Yaroslav Nitsak, CEO of GEA in Ukraine, told LDaily about how the goals and challenges facing his company have been adjusted by a full-scale war, how the business activity is being restored in the de-occupied territories, and what the prospects look like in this context
LDaily: What is the main area of activity of the company in Ukraine?
Y. Nitsak: In Ukraine, products and technologies of all five divisions of the GEA group are represented. We design, supply, implement, and then service high-tech equipment that embodies the best world technologies in the food, dairy, pharmaceutical, chemical, and other industries. We also supply modern milking equipment for Ukrainian industrial farms.
LDaily: Describe some of the key products or services offered by the company in Ukraine?
Y. Nitsak: We manufacture, supply, and service industrial equipment, as well as design technological lines for the processing industry. The main share of GEA group’s business falls on the food industry, but it is not limited to it – everything related to processing of liquids and powders, dry materials – can be processed on our machines or technological lines. We are also a manufacturer and supplier of industrial refrigeration systems, milking equipment for animal husbandry complexes, and other products and services for industrial farms. If necessary, we work on the project turnkey, starting with engineering, design and further – supply, commissioning work, support and maintenance throughout the entire life cycle of our equipment, which can last up to 25-30 years. The oldest GEA machines in Ukraine are still in operation and successfully work since the late 1970s! We supply them with spare parts and service them. Therefore, these are extremely reliable and durable technologies with quite a large life cycle.
LDaily: How has the full-scale war affected the company? How did the company adapt to working under war conditions?
Y. Nitsak: Of course, the first months were very difficult for everyone in Ukraine, and the GEA team was no exception. But we, fortunately, coped with all the challenges and maintained our activities. The most important thing is that we continued to support customers, and hundreds of machines, hundreds of pieces of equipment are operating in Ukraine. Because now, as never before, customers need our support. Therefore, we practically did not stop working in Ukraine. We have fully maintained our presence, all the assets, and primarily the team. We also took all necessary measures to increase the stock of spare parts so that at any moment, regardless of all the challenges, blackouts or logistical problems, the required spare parts would always be available in Ukraine. This ensures that our customers do not halt technological processes, and the equipment continues to operate.
Speaking of liberated territories, as soon as an area is physically accessible and basic safety conditions are fulfilled, our engineers go there to restore the customer’s production. Often, even before regular power supply and communication are restored, engineers are already working there with satellite phones and generators, starting the equipment to restore infrastructure and production.
LDaily: How has the supply chain of this equipment changed?
Y. Nitsak: It has not changed since the pre-war period. The equipment is mainly produced in Western countries, primarily in Germany, but also in Denmark, the Netherlands, and other European countries. Of course, everything is now being delivered by land, not by sea. But it continues to be delivered – there are no insurmountable factors. At the beginning of the war, there were delays because there were problems with fuel and queues at the borders. But now everything that can be delivered by road is being delivered without any significant interruptions and problems.
LDaily: How difficult is it to attract new customers now? Are there many at all? Is there demand?
Y. Nitsak: There is definitely a demand, the business is alive, we have hundreds of clients. If we talk about new equipment, it is mainly ordered by Ukrainian entrepreneurs, businessmen who have adapted to the current conditions, and many of them even continue to invest in new production with our technologies. The search for new clients has not changed much since pre-war times. Of course, there are fewer forums or specialized business events where one could talk to representatives of a particular industry and meet new clients. But over the years of work in Ukraine, we have built up a large customer base and we primarily try to support our current clients as best as possible. They are our best advertisement and the most valuable promoters of our technology in Ukraine.
LDaily: You joined the company during the war, a very difficult time. What are the goals and challenges you face now?
Y. Nitsak: There is no ideal time for changes. Although the decision to transition was made before the war, it had to be paused for obvious reasons. As soon as it became possible, I was pleased to join the GEA team
Speaking about goals, if before the war they were growth, development, and business expansion, now the focus has shifted towards preserving the team, maintaining potential, and more focused support of clients. When the country experiences blackouts and some clients, unfortunately, fall under occupation, we have to take certain crisis management measures. These are the unique challenges now. However, we also think about post-war reconstruction of Ukraine. We are preparing for it, for future growth. Therefore, the goals can be described as follows: maintaining potential, supporting clients, and preparing for future growth.
LDaily: What projects and initiatives are you working on now?
Y. Nitsak: Around the second half of last year, the dynamics of new projects largely resumed. We have a lot of inquiries. Since the beginning of this year, we have already contracted a significant number of industrial machines in various regions of Ukraine, with different clients, in various industries. The most impressive example is the poultry factory directly under Nikopol, which continues to invest and, together with GEA, is developing a state-of-the-art industrial cooling system. Such examples inspire, because the client is located in a very dangerous area, which is regularly shelled, not far from the occupied Energodar. However, despite this, the enterprise not only works, but also continues to invest.
We also have examples where farm households, having just been liberated from occupation, contact us and ask to restore equipment. And we help them with this. Just as Kharkiv region was liberated, literally before regular electricity supply was restored, our engineers already went and launched milking equipment there beyond the Oskil River. At that moment, even some bridges were blown up, there were no regular crossings, electricians, and communications, but our equipment was already working.
LDaily: How do you motivate employees? Now is a difficult time, there is no certainty about tomorrow. How do you support their spirit?
Y. Nitsak: GEA in Ukraine is a very friendly and motivated team. And when we see how our clients work, how they, despite all the challenges, continue to expand and invest, it motivates both me and the entire team. How can we give up when we observe that people believe in Ukraine, that businesses are investing, expanding? Of course, this inspires us. We work in a very dynamic, vibrant industry. Every day we see inspiring examples of those Ukrainian businesses that have demonstrated extraordinary flexibility and resilience during this very difficult time for everyone.
LDaily: How does the company ensure product quality and safety during wartime operations?
Y. Nitsak: Quality is ensured primarily by two factors. First, the products are made in Europe in compliance with all quality standards. Second, everything is implemented by very competent engineers here. In Ukraine, we have the strongest, most competent engineering team in this field. All our engineers are constantly improving their qualifications and solving numerous non-standard tasks, especially under current circumstances. If the equipment is made in Germany, Denmark, the Netherlands in modern certified production facilities, and in Ukraine we competently implement and maintain it, then this is the guarantee of the high quality of our equipment and technological solutions.
LDaily: How do you plan to develop the business after the end of the war? What opportunities and challenges do you foresee?
Y. Nitsak: First and foremost, our company, the GEA Group, believes in Ukraine and its future potential. We maintain a full presence. We believe that our technologies are highly relevant to our economy. For instance, our GDP consumes 2.5-3 times more energy per GDP unit than the GDP of European countries, Poland or Germany. What does it tell us? It indicates that our production is not as efficient as in Europe, often it operates on outdated technologies. And precisely GEA technologies could be highly relevant in future economic modernization as such. Not only ‘greenfield’ projects, the building of new production facilities, but also modernization of existing ones. Any production facilities that will generate added value here, in Ukraine. That is, our technologies are aimed at processing the raw materials that we mostly export now, especially agricultural, which is currently problematic. Our technologies allow processing into value-added products, which are easier to transport, have a longer shelf life, and are more expensive. So, to not process somewhere else using our Ukrainian raw materials, but to process Ukrainian raw materials here and export the finished product.
It is important to say that our technologies are certified and provide a choice to our customers: either to sell their products in the domestic market or export. Because with our technologies, the product will have the highest quality and comply with all norms and standards in Europe and worldwide.
The challenges we face are the challenges of our customers. These are accessible financing, logistics, population decline, labor shortage, and rule of law. But our country has enormous potential, which will be released after the end of the war, after stable peace comes, which will allow investments and ensure safety for both citizens and investors. And our customers – both Ukrainian investors and international groups, which demonstrated extraordinary flexibility and courage during this war, will undoubtedly cope with the challenges that will arise during the post-war reconstruction of Ukraine.
