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2023 results: VESCO Group investing in R&D and completing full scope of land reclamation activities on over 100 hectares


In 2023, VESCO Group fulfilled all customer orders for the supply of ceramic raw materials and launched its production in Spain. The largest consumers of ceramic raw materials were Italian tile manufacturers, accounting for 38% of total sales. At the end of the year, the Group recorded $75.2 million in gross revenue. Investments to support and develop the Group’s companies totalled $5.3 million, of which $3.6 million were allocated specifically to R&D.

“In 2023, the demand for ceramic raw materials was still on a decline in most markets, especially in Europe due to the general economic crisis and military hostilities in Ukraine. However, we managed to achieve the first significant results in the strategic expansion of the Group’s business in Europe that began back in 2019,” says Dmytro Kostornichenko, Chief Commercial Officer. “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 to strengthen our expertise in implementing the principles of sustainable subsoil use in all operational processes and further diversification of the mining business.”

VESCO Group forecasts a twofold increase in sales volumes compared to the previous year. The main sales markets are Ukraine, Italy, Spain, Turkey, and Poland. To facilitate this growth, in 2024 VESCO Group will resume mining operations in Ukraine, further develop Black Sea transport routes via Ukrainian ports, and increase logistics capacities domestically.

While mining volumes of up to 500,000 tonnes represent over a six-fold decrease from pre-war levels, this output, coupled with existing stockpiles, allows VESCO Group to regain flexibility in its product portfolio and provide ceramic raw materials tailored to individual customer demand. VESCO Group intends to explore further opportunities to develop its product portfolio and plans to keep investing in expanding mining operations in other EU countries.

An important component for VESCO Group in achieving sustainable development goals is minimizing the impact of production activities on the environment. Therefore, the transfer of lands back to lessors after completing all stages of reclamation did not stop last year. In particular, in 2023, 108 hectares of restored lands were handed over to Ukrainian communities, including 95 hectares of pastures and 13.1 hectares of forest plantations. Restoration efforts for this 108-hectare area incurred nearly $3 million in cumulative costs over the preceding years.