Stalkanat works at half capacity, reorienting supplies to domestic market due to falling demand in Europe

KYIV. Nov 3 (Interfax-Ukraine) – PrJSC Production Association Stalkanat (Odesa) is currently operating at half of its capacity due to the deterioration of the situation in foreign markets and reorienting supplies mainly to the domestic market.

Serhiy Lavrynenko, director general of Stalkanat, told Interfax-Ukraine that the company is forced to refuse a number of orders if their fulfillment is connected with difficulties in wartime conditions.

"The war affects operation of the enterprise with a number of restrictions, in particular, there is an insufficient supply of electricity and logistical problems. Also, due to the war, we had to cancel a multi-million dollar investment project to expand production. We purchased a building next to the current production facility and planned to install equipment there, there were agreements with foreign suppliers," the source said.

However, the plans had to be cancelled.

According to him, the company is also experiencing problems with VAT refunds for exported products.

"VAT was refunded to us only for January," the top manager said.

As reported, the general meeting of shareholders held on September 3, 2021 decided to separate from PrJSC Stalkanat-Silur and create a new company – PrJSC Stalkanat with the transfer of part of the property, rights and obligations to it in accordance with the approved distribution balance.