Against the odds: Grand Boats exports strength from its Ukraine factory
In February 2022 Russia launched a full-scale invasion of Ukraine. It involved military action across multiple fronts, including from Belarus, Russia, and Crimea and followed years of conflict in eastern Ukraine between Ukrainian forces and Russian-backed separatists.
Kharkiv, the home of Grand Boats since 2001, was a focal point of the initial Russian offensive. The city experienced heavy shelling and close-quarter combat. After Russian forces failed to seize it, Kharkiv remains a target for shelling and missile attacks. Strikes occur almost daily.
“We were directly impacted from the very offset of the war,” says Nick Belousov, marketing & sales manager for Grand Boats. “Our factory was forced to close for six weeks in January 2022 when the invasion first began.” The factory, based right on the border next to Russia, specialises in high-end RIBs. Its offer includes family RIBs, yacht tenders, and commercial vessels.
“But we didn’t put on hold any of our dreams and goals,” Belousov continues.
“We quietly reopened and since recommenced production, we’ve been achieving almost pre-war levels. There are other marine businesses based in Kharkiv who unfortunately have not been so fortunate, and who have been directly hit by attacks, but even amongst these businesses there are great stories of resilience and businesses reopening on the other side.”
Second factory opened – away from conflict
While Grand Boats’ primary manufacturing premises remains in Kharkiv, the company’s established a second factory near the city of Lviv. That’s right next to the border with Poland, and includes housing and extensive production facilities.
“It’s located on the opposite side of our massive country. It’s enabling us to protect and preserve our legacy and make sure that nothing will happen to the brand, our intellectual property, our products and our service — no matter what,” says Belousov.
“The war has of course disrupted our operations, but thankfully we continue to be able to deliver production levels to pre-war standard.
“Since the war, priorities have shifted with more immediate concerns faced by families in our country. However, the international side of the marine sector — especially exports — continues to function.
“Our primary focus is exports, which are at nearly 90 per cent of pre-war levels. Certain segments – such as domestic leisure boating – have of course slowed,” Belousov (pictured below) says wryly.
New product released during Ukrainian war
That said, last year (2024) Grand Boats still announced its first ‘war-time release’. That’s a mid-size family RIB Golden Line G680 (details are on the company’s website) and comes on top of what Belousov describes as “a bunch of new upgrades to the existing models.” He says all of this activity has helped to reassure dealers and their customers that Grand is resilient and has the ability to deliver.
“We haven’t been able to innovate and develop as much as in ordinary times, but we still have been able to develop some new things. Also, alongside a new electronics partnership with Scanstrut, during this tough time we’ve also opened distribution in Australia, Italy and Baltics, as well as got a few new big dealers in Spain.
“Despite the challenges, we’ve hit some real progress milestones in these last few years. And today, we are just a few weeks away from our new BIG release.” An announcement on what that looks like is expected shortly.
Support for Ukrainian boatbuilding businesses: credit, stock boats and housing
Belousov says the company has, and is, receiving unprecedented support from its wide network – that’s been the case since the start of the war.
“Our distributors and dealers around the world have stood by us, providing support in various ways. Some of our distributors provided accommodation for the fleeing family members of our colleagues.
“The network has all still been taking stock boats, regardless of all the risks, so we faced nearly zero orders cancelled. That was especially important during the first year of the war. It’s also worth mentioning that some of our suppliers have been very supportive and helpful.”
Focus on boatbuilder adaptability during war in Ukraine
Despite the terrible and ongoing situation in Ukraine Belousov says many boatbuilders have “continued working under challenging circumstances, driven by a commitment to their craft and their country.
“The war has brought uncertainty and stress, disrupting long-standing businesses and impacting what has been a strong, growing sector in our country. For many businesses, there’s been a shift from innovation and growth to focusing on adaptability, and supporting the national effort.
“However, the marine sector in Ukraine is known for its boat building passion and strong tradition of craftsmanship. In many cases, the war has made us more determined to preserve that legacy and continue to thrive.
“There’s always been a sense of resilience and pride among Ukrainian boatbuilders and engineers.”
He returns to the theme of adaptability again and again — whether with stock, supply chains, and / or blockades.
“There have of course been challenges with supply lines and having to adapt our usual routes of getting stock in and out of the country.
“Things are always changing, but we have learnt to be adaptive with moving stock and supply without impacting our dealers and customers.
“I guess the biggest challenge was the Black Sea blockage, which led to our inability to ship containers directly from Ukraine, but we did sort that out as well and now are shipping our long-route orders from nearest European ports. Another difficulty we faced was the low trucking availability, especially from European forwarders. That obviously had a massive downfall, but thanks to our brave and resilient Ukrainian based companies and forwarders, we have overcome that issue as well.
“Our suppliers have been super supportive by not only giving us better credit lines, but also trying to keep their prices the lowest for us for as long as possible. Another good thing that we’ve started to notice recently is the transportation costs getting somewhat back to normal. We now can see a steady trend in trucking prices going down after the spike back in 2022.”
Priority to optimise production and supply lines
“Although costs increased, nothing has really changed in the way we approach it [business]. Our main priority has always been to fight the increase for as long as possible by optimising production and supply lines.”
Grand Boats also welcomes the fact that many countries are offering tax free imports on Ukrainian products, “which means our customers haven’t felt the impact of increasing costs as badly,” says Belousov.
Customers standing by Ukrainian-made products
Customers have been understanding and supportive as well. At boat shows and events “many ask what they can do to help. For some, it made them aware of the Ukrainian heritage of a brand they admire and love, and so makes them feel even more proud to be a Grand owner. It has made them feel more connected to our brand, and they often express admiration for the quality and resilience of the people, builders and engineers behind the brand.
“From what we hear from our dealers at boat shows, there is genuine interest not just in the boat themselves, but the people here at the factory, with many conversations with visitors who want to understand the story of the brand and how we continue to deliver through such difficult times.
“In the long term, we believe our customers increasingly appreciate and will continue to stand by Ukrainian-made products. In this way, in the long-term I think we have strengthened our passion as a brand to want to preserve our proud heritage and Ukrainian boat building tradition.”
Complex diplomacy to end war in Ukraine, but urgency needed
With the war now in its forty-first month, Grand Boats is calling on global leaders to show urgency.
“It’s hard not to feel frustration when progress feels slow and there is ongoing loss of life. Diplomacy is obviously complex, but personally I hope global leaders continue to seek an end to this conflict and show urgency, not least because the cost and impact to human lives is felt by real people every day.
“Most of all, I hope the world keeps Ukraine in its focus, with meaningful support and conversation that leads to lasting peace.
“Ukrainian boatbuilders and specialists are very skilled and even in the face of adversity, our industry continues to prove its strength – we’re not just surviving as a market, but coming back stronger.
“The challenges that the marine industry – and other industries – in our country are facing are immense, but what empowers us as a company, industry and country is our strength and resilience.”
Leave a Reply