Vesco set to resume production in Ukraine

The Ukrainian mining group also intends to expand its mining operations in other EU countries following the start-up of a clay quarry in Spain.

Vesco Group, a global leader in the extraction and supply of ceramic raw materials, reported another challenging year in 2023 while anticipating a significant recovery in sales in 2024. In 2023, the group began production in Spain and fulfilled all customer orders, recording revenue of $75.2 million. Italian tile manufacturers were the largest consumers of ceramic raw materials, accounting for 38% of total sales.

Investments to support and develop the Group’s companies totalled $5.3 million, of which $3.6 million was allocated specifically to R&D.  

“In 2023, the demand for ceramic raw materials was still declining in most markets, especially in Europe due to the general economic crisis and military hostilities in Ukraine,” said Dmytro Kostornichenko, Chief Commercial Officer at Vesco. “Nonetheless, we achieved the first significant results in terms of the strategic expansion of the Group’s business in Europe, which began back in 2019. In 2023, through Vesco Clays Spain, the Group launched the Encarnita clay deposit quarry in Spain. Special attention was paid to the R&D roll-out in order to strengthen our expertise in implementing the principles of sustainable subsoil use in all operational processes and further diversification of the mining business.”

In 2024, VESCO Group forecasts a twofold increase in sales volumes compared to the previous year, especially in its main sales markets of Ukraine, Italy, Spain, Turkey and Poland. To facilitate this growth, this year the group will resume mining operations in Ukraine with initial mining volumes of up to 500,000 tonnes (six times lower than pre-war levels), further develop Black Sea transport routes via Ukrainian ports, and increase logistics capacities domestically.  The group intends to continue its investments aimed at expanding mining operations in other EU countries.