Business news from Ukraine

Ukraine will create State Office for development of industrial parks

Prime Minister Denis Shmygal says that in Ukraine will create the State Office for the development of industrial parks.

“We increase our self-sufficiency, strengthen the production and industrial potential. One of the key tools in this direction will be industrial parks. This year we allocate UAH 1 billion for their development,” Shmygal said at a government meeting on Friday.

According to Prime Minister, the Cabinet on Friday approved the procedure for the use of these funds: for the construction of infrastructure of industrial parks, for compensation for connection to networks, for compensation of the interest rate on loans taken for development and investment.

“Also, the State Office for the development of industrial parks will be created. We will use the experience of Singapore, Turkey, Poland to make industrial parks the growth points of our industry and economy,” he said.

In addition, on Friday, the Cabinet of Ministers decided to create two industrial parks.

In particular, one of the parks will be created in Vinnitsa region (investments in its creation will amount to more than UAH 50 million), and the second industrial park will be in Ivano-Frankivsk region, (investments in its creation and development may amount to UAH 1.5 billion).

“Thanks to the creation of these two industrial parks, more than 1,000 jobs in the processing industry will be created,” Prime Minister said.

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Several industrial parks excluded from state register

At a meeting on Friday, the Cabinet of Ministers of Ukraine decided to exclude four industrial parks from the Register of Industrial Parks, Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, said on Telegram.

According to him, the First Ukrainian Industrial Park, BIONIC Hill, AzovAquaInvest, and Energia were excluded from the Register on the grounds of “failure to submit reports on the functioning of the industrial park to the state body for two consecutive reporting periods and failure to conclude an agreement on the creation and operation of the industrial park within two years from the date of the decision to create it.”

As reported, the First Ukrainian Industrial Park (Velyka Dymerka, Kyiv region) and Bionic Hill (Kyiv) were included in the Register of Industrial Parks in 2016, Energia (Mykolaiv) in 2018, and AzovAquaInvest (Mariupol, Donetsk region) in February 2019.

Three more industrial parks to be created in Ukraine

The Cabinet of Ministers at a meeting on Friday included in the Register of industrial parks three parks at once: two in Khmelnytskyi region and one in Lviv region, the Ministry of Economy reported.
In particular, the register includes FE Krasyliv Technoport with the area of 10.146 hectares, the creation of which was initiated by JSC Krasyliv Machine-Building Plant. The park plans to create about 500 jobs in the industrial cluster for metalworking and metal products manufacturing.
“The initiator plans to invest in the park 87 million UAH, it is also expected to attract investments of the management company, residents of the park (in its own production), private financing of the project,” – indicated the Ministry of Economy.
It is noted that investors from Poland, Germany and Turkey have confirmed their readiness to invest in the park’s enterprises following the results of negotiations.
The total amount of preliminary confirmed investments is 555 million UAH, another 70 million UAH is expected from small and medium-sized businesses, which will help with the manufacture of parts for the production of large investors.
The second park in Khmelnytsky region, included in the register, was the FE “Carbon Neutral ECO AGRO HAB Podillya “Gorodok”, on the territory of Gorodok city territorial community. 50.1856 hectares of land were allocated for the arrangement of the park, and the initiator of the IP was Epicenter K LLC.
“The park will specialize in agro-processing – production of oil and fats, products of the flour and poultry industry, other food products and ready-made animal feed. In addition, it is planned to produce most of the electricity for the work of the enterprises located there,” the report says.
It is assumed that the creation of the park will provide work for about 480 residents of the community. As noted in the concept of the park, during 2026-2032 the enterprises participating in the park will pay to the budgets more than 525 million UAH of taxes and fees.
In addition, the register of FE includes “YADRO Industri” in Drohobych, Lviv region, with an area of 10.0036 hectares, initiated by LLC “Facade-West”, which plans to invest in the development of more than 561 million UAH.
It is planned to create about 500 jobs in the industrial cluster, one of the key types of production of which is planned to be window production.
Priority for placement in the park will also be enterprises for production of building materials from clay, porcelain and ceramics products; production of cement, lime and gypsum mixture and products from these materials, processing and finishing of stone, etc.
It is stated that among the investors ready to invest in production are companies from the USA and Spain, Ukrainian small and medium-sized enterprises. The total amount of their investments is planned at the level of 270 million UAH.
“The development of industrial parks is very important in the context of recovery and further growth of the Ukrainian economy…The government is purposefully working on the development of processing with high added value. And the work of processing enterprises within the parks gives businesses significant additional opportunities for growth,” the press service quoted Deputy Economy Minister Volodymyr Kuzo as saying.
Given the decisions taken by the government on Friday, 73 parks are included in the Register of industrial parks.
As reported, the draft state budget for 2024 for the first time provided for the allocation of UAH 1 billion for the development of infrastructure of industrial parks.

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Register of industrial parks in Ukraine has been updated

The Cabinet of Ministers of Ukraine has added two more parks to the Register of Industrial Parks – EcoStyle in Dnipropetrovs’k region and Iskra in Ivano-Frankivsk region, the press service of the Ministry of Economy reports.
According to the report, the government made the decision at a meeting on October 6, 2023.
The press service clarifies that both parks will operate in the processing industry and create a total of more than 1800 jobs.
In particular, the EcoSteel industrial park in the territory of Novopil village council, Kryvyi Rih district, Dnipro region, will specialize in the production of metallurgical products, metalworking, processing of metallurgical waste, building materials, logistics, etc. It is planned to create about 900 jobs.
The Iskra Industrial Park, initiated by Pidhaichyky village council (Kolomyia district, Ivano-Frankivsk region), will focus on food production, textile manufacturing, and wood processing.
The park will also be home to companies producing wood and cork products, furniture, hardware, machinery and equipment. About 950 jobs are expected to be created.
Thus, according to the Ministry of Economy, 67 parks have already been included in the Register of Industrial Parks.
As reported, the law provides for exemption from VAT and duties on imports of new equipment, as well as from income tax for 10 years for residents of the IPs; preferential rates of real estate tax and land fees from local authorities.
At the same time, according to Dmytro Kysylevskyi, Deputy Chairman of the Parliamentary Committee on Economic Development, up to half of the registered IPs may soon be removed from the register due to inactivity (parks registered between 2013 and 2019).

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Government of Ukraine included Friendly Windtechnology into register of industrial parks

The Government of Ukraine has included the industrial park “Friendly Windtechnology” (Perechin, Uzhgorod district, Zakarpattya region) with an area of 16.5 hectares in the Register of industrial parks, the press service of the Ministry of Economy reported.

The corresponding decision was made at a government meeting on Tuesday.

According to the concept of the new industrial park, 745 new jobs should be created in the processing industry, professional-scientific and technical activities.

Predominantly local enterprises will be engaged in mechanical engineering and metalworking, the report said.

“The creation of new industrial parks is aimed at developing the processing industry, supporting Ukrainian exports, creating new jobs and filling local budgets,” the press service quoted Economy Minister Yulia Sviridenko as saying.

According to the Ministry of Economy, thus in the Register today there are 65 industrial parks.

As reported, last year Kramatorsk Heavy Machine Tool Plant, on the site of which produced wind turbines company “Furlander Windtechnology”, decided to relocate from Kramatorsk to Perechyn.

According to opendatabot, Friendly Wind Technology LLC (FWT) was registered in Perechyn in October 2022, with Vladyslav Eremenko as the ultimate beneficiary and manager.

According to the local press, the construction of a new workshop of the enterprise, which will be part of the industrial park, has recently started in Perechin. “Friendly Wind Technology” is engaged in the design and production of components for wind power plants.

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2 Ukrainian industrial parks get managing companies

Ukrpromenergo Resources LLC (Lviv) received the status of a management company of the Sparrow Park Lviv industrial park, and “Concept Real Estate LLC – the management company of Kyivschyna (Novi Petrivtsi, Vyshgorod district, Kyiv region), the Ministry of Economy reported.
According to the announcements on the website of the ministry, the corresponding messages were received from the initiators of creation of these industrial parks – Sparrow Industries LLC and Industrial and Technological Park Kyivschyna LLC.
The agreement on the creation and operation of Sparrow Park Lviv was signed between the initiator of its creation and the management company on July 7, 2022, and Kyivschyna – on December 21, 2022.
Ukrpromenergo Resources LLC, according to the state register, was registered in Lviv in November 2019, the main specialization is organization of construction.
The owner of 90% of the charter capital is AVM Logistic, another 10% belongs to Adamant investment fund, and the beneficiaries are Oleksandr Berezhansky from Lviv and Yuriy Khalamendyk, a resident of the region.
Concept Real Estate was registered in Kyiv in 2006, the owner and manager is Valeriy Kyrylko from Kyiv. The main activity is real estate management.
As reported, Sparrow Park Lviv with an area of 18.824 hectares, the initiator of the creation of which was Lviv Sparrow Industries LLC, was entered into the register of industrial parks in May 2021.
Priority types of economic activity for placement: mechanical engineering and metalworking; logistics, light and food industry; processing, woodworking, printing industries.
Kyivschyna with a land plot of 118.36 hectares was entered into the register in October 2017.
As reported, 60 industrial sites are included in the register of industrial parks. Of these, nine are new parks registered in 2022.

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