Business news from Ukraine

Business news from Ukraine

Budshlyakhmach is building new plant in Brovary to produce frames and increase localization of equipment

Budshlyakhmash has begun construction of a new 3,000 sq. m production complex in Brovary (Kyiv region), which will be used to manufacture vehicle frames, allowing the company to increase the localization of municipal and special equipment it produces from the current 40-60% to 75%, according to Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development.

“The start of production of vehicle frames is scheduled for mid-2026,” he wrote on Facebook on Tuesday.

According to him, this indicator (40-60% localization) was achieved thanks to licensed SKD assembly of equipment based on Daewoo and JAC chassis with the right to use its own VIN code.

“The contract with these companies provides for permission to replace imported components with Ukrainian ones,” Kysilevsky said.

The MP noted that after the launch of frame production, Budshlyakhmach plans to establish the production of wheel axles, as well as order tires, fuel tanks, and plastic components from other Ukrainian manufacturers.

“Next spring, Budshlyakhmach plans to start developing a new production site on the outskirts of Brovary to create an industrial park with a machine-building cluster. Forty thousand square meters of industrial buildings will be built on an area of 11 hectares. The total investment in this project is about $40 million,” Kysilevsky said.

According to him, investment in new production facilities is stimulated by localization legislation. This year, it requires a mandatory Ukrainian component of at least 25% in public procurement of equipment, and in 2026, the minimum localization level will increase to 30%.

Budshlyakhmash manufactures dump trucks, garbage trucks, truck cranes, sand spreaders and watering machines, tow trucks, and other equipment. In 2025, production volumes will be about 70 units per month.

According to opendatabot, in 2024, the Spetsbudmash plant in Brovary, where Budshlyakhmash Group’s automotive equipment is manufactured, earned UAH 4.2 billion in revenue and UAH 298.5 million in net profit, and in the first nine months of this year, UAH 3.3 billion and UAH 265 million, respectively.

The ultimate beneficiaries are Myroslav and Oleksandr Guiwan.

The Budshlyakhmash group of companies is the official representative in Ukraine of domestic and foreign manufacturers of special, road, and municipal equipment (JAC, Scania, Renault, MAN, Pronar, Daewoo, and Spetsbudmash brands).

Last year, Budshlyakhmash Trading House LLC received UAH 2.18 billion in revenue and UAH 22.9 million in net profit, and in January-September 2025, UAH 138.7 million and UAH 1.9 million, respectively.

The ultimate beneficiary is Myroslav Guiwan.

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