Kharkiv Tractor Plant is now profitable

Kharkiv Tractor Plant is now profitable

Kharkiv Tractor Plant, which resumed its work after a long period of down time, came to the end of 2017 with a profit of UAH 48.8 million (as opposed to the loss of UAH 667 million by the end of 2016). According to XTZ management, thanks to the arrival of a new investor - Aleksandr Yaroslavskyy's DCH group - the enterprise operates stably and develops at a planned pace.

"After the forced downtime in 2016, production was restored in the shortest term. In February 2017, the first tractor came off the assembly line, and by the end of the year 794 units of machinery were produced," the plant reports. 

The company's products are sold both in Ukraine and abroad: in Moldova, Kazakhstan, Armenia, Bulgaria, Poland, New Zealand, Belarus, etc. The search for new markets continues.

The enterprise says, that renewal of the equipment park and the modernization of production facilities will be the key goal for 2018-2019. Investor - Aleksandr Yaroslavskyy – has allocated more than UAH 300 million for this purpose. At the same time, XTZ General Director Andriy Koval notes that this year the plant will be focusing on improving the manufactured products according to consumers' preferences.

"The production capacity ranges from 80 to 150 tractors per month, the peak capacity of the plant makes it possible to produce up to 180 machines per month, and the plant is planning to produce more than 800 tractors in 2018. At present the enterprise has already formed a portfolio of orders, implying the sale of about 300 tractors in the domestic and more than 500 tractors in foreign markets," the plant's management notes.

The company participates in the state program, according to which the domestic agricultural enterprises will be compensated for 25-40% of the cost of tractors produced by XTZ starting from February 2018. Earlier, compensation was 20%, in this program the plant sold 87 tractors for a total of UAH 127.7 million in the second half of 2017.

As it was informed earlier, the largest machine-building enterprise, starting its history in 1930, was acquired by Aleksandr Yaroslavskyy in 2016. At that time the plant was going through a long crisis, but thanks to the activity and investments of the businessman, the enterprise was able to resume its work. After the machine-building giant, the beneficiary of the DCH group acquired a number of other industrial assets. The total amount of investments made by the businessman in projects of various industry affiliations in Kharkiv region alone exceeded $ 1 billion (including $ 300 million in Kharkiv's preparation for Euro 2012). Aleksandr Yaroslavskyy is one of TOP-10 Ukrainian entrepreneurs according to Forbes.