Ukraine to get $278 m float glass plant

17:47

Hostomel Auto Logistic Service plans to build a plant for manufacturing glazed float glass in Chernihiv region.

The plant will have capacity to produce 600 tonnes of float glass a day rising to 1,200 tonnes a day within two-three years, said Dmytro Oliynyk, who owns a 34% interest in Hostomel Auto Logistic Service. That is almost twice the capacity of the dominant player on the Ukrainian glass market, Lysychansk Proletariat Glass Factory.

Hostomel Auto Logistic Service is currently seeking financing for the project, which is provisionally expected to cost $278 million. The company will provide some of the investment on its own. It plans to secure the rest by attracting an investor that will take a stake in the project. The construction will take three-five years, depending on the financing terms.

Along with Oliynyk, who is also president of Steklo Ukrainy, a glass industry association, the other owners of Hostomel Auto Logistic Service are Yakiv Hribov (33%), one of the co-owners of Ukrainian distiller Nemiroff, and Ihor Chervonenko (33%) the brother of the first deputy mayor of Kyiv city administration.

Plans to build a $400-million float glass plant in Donetsk region were announced earlier by the Altcom group, which said that imports from China currently account for 70% of Ukraine's glass market.