Ukrainian Trade mission to Israel 2018

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