28 Jul 2023 10:11

Ukraine's Kovalska Group gets 27-mln-euro loan from Dutch Invest International

MOSCOW. July 28 (Interfax) - Ukraine's Kovalska Industrial and Construction Group has received a ten-year loan of 27 million euros from Invest International (the Netherlands) to develop the production of aerated concrete blocks and panels at a plant in Rozvadov in the Lvov region, Kovalska Group CEO Sergei Pilipenko said.

"These vital investments, which have been supported by Dutch Good Growth Fund and the government of the Netherlands, will enable the company to introduce the technology for producing environmentally friendly Aircrete Europe aerated concrete blocks and panels. This technology will be used at the new plant that is currently under construction in Rozvadov in the Lvov region," Ukrainian media outlets quoted Pilipenko as saying in a social media post.

He put the overall amount of investments in the project at 42 million euros.

As reported, in 2020 Kovalska Group finalized a 63-million-hryvnia deal to acquire Rozvadov Construction Materials LLC, which owns production capacities located on about 140 hectares.

In early 2022, Kovalska Group started to build two enterprises in the Lvov region, one for the production of dry construction mixtures under the Siltek brand, and the other for the production of concrete, with total investments over 60 million euros at the first stage. The company also planned to resume a project to build an aerated concrete plant in Rozvadov.

Kovalska Group has been operating in the construction market of Ukraine since 1956, and it incorporates more than 20 enterprises that specialize in extracting raw materials and manufacturing products and construction materials. Its products are represented by a number of brands, including Concrete by Kovalska, Avenue and Siltek. The group's enterprises operate in the Kiev, Zhitomir, Lvov and Chernigov regions. Its aerated concrete plant in the Kherson region is currently not functioning.

The group also includes the Kovalska Real Estate company, which pursues housing construction projects in Kiev. Its portfolio includes more than 20 finished residential buildings.