Ukraine approves three new industrial parks to boost growth prospects
Ukraine’s Cabinet of Ministers has added three new industrial parks to the register of industrial parks in Ukraine—two in Khmelnytskyi Oblast and one in Lviv Oblast, the Ministry of Economy reported on Dec. 22.
“The development of industrial parks is very important in the context of the recovery and further growth of the Ukrainian economy,” Deputy Economy Minister Volodymyr Kuzio said.
“The government is purposefully working to develop high value-added processing. The work of processing enterprises within the framework of parks gives businesses significant additional opportunities for growth.”
Krasyliv Technoport Park, covering an area of 10.146 hectares and initiated by the Krasyliv Machine-Building Plant, has been included in the register. The park aims to create about 500 jobs in the industrial cluster of metalworking and metal product manufacturing.
Read also: Ukraine bans privatization in war-affected areas for duration of martial law
“The initiator plans to invest UAH 87 million ($2.3 million) in the park,” the ministry said.
“It is also planned to attract investments from the management company, residents of the park, and private financing of the project.”
Polish, German, and Turkish investors confirmed their readiness to invest in the park's enterprises following the result of negotiations with a total preliminary confirmed investment of UAH 555 million ($14.8 million). An additional UAH 70 million ($1.9 million) is expected from small and medium-sized enterprises supporting the production of parts for major investors.
The second park included in the register is Podillia-Horodok Carbon Neutral Eco-Agro Hub in Khmelnytskyi Oblast, located near the village of Horodok. The park, initiated by Epicenter K LLC, has been allocated 50.1856 hectares for its development.
“The park will specialize in agro processing, including the production of oil and fats, products of the flour-milling and groats industry, other food products, and ready-made animal feed,” the report says.
The creation of the park is expected to provide jobs for about 480 residents of the community. Participating enterprises are estimated to contribute over UAH 525 million ($14 million) in taxes and fees to budgets from 2026-2032.
Read also: Ukraine legalizes medical cannabis: key details and implications
Yadro Industry in Drohobych, Lviv Oblast, with an area of 10.0036 hectares, has been also included in the register. The initiator, TOV Fasad-Zapad, plans to invest more than UAH 561 million ($15 million) in its development, aiming to create around 500 jobs in the industrial cluster, primarily focusing on window production.
Priority for placement in the park will also be given to enterprises for the production of building materials from clay, products from porcelain and ceramics; production of cement, lime and gypsum mixture and products from these materials, processing and decoration of stone, etc.
Among the investors who are ready to invest in production include companies from the United States and Spain, as well as Ukrainian small and medium-sized enterprises. The total investment is expected to reach UAH 270 million ($7.2 million).
In total, seventy-three industrial parks are present in the register, taking into account the decisions taken by the government on Dec. 22. The draft state budget for 2024 for the first time reportedly envisaged the allocation of 1 billion UAH ($26.6 million) for the development of the infrastructure of industrial parks.
We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!
Read the original article on The New Voice of Ukraine
