EBRD and donors help Ukrainian business Neverdark relocate to safer areas

This article is brought to you in association with EBRD.

The warmth and crackling of a hearth fire in winter has a timeless appeal. Yet traditional wood-burning fireplaces have fallen out of favour due to their soot, smoke and pollution. Neverdark, a company based in Ukraine, offers an innovative solution that captures the allure of a fireplace without the drawbacks: its creation uses innovation to provide fireplaces that are both sustainable and less pollutant.

With support from the EBRD and its donors, the company has continued to thrive and build resilience despite the challenges of war.

Fire without smoke

The company’s co-founder, Yaroslav Lysak, found his passion for innovative interior in the early 2000s when he started attending European exhibitions in search of inspiration. During a visit to a foreign production facility, he first encountered bio fireplaces – metal containers with cups holding biofuel that could be ignited with a simple lighter.

“It was fire without smoke. I loved the idea, but the set-up looked rather rudimentary. We decided to make it better,” he says.

Within a year, the team created the first prototype featuring a flame-regulating damper.

Although they worked on the product continuously, the demand was weak as consumers were just beginning to discover the technology. It took several years for the company to generate demand in Ukraine.

“This was a completely new product – nobody understood it. We carried it everywhere, showing it to designers and anyone who might be interested,” he explains.

As development continued, the limitations of mechanical technology became clear – they were hindering improvements in safety and usability, which required automation. This led to the creation of the first electromechanical devices, marking the beginning of a new chapter. However, Yaroslav realised his team lacked the expertise to produce such sophisticated products. He turned to a longtime friend and engineer for help.

“I showed him what we had at the time. He immediately spotted the flaws and saw ways to improve the product. For the first six months, we worked closely, perfecting the design with hands-on trials and feedback. It was very much a start-up-like journey,” he says.

In 2019, the Neverdark brand was born out of a new vision: automatic fireplaces and expansion to foreign markets.

“Focus is the key to success. Evaluating the potential of the Ukrainian market, we realised we needed to concentrate on exports,” Yaroslav added.

Export as a strategy for growth

With the onset of Covid-19, it became clear that domestic sales in Ukraine would decline, making it essential to swiftly pivot to export markets. The team turned its focus to Europe, as it was a closer and more accessible market offering realistic growth opportunities over the next three to five years. This strategic decision drove a rapid increase in sales. Before the full-scale invasion, exports accounted for 50 per cent of the company’s revenue; today, that figure has risen to 95 per cent.

As Yaroslav points out, “If we had relied solely on the Ukrainian market, we wouldn’t have survived the war. Even though we had a robust network of dealers across Ukraine, and our products were showcased in every major city, the war made them completely irrelevant.”

War and the search for safety

When the war began, Neverdark was forced to halt production. The team monitored events closely, staying in constant communication with each other and their dealers. Concerned about their safety, European partnersurged Yaroslav to relocate production to a more secure region.

Employees had their own concerns – where to relocate, where to live, and how to work. To reassure the team, the management visited several cities before receiving an offer to utilise production facilities in Chernivtsi, a city in Ukraine located further from the invaded territories.

Employees were housed in a local kindergarten, as he explains. “There was simply no housing. Even with substantial funds, it was impossible to find anything, especially for 30 people. The western regions were already overcrowded. Some employees even brought their families – wives, mothers or grandmothers.”

The company received financial support through the EBRD’s relocation assistance programme funded by Swiss State Secretariat (SECO) and the USA through the EBRD’s Small Business Impact Fund (Italy, Ireland, South Korea, Luxembourg, Norway, Switzerland, Sweden, Japan, TaiwanBusiness-EBRD Technical Cooperation Fund and the USA)

Despite the relocation challenges, production resumed at full capacity by early summer 2022, reaching pre-war sales levels. Over time, employees moved into separate apartments, and the company opened an office in the centre of Chernivtsi. The team grew, hiring both locals and internally displaced persons.

Light amidst the darkness

Relocation allowed Neverdark to retain its team and continue exports. Despite the challenges of war, the company managed to triple its production capacity, workforce and sales. Today, Neverdark works with dealers in 15 countries, including the UK, France, Greece and the Netherlands.

The company is expanding its facilities in Chernivtsi to establish a closed loop production cycle, enabling it to manufacture enough fireplaces to cover the entire European market. The introduction of large-scale automated equipment is expected to attract more women to join the workforce.

Neverdark is actively seeking investments and grants to drive its development. All earnings are reinvested into working capital, leaving limited resources for growth projects.

“You can’t think like a garage start-up and expect to run an international business. You need to think big. Many businesses start in garages, but the key is not to stay there,” the founder concludes.

Moreover, thanks to the EBRD’s Advice for Small Businesses programme the company is working on introducing an ERP system to integrate complex processes such as logistics, production, and procurement of components.

Neverdark places a strong emphasis on the environmental aspects of its products. The bio-fireplaces run on rapidly renewable plant fuel, which produces no smoke or toxic emissions and has a harvest cycle of under ten years. The fireplace consumes oxygen and releases CO2, while corn absorbs CO2 and releases oxygen during its growth, allowing the company to achieve the concept of ‘net zero’.

Going forward, Neverdark aims to focus on lean production and energy efficient solutions to further reduce its environmental impact.

With its focus on innovation, quality and international markets, Neverdark has not only survived but continues to grow. Its success is an example of how a business can adapt to challenges, shining bright in even the darkest of times.