High market demand causes deficit of high-quality aggregates
In 2005, the crushed stone market saw rapid growth due to construction of new infrastructure facilities. At the same time, the country’s production capacity wasn’t able to completely satisfy the market demand; so by the end of 2007, the crushed stone deficit was over 30% of the total production capacity. Based on studies* of the Ukrainian crushed stone market, such an imbalance between supply and demand was caused by the poor condition of the equipment at the existing plants: about 40% of the plants were working at only half their capacity. Another factor in the deficit is the low degree of resources development — only 300 of 630 registered deposits have been developed.
One of the companies that faced the issue of a high-quality aggregates deficit was Kovalska Industrial-Construction Group. In an effort to resolve the deficit, the Group acquired Omelyanivskiy Quarry LLC in 2000. It had been established back in the Soviet era, so by the time of its acquisition all its equipment had become worn-out and outdated.