availability of centralized gas service;
- rated capacity:
91,700 tons of lime per year;
43,700 tons of plaster per year.
Description of plant products:
- building lime to DSTU BV.2.7-90-97;
- hydrated lime (packaged into 40, 15, and 5 kg
bags) to DSTU BV.2.7-90-97;
- lime grout;
- plaster H5B2 (packaged into 5, 10, 20, and 40
kg bags) to DSTU BV.2.7.-82-99;
- medical-grade plaster H-5;
- ground limestone to DSTU BV.2.7-90-99;
- filler (packages into 3, 5, 10, 20, and 50 kg
bags);
- chalk (packaged into 3, 5, 10, 20, and 50 kg
bags) to TUU.B.V. 2.7.21-159-98;
- grooved partitions;
- acoustical and architectural and decorative
plates.
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 TABLE 5-7. PLANT CAPACITY UTILIZATION
Lime Plaster
Production in 2002 11,500 tons 4,400 tons
Production in 2003 8,800 tons 4,700 tons
Production in 2004 7,600 tons 4,400 tons
Production in nine months of 2004 4,300 tons 2,660 tons
Production in nine months of 2005 5,800 tons 1,750 tons
Rated capacity utilization, percent 9.6 percent 10.8 percent
Rated capacity utilization in 2004, percent 8.3 percent 10.1 percent
Production growth rate in 2003 vs. 2002 76.5 percent 106.8 percent
Production growth rate in 2004 vs. 2003 92.0 percent 93.6 percent.
Production growth rate in nine months of 2005 vs. nine months 134.9 percent 65.8 percent
of 2004

Plans: Improve quality of products to suit - flint slabs;

requirements of dry building mixture producers.
- flint aggregate, sizes 30-150 mm.
OJSC Podilski Tovtry
Production capacity utilization (plaster):
Company profile:
- 16,600 tons produced in 2003;
- Equipment: Ukrainian, in satisfactory technical
condition; - 19,500 tons produced in 2004;

- Rated capacity; 300,000 tons of lime per year; - 13,800 tons produced in nine months of 2004;

- Facility has centralized gas service. - 16,700 tons produced in nine months of 2005;

Description of plant products: - rated plant capacity utilization was 29.5% in

2004;
- building lime to DSTU BV.2.7-90-99;
- production growth rate amounted to 117.5% in
- limestone aggregate; 2004 vs. 2003;
- carbonate stone. - production growth rage was 121.0% over nine
months of 2005 compared to nine months in 2004.
Production capacity utilization for aggregate:
OJSC Slovyansk Chalk and Lime Plant
- 97,100 tons in 2002;
Products:
- 69,700 tons in 2003;
- building lime;
- rated plant capacity utilization, 23.2%
- natural dispersion commercial-grade chalk;
- production growth rate 71.8% in 2003 vs. 2002.
- chalk and lime dry mix;
OJSC Gipsovyk
- natural flint.
Company profile:
Production:
- Ukrainian equipment, in satisfactory technical
condition; - lime 136.0;
- rated capacity 66,000 tons of plaster per year; - chalk 14.1.
- the facility is gas fired. The OJSC Slovyansk Chalk and Lime Plant’s
products are mainly sold in Ukraine.
Description of plant products:
KP Azovbudmaterialy
- natural stone (travertine type) slabs to DSTU
BV.2.7-37-99; Products:
- small blocks; - small wall blocks (cinder blocks);
- building plaster to DSTU BV.2.7-82-99; - small wall blocks made of porous concrete;
- plaster stone to DSTU BV 2.7-104-2000; - building lump lime;
- flint balls; - cement-sand bricks;

Prepared by BIZPRO 121

- shaped paving stones (sand-concrete paving
tiles).
Rated capacity:
- walling materials: 67.8 million of equivalent
bricks per year;
- lime: 39,000 tons per year.
The plant’s products are exported.
OJSC Pryborzhavske Construction Materials
Plant Authority
Products:
- ceramic bricks M-100 to DSTU.BV.2.7-61-97;
- building lime DSTU.BV 2.7.90-99;
- ground lime;
- decorative crushed rock;
- marble aggregate 3-5 mm, 5-10 mm, 10-20 mm;
- concrete wall blocks;
- foundation blocks;
- tiles, stairs;
- grave stones.
Rated capacity;
- walling materials: 10.0 million tons of equivalent
bricks per year;
- lime: 46,000 tons per year.
PRODUCTION OF CONCRETE PRODUCTS
S. Kovalska Reinforced Concrete Plant
OJSC Kovalska Reinforced Concrete Plant is the
largest company in Ukraine’s construction
industry. The company makes ready-mixed
concrete of all types, mortar, standard and custom
reinforced-concrete structures, vibrocompressed
paving slabs, reinforcing steel products, and
numerous other concrete and reinforced concrete
products. The company’s product range includes
30 product types and 250 distinct items. Sales
amounted to $29 million and $41 million in 2003
and 2004, respectively.
All the plant’s products are certified. OJSC S.
Kovalska Reinforced Concrete Plant obtained
certification in 2003 for its quality management
system in conformity with international standard
ISO 9001:2000 and DSTU ISO 9001:2000.
The certification was implemented by UkrSEPRO
UkrCSM, a Ukrainian quality control system
certification body, and TUV CERT TUV Rheinland
Inter Cert Kft, a German agency providing
certification of management systems.
Prepared by BIZPRO
In 2005, the plant implemented re-certification of
the quality management system for compliance
with ISO9001:2000, and secured a certificate from
Germany’s system certification agency TUV
NORD CERT for theh plant’s building activities.
Certification of the quality management system
(2003-2005) has continued, and the quality control
system has improved. That system was the first
certified in the building industry in 2000, according
to DSTU ISO 9002-95.
OJSC Ivano-Frankivskcement
Due to the rapid development of industrial and
civil construction in the 1950s and 1960s in the
Subcarpathian region of Ukraine, there developed
a pressing need for more building industry
enterprises, especially cement facilities. The
Ivano-Frankivsk region was selected as the most
convenient location for a cement plant. The area
is rich in limestone and marl deposits, the main
raw materials for making cement. Availability of
labor and energy resources (natural gas and
electric power) also played important roles in the
site’s selection.
The integrated plant has four main production
units:
1) mining units;
2) a cement shop;
3) a shop for production of plaster bandages,
medical-grade plaster, and building plaster;
4) an asbestos cement products plant.
There are two daughter enterprises, SE
Spetszalizobeton and SE Yamnytsya
(agricultural), as well as six technical departments
and units, which ensure the smooth operation of
the core production units.
OJSC Asphalt Concrete Plant, Kyiv
Products:
- asphalt concrete mix;
- lime putty;
- lime milk;
- lime grout;
The production capacity is up to 440 tons of
asphalt concrete per hour.
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OJSC Ternopil Road-Building Materials
Integrated Plant
Products:
- asphalt concrete;
- prefabricated reinforced concrete and concrete
products;
- ground limestone and dolomite.
Lviv Concrete Plant
Products:
- concrete slabs;
- mosaic stairs;
- concrete duct products;
- artificial marble.
Rated capacity is 60 m3 per hour.
The main raw materials are bought from the
following producers:
- cement from OJSC Mykolaivcement;
- granite aggregate from quarries in Rivne,
Zhytomyr, and Vinnytsya oblasts;
- sand from the Yasnyska sand pits in Lviv oblast.
The plant’s laboratory controls aggregate quality
and quality of finished products.
Beton Servis Plant
There are several production units at the plant:
- A reinforced concrete unit produces
prefabricated reinforced concrete troughs, hollow-
core floor panels, stairs, beams, foundation
blocks, etc.;
- A concrete mixer unit is a modern installation
producing a complete range of concrete mixes;
- A rebar shop produces reinforcing cages,
embedded items, net for brickwork, etc.
Standart-IF
Products:
- poured heat-insulating foam concrete;
- foam concrete wall blocks of various sizes;
- various grades of building mortar and concrete.
Т.М.М.- Budkomplekt
There are two core production activities:
- production of modern metal structures; plant is
capable of processing 320 tons of rebar and rolled
metal into finished products per month;
Prepared by BIZPRO
- production of ready-mixed concrete and its
modifications. Concrete output is up to 400 m3 per
day.
A certified laboratory controls the quality of
concrete mix components and of the finished
product.
OJSC SE Budsumishi of Zhytomyrinvest Firm
The company’s core activities include building and
erection work, production of ready-mixed concrete
and building mortar, production of agricultural
produce.
Zhytomyr oblast and the city of Kyiv are the main
markets for the company’s products.
PRODUCTION OF PAINTS
Jobi Ltd.
Jobi Ltd. was founded in 1998 to implement
production of water dispersion paints in Ukraine,
for the first time. Germany’s Jobi Farbwerke
GmbH, a company that has been in the varnishes
and paints sector since 1965, participated.
Modern equipment, advanced technology, and
highly-skilled personnel – all have contributed to
the successful production of the initial five types of
Joby paint produced in Ukraine. The paint’s
quality meets German standards. A new series of
Malton brand products was launched in late 2000
to strengthen the company’s market position.
The company’s complete product range now
comprises more than 100 products, including
water dispersion paints, primers, dyes, plaster,
and ornamental coating.
The company is continuously trying to optimize
price and quality and offer products that meet the
needs of both professional builders and DIY
users.
Joby Ltd. products are offered through the
network of the company’s regional dealers
throughout Ukraine, as well as in many
neighboring countries.
The company has modern equipment and a
number of modernized lines, which allow it to
produce 15,000 tons of paints, primers, dyes,
acrylic plasters, and special ornamental coatings
for external walls and interiors.
CJSC Nifar
The company was founded and is based in
Nizhyn, Chernihiv oblast. Main products:
- oil paints;
- enamel paints;
- drying oil;
- filler;
123
- primer;
- KIN-LUKS car filler;
- solvents;
- metal containers;
- Nobiles water dispersion paint.
The company makes the following products for
export:
- acrylic paints;
- pentaphthalic enamel paints;
- zinc white;
- calcite;
- pigments.
CJSC Nifar is certified to international quality
system ISO 9001:2000.
OJSC Sumykhimprom
OJSC Sumykhimprom is a large energy and
chemical complex, whose industrial site occupies
226 hectares. The company comprises 13 core
shops, 22 support units, three daughter
enterprises, and ten non-productive units (general
catering unit, greenhouse facilities, etc.).
The company’s present product range comprises
about 25 basic chemical products, including:
Superagro N:P:K 15:15:15, granfos, ammoniated
superphosphate, titanium dioxide pigment, ferrous
oxide yellow and red pigments, sulfuric acid,
oleum, reactive sulfuric acid, coagulants for
cleaning potable and drain water (aluminum
sulfate, sulfate ferrous coagulant), varnish and
paint products, building lime, cement activator,
consumer goods, etc.
JV Meffert Ganza Ukraine
The Dufa Varnish and Paint Plant of JV Meffert
Ganza Farben opened in 2001. The plant was co-
founded by the German concern Meffert AG and
Ukraine’s Ganza Production and Trade Company.
Production profile:
The equipment was supplied by Meffert AG and is
operated by ten workers.
The production equipment is rated for making 2.5
tons of paint per hour. Thus, plant capacity allows
for production of 20 tons of paint per shift.
Products:
1. Dispersion paint
2. External wall paint.
3. Flat latex paint.
Prepared by BIZPRO
Farby Koloryt Ltd.
Farby Koloryt Ltd. is a manufacturer of varnish
and paint products under the KOLORYT brand. It
is part of the Tikkurila Group concern. Finland’s
Tikkurila concern owns 51% of shares in Farby
Koloryt Ltd.
Product quality has been confirmed by Ukrainian
conformity and hygienic certificates, as well as by
the Tukkurila laboratory. All KOLORYT TM
products are labeled “Ecologically clean and
safe.”
The Farby Koloryt Company is audited by the
Bueray Veritas, an international organization, and
holds a certificate to ISO 9001:2000.
Products:
- Water dispersion paints KOLORYT TM
(Ukraine
- Tikkurila varnishes and paints (Finland)
- Glass fiber wallpaper KOLORYT TM (made by
Johns Manville, Sweden)
- Adhesive for glass fiber wallpaper KOLORYT
TM (made by Ecofix, Sweden).
PRODUCTION OF PLASTICS PRODUCTS FOR
BUILDING
Yevrotrubplast, Ukraine (Rubizhne Pipe Plant)
The Rubizhne Pipe Plant Ltd., a new production
facility, was founded on the industrial site of a
former metal working plant in Rubizhne, Luhansk
oblast, in January 2005. The plant is a member of
the Yevrotrubplast holding, comprising polymer
pipe enterprises in Russia, Ukraine, and Belarus.
The Rubizhne Pipe Plant’s core activity is making
polyethylene pipes for gas lines, water lines, and
sewers, with diameters ranging from 20 mm to
630 mm and rated for pressure up to 16 bars.
The main polyethylene processing facility
comprises four extrusion lines for production of
polyethylene pipes. In view of plant’s total rated
capacity, which is over 12,000 tons of
polyethylene pipes per year, the Rubizhne Pipe
Plant Ltd. may be regarded the largest
manufacturer of polyethylene pipes in Ukraine.
The company has implemented a system of
quality control of finished products. A laboratory
for testing incoming raw materials, produced
pipes, and shapes has been set up at the plant.
Products manufactured by the plant:
- water pipes
- sewer pipes
- gas pipes
124
- heating pipes
- set-making articles for polyethylene pipes
(fittings for thermoresistor welding; equipment for
welding polyethylene pipes; composite
polyethylene steel; water fittings for butt welding).
Black polyethylene grades PE-80 and PE-100 are
used for production of polyethylene gas pipes to
DSTU BV.2.7-73-98, as well as for pressure
polyethylene pipes to DST 18599-2001 and TU U
V.2.7-25.2-32926466-002:2005.
Vodopolimer Research and Production Firm
Ltd.
For more than 15 years now, the Vodopolimer
Research and Production Firm has been one of
the leading Ukrainian manufacturers of
polyethylene and parts for welding with heated
tools during construction of pipelines.
The enterprise was founded in August 1992, when
lines for production of water and sewer
polyethylene pipes of 20 mm to 160 mm, as well
as of polyethylene film for agricultural use, were
put into production. In the period of high inflation
that lasted until 1994, the company bought out the
leased area and machinery, expanded the range
of pipes to the diameter 315 mm and increased
production of polyethylene shaped diffusion
coupling parts.
The growing demand for polymer pipes has
prompted the expansion of the plant’s capacity.
The company launched production of
polyethylene jackets (preinsulated pipes for
heating mains) of up to 315 mm diameter in 1995-
1996. In 1997, the company modernized
equipment and secured a permit for
manufacturing polyethylene pipes for low- and
medium-pressure gas lines in diameters from 20
mm to 225 mm.
The company is continuously monitoring its
product quality. An agreement has been
concluded with a laboratory at the E.Paton
Electric Welding Institute of the National Academy
of Sciences of Ukraine for conducting laboratory
tests of polyethylene inputs and pipes to the
requirements of DSTU BV.2.7.-73-98.
In 2003, the company decided to start making
two-layer corrugated pipes, reduce the cost of
laying service lines. These pipes are currently
replacing asbestos pipes, which are
environmentally hazardous, in industrial
applications.
In 2004, the company expanded production of
polyethylene pipes for gas of 400 mm diameter
and for water of 630 mm diameter, and increased
sales of shaped diffusion parts, branches, and
thermoresistor parts. Work is in progress to
launch Spyro pipe production. This would make it
Prepared by BIZPRO
possible to make pipes with a diameter of up to
1600 mm for sewers. Such pipe will be
significantly lighter thanks to thinner walls and
stiffness ribs. The pipe would be more resistant to
external mechanical influences and internal
hydraulic effects. The company is starting to
produce pressure and non-pressure PVC pipes of
up to 400 mm diameter.
The products are made using high-performance
Ukrainian equipment, which has been upgraded
with individual units and assemblages made by
leading European manufacturers. Foreign
equipment from such leading manufacturers of
polymer machinery as Cincinnati Extrusion,
Metalchem, and IPM is also used. The shops for
manufacturing coupling parts have new welding
devices made by such leading companies as
Georg Fisher and Widos. They feature full
process control and automatic adjustment of
welding parameters, depending on environmental
conditions.
Company products include:
1. POLYETHYLENE PIPES:
- for gas service;
- for industrial and potable water supply;
- protective pipes for laying telecommunications
cabling;
- corrugated, two-layer pipes for
telecommunications cables;
- pipes for external and internal sewers.
2. POLYPROPYLENE PIPES for in-building hot
and cold water and heating.
3.PVC PIPES.
Elplast
Elplast-Lviv Ltd. was founded in 1996. It has been
on the Ukrainian polymer pipe market for ten
years now.
The company’s core activity is manufacturing
pressure polyethylene pipes and shapes for
building and repair of service networks of gas and
water supply systems. It also makes non-
pressure, double-wall corrugated polypropylene
pipes for sewer lines, water drainage, and
protecting telecommunications cables.
To provide comprehensive customer service, the
company has established a number of
manufacturing and commercial enterprises, which
are grouped into the Elplast Company. This has
made it possible to offer a wide range of pipe
accessories, to stock them along with all types of
coupling parts, and offer polymer pipeline-building
services.
125
In February 2006, the company launched
production of non-pressure, double-wall,
corrugated pipes for sewer, drainage, and
protection of telecommunications cables.
Today, the company has a quality control system
certified by the TUV CERT international agency.
Products:
Double-layer E2 systems
Gas pipes
Water pipes
Welded segment parts
Ukrpolimerkonstruktsiya
The company is one of the leading manufacturers
of polymer pipes in Ukraine.
Products:
- gas pipes;
- water pipes;
- sewer pipes;
- pipe coupling parts;
- welding equipment;
- product delivery by special-purpose vehicles to
any part of Ukraine;
- design and installation of pipelines.
The manufacturing process makes use of:
- high-performance imported equipment;
- raw materials from leading European producers;
- product quality control at all stages of
production.
Starting in 1999, the company significantly
expanded its range of polyethylene pipes by
launching production of yellow-color gas pipes to
DSTU BV.2.7-73-98. In 2001, the company
modernized and put new production facilities in
operation, which made it possible to manufacture
black and yellow-striped pipes. Since 2002, the
enterprise has been supplying coupling parts for
thermoresistor welding.
A plant laboratory was established at the
company in 2003. The company launched
production of water pipes made of PE 80 to
international standard GOST 18599-2001. A
permit was secured for production of gas pipes
with a diameter of up to 315 mm. The range of
shaped products has been expanded. Since
2003, Ukrpolimerkonstruktsiya has been
providing its customers with welding equipment.
Introduction of a three-shift operation and
Prepared by BIZPRO
phased-in expansion of production capacity has
made it possible to increase polyethylene
processing to 400 tons per month.
In 2004, two new lines were put into production.
The company started financing a line for
production of polyethylene pipes of up to 1000
mm diameter. The company started building a
new plant of polyethylene pipes with a rated
processing capacity of 2000 tons per month.
Ukrpolimerkonstruktsiya has secured exclusive
rights to sell high-quality fittings and welding
equipment by UK’s FUSION company.
In 2005, the company launched new high-capacity
imported polyethylene pipe lines with maximum
diameter of up to 630 mm. Today, the company is
preparing to launch a new type of pipe in bright
yellow colors for fiber-optic networks.
Brovary-Plastmas Ltd.
Products:
- in-building sewer pipes;
- external sewer pipes;
- pressure pipes;
- PVC pipes for building water wells;
- pressure polyethylene water pipes;
- drainage pipes;
- polyethylene gas pipes;
- thermoresistor fittings.
NPF Plastmodern
Main activities:
- production of packaging film;
- production of packaging film for agricultural
applications;
- production of film for building applications,
including vapor-sealing film;
- production of butyric resin film for making triplex
glass;
- production of polystyrene tape and
polypropylene tape for forming;
- production of polyethylene water, gas pipes, and
pipes for cable laying;
- manufacturing of equipment for production of
plastics products.
Products:
- film for greenhouses;
- stretch film;
126
- shrink film;
- butyric resin film;
- PAROIZOL vapor-sealing film;
- plastic batten (PVC);
- metal-polymeric roofing slate;
- multilayer polyethylene pipes;
- polyethylene pipes;
- polypropylene sheets;
- polystyrene sheets;
- sanitary ware.
WOOD AND WOOD PRODUCTS
Ineks Ukr Parket
Ineks Ukr Parket, a leading manufacturer of
parquet and parquet products in Ukraine, has
become the first company to launch quantity
production of ornamental geometric and palace
parquet, not only in Ukraine, but also in the whole
of the CIS and in other East European countries.
The plant uses numerically controlled equipment,
which allows for high precision and ensures the
high quality of finished products. The company’s
machinery is traditional for woodworking and
affects neither the structure nor the color of
finished parquet, as laser cutting does.
Creation of a quality management system to
ISO9001, version 2000 international standard, has
been one of the steps the company took to fulfill
customers’ needs. In April 2003, SGS auditors
conducted a certification audit of Ineks Ukr
Parquet, which confirmed the company’s quality
management system’s compliance to ISO
9001:2000. The company holds a number of
patents and copyright certificates in parquetry
manufacturing.
Used in the production process are both wood
varieties traditional for Ukraine (beech, oak, ash,
hornbeam, sweet cherry, birch, maple, walnut,
pear, cherry), and tropical woods (merbau,
cempas, mahogany, belau, mersawa, kamshe,
teak, darunku, and other).
The present range of products includes:
1. Block parquet, 16 mm and 22 mm thick and up
to 500 mm long to specifications TU V
25635395.001-98 (developed based on DIN 280)
made of the following woods: oak, ash, fumed
oak, maple, beech, birch, smooth-leaved elm,
pear, sweet cherry, cherry, walnut, elm, and
others.
2. Solid parquet board, 22 mm thick (oak), which
is a large-size (more than 600 mm long) parquet
element made of solid wood, with feather and
groove over the perimeter.
Prepared by BIZPRO
3. Ornamental geometrical parquet 16 mm and 22
, thick, and ornamental mosaic parquet, where the
pattern and elements are rectilinear in shape.
4. Highly artistic “palace” parquet is the most
difficult to manufacture and most expensive of all
parquet types. The whole pattern and elements
are curvilinear and rectilinear shapes. The
company uses up to 70 different woods to make a
“palace” parquet.
Such parquet can be inlaid with metal and marble.
5. Molded products.
Dim Parketu
The Dim Parketu group of companies is
comprised of five legal entities that design,
manufacture, sell, and support all
manufacturing processes and install wood
products.
Activities:
1. Production of classical parquet made of solid
wood.
2. Production and installation of “palace”
parquet (using industrial lasers).
3. All types of parquetry work.
4. Manufacture of doors and windows made of
pine, ash, and oak three-layer glued eurobar,
as well as of exclusive custom-made joinery.
5. Custom-made furniture.
The company manufactures classical matched
parquet (oak, ash), 15 mm thick to DST 862.1-
85 and 22 mm thick to DIN 280 Т 1-90, humidity
8+3%.
The available equipment ensures a complete
production cycle of parquet floors, from sawing
and drying of woods to turnkey parquet laying.
All the above equipment is brand-new, made in
2000-2005, with a rated capacity of up to
10,000 m2 per month.
To produce doors and windows made of three-
layer glued bar, the company installed an Italian
line in 2002.
In June 2005, Dim Parketu installed modern
equipment to produce custom-made furniture
and doors. The equipment allows production of
sophisticated products within short periods of
time, with guaranteed high quality and quick
assembly. These products are made only of
solid wood and veneers of precious and exotic
woods. Furniture and doors are decorated with
intarsia, hand-carved ornaments, and gilding.
127
The company’s other activities are making
ornamental parquet (on custom orders), as well
as designing, manufacturing, and laying
exclusive “palace” parquet floors made of
precious woods (using laser technology).
The company exports up to 4,000 m2 of parquet
to Italy, Spain, Greece, and Slovakia every
month.
The company has certified its quality
management system to ISO-9001, version 2001
international standard.
Goods and services:
Classical parquet
Parquet laying
Ornamental borders
Geometrical parquet
Palace parquet
Parquet rosettes
Eurodoors and eurowindows
Furniture
Related goods
KhP Klenovyi Lyst Ltd.
Products: classical block parquet with high-grade
wood finish, and guaranteed humidity of 8%-2%.
The products are intended for export.
A new block parquet line is capable of producing
up to 100,000 m3 of block parquet made of
precious woods, including oak, beech, ash,
maple, and other varieties.
Pyryatynderev Ltd.
Products: block oak parquet made of
environmentally clean wood, 15 mm thick.
The parquet is made to European standard DIN
280 and guaranteed humidity 6%-10%.
Output: 3000 m2 per month.
Rubizhansky Parket Industrial Group
Activities:
- production of block (classical) parquet of solid
wood;
- production of modular (mosaic) parquet;
- production of solid oak board;
- production of ornamental parquet;
- production of ornamental borders;
- production of wood articles.
Prepared by BIZPRO
The company exports its produce to the UK,
Holland, Greece, and Latvia.
PRODUCTION OF ROOFING MATERIALS
OJSC Slavuta Ruberoid Plant
The company manufactures a wide range of
roofing materials and water-proofing polymer
bitumen; APP and SBS modified roll roofing
materials under the Spoli TM, which replace the
traditional ruberoid; sound-proofing materials;
Spoliizol, waterproofing materials; and Spoligont
bitumen roof tiles.
The facility has a modern Italian plant, using raw
materials imported by leading European
manufacturers. A plant laboratory certified by
UkrSEPRO guarantees the highest ruberoid
quality. In 2003, the company was certified to
international quality management system ISO
9001:2000.
OJSC Lutsk Cardboard and Ruberoid
Integrated Plant
The company is Ukraine’s largest producer of felt
roofing and polymer materials.
The plant was put into production in 1973 and
rated for the following production capacity:
- 125 million m2 of felt roofing materials;
- roofing felt 50,000 tons.
In 1993, the company launched production of
linoleum with a heat- and sound-insulating
nonwoven base with annual capacity of 3 million
m2.
In 1998, the company was the first in Ukraine to
start production of fused Lubit bitumen polymer
material on a glass and polyester base.
Lutsk CRIP is continuously expanding its output
and developing new products. It provides for 75%-
85% of the annual consumption of felt roofing
materials in Ukraine. About 90% of felt roofing
materials made by the Lutsk company are used
on the domestic market, and nearly 10% are
exported to CIS and Baltic countries.
Albatros Company
The company was founded in 1996. Ukraine’s
first Finnish line for metal roof tile production was
put into production in 1998.
The company uses equipment manufactured by
Samesor SMT International OY of Finland.
Products:
- metal roof tiles
- professional flooring
128
- water drain systems
- façade systems
Ruukki
Products:
- metal roofing tiles and other roofing materials;
- water disposal systems;
- accessories.
Steel made by the Ruukki concern is the
primary raw material for the shaped sheets
manufactured at Ruukki plants.
TPK
Products:
- roofing materials;
- façade materials;
- dormer windows;
- water drain systems;
- heat-insulation;
- vapor and water-proofing.
All the materials produced and sold by the
company are certified to ISO 9001:2000
international quality control system.
The company exports its products to Moldova,
Armenia, Transdniestria, and Georgia.
Maister-Profi Ltd.
The Maister-Profi Plant has been operating on
Ukraine’s building market for five years now.
The rated capacity of metal roof tiles line is 2
million m2. The company has a high-tech line
manufactured by Japan’s Toyo Engineering Inc.
The plant is used to produce metal roof tiles under
the Tarti brand, of Lux and Standard types. The
plant has been certified to ISO 9001:2000
international quality control system.
Maister-Profi products are exported to
neighboring and other countries.
Products:
- metal roof tiles;
- professional flooring;
- shapes for installation of plasterboard systems;
- fasteners for installation of plasterboard
systems;
- ventilated façade systems;
- water drain systems;
- roofing accessories.
Certificates:
Prepared by BIZPRO
Certificate for quality control system (DSTU ISO
9001:2000);
Certificate of conformity for metal roofing of
Maister-Profi Ltd. (Standard, Lux);
Certificate of conformity for steel bent sheet
shapes with trapezoid fluting;
Certificate of conformity for steel bent shapes of
grades CW-50, CW-75, CW-100, UW-50, UW-75,
UW-100, UD-27/28, CD-27/60;
Certificate of conformity for steel panel with heat-
insulation Maister-Profi made of mineral wool;
Certificate of conformity for steel panels with heat-
insulation Maister-Profit made of foam
Polystyrene;
License for building activities.
Arsenal-Center Roofing Materials Plant
The plant produces metal roofing tiles and
professional flooring. Production of ARSENAL
metal roofing tiles and professional flooring has
been launched in Kyiv, Odesa, Kharkiv, Donetsk,
Khmelnytskyi, Simferopol, and Vasylkiv (Kyiv
oblast). Arsenal-Center branches operate in all of
Ukraine’s regional centers.
ARSENAL metal roofing tiles and professional
flooring are made of galvanized steel with polymer
coatings of polyester and flat polyester.
All Arsenal-Center products are made using
Italian equipment, which means European quality
standards are achieved.
Arsenal-Center exports 30% of its products.
Product range:
- Metal roofing tiles
- Professional flooring
- Water drain systems
- Heat insulation
- Dormer windows
Tekhnikol
The Tekhnikol Company has been operating on
the market since 1993. Its core activity is making
polymer bitumen and bitumen materials, which
are used for roofing and water-proofing.
Tekhnonikol offers a range of roofing and water-
proofing materials in Ukraine.
The company has developed unique “breathing”
materials for roofs and materials for water-
proofing of bridges under the Tekhnoelast MOST
brand. Its Uniflex and Tekhnoelast Vent materials
can be used on damp roofs, and also fuse the
129
material in winter. The company also offers heat- - hat shapes;
insulation, accessories, and related goods for
roofing and water-proofing. - façade panels;

The company has developed SHINGLAS flexible - steel water drain systems;
roof tiles. All products have Ukrainian and - metal roof tiles;
international certificates (ISO 9001 and ISO
9002). - module shares;
Pruszynski-Ukraine Ltd. - fitting elements;
Products: - shapes;
- professional flooring; - steel industrial buildings.
- façade modules;
5.3. LEVEL OF COMPETITION AND COMPETITIVE ADVANTAGES OF VARIOUS COMPANIES IN
THE INDUSTRY
Based on State Statistics Committee data, there materials as their core activity). Nearly half of
were about 9,000 enterprises on the construction these enterprises operate in the “production of
materials production market as of January 1, 2005 other nonmetal mineral products” sector.
(including 5,500 enterprises that produced these
TABLE 5-8. NUMBER OF ENTERPRISES IN THE SECTOR IN 2004 (WITH SALES OVER HRO)
Core Percentage Total in the
activity of sector
enterprises
Extraction of minerals (building stone, limestone, plaster and 430 7.7% 635
chalk, clay shale, sand and clay)
Wood sawing and planing, wood impregnation 1197 21.5% 2733
Production of varnishes and paints 226 4.1% n/a
Rubber and plastics industry (production of rubber products, 1447 26.0% 1898
plastics processing: plates, pipes, and shapes made of plastics;
plastic equipment for building; other plastics products)
Production of other nonmetal mineral products (production of 2261 40.7% 3463
glass and glass products; ceramic sanitary ware; ceramic
refractories; ceramic tiles; clay bricks, roof tiles; cement, lime,
and plaster; concrete and plaster products; stone dressing;
other mineral products)
Total 5561 100.0% 8729 (less
varnish and
paint
production)

Looking closer at the production of other nonmetal concentration of companies is among producers
mineral products subsector, the highest of concrete and plaster products.

Prepared by BIZPRO 130

 TABLE 5-9. NUMBER OF ENTERPRISES IN THE SECTOR OF PRODUCTION OF OTHER
NONMETAL MINERAL PRODUCTS IN 2004 (WITH SALES OVER HR0)
Core Percentage Total in the
activity of sector
enterprises
Production of glass and glass products (production of plate glass; 178 7.9% 242
shaping and processing of plate glass; production of glass fiber;
production and processing of other types of glass and glass
products)
Production of other ceramic products not intended for building 66 2.9% 107
(production of ceramic sanitary ware; other ceramic products;
ceramic refractories)
Production of ceramic tiles 40 1.8% 56
Production of bricks, clay roof tiles 418 18.5% 586
Production of cement, lime, and plaster 71 3.1% 180
Production of concrete and plaster products (including concrete 929 41.1% 1564
mixes, ready-mixed and dry types of mortar mixes, fibrous cement
products, and other concrete and plaster products)
Stone dressing 366 16.2% 455
Production of other mineral products (production of abrasive 193 8.5% 273
products and other nonmetal mineral products, not included into
other categories)
Total 2261 100.0% 3463

In 2000-2004, the number of enterprises whose - Stone dressing (from 268 to 366 enterprises);
core activities were in the following subsectors - Production of other mineral products (from 164
increased: to 193 enterprises).
- Extraction of building stone (from 185 to 208 The number of manufacturers decreased for only
enterprises); one classification code, namely, “production of
- Extraction of sand and clay (from 149 to 182 ceramic tiles” (from 55 to 40 enterprises).
enterprises);
As regards entrepreneurs’ own assessments of
- Wood sawing and planing, wood impregnation the level of competition in the construction
(from 801 to 1197 enterprises); materials sector, the majority of them (50.9%)
- Processing of plastics (from 878 to 1266 believe that it is quite high. In particular, 32.0% of
enterprises); entrepreneurs describe it as high and 18.9% as
- Production of bricks, clay roof tiles (from 326 to very high. At the same time, about a tenth of
418 enterprises); entrepreneurs (10.6%) disagree that the level of
competition in their markets is high (4.9%
- Production of concrete and plaster products describe it as low and 5.7% as very low).
(from 879 to 929 enterprises);
FIGURE 5-1. ASSESSMENT OF THE LEVEL OF COMPETITION ON THE CONSTRUCTION
MATERIALS MARKET, PERCENT OF ENTERPRISES
2.5 5.7
4.9
18.9

Very low Low level

Average level High level

36.1
Very high level Difficult to tell

32.0

Source: Survey of 122 enterprises in the construction materials sector.

Prepared by BIZPRO 131

Large companies in the construction materials level of competition as high or very high,
sector tend to be more susceptible to competition compared to 37.5% among medium-sized
than are small and medium-sized enterprises. enterprises, and 53.9% among small enterprises.
Among large enterprises, 70.3% describe the
FIGURE 5-2. ASSESSMENT OF THE LEVEL OF COMPETITION ON THE CONSTRUCTION
MATERIALS MARKET BY ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTERPRISES

Large enterprises 7.4 3.7 18.5 48.1 22.2

Very low level
Low level
Medium-sized Average level
7.5 7.5 47.5 25.0 12.5
enterprises High level
Very high level
Small enterprises 3.83.8 38.5 30.8 23.1

Source: Survey of 122 enterprises in the construction materials sector.

Entrepreneurs believe the key methods of product quality compared to the competition (this
competitive activity on the domestic market are is the key to competitive advantage for 49.6% of
setting the most attractive price (52.1% of enterprises). Only a relatively small percentage of
surveyed entrepreneurs believe that their pricing enterprises rely on developing unique products
is their competitive advantage); ensuring proper (14.3%) or modifying existing products (10.1%) to
operations of sales channels (51.3% of gain competitive advantage.
enterprises favor this approach), and better
TABLE 5-3. FACTORS HELPING PRODUCERS REMAIN COMPETITIVE ON THE DOMESTIC
MARKET, PERCENT OF ENTERPRISES
Factors Percent of
enterprises
Competitive pricing 52.1
Established sales channels 51.3
Superior product quality compared to the 49.6
competition
Ongoing research of market demand 28.6
Product specifications 22.7
Improved production technology 22.7
Renewal of product range 21.8
Improved product design 16.0
Company’s products are unique 14.3
Modification of products 10.1
Source: Survey of 122 enterprises in the construction materials sector

The same factors (competitive prices, established entrepreneurs, the basis for competitiveness on
sales channels, and superior product quality foreign markets for those companies that operate
compared to competition) are, according to on them.

Prepared by BIZPRO 132

 TABLE 5-4. FACTORS HELPING PRODUCERS COMPETE ON FOREIGN MARKETS, PERCENT OF
ENTERPRISES
Competitive advantages
Competitive pricing
Established product sales channels
Superior product quality compared to competition
Ongoing research of market demand
Product specifications
Renewal of product ranges
Company’s product is unique
Modification of products
Improved product design
Improved production technology
Source: Survey of 122 enterprises in the construction materials sector.
5.4. THE SHADOW ECONOMY’S ROLE
The shadow economy no doubt has great
significance for the construction materials market.
Building projects are expensive, so customers are
looking for ways to save money. The shadow
economy offers significantly lower prices, and that
interferes with legitimate business.
In fact, there are no radical methods for
combating shadow sector producers and sellers.
Entrepreneurs have to pin their hopes on state
supervisory bodies. Key players in the sectors are
trying to fight the gray market by launching and
promoting new brands, developing protective
packaging/labeling, establishing closer
cooperation with distributors, expanding their own
distribution networks, etc. All these things lead to
additional marketing costs, and thus reduce
profitability.
For the majority of experts, it was difficult to
estimate the shadow sector’s size. It has been
noted that the shadow economy exists in the
production of paints segment. Contraband
goods are imported and so-called “entrepreneurial
subjects,” which have no production facilities of
their own, mix various components together to
produce “paint” that is then falsely labeled with
labels of well-known brands (10% to 50% of the
total market volume). Understating customs value,
according to experts, is the main method of
minimizing costs when importing varnish and paint
Prepared by BIZPRO
Percent of enterprises
59.3
55.6
48.1
33.3
25.9
25.9
18.5
14.8
14.8
11.1
products (“gray” procedure). The “black”
procedure, i.e., smuggling, is of minor importance
and only occurs in border regions.
In the pipe manufacturing sector, the shadow
economy is represented by non-certified plants
that operate without authorization, as well as by
smuggled goods from Hungary, Poland, and
Czechia, at the proportion of about 30% of the
total market volume.
“Regional” contraband (mainly from Poland) has
been cited by producers of roofing materials
(5%-20% of the market, depending on the region).
Legitimate manufacturers complained about the
activities of “cottage industry” producers of metal
plastic structures.
Producers of ceramic tiles indicate that the
shadow economy in their segment is primarily
represented by “gray” import.
Enterprises engaged in the production of
reinforced concrete products say there is no
shadow economy in their segment.
Experts say the role of entrepreneurial entities on
the construction materials market is insignificant
(not more than 5%). Moreover, some
manufacturers are using private entrepreneurs as
dealers.
133
6. FINANCE
6.1. COST STRUCTURE
Making construction materials is raw material Energy costs have a significant impact on the cost
intensive, so expenditures for raw materials and and competitiveness of production. According to
inputs account for the main part of prime cost. the majority of respondents, if energy prices
According to surveyed experts, they account for increase, product competitiveness could decrease
52% of prime cost, on average. by approximately 10%-20%.
Payroll is the next important expense item (15% of Based on the data from the survey of enterprises,
costs), followed by plant depreciation (10%), among the materials directly used for production,
energy costs (survey data returned 5%; however, raw materials and inputs account for 75.0%, semi-
according to experts, this share could be as high finished items 12.2%, and procurement of finished
as 40%), transport (3%), and marketing (3%). The goods for the purposes of own production 12.8%.
remaining costs (11%) include design works, Notably, Ukrainian products prevail in each of
bribes, packaging, etc. these categories.
TABLE 6-1. RATIOS OF ENTERPRISE PRODUCTION COSTS, PERCENT
Of Ukrainian origin, Of foreign Overall
% origin, % share
raw materials/input, which are used for 67.0 8.0 75.0
enterprises’ own production
semi-finished products, which are used for 10.9 1.3 12.2
enterprises’ own production
finished products, which are used for 11.6 1.2 12.8
enterprises’ own production
Source: Survey of 122 construction materials industry enterprises.

The ratios of production costs at enterprises of
different sizes differ. In particular, large
enterprises have the highest share of
expenditures for raw materials and inputs
(84.4%), compared to 65.6% for medium-sized
and 77.7% for small enterprises. However,
medium-sized enterprises are ahead of the two
other groups in terms of costs of semi-finished
products for their own production and finished
products for their own production needs.

TABLE 6-2. RATIOS OF PRODUCTION COSTS FOR ENTERPRISES OF DIFFERENT SIZES,

PERCENT
Raw materials/inputs used Semi-finished products Finished products used
for enterprises’ own used for enterprises’ own for enterprises’ own
production production production
Small enterprises 77.7 9.8 12.6
Medium-sized enterprises 65.6 17.7 16.7
Large enterprises 84.4 8.7 6.9
Source: Survey of 122 construction materials industry enterprises.

6.2. AVERAGE PRODUCTION PROFITABILITY BY SEGMENT

Based on unofficial data, average profitability in
the sector varies from 5% to 30%. Each segment,
however, has its own profitability level, which
depends on production costs and level of
competition, product life cycle, demand trends,
and company size. In addition to the overall
profitability picture, various profitability levels
could be discussed for various product groups
within the same enterprise. In particular, a unique
product might have higher profitability, whereas it
might make sense to operate at “breakeven” for
other groups, for marketing reasons.
Thus, according to respondents’ data, the average
profitability in the dry building mixtures segment
is estimated at 15%-19%, and is sometimes as
high as 25%.
Profitability of 100% could be achieved in
production and sale of bricks; however, it

Prepared by BIZPRO 134

normally amounts to 10% (even though some
experts also quoted 3%-5%).
The profitability of facing bricks is much higher
than that of clay bricks due to price differentials
and shortages of facing bricks. Given high
production volumes, the maximum profitability of
ceramic bricks could reach 20% of production
cost, with 60% profitability for facing bricks.
In the varnishes and paints segment, average
profitability varies between 20% and 80% (even
though some experts quoted 5%).
For the woodworking industry, production of
concrete products, roofing materials, and
Prepared by BIZPRO
ceramic products, the profitability is rather low,
at 5% to 10%.
In general, the construction materials sector is
profitable and economically efficient: profits
increased by 35% on average for 43% of
enterprises (2005 vs. 2004); for 30% of
enterprises profit levels remained unchanged.
As regards economic efficiency, the following is
observed: 37% of enterprises note growth in
efficiency at an average of 14%, while for 37.7%
efficiency remained unchanged.
135
7. EXPORT BUSINESS
7.1. EXPORT BUSINESS OF ENTERPRISES IN THE SECTOR
Only about a quarter of construction materials
industry enterprises (24.8%) export their products
at present. Another 13.2% of enterprises
FIGURE 7-1. EXPORT TRANSACTIONS, PERCENT OF ENTERPRISES
62.0
Source: Survey of 122 construction materials industry enterprises.
Large enterprises are the main exporters, with
66.7% of the total engaged in export right now or
having been engaged in it in the past (55.6% are
pursuing export business at present). That
percentage is 40.4% for medium-sized enterprises
FIGURE 7-2. INVOLVEMENT IN EXPORT TRANSACTIONS AMONG ENTERPRISES OF DIFFERENT
SIZE, PERCENT OF ENTERPRISES
78,8
59,5
55,6
21,4
19
11,5 9,6 11,1
Small Medium Large
Source: Survey of 122 construction materials industry enterprises.
This situation is explained by the different
opportunities enterprises of different sizes have
available to them. Large enterprises have large
production volumes, part of which can be
exported.
Volumes are naturally smaller for small
enterprises, and they could export only small
batches, which is not economical. Besides, large
companies have greater financial resources with
Prepared by BIZPRO
conducted export transactions previously and then
abandoned export, while the majority (62.0%)
have never exported their products.
24.8 Enterprise is exporting its
products
Enterprise exported its
products before
13.2
Enterprise has never exported
its products
(21.4% conduct export transactions at present),
and 21.1% for small enterprises (only 11.5% are
involved in export business at present, and 78.8%
have never been involved in export).
Enterprise is exporting its products
Enterprise exported its products before,
33,3
but is not exporting now
Enterprise has never exported its
products
which to search for foreign partners and can retain
such partners with attractive offers. Also, foreign
partners are more likely to collaborate with large,
well-known, reliable companies, rather than with
small and obscure enterprises, where the
likelihood of default on obligations is higher.
The main markets for exporting companies
include CIS countries (with 83.3% of all exporters
136
working on these markets) and European countries (46.7%).
TABLE 7-1. MARKETS OF EXPORTING ENTERPRISES , PERCENT OF ENTERPRISES*
Markets Percent of exporting
enterprises
Markets of CIS countries 83.3
Markets of European 46.7
countries
USA and Canada 16.7
Other countries 23.3
Source: Survey of 122 construction materials industry enterprises.
*The sum total of percent exceeds 100%, as several answer options could be selected.

The majority of enterprises have been present on (experienced by 45.8% of exporters) and the
the above markets for not more than five years; administrative and bureaucratic barriers in
however, there are companies that have been Ukraine (37.5% of enterprises). Only 20.8% have
working on CIS, European, Canadian, and U.S. experienced no problems when entering CIS
markets for 50 years. Further on, only exports to markets. It should be noted that few
CIS countries will be discussed, since too few entrepreneurs (8.3%) believe that Ukrainian
companies are exported to other markets. products are non-competitive abroad due to their
quality. However, a quarter of entrepreneurs
Among the main obstacles companies face when (25.0%) have doubts about the price
exporting to CIS countries, the most frequently competitiveness of Ukrainian goods.
named was the high level of competition
TABLE 7-2. OBSTACLES EXPERIENCED BY ENTERPRISES IN ENTERING CIS MARKETS,
PERCENT OF ENTERPRISES*
Percent of exporting
Obstacles
enterprises
High level of competition 45.8
Administrative and bureaucratic barriers in Ukraine 37.5
Administrative and bureaucratic barriers in target
29.2
countries
Product non-competitiveness by price 25.0
Product non-competitiveness by quality 8.3
Other 0.8
No obstacles 20.8
Source: Survey of 122 construction materials industry enterprises.
*The sum total of percent exceeds 100%, as several answer options could be selected.

Half of the enterprises (50.0%) that export to CIS themselves. Some 41.7% of enterprises entered
countries have found partners in CIS thanks to these markets thanks to participation in seminars
their personal contacts, and the same percentage and trade shows, 33.3% by using the Internet, and
of enterprises have been found by CIS partners 20.8% by working through business associations.
TABLE 7-3. EXPORTERS’ METHODS OF FINDING PARTNERS IN CIS MARKETS, PERCENT OF
ENTERPRISES*
Methods of finding partners Percent of
exporting
enterprises
Personal contacts 50.0
Partners approached my company themselves 50.0
Participation in seminars, trade shows, etc. 41.7
Through the Internet 33.3
With the help of databases 20.8
Through foreign missions, chambers of trade, embassies 20.8
Through business associations 20.8
Source: Survey of 122 construction materials industry enterprises.
*The sum total of percent exceeds 100%, as several answer options could be selected.

Prepared by BIZPRO 137

About a half of exporters (41.3%) exported only
up to 20% of their produce in 2005. Some 37.8%
of enterprises exported 30% to 50% of the
TABLE 7-4. SHARE OF 2005 PRODUCTION VOLUME EXPORTED, PERCENT OF ENTERPRISES
Percentage of exported products
up to 10%
11-20 %
21-30%
31-40%
41-50%
more than 50%
Source: Survey of 122 construction materials industry enterprises.
The great majority of exporting enterprises
(82.1%) export the same products that they make
for the domestic market, while only a little more
than one third of enterprises (35.7%) manufacture
special or adapted products for export. Some
21.7% of enterprises exported both products
intended for the domestic market and especially
manufactured/adapted products.
Nearly all exporting enterprises (89.7%) are
exporting finished products, while 13.8% of
enterprises export raw materials, and 24.1%
export semi-finished items. Thus, there is some
(smaller) part of enterprises that export both
finished products and raw materials and inputs. In
particular, from among enterprises exporting
finished products, 19.2% export semi-finished
products, and 11.5% also export raw materials.
In making construction materials intended for
export, the exporting enterprises use both
TABLE 7-5. EXPORT SALES IN 2005, PERCENT OF ENTERPRISES
Export sales
Up to Hr100,000
Hr 100,000 to Hr500,000
Hr500,000 to Hr1.0 million
Hr1.0 million to Hr10.0 million.
More than Hr25.0 million
Source: Survey of 122 construction materials industry enterprises.
The manufacturers indicate the following main
barriers for entry into foreign markets:
- non-competitiveness of products in terms of
quality;
- administrative and bureaucratic barriers in
Ukraine;
- administrative and bureaucratic barriers in target
countries.
The manufacturers, however, are facing obstacles
not just at the time of their market entry, but also
Prepared by BIZPRO
products, and only every fifth company (20.7%)
exported more than half of its production.
Percent of
exporting
enterprises
24.1
17.2
17.2
17.2
3.4
20.7
Ukrainian (82.1% of enterprises) and imported
raw materials and inputs (50.0% of enterprises).
Production of export goods from domestic raw
materials has a clear prevalence here, with 89.7%
of enterprises making their export produce from
Ukrainian raw materials, and only 20% using raw
materials of foreign origin; 16.7% of enterprises
use raw materials under give-and-take
arrangements, and 11.5% of enterprises use both
domestic and foreign raw materials when
manufacturing goods for exports. Such a
preference for domestic raw materials can be
explained by their sufficient production volumes
and acceptable prices.
The volume of construction materials export is not
very large in financial terms, with about a quarter
of exporting enterprises having exported less than
Hr250,000 worth of products each in 2005. Less
than half the enterprises (42.8%) exported less
than Hr1 million worth of goods.
Percent of
exporting
enterprises
19.0
23.8
14.3
28.6
14.3
in the course of their subsequent activities in
foreign markets (at least at present). Further
obstacles to expanding production are identified
by the respondents as follows:
- lack of information about demand for exported
products in foreign markets;
- difficulties in finding partners;
- uncompetitiveness of products in terms of
quality;
- price barriers;
138
- complexity and high prices of completing export
procedures;
- high level of competition;
- insufficient volume of production;
- lack of international quality certificate.
However, 21% of enterprises are satisfied by their
domestic sales and, therefore are uninterested in
foreign markets at present.
FIGURE 7-3. ENTERPRISES’ PLANS TO EXPORT PRODUCTS IN 2007, PERCENT OF
ENTERPRISES
It could be argued that foreign markets are
attractive for Ukrainian construction materials
makers. Some 34.7% of companies in the sector
plan to pursue exporting in the future. These
include nearly all the present exporters (96.4%),
30.8% of enterprises that exported previously and
did not export in 2005, and 16.4% of enterprises
that have never been engaged in export before.
Nearly one tenth of enterprises (9.9%) are
undecided as to their plans in this matter, and
more than half of enterprises (55.4%) have no
such plans.

9,9 Enterprises plan

exporting products
34,7

Enterprises have no
plans to export
products
Undecided

55,4

Source: Survey of 122 construction materials enterprises.

Large enterprises are most inclined to export in exports, compared to 31.0% of medium-sized
the future, with 53.8% of them planning future enterprises, and 28.3% of small enterprises.

FIGURE 7-4. PLANS OF ENTERPRISES OF DIFFERENT SIZES TO EXPORT PRODUCTS IN 2007,

PERCENT OF ENTERPRISES

Large
53,8 34,6 11,5
enterprises Enterprises plan to export products

Medium-sized Enterprises have no plans to

31,0 59,5 9,5 export products
enterprises
Undecided

Small
28,3 62,3 9,4
enterprises

Source: Survey of 122 construction materials industry enterprises.

7.2. LEVEL OF SUPPORT AND EVALUATION OF CONSEQUENCES OF UKRAINE’S POSSIBLE

ACCESSION TO WORLD TRADE ORGANIZATION, EUROPEAN UNION, AND COMMON ECONOMIC
SPACE
Ukrainian construction materials makers are in support such actions. In particular, 66.4% of
general supportive of the country’s joining various entrepreneurs support Ukraine’s WTO accession
economic and political associations. A little less fully or partially (46.2% support fully and 20.2%
than half of the surveyed enterprises fully support support partially), whereas only 20.2% do not
Ukraine’s entry to the World Trade Organization, support it. Every tenth company (10.9%) is still
European Union, and Common Economic Space, undecided.
whereas only about a quarter of enterprises don’t

Prepared by BIZPRO 139

 FIGURE 7-5. SUPPORT FOR UKRAINE’S JOINING THE WORLD TRADE ORGANIZATION (WTO),
PERCENT OF ENTERPRISES
46,2

Support
Partially support
20,2 20,2 Don't support
Difficult to tell
10,9 Heard nothing about this
2,5

Source: Survey of 122 construction materials industry enterprises.

Some 44.0% of large enterprises fully support percentages of those who categorically oppose
WTO accession, as do 46.3% of medium-sized joining this organization are 20.0%, 17.1%, and
enterprises and 47.2% of small enterprises. The 20.8%, respectively.
FIGURE 7-6. SUPPORT FOR UKRAINE’S JOINING THE WORLD TRADE ORGANIZATION AMONG
ENTERPRISES OF DIFFERENT SIZE, PERCENT OF ENTERPRISES

Support

Large enterprises 44.0 16.0 20.0 16.0 4.0

Partially support,
partially don't

Don't support
Medium-sized
46.3 22.0 17.1 9.8 4.9
enterprises
Difficult to tell

Small enterprises 47.2 20.8 22.2 9.40.0 Heard nothing about

this

Source: Survey of 122 construction materials industry enterprises.

The proportions of support for Ukraine’s joining 63.0% of entrepreneurs (41.2% support such
the European Union are approximately the same entry fully and 21.8% partially), while 22.7% do
as those for joining the WTO. Full or partial not support it. Some 10.9% of enterprises have
support for joining this association is pledged by not decided on their position yet.

Prepared by BIZPRO 140

 FIGURE 7-7. SUPPORT FOR UKRAINE’S JOINING THE EUROPEAN UNION (EU), PERCENT OF
ENTERPRISES

41.2 Support
Partially support, partially don't
Don't support
21.8 22.7 Difficult to tell
Heard nothing about this
10.9
3.4

Source: Survey of 122 construction materials industry enterprises.

Attitudes towards EU entry by enterprises of (44.0%, compared to 39.0% of medium-sized

different size also differ only slightly. A somewhat enterprises and 41.5% of small enterprises);
greater proportion large companies support entry however, these differences are insignificant.

FIGURE 7-8. SUPPORT FOR UKRAINE’S JOINING THE EUROPEAN UNION AMONG ENTERPRISES
OF DIFFERENT SIZES, PERCENT OF ENTERPRISES

Support

Large enterprises 44,0 16,0 24,0 12,0 4,0 Partially support,

partially don't

Medium-sized Don't support

39,0 24,4 19,5 9,8 7,3
enterprises
Difficult to tell

Small enterprises 41,5 22,6 24,5 11,30,0

Heard nothing
about this

Source: Survey of 122 construction materials industry enterprises.

Similarly, there prevails a generally positive surveyed entrepreneurs fully support entry, and
attitude nationwide to Ukraine’s joining the 18.5% support it partially). Some 24.4% of
Common Economic Space (42.9% of the entrepreneurs oppose joining this association.
FIGURE 7-9. SUPPORT FOR UKRAINE’S JOINING THE COMMON ECONOMIC SPACE (CES),
PERCENT OF ENTERPRISES

42,9
Support

Partially support, partially

don't
24,4 Don't support
18,5
Difficult to tell
10,9
Heard nothing about this
3,4

Source: Survey of 122 construction materials industry enterprises.

Prepared by BIZPRO 141

Small enterprises appear to be the most CES entry is almost the same among large and
negatively disposed towards CES entry, with small enterprises (40.0% and 41.5%, respectively)
34.0% of them opposing it, compared to 12.2% of and a little higher for medium-sized enterprises
medium-sized enterprises and 24.0% of large (46.3%).
enterprises. However, the level of full support to
FIGURE 7-10. SUPPORT FOR UKRAINE’S JOINING THE COMMON ECONOMIC SPACE AMONG
ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTERPRISES

Support

Large enterprises 40.0 16.0 24.0 16.0 4.0 Partially support,

partially don't

Medium-sized Don’t support

46.3 22.0 12.2 12.2 7.3
enterprises
Difficult to tell

Small enterprises 41.5 17.0 34.0 7.50.0

Heard nothing
about this

Source: Survey of 122 construction materials industry enterprises.

Opinions regarding the possible consequences of
joining all the above organizations are quite
diverse. With regard to the possible
consequences of Ukraine’s joining the WTO and
EU, the opinions split almost equally. 28.2% of
entrepreneurs expect WTO accession to improve
the situation for their companies, 27.3% expect
the situation to worsen, and another 31.8%
believe that nothing will change.
Expectations are roughly the same for entry to the
European Union: 22.9% of entrepreneurs expect
improvement in the condition of their companies,
29.4% expect it to worsen, and 33.9% are
convinced than no changes will occur.
More positive expectations have developed with
regard to Ukraine’s joining the Common Economic
Space, with only 16.8% of the surveyed
entrepreneurs believing that joining this grouping
would have a negative impact on their companies.
Some 33.6% expect improvements in their
situation, and 35.5% believe nothing would
change.

FIGURE 7-11. EVALUATION OF CONSEQUENCES OF JOINING THE WORLD TRADE

ORGANIZATION, EUROPEAN UNION, AND COMMON ECONOMIC SPACE FOR COMPANIES IN
THE CONSTRUCTION MATERIALS SECTOR, PERCENT OF ENTERPRISES

33.0 34.0
29.5 29.5
28.2 28.2
Situation will
24.8 improve
22.3 21.4
Situation will not
change
16.2 16.0 17.0
Situation will
worsen

Difficult to tell

WTO entry EU entry CES entry

Source: Survey of 122 construction materials industry enterprises.

Prepared by BIZPRO 142

As regards the level of awareness about the
possible consequences of Ukraine’s WTO
accession, construction materials industry
enterprises have split nearly equally. Some 46.2%
of entrepreneurs believe their level of knowledge
about the consequences of Ukraine’s joining the
WTO is sufficient (6.0% believe they are very well
informed and 40.2% that they are well informed),
and 45.3% regard this level as insufficient (4.3%
regard themselves as completely uninformed in
this matter and 41.0% think themselves
insufficiently informed). Similarly, 47.8% of
entrepreneurs believe themselves to be quite well
informed about possible consequences of WTO
accession for their industry in general (6.8%
FIGURE 7-12. LEVEL OF AWARENESS OF ENTREPRENEURS ABOUT POSSIBLE
CONSEQUENCES OF UKRAINE’S WTO ACCESSION FOR COUNTRY’S ECONOMY IN GENERAL,
CONSTRUCTION MATERIALS SECTOR, AND INDIVIDUAL ENTERPRISES, PERCENT OF
ENTERPRISES
Consequences for own
9.4 38.5
company
Consequences for
6.8 41.0
furniture industry
Consequences for
Ukrainian economy in 6.0 40.2
general
Source: Survey of 122 construction materials industry enterprises.
Assessments of the possible consequences of
Ukraine’s WTO accession depend to a significant
degree on the level of awareness of the
respondents. Notably, the level of awareness has
a positive influence on approval of country’s
joining the WTO.
In particular, among those who believe
themselves to be very well informed regarding the
consequences of WTO accession for the country
in general, 71.4% are convinced that the
accession would have positive consequences for
their enterprises (among those who consider
themselves to be very well informed about the
impact of WTO accession on the construction
Prepared by BIZPRO
consider themselves to be very well informed and
41.0% to be well informed), and 44.4% of
entrepreneurs believe themselves to be
insufficiently informed (5.1% consider themselves
absolutely uninformed in this matter and 39.3%
consider themselves insufficiently informed).
Similar is the entrepreneurs’ rating of their
knowledge about the consequences of WTO
accession specifically for their companies, with
9.4% convinced that they are very well informed
on this issue, 38.5% believing themselves well
informed, 38.5% stating that they are not
sufficiently informed, and 6.0% indicating that they
are absolutely uninformed.
Very well informed
Well informed
38.5 6.0 7.7
Insufficiently informed
39.3 5.1 7.7
Absolutely uninformed
Difficult to tell
41.0 4.3 8.5
materials sector, 75.0% expect improvements for
their company; and among those who are very
well informed about the consequences of
Ukraine’s WTO for individual enterprises, 54.5%
expect improvements).
However, no such correlation exists for a lesser
degree of awareness and insufficient awareness.
Both those insufficiently informed and sufficiently
informed expect positive changes at their
enterprises in equal proportions.
Among those who expect a worsening of the
situation for their companies, there are more who
believe themselves to be well informed about the
consequences of WTO accession at all levels.
143
TABLE 7-6. EVALUATION OF CONSEQUENCES OF JOINING THE WORLD TRADE ORGANIZATION
FOR ENTERPRISES IN THE CONSTRUCTION MATERIALS SECTOR AMONG ENTREPRENEURS
WITH DIFFERENT LEVELS OF INFORMATION AWARENESS, PERCENT OF ENTERPRISES
Evaluation of consequences of WTO accession for own company
Situation will Situation will not Situation will Difficult to
improve change worsen say
Level of information
awareness about the
consequences of WTO
accession for the country
in general
very well informed 71.4 0.0 28.6 0.0
well informed 29.6 38.6 31.8 0.0
insufficiently informed 20.5 31.8 25.0 0.0
absolutely uninformed 40.0 20.0 40.0 0.0
difficult to say 20.0 30.0 10.0 40.0
Level of information
awareness about the
consequences of WTO
accession for
construction materials
sector
very well informed 75.0 12.5 12.5 0.0
well informed 24.4 40.0 33.3 2.2
insufficiently informed 23.8 28.6 26.2 21.4
absolutely uninformed 33.3 33.3 33.3 0.0
difficult to say 22.2 22.2 11.1 44.4
Level of information
awareness about the
consequences of WTO
accession for own
company
very well informed 54.6 18.2 27.3 0.0
well informed 26.2 38.1 33.3 2.4
insufficiently informed 24.4 29.3 24.4 22.0
absolutely uninformed 28.6 42.9 28.6
difficult to say 22.2 22.2 11.1 44.4
Source: Survey of 122 construction materials companies.

According to well-informed manufacturers, entry The majority of exporters of construction materials

to WTO, EU, and CES would have a positive
impact on development of Ukrainian enterprises
and boost production volumes. Possible
consequences of joining these organizations
would include:
– leveling of border barriers;
- improvement in Ukraine’s investment
attractiveness;
- manufacturing achieving a qualitatively higher
level;
- increased volume of production and sales due to
expansion of markets (however, stronger
competition is also possible).
also do not expect negative changes from
Ukraine’s joining the World Trade Organization,
European Union or Common Economic Space.
Only 15.4% among these enterprises expect a
potential decline in export sales as a result of
WTO accession, 16.0% as a result of EU
accession, and 8.3% as a result of CES
accession. Some 34.6% of exporters anticipate no
changes from WTO entry, 40.0% no changes from
EU entry, and 29.2% no changes from CES entry.
Exporters are the most positive about CES entry
(33.3% of entrepreneurs expected an increase in
export sales). They are somewhat less positive
about WTO entry (23.1%). Only 16% of
enterprises anticipate an increase in exports from
EU entry.

Prepared by BIZPRO 144

TABLE 7-7. EVALUATION OF POTENTIAL IMPACT OF ENTRY TO WTO, EU, AND CES ON EXPORT
OF CONSTRUCTION MATERIALS, PERCENT OF ENTERPRISES
Export volume Export volume will Export volume Difficult to say
will increase not change will decrease
Consequences of 23.1 34.6 15.4 26.9
WTO entry
Consequences of 16.0 40.0 16.0 28.0
EU entry
Consequences of 33.3 29.2 8.3 29.2
CES entry
Source: Survey of 122 construction material enterprises.

Prepared by BIZPRO 145

8. DEVELOPMENT
8.1. MAIN DIRECTIONS FOR INDUSTRY’S DEVELOPMENT
It can be stated with certainty that the construction
materials industry is developing and improving
rapidly as a result of growth in construction and an
increased demand for new commercial and
residential buildings. Manufacturers in this sector
are improving both production processes and
products, and attracting (or trying to attract)
investors to develop production and expansion.
In fact, all segments within the sector are
developing. Even within each segment, however,
there are main directions and materials that have
good prospects for development.
In the segment of varnishes and paints, there
appears to be increases both in production and in
the number of trademarks on the market—both
Ukrainian and imported. There are also increases
in advertisement activity, and a growing demand
for better quality products in mid-price and
expensive price ranges. Water dispersion acrylic
paints are a most promising product group.
For the dry building mixtures segment, experts
predict growth in the share of cement mixes (All-
house – Real Property Information Resources.
Construction Materials).. The dry building mixtures
market is expected to grow about 30%. According
to market operators (The Kontrakty Ukrainian
business weekly, No.22, 30 May 2005), the most
promising materials include heat-insulating
systems (given the growing prices for utility
services and energy), as well as plaster fillers and
grout.
Some manufacturers foresee an increase in sales
for individual types of dry mixes, e.g., machine-
application and frontage finishing materials, of
more than 100%.
The glass production market is quite robust.
Today, experts (Market Evaluation and Forecast” /
Data from the 5th International Specialized
Exhibition “Primus: Windows, Doors, Shapes
2005”) think the most promising development is
production of float glass, ornamental glass,
energy-saving glass, and safety glass (hardened
and laminated).
Glass industry development trends at the
beginning of the third millennium have been
influenced by the following two main factors:
continuously growing requirements for energy-
efficiency of buildings; and growing esthetic
requirements in building design.
Prepared by BIZPRO
Five key elements have influenced modern
requirements for energy-efficiency of buildings
(www.okna.com.ua):
1. The European Directive on Energy Distribution
for Buildings (EDED), enacted in January 2006,
sets extremely high requirements for heating and
solar systems for new buildings. In experts’
estimates, consumption of energy in industrial and
residential buildings produces more than 40% of
Co2 emission. Therefore, the European Directive,
based on the Kyoto Protocol, orders gas
emissions to be cut by 8.8% (against the 1990
level). Studies conducted in the EU indicate that
CO2 could be reduced by 22% through more
efficient use of energy.
2. Increase in energy prices. Prices for energy
resources have reached high levels in recent
years, and the rise is not likely to stop. According
to Goldman Sachs, oil could soon cost $105 per
barrel, and perhaps more. This, in turn, would
generate higher electric power prices. Developers
are therefore focusing on maintenance costs.
3. Revision of standards every five years.
According to the new European Directive,
standards will have to be revised every five years.
Property owners are concerned, expecting ever
more demanding standards in the future, perhaps
prompt the need for expensive modernization of
buildings and services.
4. Attractiveness of the sales/lease market for
energy-efficient buildings. It is mostly tenants who
bear maintenance costs. Therefore, low monthly
rent payments present a great commercial
advantage for energy-efficient buildings.
5. “Social responsibility.” Today, the environment
is an area of corporate and social responsibility.
Transnational companies that proclaim their
ethical attitude toward the environment should
build offices, which reflect their claims.
A business model for the new century could be
formulated as follows:
- glass manufacturers will shift to supplying large-
size products and will maximize their use in
glazing;
- production facilities are to be equipped with the
machinery for making expensive glass;
146
- high-efficiency tinted glass and selective glass
are all part of the same trend of passing

Prepared by BIZPRO 133

expensive glass products over from
manufacturers to process engineers;
- there are advantages in prompt delivery,
replacement, and value;
- architects will be able to design increasingly
more original and complex projects, without
having to sacrifice the energy-efficiency of
buildings.
To conform to these principles, architects have
employed double silver coating and other
innovative solutions, such as gas-filled glazing.
These solutions, however, have not always
proved to be effective enough, and so architects
have had to take a wider view and invent new
intellectual solutions. Such modern solutions
include the following: mounted façades, double-
glazed façades, and smart façades. These
innovative solutions offer a balance between
energy savings and user comfort. It should be
noted that modern glazed façades have actually
achieved a level of insulation similar to that of
thick masonry. In this way, development of
technological innovations for “smart façades” has
become one of the most relevant tasks for the
glass industry.
The mounted façade is an easy and inexpensive
method of fighting the impact of direct sun rays.
Weaknesses of this specific solution, however,
include the area required and the need to tint the
glass to avoid head overload.
The new model of managing glass business offers
benefits for all stakeholders, architects and
technologists alike. Technologists are increasingly
in need of expensive products, i.e., high-tech
glass. Manufacturers, in turn, have obliged them,
and this has brought nice dividends to all those
involved.
The new business model can be characterized by
the following directions:
1. Development of glass tinting and bending.
Development of high-efficiency tinting decorations
allows glass makers to change to making large-
size plates as their core activity and leave control
over glass processing to professional processors.
Benefits of such an approach include:
- processors are able to implement glass
processing independently, which would allow
them to offer quick delivery and replacement;
- improved efficiency would lead to reduction of
costs and increase in profits;
- the possibility of choosing from among glass
processors (competitive prices and service);
Prepared by BIZPRO
- the high efficiency of tinted and bent glass frees
architects from technical problems and limitations,
while allowing to realize their creative ideas.
2. Development of colorless and selective
coatings.
Selective coatings are an excellent solution for
external sheeting of double-glazed façades and
for composite façades for the following reasons:
- simple hardening of the glass used in the
majority of such structures;
- high transmission of sunlight and low level of
reflection;
- efficient coating with a high level of sunlight
control addresses the problem of buffer zone
overheating and significantly improves the
efficiency of double-glazing;
- ability to bend the glass allows for making
structures of virtually any shape.
Therefore, the new business model for glass
industry management for the new century could
be formulated as follows:
- glass manufacturers will shift to supplying large-
size products and will maximize their use in
glazing;
- production facilities are to be equipped with
machinery for making expensive glass;
- high-efficiency tinted glass and selective glass
are all parts of the same trend of passing over
expensive glass products from manufacturers to
engineers;
- prompt delivery and replacement, and good
value;
- architects will be able to design more complex
projects without having to sacrifice buildings’
energy-efficiency.
In experts’ estimates, all the main types of
building glass processing will see good prospects
and domestic market demand in the coming
years. In addition to making double-glazed units
(mainly in volume terms), development is
predicted for hardening and all types of glass
transformation: processing using various types of
machinery for making household and industrial
products and lamination technologies.
Development of domestic production of low-
emission glass on magnetron installations is also
possible.
For further successful development of the glass
market, experts believe it essential that the
existing DBN and SDTU standards be followed.
Also, there should be greater company
specialization (division of production of glazed
147
units and window structures, façades, etc.), use of
safety glass should be increased.
The national glass market depends on
development of the country’s economy in general
and on the population’s financial well-being.
Today, the per capita glass use figure for Ukraine
is significantly lower than that not only of
developed western countries, but also of close
neighbors (Poland, Czechia, etc.). For instance,
the volume of glazed units manufactured in
Poland is at least four times greater than in
Ukraine, even though Poland’s population is more
or less the same size as Ukraine’s. And while
purchasing powering Ukraine is much lower than
it is in European countries, market prices for
glass, especially special types of glass, are
considerably higher. This slows the Ukrainian
glass market’s progress toward achieving
European standards.
Some Ukrainian manufacturers are competing
with Western companies and even starting to
enter Western markets with their products. The
exception is float glass, as a diverse range of
quality glass is manufactured by global companies
at numerous plants across the world. Importantly,
each plant specializes in making only its own,
narrow segment of the product range, which is the
only technologically and economically reasonable
8.2. QUALITY STANDARDS AND EXTENT OF IMPLEMENTATION OF INTERNATIONAL
CERTIFICATION
Standards were discussed quite extensively in
Section 2.4, therefore, but it appears advisable to
provide some additional information about
international certification. As noted above, ISO
standards of series 9001:2000 for quality systems
are thoe most popular. More than 350,000
enterprises in various countries have certified their
quality systems to these standards.
In today’s practice, including the construction
materials industry, there are two models of quality
systems used: ISO 9001 or ISO 9002
(http://www.derevo.info/info.php?x=story&i=96&p=
19&c=126&lang=ua). They differ in the degree to
which they cover all phases of a product’s life
cycle. The ISO 9001 system model is used by
enterprises whose production cycle comprises
design, development, manufacturing, installation,
and servicing. The ISO 9002 system model is
used when the production cycle includes
manufacturing, installation, and servicing, i.e.,
there is no design and development.
Manufacturer’s implementation of a quality system
to an ISO standard of 9000 series requires that:
- management should consider the maximum
satisfaction of customer needs, both in terms of
product quality and price, as its main operational
priority;
Prepared by BIZPRO
approach. Subsequently, the various plants that
belong to a corporation exchange their produce
and are able, as the result, to offer a wide choice
of glass. In Ukraine, however, one could hardly
imagine numerous float glass plants being built.
About ten of these would be required to produce
an adequate range of glass, with an average cost
of €100 million per facility. On the other hand,
when offering products like processed glass on
Western markets, Ukrainian companies can
realistically compete with local manufacturers.
Thanks to significantly cheaper energy and labor
(for now), and in view of the glass processing
equipment that is being built today, domestic
companies could be of interest to Western buyers.
In the rubber and plastics segment, experts
forecast development of polyethylene pipe
production by 20% (“Ohlyad rynku polimernykh
trub I fasonnykh vyrobiv 2004-2005rr.” (Polymer
Pipes and Shapes 2004-2005 Market Review) /
Biznes, 14 March 2006).
The products of the roofing materials market are
also developing, like euro-slates and euro-
ruberoid.
In the concrete products segment, foam
concrete has good prospects. It is superior to
ceramic bricks and reinforced concrete.
- work planning should be implemented based on
quality, and the reasons and consequences for
faults should be reviewed;
- contracts made with suppliers and customers
should be analyzed;
- active work should be conducted to design new
types of products and continuously improve the
existing products;
- technical and other documents should be well
ordered, and should be in their proper places and
the proper times;
- proactive work should be done with suppliers
toward improving set-making items and materials;
- properly manufactured products should be
tracked during all phases of manufacturing, with
all production processes controlled;
- incoming, in-process, and final product control
should be operational;
- control, measuring, and testing equipment
should all be verified or calibrated, with all
measurements and test results recorded;
- noncompliant products, if at all possible, will be
detected and will never reach the customer;
148
- in all cases when noncompliant products are
identified, adequate steps will be taken to prevent
their recurrence;
- finished products should be properly packed,
preserved, and prepared for shipment;
- regular internal control of quality control system
efficiency should be conducted;
- work aimed at improving personnel qualifications
should be implemented on an ongoing basis;
- a system of feedback, such warranty and post-
warranty service, should be up and running;
- customer inquiries should be analyzed.
Certification of a quality system is an independent
evaluation implemented by an accredited third
party (a certification agency). It attests that the
implemented quality system satisfies all
requirements of the respective standards ISO
9001 or ISO 9002.
It should be underlined that DSTU ISO 9002 is the
ISO 9002 international standard adopted in
Ukraine as a national standard, using “title page”
methods, i.e., without making any changes or
addenda.
The following types of ISO standards are used in
the building industry:
1. ISO 10005-95. Quality Management.
Guidelines on Quality Programs.
2. ISO 10007-95. Quality Management.
Guidelines on Configuration
Management.
3. ISO 10011-1-93, Part 1. Quality Systems
Verification Guidelines.
4. ISO 10011-2-91, Part 2. Qualifications
Criteria for Quality System Export
Auditors.
5. ISO 10011-3-91, Part 3. Inspection
Program Management.
6. ISO 10012-1-93, Part 1. Requirements for
Quality Assurance of Measuring
Equipment. System of Metrological
Verification for Measuring Equipment.
7. ISO 10013-95. Guidelines for Developing
Quality Manuals.
8. ISO 14001-96. Environmental Quality
Management Systems. General
Requirements and Application
Recommendations.
9. ISO 14004-96. Environmental Quality
Management Systems. Development and
Operational Methods Manual.
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10. ISO 9000-1-94, Part 1. Quality
Management and Quality Assurance
Standards. Selection and Application
Guidelines.
11. ISO 9000-2-97, Part 2. Quality
Management and Quality Assurance
Standards. General Guidelines on
Application of ISO 9001, ISO 9002, and
ISO 9003 standards.
12. ISO 9000-3-91, Part 3. Quality
Management and Quality Assurance
Standards. Guidelines on Application of
ISO 9001 Standards for Development,
Supply, and Servicing of Software.
13. ISO 9000-4-93, Part 4. Quality
Management and Quality Assurance
Standards. General Reliability Assurance
Program Management Manual (IEC 300-
1-93, Part1).
14. ISO 9001-94. Quality Assurance Model
for Design, Manufacturing, Development,
Installation, and Servicing.
15. ISO 9002-94. Quality Assurance Model
for Manufacturing, Installation, and
Servicing.
16. ISO 9003-94. Quality Assurance Model
for Final Control and Tests.
17. ISO 9004-1-94, Part 1. Quality
Management and Quality System
Components. Guidelines.
18. ISO 9004-2-91, Part 2. Quality
Management and Quality System
Components. Service Guidelines.
19. ISO 9004-3-93, Part 3. Quality
Management and Quality System
Components. Guidelines for Processed
Materials.
20. ISO 9000-4-93, Part 4. Quality
Management and Quality System
Components. Quality Improvement
Guidelines.
21. DSTU ISO 9000-2001 Quality Control
Systems. Main Provisions and Dictionary.
22. DSTU ISO 9001:2000 Quality Control
Systems. Requirements.
23. DSTU ISO 9004-2001 Quality Control
Systems. Guidelines on Operational
Improvements.
24. DSTU ISO 10011-1-97 Guidelines on
Quality System Verification. Part 1.
Verification.
149
 25. DSTU ISO 10011-2-97 Guidelines on
Quality System Verification. Part 2.
Qualifications Requirements for Quality
System Auditors.
26. DSTU ISO 10011-3-97 Guidelines on
Quality System Verification. Part 3.
Verification Program Management.
27. DSTU ISO 14001-97 Environmental
Management Systems. Composition and
Description of Components. Application
Guidelines.
28. DSTU ISO 14004-97 Environmental
Management Systems. General
Guidelines on Management Principles,
Systems, and Implementation Methods.
29. DSTU ISO 14010-97 Environmental Audit
Guidelines. General Principles.
30. DSTU ISO 14011-97 Environmental Audit
Implementation Guidelines. Audit
Procedures. Audit of Environmental
Management Systems.
31. DSTU ISO 14012-97 Environmental Audit
Guidelines. Qualifications Requirements
to Environmental Auditors.
32. DSTU ISO 9000-1-95, Part 1. Quality
Management and Quality Assurance
Standards. Application and Selection
Guidelines.
TABLE 8-1. DEGREE OF MANDATORY STANDARDIZATION AND CERTIFICATION OF
CONSTRUCTION MATERIALS IN UKRAINE, PERCENT OF ENTERPRISES
All products
Part of products
No products
Source: Survey of 122 construction materials enterprises.
Also, there is a significant correlation between the
level of mandatory standardization and
certification in Ukraine, and the size of an
enterprise. The lowest level of both mandatory
standardization and certification is among small
enterprises, where 48.1% and 49.0% of
enterprises have all their produce standardized
and certified, respectively. Of medium-sized
Prepared by BIZPRO
33. DSTU ISO 9000-2-96, Part 2. Quality
Management and Quality Assurance
Standards. Guidelines on Application of
DSTU ISO 9001-95, DSTU ISO 9002-95
и DSTU ISO 9003-95.
34. DSTU ISO 9004-2-96, Part 2. Quality and
Quality Component Management. Service
Guidelines.
These also include special Methodological
Recommendations for Development of Product
Quality System Documents for the Building
Complex of Ukraine.
The survey of entrepreneurs in the construction
materials sector has indicated that there is a
rather high level of certification to Ukrainian
standards. Overall, 78.3% of enterprises have
some or other level of standardization (for 59.2%
of enterprises all the products are subject to
mandatory standardization, and for another 19.2%
part of products are subject to standardization),
whereas the products of only 21.7% of enterprises
are not subject to mandatory standardization. The
situation is virtually the same with regard to
certification to Ukrainian standards, where all the
products of 55.0% of enterprises are subject to
mandatory certification in Ukraine. Among another
19.2% of enterprises, a portion of products is
subject to mandatory certification. Products of
only about a quarter of enterprises (25.8%) are
not subject to such certification.
Mandatory Mandatory
standardization, certification,
percent of percent of
enterprises enterprises
59.2 55.0
19.2 19.2
21.7 25.8
enterprises, 56.1% have all the products
standardized and 57.1% have all their products
certified. For large enterprises, these indicators
are 85.2% and 63.2%, respectively. Also, the
smallest proportions of large enterprises are
neither standardized nor certify their products
(only 3.7% and 14.8% of such enterprises,
respectively).
150
 FIGURE 8-1. DEGREE OF MANDATORY STANDARDIZATION OF CONSTRUCTION MATERIALS IN
UKRAINE AMONG ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTERPRISES

All products subject

to certification
Large enterprises 85.2 11.13.7

Part of products
subject to
Medium-sized
56.1 24.4 19.5 certification
enterprises
Products are not
subject to
Small enterprises 48.1 19.2 32.7 certification

Source: Survey of 122 construction materials enterprises.

FIGURE 8-2. DEGREE OF MANDATORY CERTIFICATION OF CONSTRUCTION MATERIALS IN

UKRAINE AMONG ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTERPRISES

All products subject

to certification
Large enterprises 63.0 22.2 14.8

Part of products
subject to
Medium-sized
57.1 14.3 28.6 certification
enterprises
Products are not
subject to
Small enterprises 49 21.6 29.4 certification

Source: Survey of 122 construction materials enterprises.

Apparently, this is due to the fact that, first, large However, the level of international certification of
companies are more concerned about their Ukrainian enterprises is very low. Only 26.1% of
reputations. Second, they export more (exporting enterprises have certificates for their goods and
is more difficult without certificates, and demand is 23.5% for quality management systems. Some
lower for such products). Third, they use better 70.4% of enterprises lack international certificates
equipment and make products of higher quality, for goods or for quality management systems.
so it is easier for them to obtain the required
certification.
TABLE 8-2. LEVEL OF INTERNATIONAL CERTIFICATION OF UKRAINIAN ENTERPRISES IN
CONSTRUCTION MATERIALS SECTOR, PERCENT OF ENTERPRISES*
Level of international certification Percent of
enterprises
International certificate for goods 26.1
International certificate for quality management system 23.5
Neither of the above 70.4
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.

Prepared by BIZPRO 151

For enterprises that have international certificates,
it is more common to obtain certificates both for
goods and quality management systems
simultaneously. In particular, among
internationally certified enterprises, 76.7% also
have international certificates both for goods and
quality management systems.
The situation regarding international certification is
worst among small enterprises, 85.7% of which
FIGURE 8-3. LEVEL OF INTERNATIONAL CERTIFICATION OF UKRAINIAN CONSTRUCTION
MATERIALS ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTERPRISES*
Large enterprises 48.1 44.4
Medium-sized
17.9 23.1 71.8
enterprises
Small enterprises 14.3 18.4 81.6
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.
This situation is primarily connected with export
activity. Enterprises operating exclusively on the
domestic market do not really need to secure
international certification, as their products sell
without it. However, export-oriented large
companies are forced to certify their products to
international standards to be able to sell in foreign
markets. This can be a matter of prestige, as
having an international quality certificate lets a
company present its goods as high-quality ones.
Among enterprises that have international
certificates for quality management systems,
FIGURE 8-4. PLANS FOR ISO CERTIFICATION, PERCENT OF ENTERPRISES
Certficiation of quality
management systems 8,3 13,3
to ISO
Source: Survey of 122 construction materials enterprises.
Prepared by BIZPRO
have no international certification of goods and
81.6% have no international certificate for quality
management systems. Large enterprises are the
most active in implementing international
certification systems. Some 48.1% of these
enterprises have international certificates for
goods and 44.4% have international certificates
for quality management systems.
Enterprises have international
48.1 certificates for goods
Enterprises have international
certificates for quality management
system
Enterprises have no such
certificates
77.3% have ISO series certificates, and 22.7%
have certificates of other series.
A smaller percentage of enterprises plan to certify
their management systems to ISO in the future. In
particular, 8.3% of enterprises have already
started the certification process for quality
management systems. Another 13.3% plan to
certify their quality management systems in the
future, and 15.8% are as yet undecided on the
matter. The remaining enterprises (62.5%) have
no plans to certify their quality management
systems.
Certificatio process started
Certification planned in future
Certification is not planned
62,5 15,8
Difficult to tell
152
8.3. LEVEL, STRUCTURE, AND ORIGIN OF INVESTMENTS IN DEVELOPMENT OF SECTOR’S
ENTERPRISES
The present level of attracting investments by
enterprises in the construction materials sector is
not very high. Based on the survey of 122
enterprises, 40.8% of enterprises did not attract
any investments in 2005. Only 6.7% of enterprises
attracted Ukrainian investors and only 4.2%
attracted foreign (non-CIS) investors, and there
were no CIS investors altogether. A little more
than a half of enterprises (50.8%) used their own
equity for investing. Therefore, when considering
only the enterprises that attracted investments in
2005, the proportion of those that used their own
resources rather than external investments for this
purpose, would amount to 85.9%. External
investment, either Ukrainian or foreign, is typical
for a very limited group of enterprises.

TABLE 8-3. INVESTMENTS IN DEVELOPMENT IN 2005, PERCENT OF ENTERPRISES*

Percent of
Investing methods
enterprises
Investing company’s own funds 50.8
Investing the funds of parent company, other
enterprises within association/holding, founders’ 4.2
funds
Attracting a Ukrainian investor 6.7
Attracting a CIS investor 0.0
Attracting investors from other countries (except
4.2
CIS)
No investing 40.8
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.

The proportions of enterprises that have not
attracted any investments are not much different
for small and medium-sized enterprises, at 45.1%
and 50.5%, respectively; however, this
percentage is significantly smaller for large
enterprises (only 18.5%). Also, the proportions of
those that attracted investors from Ukraine and
other countries (except CIS) are somewhat higher
for large enterprises, even though this difference
is not very significant.

TABLE 8-4. INVESTMENTS IN DEVELOPMENT IN 2005 BY ENTERPRISES OF DIFFERENT SIZES,

PERCENT OF ENTERPRISES*
Small Medium-sized Large
Investing methods
enterprises enterprises enterprises
Investing company’s own funds 49.0 40.5 70.4
Investing the funds of parent company, other
enterprises within association/holding, founders’ 0.0 9.5 3.7
funds
Attracting a Ukrainian investor 5.9 2.4 14.8
Attracting a CIS investor 0.0 0.0 0.0
Attracting investors from other countries (except
3.9 2.4 7.4
CIS)
No investing 45.1 50.0 18.5
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.

The overwhelming majority (84.1%) of enterprises invested in technology, and 33.3% invested in
that have invested in production are spending buildings and structures.
money mainly on equipment. Some 39.1%

Prepared by BIZPRO 153

 FIGURE 8-5. INVESTING AREAS, PERCENT OF ENTERPRISES*
84.1
39.1
33.3
7.2
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.
Also, investing in technology is significantly more
popular with large enterprises than it is with other
enterprises. Some 47.6% of large enterprises
invested in it, compared to 33.3% of medium-
sized enterprises, and 37.0% of small enterprises.
Similarly, large enterprises were more active in
investing in equipment. Some 95.2% of these
FIGURE 8-6. AREAS OF INVESTING AMONG ENTERPRISES OF DIFFERENT SIZES, PERCENT OF
ENTERPRISES
Large enterprises 47.6 95.2
Medium-sized
33.3 81.0
enterprises
Small enterprises 37.0 77.8
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.
Enterprises that attracted external investments did
so in monetary form (92.3% of such enterprises
received investments in cash). The second largest
proportion of investments were made in
equipment (46.2% of enterprises received this
type of investment), with technology being third
(30.8% of enterprises received investments in the
form of technology).
Methods for Ukrainian and foreign investors are
almost the same. The most effective methods for
attracting investors in 2005 included seminars,
business meetings, conferences, and through
entrepreneurs’ circles of friends.
Prepared by BIZPRO
In technology
In equipment
In buildings and structures
Other
enterprises invested in equipment, compared to
81.0% of medium-sized enterprises, and 77.8% of
small enterprises. At the same time, small
enterprises have a slightly higher proportion of
those that invested in buildings and structures
(37.0%), compared to 28.6% of medium-sized
enterprises and 33.3% of large enterprises.
33.3
In technology
In equipment
28.6
In buildings, structures
37.0
The methods of attracting Ukrainian and foreign
investors are nearly the same. The most effective
methods of attracting a client in 2005 included:
- acting through business associations;
- acting through embassies, missions, etc.;
- at seminars, business meetings, conferences,
etc.
- using databases, via the Internet;
- acting through business acquaintances in
Ukraine;
154
- investors approached enterprises themselves.
However, the problems that enterprises
experience when attracting investors were
different. When trying to attract a Ukrainian
investor, the most significant causes of
complications included:
- low profitability of the proposed business;
- what investors saw as a too-low level of sales
organization;
- lack of an international quality control system;
- obsolete production equipment/technology.
Low profitability of the proposed business was the
greatest problem in attracting a foreign investor.
Some 49.5% of company managers said they
didn’t try to attract foreign investment because
they have enough of their own money. Difficulties
in searching for external investors present a
significant problem for enterprises in the sector
(24.3% of enterprises experienced such
difficulties). Another 16.8% of enterprises rejected
external investments due to the disadvantageous
conditions offered by investors.

TABLE 8-5. REASONS FOR NOT USING EXTERNAL INVESTMENTS IN 2005, PERCENT OF
ENTERPRISES*
REASONS PERCENT OF
ENTERPRISES
SUFFICIENT OWN FUNDS/RESOURCES FOR DEVELOPMENT 49.5
MY COMPANY IS NOT ATTRACTIVE FOR INVESTORS COMPARED TO OTHER 11.2
COMPANIES IN MY INDUSTRY
THE INDUSTRY IN WHICH MY COMPANY OPERATES IS NOT ATTRACTIVE 7.5
FOR INVESTORS
IT IS DIFFICULT TO FIND AN INVESTOR 24.3
THERE IS NO BUSINESS PLAN FOR INVESTORS 2.8
I AM NOT SATISFIED WITH INVESTORS’ REQUIREMENTS AND THE HIGH 16.8
OBLIGATIONS I WOULD HAVE BEFORE THEM
OTHER 6.5
DIFFICULT TO SAY 7.5
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.

The greatest proportion of those who have (19.6%) of companies who believe themselves to
enough of their own funds for investing is among be unattractive for investors. The group of
small enterprises (54.3%) and large enterprises medium-sized enterprises had the largest
(52.4%), and the smallest is among medium-sized proportion of companies that have had difficulties
enterprises (42.5%). The group of small in finding external investors (40.0%).
enterprises also has the largest proportion
FIGURE 8-7. REASONS FOR NOT USING EXTERNAL INVESTMENTS IN 2005 AMONG
ENTERPRISES OF DIFFERENT SIZE, PERCENT OF ENTERPRISES*

Sufficient own funds/resources for

development

Large My company is not attractive for

52.4 9.54.8 19.0 4.8 23.8 investors compared to other companies
enterprises
in the industry
My industry is not attractive for
Medium-sized investors
42.5 2.5
10.0 40.0 2.5 20.0
enterprises
It is difficult to find an investor

Small
54.3 19.6 6.513.02.510.9
enterprises No business plan for investors

I cannot accept investors' demands

and high obligations before them

Source: Survey of 122 construction materials enterprises.

*The sum total of percent may exceed 100%, as several answer options could be selected.

Prepared by BIZPRO 155

Prepared by BIZPRO 133
9. REGULATORY
ENVIRONMENT
The Ministry of Building, Architecture, and the
Housing and Utilities Sector of Ukraine is
implementing regulatory policy in the building
industry. The Ministry is the successor to the
State Committee of Building and the State
Committee of Housing and Utilities of Ukraine.
According to the legislation, it is implementing
state regulatory policy in the building, urban
development, architecture, the construction
materials industry, housing and utilities, and urban
electrical transport (trams and trolleybuses).
According to Decree of the President of Ukraine of
December 19, 2005, No. 1801/2005 “On the
Charter of the Ministry of Building, Architecture,
and the Housing and Utilities Sector of Ukraine,”
the Ministry has been entrusted with the following
responsibilities:
- providing technical regulation in the above
areas;
- regulating the activities of natural monopolies in
the area of centralized water supply and removal;
- regulating activities in the area of centralized
heating, except for power and heat co-generation
facilities or those using non-traditional or
renewable sources of energy.
One of Ministry’s objectives is to reform the
principles of state regulation in the building
industry by developing a system of technical
regulation (normalization, standardization,
evaluation and conformity approval, etc.), and
adapting the system of normative support of the
building industry in accordance with established
EU practices.
The activities of both Committees towards
development, approval, monitoring effectiveness,
and reviewing regulatory acts are carried out with
the involvement of the public, local executive
authorities, and local governments. Research
institutions are regularly invited to participate in
these efforts.
Regulatory acts are deposited in the LIGA-
ZAKON information and legal support system.
Draft regulatory acts are regularly considered at
meetings of the Advisory Council, which is made
up of 27 national non-governmental organizations,
including seven industry associations, six expert
Prepared by BIZPRO
centers, research institutions, and industry trade
unions.
All draft regulations are posted on the Ministry’s
website (http:/ www. build. gov. ua.), to solicit
suggestions and comments.
The majority of regulatory acts, however, apply to
the construction materials sector only indirectly.
Thus, only one order of the Ministry of Building
and Architecture relevant to the construction
materials industry was issued in 2005. The order,
entitled “On Regulations for Experimental
Construction,” regulates the conditions for
experimental building projects for purposes of
testing of new developments in architecture,
building, and construction materials.
These new developments are aimed at improving
architectural and planning solutions for individual
buildings and developed areas in general,
reducing material-intensity, improving operating
characteristics, increasing energy efficiency,
encouraging advanced building practices,
improving normative documents and state
standards, etc.
The pipe industry is one of the few sectors in
development of which the state is directly involved
(through development of housing and utilities,
which have to be funded by the state budget).
Thus, several targeted state programs have been
developed as of May 2006. They will impact the
manufacturers of pipes for the housing and
utilities sector, as indicated, e.g. in the Program
for Development of Water and Sewer Utilities
approved by Resolution No.1269 of the Cabinet of
Ministers, dated November 17, 1997 (amended by
Resolution No.721 of the Cabinet of Ministers of
Ukraine of June 1, 2002).
From October 2005 through June 2006, the
Ministry of Building developed and approved
comprehensive regional programs for housing
construction in 2006. A Social Housing draft
program was developed, the Law of Ukraine “On
the Housing Stock for Social Purposes” was
approved, and an Interdepartmental Commission
on State Regulation in Building and Private
Investment into Housing and the Public Council
were established.
156
Also, the Ministry has prepared a Draft Decree of
the President of Ukraine “On State Support of
Affordable Housing,” and developed and
elaborated the program of state mortgage
crediting. During this period, a review was
conducted of the realization of the Master Plan of
the territory of Ukraine, and measures were
planned with regard to the Concept for
Development of the Crimean Sea Coast for 2006-
2016.
As of June 2006, a draft Law of Ukraine “On
Amending Certain Legislative Acts of Ukraine on
Implementing State Architectural and Building
Supervision” was prepared for presentation to the
Cabinet of Ministers of Ukraine, with its
subsequent submission to the Verkhovna Rada.
Records are kept in the Register of Emergency
Hazardous Buildings and Structures; an
inspection has been conducted building site of a
railroad and automobile bridge over the Dnipro in
Kyiv, at the railroad section between the Kyiv
Moskovsky and Darnytsya junctions.
The Ministry’s efforts have resulted in increased
production activity in the building industry. This is
supported by an increase in the volume of
implemented investments (by 15.9% in the first
9.1. ADMINISTRATIVE BARRIERS TO ECONOMIC ACTIVITY IN CONSTRUCTION MATERIALS
SECTOR
Each enterprise operates within the framework of
industry regulatory policies. When establishing
enterprises and conducting business, economic
entities have to complete certain procedures, such
as:
- registration/re-registration
- obtaining permits/approvals
- licensing
- certification and standardization
- export-related procedures
TABLE 9-1. APPLICATION OF ADMINISTRATIVE PROCEDURES TO ENTERPRISES IN THE
CONSTRUCTION MATERIALS SECTOR IN 2005, PERCENT OF ENTERPRISES*
Procedures
Inspections by supervisory agencies
Obtaining permits/approvals
Certification and standardization
Registration/re-registration
Licensing
Export-related procedures
Import-related procedures
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.
Medium-sized enterprises have to deal with
inspections by supervisory agencies more often
than other enterprises. Supervisory agencies
Prepared by BIZPRO
quarter of 2006 year on year), an increase in the
volume of building and erection works (by 6.7% in
January-April year on year), a decrease in the
number of unfinished building projects (5.5% less
as of January 1, 2006 against January 1, 2005),
and an increase in the percentage of unfinished
projects, where building is in progress (4.4% more
than last year). Besides, wages are continuously
growing in the industry. Average monthly wages in
January-April of this year amounted to Hr951.06,
which is 27.5% more than in the same period of
2005. The wage level increased to Hr1030.61 in
April 2006.
If the above decrees and resolutions are enacted,
the construction materials industry has an
excellent chance of continuing to develop at its
present pace, and perhaps at an even greater
pace.
As regards the construction materials sector per
se, the “Organization of Building Process. Part 1.
Technological and Executive Documents” is the
key regulatory document.
See Appendix 1 for more detailed information
about the list of requirements for building
applications.
- import-related procedures
- inspections by supervisory agencies
Quite often, enterprises have to complete various
administrative procedures. The most common of
these include inspections by supervisory
agencies, with 81.5% of enterprises undergoing
this procedure in 2005.
In addition, 56.3% of enterprises had to obtain
various permits and approvals, 53.8% had to pass
through standardization and certification
procedures, and 51.3% went through registration
or re-registration.
Percent of
enterprises
81.5
56.3
53.8
51.3
30.3
23.5
21.0
inspected 85.7% of medium-sized enterprises,
81.5% of large enterprises, and 78.0% of small
enterprises in 2005. Registration/re-registration
157
and obtaining of various permits and approvals administrative permits, and licensing, export and
are a little more relevant for small enterprises, import-related procedures, it is large enterprises
54.0% of which had to deal with the process of that have a significant lead, as they have to deal
registration/re-registration, whereas 47.6% of with these procedures significantly more often
medium-sized and 51.9% of large enterprises had than medium and small enterprises.
to do this. However, as regards obtaining
TABLE 9-2. APPLICATION OF ADMINISTRATIVE PROCEDURES TO CONSTRUCTION MATERIALS
ENTERPRISES OF DIFFERENT SIZES IN 2005, PERCENT OF ENTERPRISES*
Procedures
Inspection
Certification Import-
Registratio Obtaining Export- s by
and related
n/re- permits / Licensing related supervisor
Standardizat procedure
registration approvals procedures y
ion s
agencies
Small
54.0 56.0 20.0 44.0 14.0 12.0 78.0
enterprises
Medium
47.6 47.6 26.2 59.5 23.8 11.9 85.7
enterprises
Large
51.9 70.4 55.6 63.0 40.7 51.9 81.5
enterprises
Source: Survey of 122 construction materials enterprises.
*The sum total of percent may exceed 100%, as several answer options could be selected.

Overall, completion of these procedures was not
very problematic for enterprises. The average
score of the difficulty of completing all these
administrative procedures is less than 3 on the
scale of 5, where 1 means insignificant problems
and 5 significant problems. In other words, these
procedures created problems of medium
complexity for comapnies. The most complicated
were procedures related to licensing (average
score of 2.9) and obtaining of permits (average
score of 2.5). Import-related procedures appear to
be the easiest.

TABLE 9-3. EVALUATION OF THE DEGREE OF PROBLEMS CREATED BY ADMINISTRATIVE

PROCEDURES (AVERAGE SCORE, WHERE “1” MEANS THE SMALLEST PROBLEMS, AND “5”
THE GREATEST)
Licensing 2.9
Obtaining permits/approvals 2.5
Inspections by supervisory agencies 2.3
Certification and standardization 2.3
Export-related procedures 2.3
Registration/re-registration 2.1
Import-related procedures 1.9
Source: Survey of 122 construction materials enterprises.

Licensing procedures appear to be the most
difficult for large enterprises (average score 2.7),
as do inspections by supervisory agencies
(average score 2.5), whereas export- and import-
related produces were the easiest (average score
1.9). For medium-sized enterprises, licensing
procedures also appear the most difficult (average
score 3.5), as do export procedures (average
score 3.0), whereas registration and re-
registration was the simplest (average score 2.0).
For small enterprises, the procedures related to
licensing and certification and standardization
were the most difficult (average score 2.6), and
the export and import procedures were the easiest
(average scores 1.7 and 1.5, respectively). In
general, medium-sized enterprises are the most
critical of administrative procedures.

Prepared by BIZPRO 158

 TABLE 9-4. EVALUATION OF THE DEGREE OF PROBLEMS CREATED BY ADMINISTRATIVE
PROCEDURES (AVERAGE SCORE, “1” – BEST SCORE., “5” – WORST SCORE)
Small
enterprises
Registration/re-registration 2.0
Obtaining permits/approvals 2.4
Licensing 2.6
Certification and standardization 2.6
Export-related procedures 1.7
Import-related procedures 1.5
Inspections by supervisory agencies 2.1
Source: Survey of 122 construction materials enterprises.
As regards registration and re-registration, the
enterprises noted long queues, red tape, wastage
of significant amount of time, unstable conditions
and system complexity, corruption,
procrastination, and limited reception hours.
In terms of obtaining permits, enterprises
complained about long queues, red tape, wasted
time, poor performance of officials, high prices,
interference with business, corruption, large
numbers of documents, frequent changes in
legislation, delays and procrastination in
registration, incompetence.
Complaints about the licensing procedure
included long queues, red tape, wastage of great
amounts of time, an imperfect legislative
framework, and intentional stalling in completion
of the procedure.
When completing certification procedures,
entrepreneurs experience long lines, red tape,
shoddy work by officials, high prices, complex
procedures, a large number of unnecessary
conditions, and procrastination in issuing the
documents.
As regards export-related procedures,
entrepreneurs complain about significant wastage
of time, excessive prices, the great number of
documents and the complexity of the procedures,
corruption, procrastination in issuing documents,
and the great number of supervisory agencies.
Prepared by BIZPRO
Medium-
sized Large
enterprises enterprises
2.0 2.4
2.8 2.3
3.5 2.7
2.1 2.3
3.0 1.9
2.4 1.9
2.4 2.5
When completing import-related procedures, there
are such problems as significant time loss,
excessive prices, a huge number of required
documents, problems with customs, a great
number of supervisory agencies, difficulties in
finding required information, and procrastination in
issuing documents.
Inspections by supervisory agencies created such
problems as irrelevant nit-picking, red tape,
significant losses of time, excessive prices,
excessive frequency of inspections, inspections’
interference with conducting business, corruption,
an excessive number of supervisory agencies,
excessive requirements, procrastination in issuing
documents, and no advance notification about
inspections.
Entrepreneurs were asked to indicate in the
survey whether or not the conditions of completing
various administrative procedures in 2005 have
changed compared to previous years, and to
specify what changes have occurred, if any. The
overwhelming majority of entrepreneurs have not
felt any noticeable changes. Only 13.2%
mentioned simplification of these procedures.
Another 12.4% are convinced that it has become
even more difficult to obtain permits, and 64.5%
have not noticed any changes.
159
 FIGURE 9-1. ASSESSMENT OF CHANGES IN THE PERMIT PROCEDURE IN 2005 COMPARED TO
OTHER YEARS, PERCENT OF ENTREPRENEURS

9.9 12.4

It has become more difficult

13.2 to obtain permits
Nothing has changed

It has become easier to

obtain permits
Difficult to say

64.5

Source: Survey of 122 construction materials enterprises.

The greatest number of interviewees to have noticed simplification, and 14.8% of

noted simplification of permit procedures in 2006 representatives of large enterprises. On the other
compared to 2005 are involved with small hand, the greatest number of those convinced that
enterprises (19.2%). Some 4.8% of obtaining permits has become more difficult are
representatives of medium-sized enterprises from large enterprises.
FIGURE 9-2. ASSESSMENT OF CHANGE IN PERMIT PROCEDURE IN 2005 COMPARED TO OTHER
YEARS, BY ENTERPRISES OF DIFFERENT SIZES, PERCENT OF ENTREPRENEURS

It has become more difficult to

Large enterprises 18.5 66.7 14.80.0 obtain permits
Nothing has changed
Medium-sized
11.9 69.0 4.8 14.3 It has become easier to obtain
enterprises
permits
Difficult to say
Small enterprises 9.6 59.6 19.2 11.5

Source: Survey of 122 construction materials enterprises.

9.2. INFLUENCE OF ECONOMIC ENTITIES ON REGULATORY ENVIRONMENT

Based on entrepreneurs’ opinions, their ability to
influence the regulatory environment through legal
channels is insignificant. In 2005, only 8.9% of
enterprises took part in discussing draft central
government resolutions that would regulate
business activities. As regards participation in
discussing draft decisions developed by local
authorities, here the level of participation by the
enterprises was slightly higher, but still not very
high, at 24.3%. The average frequency of such
participation, where it occurred at all, was three
times.

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 FIGURE 9-3. LEVEL OF PARTICIPATION OF ENTERPRISES IN THE CONSTRUCTION MATERIALS
SECTOR IN DISCUSSING DRAFT DECISIONS THAT WOULD REGULATE SECTOR OPERATION,
PERCENT OF ENTERPRISES
91,1
75,7

24,3 Took part in discussing

Took no part in discussing
8,9

Central government Local government decisions

decisions

Source: Survey of 122 construction materials enterprises.

Large enterprises are significantly more active in local government decisions their participation is
this respect, with 37.5% of them having even higher, with 56% of large enterprises taking
participated in discussing central government draft part.
resolutions that would impact their business. In
FIGURE 9-4. LEVEL OF PARTICIPATION OF CONSTRUCTION MATERIALS ENTERPRISES OF
DIFFERENT SIZES IN DISCUSSING DRAFT RESOLUTIONS THAT WOULD REGULATE ACTIVITIES
IN THE SECTOR, PERCENT OF ENTERPRISES

56.0

37.5

Took part in discussing draft

resolutions of central government
Took part in discussing draft
17.1 resolutions of local government
14.3

2.1
0.0
Small Medium-sized Large
enterprises enterprises enterprises

Source: Survey of 122 construction materials enterprises

Another means of influencing decisions is making common, while another 21.8% rather agree with
informal payments to officials. Among the this statement. That is, more than half of
interviewed entrepreneurs, 16.4% fully agree with entrepreneurs believe such a problem exists,
the statement that such payments are quite while the other half disagree that it exists.

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 FIGURE 9-5. LEVEL OF AGREEMENT OF ENTREPRENEURS MAKING INFORMAL PAYMENTS TO
OFFICIALS IS A RELEVANT PROBLEM, PERCENT OF ENTREPRENEURS
11.8
16.4

Absolutely agree
Rather agree
Rather disagree
30.0 21.8 Absolutely disagree
Difficult to tell

20.0
Source: Survey of 122 construction materials enterprises

Representatives of medium-sized enterprises enterprises agreed, to differing degrees, that this

have placed a somewhat greater emphasis on the problem exists, 36.7% of representatives of small
problem of informal payments to officials. Where enterprises and 33.3% of representatives of large
43.2% of representatives of medium-sized enterprises agreed.
FIGURE 9-6. LEVEL OF AGREEMENT OF REPRESENTATIVES OF ENTERPRISES OF DIFFERENT
SIZES WITH THE RELEVANCE OF THE PROBLEM OF INFORMAL PAYMENTS TO OFFICIALS,
PERCENT OF ENTREPRENEURS

Large enterprises 33.3 62.5 4.2

Agree
Medium-sized Disagree
43.2 35.1 21.6
enterprises Difficult to say

Small enterprises 36.7 55.1 8.2

Source: Survey of 122 construction materials enterprises.

The most common reason entrepreneurs gave
unofficial payments to officials was to speed
administrative procedures. This reason was
indicated by 38.1% of entrepreneurs. Some
25.7% of entrepreneurs say informal payments
had to be made in order to avoid obstacles in
completing administrative procedures. Another
24.8% of entrepreneurs believe the reason is that
officials demand such payments. Some 38.1% of
entrepreneurs could not (or would not) say why
such payments are made.
The share of these payments of enterprises’s
profits is not very large, 3.8% on average.
Besides, this assessment differed significantly
depending on the enterprise. Where
representatives of small enterprises estimate this
share to be 3.9% on average, representatives of
medium-sized estimate it to be 5.8%, and
representatives of large enterprises say it is close
to zero.
As regards the forms in which such payments are
made, cash payments are the most common (as
indicated by 60.7% of entrepreneurs who
answered this question). Second place is
occupied by in-kind payments (referred to by
26.8% of entrepreneurs), and third place involved
making various voluntary payments (25.0% of
entrepreneurs).

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 TABLE 9-5. ENTREPRENEURS’ ASSESSMENT OF THE RATIOS OF VARIOUS FORMS OF
INFORMAL PAYMENTS TO OFFICIALS, PERCENT OF ENTREPRENEURS*
Forms of payment Percent of
enterprises
Cash payments 60.7
Payments in kind 26.8
Making voluntary contributions to foundations or 25.0
payments to the accounts of organizations indicated by
officials
Subscription to departmental publications 17.9
Source: Survey of 122 construction materials enterprises.
*The sum total of percent exceeds 100%, as more than answer option could be selected. The presented distribution is only for the
respondents who have answered this question.

In-kind informal payments become more popular
as company size decreases. While 46.2% of
representatives of large enterprises mention this
form of payment, 35.3% of representatives of
medium-sized enterprises do, and 11.5% of
representatives of small enterprises. Also, no
representatives of large enterprises mentioned
making voluntary payments, whereas 34.6% of
small enterprise and 29.4% of medium-sized
enterprise representatives did.

FIGURE 9-7. ASSESSMENT BY ENTREPRENEURS AT DIFFERENT LEVELS OF THE RATIOS OF

VARIOUS FORMS OF INFORMAL PAYMENTS TO OFFICIALS, PERCENT OF ENTREPRENEURS*

69.2 Cash
61.5
52.9
46.2
In-kind
34.6 35.3
29.4
23.1
Subscription to departmental
15.4 publications
11.5 11.8

0.0
Making voluntary contributions to
Small Medium-sized Large funds or paying into accounts of
enterprises enterprises enterprises organizations indicated by officials

Source: Survey of 122 construction materials enterprises.

*The sum total of percent exceeds 100%, as more than one answer options could be selected.

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10. BUSINESS ASSOCIATIONS
Collaboration between competitors within
segments of the construction materials sector is
beneficial for all parties in such matters as
lobbying industry interests, development of
relations with society, development of production
specialization and cooperation, cooperation in
R&D, etc.
FIGURE 10-1. EXTENT OF PARTICIPATION IN BUSINESS ASSOCIATIONS/GROUPINGS, PERCENT
OF ENTERPRISES
However, as of April 2006, the level of companies’
engagement in business groupings/business
association was rather low. Only 27.7% of
companies are members of such groupings today
and 63% have never been members of such
associations.

5.0
Enterprise is a member of business
27.7 association

Enterprise is not a member of

business association, but was a
member previously
Enterprise has never been a
4.2 member of business association
63.0
I do not know

Source: Survey of 122 construction materials enterprises.

Large enterprises are engaged in business survey, 76.0% of large enterprises were
associations to a much greater degree than small members, compared to 19.5% of medium-sized
and medium enterprises. At the time of this enterprises and only 11.3% of small enterprises.
FIGURE 10-2. EXTENT OF PARTICIPATION OF ENTERPRISES OF DIFFERENT SIZES IN BUSINESS
ASSOCIATIONS AND GROUPINGS, PERCENT OF ENTERPRISES

Enterprise is a membe r of
busines s association
Large
76,0 4,0 16,0 4,0
enterpri s es Enterprise is not a mem ber of
busines s association, but was a
member previously
Me di um-si zed
19,5 7,3 70,7 2,4 Enterprise has never b een a
e nterpris es
member of business association

Sma ll I do not know

11,31,9 79,2 7,5
enterpri s es

Source: Survey of 122 construction materials enterprises.

Of companies that are members of various enterprises involved in them. Some 39.4% of the
business associations, participation in industry said enterprises participate in associations of
business associations prevails, with 63.6% of enterprises of various industries/activity types.

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TABLE 10-1. PARTICIPATION OF CONSTRUCTION MATERIALS ENTERPRISES IN INDUSTRY AND
INTER-INDUSTRY BUSINESS ASSOCIATIONS, PERCENT*
Type of association Percent of
enterprises
Industry business associations 63.6%
Association of enterprises of various industries/activity 39.4%
types
Source: Survey of 122 construction materials enterprises
*The sum total of percent exceeds 100%, as more than one answer option could be selected.

Companies that are members of business participate in city business associations, and only
associations mostly participate in national 15.6% are members of international business
business associations. Some 59.4% of associations. Notably, only large and medium-
enterprises that are members of associations, sized enterprises are members of international
belong to type. Some 28.1% of enterprises belong business associations.
to regional business associations, 21.9%
TABLE 10-2. PARTICIPATION OF CONSTRUCTION MATERIALS ENTERPRISES IN BUSINESS
ASSOCIATIONS OF DIFFERENT LEVELS, PERCENT*
Association level Percent of
enterprises
National business association 59.4
Regional business association 28.1
Local business association 21.9
International business association 15.6
SOURCE: SURVEY 122 CONSTRUCTION MATERIALS ENTERPRISES.
*The sum total of percent exceeds 100%, as several answer options could be selected.

Representatives of associations play an active - Association of Manufacturers of Polymer

role in discussing draft resolutions of local and
central government that regulate business.
The following associations are extant in Ukraine
today:
- Association of Cement Producers
- Association of Producers of Dry Building
Mixtures
- Association of Manufacturers, Exporters, and
Importers of Ceramic Products
- Ukrainian Association of Hard Concrete
Producers
- Ukrainian Association of Stone Exporters
- Ukrainian Association of Producers of
Nonmetal Construction Materials
Shapes
- Association of Manufacturers of Plastic Shapes
- Sklo Ukrayiny Association of Glass Industry
Enterprises
- Association of Manufacturers of Roofing and
Insulating Materials
- Association of Manufacturers and Builders of
Polymer Pipelines
- Association of Manufacturers of Transparent
Structures.
Not all of the above associations have public
representation or operate actively.

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 TABLE 10-3. ACTIVITY PROFILES OF CONSTRUCTION MATERIALS INDUSTRY ASSOCIATIONS
Association name Activities Members
UKRCEMENT Representation in working groups and committees of the The association is made up of 22 enterprises and organizations, including:
UKRAINIAN Verkhovna Rada, government ministries and - 12 cement plants, including a pilot cement plant in Kharkiv;
ASSOCIATION OF departments. - five repair enterprises;
CEMENT INDUSTRY Petitioning the Verkhovna Rada of Ukraine to increase - three design and research institutions, including one state institution (Ukrdicement); and
ENTERPRISES AND charging of expenditures for repair of cement - one state cement certification agency (Seprocem) based in Kharkiv.
ORGANIZATIONS enterprises’ main production assets to 15%-20%.
Reducing the base payment rate for use of subsoil
resources for extraction of minerals from Hr2 per ton to
Hr0.5 per ton.
Decision on preferential transportation tariffs and tax
preferences pursuant to the Law “On Waste.”
Use of cement in building highways.
Legislative monitoring.

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 Association name Activities
Ukrbudmaterialy The Ukrainian Construction Materials
Corporation (Ukrbudmaterialy) Corporation is a
domestic manufacturer of
construction materials. It unites 115
enterprises and organizations in such
main areas of the building industry as
ceramics, glass, walling, polymer, and
sanitary ware.
Ukrbudmaterialy activities consist in:
developing and implementing
program/projects for production of
construction materials and products to
satisfy the needs of both domestic
and foreign markets; addressing the
issues of socioeconomic development
of associations, organizations, and
enterprises that are its members;
creating a system to service them and
get them material supplies;
establishing direct links with suppliers
of raw materials and equipment;
setting directions for activities and
implementing purposeful foreign-
economic, scientific and
technological, investment, and pricing
policies in the industry; improving the
quality of industrial products;
increasing and improving the
technological level of production;
efficiently using production capacity;
introducing modern world technology;
advocacy on behalf of its member
associations, organizations, and
enterprises and their staffs.
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Members
Glass industry: Budsklo Ltd., Viknobud Ltd., Ukrfloat Ltd.Ceramic industry: CJSC Hlukhivetsky Mining and
Enrichment Kaolin Integrated Plant, CJSC Hlukhovetsky Kaolin Plant, OJSC Mukacheve Building Ceramics Plant,
CJSC Slavuta Budfarfor Integrated Plant, CJSC Dnipro Kaolin, Kharkivska Keramika Ltd., IntelGrup Corporation,
CJSC Ukrainian Kaolin Company.Walling materials and dry mixes industry: OJSC Budmaterialy, Vinnytsya; OJSC
Keramik, Vinnytsya; OJSC Ladyzhyn Lime-Sand Brick Plant; Konkord Ltd., village Severynivka; Zolochiv Brick
Plant Ltd.; OJSC Pustomyty Limestone Plant Authority; OJSC Sambir Building Ceramics Plant; OJSC Zhydachiv
Brick Plants Authority; Slokhynsky Brick Plant Ltd., OJSC Sylikat, village Stradch; OJSC Tavoriv Construction
Materials Plant Authority; OJSC Obukhiv Porous Concrete Plant; OJSC Budmaterialy, Bila Tserkva; KP
Pereyaslav-Khmelnytsky Brick Plant; CJSC Promin, Skvyrka; OJSC Dnipropetrovs’k Silicate Plant; OJSC
Novooleksandrivsky Brick Plant; OJSC Synelnykivska Teploizolyatsiya, KP Azovbudmaterialy Firm; OJSC
Zhytomyr Silicate Products Integrated Plant; OJSC Pryborzhvske Construction Materials Plant Authority; OJSC
Khust Construction Materials Plant; Bolekhiv Construction Materials Plan Ltd.; OJSC Budmaterialy, Ivano-
Frankivsk; CJSC Kolomyya Construction Materials Plant Authority; OJSC Kirovohrad Construction Materials Plant
No.1; OJSC Pilot Plant of Cellular Concrete and Products, Bilhorod-Dnistrovsky; OJSC Rivne Construction
Materials Plant; OJSC Zdolbuniv Construction Materials Plant, OJSC Lyubomyrsky Lime and Silicate Plant; CJSC
Slobozhanska Budivelna Keramika; Sylikatobeton Ltd., Sumy; OJSC Zboriv Construction Materials Plant Authority;
OJSC Pidvysotsky Construction Materials Plant; OJSC Keramik, Berezhany; OJSC Kherson Walling and Binding
Materials Integrated Plant; OJSC Podilski Tovtry, OJSC Gipsovyk, OJSC Cherkasybudmaterialy; CJSC Novhorod-
Siversky Construction Materials Plant, OJSC Chernihiv Brick Plant No.3; OJSC Chernivtsi Construction Materials
Plant No.1; OJSC Chernivtsi Brick Plant No.3; OJSC Mamalyhivske Construction Materials Plant Authority; OJSC
Kostryzhivsky Construction Materials Integrated Plant; JSC Nikstrom; Knauf-Gips-Kyiv Ltd., OJSC Irpin Peremoha
Integrated Plant; OJSC Kozlivsky Brick Plant; Luhansk Regional Self-accounting Production Association of
Construction Materials; OJSC Odesabudmaterialy; OJSC Rozvadivbudmaterialy; Rembudmaterialy State Repair
and Building Trust, Irpin; OJSC Keramik, Poltava; Fasad Ltd.; Mykhailivske Refractories Production Ltd.; Keramzyt
Ltd., Odesa; AKVALIT Ltd.; OJSC Zaporizhzhya Construction Material Integrated Plant; Henkel Bautechnik
(Ukraine) Ltd.; YUVENTA Ltd.Nonmetal construction materials industry: OJSC Yantsevsky Granite Quarry; CJSC
Kapustyansky Granit; CJSC Holovynsky Granit Quarry; CJSC Kornynsky Leopard Quarry; OJSC Zhzhelivsky
Quarry; Ukrgeolbudm State Comprehensive Geological Expedition; OJSC Mukacheve Quarry; OJSC Berezivsky
Quatty; CJSC Berehivsky Quarry; OJSC Bohuslavsky Quarry; OJSC Oleksandrivsky Granite Quarry; OJSC
Pervomaisky Granit Quarry; OJSC Malobuzukivsky Quarry; SE Donetskvybukhprom; CJSC
Zakhidukrvybukhprom; Krymvybukhprom State Drilling and Blasting Operations Enterprise; JSC Holovynsky
Granit Quarry; OJSC Ushytsky Construction Materials Integrated Plant.Roofing, polymer, and sanitary materials
industry: VKP Chernivtsi Heat-insulating Materials Plant Ltd.; Bazaltovi Tekhnologiyi Ltd.; OJSC Izolyatsiya;
Normaizol Ltd.; Ukrayinska Teploizolyatsiya Ltd.; OJSC Verkhnyodniprovsky Pig Iron Casting Plant named after
st
the 1 of May; CJSC Luhansk Foundry and Mechanical Plant; OJSC Simferopol Santekhprom Mechanical Plant.
167
 Association name Activities Members
Ukrainian Association Promoting development dry building mixtures production. Bion-Impaks Ltd. (Sim Gnomiv TM); Kharkiv Building Mixtures Plant (TOKAN TM);
of Dry Building Providing technical, technological, and legislative support. Helios Research and Production Enterprise (Ferozyt TM); Henkel Bautechnik
Mixtures Producers Gathering and disseminating information required by Association Ukraine (Ceresit, Thomsit, Moment, Metylan TM); Thomsit, Moment, Metylan); OJSC
members, and many other things. Pavlohradzhytlobud (Budmaister TM); Fomalhaut Ltd. (Polimin TM); POLIREM
Company (POLIREM TM); ARTIL Ltd. (Artisan TM).
Association of Main activities include: Honorary Members of the Association:
Manufacturers, 1. technological and production issues: energy, ecology, quality, PTK Agromat Ltd.
Exporters, and standards, certification, etc.; SE PTK Agromat Ltd.
Importers of Ceramic 2. foreign and domestic trade: market research, customs barriers, Ukrainian Chamber of Commerce and Industry
Products databases, consulting, etc.; Pharaohs Group
3. foreign-trade support: exhibitions, fairs, commercial delegations,
international advertising, etc.; Association Members:
4. information and communication: control over information and its Artizana; Cerrad; Dvarcioniu Keramika; Euro Ceramics; Grindingfloor; Inax
dissemination, documentation; press relations; Corporation; Italceramica; Kerasol; L&B Ambiente; Sanitec Group (Kolo); Tangshan
5. economic research: statistics, reporting, industry economic Huida Ceramic Gruop Co; Zeus Keramik; Agromat-Dnipro Ltd; Amiko-Kermika Ltd.;
policy; information technology and the Internet, etc.. Amiko-Keramika TD; ASE Ltd.; Atem Ltd.; Bareks Ltd.; Budkeramika Ltd.; Horelyi
ChP; Dona Ltd.; Evrobudmarket PKChP; Evrotrade Ltd.; Karmen-Krym Ltd.;
The Association offers a wide range of professional services to its Minimaksi Ltd.; Mukhar ChP; Nadiya-Trade Ltd.; Opal Keramika; Pavlid Ltd.; CJSC
members: Pisatrella-K; Riom Ltd.; Santekhtorh ChP; Slovgres Ltd.; Tehnogres Ltd.; TKG
1. Dissemination of best Ukrainian and international experience in Formag Ltd.; CJSC Kharkiv Tile Plant; YUSI-grupp ChP
the ceramics production and trade; promoting development and
introduction of innovative technology; engagement of the leading
Ukrainian and international specialists for development and
implementation of programs in the area of manufacturing and trade;
2. Implementing marketing research, providing analytical and
advertising services;
3. Representation and advocacy of rights and interests of
Association members on the issues of economic activity in their
relations with state authorities and local self-government in Ukraine
and beyond; providing support in conducting trade and economic
transactions;
4. Assisting Association members in partner searches, including
abroad; establishment and development of international foreign-
trade relations; export of Ukrainian goods and services;
5. Organizing and conducting conferences, exhibitions, seminars,
business negotiations, and other events on economic and other
entrepreneurial issues, with participation of representatives of
Ukrainian and foreign enterprises (organizations and institutions);
promoting the participation of Ukrainian enterprises in international
fairs, exhibitions, and other events organized abroad;
6. Arranging for and assisting in certification of products of
Association members.

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 Association name Activities Members
Association of The Association is intended to consolidate the manufacturers of KVIN-SVIG Ltd., Kyiv; FASTKO Ltd., Kyiv; Lvivviknoplast Manufacturing and Trade
Manufacturers of transparent structures and products (windows, façade systems, Enterprise, Lviv; TEKKO PLUS Ltd., Kyiv; CJSC EVROVIKNOBUD, Kyiv; CJSC
Transparent stained glass, partitions, nymphaeums, doors, etc.) that are ENRAN, Kyiv; KRUH Ltd., Cherkasy; Vikonni Tekhnologiyi scientific and
Structures operating on Ukraine’s market. technological journal, Kyiv.
The Association’s main goal is to consolidate members’ efforts to
protect their rights and interests, as well as promote development
of activities of domestic manufacturers of transparent structures
and products, shapes and set-making items. It provides legal,
information, technical, methodological, and marketing assistance,
plus support in resolving various issues with government
authorities.

The Association’s immediate plans include creating an authoritative

body for expert examination of product quality. Subsequently, one
of the conditions for being accepted as Association member will be
obtaining an expert conclusion on product quality. This body’s data
will be used to prepare a directory called “Manufacturers of Quality
Transparent Structures and Accessories.” The Association strives
to make the customer absolutely certain that the windows
manufactured by Association members are always of excellent
quality. Also, Association members will subsequently have the right
to use a special sign testifying to their affiliation with the
Association of Ukrainian Manufacturers of Transparent Structures
and attesting to product quality.
Association of The Association is preparing a special investigation regarding the Petroplast Ltd., JV with II Venta Ukrayina Ltd.; Leks Ltd.; JV Tornado-shar Ltd.;
Manufacturers of massive imports of window PVC shapes in Ukraine. There is the Obltorhservis Ltd.; Plastar Ltd., and others.
Polymer Shapes chance of launching an antidumping investigation with regard to
PVC glazing units originating in Turkey and China. Also, the
Association has initiated development of a draft law “On Amending
the Law of Ukraine ‘On Customs Tariffs’” to reduce the customs
duty on PVC resin. The legislative draft is currently undergoing
feasibility study.

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 Association name Activities
Sklo Ukrayiny The main objectives of the Sklo Ukrayiny Association
Association of Glass include:
Industry Enterprises - establishing and developing professional informational
links among enterprises related to the glass industry,
through their participation in common events;
- improving the manufacturing practices required for
development of the domestic glass industry;
- raising the professional level of specialists, organizing
events for improving the training level of glass industry
professionals;
- introducing research programs into the work plans of
respective academic departments aimed at studying
manufacturing and technological problems in the glass
industry on a competitive basis;
- organizing independently, or in collaboration with other
organizations, development programs the glass industry,
submitting the developed suggestions to the relevant state
agencies, and participating in preparing normative-legal
documents;
- providing assistance in developing and implementing
investment projects.
Association of The Association publishes the journal Inzhnerni Merezhi z
Manufacturers and Polimernykh Materialiv (Polymer Materials Networks). It is a
Builders of Polymer partner in the Pipeline Transport exhibition. The
Pipelines Association’s mission is to provide comprehensive support
to the Ukrainian polymer pipe systems market, starting with
their manufacture and ending with their entering into
operation.
Association of The Association’s mission is advocacy of members’
Producers of interests at government institutions, developing public
Nonmetal relations, and fostering production specialization and
Construction cooperation.
Materials
Prepared by BIZPRO
Members
The Association’s present membership consists of the following enterprises:
- OJSC Hostomel Glass Plant; - CJSC Kostopil Glass Products Plant; - CJSC
Konsyumers-Sklo-Zorya; - Buchach Glass Containers Plant Ltd.; - OJSC Kyiv Glass
Containers Plant; - OJSC Scientific and Research Institute of Special Casting Techniques;
- PE Snok Ltd.; - Altis-Glass Enterprises with Foreign Investments; - TD Tehkhnoluch Ltd.;
- Courses for Improving Qualifications of Glass Industry Specialists of I-IV Levels Ltd.;
- Stekloplast Ltd.; - Maister-Sklo Ltd.; - Servis Ltd.; - OJSC Rokytne Glass Plant; - OJSC
Biomedsklo; - Glass Furnaces Firm; - Vilnohirske Sklo Ltd.; - OJSC Poltava Medical Glass
Plant; - OJSC Krasmoarmiysk Silica Plant; - Technological Institute of Glass and Porcelain
Ltd.; - Pevdendiprobudm State Institute for Design of Construction Materials Industry
Enterprises; - Risan Ltd.; - NVP MAK Ltd.; - Buchach Glass Products Plant Ltd.; -
Simferopol Glass Containers Plant Ltd.; - TAURUS Industrial Group Ltd.; - South Ukrainian
Glass Company Ltd.; - CJSC OSK REZERV; - OJSC Maryanivsky Glass Plant;
- OJSC Romanivsky Glass Plant; - JV Sklo-Forma Ltd.; - Merkan Ltd.; - OJSC Berezhany
Glass Plant; - Huta Ltd.; - NPVC ARMKO; - PKF Dekor Ltd.; - PPKF Lysk; - Artemivsk
Glass Products Plant Ltd.; - OJSC Energetychnyi Alyans; - Orion-Glass Ltd.; -
Yevrosmazki Ltd.; - Lviv National Academy of Arts; - F.O.R.T.E.srl (Italy)”; - CJSC
Ukrskloprom; - SE Stryi Glass Plant TPK PIRS Ltd.; - RIA Marko-Pak.
The Association unites enterprises involved in manufacturing and building of pipelines and
other networks:
Elplast, Lviv; Evrotrubplast; RKKhZ Zorya; Ukrpolimerkonstruktsiya, IPO Plastmas, and
others.
-
170
APPENDICES
TABLE 1. RANGE OF PRODUCT TYPES IN SUBSECTORS OF THE CONSTRUCTION MATERIALS SECTOR SINCE 2004 (AS PER OFFICIAL STATISTICAL
CLASSIFIER)
STONE AND 14.11.11.300A Marble and travertine, thousand m3
PRODUCTS 14.11.11.500A Limestone, plaster stone and limestone alabaster, thousand m3
14.11.12.300A Granite, thousand m3
14.11.12.500A Sandstone, thousand m3
14.11.12.900A Tuff, basalt, porphyry and other undressed stone, coarsely dressed or sawn into blocks and slabs, thousand m3
14.21.12A Pebbles, gravel, crushed rock and stone, thousand m3
26.70.11A Hewn or otherwise formed marble, travertine, alabaster products, thousand m2
26.70.12A Other stone products, thousand m2
26.82.14 Artificial graphite; colloidal or semi-colloidal graphite; graphite-based products, tons
26.82.15 Manufactured corundum, tons
26.82.16.200A Delaminated vermiculite, expanded clay, foam slag, and expanded mineral products (including mixtures), thousand m3
26.82.16.700 Non-electrical articles made of graphite or other carbon materials, tons
14.21.12A Pebbles, gravel, crushed rock and crushed stone, thousand m3
RAW 14.12.10.300 Plaster and anhydrite (natural or synthetic), thousand tons
MATERIALS: 14.12.10.500 Limestone (except crushed limestone filler and limestone cut to measure), thousand tons
PLASTER, 14.12.20.100 Chalk, thousand tons
LIMESTONE, 14.12.20.300 Uncalcined dolomite (except crushed dolomite filler), thousand tons
CHALK, 14.12.20.500 Calcined and fired dolomite, thousand tons
DOLOMITE, 14.12.20.700 Agglomerated dolomite (including petrolized dolomite), thousand tons
SAND, 14.21.10A Building sand, pebbles, gravel, and crushed rock, thousand m3
KAOLIN, 14.21.11.900A Other building sands (except metalliferous sand), thousand m3
CLAY, 14.21.11A Natural sand, thousand m3
BITUMEN, 14.21.13A Building slag, thousand m3
ASPHALT, 14.22.11 Kaolin and kaolin clay, tons
ETC.
14.22.12 Other clays, andalusite, kyanite, fibrolite, mulite, chamotte or silica earths, thousand tons
14.30.13 Other natural minerals for chemical industry, tons
14.40.10.000 Salt and sodium chloride pure, tons
14.50.10.000 Natural bitumen and asphalt, asphaltites and asphalt rock, tons
14.50.23 Natural minerals, not otherwise categorized, tons
26.53.10 Plaster mixtures, thousand tons

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 WOOD 20.10.10.770 Bars, planking, and borders for parquetry or wood flooring, planed, unassembled, made of oak (except for shaped), thousand
PRODUCTS m2
20.10.21.550 Hardwood parquet, thousand m2
20.20.12 Veneered wood panels, m3
20.20.21.100 Veneer, plywood sheets, other wood, cut parallel to the grain, 6 mm or less thick; pencil slats, m3
20.20.21.101 Peeled veneer, m3
20.20.21.102A Planed veneer, thousand m2
20.30.11A Windows, doors, their frames and sills made of wood, thousand m2
20.30.12.100 Panel wood parquet, thousand m2
PAINTS AND 24.30.1 Polymer-based paints and varnishes, tons
VARNISHES 24.30.21 Ready-mixed paints and vitreous mixes, tons
24.30.22 Ready-mixed paints and varnishes, siccatives, tons
RUBBER AND 25.13.30 Rubber tubes and pipes, hoses and sleeves, except ebonite, kg
PLASTICS 25.21.21.500 Rigid pipes, tubes, hoses, and coupling parts made of polymers of ethylene, propylene, vinylchloride, and other plastics, kg
PRODUCTS 25.21.22 Other pipes, rubes, sleeves, hoses, and coupling parts made of plastics, kg
25.23.12.500 Plastic baths, sinks, and basins, thousand units
25.23.12.900 Plastic bidets, toilet bowls, and other sanitary ware not otherwise categorized, thousand units
25.23.14 Doors and sills for them, windows, frames, panes, shutters, similar products and their parts made of plastics, kg
GLASS AND 26.11.11 Cast, rolled, blown or drawn glass, plate or profiled, not otherwise processed, thousand m2
GLASS 26.11.12 Float glass and ground or polished glass in sheets, not otherwise processed, thousand m2
PRODUCTS 26.12.11 Bend plate glass, cut glass, engraved, drilled, enameled or otherwise processed glass, however, unframed or unmounted,
thousand m2
26.12.12 Safety glass (non-splitting glass), thousand m2
26.12.13.300 Laminated insulating glass products, thousand m2
26.12.13.500 Glass rearview mirrors for vehicles, framed or unframed, thousand pieces
26.12.13.900 Other glass mirrors, framed or unframed, thousand tons
26.14.11 Glass fiber band, roving, yarn, and staple glass fiber, tons
26.14.12A Fabrics (veils), thin meshing, web, matting, mattresses, panels, and other glass fiber products, except glass cloth, thousand
m2
26.15.11 Bulk glass balls (except micro spheres), rods, and pipes, tons
26.15.12A Paving blocks, bricks, tiles, and other pressed or molded glass products, stained glass and similar products, laminated glass
or foam glass in blocks, slabs or similar forms, thousand m2

Prepared by BIZPRO 172

 CERAMICS 26.22.10 Ceramic sanitary ware, thousand units
AND 26.23.10 Ceramic insulators and insulating fixtures
PRODUCTS, 26.26.11 Bricks, blocks, tiles, and other ceramic refractory products (including slabs, panels, cavity bricks, cylinders, pipes) made of
BRICKS, siliceous stone powder or dolomite earth, thousand tons
WALLING 26.26.12 Ceramic refractory bricks, blocks, tiles, and other similar building refractory materials, except materials made of siliceous stone
MATERIALS, powder or dolomite earth, thousand tons
ETC. 26.26.13 Refractory cement, building mortar, concrete, and similar mixes, not otherwise categorized, thousand tons
26.26.14 Other non-fired refractory products; commercial-grade refractory products, not otherwise categorized, thousand tons
26.30.10 Ceramic slabs and tiles, thousand m2
26.40.11.100A Non-refractory ceramic building bricks, million equivalent units
26.40.11.130A Ceramic bricks and blocks for common brickwork, finished articles, perforated or solid, for walls with external plastering or
external finishing, million equivalent units
26.40.11.150A Ceramic finishing bricks, finished articles, perforated or solid, for use without external plastering, million equivalent units
26.40.11.170A Ceramic bricks for paving (paving clinker); finished flooring and road paving products, million equivalent units
26.40.11.300A Ceramic non-refractory flooring blocks, load-bearing blocks, filling blocks, and similar products, million equivalent bricks
26.40.12.500A Non-refractory ceramic roofing tiles; finished products for solid roof slope covering, thousand m2 of covered area
26.40.12.700 Other non-refractory ceramic building products, including deflectors, bricks for chimneys, caps for chimneys, architectural
decorations, fan grills, thousand tons
26.40.13 Ceramic pipes, pipelines, water removal lines, drainage piping, ducts and connecting pieces for pipes, thousand tons
26.51.11 Cement clinker, thousand tons
26.60.10 Wall building materials, million equivalent bricks
26.61.11.300A Building blocks and bricks made of cement, artificial stone or concrete, million equivalent units
26.61.11.500A Tiles, slabs, roofing tiles, and similar cement, concrete or artificial stone products, thousand m2
26.61.12A Prefabricated structural components for housing or civil construction, made of cement, concrete or artificial stone, thousand m3
26.61.13A Cement, concrete or artificial stone pipes, thousand m3
26.62.10 Plaster products for housing or civil construction, thousand m2
26.63.10 Ready-mixed concrete, thousand tons
26.64.10 Building mortar and concrete, except ready-mixed concrete, thousand tons
26.65.11 Panels, plates, blocks, and similar products made of plant fibers or wood waste, agglomerates with mineral binders, thousand
m2
26.65.12.500A Pipes, sleeves, and connecting parts made of asbestos cement, cellulose fibrolite and similar materials, km of equivalent pipes
26.66.11 Plaster or plaster mix products based on building plaster, not otherwise categorized, tons
26.81.12.300 Natural powders or artificial abrasives or grain on textile base, thousand m2
26.81.12.500 Natural powders or artificial abrasives or grain on paper or cardboard base, thousand m2
26.81.12.900 Natural powders or artificial abrasives or grain on basis of other materials, thousand m2
26.82.11 Treated asbestos fibers; asbestos-based mixtures; products based on such mixtures; friction material for brakes, clutches, and
similar articles, unassembled, tons
26.82.13 Bituminous mixtures based on natural asphalt, petroleum asphalt, mineral tar or mineral pitch, thousand tons

Prepared by BIZPRO 173

 CEMENT, 26.51.12 Cement, thousand tons
LIME, MIXES 26.52.10 Lime, thousand tons
ROOFING 26.65.12.300A Corrugated boards, asbestos boards and similar asbestos cement products, cellulose fibrolite and similar materials, million
MATERIALS equivalent boards
INSULATION 26.82.16.100A Slag wool, silicate mineral wool, and similar mineral wools (including blends) in blocks, sheets or rolls, thousand m3
26.82.16.300A Blends and products made of heat-insulating or sound-proofing materials, not otherwise categorized, thousand m3
26.82.16.500 Treated mica and mica products, thousand tons
TABLE 2. RANGE OF PRODUCT TYPES INCLUDED IN SUBSECTORS OF THE CONSTRUCTION MATERIALS SECTOR BEFORE 2004 (AS PER OFFICIAL
STATISTICAL CLASSIFIER)
STONE AND -
PRODUCTS
RAW 705021 PLASTER STONE, THOUSAND TONS
MATERIALS; 705041 PLASTER, THOUSAND TONS
PLASTER, 705053 CASING PLASTER, THOUSAND TONS
LIMESTONE, 705054 MEDICAL-GRADE PLASTER, THOUSAND TONS
CHALK, 705071 RAW GROUND PLASTER FOR SOIL GYPSUMING, THOUSAND TONS
DOLOMITE, 705081 OTHER LOCAL BINDING MATERIALS, THOUSAND TONS
SAND,
KAOLIN,
CLAY,
BITUMEN,
ASPHALT,
ETC.
WOOD 671001 LUMBER, THOUSAND M3
PRODUCTS 671033 BIRCH AND SOFTWOOD LUMBER, THOUSAND M3
671244 MINE LAGGING, THOUSAND M3
672101 GLUED PLYWOOD (INCLUDING BENT GLUED PARTS, FURNITURE BACKS AND SEATS), M3
672201 PEELED VENEER, M3
672241 PLANED VENEER, THOUSAND M2
673051 GLUED WOOD STRUCTURES, THOUSAND M3
673120 KITS OF WOOD PARTS FOR HOUSES WITH WALLING MADE OF LOCAL BUILDING MATERIALS AND PRODUCTS FOR
HOUSE-BUILDING, THOUSAND M2 OF TOTAL AREA
674441 FIBER BOARDS, THOUSAND M2
674481 PARTICLE BOARDS, M3
673711 PARQUET, THOUSAND M2
WINDOWS 673130 WINDOW AND DOOR ASSEMBLIES, THOUSAND M2
AND DOORS

Prepared by BIZPRO 174

 RUBBER 612251 PIPES AND PARTS OF PIPELINES MADE OF THERMOPLASTICS, TONS
AND 612253 PIPES AND PARTS OF PIPELINES MADE OF THERMOPLASTICS, KM
PLASTICS 614701 GLASS-REINFORCED PLASTICS AND PRODUCTS, TOTAL, TONS
PRODUCTS 614755 PHENOLIC PRESS MATERIALS, TONS
614757 GLASS-REINFORCED PIPES AND PIPELINE PARTS, TONS
614758 GLASS-REINFORCED PIPES AND PIPELINE PARTS, M
614759 LARGE-SIZE GLASS-REINFORCED PLASTICS PRODUCTS, TONS
614761 GLASS-FILLED THERMOPLASTICS, TONS
GLASS AND 730011 BUILDING GLASS, THOUSAND M2 IN PHYSICAL VOLUME
GLASS 731004 BUILDING GLASS, THOUSAND M2 IN EQUIVALENT VOLUME (2 MM)
PRODUCTS 731081 GLAZED UNITS, THOUSAND M2
731083 WIRED GLASS, THOUSAND M2
731085 CATHEDRAL GLASS, THOUSAND M2
731095 ARCHITECTURAL GLASS, THOUSAND M2
731097 CAVITY GLASS BLOCKS, THOUSAND EQUIVALENT BLOCKS
731098 CAVITY GLASS BLOCKS, THOUSAND M2 IN 2 MM EQUIVALENT
732211 POLISHED DOOR GLASS PLATES, THOUSAND M2
614791 CONTINUOUS GLASS FIBER, TONS
614795 GLASS FABRIC (GLASS MATTING), TOTAL, THOUSAND M2

Prepared by BIZPRO 175

 PAINTS AND 620900 VARNISH AND PAINT MATERIALS, TOTAL, TONS
VARNISHES 622101 CONDENSATION RESIN VARNISHES, TONS
622111 ENAMELS, PRIMERS, AND FILLERS BASED ON CONDENSATION RESINS, TONS
622121 VARNISHES, ENAMELS, PRIMERS, AND FILLERS BASED ON POLYMERIZATION RESINS, TONS
622131 VARNISHES, ENAMELS, PRIMERS, AND FILLERS BASED ON CELLULOSE ESTER, TONS
622151 SOLVENTS AND REMOVERS FOR VARNISH AND PAINT MATERIALS, TOTAL, TONS
622213 ALCOHOLIC VARNISHES AND ALCOHOL-DILUTED LACQUERS, TONS
622600 WATER PAINTS, TONS
622700 HEAVY-BODIED OIL PAINTS, TONS
623000 DRYING OIL, TOTAL, TONS
623100 NATURAL DRYING OIL, TONS
623200 COMBINATION DRYING OIL, TONS
623300 OKSOL DRYING OIL, TONS
624381 LIGHT-BODIED OIL PAINT, TONS
624383 POWDER PAINT, TONS
624401 WHITE PIGMENT, TOTAL, TONS
624422 TITANIUM DIOXIDE PIGMENT, TONS
624462 ZINC WHITE, TONS
624571 READ LEAD PAINT, TONS
624682 FERRIOXIDE RED PIGMENT, TONS
624683 FERRIOXIDE YELLOW PIGMENT, TONS
626290 TURPENTINE, TOTAL, TONS

Prepared by BIZPRO 176

 CERAMICS 705901 WALLING MATERIALS (EXCEPT WALLING REINFORCED-CONCRETE PANELS), MILLION EQUIVALENT BRICKS
AND 707132 FACING BRICKS, MILLION EQUIVALENT BRICKS
PRODUCTS, 707200 LIME-SAND AND SLAG BRICKS, MILLION EQUIVALENT BRICKS
BRICKS, 708021 NATURAL STONE WALL BLOCS, MILLION EQUIVALENT BRICKS
WALL 708031 SMALL WALLING BLOCKS (EXCEPT POROUS CONCRETE BLOCKS), MILLION EQUIVALENT BRICKS
MATERIALS, 708041 LARGE-SIZE CONCRETE AND LIME-SAND BLOCKS (INCLUDING CONCRETE BLOCKS FOR FOUNDATION WALLS)
OTHER MILLION EQUIVALENT BRICKS
708071 SMALL WALL BLOCKS MADE OF POROUS CONCRETE, MILLION EQUIVALENT BRICKS
708211 ROOFING TILES, THOUSAND M2 OF ROOFING AREA
711001 PRECAST REINFORCED CONCRETE STRUCTURES AND PRODUCTS, THOUSAND M3
711123 REINFORCED CONCRETE TIES, THOUSAND M3
711125 REINFORCED CONCRETE POLES FOR POWER AND TELECOMS TRANSMISSION LINES; RAILROAD CONTACT
SYSTEM AND LIGHTING SYSTEM COMPONENTS, THOUSAND M3
711127 REINFORCED CONCRETE SECTIONS AND TUBING FOR TUNNELS AND MINE SUPPORTS, THOUSAND M3
711129 WALL PANELS, THOUSAND M3
711136 REINFORCED CONCRETE PIPES, THOUSAND M3
711188 PANELS AND OTHER STRUCTURES FOR LARGE-PANEL BUILDING, THOUSAND M2 OF TOTAL AREA
711190 HEAT-RESISTANT CONCRETE PREFABRICATED STRUCTURES AND PRODUCTS, THOUSAND M3
711220 NON-REINFORCED CONCRETE PRODUCTS, THOUSAND M3
712101 GYPSUM PLASTERBOARDS, THOUSAND M2 (EQUIVALENT THICKNESS OF 10 MM)
712201 PARTITION PLASTERBOARDS AND PANELS, THOUSAND M2
712208 DRY PLASTER MIXES FOR PLASTERING WORK, TONS
712211 PERFORATED, SOUNDPROOFING PLASTER PLATES, THOUSAND M2
715001 GLAZED CERAMIC TILES FOR INTERIOR WALLS WITH PROFILED PARTS, THOUSAND M2
715005 GLAZED CERAMIC TILES FOR INTERIOR WALLS, COLOR, GLAZED, THOUSAND M2
715121 CERAMIC FLOOR TILES, THOUSAND M2
715126 LARGE-SIZED FLOOR CERAMIC TILES (FACE LENGTH 150 MM AND MORE), THOUSAND M2
715131 MULTICOLOR CERAMIC FAÇADE TILES, THOUSAND M2
715141 CERAMIC SEWER PIPES, EQUIVALENT KM, 200 MM DIAMETER

Prepared by BIZPRO 177

 CEMENT, 702000 CEMENT, THOUSAND TONS
LIME, MIXES 702111 SLAG PORTLAND CEMENT, THOUSAND TONS, TOTAL
703110 PORTLAND CEMENT (WITHOUT ADDITIVES), THOUSAND TONS
703130 PORTLAND CEMENT FOR MAKING ASBESTOS CEMENT PRODUCTS, THOUSAND TONS
703140 SULFATE-RESISTANT PORTLAND CEMENT ( INCLUDING THAT WITH BARIUM), THOUSAND TONS
703150 PORTLAND CEMENT WITH MINERAL ADDITIVES, THOUSAND TONS
703160 RAPID-HARDENING PORTLAND CEMENT, THOUSAND TONS
703170 ROAD PORTLAND CEMENT, THOUSAND TONS
703240 COMMON SLAG PORTLAND CEMENT, THOUSAND TONS
703250 SULFATE-RESISTANT SLAG PORTLAND CEMENT, THOUSAND TONS
703320 DECORATIVE CEMENT, THOUSAND TONS
703330 ALUMINA CEMENT, THOUSAND TONS
703340 EXPANDING CEMENT, THOUSAND TONS
703360 OIL-WELL CEMENT, THOUSAND TONS
703490 OTHER CEMENT TYPES (FOR CASTING OF CONCRETE WITHOUT FORMS, ETC.), THOUSAND TONS
703500 CALIBRATED CEMENT, THOUSAND TONS
705001 BUILDING LIME, THOUSAND TONS
705011 PRODUCTION LIME, THOUSAND TONS
705121 GROUND LIMESTONE AND DOLOMITE FOR LIMING ACIDIC SOILS, THOUSAND TONS
716131 LIMESTONE SILICEOUS PRODUCTS, M3

Prepared by BIZPRO 178

 TABLE 3. DYNAMICS OF EXPORT SALES OF NONMETAL CONSTRUCTION MATERIALS IN 2000-2005, $ THOUSAND
2000 2001 2002 2003 2004 2005
3205000000 Color paint varnishes; preparations indicated in Note 3 to 39.9 58.4 78.9 75,0 14,2 6,9
this group and made of these varnishes

3206000000 Other colors; preparations indicated in Note 3 to this group 88507.6 98926.0 68825.8 94264,4 135265,2 167245,0
and different than the materials of product items 3203, 3204
or 3205; inorganic substances of grades used as
luminophors with clearly determined or undetermined
chemical composition
3207000000 Ready pigments, opacifiers and dyes, glassy enamels and 1592.4 2185.7 2062.7 2635,4 3378,1 3574,5
glaze, engobes (clip), liquid glossing agents and similar
preparations of the grades used for production of ceramic,
enamel and glass products; glaze frit, etc.
3208000000 Paints and varnishes (including enamels and polishes) 9966.4 9135.0 5364.6 7672,6 9702,5 10472,4
based on synthetic polymers or chemical modified natural
polymers, dispersed or dissolved in nonaqueous solutions;
solutions specified in Note 4 to this group:
3209000000 Paints and varnishes (including enamels and polishes) 108.6 228.8 228.7 503,6 845,2 1293,0
based on synthetic polymers or chemical modified natural
polymers dispersed or dissolved in aqueous solutions:

3212000000 Pigments (including metal powders and metal flakes) 94.5 71.7 61.9 738,8 603,5 274,7
dispersed in nonaqueous solutions, in the liquid, paste or
stiff mass form, of the grades used for production of paints
(including enamels); stamping foil; painting means
3214000000 Glazing putty, grafting clay, pitch cement, putty (for sealing) 349.2 1949.2 2081.8 2107,4 1692,5 1958,2
and other mastics; filler for paintwork, non-fireproof mixes
for preparing surfaces of façades, internal walls of buildings,
floor, ceiling, etc.:

3917000000 Pipes, tubes and hoses and their fitting parts (e.g., couplers, 3023.7 10240.9 12188.3 25740,9 43855,4 71273,2
bends, sleeves) made of plastics:

Prepared by BIZPRO 179

3918000000 Plastic flooring, self-adhesive or non-self-adhesive, in rolls 6.5 44.8 720.1 4041,0 6471,8 7637,0
or sheets; plastics covering for walls or ceilings as specified
in Note 9 to this group:

3919000000 Boards, sheets, strips, bands, film, and other flat plastics 1355.7 2144.2 22128.9 351,9 610,5 1488,4
products, self-adhesive, in rolls or otherwise:
3920000000 Other boards, sheets, film, band, and plates made of 10050.5 10214.6 13485.8 12335,9 18942,2 21870,3
plastics, non-porous, non-strengthened and non-laminated
(not multilayered), not combined with other materials,
without base, and not otherwise connected with other
materials:

3921000000 Other plates, sheets, film, and bands made of plastics: 5878.1 5945.0 3969.8 7140,4 14105,8 27524,1

3922000000 Baths, showers, sinks, bidets, toilet bowls and their seats 138.0 152.6 206.0 318,2 518,5 690,5
and covers, flushing tanks, and similar sanitary-hygienical
products made of plastics:
4008000000 Plates, sheets, bands, rods, and shapes made of uncured 1098.5 9965.2 7870.8 1596,7 852,1 2431,9
vulcanite:
4009000000 Pipes, hoses, and sleeves made of uncured vulcanite, with 1095.3 1411.3 1894.1 3364,5 4969,0 6369,4
or without fittings (e.g., gaskets, bends, couplings)

4400000000 Wood and woods products, charcoal 217435.2 229796.5 289638.0 400368,3 516459,6 533853,0

4401000000 Firewood in the form of logs, billets, brushwood, branches, 1228.1 540.7 304.8 4183,3 5184,6 10488,7
etc.; wood chips or shavings; sawdust, chips, shavings,
wood fragments, waste, and scrap agglomerated or non-
agglomerated, in the form of billets, bricks, pellets, etc.:

4403000000 Unprocessed lumber, disbarked or non-disbarked, coarsely 70178.0 56124.3 65610.2 88239,1 130208,8 136891,1
squared or unsquared:

Prepared by BIZPRO 180

4404000000 Cooper’s wood; split logs; wood stakes and pales, pointed 72.7 80.8 219.6 187,7 208,9 258,8
but not length cut; squared or rounded wood, but not turned,
bent or otherwise processed, used for manufacturing
walking canes and umbrellas
4407000000 Sawn or length planed lumber, split or peeled, dressed or 113868.4 125972.8 160817.1 213847,7 248013,0 230975,3
undressed, polished or unpolished, tongue-joined or not,
more than 6 mm thick:

4408000000 Sheets of single-layer plywood and veneers, and sheets for 3219.7 4842.0 7581.9 13481,7 20748,8 26959,1
glued plywood (glued or otherwise) and other types of wood
length-cut, sawn into parts or peeled, planed or non-planed,
with polished or unpolished surface, joined or unjoined

4409000000 Wood, plank timber (including unassembled parquet boards 3324.3 4191.8 7146.0 8331,4 10647,8 9628,2
and borders) as molded strips (with feathers, grooves,
matched, with chamfered edges, beading fillet joined,
shaped, rounded, etc)
4410000000 Particle boards and similar boards made of wood or other 3726.5 8283.0 10711.1 14910,2 24815,3 29128,6
wood-like materials, agglomerated or not agglomerated,
using resins or other organic binders:

4411000000 Fiber boards made of wood or other wood-like materials, 1289.9 1810.2 2251.4 2857,2 4046,9 3201,2
agglomerated or not agglomerated, using resins or other
organic binders:

4412000000 Glued plywood, veneered wood panels and similar materials 11458.0 15700.6 19154.9 24516,5 33398,8 39858,4
of layered wood

4413000000 Wood pressed as blocks, slabs, bars or shapes 910.0 663.4 520.7 412,1 260,4 275,6

4418000000 Joinery and carpentry products, building parts, including 1081.6 2426.0 3121.4 9786,5 12860,1 16469,8
porous wood panels, assembled parquet panels, roofing
shingles and batten:
4418100000 - windows, balcony doors, their frames, and finish casings: 72.6 330.6 433.2 1083,8 2890,4 4168,3

4418200000 - doors and their frames, platband, and thresholds: 312.2 227.4 237.8 331,4 554,9 652,1

Prepared by BIZPRO 181

4418300000 - panel parquet: 188.5 436.3 630.8 4621,8 3230,4 3578,5
4418400000 - concrete boxing 48.5 144.9 37.0 0,0 0,0 36,2
4418500000 - roofing shingles and batten 19.4 5.6 9.1 98,4 107,9 94,9
4418900000- other: 440.4 1281.2 1773.5 3651,1 6076,5 7939,8
6800000000 Products made of stone, plaster, cement, asbestos, mica or 26018.7 35245.6 35792.9 50155,8 56718,5 73421,5
similar materials
6801000000 Paving blocks, border stone and paving slabs made of 660.3 978.5 1463.0 1627,9 1338,2 1954,9
natural stone (except shale)
6802000000 Dressed stone (except shale) for monuments or for building, 5902.5 6084.9 5721.9 8693,0 8934,6 13513,1
and products made of such stone, except for the products
under product item 6801; mosaic cubes and similar
products made of natural stone (including shale), with or
without base; pellets

6803000000 Processed shale and products made of shale or

agglomerated shale:
6806000000 Slag wool, mineral silicate wool, and similar mineral wools; 1182.1 1415.8 804.5 1731,5 2152,4 5386,4
layered vermiculite, expanded clays, foam slag, and similar
expanded mineral products; mixtures and products made of
heat-insulating or sound-proofing materials, except products
of commodity items
6807000000 Products made of asphalt or similar materials (e.g., 237.4 317.6 524.3 1183,4 1316,8 1961,1
petroleum bitumen or coal-tar pitch):
6808000000 Panels, slabs, tiles, blocks, and similar products made of 2.7 5.9 25.4 7,9 27,1 18,6
plant fibers, straw or shavings, chips, particles, sawdust,
etc., agglomerated with cement, plaster or other mineral
substances
6809000000 Plaster or plaster-based mixes products: 320.5 415.3 3630.3 1863,9 387,3 141,0

6810000000 Cement, concrete or artificial stone products, reinforced or 2786.4 3064.9 2056.6 2602,6 7074,8 4595,4
non-reinforced:
6810110000 - - building blocks and bricks: 151.3 270.2 340.3 503,2 819,3 1058,8
6810111000 - - - made of light concrete (based on crushed pumice, 115.5 264.4 326.7 449,8 586,0 806,7
granulated slag, etc.)
6810119000 - - - other 35.8 5.8 13.7 53,4 233,3 252,1
6810190000 - - other: 138.2 133.8 360.9 332,4 434,2 287,6

Prepared by BIZPRO 182

6810191000 - - - roofing tiles 0.0 0.0 0.0 0,0 0,0 1,1
6810193100 - - - - made of concrete 0.0 0.0 20.4 31,7 61,5 130,6
6810193900 - - - - other 0.0 0.0 0.0 0,0 0,0 0,5
6810199000 - - - other 125.9 129.4 340.5 300,7 372,8 155,4
6810910000 - - prefabricated components for construction or civil 6.5 21.8 211.9 6,7 429,3 28,6
construction:
6810919000 - - - other 0.0 15.2 211.9 6,7 429,3 28,6
6810990000 - - other 2427.2 2595.2 1143.5 1760,3 5392,1 3220,3
6811000000 Products made of asbestos cement, cellulose fiber cement 6398.9 9778.7 12838.0 15790,3 14697,9 24697,4
or similar materials:
6811100000 - corrugated sheets [asbestos boards] 6303.4 9602.5 12394.5 15292,8 13827,8 23498,8
6811200000 - other sheets, panels, slabs, roofing tiles, and similar 3.8 98.4 266.6 333,7 529,0 309,0
products:
6811201100 - - roofing boards or façade boards in sizes not to exceed 40 0.0 0.0 0.0 0,0 0,0 7,3
x 60 cm
6811208000 - - other 0.0 98.4 266.6 333,7 529,0 301,7
6811300000 - tubes, pipes, and fittings for them 79.5 77.5 176.0 163,8 332,1 874,5
6811900000 - other products 12.1 0.4 1.0 0,0 9,0 15,1
6900000000 Ceramic products 44804.8 45060.1 44848.5 50851,2 75132,9 80054,7
6901000000 Bricks, blocks, tiles, and other ceramic products made of 53.3 172.3 52.0 58,5 14,2 51,1
siliceous stone powder (kieselguhr, tripolite or diatomite) or
of similar siliceous rock

6901001000 - bricks with mass over 650 kg/m3 0.0 0.0 0.3 1,0 0,0 0,0
6901009000- other 53.3 172.3 51.7 57,5 14,2 51,1
6902000000 Refractory bricks, blocks, tiles, and similar refractory 27008.2 25009.4 21138.2 20137,9 33073,1 32153,6
materials, except products made of siliceous stone powder
or similar siliceous rock

Prepared by BIZPRO 183

6903000000 Other products made of refractory ceramics (e.g., retorts, 1551.0 1415.6 1438.5 1878,8 1913,5 2365,6
crucibles, firepots, muffles, nozzles, mufflers, supports,
cupels, pipes, tubes, casings, rods, bars), except for
products made of siliceous stone powder or similar siliceous
rock

6904000000 Building bricks, floor blocks, load-bearing or facing tiles, and 104.1 44.8 238.8 604,2 1125,5 2424,6
similar ceramics products:
6904100000- building bricks 58.8 41.1 215.2 569,3 1091,0 2412,8
6904900000 - other 45.4 3.7 23.5 34,9 34,5 11,8
6905000000 Roofing tiles, chimney components, deflectors, ornamental 0.0 0.0 0.9 0,0 0,0 3,7
architectural and other building ceramic products:
6905100000 - roofing tiles 0.0 0.0 0.0 0,0 0,0 3,5
6905900000- other 0.0 0.0 0.9 0,0 0,0 0,2
6906000000 Ceramic pipes, insulating pipelines, water discharge lines, 1.1 13.8 0.9 12,9 1,2 15,5
and pipe fittings
6907000000 Ceramic non-glazed paving tiles and slabs, floor covering, 326.1 19.9 34.7 66,0 282,9 2893,5
and stone walls; ceramic non-glazed mosaic cubes, and
similar products with and without base:

6908000000 Ceramic glazed tiles and slabs for paving or floor covering, 1081.8 1071.6 1537.0 1534,7 3591,4 4046,4
stone walls; ceramic glazed mosaic cubes and similar
products
6910000000 Sinks, wash bowls, sink consoles, baths, bidets, toilet 3999.6 4772.3 8227.5 11646,3 15659,7 16088,0
bowls, flushing tanks, urinals, and similar sanitary ware
made of ceramics:
6910100000 - made of porcelain 3362.3 4631.8 8218.2 11618,2 15595,6 16050,9
6910900000 - other 637.3 140.5 9.3 28,1 64,1 37,0
7000000000 Glass and glass products 46060.0 60947.2 66657.5 130266,0 149058,1 65203,5
7003000000 Cast and rolled glass produced as sheets, plates or shapes, 367.6 173.0 34.8 218,4 230,2 173,0
with absorptive, reflective or non-reflective layer or without
such layer, however, not otherwise processed:

Prepared by BIZPRO 184

7004000000 Drawn, blown or sheet glass, with absorptive, reflective or 1647.9 1489.0 1539.1 1604,5 2854,1 2602,1
non-reflective layer or without such layers, however, not
otherwise processed:
7005000000 Thermically polished glass and glass with flat or polished 12113.3 16871.2 16582.3 12972,5 17550,8 17055,8
surface, in sheets with absorptive or reflective layer or
without such layer, however, not otherwise processed:

7006000000 Glass of product items 7003, 7004 or 7005, bent, cut, 266.1 163.7 468.4 673,6 1159,0 1888,9
engraved, drilled, enameled or otherwise processed,
however, not framed or otherwise combined with other
materials:
7007000000 Safety glass, including strengthened / hardened or 199.9 447.1 543.8 727,5 1096,1 1147,5
laminated glass:
7008000000 Laminated insulating products made of glass: 3.8 0.0 4.1 0,0 33,4 3,1
7009000000 Glass mirrors, framed or unframed, including rearview 652.0 520.1 487.8 653,3 841,5 408,5
mirrors:
7016000000 Paving blocks, tiles, bricks, dalles, roofing tiles, etc., made 8.2 1.0 6.8 18,8 85,8 17,0
of pressed or cast glass, wired or otherwise, for building or
for structures; cubes, square and other pieces of glass, with
or without base, for mosaics or other such decorations;
glass

7019000000 Glass fiber (including glass wool) and products (e.g., thread, 2531.6 3087.2 2168.1 3067,1 5063,9 7124,7
fabric):
for second half year of 2001 only

Prepared by BIZPRO 185

 TABLE 4. DYNAMICS OF THE VOLUME OF EXPORTS OF NONMETAL CONSTRUCTION MATERIALS IN 2000-2005, TONS
2000 2001 2002 2003 2004 2005
3205000000 Color paint varnishes; preparations indicated in Note 3 to 22.2 22.9 26.3 27,6 5,6 0,918
this group and made of these varnishes
3206000000 Other colors; preparations indicated in Note 3 to this group 75843.3 81133.2 66248.3 85244,0 112972,2 122451,7
and different than the materials of product items 3203,
3204 or 3205; inorganic substances of grades used as
luminophors with clearly determined or undetermined
chemical composition

3207000000 Ready pigments, opacifiers and dyes, glassy enamels and 3422.1 4766.6 4674.1 5835,3 6911,8 7083,8
glaze, engobes (clip), liquid glossing agents and similar
preparations of the grades used for production of ceramic,
enamel and glass products; glaze frit, etc.

3208000000 Paints and varnishes (including enamels and polishes) 9067.7 9008.0 5173.3 6944,6 8397,7 7548,0
based on synthetic polymers or chemical modified natural
polymers, dispersed or dissolved in nonaqueous solutions;
solutions specified in Note 4 to this group
3209000000 Paints and varnishes (including enamels and polishes) 153.1 342.5 414.5 943,2 1320,6 1724,0
based on synthetic polymers or chemical modified natural
polymers dispersed or dissolved in aqueous solutions

3212000000 Pigments (including metal powders and metal flakes) 25.5 20.1 28.1 815,9 680,5 224,7
dispersed in nonaqueous solutions, in the liquid, paste or
stiff mass form, of the grades used for production of paints
(including enamels); stamping foil; painting means

Prepared by BIZPRO 186

3214000000 Glazing putty, grafting clay, pitch cement, putty (for 1599.8 10011.3 10366.2 7392,1 4964,7 7459,2
sealing) and other mastics; filler for paintwork, non-
fireproof mixes for preparing surfaces of façades, internal
walls of buildings, floor, ceiling, etc.

3917000000 Pipes, tubes and hoses and their fitting parts (e.g., 709.2 4641.0 7237.6 14408,1 23917,5 34952,7
couplers, bends, sleeves) made of plastics

3918000000 Plastic flooring, self-adhesive or non-self-adhesive, in rolls 1.6 12.7 436.7 2494,1 3978,3 4759,0
or sheets; plastics covering for walls or ceilings as
specified in Note 9 to this group

3919000000 Boards, sheets, strips, bands, film, and other flat plastics 302.1 282.0 40.4 54,8 124,3 265,9
products, self-adhesive, in rolls or otherwise

3920000000 Other boards, sheets, film, band, and plates made of 4443.0 4796.6 5553.4 5140,4 7312,3 8818,1
plastics, non-porous, non-strengthened and non-laminated
(not multilayered), not combined with other materials,
without base, and not otherwise connected with other
materials
3921000000 Other plates, sheets, film, and bands made of plastics 2494.9 3566.8 2706.3 3038,3 5223,0 7920,2

3922000000 Baths, showers, sinks, bidets, toilet bowls and their seats 46.7 59.5 86.8 126,2 185,0 205,3
and covers, flushing tanks, and similar sanitary-hygienical
products made of plastics
4008000000 Plates, sheets, bands, rods, and shapes made of uncured 253.4 621.7 495.7 318,1 308,3 738,9
vulcanite
4009000000 Pipes, hoses, and sleeves made of uncured vulcanite, with 283.3 452.8 777.4 1143,0 1680,6 1730,6
or without fittings (e.g., gaskets, bends, couplings)

Prepared by BIZPRO 187

4400000000 Wood and woods products, charcoal 1781108.1 1733920.9 2215238.2 2909894,1 3703310,5 3575557,1

4401000000 Firewood in the form of logs, billets, brushwood, branches, 60414.4 30820.4 14665.2 164542,1 187092,8 342517,1
etc.; wood chips or shavings; sawdust, chips, shavings,
wood fragments, waste, and scrap agglomerated or non-
agglomerated, in the form of billets, bricks, pellets, etc.

4403000000 Unprocessed lumber, disbarked or non-disbarked, 1035861.9 898957.2 1197106.4 1553179,7 2140291,7 1958685,0
coarsely squared or unsquared

4404000000 Cooper’s wood; split logs; wood stakes and pales, pointed 1197.1 2609.6 10926.8 3722,3 1350,6 1673,4
but not length cut; squared or rounded wood, but not
turned, bent or otherwise processed, used for
manufacturing walking canes and umbrellas

4407000000 Sawn or length planed lumber, split or peeled, dressed or 589591.7 657533.4 799449.9 942740,6 1052098,3 966237,3
undressed, polished or unpolished, tongue-joined or not,
more than 6 mm thick

4408000000 Sheets of single-layer plywood and veneers, and sheets 4523.4 5076.2 6524.5 12168,7 14899,2 16309,6
for glued plywood (glued or otherwise) and other types of
wood length-cut, sawn into parts or peeled, planed or non-
planed, with polished or unpolished surface, joined or
unjoined

4409000000 Wood, plank timber (including unassembled parquet 10307.1 10126.1 13330.7 12933,4 16976,6 13945,1
boards and borders) as molded strips (with feathers,
grooves, matched, with chamfered edges, beading fillet
joined, shaped, rounded, etc)

Prepared by BIZPRO 188

4410000000 Particle boards and similar boards made of wood or other 21737.6 44981.3 67953.3 82387,5 118144,2 103761,3
wood-like materials, agglomerated or not agglomerated,
using resins or other organic binders

4411000000 Fiber boards made of wood or other wood-like materials, 7117.3 10119.1 11909.4 14117,5 14577,6 9789,9
agglomerated or not agglomerated, using resins or other
organic binders:

4412000000 Glued plywood, veneers wood panels and similar materials 23046.8 33089.9 39354.3 47728,2 62839,1 68518,6
of layered wood
4413000000 Wood pressed as blocks, slabs, bars or shapes 1412.8 1524.9 1011.4 497,6 307,1 227,8

4418000000 Joinery and carpentry products, building parts, including 1978.4 3836.8 4996.0 7770,9 10819,0 12223,3
porous wood panels, assembled parquet panels, roofing
shingles and batten

4418100000 - windows, balcony doors, their frames, and finish casings 31.1 259.5 273.9 467,3 943,2 1266,8

4418200000 - doors and their frames, platband, and thresholds 494.2 326.5 372.3 278,0 381,3 281,7

4418300000 - panel parquet 192.0 410.2 660.6 1743,8 2109,5 2070,7

4418400000 - concrete boxing 18.0 48.6 25.8 0,0 0,0 35,5
4418500000 - roofing shingles and batten 98.1 24.5 24.9 107,8 112,8 93,5
4418900000 - other 1145.0 2767.4 3638.6 5173,9 7272,2 8475,1
6800000000 Products made of stone, plaster, cement, asbestos, mica 242589.0 294988.2 347498.3 361005,8 310431,4 363297,6
or similar materials

6801000000 Paving blocks, border stone and paving slabs made of 7012.9 10834.1 15108.7 15977,6 15487,1 20768,9
natural stone (except shale)

Prepared by BIZPRO 189

6802000000 Dressed stone (except shale) for monuments or for 11926.2 13957.4 13894.7 17651,6 19039,3 28378,6
building, and products made of such stone, except for the
products under product item 6801; mosaic cubes and
similar products made of natural stone (including shale),
with or without base; pellets

6806000000 Slag wool, mineral silicate wool, and similar mineral wools; 1823.5 2972.2 2555.7 3833,4 4218,8 9205,8
layered vermiculite, expanded clays, foam slag, and
similar expanded mineral products; mixtures and products
made of heat-insulating or sound-proofing materials,
except products of product items

6807000000 Products made of asphalt or similar materials (e.g., 1181.1 1373.9 2049.4 4890,7 4702,2 6809,8
petroleum bitumen or coal-tar pitch)
6808000000 Panels, slabs, tiles, blocks, and similar products made of 2995.2 6628.8 1958.5 9771,0 31127,0 33933,9
plant fibers, straw or shavings, chips, particles, sawdust,
etc., agglomerated with cement, plaster or other mineral
substances

6809000000 Plaster or plaster-based mixes products 2247.7 3150.2 32996.0 16838,2 2925,6 1023,5
6810000000 Cement, concrete or artificial stone products, reinforced or 70200.3 67792.2 41950.2 48392,1 73309,3 63083,3
non-reinforced:

6810110000 - - building blocks and bricks: 5399.2 7875.4 8507.7 9862,6 13576,5 18381,6
6810111000 - - - made of light concrete (based on crushed pumice, 3188.2 7520.9 8166.0 9270,4 10953,2 14695,0
granulated slag, etc.)

6810119000 - - - other 2211.0 354.5 341.7 592,2 2623,3 3686,6

6810190000 - - other: 3248.5 1361.2 4229.9 3479,6 4297,0 2982,0
6810191000 - - - roofing tiles 0.0 0.0 0.0 0,0 0,0 1,5
6810193100 - - - - made of concrete 0.0 0.0 303.8 369,6 732,9 1314,0
6810193900 - - - - other 0.0 0.0 0.0 0,0 0,0 4,5
6810199000 - - - other 2731.9 1223.2 3926.1 3110,0 3564,1 1661,9

Prepared by BIZPRO 190

6810910000 - - prefabricated components for construction or civil 149.9 1062.0 2651.1 532,2 2524,2 119,3
construction:

6810919000 - - - other 0.0 939.6 2651.1 532,2 2524,2 119,3

6810990000 - - other 60867.4 57075.6 26561.4 34517,7 52911,6 41600,4
6811000000 Products made of asbestos cement, cellulose fiber cement 143049.5 189950.2 233410.4 245804,3 180618,7 221889,4
or similar materials
6811100000 - corrugated sheets [asbestos boards] 142301.4 187886.4 228318.6 240304,8 172210,9 214406,2
6811200000 - other sheets, panels, slabs, roofing tiles, and similar 51.2 1331.8 3676.2 4350,5 6204,8 2584,3
products:
6811201100 - - roofing boards or façade boards in sizes not to exceed 0.0 0.0 0.0 0,0 0,0 20,4
40 x 60 cm

6811208000 - - other 0.0 1331.8 3676.2 4350,5 6204,8 2563,9

6811300000 - tubes, pipes, and fittings for them 636404.0 724.6 1405.9 1147,9 2176,6 4873,3
6811900000 - other products 60.5 7.5 9.7 1,0 26,4 25,6
6900000000 Ceramic products 162054.5 171607.1 170816.6 183291,6 250570,2 227740,8
6901000000 Bricks, blocks, tiles, and other ceramic products made of 586.7 1194.5 153.5 95,1 20,1 155,3
siliceous stone powder (kieselguhr, tripolite or diatomite) or
of similar siliceous rock:
6901001000 - bricks with mass over 650 kg/m3 0.0 0.0 20.0 4,8 0,0 0,0
6901009000 - other 586.7 1194.5 133.5 90,3 20,1 155,3
6902000000 Refractory bricks, blocks, tiles, and similar refractory 129153.4 133916.6 119250.2 116780,0 166965,2 132554,0
materials, except products made of siliceous stone powder
or similar siliceous rock

6903000000 Other products made of refractory ceramics (e.g., retorts, 2754.4 2717.6 5848.6 13423,1 13024,7 9240,6
crucibles, firepots, muffles, nozzles, mufflers, supports,
cupels, pipes, tubes, casings, rods, bars), except for
products made of siliceous stone powder or similar
siliceous rock

6904000000 Building bricks, floor blocks, load-bearing or facing tiles, 2280.5 970.9 3737.2 7919,3 11043,2 22102,9
and similar ceramics products:
6904100000 - building bricks 2078.4 815.2 3582.6 7601,3 10635,2 22028,5
6904900000 - other 202.1 155.7 154.6 318,0 408,0 74,4

Prepared by BIZPRO 191

6905000000 Roofing tiles, chimney components, deflectors, ornamental 0.0 0.0 3.2 0,0 0,0 8,1
architectural and other building ceramic products:
6905100000 - roofing tiles 0.0 0.0 0.0 0,0 0,0 8,0
6905900000 - other 0.0 0.0 3.2 0,0 0,0 0,1
6906000000 Ceramic pipes, insulating pipelines, water discharge lines, 0.9 10.2 3.6 6,3 0,250 0,7
and pipe fittings
6907000000 Ceramic non-glazed paving tiles and slabs, floor covering, 1308.1 133.1 196.0 356,2 1520,0 10131,7
and stone walls; ceramic non-glazed mosaic cubes, and
similar products with and without base:

6908000000 Ceramic glazed tiles and slabs for paving or floor covering, 5212.5 5620.4 8860.9 7994,3 15553,7 14250,6
stone walls; ceramic glazed mosaic cubes and similar
products:

6910000000 Sinks, wash bowls, sink consoles, baths, bidets, toilet 9141.3 13912.5 19843.9 20969,7 21829,9 19847,0
bowls, flushing tanks, urinals, and similar sanitary ware
made of ceramics:
6910100000 - made of porcelain 7969.6 13600.9 19833.5 20931,7 21733,4 19806,4
6910900000 - other 1171.7 311.6 10.4 38,0 96,5 40,5
7000000000 Glass and glass products 201654.5 203734.17 210166.3 174861,3 176128,6 161371,1
7003000000 Cast and rolled glass produced as sheets, plates or 1084.6 848.0 150.6 819,6 510,8 393,1
shapes, with absorptive, reflective or non-reflective layer or
without such layer, however, not otherwise processed

7004000000 Drawn, blown or sheet glass, with absorptive, reflective or 9688.6 8382.0 9065.1 8366,9 11917,8 10669,6
non-reflective layer or without such layers, however, not
otherwise processed

7005000000 Thermically polished glass and glass with flat or polished 73654.2 88372.3 92950.5 59877,0 61390,3 57431,8
surface, in sheets with absorptive or reflective layer or
without such layer, however, not otherwise processed

Prepared by BIZPRO 192

7006000000 Glass of product items 7003, 7004 or 7005, bent, cut, 870.1 420.1 1926.4 2320,9 3001,4 4346,3
engraved, drilled, enameled or otherwise processed,
however, not framed or otherwise combined with other
materials
7007000000 Safety glass, including strengthened / hardened or 41.4 39.2 612.9 1145,0 1473,6 1273,5
laminated glass
7008000000 Laminated insulating products made of glass 15.0 0.0 6.4 0,0 14,6 2,6

7009000000 Glass mirrors, framed or unframed, including rearview 480.6 457.6 402.6 486,2 462,2 185,5
mirrors

7016000000 Paving blocks, tiles, bricks, dalles, roofing tiles, etc., made 47.3 2.3 2.5 43,4 104,4 23,8
of pressed or cast glass, wired or otherwise, for building or
for structures; cubes, square and other pieces of glass,
with or without base, for mosaics or other such
decorations; glass

7019000000 Glass fiber (including glass wool) and products (e.g., 1698.6 2042.3 1116.2 1434,2 2629,4 3486,7
thread, fabric)

for second half year of 2001 only

Prepared by BIZPRO 193

 TABLE 5. STRUCTURE OF IMPORT OF RAW MATERIALS IN 2000-2004, $ THOUSAND
2000 2001 2002 2003 2004
Natural sand of all types, colored or uncolored, except metal-bearing sand of group 198.7 286.3 482.3 677.8 597.5
26
Quartz (except natural sand), quartzite, coarsely dressed or undressed, sawn or not 60.7 28.4 113.7 192.3 267.7
sawn, or otherwise divided into rectangular or square blocks or slabs

Kaolin and other kaolin clays, calcined or not calcined 0.4 3.8 10.0 83.6 56.0
Other clays (except expanded clays of product group 6806), andalusite, kyanite, 260.5 1372.2 220.0 814.2 724.2
fibrolite, calcined or uncalcined; mulite, chamotte or silica earth

Chalk 819.8 966.8 1101.4 1442.8 1358.7

Natural calcium phosphates [phosphorites], natural aluminum-calcium phosphates, 11499.1 11938.2 5057.1 6406.4 14990.0
and phosphate chalk
Natural barium sulfate (barite); natural barium carbonite (witherite), calcined or 1252.0 1045.2 1216.8 1173.3 1984.4
uncalcined, except for barium oxide of product group 2816

Fossil meal [mountain flour] (e.g., kieselguhr, tripoli powder, and diatomite) and 359.6 369.4 695.4 1131.7 1323.4
similar siliceous earth with specific weight of not more than 1, calcined or uncalcined
Pumice, emery, natural corundum, natural garnet and other natural abrasive 3.6 4.9 16.2 305.8 411.1
materials, thermally treated or untreated
Shale, coarsely dressed or undressed, sawn or not sawn, or otherwise separated 124.8 142.1 235.3 334.1 365.0
into rectangular or square blocks or slabs

Marble, travertine [calcareous sinter], ekausin and other types of limestone for 146.9 47.5 165.3 389.7 526.8
monuments or building with specific weight of not less than 2.5, and alabaster,
coarsely dressed or undressed, sawn or not sawn, or otherwise separated into
blocks and slabs

Granite, porphyry, basalt, sandstone, and other stones for monuments or building, 22.0 604.2 46.8 1146.1 1886.9
coarsely dressed or undressed, sawn or not sawn, or otherwise separated into
rectangular or square blocks or slabs

Prepared by BIZPRO 194

 Pebbles, gravel, crushed rock or crushed stones, which are normally used as 613.6 704.2 1089.4 2085.8 4285.8
concrete aggregate or for paving motorways and railroad tracks, or other types of
ballast, thermally treated or untreated pebbles and gravel, macadam

Calcined or uncalcined dolomite; dolomite, hewn or coarsely dressed, sawn or 861.6 1814.4 1794.8 2384.8 3179.4
otherwise divided into rectangular or square blocks or slabs; agglomerated dolomite
(including tarred dolomite)

Natural magnesium carbonite (magnesite); melt magnesia; sintered (agglomerated) 69851.1 65560.0 58347.9 67751.1 78520.8
magnesium with or without smaller amounts of other oxides, added before
agglomeration; other magnesium oxides, with or without additives

Plaster stone; anhydrite; plaster [in the form of calcined plaster or calcium sulfate], 3963.8 5317.7 7615.4 9542.6 10552.9
colored or uncolored, with or without smaller amounts of accelerants or retardants

Limy flux; limestone and limy stones used for making lime or cement 18.1 36.6 167.5 22.5 9.0

Quick lime, slaked lime, and hydraulic lime, except calcium oxide and hydroxide of 473.1 807.4 715.6 1042.4 1052.1
product group 2825
Portland cement, alumina cement, slag Portland cement, sulfate-resistant cement 2734.7 12346.8 4006.0 3528.0 6823.2
and similar water-hardened cements, colored or uncolored, ready-mixed or in the
form of clinkers
Asbestos 8045.3 11025.6 8731.3 13866.7 21038.4
Mica, including that split into irregular plates or splittings, mica reject 67.8 92.9 142.4 181.3 274.5

Natural steatite, coarsely dressed or undressed, sawn or not sawn, or otherwise 367.7 438.7 289.5 460.3 460.3
divided into rectangular or square blocks of slabs; talc

Feldspar, leucite, nepheline and nepheline syenite; fluorite [fluorspar] 8641.8 9929.4 8392.6 10673.7 8772.7

Mineral substances not included into other groups 974.1 1939.4 1832.0 2275.1 2712.2

Prepared by BIZPRO 195

 TABLE 6. STRUCTURE OF RAW MATERIALS IMPORTS IN 2000-2004 BY PHYSICAL VOLUME, TONS
2000 2001 2002 2003 2004 2005
2505000000 Natural sand of all types, colored or uncolored, 14411.8 15444.4 13436.3 13694.6 7673.6 4886.0
except metal-bearing sand of group 26

2505100000 - siliceous sand and quartz sand 2050.3 3826.5 2855.5 4059.8 4287.8 4639.2
2505900000 - other sand 12361.4 11617.9 10580.7 9634.8 3385.6 246.7
2506000000 Quartz (except natural sand), quartzite, coarsely 314.3 114.1 226.7 443.0 536.8 588.4
dressed or undressed, sawn or not sawn, or
otherwise divided into rectangular or square blocks
or slabs
2507000000 Kaolin and other kaolin clays, calcined or not 0.3 16.9 21.4 93.5 179.2 202.9
calcined:
2507002000 - kaolin 0.0 11.7 21.4 73.4 158.1 65.8
2507008000 - other kaolin clays 0.0 0.0 0.0 20.1 21.1 137.1
2508000000 Other clays (except expanded clays of product 5667.2 33149.1 1350.7 2091.0 3225.3 2309.5
group 6806), andalusite, kyanite, fibrolite, calcined
or uncalcined; mulite, chamotte or silica earth
2509000000 Chalk 24969.3 30324.5 34493.3 33948.3 28908.2 30167.7
2510000000 Natural calcium phosphates [phosphorites], natural 214905.6 235886.1 111309.7 168456.5 391497.8 482898.6
aluminum-calcium phosphates, and phosphate
chalk
2511000000 Natural barium sulfate (barite); natural barium 16570.1 15013.8 15035.0 13350.6 20509.5 19812.0
carbonite (witherite), calcined or uncalcined, except
for barium oxide of product group 2816
2512000000 Fossil meal [mountain flour] (e.g., kieselguhr, tripoli 1226.9 1285.0 1702.5 2235.2 2531.0 2648.1
powder, and diatomite) and similar siliceous earth
with specific weight of not more than 1, calcined or
uncalcined
2513000000 Pumice, emery, natural corundum, natural garnet 7.8 1.4 151.8 6245.5 3885.5 307.7
and other natural abrasive materials, thermally
treated or untreated

Prepared by BIZPRO 196

2514000000 Shale, coarsely dressed or undressed, sawn or not 1546.4 2206.2 3385.5 5097.1 5638.0 9963.7
sawn, or otherwise separated into rectangular or
square blocks or slabs

2515000000 Marble, travertine [calcareous sinter], ekausin and 362.1 250.6 894.2 1315.5 1893.2 1556.5
other types of limestone for monuments or building
with specific weight of not less than 2.5, and
alabaster, coarsely dressed or undressed, sawn or
not sawn, or otherwise separated into blocks and
slabs
2516000000 Granite, porphyry, basalt, sandstone, and other 74.9 483.7 337.1 637.2 850.0 898.1
stones for monuments or building, coarsely dressed
or undressed, sawn or not sawn, or otherwise
separated into rectangular or square blocks or
slabs
2517000000 Pebbles, gravel, crushed rock or crushed stones, 7182.6 8204.8 20140.1 35426.0 72490.7 81416.4
which are normally used as concrete aggregate or
for paving motorways and railroad tracks, or other
types of ballast, thermally treated or untreated
pebbles and gravel, macadam
2518000000 Calcined or uncalcined dolomite; dolomite, hewn or 70092.9 124043.5 103007.9 139051.9 119073.3 115967.7
coarsely dressed, sawn or otherwise divided into
rectangular or square blocks or slabs;
agglomerated dolomite (including tarred dolomite)
2519000000 Natural magnesium carbonite (magnesite); melt 507168.9 483782.3 440327.5 487988.2 502039.3 482240.8
magnesia; sintered (agglomerated) magnesium
with or without smaller amounts of other oxides,
added before agglomeration; other magnesium
oxides, with or without additives
2520000000 Plaster stone; anhydrite; plaster [in the form of 163985.6 247809.7 349189.4 367978.9 495224.2 471526.4
calcined plaster or calcium sulfate], colored or
uncolored, with or without smaller amounts of
accelerants or retardants
2521000000 Limy flux; limestone and limy stones used for 2207.1 3099.2 27796.5 3650.0 150.9 46.0
making lime or cement

Prepared by BIZPRO 197

2522000000 Quick lime, slaked lime, and hydraulic lime, except 8458.8 11762.7 12197.9 13584.5 15085.1 17627.0
calcium oxide and hydroxide of product group 2825
2523000000 Portland cement, alumina cement, slag Portland 101482.3 537760.7 175150.5 141676.0 227133.5 201670.4
cement, sulfate-resistant cement and similar water-
hardened cements, colored or uncolored, ready-
mixed or in the form of clinker
2524000000 Asbestos 67682.4 92401.9 69350.1 84598.7 95119.0 108260.3

2525000000 Mica, including that split into irregular plates or 446.6 445.7 615.9 813.9 1050.7 799.4
splittings, mica reject

2000 2001 2002 2003 2004 2005

2526000000 Natural steatite, coarsely dressed or undressed, 1269.9 1755.2 1164.7 2279.7 1738.8 1612.0
sawn or not sawn, or otherwise divided into
rectangular or square blocks of slabs; talc

2528000000 Natural sodium borates and their concentrates 0.8 0.0 0.0 1.0 0.0 0.1
(calcined or uncalcined), except the borates
isolated from natural saline solutions; natural boric
acid with H2BO3 content of not more than 80 %
mass in equivalent dry substance
2529000000 Feldspar, leucite, nepheline and nepheline syenite; 64907.3 79062.1 73018.1 98607.2 91164.7 154839.4
fluorite [fluorspar]:
2530000000 Mineral substances not included into other groups: 6711.8 21426.2 27044.1 31460.8 27776.1 42652.4

- for second half year of 2001 only

Prepared by BIZPRO 198

 TABLE 7. STRUCTURE OF RAW MATERIALS EXPORT SALES IN 2000-2004, $ THOUSAND
2000 2001 2002 2003 2004
Natural sand of all types, colored or uncolored, except metal-bearing sand of 1940.9 2479.9 2987.9 3703.3 3603.9
group 26
Quartz (except natural sand), quartzite, coarsely dressed or undressed, sawn or 1471.5 1889.6 1524.3 2351.1 2744.4
not sawn, or otherwise divided into rectangular or square blocks or slabs

Kaolin and other kaolin clays, calcined or not calcined 8744.3 10229.1 8133.4 9824.2 15881.1
Other clays (except expanded clays of product group 6806), andalusite, kyanite, 56036.5 61233.6 68921.0 81204.1 92922.3
fibrolite, calcined or uncalcined; mulite, chamotte or silica earth

Chalk 63.8 88.4 43.9 161.6 242.7

Natural calcium phosphates [phosphorites], natural aluminum-calcium - - - - 0.01
phosphates, and phosphate chalk
Natural barium sulfate (barite); natural barium carbonite (witherite), calcined or - - 1.3 - 0.5
uncalcined, except for barium oxide of product group 2816

Fossil meal [mountain flour] (e.g., kieselguhr, tripoli powder, and diatomite) and 58.5 113.3 139.1 181.4 167.1
similar siliceous earth with specific weight of not more than 1, calcined or
uncalcined
Pumice, emery, natural corundum, natural garnet and other natural abrasive 24.0 11.4 0.5 - 6.0
materials, thermally treated or untreated
Shale, coarsely dressed or undressed, sawn or not sawn, or otherwise separated - - - - 0.2
into rectangular or square blocks or slabs

Marble, travertine [calcareous sinter], ekausin and other types of limestone for 34.2 7.1 1.8 16.6 36.1
monuments or building with specific weight of not less than 2.5, and alabaster,
coarsely dressed or undressed, sawn or not sawn, or otherwise separated into
blocks and slabs

Granite, porphyry, basalt, sandstone, and other stones for monuments or building, 5581.6 5341.2 5930.7 7485.1 10131.4
coarsely dressed or undressed, sawn or not sawn, or otherwise separated into
rectangular or square blocks or slabs

Prepared by BIZPRO 199

 Pebbles, gravel, crushed rock or crushed stones, which are normally used as 6440.8 14877.5 18734.0 27572.7 32218.8
concrete aggregate or for paving motorways and railroad tracks, or other types of
ballast, thermally treated or untreated pebbles and gravel, macadam

Calcined or uncalcined dolomite; dolomite, hewn or coarsely dressed, sawn or 204.4 300.1 418.6 423.6 643.3
otherwise divided into rectangular or square blocks or slabs; agglomerated
dolomite (including tarred dolomite)

Natural magnesium carbonite (magnesite); melt magnesia; sintered 276.1 487.7 341.6 674.4 861.7
(agglomerated) magnesium with or without smaller amounts of other oxides,
added before agglomeration; other magnesium oxides, with or without additives

Plaster stone; anhydrite; plaster [in the form of calcined plaster or calcium sulfate], 159.4 188.8 370.5 1053.4 1427.1
colored or uncolored, with or without smaller amounts of accelerants or retardants

Limy flux; limestone and limy stones used for making lime or cement 2570.7 2578.7 2366.4 2363.2 3215.0

Quick lime, slaked lime, and hydraulic lime, except calcium oxide and hydroxide of 2.3 47.3 114.2 184.6 195.9
product group 2825
Portland cement, alumina cement, slag Portland cement, sulfate-resistant cement 16964.4 9628.2 17682.3 33625.9 48135.4
and similar water-hardened cements, colored or uncolored, ready-mixed or in the
form of clinker
Asbestos 47.6 44.8 66.0 56.5 6.6
Natural steatite, coarsely dressed or undressed, sawn or not sawn, or otherwise 51.7 24.4 24.8 18.2 13.2
divided into rectangular or square blocks of slabs; talc

Feldspar, leucite, nepheline and nepheline syenite; fluorite [fluorspar] 3.7 - 2.7 138.1 216.5

Mineral substances not included into other groups 1252.0 1057.1 1058.4 1461.6 1675.5

Prepared by BIZPRO 200

 TABLE 8. STRUCTURE OF RAW MATERIALS EXPORT BY PHYSICAL VOLUME IN 2000-2004, TONS
2000 2001 2002 2003 2004 2005
Natural sand of all types, colored or uncolored, except metal-bearing sand 198423.5 256507.6 291568.7 374638.3 282809.8 342920.8
of group 26
- siliceous sand and quartz sand 185907.5 251160.0 285164.4 362748.2 276243.0 338193.9
- other sand 12516.0 5347.6 6404.4 11890.1 6566.8 4726.9
Quartz (except natural sand), quartzite, coarsely dressed or undressed, 128618.8 179273.1 133689.7 221072.5 226039.9 184763.2
sawn or not sawn, or otherwise divided into rectangular or square blocks
or slabs
Kaolin and other kaolin clays, calcined or not calcined: 294039.1 287215.7 252744.3 317274.5 443304.8 511246.9

- kaolin 0.0 154866.3 242105.6 306333.5 434715.8 500792.7

- other kaolin clays 0.0 5941.1 10638.7 10941.0 8589.0 10454.2
Other clays (except expanded clays of product group 6806), andalusite, 2739971.4 3022944.8 3341527.4 3774362.7 4553077.8 4911395.3
kyanite, fibrolite, calcined or uncalcined; mulite, chamotte or silica earth

Chalk 1464.9 1829.5 906.4 3289.1 4838.9 1338.0

Natural calcium phosphates [phosphorites], natural aluminum-calcium 0.0 0.0 0.0 0.0 0.003 0.0
phosphates, and phosphate chalk

Natural barium sulfate (barite); natural barium carbonite (witherite), 0.0 0.0 4.5 0.0 0.5 0.0
calcined or uncalcined, except for barium oxide of product group 2816

Fossil meal [mountain flour] (e.g., kieselguhr, tripoli powder, and 359.9 390.0 448.0 572.5 446.4 436.0
diatomite) and similar siliceous earth with specific weight of not more than
1, calcined or uncalcined
Pumice, emery, natural corundum, natural garnet and other natural 220.0 13.5 3.0 0.0 59.2 0.0
abrasive materials, thermally treated or untreated

Shale, coarsely dressed or undressed, sawn or not sawn, or otherwise 0.0 0.0 0.0 0.0 1.5 0.0
separated into rectangular or square blocks or slabs

Prepared by BIZPRO 201

Marble, travertine [calcareous sinter], ekausin and other types of 56.8 14.0 87.5 968.9 632.8 358.7
limestone for monuments or building with specific weight of not less than
2.5, and alabaster, coarsely dressed or undressed, sawn or not sawn, or
otherwise separated into blocks and slabs

Granite, porphyry, basalt, sandstone, and other stones for monuments or 70465.4 62423.1 68472.9 79145.1 103608.8 122389.7
building, coarsely dressed or undressed, sawn or not sawn, or otherwise
separated into rectangular or square blocks or slabs

Pebbles, gravel, crushed rock or crushed stones, which are normally used 2013738.3 4118677.0 4840168.2 6518974.1 6193839.6 6985273.0
as concrete aggregate or for paving motorways and railroad tracks, or
other types of ballast, thermally treated or untreated pebbles and gravel,
macadam
Calcined or uncalcined dolomite; dolomite, hewn or coarsely dressed, 2608.5 7258.7 7275.0 8811.2 14942.5 11627.5
sawn or otherwise divided into rectangular or square blocks or slabs;
agglomerated dolomite (including tarred dolomite)
Natural magnesium carbonite (magnesite); melt magnesia; sintered 354.0 2144.5 2205.0 4699.1 5481.6 476.3
(agglomerated) magnesium with or without smaller amounts of other
oxides, added before agglomeration; other magnesium oxides, with or
without additives
Plaster stone; anhydrite; plaster [in the form of calcined plaster or calcium 18756.5 5977.4 12983.7 65088.0 117846.2 80282.2
sulfate], colored or uncolored, with or without smaller amounts of
accelerants or retardants

Limy flux; limestone and limy stones used for making lime or cement 530718.8 488377.7 367643.1 380601.9 466214.6 502684.0

Quick lime, slaked lime, and hydraulic lime, except calcium oxide and 70.1 1356.2 2824.3 2784.8 3431.6 1195.6
hydroxide of product group 2825

Portland cement, alumina cement, slag Portland cement, sulfate-resistant 881110.0 382296.4 658016.5 1167573.0 1356369.6 1478437.0
cement and similar water-hardened cements, colored or uncolored,
ready-mixed or in the form of clinker

Asbestos 149.1 228.0 361.2 304.5 36.5 160.1

Prepared by BIZPRO 202

Natural steatite, coarsely dressed or undressed, sawn or not sawn, or 589.3 222.7 217.2 101.8 70.7 128.8
otherwise divided into rectangular or square blocks of slabs; talc

Feldspar, leucite, nepheline and nepheline syenite; fluorite [fluorspar] 25.0 0.0 83.0 3451.9 5177.0 25620.2
Mineral substances not included into other groups 17379.3 14497.9 13308.9 16773.3 15203.6 14976.9

- second half year of 2001 only

Prepared by BIZPRO 203

 TABLE 9. LIST OF EQUIPMENT RECOMMENDED TO REDUCE NATURAL GAS CONSUMPTION

Implementation period under

Estimated cost efficiency in

Estimated implementation

Natural gas consumption

producing 1 Gcla of heat

stable financing, months

Payback period, months

reduction rate, percent
Design description

cost, Hr thousand

energy, Hr
Designer
Item #

Boiler Smoke Fumes Heat Utilizers

1 Family of condensation
surface-type heat utilizers
TPK, intended for heating the
water in heat supply systems
ITTF,
or for boiler-house auxiliaries
National
by means of deep chilling of
Academy of 50-100 6-15 6 18-24 2.1-5.25
exhaust gases of gas-
Sciences of
consuming boilers rated for
Ukraine
0.25 to 3.5 MW, in particular,
below the dew point of water
vapor contained in these
gases
2 Family of surface-type heat
utilizers PK, designed for
heating the water of heat
supply systems or for boiler-
house auxiliaries by means of ditto 70-120 4-8 8 18-24 1.4-2.8
chilling the exhaust gases of
gas-fired boilers rated for 2.5
to 6 MW

3 Surface-contact type heat

utilizer VPU-2.5, designed for
heating and humidifying the
blow air by means of deep
chilling the exhaust gas of ditto 80 7-8 10 24-36 2.45-2.8
boilers rated for 2.0 MW, and
for significant reduction (up to
50%) of hazardous nitric
oxide emissions
4 Surface-contact type heat
utilizer PDP-1.5, designed for
heating and humidifying the
blow air by means of deep
chilling the exhaust gases of ditto 60 10-12 10 18-30 3.5-9.8
boilers rated for 0.7 MW, and
for significant reduction (up to
50%) of hazardous nitric
oxide emissions

Prepared by BIZPRO 204

 5 Double-loop contact-type
heat utilizer AT-10 for heating
the water of hot water supply
systems and for chemical
ditto 70 7-10 8 18-24 2.45-3.5
water purification by means of
deep chilling the exhaust
gases of gas-fired boilers
rated for 4 MW
6 Contact-type heat utilizer TK
for heating raw water for
chemical water purifications
systems and for process Up to
ditto 40-160 10-15 8 3.5-5.25
needs by means of deep 12
chilling the exhaust gases of
gas-fired boilers rated for 2.5
to 20 MW
7 Using new systems of heat
Ukrteploene
recovery at boiler houses and
rgo 70,0 9-11 12 36 3.15-3.85
co-generation plants using
Corporation
plate heat exchangers
8 Heat utilizer and air heater for NVKP
50 3,3 3 6 1.16
boiler KVH-7,56-150 RYKS
9 Heat utilizer and air heater for NVKP
33 3,3 3 6 1.16
boiler KVH -4,65-150 RYKS
10 Heat utilizer and air heater for NVKP
69 3,5 3 6 1.23
boiler TVH-8М RYKS
11 Heat utilizer and air heater for NVKP
33 3,5 3 6 1.23
boiler TVH-4Р RYKS
12 Heat utilizer and air heater for NVKP
188 3,3 5 6 1.16
boiler KVHM-30 RYKS
13 Heat utilizer and air heater for NVKP
158 2,7 5 6 0.95
boiler PTVM-30М RYKS
14 Heat utilizer and air heater for NVKP
11 6,5 2 6 2.27
boiler Е-1,0-0,9H RYKS
15 Heat utilizer and air heater for NVKP
50 3,3 3 6 1.16
boiler KVH-7,56-150 RYKS
16 Heat utilizer and air heater for NVKP
33 3,3 3 6 1.16
boiler KVH-4,65-150 RYKS
17 Heat utilizer and air heater for NVKP
69 3,5 3 6 1.23
boiler TVH-8М RYKS
18 Heat utilizer and air heater for NVKP
33 3,5 3 6 1.23
boiler TVH-4R RYKS
19 Heat utilizer and air heater for NVKP
18 3,3 3 6 1.16
boiler VK-32-2,5 RYKS
Reconstruction of Boiler Units
Ukr NDI
Reconstruction of boilers
1 Inzhproekt 20.0 9-10 2 10 3.15-3.5
NIISTU-5 (comprehensive)
Reconstruction of Universal
2 ditto 15.0 9-10 2 10 3.15-3.5
boilers
Reconstruction of
3 ditto 7.5 9-10 2 12 3.15-3.5
Revokatov’s boilers
Reconstruction of Nadtochiy’s
4 ditto 7.0 9-10 2 12 3.15-3.5
boilers
Reconstruction of Minsk
5 ditto 8.0 9-10 2 12 3.15-3.5
boilers
Institute of
Reconstruction of NIISTU-5
6 Industrial 9.0 4-5 2 24 1.4-1.75
boilers
Ecology
Reconstruction of PTVM-50
7 ditto 280 5 10 10 1.75
boilers

Prepared by BIZPRO 205

 Reconstruction of PTVM-100
8 ditto 310 5 12 7 1.75
boilers
Modernization of boilers rated Petrokraft 2143,5
for 10 MW to 100 MW based Company, (for
on the technology by the official boilers
Petrokraft Company representati rated
(replacement of burners and ve of NVF for
modernization of the fuel Technother 30,50
supply and control system) m in MW)
Ukraine Compa
12
ny 7 to
9 10-15 month 3.5-5.25
provide 18
s
s
project
credits
for 20
years
at 5-7%
annual
interest
Burners
Ukr NDI
Gas and air premix burner
1 Inzhproekt 2.0 4 3 12 1.4
rated for 0.74 MW
2 Gas and air premix burner
ditto 2.5 4 3 12 1.4
rated for 0.90 MW
Injection-diffusion low-
Kharkiv
pressure gas burner TORA-1-
3 NVP ASPO- 15.6 5 1 6 1.75
N, complete with safety and
1
control automatic equipment
Megawatt-
M, TEKOM,
HHS-BN (burner with 25.0-
4 Boiler 1-2 1 60 0.35-0.7
automatic control equipment) 35.0
Welding
Plant No.63
Riello (burner with automatic 50.0- 1,5-
5 Italy 1 50 0.53-0.88
control equipment) 150.0 2,5
HBL (burner with automatic 25.0-
6 NPO Buran 1-2 1 60 0.35-0.7
control equipment) 35.0
R/PBR; PP; PL
(burner with automatic control Petrokraft, 1.8-
7 3-12 6 18-24 1.05-4.2
equipment) Sweden 24.0
(2-45 MW)
MPIH
Institute of
(burner for NIISTU-5; 2.0-
8 Industrial 1-4 2 12-36 0.35-1.4
TVH- 2,5;4;8 13.0
Ecology
KVHM-4;65;7.56)
SNH (jetting-niche NTU
technology) burner with Flagibon,
20.0-
9 automatic control equipment ZPK 3-12 1 6-12 1.05-4.2
100.0
For boilers rated for 0.55-100 Spetsgazpr
MW om
Modular gas burner type ITTF
HBHM TU U 33.2 – Ukrainian
13722226-013-2005 (0,85-3,5 Academy of 5,0,
10 30 3 12-24 1.75
MW) Sciences, max
KMP
Promel
Speed controller for induction Up to
motors type RCh TU U 33.2 – 3% of
11 Ditto 18 3 12-24 1.05
13722226-009-2003 gas
Up to

Prepared by BIZPRO 206

 40%
of
electri
c
power
Set of automatic equipment
for regulation, control, and
protection of boiler units
12 (TU U 13722226.007-99, ditto 15 5-7 3 12-24 1.75-2.45
TU U 13722226.002-97,
TU U 13722226.008-2001,
TU U 13722226.006-98)

Prepared by BIZPRO 207

 GENERAL SPECIFICATIONS FOR BUILDING PRODUCTS
1. GOST 12865-67. Expanded Vermiculite.
2. GOST 13578-68. Porous Filler Panels for
External Walls of Industrial Buildings.
Specifications.
3. GOST 15879-70. Glass Ruberoid.
Specifications.
4. GOST 16549-71. Through Cast–Iron, Gland,
Coupler-Joint Stopcocks Rated for P <=
10 kgf/cm2 with Water Drain Plug.
5. GOST 16914-71. Rubber Multilayer Linoleum –
Relin.
6. GOST 17241-71. Polymer Floor Covering
Materials and Products. Classification.
7. GOST 17584-72. Cast-Iron Sleeves and
Coupling Parts for Asbestos Cement Pressure
Pipes.
8. GOST 11118-73. Panels Made of Autoclaved
Cell Concrete for External Building Walls.
Specifications.
9. GOST 18853-73. Swinging Wood Gates for
Industrial Buildings and Structures.
Specifications.
10. GOST 18956-73. Rolled Roofing Materials.
Ageing Test Technique under Influence of
Artificial Climatic Effects
11. GOST 18958-73. Silicate Paints.
12. GOST 19100-73. Glued Wood Structures.
Methods of Testing Glued Joints for Weather-
Resistance
13. GOST 19279-73. Polymer Cement Paints.
14. GOST 2551-75. Rolled Roofing Felt and
Water-Proofing Materials. Packing, Marking,
Storage, and Transportation.
15. GOST 6927-74. Concrete Façade Slabs.
Specifications.
16. GOST 8411-74. Drainage Ceramic Pipes.
Specifications.
17. GOST 8426-75. Clay Bricks for Chimneys.
18. GOST 11052-74. Expanded Gypsum-Alumina
Cement.
19. GOST 19570-74. Panels Made of Autoclaved
Cell Concrete for Internal Load-Bearing Walls,
Partitions, and Ceilings of Residential and
Public Buildings. Specifications.
20. GOST 310.2-76. Cements. Grinding Fineness
Measuring Technique.
Prepared by BIZPRO
21. GOST 310.3-76. Cements. Techniques for
Measuring Normal Density, Setting Times, and
Uniformity of Volume Modification.
22. GOST 5742-76. Cell Concrete Heat-Insulating
Products.
23. GOST 9590-76. Paper-Laminated Decorative
Plastic. Specifications.
24. GOST 7251-77. Polyvinylchloride Linoleum of
Fabric Core Base. Specifications.
25. GOST 12852.0-77. Cell Concrete. General
Requirements to Testing Methods.
26. GOST 12852.5-77. Cell Concrete. Vapor
Permeability Factor Measuring Technique.
27. GOST 12852.6-77. Cell Concrete. Sorption
Humidity Measuring Technique.
28. GOST 16381-77 (ST SEV 5069-85). Heat-
Insulating Construction Materials.
Classification and General Specifications.
29. GOST 19111-77. Molded Shaped Strip
Polyvinylchloride Products. Specifications.
30. GOST 22362-77. Reinforced Concrete
Structures. Tendon Jacking Force Measuring
Techniques.
31. GOST 22406-77. Wood Parts and Products for
Building. Technique for Measuring Conditional
Humidity Permeability of Moisture-Resistant
Coatings and Impregnation.
32. GOST 22695-77. Laminated Wall and Building
Sheeting Panels with Heat-Insulation Made of
Foam Plastics. Foam Plastics. Strength Test
Techniques.
33. GOST 22783-77. Concretes. Accelerated
Compression Strength Measuring Technique.
34. GOST 12730.0-78. Concretes. General
Requirements for Techniques of Measuring
Density, Humidity, Water Absorption, Porosity,
and Water Permeability.
35. GOST 12730.1-78. Concretes. Density
Measuring Techniques.
36. GOST 12730.2-78. Concretes. Humidity
Measuring Technique.
37. GOST 12730.3-78. Concretes. Water
Absorption Measuring Technique.
38. GOST 12730.4-78. Concretes. Porosity
Measuring Techniques.
39. GOST 12784-78. Mineral Powder for Asphalt
Concrete Mix. Test Techniques.
208
40. GOST 13579-78. Concrete Blocks for
Foundation Walls. Specifications.
41. GOST 16557-78. Mineral Powder for Asphalt
Concrete Mixes. Specifications.
42. GOST 23009-78. Prefabricated Concrete and
Reinforced Concrete Structures and Products.
Conventional Designations (Grades).
43. GOST 2694-78. Foamed Diamite and Diamite
Heat-Insulating Products. Specifications.
44. GOST 310.1-78. Cements. General Provisions.
45. GOST 475-78. Wood Doors. General
Specifications.
46. GOST 7481-78. Wire Sheet Glass.
Specifications.
47. GOST 14791-79. Non-Hardening Sealing
Building Mastic. Specifications.
48. GOST 15836-79. Bituminous-Rubber
Insulating Cement. Specifications.
49. GOST 23464-79 (ST SEV 4471-84). Cements.
Classification.
50. GOST 23499-79. Building Sound-Absorptive
and Sound-Proofing Materials and Products.
Classification and General Specifications.
51. GOST 23668-79. Stone Blocks for Paving.
Specifications.
52. GOST 23735-79. Sand and Gravel Mixes for
Building Works. Specifications.
53. GOST 23789-79 (ST SEV 826-77 for test
techniques). Plaster Binder. Test Techniques.
54. GOST 23790-79. Phosphate Fireproof Wood
Covering. Specifications.
55. GOST 23835-79. Rolled Roofing Felt and
Water-Proofing Materials. Classification and
General Specifications.
56. GOST 23899-79. Reinforced Concrete
Columns for Parabolic Trays. Specifications.
57. GOST 10140-80. Heat-Insulating Slabs Made
of Mineral Wool on Bitumen Binder.
Specifications.
58. GOST 12504-80. Concrete and Reinforced
Concrete Internal Wall Panels for Residential
and Public Buildings. General Specifications.
59. GOST 15825-80. Colored Portland Cement.
Specifications.
60. GOST 16136-80. Heat-Insulating Perlite
Bitumen Slabs. Specifications.
61. GOST 16297-80. Sound-Proofing and Sound-
Absorptive Materials. Test Techniques.
Prepared by BIZPRO
62. GOST 18048-80. Reinforced-Concrete
Sanitary Cubicles. Specifications.
63. GOST 18108-80. Polyvinylchloride Linoleum
on Heat-Insulating Core Base. Specifications.
64. GOST 18343-80. Pallets for Bricks and
Ceramic Stones. Specifications.
65. GOST 1839-80. Asbestos Cement Pipes and
Unions for Free-Flow Pipelines. Specifications.
66. GOST 19592-80 (ST SEV 6011-87, ST SEV
6012-87, ST SEV 6013-87, ST SEV 1771-79,
ST SEV 1772-79, ST SEV 1773-79). Fiber
Boards. Test Techniques.
67. GOST 23972-80. Reinforced Concrete
Foundations for Parabolic Trays.
Specifications.
68. GOST 24022-80. Prefabricated Reinforced
Concrete Foundations for Columns of
Agricultural Buildings. Specifications.
69. GOST 24064-80. Rubber Cementing Mastics.
Specifications.
70. GOST 24099-80. Decorative Slabs Based on
Natural Stone. Specifications.
71. GOST 24155-80. Reinforced Concrete
Structures of High Passenger Platforms.
Specifications.
72. GOST 24210-80. Flooring Polymer Roll and
Tile Materials. Sound-Insulating Properties
Measuring Technique.
73. GOST 24316-80. Concretes. Hardening Heat
Release Measuring Techniques.
74. GOST 24404-80. Wood and Wood Materials
Products. Varnish and Paints Coating.
Classification and Designations.
75. GOST 24434-80. Multilayer Panels with Heat
Insulation Made of Foam Plastic for Building
Walls and Paneling. Foam Plastics. Shrinkage
Measuring Technique.
76. GOST 24452-80. Concretes. Techniques for
Measuring Prism Strength, Modulus of
Elasticity, and Poisson’s Ratio.
77. GOST 24476-80. Prefabricated Reinforced
Concrete Foundations for Columns of
Interspecific Application Frames for Multistory
Buildings. Specifications.
78. GOST 5087-80. Window and Door Handles.
Types and Basic Dimensions.
79. GOST 539-80. Asbestos Cement Pressure
Pipes and Unions. Specifications.
80. GOST 6785-80. Reinforced Concrete Window
Stools. Specifications.
209
81. GOST 12506-81. Wood Windows for Industrial
Buildings. Types, Construction, and
Dimensions.
82. GOST 13087-81. Concrete. Abradability
Measuring Techniques.
83. GOST 18659-81. Emulsified Road Bitumen.
Specifications.
84. GOST 19177-81. Sealing Porous Rubber
Gaskets. Specifications.
85. GOST 24544-81. Concretes. Shrinkage Creep
Deformation Measuring Techniques.
86. GOST 24545-81. Concretes. Durability Test
Techniques.
87. GOST 24581-81. Three-Layer Asbestos
Cement Panels with Foam Plastic Heat
Insulation. General Specifications.
88. GOST 24594-81. Panels and Wall Blocks
Made of Bricks and Ceramic Stones. General
Specifications.
89. GOST 24698-81. External Wood Doors for
Residential and Public Buildings. Types,
Construction, and Dimensions.
90. GOST 24699-81. Wood Windows and Balcony
Doors with Glazing Units and Glass for
Residential and Public Buildings. Types,
Construction, and Dimensions.
91. GOST 24748-81. Lime and Siliceous Heat-
Insulating Products. Specifications.
92. GOST 24816-81. Construction Materials.
Sorption Humidity Measuring Technique.
93. GOST 24944-81. Decorative Finishing
Polyvinylchloride Film. Specifications.
94. GOST 24983-81. Reinforced Concrete
Pressure Pipes. Ultrasonic Technique for
Controlling and Evaluating Fracture Strength.
95. GOST 24992-81. Stone Structures. Stone
Masonry Cohesive Strength Measuring
Technique.
96. GOST 6666-81. Border Stones Made of Rock.
Specifications.
97. GOST 8904-81. Hard Fiber Boards with
Varnish and Paint Coating. Specifications.
98. GOST 13448-82. Plastic Ventilating Grills.
Specifications.
99. GOST 13449-82 (ST SEV 2683-80). Ceramic
Sanitary Ware. Test Techniques.
100. GOST 17005-82. Glued Wood Structures.
Glued Joints Water-Proofing Measuring
Technique.
Prepared by BIZPRO
101. GOST 17580-82. Glued Wood Structures.
Technique for Measuring Resistance of Glued
Joints to Cyclical Temperature and Moisture
Effects.
102. GOST 18128-82. External Wall Asbestos
Cement Panels on Wood Frames with Heat
Insulation. Specifications.
103. GOST 19010-82. Concrete and
Reinforced Concrete Wall Blocks for Buildings.
General Specifications (with revision No.1 IUS
N3-86).
104. GOST 25097-82. Combination Wood and
Aluminum Windows and Balcony Doors.
General Specifications.
105. GOST 25116-82. Shop Windows and
Stained Glass Made of Aluminum Alloys.
Types, Construction, and Dimensions.
106. GOST 25130-82. VPD Expanded Wood
Fire-Protective Coating. Specifications.
107. GOST 25192-82 (ST SEV 6550-88).
Concretes. Classification and General
Specifications.
108. GOST 25214-82. Dense Lime Concrete.
Specifications.
109. GOST 25246-82. Chemical-Resistant
Concretes. Specifications.
110. GOST 25328-82. Cement for Building
Mortar. Specifications.
111. GOST 286-82. Ceramic Sewer Pipes.
Specifications.
112. GOST 15062-83. Toilet Bowl Seats.
Specifications.
113. GOST 17625-83. Reinforced Concrete
Structures and Products. Radiation Method for
Detecting Concrete Protective Layer,
Dimensions, and Rebar Locations.
114. GOST 21992-83 (ST SEV 2682-80).
Structural Glass. Specifications.
115. GOST 23208-83 (ST SEV 3476-81).
Heat-Insulating Mineral Wool Cylinders and
Semicylinders on Synthetic Binder.
Specifications.
116. GOST 25609-83. Polymer Roll and Tile
Flooring. Heat Absorption Measuring
Technique.
117. GOST 25621-83. Sealing and Packing
Polymer Building Materials and Products.
Classification and General Specifications.
210
118. GOST 25697-83. Reinforced Concrete
Balcony and Loggia Slabs. General
Specifications.
119. GOST 25781-83. Steel Moulds for Making
Reinforced Concrete Products. Specifications.
120. GOST 25880-83. Building Heat-Insulating
Materials and Products. Packing, Marking,
Transportation, and Storage.
121. GOST 25881-83. Chemical-Resistant
Concretes. Test Techniques.
122. GOST 25884-83. Glued Wood Structures.
Method for Measuring Strength of Glued Joints
at Layered Chipping.
123. GOST 25898-83. Construction Materials
and Products. Vapor Permeability Resistance
Measuring Techniques.
124. GOST 2697-83. Bitumen Roofing Felt.
Specifications.
125. ST SEV 4178-83. Wood Doors. Leaf
Plane Static Load Resistance Testing
Technique.
126. ST SEV 4179-83. Wood Doors.
Perpendicular Leaf Plane Static Load
Resistance Testing Technique.
127. ST SEV 4180-83. Wood Doors. Impact
Load Resistance Testing Technique.
128. ST SEV 4181-83. Wood Doors. Planarity
Measuring Technique.
129. ST SEV 4182-83. Wood Doors.
Dimensions and Rectangularity Error
Measuring Technique.
130. ST SEV 4183-83. Wood Doors. Heat
Transfer Resistance Measuring Technique.
131. ST SEV 4184-83. Wood Doors. Air-
Tightness, Etc., Testing Technique.
132. GOST 6428-83. Plaster Boards for
Partitions. Specifications.
133. GOST 4.225-83. Sewer and Drainage
Ceramic Pipes. Range of Indicators.
134. GOST 4.227-83. Cast-Iron and Plastic
Sewer Pipes and Shapes and Cast-Iron
Unions for Asbestos Cement Pressure Pipes.
135. GOST 3344-83. Crushed Rock and Slag
Sand for Road Building. Specifications.
136. GOST 12730.5-84. Concretes. Water-
Tightness Measuring Techniques.
137. GOST 11024-84. External Concrete and
Reinforced Concrete Panels for Residential
and Public Buildings. General Specifications.
Prepared by BIZPRO
138. GOST 14624-84. Wood Doors for
Industrial Buildings. Types, Construction, and
Dimensions.
139. GOST 20850-84. Glued Wood Structures.
General Specifications.
140. GOST 21519-84. Windows and Balcony
Doors, Shop Windows and Stained Glass
Windows Made of Aluminum Alloys. General
Specifications.
141. GOST 21924.0-84. Reinforced Concrete
Slabs for Paving City Roads. Specifications.
Construction and Dimensions (with Revision
No.1-IUS N5-88).
142. GOST 21924.3-84. Reinforced Concrete
Slabs for Paving City Roads, Reinforcements
and Mounting and Joining Products.
Construction and Dimensions.
143. GOST 26134-84. Concretes. Frost-
Resistance Ultrasonic Measuring Technique.
144. GOST 26138-84. Components and Parts
of Built-in Cabinets and Entresols for
Residential Buildings. Specifications.
145. GOST 26149-84. Roll Flooring Based on
Chemical Fibers. Specifications.
146. GOST 26150-84. Building Polymer
Finishing Materials and Products Based on
Polyvinylchloride. Specifications.
147. GOST 26253-84. Buildings and
Structures. Technique for Measuring Thermal
Stability of Filler Structures.
148. GOST 26254-84. Buildings and
Structures. Techniques for Measuring Heat
Transfer Resistance of Filler Structures.
149. GOST 26281-84. Heat-Insulating Building
Materials and Products. Acceptance
Regulations.
150. GOST 26301-84. Transom Items for
Windows, Shop Windows, and Stained Glass
Windows Made of Aluminum Alloys. Types and
Main Dimensions.
151. GOST 4001-84. Rock Masonry Units.
Specifications.
152. GOST 6133-84. Concrete Masonry Units.
Specifications.
153. GOST 948-84. Reinforced Concrete
Lintels for Brick Wall Buildings. Specifications.
154. SniP 2.04.02-84. Water Supply. External
Networks and Structures.
211
155. GOST 8462-85. Walling Materials.
Ultimate Crushing and Bending Strength
Measuring Techniques.
156. GOST 862.1-85. Parquet Products. Block
Parquet. Specifications.
157. GOST 862.2-85. Parquet Products.
Mosaic Parquet. Specifications.
158. GOST 862.3-85. Parquet Products.
Parquet Boards. Specifications.
159. GOST 862.4-85. Parquet Products.
Fabricated Wood Block Flooring.
Specifications.
160. GOST 10178-85 (ST SEV 5683-86).
Portland Cement and Slag Portland Cement.
Specifications.
161. GOST 13580-85. Reinforced Concrete
Slabs for Strip Foundations. Specifications.
162. GOST 22237-85. Cements. Packing,
Marking, Transportation, and Storage.
163. GOST 26417-85. Sound-Absorbing
Building Materials. Small Reverberation
Chamber Testing Technique.
164. GOST 26434-85. Reinforced Concrete
Floor Slabs for Residential Buildings. Types
and Main Parameters.
165. GOST 310.6-85. Cements. Dehydration
Measuring Technique.
166. SNiP 2.03.03-85. Armocement Structures.
167. SNiP 2.03.06-85. Aluminum Structures.
168. SNiP 2.03.09-85. Asbestos Cement
Structures.
169. SNiP 2.04.01-85. Intrabuilding Water and
Sewer Networks.
170. SNiP 2.04.03-85. Sewer System. External
Networks and Structures.
171. GOST 4598-86 (ST SEV 4188-83). Fiber
Boards. Specifications.
172. GOST 26601-85. Wood Windows and
Balcony Doors for Low-Rise Apartment
Buildings. Types, Construction, and
Dimensions.
173. GOST 5533-86 (SST SEV 5070-85).
Sheet Cathedral Glass. Specifications.
174. GOST 7415-86. Sarking. Specifications.
175. GOST 8894-86. Glass Pipes and Shapes
for Them. Specifications.
176. GOST 26602-85. Windows. Heat Transfer
Resistance Measuring Technique.
Prepared by BIZPRO
177. GOST 26604-85. Nonwoven Antiseptic-
Treated Fabric (Core Base) Made of All Types
of Fibers for Heat- and Sound-Insulating
Linoleum. Specifications.
178. GOST 26627-85. Roll Roofing and Water-
Proofing Materials. Acceptance Regulations.
179. GOST 26644-85. Crushed Rock and
Sand Made of Slag of Heat Power Stations for
Concrete. Specifications.
180. GOST 1005-86. Wood Floor Panels for
Low-Rise Buildings. Specifications.
181. GOST 16289-86. Triple-Glazed Wood
Windows and Balcony Doors for Residential
and Public Buildings. Types, Construction, and
Dimensions.
182. GOST 18105-86. Concretes. Accuracy
Control Regulations.
183. GOST 22000-86. Concrete and
Reinforced Concrete Pipes. Types and Main
Parameters.
184. GOST 26815-86. Reinforced Concrete
Relieving Wall Structures. Specifications.
185. GOST 26816-86. Cement-Shaving Slabs.
Specifications.
186. GOST 26819-86. Reinforced Concrete
Pressure Pipes with Steel Core. Specifications.
187. GOST 26871-86. Binding Plaster
Materials. Acceptance Regulations. Packing,
Marking, Transportation, and Storage.
188. GOST 26892-86. Wood Doors. Opening
Direction Impact Load Resistance Testing
Technique.
189. GOST 26919-86. Reinforced Concrete
Window Stools for Residential, Public, and
Auxiliary Buildings. Specifications.
190. GOST 26988-86. Fiber Boards.
Measuring Technique of Ultimate Tensile
Strength Acting Perpendicular to Board Plane.
191. GOST 26992-86. Reinforced Concrete
Girders for Covering Industrial and Agricultural
Buildings. Specifications.
192. GOST 27005-86. Light and Cell
Concretes. Average Control Regulations.
193. GOST 27006-86. Concretes. Composition
Selection Regulations.
194. GOST 27023-86. Welded
Polyvinylchloride Linoleum Flooring on Heat-
and Sound-Insulating Core Base.
Specifications.
212
195. GOST 27108-86. Reinforced Concrete
Frame Structures for Multistory Building with
Girderless Construction. Specifications.
196. SNiP 2.03.02-86. Concrete and
Reinforced Concrete Structures Made of Lime
Concrete Bed.
197. GOST 27215-87. Reinforced Concrete
Ribbed Floor Slabs 400 mm High for
Manufacturing Buildings of Industrial
Enterprises. Specifications.
198. GOST 4981-87. Wood Floor Beams.
Specifications.
199. GOST 24332-88. Lime-Sand Bricks and
Masonry Units. Compressive Strength
Ultrasonic Measuring Technique.
200. GOST 27936-88. Combination Wood and
Aluminum Windows and Balcony Doors for
Public Buildings. Types and Construction.
201. GOST 310.5-88. Cements. Heat Release
Measuring Technique.
202. GOST 6629-88. Internal Wood Doors for
Residential and Public Buildings. Types and
Construction.
203. GOST 8242-88. Shapes for Building
Purposes Made of Wood and Wood Materials.
Specifications.
204. GOST 8735-88 (ST SEV 5446-85). Sand
for Building Works. Testing Techniques.
205. GOST 8747-88 (ST SEV 5851-86). Sheet
Asbestos Cement Products. Testing
Techniques.
206. SNiP 2.03.13-88. Floors.
207. GOST 28015-89. Single-Layer Flooring
Boards. Specifications.
208. GOST 28042-89. Reinforced Concrete
Roofing Slabs for Industrial Building.
Specifications.
209. GOST 28089-89. Building Wall
Structures. Measuring Technique of Bonding
Strength of Facing Tiles to Base.
210. GOST 6266-89. Gypsum Plasterboard.
Specifications.
211. GOST 965-89 (ST SEV 6086-87). White
Portland Cement. Specifications.
212. GOST 13981-87. Moulds for Making
Reinforced Concrete Vibrocompressed and
Hydrocompressed Pressure Pipes.
213. GOST 17623-87. Concretes.
Radioisotope Technique for Measuring
Average Density.
Prepared by BIZPRO
214. GOST 17624-87. Concretes. Ultrasonic
Technique for Measuring Density.
215. GOST 20916-87. Heat-Insulating Slabs
Made of Foam Plastic Based on Phenolic
Formaldehyde Resins. Specifications.
216. GOST 21506-87. Reinforced Concrete
Ribbed Floor Slabs 300 mm High for Buildings
and Structures. Specifications.
217. GOST 22930-87. Prestressed Reinforced
Concrete Slabs for Facing Irrigation Canals of
Reclamation Works.
218. GOST 23422-87. Construction Materials.
Neutron Technique for Measuring Humidity.
219. GOST 25098-87. Reinforced Concrete
Partition Panels for Industrial and Agricultural
Buildings. Specifications.
220. GOST 17079-88. Ventilating Reinforced
Concrete Blocks. Specifications.
221. GOST 22690-88. Concretes. Measuring
Strength by Means of Nondestructive
Mechanical Control.
222. GOST 17057-89. Carpet Glass Facing
Tiles and Carpets Thereof. Specifications.
223. GOST 20213-89. Reinforced Concrete
Girders. Specifications.
224. GOST 21520-89. Small Cell Concrete
Wall Blocks. Specifications.
225. GOST 22685-89. Moulds for Making
Check Samples of Concrete. Specifications.
226. GOST 22689.0-89. Polyethylene Sewer
Pipes and Shapes for Them. General
Specifications.
227. GOST 22689.1-89. Polyethylene Sewer
Pipes and Shapes for Them. Assortment.
228. GOST 22689.2-89. Polyethylene Sewer
Pipes and Shapes for Them. Construction.
229. GOST 22856-89. Natural Decorative
Crushed Rock and Sand. Specifications.
230. GOST 10174-90. Foamed Polyurethane
Sealing Gaskets for Windows and Doors.
Specifications.
231. GOST 10180-90 (ST SEV 3978-83).
Concretes. Techniques for Measuring Strength
by Check Specimens.
232. GOST 11047-90. Wood Parts and
Products for Low-Rise Residential and Public
Buildings. Specifications.
213
233. GOST 11310-90 (ST SEV 6318-88).
Asbestos Cement Pipes and Unions. Testing
Techniques.
234. GOST 18979-90. Reinforced Concrete
Columns for Multistory Buildings.
Specifications.
235. GOST 18980-90. Reinforced Concrete
Collar Beams for Multistory Buildings.
Specifications.
236. GOST 20910-90. Heat-Resistant
Concrete. Specifications.
237. GOST 25628-90. Reinforced Concrete
Columns for Single-Storey Industrial Buildings.
Specifications.
238. GOST 28570-90 (ST SEV 3878-83).
Concretes. Strength Measuring Technique by
Samples Taken from Structures.
239. GOST 28737-90. Reinforced Concrete
Foundation Wall Beams for Industrial and
Agricultural Enterprises. Specifications.
240. GOST 28786-90 (ST SEV 6529-88).
Wood Doors. Technique of Measuring
Resistance to Climatic Effects.
241. GOST 28799-90 (ST SEV 6528-88).
Wood Doors. Water Resistance Measuring
Technique.
242. GOST 474-90. Acidproof Brick.
Specifications.
243. GOST 8020-90. Concrete and Reinforced
Concrete Structures for Sewage, Water
Supply, and Gas Supply Wells. Specifications.
244. GOST 9574-90. Plaster Concrete Panels
for Partitions. Specifications.
245. GOST 6139-91 (ST SEV 6951-89).
Standard Sand for Cement Testing.
Specifications.
246. GOST 6141-91 (ST SEV 2047-88).
Ceramic Glazed Tiles for Internal Wall Facing.
Specifications.
247. GOST 6665-91. Border Concrete and
Reinforced Concrete Blocks. Specifications.
248. GOST 9561-91. Hollow-Core Reinforced
Concrete Floor Slabs for Buildings and
Structures. Specifications.
249. GOST 14098-91. Welded Joints of
Reinforcements and Embedded Parts of
Reinforced Concrete Structures. Types,
Constructions, and Dimensions.
250. GOST 17608-91. Concrete Pavement
Slabs. Specifications.
Prepared by BIZPRO
251. GOST 24640-91 (ST SEV 6824-89).
Additives for Cements. Classification.
252. GOST 29167-91. Concretes. Static
Loading Fracture Strength (Crack Resistance)
Properties Measuring Techniques.
253. GOST 5382-91. Cements and Cement
Production Materials. Chemical Analysis
Techniques.
254. GOST 969-91. Aluminous and High-
Clayey Cements. Specifications.
255. GOST 10923-93. Ruberoid.
Specifications.
256. GOST 13996-93. Façade Ceramic Tiles
and Carpets Thereof. Specifications.
257. GOST 18866-93. Blast-Furnace Slag
Aggregate for Production of Mineral Wool.
Specifications.
258. GOST 22904-93. Reinforced Concrete
Structures. Magnetic Technique for Measuring
Concrete Protective Layer Thickness and
Reinforcements Location.
259. DSTU BV.2.7-5-93. Stove Dalle.
Specifications.
260. GOST 8267-93. Dense Crushed Rock
and Gravel for Building Works. Specifications.
261. GOST 26589-94. Roofing and Water-
Proofing Mastics. Testing Techniques.
262. GOST 2678-94. Roll Roofing and Water-
Proofing Materials. Testing Techniques.
263. DSTU BV.2.7-6-94. Concrete Roofing
Tiles. Specifications.
264. DSTU BV.2.7-7-94. Small Concrete
Walling Units. Specifications.
265. DSTU BV.2.7-8-94. Foam Polystyrene
Boards. Specifications.
266. DSTU BV.2.7-11-94. Additives for
Production of Porous Work Fillers.
Classification.
267. DSTU BV.2.7-12-94. Raw Materials for
Production of Porous Fillers. Classification.
268. DSTU BV.2.7-14-94. Clayey Raw
Materials for Production of Claydite Gravel and
Sand. Specifications.
269. GOST 12767-94. Solid Reinforced
Concrete Floor Slabs of Residential and Public
Buildings. Specifications.
270. GOST 18124-95. Flat Asbestos Cement
Sheets. Specifications. (DSTU BV.2.7-52-96 in
Ukraine).
214
271. GOST 21485-94. Flushing Toilet Tanks
and Fixtures. General Specifications.
272. GOST 22266-94. Sulfate-Resistant
Cements. Specifications.
273. GOST 23558-94. Rushed rock-Gravel-
Sand Mixes and Soils Treated with Inorganic
Binders for Road and Airdrome Building.
Specifications.
274. GOST 30301-95. Asbestos Cement
Products. Acceptance Regulations. (DSTU
BV.2.7-54-96 in Ukraine).
275. GOST 30340-95. Corrugated Asbestos
Cement Sheets. Specifications (DSTU BV.2.7-
53-96 in Ukraine).
276. GOST 379-95. Bricks and Lime-Sand
Stones. Specifications.
277. DSTU BV.2.7-10-95. Rod Reinforcements
for Reinforced Concrete Structures. Eddy
Current Testing of Strength Characteristics.
278. DSTU BV.2.7-13-95 (GOST 26302-93).
Glass. Directional Light Transmission and
Reflection Coefficient Measuring Techniques.
279. DSTU BV.2.7-15-95. Perlite Concrete
Heat-Insulating Products. Specifications.
280. DSTU BV.2.7-17-95. Artificial Porous
Gravel, Ballast, and Sand. Specifications.
281. DSTU BV.2.7-18-95. Light Concretes.
General Specifications.
282. DSTU BV.2.7-19-95 (GOST 30244-94).
Construction Materials. Flammability Testing
Techniques.
283. DSTU BV.2.7-21-95. Multilayer and
Single-Layer Polyvinylchloride Linoleum
without Underlay. Specifications.
284. DSTU BV.2.7-23-95. Building Mortars.
General Specifications.
285. DSTU BV.2.7-25-95. Heavy Slag Alkaline
Concretes. Specifications.
286. DSTU BV.2.7-26-95. Clayey Raw
Materials. Clay Drying Sensitivity Measuring
Technique.
287. DSTU BV.2.7-27-95. Shell Limestone
Sand for Building Work. Specifications.
288. DSTU BV.2.7-28-95. Ceramic Roofing
Tiles. Specifications.
289. DSTU BV.2.7-29-95. Small Natural Fillers
Made of Industrial Waste, Artificial Fillers for
Construction Materials, Products, Structures,
and Works. Classification.
Prepared by BIZPRO
290. DSTU BV.2.7-30-95. Nonmetal Materials
for Crushed Rock and Gravel Bases and
Pavement of Motor Roads. Specifications.
291. DBN BV.2.7-31-95. Procedure for
Evaluating Reserves of Sand and Gravel
Deposits.
292. DSTU BV.2.7-32-95. Dense Natural Sand
for Construction Materials, Products,
Structures, and Works. Specifications.
293. DSTU BV.2.7-35-95. Ballast, Sand, and
Ballast-Sand Mix Comprised of Blast-Furnace
and Steel Slag for General Building Works.
Specifications.
294. DSTU BV.2.7-36-95. Bricks and Cement-
Free Walling Units. Specifications.
295. DSTU BV.2.7-37-95. Natural Stone Slabs
and Products. Specifications.
296. DSTU BV.2.7-38-95 (GOST 17171-94).
Heat-Insulating Materials and Products.
Testing Techniques.
297. DSTU BV.2.7-39-95 (GOST 5578-94).
Ballast and Sand Comprised of Ferrous and
Non-Ferrous Metallurgy Slag for Concrete.
Specifications.
298. GOST 18297-96. Cast-Iron Enameled
Sanitary Ware. Specifications.
299. DSTU BV.2.7-43-96. Heavy Concretes.
Specifications BV.2.7-44-96. Revision No.1.
300. DSTU BV.2.7-45-96. Porous Concretes.
Specifications.
301. DSTU BV.2.7-46-96. Cements for General
Building Applications. Specifications.
302. DSTU BV.2.7-46-96. Revision No.1 v161.
DSTU BV.2.7-47-96 (GOST 10060.0-95).
Concretes. Frost-Resistance Measuring
Techniques. General Requirements.
303. DSTU BV.2.7-48-96 (GOST 10060.1-95).
Concretes. Basic (First) Frost-Resistance
Measuring Technique.
304. DSTU BV.2.7-49-96 (GOST 10060.2-95).
Concretes. Accelerated Techniques for
Measuring Frost-Resistance under Repeated
Freezing and Thawing.
305. DSTU BV.2.7-50-96 (GOST 10060.3-95).
Concretes. Dilatometric Technique for
Accelerated Frost-Resistance Measurement.
306. STU BV.2.7-51-96 (GOST 10060.4-95).
Concretes. Structural and Mechanical
Technique for Accelerated Frost-Resistance
Measurement.
215
307. DSTU BV.2.7-56-96 (GOST 10499-95). 323. DSTU BV.2.7-78-98. Sealing Butyl
Glass Staple Fiber Heat-Insulating Products. Regenerating Material. Specifications.
Specifications.
324. DSTU BV.2.7-79-98. Water-Proofing Butyl
308. DSTU BV.2.7-57-96 (GOST 30353-95). Rubber and Bitumen Butyl Rubber Mastics.
Floors. Impact Resistance Testing Technique. Specifications.

309. DSTU BV.2.7-42-97. Construction 325. DSTU BV.2.7-80-98. Lime-Sand Bricks

Materials and Products Water Absorption, and Masonry Units. Specifications.
Density, and Frost Resistance Measuring
326. DSTU BV.2.7-81-98. Petrolized Paving
Techniques.
Viscous Bitumen. Glass and Stone Materials
310. DSTU BV.2.7-58-97 (GOST 30246-94). Adhesion Measuring Technique.
Rolled Sheet Iron with Protective and
327. DSTU BV.2.7-82-99. Plaster Binders.
Ornamental Varnish and Paint Coating for
Specifications (in Ukrainian and Russian
Building Structures. Specifications.
languages).
311. DSTU BV.2.7-59-97. Natural Stone
328. DSTU BV.2.7-83-99 (GOST 2678-94).
Blocks for Production of Facing Products.
Roll Roofing and Water-Proofing Materials.
General Specifications.
329. DSTU BV.2.7-84-99 (GOST 26589-94).
312. DSTU BV.2.7-60-97. Clayey Raw
Roofing and Water-Proofing Mastics. Testing
Materials for Production of Ceramic
Techniques.
Construction Materials. Classification.
330. DSTU BV.2.7-85-99 (GOST 22266-94).
313. DSTU BV.2.7-61-97. Bricks and Building
Sulfate-Resistant Cements. Specifications.
Facing Tiles. Specifications.
331. DSTU BV.2.7-85-99 (GOST 22266-94).
314. DBN V.2.7-64-97. Rules for Application of
Revision No.1. (Sulfate-Resistant Cements.
Chemical Additives in Concretes and Building
Specifications).
Mortar.
332. DSTU BV.2.7-86-99 (GOST 26798.1-96).
315. DSTU BV.2.7-65-97. Additives to
Oil-Well Cements. Testing Techniques.
Concretes and Building Mortar. Classification.
333. DSTU BV.2.7-87-99 (GOST 26798.2-96).
316. DSTU BV.2.7-69-98 (GOST 30459-96).
Types I-G and I-H Oil-Well Cements. Testing
Additives to Concretes. Efficiency Measuring
Techniques.
Techniques.
334. DSTU BV.2.7-88-99 (GOST 1581-96). Oil-
317. DSTU BV.2.7-71-98 (GOST 8269.0-97).
Well Portland Cements. Specifications.
Dense Rock and Industrial Waste Ballast and
Gravel for Building Works. Physical- 335. DSTU BV.2.7-89-99 (GOST 12801-98).
Mechanical Testing Techniques. Materials for Road and Airdrome Building
Based on Organic Binders. Testing
318. DSTU BV.2.7-72-98 (GOST 8269.1-97).
Techniques.
Dense Rock and Industrial Waste Ballast and
Gravel for Building Works. Chemical Analysis 336. DSTU BV.2.7-90-99. Building Lime.
Techniques. Specifications.
319. DSTU BV.2.7-73-98. Polyethylene Pipes 337. DSTU BV.2.7-91-99. Mineral Binders.
for Supplying Flammable Gases. Classification.
Specifications.
338. DSTU BV.2.7-92-99. Concrete Mixes and
320. DSTU BV.2.7-75-98. Dense Natural Paving Cement Concrete Based on Limestone
Ballast and Gravel for Construction Materials, Fillers. Specifications.
Products, Structures, and Works.
Specifications. 339. DSTU BV.2.7-93-2000. Polypropylene
Pipes for Cold and Hot Water Supply
321. DSTU BV.2.7-76-98. Building Sand from Networks. Specifications.
Crushed Rock Screening at Mining and
Enrichment Integrated Works in Ukraine. 340. DSTU BV.2.7-94-2000 (GOST 4640-93).
Specifications. Mineral Wool. Specifications.

322. DSTU BV.2.7-77-98. Sealing Butyl 341. DSTU BV.2.7-95-2000. Gypsum

Rubber Mastics. Specifications. Plasterboard. Specifications.

Prepared by BIZPRO 216

342. DSTU BV.2.7-96-2000 (GOST 7473-94).
Concrete Mixes. Specifications.
343. DSTU BV.2.7-97-2000 (GOST 9573-96).
Mineral Wool Products Based on Synthetic
Binder. Specifications.
344. DSTU BV.2.7-98-2000 (GOST 21880-94).
Mineral Wool Heat-Insulating Matting.
Specifications.
345. DSTU BV.2.7-99-2000 (GOST 22950-95).
Enhanced Rigidity Mineral Wool Slabs Based
on Synthetic Binder. Specifications.
346. DSTU BV.2.7-100-2000. Active Mineral
Additives for Cements. Testing Techniques.
347. DSTU BV.2.7-101-2000 (GOST 30547-
97). Roll Roofing and Water-Proofing
Materials. General Specifications.
348. DSTU BV.2.7-102-2000. Construction
Materials. Decorative Ballast and Sand Made
of Rock Produced by Ukraine’s Mining and
Enrichment Integrated Works and Mines.
Specifications.
349. DSTU BV.2.7-103-2000 (GOST 30307-
95). Building Polymer Adhesive Latex Mastics.
Specifications.
350. DSTU BV.2.7-104-2000. Plaster Stone
and Plaster Anhydrite Stone and Ballast for
Production of Binding Materials. Specifications.
351. DSTU BV.2.7-105-2000 (GOST 7076-99).
Construction Materials and Products.
Technique for Measuring Heat Conductivity
and Thermal Resistance under Steady-State
Heat Regime.
352. GOST 6787-2001. Ceramic Flooring Tiles.
Specifications.
353. DSTU BV.2.5-17-2001. Structured
Polyethylene Pipes for Cold and Hot Water
Networks and for Heating. Specifications.
354. DSTU BV.2.5-17-2001. Structured
Polyethylene Pipes for Cold and Hot Water
Networks and for Heating. Specifications.
355. DSTU BV.2.7-33-2001. Quartz Ferrous
Sand and Fine Fraction for Building Works
Made of Waste of Ukraine’s Mining and
Enrichment Integrated Works. Specifications.
356. DSTU BV.2.7-34-2001. Ballast for
Building Works Made of Rock and Waste of
Dry Magnetic Concentration of Ferruginous
Quartzite of Ukraine’s Mining and Enrichment
Integrated Works and Mines. Specifications.
357. DSTU BV.2.7-107-2001 (GOST 24866-
99). Glued Building-Purpose Glazing Units.
Specifications.
Prepared by BIZPRO
358. DSTU BV.2.7-108-2001 (GOST 30693-
2000). Roofing and Water-Proofing Mastics.
General Specifications.
359. DSTU BV.2.7-109-2001. Carbonate Rock
for Lime Production. Specifications.
360. DSTU BV.2.7-110-2001 (GOST 30698-
2000). Hard Building Glass. Specifications.
361. DSTU BV.2.7-111-2001. Plaster Board for
Partitions and Internal Wall Sheeting.
Specifications.
362. DSTU BV.2.7-110-2002. (GOST 30698-
2000). Hardened Glass. Building
Specifications.
363. DSTU BV.2.7-112-2002. Cements.
General Specifications (in the Russian
language).
364. DSTU BV.2.7-112-2002. Cements.
General Specifications (in the Ukrainian
language).
365. DSTU BV.2.7-112-2002. Cements.
General Specifications. Revision No.2.
366. DSTU BV.2.7-112-2002. Cements.
General Specifications. Revision No.1.
367. DSTU BV.2.7-113-2002 (GOST 25945-
98). Non-Hardening Polymer Sealing Building
Materials and Products. Testing Techniques.
368. DSTU BV.2.7-114-2002 (GOST 10181-
2000). Concrete Mixes. Testing Techniques,
369. DSTU BV.2.7-115-2002 (GOST 30733-
2000). Low-Emission Hard-Coated Glass.
Specifications.
370. DSTU BV.2.7-116-2002 (GOST 30740-
2000). Sealing Materials for Seams of
Airdrome Paving. General Specifications.
371. DSTU BV.2.7-117-2002 (GOST 6787-
2001). Ceramic Flooring Tiles. Specifications.
372. DSTU BV.2.7-118-2002 (GOST 27180-
2001). Ceramic Tiles. Testing Techniques.
373. DSTU BV.2.7-122-2003. Plate Glass.
Specifications.
374. DSTU BV.2.7-123-2003. Laminated
Building Glass. Specifications.
375. DSTU BV.2.7-119-2003. Asphalt
Concrete Mixes and Paving and Airdrome
Asphalt Concrete. Specifications. (In the
Russian language).
376. DSTU BV.2.7-119-2003. Asphalt
Concrete Mixes and Paving and Airdrome
Asphalt Concrete. Specifications. (In the
Ukrainian language).
217
377. DSTU BV.2.7-120-2003. Energy-Saving 379. DSTU BV.2.7-122-2003. Plate Glass.
Additives to Ceramic Building Products. Specifications.
General Specifications.
380. DSTU BV.2.7-123-2004. Laminated
378. DSTU BV.2.7-121-2003. Mineral Powder Building Glass. Specifications, etc.
for Asphalt Concrete Mixes. Specifications.

Prepared by BIZPRO 218

 LIST OF ABBREVIATIONS USED
WTO – World Trade Organization. An economic
association that aims to liberalize international
trade through liquidation of border duties, opening
markets, reduction or minimization of non-tariff,
protectionist measures (such as tax discrimination
and other restrictions for foreign suppliers).
EU – European Union. A political and economic
grouping of European countries.
CES – Common Economic Space. Association for
economic cooperation and free trade between
Russia, Belarus, Kazakhstan, and Ukraine
(Ukraine has limited participation in this union).
CIS – Commonwealth of Independent States.
Political association of former republics of the
USSR (except for the Baltic countries – Lithuania,
Latvia, and Estonia).
GOST – State standard (Gosudarstvennyi
standart). The list of manufacturing conditions and
characteristics of certain product types.
Respective GOSTs are developed by various
organizations, which specialize in particular areas.
The developed GOSTs used to be registered by
USSR’s Gosstandart, and are registered by
Russia’s State Standards Committee now. GOST
requirements are mandatory for implementation
by all state authorities and economic agents.
DSTU – State Standard of Ukraine. List of the
manufacturing conditions and characteristics of
particular types of products introduced in the
territory of Ukraine.
RST UkrSSR – Republic’s Standard of the
Ukrainian Soviet Socialist Republic. The list of the
manufacturing conditions and characteristics for
certain types of products that were developed and
applied in the territory of the former UkrSSR.
JSC – Joint Stock Company. A company whose
statutory capital is divided into a certain number of
shares. The founders of a joint stock company
(shareholders) are not liable for its obligations and
bear the risk of losses related to their activities
within the limits of the shares in their holding. Joint
stock companies may be of the open (OJSC) or
closed (CJSC) type.
OJSC – Open Joint Stock Company. A
commercial organization whose statutory capital is
divided into a certain number of shares, which
confirm the rights of the company’s participants
(shareholders). The shareholders are not liable
under the company’s obligations, and bear the
risk of losses related to their activity within the
limits of the value of their shares in their holding.
The shareholders have the right to alienate their
shares without consent of other shareholders and
the company. An OJSC has the right to conduct
an open subscription to its issued stock and sell it
Prepared by BIZPRO
freely. The number of OJSC shareholders is not
restricted.
CJSC – Closed Joint Stock Company. A
commercial organization established by private
individuals or legal entities (or jointly), with the aim
of generating profits. Formation of a statutory fund
is mandatory for founding a CJSC. The minimum
authorized fund amount cannot be less than 1250
minimum wages.
At the time a CJSC is established, the founders
must contribute at least 50% of their share.
Shares in a CJSC are distributed only among its
founders or other predetermined persons. The
founders (shareholders) of a CJSC are not liable
under company obligations, and the company is
not liable under founders’ (shareholders’)
obligations. Such a company has no right to
conduct a public subscription for its shares or offer
them in any other manner to an unlimited number
of persons. CJSC shareholders have the
preemptive right to buy shares sold by other
shareholders in this company.
CTJSC – Closed Type Joint Stock Company. The
same as CJSC (Closed Joint Stock Company).
Ltd. – Limited Liability Company. An enterprise
that may be established either by private
individuals or legal entities, or by a mixed group of
founders. Formation of a statutory fund is
mandatory for creating a limited company. The
minimum statutory fund amount should not be
less than 100 minimum wages.
At the time of company registration, the founders
should have contributed at least 50% of their
share. It is permitted to contribute property in the
statutory fund. A founder can be excluded from
the company. A limited company’s founders are
not liable under company obligations, and the
company is not liable under founders’ obligations.
SE – State Enterprise. An enterprise of which the
state has full ownership or of which it holds more
than 50%.
PE – Private Enterprise. An enterprise founded by
private individuals or legal entities (there may be
several founders). A significant difference from
other formats is that there is no need to establish
an authorized fund.
JV – Joint Venture. An enterprise that is partly
owned by entrepreneurs from other countries.
UKTZED – Ukrainian classification of goods in
foreign-economic activity. A classification of goods
that cross Ukraine’s national border. This
classification is kept by the Ukrainian Customs
Service.
219
SCP – Statistical Classification of Products.
The State Statistics Committee of Ukraine
keeps this classification.
ISO – International Organization for
Standardization. A set of criteria for
certifying quality management systems.
Prepared by BIZPRO
SNiP (DBN) – State Building Norms and
Regulations; a list of normative building
industry documents in effect in Ukraine.
Minbud – Ministry of Building, Architecture,
and the Housing and Utilities Sector of
Ukraine.
220