10 young Ukrainian factories that may surprise you

Allseeds is a new sunflower oil factory producing 240 million liters of sunflower oil per year. Photo: allseeds.com

Allseeds is a new sunflower oil factory producing 240 million liters of sunflower oil per year. Photo: allseeds.com 

2017/01/31 • Analysis & Opinion, Economy

Although complaints about production termination are heard more than the reports about the launch of new frontiers, Ukrainian industry doesn’t cave in. Foreign investment and loans have become the basis for new businesses. And they aim to reduce the need for imported goods and sell domestic products abroad.

1. Allseeds produces 240 million liters of sunflower oil per year

  • Region: Pivdennyi, Odesa Oblast
  • Opened: June 2015

The new oil-extraction plant LLC Allseeds Black Sea covers 28 hectares, and it processes up to 800,000 tons of sunflower seeds per year. Its grain elevator stores about 46,000 tons. The plant is near the port Pivdennyi in Odesa Oblast – close to where cargo loads on ships. The Allseeds group of companies invested $200 mn in the enterprise and the terminal for transshipment of oil. Foreign investments helped to implement the plant with modern Italian, German, Belgian, and Swiss equipment. An independent Dutch laboratory controls the quality of primary products at the plant.

2. Maize – the first national seed project

Photo: maize.com.ua

  • Region: Zaitseva, Dnipropetrovsk Oblast
  • Opened: June 2015

This new seed plant received UAH 100 mn of investments for its construction. German BHF Bank gave the third part of it as a loan under the guarantee of the European Bank for Reconstruction and Development.

Plant capacity is one-half to 1 million sowing units – and it is 10-20% of the Ukrainian market needs. It works in two modes: either starts a full standard technological cycle or performs three different operations at the same time with three kinds of seeds. Mais intends to build two more seed plants in different regions of Ukraine.

3. Bio gas plant provides green electricity to 800 households

Photo: spp.com.ua

  • Region: Rakytne, Kyiv Oblast
  • Opened: October 2015

The new biogas plant recycles organic waste and the energy from it goes to heating the local communities and greenhouses. They also plan to deliver ecological fertilizer for agriculture. So far, the plant produces only a fraction of its potential. However, it is already the most powerful biogas plant in Ukraine and one of the most productive for the eastern European countries.

The raw material for the biogas plant is pulp and other organic waste, which produce the gases which are combusted and transformed into electricity. Thus, two types of energy are produced – electric and thermal energy. According to calculations of engineers, 44 cu m of the gas produces 19 MW of electricity and the same amount of thermal energy

4. Interagrosystem is the first in Ukraine to produce fries

Результат пошуку зображень за запитом "інтерагросистема фрі"

Photo: galvapno.limeindustry.in.ua

  • Region: Mena, Chernihiv Oblast
  • Opened: September 2015

This plant of semi-finished products is a joint Ukrainian-Turkish project. The Ukrainian side invested UAH 48 mn, the foreign partners – EUR 2.5 mn.

Potatoes grow on the company’s fields and Interagrosystem purchases some of the needed amount from local farmers.

The production line operates in three shifts with 50 people involved. 100 more people plant, harvest and sort potatoes.

The plant will process up to 100,000 tons of potatoes per year and provide domestic cafes and restaurants with the semi-finished products for making French fries.

Nowadays Ukraine imports semi-finished products on UAH 50 mn

5. Puratos will export almost half of its production

Photo: dumskaya.net

  • Region: Odesa
  • Opened: 19 May 2016

Puratos International Group invested in a plant EUR 7 mn to produce margarine and dry mixtures for bakeries and confectioneries. 40% of all production goes for export.

The plant operates on environmentally friendly technology, and its equipment is also safe for the environment.

6. Ukrainski Lisopylky processes lumber which they previously exported

Photo: epravda.com.ua

  • Region: Kostopil, Rivne Oblast
  • Opened: April 2016

The plant intends to produce pine-edged boards, which will be subsequently used for carpentry, furniture, and construction materials.

The capacity of the enterprise is 300,000 cu m of industrial wood. It creates 150 jobs per year and attracts EUR 20 mn of investments to the region. Ukrainians, Swedes, and Finns worked on creating this object. This is one of the largest investment projects in the Rivne Oblast in the last 7 years.

7. The Ternopil quarry will reduce Ukraine’s need to import limestone

Photo: businesslife.today

  • Region:  Halushchyntsy, Ternopil Oblast
  • Opened: January 2016

The project took $700,000 to implement.

Before the start of Russia’s aggression in Ukraine, the country produced enough of its own limestone, and there was even an opportunity to export it to Russia, Belarus, and Moldova. After the illegal annexation of Crimea and the hostilities in Donbas, the connection to the quarries on the uncontrolled territories was cut short. Ukrainian companies ceased exports and started procuring limestone in the UAE, Russia, Romania, Slovakia, and Poland. This was a strong incentive for the development of quarries in other regions. One of those which took advantage of the new opportunities is the Ternopil quarry. 

8. TM Ondo offers a cheaper replacement for ceramic shingles

  • Region: Ivano-Frankivsk
  • Opened: August 2015
Photo: ondo.com.ua

Photo: ondo.com.ua

The new plant produces cement-sand shingles. Their cost is 4 times lower than ceramic ones but is 10-20% more expensive than metal shingles.

From US $1 mn investment, 2,000 sq m of production facilities was built and equipment by European company “Vortex Hydra” was purchased. They plan to be at full capacity and produce 250,000 sq m of tiles this year.

9. Japanese quality cables manufactured in Ukraine by Fujikura

Photo: expres.ua

  • Region: Lviv
  • Opened: April 2016

The Japanese company Fujikura Ltd., which manufactures cable networks for European automobile manufacturers, founded Fujikura Automotive Ukraine Lviv in November 2013. The factory specializes cables for Volkswagen automobiles, producing about a million cables per week.

It took UAH 87 mn of foreign investments to build the factory. Thanks to them, a production complex for manufacturing electrical components with a square footage of 7,000 sq m and an administrative building of 1800 sq m were built and 3,000 people were employed.

10. Biofarma will cover 100% of Ukraine’s needs in plasma-derived medicines

Photo: businesslife.today

  • Region: Bila Tserkva, Kyiv Oblast
  • Opened: June 2016

This new biopharmaceutical complex was swiftly built from scratch in 1.3 years thanks to $40 mn of investments from the American company Horizon Capital and Dutch Development Bank FMO. Thanks to this new factory, Ukraine will cover 100% of its domestic needs in plasma-derived medicines such as immunoglobulins, albumin, and Factor VIII.

The German company Linde Engineering designed the plant, and it meets the Good Manufacturing Practice standards mandatory for all EU countries. Another blood plasma processing factory is planned, which will require another $30 mn. 

Translated by: Nataliia Totka
Edited by: Alya Shandra
Source: Business Views

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  • Brent

    In the meantime, Rossiya still produces and exports
    >LADA automobiles
    >mafia
    >brides seeking Western husbands
    >lazy hockey players
    >terrorism

    • Murf

      That’s not fair Brent!
      Their third largest export is the high tech, high wage, coal bricks.
      Wow
      Changes your whole outlook on Russian industry huh?

  • Robert

    Outstanding, Ukraine! Simply OutStanding!!!

    Way to GO, Ukraine and all the Foreign Investors!

    More is yet to come!

    Slava Ukraini!!!

  • Alex George

    There are many other stories like this. Over 100 French companies have a presence in Ukraine. Then there are the Germans, Italians etc.

  • zorbatheturk

    Ukraine is the biggest country in Europe by area (10% larger than continental France) and has some of the best agricultural land plus many educated workers. Once all Soviet-era malpractices are gone, it will be a major economic player and attract plenty more investment.

  • Tony

    This is refreshing. At this point I think positive news on Ukraine will get more foreign attention than the regular doom and gloom.

  • Murf

    That’s how economic natural selection works.
    The calcified companies that can’t adapt to the new markets wither and die.
    The new ones that can adapt. Improvise and overcome will prosper.