chemical manufacturer Struggling to cope with rising wage costs everywhere raw material pricesAnd big energy bills, so how are Ukrainians chemical companies still alive?
Case Study 1: Electrogaschem
electrogaschem is one of the lucky chemical manufacturer in Ukraine because its production facilities are located far from the fighting in the north-western Zhytomyr region. “We have retained all production facilities and personnel,” a company spokesperson explains, Mikhail Andrushchenko,
This means that it has been able to maintain production Antioxidants and Emulsifiers It supplies to the food, cosmetic and pharmaceutical sectors.
“we have Stocks of raw materials and finished products” notes Andrushchenko, “[So]We continue to ship products to the domestic market and have been able to continue exporting.”
However, some of its customers have not been so lucky. “Our customer Mondelēz [a snacks and confectionary manufacturer]in Trostyants in the Sumy region, has stopped production because of serious damage,” says Andrushchenko. “Some factories closed because the supply chain The fight was interrupted. Some continue to function but production has come down significantly.”
With fewer businesses operating throughout Ukraine, electrogaschem Will experience some tough months ahead, even if it has avoided the worst of the struggle. Exports have also been disrupted, as the front lines of the battle have formed some impenetrable trade blocs.
“Customers from Central Asia are ready to buy our products, but there is no possibility of delivery except in Russia,” says Andrushenko. Adding to this, “It is currently not possible to sell to Europe due to the large number of sanctions.”
Case Study 2: Jeevan Rasayan
whereas life chemistry It is headquartered in Ontario, Canada, with all of its production facilities and most of its important R&D operations located in Kyiv.
Here the company designs and synthesizes Advanced Chemical Building Blockssuch as fine reagent and chemical intermediate, It has also developed a proprietary collection of over 7,700 dedicated screening libraries synthetic compoundAlong with providing a custom synthesis program tailor made chemical compound,
Everything changed when the Russians invaded, as all production and research were immediately halted. Even so, the company was lucky that it still had some sales proceeds.
“We were lucky because we have inventory in Germany and the US which has allowed us to fulfill orders,” says Vasily Pinchuk, Ontario-based vice president of marketing and sales. “Still, the orders are stacking up.”
Due to the risks involved, most regular delivery companies refuse to come to Kyiv, so the company is forced to switch to Ukrainian courier services. “It’s Not Perfect But It’s Working”
“Most customers have agreed to wait, although some small orders have been cancelled, obviously they need molecules quickly,” explains Pinchuk. ,[For the other orders]We are starting to weigh them from our stock in Kyiv and distribute them.”
As the Russians withdrew from Kyiv, work at the company’s facilities gradually returned to something more normal, and with the reopening of the laboratory, chemical synthesis has also started again.
‘This means we can start making new products raw material We currently have stock. But we are also looking at how to ship new raw material,
“We’re lucky,” says Pinchuk. “Due to our inventory elsewhere we have only taken a minor hit and have been able to continue selling. If the Ukrainian army can hold the Russians back from Kyiv, we can slowly go back like normal. Every day it has gotten a little safer, but they may try to make another push in Kyiv – we don’t know. We were lucky that Kyiv was not as bad as other cities; There has been no carpet bombing and services continued. ,
Such are the depressing conditions for businesses in Ukraine. struggle to keep chemical production going, working hard to keep up delivery methodHoping that customers don’t get caught up in the fight, and being grateful that your home or workplace hasn’t been bombarded with carpet.
And you think it’s hard for your company.