Business news from Ukraine

Business news from Ukraine

Furniture manufacturer AMF completes construction of new plant in Lviv region

Furniture manufacturer AMF (Dnipro) is completing the construction of a new plant in the InPark Boryslav industrial park (Boryslav, Lviv region), with investments in its creation exceeding $10 million, according to Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development.

“The construction of a new furniture factory in the industrial park has reached its final stage. The customer for the construction of the first factory is AMF, which already has similar production facilities in Dnipro. The volume of investment in this project alone will reach more than $10 million,” he wrote on his Facebook page on Thursday.

He noted that the installation of sandwich panels and roof structures for the first phase of the premises, which covers 10,000 square meters, is currently being completed, but the total area of the entire plant will be 24,000 square meters. Engineering networks have been connected, and floor pouring and window installation are continuing. The ceiling height of the production facility is 6 meters, and the warehouse section is 12 meters.

“Construction is scheduled to be completed in the summer of 2026. Once the plant is fully operational, it will employ about 800 workers,” the statement said.

According to Kiselevsky, construction of another 12,000 square meter production and warehouse facility designed for small and medium-sized businesses is also planned to begin this year in the same industrial park. Negotiations with potential residents are already underway.

“The management company has entered the market with an offer of $420/1 sq. m. for modern production premises in the industrial park,” the MP added.

“InPark Borislav,” registered in March 2024, covers an area of 20 hectares. The site has medium-pressure gas, and water supply and drainage are provided by the centralized system of Boryslav. A 5 MW substation is located nearby.

Kysilevsky noted that workers for the industrial park’s enterprises are planned to be brought in from the settlements of the Boryslav-Drohobych agglomeration, where about 110,000 people live.

In June 2024, the Boryslav City Council established a preferential land tax rate for IP “InPark Boryslav” for 10 years – 0.25% for the first three years, with a gradual increase to 2.1% thereafter.

Art Metal Furniture is a large office furniture manufacturer founded in 1994.

According to its website, it comprises four manufacturing enterprises that produce furniture and accessories. It has three of its own warehouse complexes in Kyiv, Dnipro, and Lviv. Its distribution network covers 36 countries around the world.

The company’s capacity allows it to produce more than one million chairs per year.

According to You Control, AMF Ukraine LLC is co-owned by eight individuals, with the largest share (32.56%) held by German citizen Leonid Belyaev, who is the ultimate beneficiary of the company.

In January-September 2025, the company increased its net profit by 21% compared to the same period in 2024, to UAH 33 million, with net income growing by 16.6% to UAH 500 million.

 

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Exports of Ukrainian furniture increased by 15.5% in 2024

Ukrainian furniture makers exported $909 million worth of products in 2024, up 15.5% year-on-year, Oksana Donska, a board member of the Ukrainian Association of Furniture Manufacturers (UAFM) and an export expert, toldInterfax-Ukraine.

“Together, the woodworking industry and the furniture industry are among the top 10 export commodity groups with a share of 5.7% in Ukraine’s merchandise exports. I am confident that we will maintain the dynamics of growth in furniture exports and there is a chance that this year we will cross the $1 billion mark,” Donska said.

The expert explained such a positive outlook by the trends of the global furniture market, which has returned to growth, for example, in European countries from 8 to 10% per year.

“Another plus is that IKEA is returning to us to purchase a fairly wide assortment matrix of furniture. At the same time, the number of exporters to large companies is growing. This also applies to small and medium-sized businesses that are forced to export because the domestic market has shrunk significantly,” she says.

According to her, before the war, experts estimated the capacity of the domestic market at $1-1.2 billion, but now it has halved to about $500-600 million.

At the same time, Ukrainian furniture makers achieved export growth in 2024 amid a shortage of personnel (by 30-40%, according to manufacturers). The furniture makers were able to optimize their costs and maintain competitive prices thanks to grant support from both the government and international donors, which helped them to change equipment in their factories and increase their productivity. According to Donska’s estimates, about 50 of the most active manufacturers (out of about 11,000 companies) have attracted state aid alone, and a significant number of them have used it to scale up and move from small to medium-sized businesses. As for microbusinesses, they actively chose a narrow specialization and sought partnerships.

Industry associations, both national and local, helped solve the issue of human resources and export promotion. According to Donska, thanks to UAFM training programs, more than 800 people have been involved in the industry since December last year, and the furniture school has graduated 295 equipment operators and furniture designers. The export promotion project also showed good results. “Participating in an international exhibition with a separate stand is expensive and not affordable for everyone. But joining the national exposition for a few square meters is already possible. Thanks to this program, more than 200 companies have shown their products at international exhibitions in Poland, Germany, the UK, Italy and the UAE,” Donska said. Individual furniture clusters (Lviv and Rivne) also addressed the issue of training and staffing.

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Profiles in the furniture industry – an overview

The furniture industry is constantly evolving, offering new solutions for creating stylish and functional interiors. One of these innovative solutions is the GOLA profile system for handleless facades, which is becoming increasingly popular among designers and consumers. Let’s take a look at the main features and advantages of using GOLA profiles, as well as their impact on the appearance and functionality of furniture.

GOLA profiles are a system that allows you to completely eliminate the use of traditional handles on furniture facades. Thanks to special grooves built into the furniture body, it is possible to open doors and drawers by gripping the facade with your hand. This solution provides a sleek and minimalist look for furniture that meets modern trends in interior design.

Advantages of GOLA profiles

Aesthetic appearance: One of the main advantages of GOLA profiles is their ability to create a clean and elegant look for furniture. The absence of visible fittings allows you to focus on the lines and shapes of the furniture itself, which gives the interior a modern and stylish look.
Functionality: GOLA profiles make furniture more convenient to use. Thanks to special grooves, opening and closing doors becomes easy and convenient. This is especially important for kitchen furniture, where quick and convenient access to the contents of cabinets and drawers is of great importance.
Easy to maintain: The absence of protruding elements, such as handles, simplifies the maintenance of furniture. Dust and dirt do not accumulate on the fittings, and smooth surfaces are easy to clean, which is an important aspect of maintaining cleanliness and hygiene in the house.
More space: The use of GOLA profiles allows for more efficient use of space in the room. The absence of handles provides more freedom when arranging furniture and reduces the risk of accidental bumps or snags, which is especially important in small spaces.

GOLA profiles can be used in various types of furniture, but they are especially popular in kitchen sets. Thanks to them, even the simplest kitchen facades acquire a modern look. In addition to kitchens, the GOLA system is also perfect for bathrooms, dressing rooms and living rooms, where aesthetics and functionality are also of great importance.

The GOLA profile system is an innovative solution that combines modern design and high functionality. The absence of handles not only improves the appearance of the furniture, but also makes it easier to use and maintain. GOLA profiles transform furniture, adding style and elegance to it, making it the perfect choice for modern interiors.

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Ukraine exported furniture for $730 mln

In January-November 2023, Ukraine exported $730 million worth of furniture, which is 3.2% less than in 2022, Oksana Donska, a board member of the Ukrainian Association of Furniture Manufacturers (UAFM) and coordinator of furniture cluster development, told Interfax-Ukraine.

“The main reason for the drop is the blocking of the Polish-Ukrainian border. Trucks with furniture stood in line at the border for weeks in November 2023, and a small share was delivered by vehicles with a carrying capacity of up to three tons. It is expected that the pent-up demand of November and the lifting of the border blockade with Poland will allow us to ship orders and reach the export level of $810 million in 2023 and significantly increase exports next year,” Donska said.

In particular, JYSK buys Ukrainian products for sale in all its international networks. “If we compare the volume of JYSK’s purchases in Ukraine in 2023 with 2021, the company has increased the volume of purchases in physical units, and in monetary terms by almost 20% in euros,” said Iryna Romanchuk, purchasing manager at USK Ukraine LLC.

According to her, JYSK is ready to further increase the volume of purchases if Ukrainian producers are ready to switch to European standards and implement environmental and social initiatives at their production facilities.

Overall, the share of furniture exports in total exports of goods from Ukraine amounted to 2.2% in 11 months of 2023.

From 2009-2021, exports of Ukrainian furniture (product group 94) grew annually by an average of 13.5% from $0.2 billion to a record high of $1.1 billion in 2021. In 2022, Ukrainian furniture producers managed to keep exports at $0.8 billion, of which 91.1% were to the EU.

Donska noted that in 2023, the structure of exports by partner countries changed. Thus, compared to the same period in 2022, the share of exports to Poland decreased from 35.1% ($264.6 million) to 29.5% ($215.2 million). At the same time, the volume of exports to Germany increased significantly by 17%, from $129.3 million to $151.3 million, with the corresponding changes in the share from 17.2% to 20.7%.

The Ukrainian Association of Furniture Manufacturers (UAFM) unites more than 70% of the furniture industry.

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UKRAINE EXPORTS FURNITURE WORTH $1 BLN IN JAN-NOV 2021

Ukraine exported furniture worth almost $1 billion in January-November 2021, which is 43% more than in the same period last year, Oksana Donska, the head of the cluster platform of the Ukrainian Association of Furniture Manufacturers.
“The Ukrainian furniture industry exported furniture for almost $1 billion, which is 43% more than in the same period last year. Compared to previous periods, this is an absolute record, and in comparison with neighboring Poland, with the same forest resources and human capital, this is 14 times less,” Donska said at a press conference in Kyiv.
In her opinion, in order to increase the production and export of furniture, Ukraine, first of all, needs a transparent and stable market for raw materials, clustering (association of furniture makers based on industrial parks), as well as a trilateral partnership of business, education and authorities in personnel training.
According to Donska, within the framework of the strategy being developed, Ukrainian furniture makers set a task to enter the top 10 furniture exporters in the next 10 years.
“Today the leader is China, which exports furniture dozens of times more than Germany, which ranks second, Poland is third. That is, we want to catch up with Poland and Germany, exporting furniture for at least $14 billion. Today, Ukraine exports furniture to 199 countries of the world, and more than half goes to Germany and Poland, but for re-export. And today we have every opportunity to enter the direct markets for the sale of our products,” the expert said.
According to her, the amount of foreign investments in the furniture industry over the past 5-8 years has exceeded EUR1 billion.
“Ukraine has all the prospects in the next 10 years to increase it by 5 times. Today Belgium, Austria, Canada, Denmark, the United States, France have already invested in the furniture industry – that is, the world leaders trust us and open their enterprises,” the expert noted.
According to President of the Ukrainian Association of Furniture Manufacturers Volodymyr Patis, attracting investments will allow to create an additional 200,000 jobs during this time.
“In the furniture industry, the quality of the workplace is changing a lot: there is a rethinking, automation, and today workers have a fairly high salary, which already competes with salaries in Poland,” he said.

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FURNITURE EXPORT FROM UKRAINE RISES TO $579 MLN IN JAN-AUG

Ukraine exported furniture worth $578.85 million in January-August 2021, which is 62.5% more than the same period last year, head of the cluster platform of the Ukrainian Association of Furniture Manufacturers Oksana Donska told Interfax-Ukraine.
“The large share of Ukrainian furniture exports falls on the EU countries [87.9% of the total], while the CIS countries account for 7.9%, Asia – 2.1%, and America – 1%,” Donska said.
According to the expert, Poland, Germany, Denmark, Austria and Belgium are among the top five exporting countries of Ukrainian furniture and their parts.
“Exports to Romania have grown significantly this year – by 85.8%, from $9.1 million to $16.9 million, to the UK – by 140%, from $4.7 million to $11.4 million, and to France – by 84.9%, from $7.8 million to $14.4 million,” Donska said.
According to the data of the State Customs Service, to which the expert refers, the leaders in the commodity structure of exports are: 23.7% – wooden furniture (9403 60), and 23% – parts of furniture for seating (9401 90). Convertible sofas and armchairs (9401 40) gave 10.4% of exports, furniture parts (9403 90) – 10.2%, wooden bedroom furniture (9403 50) – 7.2%, and upholstered furniture that cannot be converted into beds (9401 61) – 6.9%.
The largest export volumes go through Lviv customs – 45.5%. In second place is Volyn customs (8.3%), followed by Kyiv and Rivne customs (7.9% and 6.8%, respectively).
Currently, most of the export is carried out by land transport (95.6%). At the same time, Donska noted that the development of business relations with the countries of the Middle East and America, which the Furniture of Ukraine Business Expo team is actively working on, will influence an increase in the number of orders for delivery by sea.
The Ukrainian Association of Furniture Manufacturers was established in 2001 and brings together entrepreneurs and enterprises operating in the furniture market.

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