UKRAINIAN TRADE MISSION TO ISRAEL
23-25 JULY 2018
This project is funded by the European Union under the EU4Business Initiative and implemented by the EBRD
CONTENTS 4 FOREWORD FACTS & FIGURES 6 UKRAINE: 7 UKRAINE IS ISRAEL – 8 UKRAINE TRADE & FURNITURE 9 IT INDUSTRY
FURNITURE
IT
11
22 SOLUTION MENTORS
DELAVEGA
12 TOPART NATURE OF ART
23 ONTARGIT
13 ERGONOMICA UKRAINE
24 TANGRAM
14 ATELIER LILU
25 MWDN
15 DIVAL 16 VAVILON 17 PAVLYK
26 CULTURE2CODE EXPORT
27 PROMOTION OFFICE 28 CLOSING WORD
18 ESKADA-M 19 AGT PLUS 20 MIRT
3
FOREWORD
STEPAN KUBIV First Vice Prime Minister of Ukraine – Minister of Economic Development and Trade of Ukraine It gives me a great pleasure to support and greet the participants of The Second Ukrainian Trade Mission to Israel and to present you the export potential of Ukrainian products and services. Israel is our strategic trade partner and market in focus according to the Export Strategy of Ukraine. In 2017, the total bilateral trade turnover was $772 million. We expect this number to increase after the Free Trade Agreement will be signed and ratified in the nearest future. Therefore, this Trade mission is a great opportunity for strengthening existing business links between Ukraine and Israel and opening new doors for increased trade and collaborative business ventures. Following the success of The First Ukrainian trade mission to Israel last year, for this trade mission we selected two fast growing sectors – IT and Furniture that offers a wealth of opportunities for Israel importers. We are sure this visit will intensify the strong commercial relationship between Ukraine and Israel and raise awareness of Ukraine as a supplier of world-class products and services.
4
FOREWORD
NATALIYA MYKOLSKA Trade Representative of Ukraine Deputy Minister of Economic Development and Trade Free Trade Agreement between the State of Israel and Ukraine strengthens our bilateral trade and creates new opportunities for our businesses. Therefore, we are truly delighted to support the Second Ukrainian Trade Mission to Israel, and present you strong sides and possibilities in Ukraine: U nique
#1 route between Europe, Asia and Middle East
K nowledgeable
#4 most educated nation in the world
R ational
16 Free Trade Agreements covering 45 countries
A mbitious
Bold structural reforms – wide deregulation
I nnovative
13 Ukrainian IT companies are in The 2017 Global Outsourcing 100 List of world’s best outsourcing providers
N atural
Over 70% of Ukrainian territory is agricultural land, valued at > $100 billion
E motional
Revolution of Dignity (2014)
Israel has a very growing IT market, with heavy involvement by both foreign and local companies. Hence, this trade mission is a great opportunity for Ukrainian companies to establish direct business contacts with local businesses, share experience and explore Israeli IT market. Israeli furniture market is an actively developing sector and Ukrainian exporters can offer unique products, with individual approach and competitive price. Export is the driving force of national economy for government. And for business it is an opportunity to earn money both for themselves and for their country. We are focused on developing more innovative and knowledge-based exports and explore Israeli market. I encourage you to find new business opportunities with Ukrainian partners! And we are ready #EXPORT more to Israel!
5
UKRAINE: FACTS & FIGURES
GDP (PPP):
Political system
President
Prime Minister
Capital and largest city
Diaspore worldwide
ParliamentaryPresidental Republic
Petro Poroshenko
Volodymyr Groysman
Kyiv
20 million strong network
int.$350
for 2016 acc.to WB
Average salary:
$280
per month Most cost efficient manufacturing platform in Europe (2018)
Economy: Market economy World player in agriculture industry, energy, metallurgy, chemicals, manufacturing, massive high-tech industrial base, fast developing IT and high-tech sector
1 2 3
Eurasian Hub Geographical center of Europe Trade hub to the EU, Middle East and Asia
Deep and Comprehensive Free Trade Agreement with EU
Big Mac price:
$1.64
World’s lowest index price (2018) 3 months Visa free travel for approx.
65
countries (2018)
Top-5 export categories, 2017
Top-5 import categories, 2017
Iron
$8.7 bln
Fuels
$11.7 bln
Cereals
$6.5 bln
Machinery
$5.8 bln
Fats
$4.5 bln
Electrical machinery
$4.1 bln
Ores
$2.7 bln
Vehicles
$4.0 bln
Electric machinery
$2.5 bln
Plastics
$2.5 bln
EXPORTS, 2017 $43.3 bln
6
World Trade Organization member
IMPORTS, 2017 $49.6 bln
UKRAINE IS THE LARGEST country in Europe
MANUFACTURING GROUND-BASE
for European, Asian and Middle Eastern companies
#1 IT engineering force in Central and Eastern Europe (CEE)
130,000 engineering graduates annually
16,000 IT graduates each year 100+ global companies operate software R&D labs in Ukraine
Leader in cybernetics and
natural language processing Human Capital Index, Ukraine ranked 24 out of 130 countries
TOP 50 world's most innovative economies (Bloomberg.com)
7
ISRAEL – UKRAINE TRADE Іn 2017, the total trade turnover (goods and services) between Israel and Ukraine amounted to $973.4 million, marking an increase of 13% compared to 2016, which was $861.3 million. Ukrainian exports totaled $781.4 million, an 18.6% increase, while imports from Israel were worth $192 million, registering a 6.1% drop in annual terms. For 2017, Ukraine enjoyed a trade surplus with Israel of $589.4 million. For 2017, the trade in goods alone amounted to $772.5 million, a 14.7% increase (worth $99.2 million) over the previous year. Ukrainian exports were worth $604.6 million, marking a 23.8% annual increase, while imports from Israel were $167.9 million, a 9.2% decrease, resulting in a Ukrainian trade surplus of $436.7 million.
The main exports from Ukraine to Israel
cereals
ferrous metals
46.5%
25.9%
oil seeds and oleaginous plants
7.9%
food industry byproducts
4.8%
wood
1.7%
oil
1.6%
Main imports from Israel to Ukraine various chemical products
39.8 %
refined mineral fuel, oil, etc.
9.2 %
8
plastics & polymers
8.6 %
nuclear reactors, boilers, etc.
5.5 %
electric machines
5%
pharmaceutical products
4.4 %
In 2017, bi-lateral trade in services amounted to $200.9 million and increased by 6.9% or $12.9 million compared to the previous year. Export amounted to $176.8 million and increased by 5%, while imports were $24.1 million and increased by 23.1%.
milling industry products
1.2%
IT INDUSTRY Ukraine’s IT industry is a driving force in the country’s innovations, resurgent economy. It is also diverse, from cuttingedge work in AI, cyber security, natural language processing and nano technologies to highly commercial ventures in blockchain, FinTech, big data management, gaming, agribusiness, and e-commerce. The IT industry has grown by nearly 30 times over the last decade, from $110 million in 2003 to about $3.6 billion in 2017, achieving an impressive cumulative average growth rate of 30%. Ukraine offers a large, skilled and cost-competitive labor base of talented and world recognized software engineers. IT outsourcing is the first level in the technology and software value chain. However, Ukraine is also rich in successful start-ups that were acquired by global leaders or became such.
Ukraine IT outsourcing growing at approx. 30% + for over 10 years Total size of the market, USD million 3 600
3 500
3 000
3 000
2 500 2 379
2 500
2 000
2 500
1 400
1 500
1 100
1 000 500 -
250 110 165
390
544 530
697
874
2017 2007 2005 2013 2009 2015 2003 2011 2008 2012 2014 2006 2010 2016 2004
Source: Ukrainian Hi-Tech Initiative, Symphony-solutions, MoEDT estimates
FURNITURE INDUSTRY The Ukrainian furniture industry is represented by 1 300 manufacturing companies (as of 2016) which employ 32 000 specialists. Ukraine’s volume of furniture export reached $337 million in 2016, which amounted to 44% of the total production output. During 2013-2016, Ukrainian furniture was exported to more than 90 countries worldwide. Almost half of the exports went to Poland and Germany. Top 3 furniture export positions, 2016: Seating furniture convertible to beds, except for tourist or garden ones ($38 million, or 25% of the total exports);
wooden furniture for living rooms ($33 million, or 21%);
upholstered seating furniture with a wooden frame ($20 million, or 13%).
9
COMPANY PROFILES
FURNITURE
10
DELAVEGA
2010
established
40
employees
The company produces quality middle and high-end sofas, sofa beds, beds, armchairs, and chairs at reasonable prices. The products reflect traditional and contemporary styles, with an option of standard and customized items. The company uses primarily
delavega.ua/en web
European-sourced materials including beech, fabrics from the US and EU, leather from Italy, plywood, German threads, Norwegian fasteners and more. The company sells its products via furniture distributors and dealers.
ARTUR PODGORNYY Owner delavegaua@gmail.com +38 050 331 2121
OLGA KARACHKOVA Head of the Advertising Department info@delavega.ua +38 099 287 8688
11
TOPART NATURE OF ART
2006
established
ANDRII KOLESNYK CEO of TM Design Company Limited, TOPART owner and founder +38 044 300 1588
MARYNA MATSIUK Import-Export Manager import@topmebel.com.ua +38 068 344 2818
12
94
employees
The company is a manufacturer of environmentally friendly wooden furniture of European quality, specializing in bedrooms, living rooms and dining tables. The company focuses on contemporary and classic designs while following market trends and pursuing innovation. Using Ukrainian wood and other high quality materials, the company can do mass production as well as
topart.com.ua/en web
custom-made items all using advanced equipment. Its main customers are furniture stores, large hypermarkets, as well as design and construction companies. Some of its recent bedroom collections received the Quality and Design Award at the International Furniture Fair in the spring of 2018.
ERGONOMICA UKRAINE
2006
established
250
employees
The company manufactures relatively high-end ergonomic chairs under the Italian brand name Kulik System, based on the medical research and practice of Dr. Kulik. The chairs come in over 17 models with 5 ranges of ergonomic control, customizable components and unique stitching. While the company’s signature chairs feature an exclusive patent design, they also offer sofas,
kulik-system.com web
acoustic sofas and cabinet furniture for offices, banks, hotels, insurance companies, state institutions, clinics, and media studios. The company's trading network is represented in 25 countries with logistic centers in Italy, Scotland, Lithuania, Russia, and Ukraine and sells its products through its own showrooms and local distributors and dealers.
LISA LISOVSKA Export Sales Manager kulik.syst@gmail.com +380 67 232 3290
13
ATELIER LILU
2012
established
VALENTINA VASILIEVA
Оwner
valentina.vasilieva@gmail.com +38 050 245 7658
14
35
employees
The company specializes in designing and manufacturing quality furniture for children’s rooms: beds, sofas, armchairs, cabinets and closets. Its products are considered middle and high-end and made using natural wood, fabrics from the best Italian and French manufacturers (e.g. Dedar Milano and Maison Thevenon), as well as quality Belgian fittings. Atelier Lilu is known
atelier-lilu.eu/en web
for its classic style and now produces more contemporary designs as well. The company is capable of producing both standard and customized items, often working with designers to meet the needs of diverse clients. The company works with furniture importers, furniture galleries, children’s stores, and online shops.
DIVAL
1994
established
32
employees
The company is a manufacturer of middle end, quality wooden furniture such as chairs, sofas, beds and tables. Maintaining 3 factories, the company handles small and large orders, as well as custom-made items. The company uses quality materials including Ukrainian hardwood, German spring
divalstudio.com.ua web
blocks and snakes, Hungarian fillers of different rigidity and density, leather from Italy and Spain and fabric from Italy, US, Poland and Spain. Dival’s furniture is sold to hotels, restaurants, offices and private homes, and it is distributed via furniture stores and importers.
MARIYA YAKH Head of the Sales Department mariya.dival@gmail.com +38067 313 31 96
15
VAVILON
2013
established
VALENTYN NEGODA Export Manager vn@vavilons.com.ua +38 063 780 6340
SVITLANA HAUDACHUK Co-owner and Commercial Director sg@vavilons.com.ua +38 050 443 2525
16
33
employees
The company is a furniture project company that creates commercial and private interiors, producing custom-made furniture to match each project’s specifications. The company can handle entire projects from the initial concept to the fully furnished space or provide individual solutions in collaboration with other furniture companies. Vavilon manufactures exclusive furniture including chairs, sofas, beds, tables, cabinets, kitchens
vavilon-company.com web
and more for any project, taking into account the room conditions, style, color, appliances, and other details. The company has experience with a large variety of commercial projects including hotels, restaurants and offices, as well as residential projects. The company is also capable of designing and producing specialty, designer furniture such as for exhibitions and art applications.
PAVLYK
2007
established
50
employees
The company specializes in mass production of kitchen furniture, primarily tables and chairs of different types and styles. Using Carpathian wood and environmentally friendly paint and varnish materials, the company mainly performs outsourced bulk manufactur-
pavlyk.in.ua/en web
ing according to design and specifications of the client. Its in-house design team can also help design products along with clients to fit their needs. The company primarily works with furniture importers, distributors and retail chains.
YOSIF PAVLYK Director poulik@ukr.net +38 097 933 6923
17
ESKADA-M
2007
established
DMYTRO PATIS CEO dimap@eskada-m.com +38 096 281 9459
18
80
employees
A Ukrainian veneer board manufacturer also exporting its products to the Great Britain, Denmark, Sweden, Switzerland, Poland, Belarus, and Moldova, with some experience in the Israeli market as well. Its main products include veneered furniture parts and finished products including wall panels, closet doors, kitchen doors,
eskada-m.com/en web
table tops and shelves. It works with furniture manufacturers who incorporate Eskada-M’s products into finished furniture products; contractors of architectural projects such as hotels, restaurants, conference halls, offices, malls, private apartments, gas stations, etc.; and DIY stores and furniture distributors.
AGT PLUS
2003
established
127
employees
A manufacturer of quality interior doors, furniture fronts and wall panels. AGT Plus produces a huge variety of furniture fronts from MDF panels and particle boards, frame facades, aluminium facades with different types of glass. The company uses modern edge banding machines and polyurethane glue that makes them waterproof. AGT Plus also produces aluminum profiles that are used for glass fronts or built-in handles and can be painted in any RAL color. AGT Plus also produces hidden doors that are made from 2 MDF panels (can be of different colors) filled
agtplus.ua/en web
with corrugated cardboard in between (improves soundproofing). They have MDF panel around the perimeter (adds rigidity), an aluminium door box and quality fittings. Combining perfect service, good quality, stylish assortment and affordable prices, the company has worked for over 15 years with more than 1,500 partners and their thousands of clients. Besides Ukraine, the Company's partners use AGT Plus’s fronts for the furniture they export to the US, Canada, and Australia.
MAKSYM ROGOZHYN Co-owner maksym.rogozhyn@agtplus.ua +38 050 327 8766
VADYM KHARYTONOV Co-owner vadym.kharitonov@agtplus.ua +38 050 869 7547
19
MIRT
1991
established
ALEXANDER YUSHCHENKO
CEO a@mirt.ua +38 050 463 1905
ROMAN KARPINSKY
Director of Export Sales rk@mirt.ua +38 050 446 3961
20
244
employees
The company specializes in the design, construction and decoration of objects of classical and contemporary architecture. The company produces contract furniture (cabinet rooms, libraries, bedrooms, living-rooms, kitchens, dining-rooms), doors, windows, and woodworking (panels, ceilings, different planking). It offers standard products and collections, while also creating unique and specialty items for any application. The company provides luxury furniture production together with
mirt.vip web
exterior and interior design services. Its products are currently sold in Ukraine, Kazakhstan, Azerbaijan, UAE, Saudi Arabia, Qatar, and throughout Europe. MIRT’s products are appropriate for residences, palaces, houses, villas, apartments, public buildings, hotels, restaurants and more. The products are sold and distributed via furniture distributor/importers; design companies, designers and architects; renowned construction companies; and furniture showrooms.
COMPANY PROFILES IT
21
SOLUTION MENTORS
2002
established
DARIA OROBKO
Chief Marketing Officer d.orobko@solutionmentors.com +38 099 783 7784
ROMAN MELNIK
Project Manager rmelnik@solutionmentors.com +38 066 611 4454
22
90
employees
A global IT services and consulting organization that provides dedicated high performing technology teams to plan, manage, develop and support information technology infrastructure, operational and client facing solutions for all types of clients. The company has many years of experience in: Web Development, Booking Systems Development, Case Management Systems Development, DevOps, Cloud Telephony, Blockchain Development and Corporate Website Development. Its team consists of 100+ specialists using different technology stacks: Java, .NET, Javascript, LAMP &
solutionmentors.com web
MEAN stacks, C#, ReactJS, SalesForce, Blockchain, etc. It has served clients in the US, Europe, Ukraine, Australia, and New Zealand. Seeking to meet with: 1. Companies interested in custom software development, QA cycle, DevOps, managed services, cloud solutions, and enterprise solution development 2. IT Integrators and web development firms open to cooperation and/or representation
ONTARGIT
2009
established
60
employees
The company specializes in software development and implementation of Microsoft Dynamics products (AX/ERP, CRM, Office 365 and Power BI), as well as Microsoft Azure and .Net development. A Microsoft Gold Certified Partner, the company implements, supports and consults regarding IT solutions for all industries and has experience with medium and large enterprise customers throughout Eastern Europe, Middle East, and North America.
ontargit.com/en
web
OntargIT offers services in English, Russian, and Ukrainian. Seeking to meet with: 1. Companies seeking IT solution implementation based on Microsoft Dynamics 2. Microsoft Partners interested in cooperation such as outsourcing, joint project development, etc. 3. Companies seeking to outsource Microsoft-based software development (e.g. .Net, C# development, Azure DevOps and support)
VOLODYMYR SVYRYDENKO
CEO
Volodymyr.Svyrydenko@ontargit.com +380 67 446 4477
23
TANGRAM
1999
established
OLEKSIY TSEBRO Managing Partner ceo@tangram.ua +38 067 320 2960
40
employees
A full-service web solutions provider which specializes in providing services in the field of web development, software development, Managed Services, cloud based solutions, web hosting, and collocation services. Its clients include Fortune 100 companies such as Unilever, SCA and others. 50% of their business is software development and 50% is Managed Services! In the field of software development, Tangram’s main specialization is LAMP stack technologies (Linux, Apache, MySQL, PHP) and MEAN stack technologies (MongoDB, Express.js, Angular, Node.js), while its developers have experience with Python and .NET stack technologies as well.
SERGIY STADNIK
Managing Director sergey@tangramltd.com +38 063 235 6714
24
Tangram provides a full range of Managed Networking Services, including System Administration, Technical Support of web servers and network equipment worldwide executed by its team of experts. Their technical support team protect end-to-end network and web servers 24/7.
tangram.ua/eng web
In the field of providing Managed Services Tangram's specialists have experience with technologies covering different types of virtualization (Virtuozzo, OpenVZ, KVM, XEN, VMware, Hyper-V), different distributions of OS Linux/OS Unix and OS MS Windows Server systems, VPN/DNS/IPTables/Firewalls/ web servers/mail servers configuration and tuning, etc. In addition, the company provides cloud-based solutions (e.g. configuration and technical support of Private Clouds) in top European and North American data centers. Seeking to meet with: 1. Companies seeking reliable partner for outsourcing of software development services 2. Companies seeking reliable partner for outsourcing of managed IT services such as IT management, System Administration, Technical Support of web servers and network equipment 3. IT Integrators and web development firms open to cooperation and/or representation
MWDN
2002
established
80+
employees
MWDN provides custom software development services, web development, mobile development, quality assurance, UX/UI, IT consulting, start-up R&D support, and medical software development. With a team of 80+ employees, the company provides Startups/SMEs R&D services either by supplementing the client’s own resources (“team extension”) or by performing fixed price projects based on an agreed upon scope of work and proposal. Its medical/healthcare department specializes in providing software development outsourcing for companies involved in cardiology, radiology, dentistry, X-ray, ultrasound both for project-based tasks as well as
mwdn.com web
building entire solutions. The company has worked with Israeli companies for more than 16 years and maintains two offices in the largest cities of Ukraine - Kyiv and Kharkiv - both with direct flights to TLV. Among its clients are many Israeli companies such as Gett and Bezeq.
VITALY VYSTAVNOY CEO vitaly@mwdn.com +38 067 804 2357
Seeking to meet with: 1. Startups/SMEs seeking R&D services and support 2. Medical/Healthcare IT companies seeking software developing outsourcing assistance MIKE MERKULOV
COO merkulov.mv@mwdn.com +38 063 864 2627
25
CULTURE2CODE
1993
established
YAKIV BAYTELMAN CTO b@culture2code.com +380 93 544 6522
26
4
employees
The company provides software, mobile app and web development services and, IT consulting. The company works closely with startups to develop their MVPs and works with more advanced companies on scaling their MVPs. Its clients are around the world such as in Israel, Eastern Europe and the Netherlands, and they are involved in fields such as fintech, gaming/gambling, sharing economy, HR & Staffing, and event organizing. The team is very proficient in LAMP,
culture2code.com web
Android, iOS, JavaScript, jQuery, HTML5, Objective-C, Swift, Java and more. Seeking to meet with: 1. Companies interested in custom software development, DevOps, managed services, cloud solutions, and enterprise solution development 2. IT Integrators and web development firms open to cooperation and/or representation
EXPORT PROMOTION OFFICE EXPORT PROMOTION OFFICE (EPO) – is an advisory and consultative body under the Ministry of economic development and trade of Ukraine that has been founded to help Ukrainian exporters in opening new markets. OUR STRATEGIC GOAL is to help Ukrainian companies become successful in the international markets by: - Developing export competencies of Ukrainian business; - Ensuring partnership and cooperation between Ukrainian and foreign businesses; - Developing full scale export promotion institution as a single window entry point; - Promoting Ukrainian products and services abroad. WE WORK WITH: - Ukrainian businesses & associations; - Foreign businesses, associations, consultants & import/trade support organizations. BUSINESS OPPORTUNITIES
EXPORT CONSULTING & SOURCING
We encourage foreign companies to join EPO's events, that are opening doors to business opportunities such as: B2B meetings between the representatives of Ukrainian and foreign companies during Trade missions abroad, business networking events and also Incoming trade missions to Ukraine to meet with Ukrainian suppliers and visit the production of leading Ukrainian companies and distribution networks.
For foreign importers interested to find Ukrainian business partners and suppliers we provide sourcing services at no charge. We can find the right contacts regardless of the complexity of your request. Our experts will also contact Ukrainian companies to verify interest in cooperation and make sure that their offer meets your sourcing requirements.
If you would like to meet Ukrainian companies in your country or in Ukraine, please contact us at
Find your business partners in Ukraine with us, send your sourcing request at
opportunities@epo.org.ua
sourcing@epo.org.ua
JOIN US: epo.org.ua /ExportPromotionOffice /EPOUkr /epo_ukr
+380 (44) 253 61 31 12/2 Hrushevskogo Str., Office 369 Kyiv, Ukraine EPO is supported by Western NIS Enterprise Fund which supports initiatives to promote reforms in Ukraine and transformational projects and The Expert Deployment for Governance and Economic Growth (EDGE) Project. This project is funded by the European Union under the EU4Business Initiative and implemented by the EBRD
27
CLOSING WORD
MARYANA KAHANYAK Head of Export Promotion Office
Ukrainian businesses have great ambitions to go global and Export Promotion Office supports Ukrainian exporters in their goal to enter and expand to foreign markets. The Office is therefore ready to assist foreign companies in finding reliable partners and producers in Ukraine. Today Ukraine proudly introduces its export potential in Furniture and IT sectors, represented by 15 Ukrainian companies, who came to Israel to establish stronger trade links, win new business opportunities and show that Ukraine is open for business. We believe that this Trade mission is a reasonable advantage for upcoming intensification of our bilateral cooperation. Our goal is to create mutually beneficial business opportunities for Ukrainian and international companies, by: - Supporting international companies in sourcing; - Inviting to our Trade missions and B2B events; - Providing marketing and promo materials about opportunities in Ukraine; - Communicating on the opportunities for Ukrainian companies with international companies and organizations. We hope for our fruitful cooperation!
28
NOTES
29
NOTES
30
This project is funded by the European Union under the EU4Business Initiative and implemented by the EBRD