22.09.2011

Investment in the Kherson region

Characteristics of the sphere

Kherson Region is an attractive region for investment. Total foreign direct investment made in the Kherson region, on January 1, 2011 amounted to 202.8 million U.S. dollars, that for 2.7% increase in investments at the beginning of the year and is on 20th place in Ukraine. Investment in the region came from 42 countries. Significant amounts of foreign investments are concentrated in industrial enterprises - 111 200 000 U.S. $ (55.8% of total foreign direct investments). Part of the capital invested in agricultural development in the region, 16.3% of total investment (32.5 million U.S. $). The growth of the direct foreign investments in January - June 2011 was 2.8 million U.S. $. Each year, direct investment is increasing. 

So in 2005, agricultural enterprises accumulated 5.2 million U.S. $of direct investment, and to date the total amount of foreign direct investment is 32.5 million U.S. dollars. The biggest investors in agro-industrial complex field are the United Kingdom, Cyprus, Russia, Turkey. An example of successful acclimatization of foreign capital in the steppes of Kherson is the successful activities of the processing enterprise ‘Chumak’ (Kakhovka), a logistics center with a vegetable store ‘Green Team’ (Kakhovka) processing plant of tomatoes ‘Integrated agro systems’ (Hola Pristan district), poultry complex ‘Chernobaevskoe’ (Belozerka district).



Reform of the sphere 

Modernization and increasing of the competitiveness with industrial complex area is the key to the implementation of social initiatives of the leader of the country.

The new tax code released shipbuilding enterprises of the country from paying income tax and the land, introduced new rules for payment of duty on importation of imported equipment used when using the shipbuilding contracts and which is not produced in Ukraine. This positively affected the activity of Kherson Shipyard, which has become competitive in the global shipbuilding market. The company currently has 29 orders for construction, modernization and repair of ships, including 3 - the construction of completely comprehensive tankers. To carry out this work the company has announced a set of additional 800 employees for training and for training is planned to spend up to 1 million a year. Thus the company steadily increases average wages, which in March this year amounted to 3986 UAH.

Modernization of production facilities at combine plant - namely, the commissioning of a new compressor installation, which saves energy, purchase of laser and plasma cutting installation, which effectively replaced the entire pressroom and saved megawatts of electricity, enabling the company to a new level of quality and competitiveness of its products. These factors have enabled the company to obtain prior agreement on production of 50 harvesters "Skif," 500 headers for harvesting corn and other equipment. Management understands that it is necessary to develop social infrastructure. The aim is to restore the dispensary, the stadium and the house of culture and their subsequent development.

In 2012 a significant amount of work to modernize the industrial complex is planned. This is a complete technical reconstruction and modernization of the Tavria construction company, carrying out the partial conversion of the Kherson factory of biological products for the treatment of plant products against pests and plant growth stimulants, rehabilitation of the workshop producing work clothes and a workshop on recycling of clothing production at Tsyurupynsk garment factory "Youth."

Implementation of these measures will provide in 2012 an increase of industrial production by 4.5% against 2011, which in turn will help create over 1,000 new jobs, a 15% increase the average wage in the industry, to increase revenues, may be directed to the development of social sphere.

To create in the region the most comfortable conditions of work for investors and for the development of logistics and communications infrastructure a communal enterprise "Management company on establishing of industrial parks in Kherson region" is created. Work on creation of the regional "one-stop investment shop" and the centre of administrative services is begun.

The result of the policy to create favourable conditions for business development in the industry is in the ranking of social and economic development. Kherson region is at the 11th place (in terms of business support - third place.)

Practical illustration of this fact is returning to the region of foreign investors - concern "Printshorn-holding" that implements the project "Dunapack" (corrugated board products) in Tsyurupynsk district, Kherson region. Construction work on the project was updated in late March. The opening of production, which will issue about 200 types of packaging, scheduled for autumn 2012. The total planned investment is about 40 million euros.





In the first quarter of 2012 was signed memorandum on cooperation between the Head of Regional State Administration Mykola Kostyak and CFO of the group "Printshorn Holding" Kord Pryntshorn, who carries out construction of the plant. Whereas the Kherson region every year increases the production of agricultural products, implementation of the project will contribute to the development of food processing industry, production of which requires the appropriate number of packaging containers.

However, four years ago when Austrian investors for the first time started realization of the project due to financial and economic crisis of 2008-2009 construction was abandoned after the investment in plant about 17 million euros, but in August 2011 when the leadership of the Regional State Administration carried out negotiations with the owner Kord Printshorn achieved agreement and returned an investor to the region.

Investor returned to Kherson region because he has seen that the region is developing and will soon become very strong. The Regional State Administration has set itself an ambitious goal - to become the first region in Ukraine in terms of investment, which now creates all conditions for improving the investment climate, proximity to European standards of cooperation between business and government.
 
Help. Construction work was resumed in late March, to mid-September will be invested almost 3.5 million euros, will be installed an equipment worth up to 15 million euros. The opening of the production, which will issue about 200 types of packaging, is scheduled for autumn 2012. The total planned amount of investments is about 40 million euros. Estimated number of new jobs is about 200.





Chaired by Mykola Kostyak, chairman of the Kherson Regional State Administration, was given a ceremonial start of construction of the transshipment terminal branch "NIBULON" in the village Kozatske of Beryslav district. There have been reached preliminary agreements on the project of building a terminal in Novovorontsovka district.

On the construction of the terminal employed 11 contractors, over time, their number will increase to 50, which will be over 1000 qualified builders. Active work of building mooring facilities (length 315 m) is started, including supply and pile driving, construction of the gallery for shipping to water transport and others. In addition, the works are continuing: on construction of grain galleries, preparing the site for construction of car weights, equipment foundations of granaries, assembling in the transformer substation, construction of the bottom and the first tier of auto unloading. 

Construction cost: 160 million. Specifications: grain storage capacity - 76 tons, daily capacity dryers will be 4 thousand tons, daily shipment capacity on Shipping - 10 tons, number of employees - 60 persons. The value for the economy: the effect of the terminal will provide employment as state enterprises, such as Mykolayiv sea port, Kherson sea port (port charges), SE "Ukrvodshlyakh" (fee for passing locks on the Dnieper) and others.

At the terminal for the first time will be installed upgraded six sectors dryers «MC 3180," the company plans to develop its own river fleet. The social component: to date, overhaul of kindergarten "Fairy Tale" is made and purchased furniture and equipment by nearly 500 thousand UAH. Initiated a repair of the local house of culture and sports halls, to which is spent about 200 thousand UAH.





Recently with the participation of Deputy Head of Regional State Administration Anatoly Khomenko was a test launch of capacity of the processing plant built in the village Lyubymivka of Kakhovka district under the investment project of "Desco Ukraine" (Turkey).

In the region, in fact, non-waste production is created. Productivity of the companies is designed to process 200 tons of raw material per day: precooked, so-called muchka goes to further processing to produce oil and biofuels produced from waste in the form of meal and pellets. Later will be developed and own production of refined oil. Founder of the company Mustafa Dirik invested in its construction of 18 million dollars, will take care facilities and health and safety, ensure decent wages (minimum is about 2136 UAH). Now conditions of the collective agreement are developing, to which is included a complete package of social protection provided by current legislation of Ukraine.

And this is only the first stage of the production complex. The next step is production of oil - that thanks to a favorable investment climate: and regional, and district councils are making all efforts that investors could feel themselves comfortable. Thanks to such policy there is a chance to attract to Kherson region more investments. In particular, the meeting with representatives of companies engaged in construction of the airport is planned: the aim is to bring back to life Kherson airport. The investor expressed willingness to provide social facilities by biofuel at a price almost equal to its cost.

Other products in category Reforms

Comments

Ehsan / 13.07.2012 09:46
It's always a pleasure to hear from soemnoe with expertise.

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