DNIPROPETROVSK REGION: Open investment dialog
DNIPROPETROVSK REGION IS AN IDUSTRIAL AND INVESTMENT CENTER OF UKRAINE
•
•
•
BELARUS
The region is located in the center of Ukraine and shares its border with 7 regions.
The Dnipro river, which is one of the largest waterway in Europe, crosses the region.
Volyn region
POLAND
Chernihiv region
Rivne region Zhytomyr region
Khmelnytsk region Ternopil region Vinnytsia SLOVAKIA Ivano-Frankivsk region region Zakarpattya Chernivtsi region region Lviv region
HUNGARY
The region has 22 districts and 20 cities (the largest cities are Dnipro and Kryvyi Rih).
One of the largest regions by the area and population
ROMANIA
RUSSIA
KYIV city Kyiv region
Sumy region Poltava region
Kharkiv region
Cherkasy Luhansk Dnipropetrovsk region region region Kirovohrad DNIPRO city region Donetsk Kryvyi Rih city region Mykolaiv Zaporizhzhya region Odesa region Kherson region region
Crimea
Industrial and investment center of Ukraine 1st place of sold industrial output
3,3 mln people
(15.3% of all sold industrial output of Ukraine)
(7,3% of country’s population)
16,3% of Ukrainian export 31,9 thousd. km² (5,3% of country’s area)
9,7% of total investment volume of Ukraine (2nd place among the regions after Kyiv)
LABOR MARKET
Dnipropetrovsk region is the main labor market in the southeast part of Ukraine.
Dnipropetrovsk region is one of the leading academic centers of Ukraine
In the region there are: • 53 higher educational institutions of all accreditation levels, in which study 119 thousd. students; 50% корисних копалин України • 58 vocational students (23,7 thousd. students).
• There are 1508 thousd. people of economically active population. • The level of registered unemployment is 8,1%.
• There are 30,7 thousd. people of unemployed population.
Dnipropetrovsk region trains specialists in such spheres as:
• The total number of employees is 791 thousd. people (large numbers are involved in industry, education, trade, health care spheres).
• mining and metals sector; • rocket production; • IT; • medicine;
• chemical industry; • construction and etc.
ECONOMY STRUCTURE OF THE REGION
The volume of region sold industrial output by types of economic activity
Construction $ 452,4 mln 1,7% (6,8% of Ukraine) • Construction of residential and nonresidential buildings • Electrical installation work
Services $ 11 100,4 mln 42,2% (8,4% of Ukraine)
$ 26,3 bln
• Trade • Administrative services
out of the volume
• 4 of 10 largest enterprises in the
of Ukraine
• 4 of 10 largest enterprises in the agricultural sector.
• Growing of grain crops • Production of meat and meat products
of 10 largest industrial enterprises in Ukraine;
construction sector;
$ 1 846,3 mln 7% (5,9% of Ukraine)
• Production of oil and fats
• 7
• Transport
10,8 % Agriculture
In the region concentrated:
Industry $ 12 930,2 mln 49,1% (15,3% of Ukraine)
• • • •
Metallurgical production Iron ores extraction Electricity and gas supply Coal extraction
BRANCH STRUCTURE OF THE REGION FOREIGN TRADE Branch structure of exports
Branch structure of imports
Agriculture
Services
$ 424,9 mln 5,9% (2,8%)
$ 130,1 mln 1,8% (1,2%)
$ 7,2 • Fats and oils • Crop production
Services
• Transportation
bln
• IT
16,3 % out of
• Business services • Financial services
• Business services
Ukraine’s exports
Agriculture
$ 255 mln 5,2% (4,8%)
$ 178,1 mln 3,6% (7,5%)
$ 4,9
9,3 % out of Ukraine’s imports
• Royalty
Industry • Metallurgical production
Industry
$ 6 627,1 mln • Ores 92,3% (23,4% of Ukraine) • Chemical production
bln
$ 4 452,9 mln 91,1% (9,4% of Ukraine)
• • • •
• Animal production • Crop production • Fats and oils
Mineral fuels Pharmaceutical products Machinery and equipment Polymers
Trade of Dnipropetrovsk region is carried out with 65 countries of the world. Leaders are:
China
Russian Federation
Turkey
Poland
Cyprus
United Kingdom
Egypt
FDI IN THE ECONOMY OF DNIPROPETROVSK REGION
Ukraine
Dnipropetrovsk region USD bln
51,7
48,2
45,4
53,7
8,6 40,7
39,0
36,2
USD bln
10,6
39,1
10,2
23,3% 21,2%
9,9 8,9
19,1%
22,1%*
16,6%
5,8
* % of the volume of Ukraine
9,8%
2010
2011
2012
2013
2014
2015
2016
2017
2010
2011
2012
2013
2014
2015
3,5
3,8
9,7%
9,7%
2016
2017
II place according to the volume of FDI attracted
The largest investor countries
USD bln
USD bln 2011
2011
2012
2013
2014
2015
2016
2017
Netherlands
11,4
9,3
8,7
9,0
7,0
6,2
6,3
Netherlands
Germany
5,0
5,3
4,5
2,9
2,1
1,6
1,8
Germany
Cyprus
9,6
12,7
15,9
17,7
12,8
10,2
10,0
Cyprus
Others
19,4
21
22,6
24,1
18,8
18,2
21
Others
2012
2013
2014
2015
2016
2017
4,7
3,5
3,1
3,3
1,9
0,5
0,8
41%
38%
36%
37%
27%
6%
13%
3,2
3,2
3,2
1,4
0,9
0,6
0,6
64%
60%
71%
48%
43%
37%
33%
1,7
2,5
2,4
2,6
1,6
1,1
1,2
18%
20%
13%
15%
13%
11%
12%
1
1
1,1
1,6
1,4
1,3
1,3
INDUSTRY The region's share in the total volume of industrial output in Ukraine is 15,3% Dynamics of industrial branch development
Industrial branch structure
Other
Ukraine
$ 2,4 bln 19,5%
187,2
$ bln 184,3
188,1
Metallurgical production $ 4,9 bln 39,7% Engine building $ 0,4 bln 2,9%
Coal extraction
28,1 (15%)
94,3
28,6
31,6
(15,5%)
(16,8%)
$ 12,3 bln 51,4 % of the regional volume
2012
2013
2014
18,9 (16,3%)
2015
12,9 (15,3%)
2016
The largest enterprises of the industry
$ 0,6 bln 5,1%
Electricity, gas and conditioned air supply $ 1,6 bln 13,1%
116,0
Dnipropetrovsk region
Iron ores extraction
Metal lurgy
Metal lurgy
Pi pe production
$ 2,4 bln 19,7% Gl a ss production
Rocket a nd s pace technology production
mi ni ng and metals sector
INDUSTRY In 2016, most of the region's industrial output was exported (53%) Export structure of industrial products (2017)
Import structure of industrial products (2017)
Machinery and equipment
Transport
$ 11,7 bln 8,5% (2,2%)
$ 12,2 bln 2,5% (26,6%)
Mineral fuels
Other $ 0,2 bln 4,0 %
Chemical products $ 0,2 bln 3,4% (13,3%)
$ 1,3 bl n 30,3% (12% )
Other
$ 4,3 bln
$ 1,5 bl n 32,1%
$ 6,5 bln 96,3 % out of the regional volume
Metallurgical production
92,5 % out of the regional volume
$ 3,9 bln 59,5% (38,8% )
Mineral products $ 1,9 bln 28,8% (47,7%)
Pharmaceutical products $ 0,3 bl n 6,6% (7,2% )
Electric machines $ 0,2 bl n 4.3% (4,8%)
Products of mechanical engineering $ 0,4 bl n 10% (8%)
Priority directions for investment • Manufacture of wagons and locomotives;
Dynamics of investment in the industrial sector $ mln 8 098
• Manufacture of furniture;
7 781
6 275 3 736
• Manufacture of spacecraft; • Manufacture of industrial tanks for corrosive environments; • Production of engineering equipment.
Polymeric materials $ 0,3 bl n 8% (11,4%)
2011
2012
2013
2014
2 200
2015
1 863
2016
2 231 2017
SERVICES The volume of services sold in 2016 is USD 11,1 bln The region's share in the total volume of Ukraine services sold is 8,4% Services structure
Real estate activities $ 299,3 mln. 2,7%
Dynamics of sold services
Scientific activities $ 186,0 mln. 1,7%
Others $ 536,4 mln. 5%
$ bln
149,5
83,2
$ 11,1 bln 42,2% of the regional volume
7,9 (5,3%)
7,6 (9,1%)
7,7 (9,2%)
2013
2014
2012
9,6 (9,4%)
11,1 (10,2%)
2015
2016
The largest enterprises of the industry
International cargo transportation
$ 9 449,6 mln 85,1%
83,6
Dnipropetrovsk region
Transportation $629,6 6 mln 5,7%
Wholesale and retail trade
108,8
102,5
Ukraine
ATC “Yuzmashavia” Cargo air transportation
Banking services ІТ services
Trade
SERVICES In 2016, 1.5% of all implemented services of the region were exported Export structure of services (2017)
Import structure of services (2017)
Other Financial activity
$ 11,5 млн. 8,8%
$ 8,8 ml n 6,8% (11,9%)
Services for the processing of material resources $ 12,7 ml n 9,7% (0,9%)
Business services
ІТ $11 mln 4,3% (2,6%)
Transport services $41,4 млн. 31,8% (0,7% of Ukraine)
Financial activity $31,6 mln 12,4% (7,5%)
$ 130,1 mln 1,2 % out of Ukrainian volume
Other $23 mln 9% Business services $78,8 mln 30,9% (9,8% of Ukraine)
$ 255,6 mln 4,8 % out of Ukrainian volume
Transport services $38,4 mln 15,0% (3,2%)
$ 17,1 ml n 13,1% (1,9%)
Royalties, intellectual property
IT $ 38,5 млн. 29,6% (2,3%)
Priority directions for investment
$72,7 mln 28,4% (18,4%)
Dynamics of investment in the agricultural sector
• Transport logistics • Information and telecommunications
mln $ 31,5
33,7
26,4
24,6
26,2
26,8
• Healthcare service 2012
2013
2014
2015
2016
2017
AGRICULTURAL SECTOR The volume of agricultural products sold in 2016 – USD 1,85 billion The region's share in the total volume of agricultural products in Ukraine – 5,9% Structure of sold agricultural products
Bird breeding $ 169,9 mln 9,2%
Other $ 91,3 mln 5%
Dynamics of sold agricultural products 26
Ukraine 20,2
$ bln 22,2
20,2
Oil seeds
16,5
$ 671,6 mln 36,4% Dnipropetrovsk region
Food products $ 178,8 mln 9,7%
1,4
1,6
1,8
(6,1%)
1,3
(6,9%)
(7,1%)
(5,9%)
(10,9%)
2012
2013
2014
2015
1,4
USD 1,85 bln Meat and meat products $ 237,2 mln 12,8%
7 % out of regional volume
2016
The largest enterprises of the industry
Producti on of a gri cultural ma chinery
Proces sing of oil and gra i n crops
Yea st production
Oils and animal fats $ 497,5 mln 26,9%
Cul ti vation of cereals and i ndustrial crops
Mea t of poultry, eggs
Milk processing
AGRICULTURAL SECTOR In 2016, nearly half of all agricultural products of the region was exported (46%) Export structure of agricultural products (2017 )
Import structure of agricultural products (2017 )
Other
Meat and by-products
$ 51 ml n 12 %
Other Fats and oils
$ 11,7 mln. 2,8% (2,2%)
Fats and oils
$52,8 mln 29,6%
$283,2 mln 66,7% (6,1% of Ukraine)
$50,5 mln 31,1% (18,9% of Ukraine)
$ 178,2
Milk, eggs $ 14,8 ml n 3,5% (3%)
mln
$ 424,9
7,5 % out of regional volume
mln Cereal crops $ 64,1 mln 15,1% (1%)
2,8 % out of regional volume
Meat and products
Fish and crustaceans
$12,9 mln 7,2% (11,4%)
$23,1 mln 13% (5,1%of Ukraine)
Seeds and fruits of oilplants $17,1 mln. 9,6% (4,7% of Ukraine)
Priority directions for investment • • • • • •
Agricultural engineering Agricultural storage infrastructure Agricultural production processing Development of fruit and nut trees and berries Production of high-yielding seeds Development of breeding cattle
Edible fruits and nuts $21,8mln 12,2% (4,6% of Ukraine)
Dynamics of investment in the agricultural sector mln $ 725,3
717,8
776,9
617,0
502,2
2011
2012
2013
2014
2015
586,2
2016
621,9
2017
CONSTRUCTION The region's share in the total amount of construction products in Ukraine– 6,8% Structure of construction sphere Other $ 2,4 bln. 18,9% (%)
Installation of plumbing, heating and air conditioning systems $ 19,7 mln 4,4% (%)
Construction of roads and Highways $ 19,4 mln
Dynamics of construction sphere development Construction of residential and non-residential buildings $ 272, 8 mln 61,5% (%)
Ukraine
$ mln 19 473,8
17 640,7
18 327,2
Dnipropetrovsk region
8 765,1 1206,9 (6,2%)
USD 443,4 Mln 1,7 % out of regional volume
2012
6 926,7
1137,8
927,6
(6,5%)
(5,1%)
523,6
471,4
(6,0%)
(6,8%)
2013
2014
2015
2016
The largest enterprises of the industry
4,4% (%)
Construction of railways and underground $ 20,7 mln 4,7% (%)
Pa i nt production
Concrete production
Installation works$ 27,2 mln 6,1% (%) Cons truction companies
Production of doublegl a zed windows
CONSTRUCTION In 2016, construction products were exported to $ 364 million, representing 10,5% of Ukraine's total exports of construction products Export structure of construction products (2017 ) Goods made of stone, plaster, cement $ 3,8 mln 10,1% (4,3% of Ukraine)
Glass and glassware $ 11 mln 28,9 % (8% of Ukraine)
Import structure of construction production (2017 )
Ceramic products $ 23,8 mln 26,0% (8% of Ukraine)
USD 38 mln 0,5 % out of regional volume
Priority investment areas
Goods made of stone, plaster, cement $ 38,8 mln 42,4% (13,2% of Ukraine)
USD 91,6 mln
Ceramic product 23,2 mln 61% (16,8% of Ukraine)
2 % out of Regional volume
Glass and glassware $ 29,0 mln 31,7% (6,7% of Ukraine
Investments in the construction industry
• Priority investment areas • Modern insulation systems of buildings; • Modern construction technologies; • Building materials; • Production of sheet glass; • Air conditioning and ventilation systems
84,3 98,3
2011
Mln $ 50,1
68,7 36,1
2012
2013
2014
2015
30,5
2016
32,4
2017
PREFERENCES FOR INVESTORS Current state and local preferences:
VAT exemption (20%)
Equipment operating on the renewable energy sources; Energy conservation equipment, components and materials; Generation of electric power from alternative sources, which has no analogues in Ukraine;
Development of IT -products. Investors who operate under the agreement of production sharing; Exemption from taxation of import customs duty
Equipment for arrangement of industrial, scientific and technological parks, which is not produced in Ukraine;
Equipment operating on the renewable energy sources and energy conservation equipment which is not produced in Ukraine;
Materials, blocks and devices for agroindustrial complex, which is not produced in Ukraine.
Local privileges (on the resolution of local authorities)
Preferences for property tax; Preferences for rental rate on land; Preferences for land tax.
MISSION AND GOALS OF DIA Dnipropetrovsk Regional Investment Agency (DIA) was established in 2010 upon regional initiative. The Agency cooperates with different foreign and domestic companies for investment project implementation in the region’s territory . It act as a communicator between investor and regional authorities.
MISSION
GOALS
The DIA’s mission is to provide a solid foundation for stable development of Dnipropetrovsk region, which is built on the basis of open, mutually beneficial cooperation and serves as a base for strengthening the reputation of the region as a reliable partner .
The DIA’s mission is to provide a solid foundation for stable development of Dnipropetrovsk region, which is built on the basis of open, mutually beneficial cooperation and serves as a base for strengthening the reputation of the region as a reliable partner .
CONTACT INFORMATION
Dnipropetrovsk Regional Council
Dnipropetrovsk Regional State Administration
Address:
49004, Ukraine, Dnipro, 2 O. Paul Ave.
Address:
49004, Ukraine, Dnipro, 2 O. Paul Ave.
Tel.:
+38 056 742 85 24
Tel.:
+38 056 742 89 80
E-mail:
oblrada@oblinfo.dp.ua
E-mail:
info@adm.dp.gov.ua
Web:
www.oblrada.dp.gov.ua
Web:
www.adm.dp.gov.ua
Dnipropetrovsk Investment Agency (DIA) Address:
49004, Ukraine, Dnipro, 2 O. Paul Ave., office 538
Тел.:
+38 056 742 86 87 +38 056 742 86 21
E-mail:
info@dia.dp.ua
Web:
www.dia.dp.gov.ua