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Ukrainian Glass Sparkles in its Debut at the World’s Premier Home Furnishings Show 05.09.2005

   

Eastern Europe has long been recognized for the high level of craftsmanship of its glass and crystal. The Czech Republic is probably the best-known producer of glass products, with traditions traced back to the twelfth century. Other countries in the region also have strong capabilities in glass production, though their exposure to global markets has been limited, due mainly to a lack of access to external market knowledge, market demands, and market intermediaries. However, for Ukraine’s glass industry, all that is changing.

At the bi-annual International Home Furnishings Market, held in April 2005 in High Point, NC, unique glass products from three Ukrainian producers were on display for the first time. Artistic glass from the producers was presented by Phillips Collection, Cheyenne Home Furnishings and Wildwood Lamps, American companies that source their products from around the world; focusing on finding high-value, artistic, and marketable products to satisfy a large cadre of global buyers who rely on them for world-class products. Buyers that attended the show were very interested in the Ukrainian glass and now the producers are working on fulfilling preliminary orders.

The speed at which the producers entered a new, very competitive market is most impressive. In less than a year, beginning with identifying competitive sectors of the economy through BIZPRO’s diagnosis Ukraine: Competing in the Global Economy: Strategies for Success, they were able to enter the US market.  Normally, penetrating a new market is a lengthy, costly, and arduous process – involving assessment, design, production, promotion and – if it all works out – sales. In order to demonstrate to all Ukrainian producers what BIZPRO knew from its assessment, BIZPRO needed to identify producers with the most potential, improve their production capacity, assist in production efficiency, and work with the factories to design products with appeal to specific markets outside their traditional regional reach.

Yaroslav Dzhumalo, director of Svitlovodsk glass factory SKLO, notes: ”We are very grateful to BIZPRO for our successes and we think it’s a good lesson for the entire industry. The U.S. home furnishings market is extremely challenging and highly competitive. With BIZPRO assistance we were able to demonstrate the quality of our products and the production capabilities of the factory at High Point in October 2004, then we worked with BIZPRO to develop new products and packaging targeting American customers specifically. After the High Point show in April 2005 we got our first orders and we have confidence that we can now build a long-term relationship  with our new American partners.”

And this is just the beginning. The successful Ukrainian glass producers are preparing for the October 2005 High Point show, where their products will be in even more showrooms. They are also getting ready for their European trade show debut, at Europe’s biggest home furnishings exhibition, Tendence Lifestyle, in Frankfurt in August. In the meantime, BIZPRO is expanding its assistance to more Ukrainian manufacturers, disseminating lessons to all enterprises operating in the sector and building the industry’s capacity. Concurrently, BIZPRO works with businesses and associations in the sector in order to advocate for improvements to the business environment.

In addition to home furnishings sector, BIZPRO continues to work to improve the competitiveness of furniture, textiles and apparel, tourism, processed fruits and vegetables, and information and communication technology (ICT), providing Ukrainian enterprises assistance necessary to help them understand what it takes to compete in global markets and build a sustainable approach to global competition.

Yaroslav Dzhumalo, director of
Svitlovodsk glass factory SKLO,
holds Phillips Collection 2005
brochure and Svitlovodsk vase –
a face of PC collection

For more information, please visit BIZPRO Website, www.bizpro.org.ua


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For investors: new entry
Novokahovskyi Lime-Sand Brick Plant

Purposes of company: Investments
Company description:

Market Overview:  Construction volume is increasing 20-25% annually, creating an increased demand for high quality façade bricks. The industrial capacity of façade bricks is estimated at 200 million bricks per year. In 2006, a construction boom is expected in southern Ukraine, where the plant is located. The product is used mainly by construction companies and private companies.

Project Overview:

  • Using KSE-400 (Germany)
  • Equipment supplier offers trainings for the buyer’s staff
  • Can produce 30 million bricks per year including high quality hollow façade bricks, ordinary bricks, molded bricks, white and colored bricks

Competitive Advantages:

  • Production of lime-sand bricks is considerably more energy efficient than the production of ceramic bricks. Moreover, the project envisions the reconstruction of one of the two pit-type 50-ton lime-burning kilns; using coal, automatic blending, loading, and burning will save on gas
  • Plant produces its own lime; a sand-pit is located close to the plant
  • No high quality lime-sand hollow bricks are produced in southern Ukraine
  • Due to the considerable decrease in the weight of the bricks, delivery and transportation becomes much easier; bricks can be transported by auto, railway (via the plant’s rail track), or by water (a river port is 8 km away)
    Investment Project Progress:  Market research has been conducted

Key Financials:

  • Total Investment - € 1.5 mln
  • Investment Needed - € 1.5 mln
  • Payoff period - 5 years

Branch: Construction materials
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Purposes of company: Investments
Company description:   
Branch: Construction materials
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For Buyers: new entry
Lana Private Manufacturing-Commercial Firm

Purposes of company: Export
Company description:

Lana produces a wide variety of wood furnishings for the discerning customer. Lana specializes in high-quality, premium home furnishings created from solid wood, including: furniture, entry and interior doors, parquet, furniture façades, interior decorations, and staircases. Buyers can choose from distinctive creations of Lana’s innovative design team or provide their own designs. No matter how intricate the design, Lana’s highly-trained specialists will surpass their customers’ expectations.

Lana’s experienced team tightly controls the manufacturing process from start to finish, from selection and processing of only the finest lumber to careful inspection and meticulous hand-finishing of each item produced.
 
Lana is a family-owned business. This company has been successful in Ukraine and the countries of the former Soviet Union for over 15 years. The key to Lana’s success is dedication to traditional business values: excellent customer service, high-quality craftsmanship, and consistently delivering on commitments.
 
Lana creates unique and interesting designs. The company has flexible production and can make adjustments quickly to fill new orders. Lana’s marketing service has qualified specialists with good customer service skills.

The company employs highly qualified specialists to create handmade products with unique designs. The company has mastered a full woodworking cycle, from lumber to the finished product. The company has developed its own methods for drying and sawing wood. Valuable and rare types of wood are used.


Branch: Furniture
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Aliot, Ltd.

Purposes of company: Export
Company description:

Aliot, Ltd has been active in the Ukrainian furniture market since 1999. Aliot is a professional manufacturer of interior furniture for offices and homes. The distinguishing feature of this company’s production is a harmonious combination of functionality and aesthetics together with reasonable prices.

Aliot’s specialists work with European equipment that enables them to produce high-quality modern furniture. The aim of the company is to perfect and develop the furniture industry in order to satisfy the growing requirements of their customers and partners.

A combination of competent marketing policies and a team of professionals with a high level of technical training and practical skills ensure the constant development of the Aliot company.


Branch: Furniture
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