INVEST IN IVANO-FRANKIVSK REGION
WHY IVANO-FRANKIVSK REGION
2 3 4 5
LABOUR MARKET
6 6 9
R&D LANDSCAPE
12
ECONOMY EXPORT IMPORT
15 18 19
FOREIGN DIRECT INVESTMENTS
20
INDUSTRIAL OPPORTUNITIES
25 25 26 27 28 30 31
LOCATION TRANSPORT POPULATION
EDUCATION WORK FORCE
BUILDING MATERIALS AND TECHNOLOGIES INNOVATIONS AND NANOTECHNOLOGIES RENEWABLE ENERGY VALUE ADDED WOOD SECTORS CHEMICALS MACHINE BUILDING AND ELECTRONICS FOOD MANUFACTURING, AGRY-FOOD, VALUE ADDED AGRICULTURE TOURISM AND LEISURE
32 33
INVESTMENT PROPERTY REAL ESTATE MARKET INDUSTRIAL SITES
34 34 37
LIVING IN IVANO-FRANKIVSK REGION
39
WHY IVANO-FRANKIVSK REGION 2
nd Ivano-Frankivsk region ranks in Ukraine for investment attractiveness in the «Rating of the Investment Attractiveness of Ukrainian Regions – 2014» Diverse, skilled and educated employees are a key feature of the region’s labour market. Businesses find it easy to recruit and retain high quality people, and our labour costs compare low with the rest of Ukraine Advanced education, scientific and innovation platform. Local companies invest significant sums in order to continually bring innovative products and services to the market
Ireland United Kingdom
London 1901 km
A welcoming business environment with competitive costs, friendly infrastructure, and efficient regional governance. Highly competitive rental rates are lower than in many regions across Ukraine An emerging economy with high investment potential. Multinational companies in electro-technical and machine-building sectors have invested here. The region is Ukraine’s only producer of ethylene, polyethylene and polyvinyl chloride suspension. Two-thirds of all washing machines in Ukraine are produced in the region
France
Outstanding quality of life, rich cultural and natural environment, clean and friendly cities, made attractive by combining their quality and cost of living. Ivano-Frankivsk, the regional center, ranks as one of Ukraine’s most livable cities. The City of Kolomyia, the second largest city in the region, ranks as one of Ukraine’s safest cities
3rd region-leader in the tourism sector in Ukraine. Ukraine’s biggest
mountain ski resort located here. Region can host number of tourists which is in 5 times more than its population
Madrid 2506 km Portugal Spain
Finland
km
Helsinki 1491 km
Sweden
Oslo 1799 km
LOCATION
Stockholm 1492 km
20
00
Norway
m
Latvia
15
00
k
Estonia
Denmark
Hamburg 1320 km
10 00
Copenhagen 1405 km
km
Gdansk 858 km
Belarus Russian Federation
Minsk 750 km
Poland
Netherlands
Warsaw 519 km
50
Rotterdam 1735 km Antwerp 1758 km Brussels Belgium 1517 km
Moscow 1201 km
Lithuania
Germany
0 Kyiv 574km
Prague 902 km
Luxembourg
Czech Republic
Paris 2014 km
Vienna 822 km Austria
Switzerland
Slovakia
Ivano-Frankivsk Moldova
Budapest 509 km Hungary Romania
Slovenia
Ukraine
Odessa 828 km
Croatia Bosnia and Herzegovina Italy
Serbia Montenegro
Rome 1403 km
Bucharest 511 km Bulgaria
Sofia 783 km Albania
Ankara 1211 km
Greece Mediterranean Sea
Black Sea
Turkey
Athens 1303 km Syria
Ivano-Frankivsk region is located at the crossroads of three national routes: H18, H09, and H10. All H-routes are connected to the European motorway E50. The region is close to the international highway M06. From Kyiv to Lviv M06 is part of the E40 (Calais-Ridder), from Lviv to Mukacheve – E471 on which from Stryi (Lviv Region) to Uzhhorod M06 also follows E50 (Brest-Makhachkala), and then from Uzhhorod to the Hungarian border by E573 (Puspokladany-Uzhgorod), heading Budapest. The European route E50 (France – Russia) passes through the north of the region, linked with the motorways E40 (Venice - Kyiv) and E85 (Baltic Sea Black Sea)
TRANSPORT
H09 T1417
Rogatyn М12 Е 50
М12 Е 50
Lviv Košice Krakow Dresden
H09 H10
T0910 T1419
Bolekhiv T0911
T0903
Galych Kiev Donetsk
H10
Kalush
P20
Yamnytsya
Dolyna
H18
Ivano-Frankivsk
Rozhniativ
Tysmenytsia
T0902
Tlumach
Bogorodchany
P21
P20
T0906 H09
P38
Gorodenka
H10
Nadvirna motorways
Kolomyia
T0905
T0906
railways aeroport
P24 P20
H10
Yaremche
Sniatyn P24
customs service
T0909
Kosiv
H09
There is an international airport P24 located in the regional center, Ivano-Frankivsk, which can accommodate almost all types of aircraft
P24
Verkhovyna
P62
Bucharest Chisinau
4
POPULATION Population, in thousand persons as of January 01, 2014
1,4 million population comparable to the population of
Rogatyn 3,1% 42,5
Bolekhiv 1,6% 21,6 Dolyna 5,1% 69,8
Kalush 4,3% 60,1
Galych 4,4% 60,9
Prague
Ivano-Frankivsk 17,8% Tysmenytsia Kalush (city) 245,6 6,0% 4,9% 83 67,5
Rozhniativ 5,3% 73,4 Bogorodchany 5,1% 70,1
Yaremche 1,6% 22,8
Upper Austria
Estonia
Munich
Sofia
Milan
Tlumach 3,5% 48,5 Kolomyia 7,3% Nadvirna 100,3 8,3% 115,3 Kolomyia (city) 4,4% 61,3
Gorodenka 4,0% 54,8
The BIGGEST cities Sniatyn 4,8% 65,9
Kosiv 6,4% 88,5
Verkhovyna 2,2% 30,2
Dolyna
Kalush
20,7
67,5
thousand persons
thousand persons
Kolomyia 61,3 thousand persons
Ivano-Frankivsk (city council) 245,6 thousand persons
Burshtyn
Nadvirna
Bolekhiv (city council)
Yaremche (city council)
15,3
22,2 thousand persons
21,6 thousand persons
22,8 thousand persons
5th
The region ranks for natural growth rate in Ukraine
thousand persons
5
LABOUR MARKET EDUCATION
22
22
universities vocational colleges and technical schools
In 2013, the number of students was
In 2013, the number of graduates
56 000 persons
was
18 300 persons
6% of working age population are students The LARGEST Universities are:
A Ω 1940
Vasyl Stefanyk Precarpathian National University
The education system of the Ivano-Frankivsk region is strong in vocational and higher education, providing a large number of highlyskilled workers to the labour market
18 700 students
The National Technical University of Oil and Gas is a member of the International Association of Oil and Gas Universities and the only University in Ukraine that focuses on training professionals for the oil, transportation, and energy sectors
Ivano-Frankivsk National Technical University of Oil and Gas
Population of age 6 and older per education level, 2013 (%)
10 000 students
Higher education 33,7% Vocational education, 21,0% Complete secondary education, 18,3% Basic secondary education, 10,0%
Ivano-Frankivsk Medical University
6 000 students 6
Primary secondary education, 10,0% Under primary secondary education level and illiterate, 7,0%
Graduate Specialties, 2013
Foreign languages in ​​ higher education, 2012
Engineering and natural sciences, 25%
English, 58%
Social sciences, business and law, 21% Humanitarian sciences, art, education and medicine, 43%
German, 20% Polish, 11% French, 7% Russian, 4%
Other specialties, 11%
Number of graduates and students in higher educational institutions, 2013 Specialties Total
8
Students
Graduates
43 655
12 075
Social sciences, business and law
9 017
3 293
Engineering and advanced technologies
7 974
2 024
Medicine, healthcare and veterinary
7 620
1 396
Pedagogics/Education
5 719
1 715
Humanitarian sciences and art
5 771
1 668
Natural sciences
2 888
705
Service sector
1 910
512
Transport
819
218
Agriculture, forestry, fishery and processing
700
231
Construction and architecture
647
186
Geodesy and land management
590
127
Over 85 specialties are offered
by regional vocational colleges and technical schools for future employment in industrial manufacturing, the automotive sector, agriculture, construction, trade, hospitality, transport, and communications
WORK FORCE
work force comprises 165 000 people are employed 70 000 people are employed in over 607 000 people in SME sector (2013) manufacturing sector (2013) The
(563 thousand people were employed and 44 thousand people were unemployed in 2013)
Total employment, thousand people
Labour productivity, GRP per person employed, USD/person 7451
584,7 2000
562,7 528,9
541,9 535,7 522,5
548,5
6393 5195
530,3 4333
511,7
4286
4881
3683 4147
2686
473,2
2012
2013
2004
Unemployment rate (ILO), %
Population age structure, 2012
12,8 11,9 12
Working-age population, 69% Population ages 65 and above, 17% Population ages 0-14, 14%
10,5
2000
10,2 8,8
9 8,3 8
8,2 7,9
8,7 7,9 7,2 2013
9
Total employment by economic sectors, 2012 20,0% Retail and repair, hospitality services 9,7% Education 7,1% Health and social care 4,9% Other types of economic activities
Agriculture, hunting, forestry, fishing, 27,4% Industry, 12,8%
4,4% Public governance
Construction, 4,5%
3,3% Real estate transactions, engineering and other services
Transport and communication, 4,9%
1% Financial activities
Employment by industrial sectors, 2013 13,3% Food and beverages 10,1% Rubber and plastic products and paper processing 7,9% Wood industry, polygraphy 5,8% Chemical industry 4,8% Textile and leather products 3,8% Other industries vehicles, trailers and other transport 3,7% Motor equipment 2,6% Coke and refined petrolium products 2,5% Basic metals and fabricated metal products 2,5% Furniture manufacturing
10
Processing industry, 57% Distribution of electricity, gas, steam and conditioned air; water supply; sewerage, waste management, 30,8% Mining and quarrying, 12,2%
nominal wages
The in Ivano-Frankivsk region represent a genuine competitive cost advantage
Average monthly nominal wages by economic sectors, 2013 (USD)
Nominal wages according to the UNECE Statistical Division Database, 2012 (USD)
339
Economy in total
1
Belgium
4 606
2
Germany
3 771
503 Finance and insurance Finance and insurance 420 Public administration and defence; 409 Compulsory social insurance
3
Croatia
1 328
401
4
Czech Republic
1 326
5
Slovakia
1 275
326
6
Estonia
1 140
324
7
Hungary
1 114
8
Poland
1 083
9
Russia
870
10
Belarus
449
11
Georgia
432
12
Ukraine
379
Ivano-Frankivsk region of Ukraine
340 USD
(average monthly salary)
13
Moldova
287
Employees structure by monthly nominal wages, 2013 (%)
370
308 299 278 263 251 243 232
Transportation and storage
Industry*
Professional, scientific and technical activities Education
Agriculture, forestry and fishing Information and communication
Arts, entertainment and recreation Health and social care
Accommodation and food services Wholesale, retail and repair
Administrative and support services
217 Construction 163 Real estate transactions Other services
* Mining and quarrying; processing industry; distribution of electricity, gas, steam and conditioned air; water supply; sewerage, waste management
40 in all sectors in industry
24,5 27
26
17 21 8,5 11
143 - 250 USD
251 - 375
376 - 500
501 - 625
8,5 13 2 626 - 1250
As of January 1, 2013 - 52 persons in average in IvanoFrankivsk region (10 persons in average in Ukraine) claimed for 1 vacancy. The same index as of January 1, 2012 constituted 39 persons in average in IvanoFrankivsk region and 8 persons in average in Ukraine
more than USD 1250
11
R&D LANDSCAPE pharmacy
alternative energy
Value of completed R&D projects, thousand USD
R&D SECTORS
8945,6
heating systems
energy and generation storage devices
applied technologies
9,5
1 921 professionals with scientific doctorates
8,5
8,2
Value of scientific and technical projects
Number of organizations and employees involved in innovation performance 1157
899
27
23
23
8th position in
12
2012
Value of scientific and technical projects per 1 scientist
The most of the R&D projects in 2012 were achieved with private funding, of those 41% were in scientific and technical services and one-third concerned new developments and technologies
Ukraine for quality of scientific research institutions in Ukraine regions’ competitiveness rating 2013
9,8 9,4
9,1
2005
In 2012, the number of professionals with scientific degree employed in the economy comprised
8283
6227,5
machine building
nanotechnologies oil and gas exploration and transportation
alternative electrics
11,1
10,9
22 21 2005
21
21
21 2012
Number of employees in research organizations Number of research organizations
21,4% of industrial companies in 2013 were engaged in innovation performance
Share of companies involved in innovation performance in the regions of Ukraine, 2013 Zaporizhia region 25,6% city of Kiev 28,8%
The share of innovative companies in Ivano-Frankivsk region ranks above the average in Ukraine
16,8 %
24,9% 23,6%
The most receptive to innovations were chemical and petrochemical, machine building, food and beverages industries
23,2%
20,7%
Kharkiv region
Chernivtsi region
19,4% Vinnytsya region
innovation in Ukraine regions’ competitiveness rating 2013
80 %
Kherson region
21,4% Ivano-Frankivsk region
7th position in Ukraine for capacity for
Over of industrial companies involved in innovation performance introduced the innovations into manufacturing in 2013
Mykolaiv region
18,3% Kirovograd region 18,2% Khmelnytskyi region 264,6
8%
76 %
of industrial companies involved in innovation performance supplied the innovative goods and services to the market
600 titles of innovation products and 124 new technological processes have been introduced in 2010-2013
Total public and private R&D expenditure, million USD
53,0
65,1
65,3
45,1
11,2 2005
19,3
25,8
2012
Regional R&D expenditure has tripled over the past 10 years 13
ECONOMY Sound and diversified economic base
The gross regional product (GRP) in 2012 amounted to
Ivano-Frankivsk region is part of the Carpathian economic region of Ukraine
Dynamics of gross regional product and gross added value
Main economic sectors: industry agriculture tourism construction transport communications Over the past 10 years Ivano-Frankivsk region has
USD 4 087 million (share in the national GRP – 2,2%)
3386
Gross regional product, million USD 2783 2263 1924 1379 1276
2004
1990
2588 2322
2482 2062
2182
2950
2345
1980
1717
Gross added value, million USD
2011
Industry dominates in the regional economy with a share of 40% of total goods (works, services) produced
Industrial manufacturing in the region comprises almost 1 300 companies with 45 thousand employees
recorded steady economic growth 15
16
Structure of regional gross added value, 2011 14,3% Retail and repair 9,4% 7,5%
Agriculture, hunting and forestry, 12,7%
Transport and communications
Education
Mining industry, 11,4%
estate transactions, engineering and 5,6% Real other services to businesses
Manufacturing industry,10,0%
5,4% Public governance 4,3% Health and social care
Energy, gas, water production and distribution, 8,6%
3,9% Financial activity
Construction, 4,2%
2% Utilities, culture and sports 0,7% Hotel and restaurants
Structure of industrial output, 2013 12,4% Food and beverages Manufacturing industry, 43,8%
11,2% Wood products, paper industry and polygraphy
Electricity, gas supply and water distribution, 45,0%
9,7% Rubber and plastic products 4,2% Chemicals and petrochemicals
Mining industry, 11,2%
2,8% Machine building 3198,6
3,5% Other industries
3046,3
Dynamics of industrial production, million USD
2593,2 2013
2325,7 2095,6
1737,9
1604,5 1467,1
1416
1125,1 2004
17
EXPORT
Exports in 2013 were worth a total of
USD 472 million
23%
Almost half of exported goods were supplied to European countries, onethird to the CIS and one-ďŹ fth to Asia
Russian Federation
12% Romania
7%
6%
Jordan
5% Czech Republic
Other countries
1%
Italy
Germany
4%
4%
Belarus
Republic of Moldova
Other CIS countries Other EU countries Other Asian countries
17% 5%
18
6%
10%
Live animals, Machines, Timber and equipment and wood products animal products mechanisms USD 76,8 mln USD 58,9 mln 12,5% USD 95,5 mln 16,3% 20,3% USD mln
%
Pulp of wood and other ďŹ brous cellulosic materials
51,9
11,0%
Polymeric materials, plastic products
41,9
8,9%
Chemical industry products
34,0
7,2%
Textile
27,1
5,7%
Leather, products from leather and fur
22,5
4,8%
Other
63,1
13,3%
IMPORT
11% Imports in 2013 were worth a total of
17%
Poland
USD 578 million Almost 70% goods were supplied from EU countries. 15% of goods were imported from Asia and 11% from CIS
Machines, Polymeric Chemical equipment and industry materials, mechanisms plastic products products USD 139,6 mln USD 123,7 mln USD 107,2 mln 24,1% 21,4% 18,5%
Pulp of wood and other ďŹ brous cellulosic materials
USD mln
%
52,8
9,1%
10% Germany
8% Hungary
Other countries
0,5%
Non-precious metals and products
42
7,3%
Textile materials and goods
30,4
5,3%
Surface transport vehicles, air- and oating crafts
24,4
4,2%
Other
58,1
10,1%
Russian Federation
7%
5% Italy
United States
Other CIS countries Other EU countries Other Asian countries
25% 1,5%
15%
19
FOREIGN DIRECT INVESTMENTS In the last ten years, the region’s inward FDI stocks have grown ten times to reach an amount of more than
Major investors in 2013 were from:
USD 813 million in 2013
USD 590 FDI stock per capita recorded as of January 01, 2014
28,5%
38,5%
Netherlands
Cyprus
90% of the total investments originate from 24 EU countries
53 countries
Resident companies from have invested in the region
5,1%
5%
Denmark
Serbia
5%
Poland
80% (USD 645 million) inward FDI stocks were placed in industry sector
435 companies with FDI projects 1/3 part of industry FDI stock falls to chemical sector
17,9%
Other countries
In 2010, when we made decision to purchase a factory in Ivano-Frankivsk I was the first from the company who visited Ukraine. One of the reason why Electrolux decided to invest here - is your region. Precisely, its special investment climate, which is being considered quite good. Of course, each investment project – is a challenge. When I came to my boss and asked for a few millions of Euro to invest into the deal, he asked me: «Ernesto, do you believe that factory in Ukraine will work, produce and sell products?». I answered yes. Today’s event actually proves this. We see qualified and capable work force, local authority officials, who are ready to assist us, and the products being manufactured Ernesto Ferrario Senior Vice President of Electrolux during plant opening in Ivano-Frankivsk in 2011
20
Whether companies are looking for access to regional centers, a business-friendly environment, a growing economy or stability, investors who set up operations in Ivano-Frankivsk region will benefit from undeniable competitive advantages!
21
FDI projects share by sectors as of January 01, 2014 33% 29% 7%
Food products, beverages
Chemicals and chemical products
Manufacturing industry, 77%
Rubber and plastic products, other non-metallic mineral products
Agriculture, foresty and fishing, 12,3%
3% Textile and clothing
Construction, 3,6%
3% Wood products, paper and polygraphy
Other, 7,1%
2% Other processing industries
Investment projects in Ivano-Frankivsk region’s economy were made by investors from 53 countries, the vast majority of which were EU countries. Key FDI sourcing countries, except Cyprus, whose share in FDI stock was the biggest in 2013, were the Netherlands, Denmark, Serbia and Poland In 2013, as in previous periods dominated «industrial» investments. Specifically, investment projects in processing industry sectors took ¾ of all FDI Major Investors to the region:
Electrolux Sweden
USA
Switzerland
France
Netherlands
ANOSHA Poland
Austria
22
Denmark
Germany
Cyprus
Serbia
Poland
Hungary
Russian Federation
United Kingdom
Germany
23
INDUSTRIAL OPPORTUNITIES BUILDING MATERIALS AND TECHNOLOGIES Rich deposits of zeolites stone salts, kaolin, ceramic clay, raw materials for bricks and tiles
Rogatyn
25 types of minerals 224 mines
1st position among other regions of Ukraine in the number of salt deposits. The reserves are yet to be developed
Galych Kalush
Bolekhiv
3rd position in Ukraine in
Dolyna
producing cement raw materials (11% of Ukraine’s cement production output)
ІVANO-FRANKIVSK Tysmenytsia
Rozhniativ
Tlumach Bogorodchany
Gorodenka
Nadvirna
The main leaders of the region’s building materials production:
Kolomyia Yaremche
JSC «Ivano-Frankivsktsement» the biggest cement plant in the region producing cement, roofing materials, asbestos cement pipes, gypsum and gypsum medical bandages LLC «3 Betony» – manufacturer of unique reinforced concrete construction for modern shopping centers and bridges LLC «Budmaterials» – manufacturer of bricks and building materials
Sniatyn Kosiv
Verkhovyna
Natural gas
Phosphorite
Oil
Gypsum
Peat
Potassium salts
Mineral water spring Glass-making sand Sandstones
Mineral salt Brown coal Ozocerite
Sulfur
25
INNOVATIONS AND NANOTECHNOLOGIES
600 innovation products introduced in 2010-2013
124 new technological processes introduced in 2010-2013 7th position in capacity for innovations in Ukraine regions’ competitiveness rating 2012
8th position in quality of scientific research
institutions in Ukraine regions’ competitiveness rating 2012
National contact points (NCPs) of the EU Seventh Framework Programme for «Nanotechnologies, advanced materials and advanced manufacturing and processing», Vasyl Stefanyk Precarpathian National University «Secure, clean and efficient energy», Ivano-Frankivsk National Technical University of Oil and Gas
26
Innovation infrastructure: Research and training center of National Academy of Science of Ukraine «Physics, chemistry and nanotechnology», Vasyl Stefanyk Precarpathian National University Development and improvement of technologies of growing crystals, films and nano-based semiconductor compounds II-VI and IV-VI, competitive materials for thermoelectric energy converters and devices of the infrared technology Research and Education Center “Nanomateria’s in generating devices and energy storing”, Vasyl Stefanyk Precarpathian National University Application of nanotechnology and nanomaterials in technology sources and energy storages, optimization of the morphology of nano-porous carbon materials, development of new magnetic nanomaterials, new nanomaterials of sensitized solar cells, supercapacitors and lithium electrical energy sources
Oil and Gas Sci-Tech Park, Ivano-Frankivsk National Technical University of Oil and Gas Development, production and speeding up to implement new both domestic and foreign science- based, energy saving, and environmentally friendly technologies and technical means of search, production, transportation, storage and processing of petroleum products and gas
RENEWABLE ENERGY
The technically feasible renewable power capacity in the region accounts for maximum 4,5 million tons of oil per year including potential of energy plants of maximum 2,8 million tons of oil (UNDP Report, 2013) Technically feasible renewable energy potential, thousand tons of oil equivalent (UNDP Report, 2013) 330-770 200-1 100 Energy crops
Wood and agricultural waste biomass
Mountainous terrain provides the region with one of the strongest wind resource in Ukraine. The average wind speed is almost 5,5 m/s. The wind energy potential capacity of 1,6 GW•H per year equal to 270 thousand tons of oil Specific potential of solar radiation in the region (1 200 -1 300 KWT*hour/m2/year) is higher than the average in Germany, solar energy development leader in EU (UNDP Report, 2013)
Renewable energy generating company: Solar power plant «Stari Bogorodchany-1» installed capacity of 2 802 kW and annual electricity generation capacity of 2 957 KW per hour (12 320 units of photo voltage modules) Solar power plant «Gelois-Energy» installed capacity 3 993 KW
270 Wind energy 180 Geothermal energy 130
Solar energy
97 Hydro energy
The share of hydro energy potential of small rivers accounts for
10% of Ukraine’s total
Sectoral tax incentives: The national law of Ukraine foresees numerous tax incentives in terms of Corporate Income Tax, VAT/Customs Duties and Land Taxes for renewable energy generating companies Please, see www.investin.if.ua for details
Green tariffs in Ukraine*
(fixed minimum green tariffs depending on the type of renewable energy sources)
Types of renewable energy source (RES)
Green Tariff, EUR/MWh (exclusive of VAT)
Electricity produced by generating units from Wind
Installed capacity below 600 kW (inclusive)
64,6
Installed capacity above 600 kW but below 2000 kW (inclusive)
75,4
Installed capacity above 2 MW
113,1
Electricity produced from solar sources
Ground-mounted generating units
465,3
Rooftop units with installed capacity above 100 kW
445,9
Rooftop units with installed capacity below 100 kW (inclusive) and units installed on the front of buildings (irrespective of generating capacity)
426,5
Electricity produced by small hydroelectric power plants (with generating capacity not exceeding 10 MW)
77,5
Biomass plants
123,9
*Green tariffs are established in Ukraine until 01.01.2030 and are reviewed by the National Energy Regulatory Commission of Ukraine on a monthly basis with a guaranteed «minimum floor» set in EUR. Green tariffs will be decreased for renewable energy sources units commissioned or substantially modernized in 2014, 2019 and 2024, by 10%, 20% and 30%, respectively, from the current rates specified above
27
VALUE ADDED WOOD SECTORS
Ivano - Frankivsk region is a heart of Ukraine’s forests
45 % of region’s territory is covered with forests
The main leaders: «Krono - Ukraine» - producer of furniture polished slabs, laminated slabs, countertops and OSB/3 slabs
(635,4 ha)
10 % of Ukraine’s wood stock (over 162 million
m3 including in mature and overmature stands - 19,0 million m3). Overall average annual growth of wood 2,5 million m3 (4,4 m3 per 1 ha of forested area)
LLC «Solid - Ukraine» - producer of wood and wood materials like wood parquet, wood briquettes and stairs
LLC «Woodexport» - producer of recycling lumber on the initial and secondary stages, wooden containers and lumber drying
41% of Ukraine’s chipboards production Timber harvesting accounts for
1 375 700 m3
The volume of goods, works and services of forestry accounts for
28
USD 45 million
Private Enterprise «Firma «Collector» - producer of slabs /parquet/parquet boards, planks and friezes for parquet flooring LLC «Uniplyt» - manufacturer of high-quality wood-based products: fiberboard, painted fiberboard in various range of colors and textures; 3D painted fiberboard, plywood (both moisture resistant and waterproof), timber and packaging materials
29
CHEMICALS
Chemicals and chemical products accounted for
4,2%
The main leaders:
of region’s industrial output in 2013 (USD 107,7 million)
LLC «Tarkett Vinisin» - manufacturer of carpets, linoleum, synthetic fibers
Exports of chemical products reached
LLC «KarpatSmoly» - manufacturer of ureaformaldehyde glue of modern technical and technological level
USD 34 million in 2013 FDI in the manufacturing of chemicals and chemical products reached an accumulated
USD 232 million in 2013 53% of Ukraine’s production of plastics in primary
LLC “Kalush Pipe Plant” belongs to PolyPlastic group, which is a leader in the development and manufacture of polymeric pipes and engineering plastics. The company produces high quality polyethylene pipes for water and gas supply, as well as PVC pipes for sewerage and plumbing systems. Annual capacity - 10 tons of plastic pipes
forms
Ivano- Frankivsk region is the only Ukraine’s producer of ethylene, polyethylene, polyvinyl chloride suspension and tufted surface
City of Kalush is a regional leader in the chemical industry
30
State company «Kalush Test Experimental Plant of the Institute of Surface Chemistry” National Academy of Sciences of Ukraine manufacturer of pyrogenic silica (silicon dioxide) of standard grades. The only Eastern European producer of its modified forms (high-tech products). Research and advance technology development in the field of special ultrafine inorganic substances for the manufacturing of advanced composite materials, polymers, rubber and resins
MACHINE BUILDING AND ELECTRONICS
USD 155 million of FDI stock for
2008-2013
1 500 new work places
The main leaders: Production Association «Karpaty» – well-established manufacture operating in electronics sectors, producer of cables and wires for cars (Skoda, Volkswagen, Mercedes), LED lightning products and projects, energy efficient solutions
created in 2008-2013
Elektrolux Ukraine – branch factory of multinational company, manufacturer Electrolux of automatic washing machines under trade marks Electrolux and Zanussi
65% of all automatic washing machines in Ukraine are produced in Ivano-Frankivsk region
A qualified workforce exists for precise engineering and advanced technologies. Ivano-Frankivsk National Technical University of Oil and Gas trains specialists in electrical engineering, automation and computer integrated technologies, mechanical engineering and maintenance of mechanical building productions
Tyco Electronics - over EUR 60 million investment project of multination company launched in 2008, producer of electro cable products for automobile industry
Microl - a new look at the world of modern technologies and applications in the design and manufacture of automation of manufactured products, efficient supply of energy resources, energy conservation, applied technologies
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FOOD MANUFACTURING, AGRY-FOOD, VALUE ADDED AGRICULTURE
2nd place in Ukraine for agricultural output
The main leaders: LLC «Imperovo Foods» - manufacturer and supplier of high-quality egg products, fermented protein (albumen) powder. The largest Ukrainian egg-products exporter
per 100 ha of agricultural land, 2013
USD 708 million gross agricultural output USD 328 million gross crop production
LLC «Grain-processing company «UMAS» – producer of wheat flour under the brand name «Albinos»
USD 380 million gross livestock production
JSC «Production and Trade Confectionary Firm «Lasoschi» – manufacturer of confectionery products: pralines, lollipop caramel with fillings, churned and jelly glazed candies, sweets in gift boxes
1st place in Ukraine for gross livestock
production per 100 ha of agricultural lands, 2013
Share of food and beverage production accounted for
12,4% of industry output ANOSHA
795 agricultural enterprises and farms recorded Agricultural land cover 630,9 ha in 2013 including: arable land - 62% (392,9 ha) pastures - 20% (128,2 ha) hayfields - 13% (83,6 ha) other – 5% (26,2 ha)
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LLC «Danosha» - Ukrainian pig farming company with Danish investments, a sister company to Poldanor in Poland: animal and plant production, breeding of healthy low-fat pigs with high growth, good feed conversion and high fertility, based on Danish breeding material Company «Kniagynyn»- a renowned Ukrainian producer of alcoholic beverages like «Horilka» and liquors
Sectoral tax incentives: Qualified agriculture producers in Ukraine are subject to particularities in taxation, under which: • Corporate Income Tax is being paid on the basis of reporting period of a year (not on a quarterly basis) • Amount of corporate income tax due is reduced by the amount of land tax paid • Special taxation of VAT – exempted fully or in part from VAT payments, accounted on the value of agricultural goods/services sold • Fixed agricultural tax – exemption from number of obligatory taxes and duties (Income Tax, Land Tax etc), simplified system of accounting and reporting
TOURISM AND LEISURE
Tourism is one of Ivano-Frankivsk region’s key sectors
The main leaders:
Tourism and leisure industry sales accounted for
USD 29,5 million of tourism expenditures in 2012 8,2 million tourists - annual accommodation capacity The biggest in Ukraine mountain ski resort attracts over 1 million visitors annually 869 facilities of historical heritage
The tourism industry encompasses a wide range of market segments with their breadth of motivations and needs. There is considerable scope for more tourism investment in accommodation, attractions, transport and tour operations
99 places of nature heritage 1 443 places of architecture heritage 124 museums 1 490 archeological places UNESCO World Heritage Sites – Holy Spirit Church in Rogatyn and the Blessed Virgin Mary Nativity Church in the Nyzhniy Verbizh of Kolomyia district Local government investments in tourism and infrastructure projects: • Road construction to the state border with Romania for vehicles of 3,5 tons carrying capacity and border pass infrastructure • Master planning of two potential mountain resort areas in Vyshkiv and Myslivka in Dolyna district • Vygoda Historic Railway Heritage Center in Dolyna district Sectoral tax incentives: Profit obtained from the provision of hotel services in hotels with 5*, 4*, 3* is exempt from Corporate Income Tax until 01.01.2021 33
INVESTMENT PROPERTY REAL ESTATE MARKET
4,5 million m2 of new residential property have been commissioned since 2000 City of Ivano-Frankivsk took a
leading position
in Ukraine in commissioning new residential property (m2) per capita in 2006-2013
Competitive prices for industrial property
Office space rent prices, USD per m2 Ivano-Frankivsk
3,9 - 9,1
Ternopil
3,9 - 10,4
Khmelnytsky
4,5 – 11,7
Lviv
6,5 - 15,8
Dnipropetrovsk
9,1 - 16,9
Odessa
9,1 - 24,7
Kyiv
13,0 - 26,0
Storage facilities rent prices, USD per m2
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Ivano-Frankivsk
1,6 - 3,2
Ternopil
1,9 - 3,9
Khmelnytsky
2,3 - 5,8
Lviv
2,6 - 6,5
Odessa
3,2 - 6,5
Dnipropetrovsk
3,9 - 7,8
Kyiv
4,5 - 9,1
Ivano-Frankivsk Regional Centre for Investors and Development offers unique industry property search facility at
www.investin.if.ua 34 brownfields
sites with total area of 2 558 502 m2 (255 ha) and 338 887 m2 of industrial space
92 greenfields sites with total area of 13 021 855 m2 (1 302 ha)
Rogatyn
1
Kalush
2
Bolekhiv Dolyna
4
3
4
6
Rozhniativ
Galych
4
3
Ivano-Frankivsk
Kalush (city)
1
1
1
Tysmenytsia
2
2
4
3
Tlumach
14
Bogorodchany
5
Kolomyia
6 1
Yaremche
1
5
Nadvirna
8
Kolomyia (city)
3
5
Sniatyn
Kosiv
4 Verkhovyna
36
Gorodenka
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INDUSTRIAL SITES
Incentives for location within the registered industrial parks in Ukraine: 1. Exemption from import duties on imported machinery, equipment and components
Dolyna industrial park
Kalush industrial park
Kolomyia industrial park
Khryplyn industrial zone
Cities
Dolyna (population: city – 20,7 thousand people, district – 69,8 thousand people). Distance to the regional center – 50 km
Kalush (population: city – 67,5 thousand people, district – 60,1 thousand people). Distance to the regional center – 35 km
Kolomyia (population: city – 61,3 thousand people, district – 100,3 thousand people). Distance to the regional center – 60 km
Ivano-Frankivsk (regional center, population: 245,6 thousand people)
Ownership
Communal - Dolyna city council
Communal - Kalush city council
Communal - Kolomyia city council
Communal Khryplyn village council, Mykytyntsi village council (city of IvanoFrankivsk), private
Area (total/usable)
29,4 ha / 27,1 ha free from buildings, the area is planned to be divided into 6-11 land plots
18 ha (with possibility of extension up to 26 ha) free from buildings, the area is planned to be divided into 3 land plots
33,7 ha / 33,7 ha free from buildings, the area is planned to be divided into 5 land plots with possibility of their fragmentation into smaller 2-2,5 ha (up to 11 land plots)
612 ha in total, 270 ha available, 30 ha in municipal ownership
wood processing, light industry, machine building
large capacity enterprises, enterprises of innovation sectors of industry
light, wood processing and machine building industries (particularly automobile building)
machine building, applied technologies, electronics, construction of building materials
Territory
2. Exemption from payments to the local infrastructure development funds 3. State financial assistance, preferential loans 4. Easy access to the land of industrial use
Industrial facilities Proposal concerning allocation of industrial facilities
Engineering infrastructure Electricity
0,8 km - transformer substation 110/10 kW
0,05 km - power station-220, 250 MW
0,5 km - substation «ZBVK» 35/10 kW in the area– PL-35 kW
0,4 km - industrial capacity
Water
0,9 km - water pipe line, 500 mm diameter
0,01 km - industrial capacity water pipe line
1,5 km - water pipeline, 90 mm diameter
0,4 km - industrial capacity water pipe line
Gas
0,6 km - gas distribution substation, gas pipe line of high pressure
gas pipe line, 159 mm diameter in the area (area limit)
gas pipe lines in the area
0,4 km - industrial needs capacity
Transport and social infrastructure Distance to the motorway, km
0,1 km Motorway Dolyna – Khust
9 km Motorway IvanoFrankivsk – Stryi
1 km Motorway N-10
3 km E 85, Baltic Sea – Black Sea
Distance to the railway, km
4,1 km Dolyna station, 0,05 km railway station for industrial use
7 km Cargo station with customs terminal
1,8 km Kolomyia station
0,1 km Khryplyn station
Distance to the airport, km
69 km - International airport «IvanoFrankivsk»
45 km - International airport «IvanoFrankivsk»
60 km - International airport «IvanoFrankivsk»
6 km - International airport «IvanoFrankivsk»
Distance to the residential area
0,5 km
2 km
1,5 km
2 km
Custom points
Custom point «Dolyna»
Custom point «Kalush»
Custom point «Kolomyia»
Custom point «IvanoFrankivsk - central»; international crossing point for air connection «Ivano-Frankivsk»
THE BEST REGION TO LIVE in Ukraine
LIVING IN IVANO-FRANKIVSK REGION Traditional cultural environment
Housing and lodging available at low rent price
Gorgeous Carpathian landscapes, pristine air, and crystal rivers have nourished generations of truly generous people. Wherever you go, you will be welcomed as dearest guests, feel the magic of the local traditions experienced through the local foods, the crafts and the magnificent landscape. Languages spoken in the region: Ukrainian, Polish, Russian, English, German
The average rent price in the city of Ivano-Frankivsk, 2013 (USD) For studio apartment - 131- 265 For 1 bedroom apartment - 195 - 398 For 2 bedroom apartment - 265 - 531
Comfort and safety Regional center, the city of Ivano-Frankivsk, ranks as «THE BEST LIVABLE CITY IN UKRAINE» (Focus Magazine rating, 2007-2012)
City of Kolomyia ranks as «THE SAFIEST CITY IN UKRAINE» (Focus Magazine rating, 2013)
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Quality school education
386 Pre-schooling establishments
Reliable healthcare
6th position in Ukraine for the quality of healthcare (Ukraine regions’ competitiveness rating 2012)
745 Secondary schools For families with kids there are various children development centers available at reasonable prices: private sport sections, dancing schools, Lego clubs, summer camps, and different art development studios
2nd position in Ukraine for the average life expectance (years at birth)
(Ukraine regions’ competitiveness rating 2013)
15 private clinics located in the regional
centre, city of Ivano-Frankivsk
City life Local restaurants range from upscale European to traditional Hutsul restaurants. In any case, the price is low compared to the taste and quality of dishes Authentic handmade souvenirs and stylish local brands can be purchased on the traditional markets in Kosiv and Yaremche, as well as in shopping malls and boutique shops in Ivano-Frankivsk and Kolomyia Night entertainment, theatres and cinemas are at your convenience and choice in bigger cities
High-quality health services are provided by local most respected hospitals
108 nurses for 10 thousand of inhabitants 63 doctors for 10 thousand of inhabitants 272 of medical establishments 85 hospitals
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Holiday opportunities Fresh air, beautiful landscapes, gorgeous mountains create unforgettable atmosphere for our guests to relax. You can choose from diverse accommodation options: boutique hotels, mountain resorts, spa and wellness facilities, B&B, self catering and private cottages. If you choose to visit private households of hospitable highlanders, you will be able to rest in the centres of wild nature, get acquainted with the environment and taste traditional home-made dishes cooked from eco-friendly ingredients
Popular outdoor tourist activities: relaxation and professional walking, wild life watching, cycling, skiing, horse riding, rafting, spa and wellness relaxation, crafts and cooking classes and many others
For kids this may be the first experience of learning about wildlife by observing birds, animals and even insects in their natural environment – mini zoo with the Carpathian national nature park in Yaremche. Make sure you bring your entire family here; your children will appreciate it!
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Hungary-Slovakia-Romania-Ukraine ENPI Cross-border Cooperation Programme
The Programme is co-financed by Europian Union
This publication has been prepared within the project “Local development and preconditions for border pass opening and motorway construction across the Ukrainian-Romanian state border in Shybene Verkhovyna district Ivano-Frankivsk Oblast of Ukraine and Poenile-de-Sub-Munte Maramures County of Romania”, which is implemented under the Hungary-Slovakia-Romania-Ukraine ENPI Cross-Border Cooperation Programme 2007-2013 (www.huskroua-cbc.net) and is co-financed by the European Union through the European Neighborhood and Partnership Instrument. The European Union is made up of 27 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The European Commission is the EU’s executive body. The Hungary-Slovakia-Romania-Ukraine ENPI Cross-border Cooperation Programme is to be implemented in the period of 2007-2013 on the external border of the participating EU Member States with Ukraine. The European Neighbourhood and Partnership Instrument supports cross-border co-operations on the external borders of the EU. The overall objective of the Programme is to intensify and deepen cooperation in an environmentally, socially and economically sustainable way between Zakarpatska, Ivano-Frankivska and Chernivetska regions of Ukraine and eligible and adjacent areas of Hungary, Romania and Slovakia. The Joint Managing Authority of the Programme is the National Development Agency, Hungary. The website of the Programme is www.huskroua-cbc.net
Invest in Ivano-Frankivsk Region, 2014 – 44 pages. 4000 copies. Distributed free of charge © Agency for private Initiatives Development © Ivano-Frankivsk Regional Center for Investment and Development
ONE-STOP SHOP FOR INVESTORS INVESTOR INQUIRY ASSESSMENT
INDUSTRY ASSESSMENT
BUSINESS INTELLIGENCE Information supply • Handling investment inquiries • Sectoral investment opportunities • Investment projects • Legal & business framework for FDI Research & contacting • Basic market analysis • In-depth industry research • Regional data research • Study of competitors’ market
INVESTMENT PROPOSAL
SITE VISITS
DEAL FACILITATION
PRE-INVESTMENT SUPPORT SERVICES
SUPPORT IN GETTING STARTED
Investor visit arrangements • Visit arrangements • Meetings with local authorities • Meetings with private institutions
Site development support • Hard infrastructure development • Business start-up • Identification of local suppliers and service providers • Feasible project partner search and contact • HR support
Location selection services • Site visits • Site allocation • Property investigations • Real estate search
Local & central government relations • Licensing and permits • Liaising with regulators
PROJECT LAUNCH
AFTERCARE
AFTERCARE Business development & networking • Investment expansion/reinvestment plans • Update on legislation changes • Identification of local suppliers • Business networking Troubleshooting • Individual troubleshooting • Assistance in day-to-day operational issues
The Ivano-Frankivsk Regional Center for Investment and Development: is an investment promotion unit located within the State Agency for Investment and National Projects of Ukraine. It provides a simplified system of cooperation between Investor, Government and Local authorities through a onestop-shop format. It is a public vehicle for investors, providing support for accessing business information and legal advice. It provides high quality consultancy in areas of project integration for strategic investors who are considering investing in the Ivano-Frankivsk region of Ukraine. As a voluntary organization, it provides free advice to investors who want the easiest and shortest way to establish a business
WE ARE AT YOUR SERVICE 24/7 office 655 21 Grushevskogo St 76004, Ivano-Frankivsk Ukraine +38 (0342) 54 20 95 iv.frankivsk.rcid@gmail.com
www.investin.if.ua This publication has been produced with the assistance of the European Union. The contents of the brochure is the sole responsibility of NGO “Agency for Private Initiative Development” and can in no way be taken to reflect the views of the European Union.