Biosphere Corporation, one of the largest in Ukraine in the household goods market, sold its capacity for production of baby diapers (the Bambik brand), predicting a decline in the birth rate in Ukraine, its CEO Andriy Zdesenko said at Business Breakfast by Forbes Ukraine.

"We sold the production line because we see how our audience has decreased. We predict, unfortunately, a significant decrease in the birth rate of our (Ukrainian) children, and therefore we made a decision," Zdesenko said.

According to him, the production lines were sold to a friendly Ukrainian company - a competitor and partner of Biosphere from Ternopil. Biosphere remains a distributor of products.

"Under such conditions, we decided to sell the line to a friendly company - a competitor, a partner, a Ukrainian one. They concentrated production in Ternopil. They produce for us according to the model we used to produce for them. Therefore, we sold the equipment, but, in essence, we remain a player in the diaper market. They produce for us at very aggressive prices, at transfer prices," the CEO of Biosphere said.

Zdesenko emphasized that Biosphere had not left the children's goods market, but was no longer a manufacturer of diapers.

He also indicated that the company was focusing on tea production.

"Instead of diapers, we produce tea, and investments in (its) production are equal to investments in diapers," Zdesenko said.

Previously, the Biosphere Corporation introduced a new tea product to the food market under the Graff Brilliant taste brand. At the time of launch, EUR 3 million was invested in the creation of production.