‘Why the HGI plant in Ukraine remains open’ – What the Greek industrialist says

By Matina Harkoftaki

The factory owned by the Hellenic Glass Industry (formerly Yioula), owned by the Voulgarakis family, in the Ukrainian city of Zhytomyr, located 120 kilometers west of Kiev, continues to operate normally, despite the state of war in which Ukraine has found itself. “Until the natural gas and electricity supply is completely cut off, the factory will remain in operation,” Anastasios Voulgarakis, one of the shareholders of the Greek company, told Capital.gr, clarifying that the management decided not to suspend the production process despite the difficult conditions that prevail due to the will of the employees, who want to continue working, remaining in their position.

“They are a high-minded people. The staff themselves remain in the factory and do not want to leave, despite the fact that many of the workers even have three children, who are currently fighting,” Voulgarakis added. and continues: “So we also decided to stay open, we do not know, however, for how long.”

The management of the company is constantly in contact with its associates in Ukraine, but, as Mr. Voulgarakis says, “unfortunately we can not do anything, we are just following the developments”.

1 million glass vials are produced per day

The factory, which employs about 250 people, has been operating since 2005 in Zhytomyr, a provincial town with a population of 400,000, which, although attacked, is not yet as large as in other Ukrainian cities. This, however, may change immediately. At HGI’s facilities, approximately 1 million glass vials are produced daily, which are directed to the pharmaceutical industry and used for drug packaging. Under normal circumstances, 70% of the total production is channeled to European Union countries while the remaining 30% is absorbed by the internal market, covering the needs of the country. At present and for an unknown period of time, the transport of glass vials to other countries is “frozen” and therefore the quantities produced are now channeled exclusively within the Ukrainian borders.

The plant’s activity in Ukraine contributes 50% to HGI’s turnover, while the rest comes from the second plant it maintains in Bulgaria.

We remind you that about six years ago, the Voulgaraki family decided to sell the Yioula glassware to the Portuguese company BA Vidro and instead of a monetary price, it kept under control the factories that produce glasses in Bulgaria and glass pharmaceutical packaging in Ukraine.

This is not the only company of Greek interests that has a presence in the Ukrainian market. These include Coca-Cola HBC and the Gr. Sarantis group with its subsidiary Ergopack, which have temporarily suspended the operation of their factories in Ukraine. In particular, Coca-Cola HBC has been operating in Kyiv for more than 20 years and maintains trade relations with 1,400 local partners and suppliers in the Ukrainian market. On the other hand, the Gr. Sarantis group has activities in Ukraine and Russia, through its 100% subsidiaries Ergopack and Hoztorg respectively. Last year, Ergopack’s sales accounted for 6.7% of the listed company’s total sales, while Hoztorg LLC’s turnover in 2021 accounted for 0.5%.