Around 15 international companies are planning to locate production facilities in a technology park to be built in Irpin, Ukraine (Kiev oblast’). These are companies from Poland, Austria and Germany with sustainable production operations. This is an increasingly important aspect of investing in Ukraine, where the climate and the will to rebuild the industry to global standards is growing.
One such company is Ecosoft, a large corporation which wants to increase its production capacity. In addition, prior to the full-scale Russian invasion, the authorities of Irpin were in talks with Philips about building production facilities in the city. Irpin have also proposed to Ajax, which the business focused on manufacturing alarm systems, to locate a production plant in the local technology park. The mayor of Irpin reported that there is already a draft presentation of the technology park to be approved with the Ukrainian ‘state leadership’. He stressed that the new technology park would have many advantages. The first is convenient logistics. The park will be located just off three major arteries connecting Warsaw, Zhytomir and Novoirpinsk. A second advantage is the access of all required utilities, drainage, water supply, and natural gas service. In addition, the site will be just one kilometre from the Irpin grid substation. The third advantage is that the technology park will be located on state-owned land, so there is no need to negotiate with thousands of private land shareholders. The site can be divided into large parcels, each two, three or seven hectares big to build the production facilities on. According to the mayor, this technology park will sustain not only the whole of Irpin, but also the entire Kiev oblast’, as there are almost 300 hectares of land. The Irpin City Council will support the businesses on the administrative side, assist with all formalities and provide any resources and information that may prove helpful to the success of the projects (including the required permits and exemption from property tax for the duration of construction). This is the only way to attract the private sector, and it is very important for the city because there will be businesses, jobs and revenue from personal income tax. In addition, the mayor or Irpin explained that each company would do everything at its own expense and the municipality would lease the land.
What drives the choice of this and similar investment locations in Ukraine? Local government activity, local conditions or zero threat of military operations? It turns out to be a complex and dynamically changing matter… Read more in our newsletter, “SURET Close to Ukraine”. Subscribe here. →
