Reka Rubber set to start production in Ukraine amid steady results

Aura, Finland – Reka Industrial is preparing to start production at a newly acquired facility in Ukraine in early 2027 as its rubber business reported higher volumes and sales in the first half of 2026.

Reka Rubber’s subsidiary in Ukraine, which was established earlier this year, has acquired production facilities in Novoselytsja, said the group in its first half results published 6 Aug.

With renovation work set to begin shortly, Reka plans to start manufacturing silicone products at the site in early 2027, subject to the necessary modifications.

Reka, explained president and CEO Sari Tulander, be relocating silicone product manufacturing from Poland to Ukraine.

The move, she said, frees up "much-needed space" to increase the production of black hoses at the Polish Dopiewo factory.

Reka also announced that it had decided in June to acquire two new injection moulding machines for its Aura factory and a new braiding machine for the Dopiewo factory in Poland.

The Ukraine investment follows a January decision by Reka Rubber to establish a wholly owned Ukrainian subsidiary as part of its strategy to increase production capacity and support long-term growth. (ERJ report)

Alongside capacity expansion, Reka said its sales organisation has focused on new customer acquisition.

“Our sales organisation, strengthened over the past year, has focused on active customer acquisition,” Tulander said. “This effort has already yielded results, which will be reflected in turnover later.”

Reka Rubber’s turnover for the six months ended 30 June increased 7.3% year-on-year to €17.5 million, while earnings (EBITDA) edged down 0.5% to €1.9 million, from €2.0 million a year earlier.

The group, which currently only includes the rubber operations, reported a 0.7% increase in earnings to €1.5 million, from €1.4 million, on 7.3% higher sales of €17.5 million.

Reka linked the Rubber segment's revenue increase to both higher volumes and a partial rise in sales prices.

Customer demand varied significantly, Tulander said, with the mining industry increasing its order volumes, while volumes in some other sectors contracted.

“The ongoing conflict in the Middle East and the energy crisis were reflected in the slow progress of new customer projects and Reka Rubber’s rising costs,” she added.

“Material and energy prices, as well as transportation costs, have increased significantly during the first half of the year, which weakened the earnings despite increased volumes.”

She added that productivity, material-efficiency and profitability measures implemented during 2025 and early 2026 helped limit the impact.

Furthermore, Tulander said Reka had been passing material cost increases through to customers under its contractual arrangements.

However, she said, “a large part of the increases” will take effect during the second half of the year.

Looking ahead, Reka said the Rubber segment would continue to focus on productivity and profitability, while price increases linked to higher material costs are expected to provide support during the second half.

“Investments will be continued for long-term growth, which is supported by investments in production technology that has lower emissions and consumes less natural resources,” the company said.

Reka expects 2026 earnings to be higher than in 2025 and said it would continue to explore M&A opportunities.