Ukraine is working to solve the problem of high-tech development and intend to build a powerful system of industrial parks in every region of the country, said President of Ukraine Volodymyr Zelensky.
“We have an important and ambitious goal for the development of industrial parks. This is a world-wide principle of organizing industry, which is an effective tool for attracting investment,” Zelensky said during his speech at the “Ukraine 30. Infrastructure” forum on Monday.
He recalled that currently there are 46 industrial parks in Ukraine, but “most of them are on paper, without the necessary infrastructure, without communications, without roads.”
Zelensky also noted that the construction of social infrastructure facilities throughout the country is now actively continuing.
Two new industrial parks are to be opened in Dnipropetrovsk region, Head of Dnipropetrovsk Regional Administration Oleksandr Bondarenko has told the Interfax-Ukraine agency.
“We have three potential sites. Preliminary agreements have already been reached upon one of them. There is an estimate of the cost of lacking utilities and a fully developed algorithm for opening and registering an industrial park. We know what type of business to invite to enter these sites. There is a list of 15-20 companies that are interested in launching production processes,” Bondarenko said.
A managing company will be identified in the near future, ensuring the project launch and ongoing management.
According to the head of the regional state administration, the technological cluster previously opened in Pavlohrad (Dnipropetrovsk region) has not yet been filled with production facilities, hence it is difficult to attract business to the park.
“When visited, it turned out that there were no proper utilities. It is difficult to attract business to launch production in the technological park, which is not connected to water, electricity, and sanitation services. The platform should be ready to host the business. It is one of the key functions of the technological park,” Bondarenko said.
He added that now the relevant parliamentary committee is considering a draft law providing for the increase of tax preferences for technological parks, in particular, the abolition of VAT and duties on import of raw materials and equipment into the territory of the industrial park, as well as profit tax for five years.
“Hopefully, in the fall, it [the draft law] will enter the session hall and will be adopted. Industrial parks are growth points for the economy. Their launch and the reconstruction of the airport, so that it would be possible to accept even the largest passenger planes, will bring the economy of the region to a fundamentally new level,” Bondarenko added.
The Ministry of Economic Development, Trade and Agriculture has included the Winter Sport (Vinnytsia) and Chortkiv-West (Chortkiv, Ternopol region) industrial parks in the register of industrial parks. Including in the register of these parks is stipulated in ministry orders No. 151 of October 2 and No. 152 of October 3. Winter Sport was established on a land plot of 25 hectares, its operational life is 50 years. The priority activities in the park will be production of sports equipment for winter sports, equipment for scuba diving, as well as other components, placement of warehouse and administrative premises, as well as information technology enterprises.
According to preliminary calculations, up to 1,450 new jobs can be created in the park.
According to the state register, HEAD Vinnytsia LLC with a charter capital of UAH 10,000 was registered in October 2018. Some 100% of its shares belong to HEAD Ukraine, and the ultimate beneficiaries are three non-resident individuals.
Chortkiv-West was created on a land plot of 87.684 ha, the declared term of its operation is 30 years.
Ukraine’s Economic Development and Trade Ministry on November 7 placed the Energy industrial park (Mykolaiv) and the Innovation Forpost industrial park (Dnipro) with areas of 36 ha and 49.5 ha respectively to the register of industrial parks.
According to the information posted on the ministry’s website last week, the initiators of the creation of the parks were the Mykolaiv and Dnipro city councils, respectively.
The stated period of operation of the Energy park is 30 years. According to preliminary calculations of the initiator, 1,800 jobs will be created on its territory. The priority types of economic activity are the production of food and beverages, rubber and plastic products, building materials, glass, chemical products, finished metal products, machinery and equipment, as well as research and development activities in the field of information and telecommunications.
According to the ministry, the Innovation Forpost park was established for 45 years and provides for the production of electrical machines, electrical equipment, metallurgical production, production of non-metallic mineral products, as well as the provision of computer services. On the territory of the industrial park, according to the Dnipro City Council, up to 600 new jobs could be created.
The ministry said that 35 parks are already placed to the register of industrial parks, 17 of which selected management companies, and five have already attracted members. According to the ministry, another 14 industrial parks are not registered.
Ukraine’s Economic Development and Trade Ministry has placed Zakhid Resurs industrial park (Horodok, Lviv region) and Ternopil industrial park in the register of industrial parks, becoming 32nd and 33rd parks in the register.
According to information on the ministry’s website, parks are registered by orders of the ministry dated September 19, 2018.
The initiator of the creation of the Zakhid Resurs industrial park on the land parcel of 20.7662 hectares is Euro-Invest-Holding LLC (Horodok, Lviv region). The stated term of the park’s functioning is 30 years.
The purpose of the park is to form a single territory with a well-equipped infrastructure for the placement of new economic enterprises in the processing industry, innovation, logistics and provision of related services, and increase the competitiveness of the region.
Priority for placement will be the production of food and nonalcoholic beverages, storage and processing of crop and livestock products; textile production, production of clothing, leather, fabric and leather products and other materials; wood processing and the manufacture of products from it; machine building, instrument making, production of electrical equipment, electronic and optical equipment; logistical services.
According to preliminary calculations, up to 1,625 new jobs can be created on the territory of the industrial park.
The owner of 100% of Euro-Invest-Holding LLC is Serhiy Badiak registered in Lviv.
The Ternopil industrial park, initiated by the Ternopil City Council, has a land area of 15 hectares.
The main goal of its creation, in particular, is to ensure the sustainable economic development of Ternopil by restoring the industrial potential of the city.
The stated period of operation is 30 years.
The functional purpose of the park is processing industry (primary and secondary processing of agricultural raw materials, production of food products, baby food); professional scientific and technical activities (research activities to improve product quality and use of new technologies, IT cluster).
Up to 1,100 new jobs can be created in the park.
The PR Group (Lviv), implementing a project on construction of the Sigma Park Yarychiv industrial park in Lviv region, plans to build at least 10 industrial parks with a gross area of almost 2,000 ha in two years and enter the Frankfurt Stock Exchange and the Singapore Exchange (SGX). “In addition to the park in Yarychiv, there will be 10 more industrial parks. The largest project for 560 hectares is located on the border of Lviv region in Rivne region. In Yarychiv there will be the smallest one – 15.7 hectares. In general, the entire portfolio of industrial parks is designed for almost 2,000 ha. We are planning to start all projects in two years. We are trying to make a stake on the social component. One of the projects will be located near Chervonohrad, Sokal, where the mines are closed and new jobs need to be created,” Managing Partner and co-owner of PR Group Roman Protsak told reporters on the sidelines of the Industrial Development and Construction Forum in Kyiv.
He said that the development company PR Development, which is part of the group, accompanies development of industrial parks. All the facilities will be united under the Sigma Park joint brand with the prefix of the name of the settlement near which they are located. This year, the company plans to provide two industrial parks for registration at the Ministry of Economic Development and Trade, and in 2019 to launch Sigma Park Yarychiv.
“There are already participants interested in locating their production facilities. Negotiations are currently under way with 48 companies. We will attract them on competitive terms. Each of them will present a development plan for the next 10 years, including offering the best conditions for employees’ salaries, Protsak said.
According to him, in August-September, the company will announce a tender for occupying land parcels in Sigma Park Yarychiv, in which only the food industry will be represented. The implementation of this project (greenfield) is at the utilities design stage. In other parks, the automotive, pharmaceutical, and other industries are located.
“We are currently using our own funds. We are not attracting credit resources, but we plan to enter foreign markets to raise funds through the sale of bonds… There are plans for two platforms – Frankfurt, Singapore and possibly additionally Warsaw. We plan to enter them in 2019-2020. One of our investment funds that deals with real estate in Ukraine and abroad will enter [the exchanges],” the co-owner of PR Group said. He said that the company had previously specialized in the construction of residential real estate, but three years ago, the co-owners decided to switch to commercial and industrial real estate.