The heavy engineering industry remains one of Ukraine’s key economic sectors and a highly attractive field for international investment. Its core areas — energy, metallurgy, mining, defense, and infrastructure — are driving sectoral transformation and opening new opportunities for long-term and effective partnerships with foreign investors.
The industry contributes over 12% to Ukraine’s total industrial output and accounts for 2.1% of the national GDP. Despite a 43.1% decline in production in 2022 due to the war, the sector has nearly stabilized by 2024, with over 50% of enterprises expecting growth in the near future. The main production facilities are concentrated in the Dnipropetrovsk, Kharkiv, and Zaporizhzhia regions — areas that have suffered significant damage. This highlights the urgent need for decentralization and diversification of industrial regions, creating new investment opportunities.
Key sub-sectors include mining and metallurgical engineering. In 2024, Corum Group (DTEK) introduced a new tunneling machine and by 2025 had produced over 1,100 units of equipment. The Novokramatorsk Machine Building Plant, restored in 2023, now exports 82% of its output, with revenues tripling. Major players like Metinvest and ArcelorMittal continue investing in modernization and energy independence. Notably, Metinvest plans to invest UAH 5.7 billion in 2025.
The energy machinery segment, led by JSC “Ukrenergomashyny” (Turboatom), is currently focused on restoring production capacity, much of which is being relocated to western Ukraine. Demand is rising due to the rebuilding of the national energy infrastructure, with support from international partners such as the EBRD.
The implementation of the Industry 4.0 strategy places heavy engineering, the defense sector, and the aerospace industry at the heart of Ukraine’s reindustrialization — with a focus on high-tech innovation, job creation, SME development, and digital transformation.
International cooperation through UkraineInvest and EU4Business plays a critical role in attracting foreign investment and supporting SMEs. However, there is a growing need for robust export support tools, such as insurance and financing mechanisms.
Reducing import dependency through the development of local production — particularly in the defense sector — is a strategic priority. This strengthens national security and improves the resilience of supply chains. Industrial recovery is also aligned with principles of energy efficiency and sustainability, offering investors new opportunities in green equipment manufacturing and renewable energy.
The defense sector is experiencing rapid growth: arms production has increased 35-fold, and in 2025 the volume may reach $35 billion. Ukraine now produces about 40% of its own defense needs. Investments in defense tech are laying the foundation for a high-tech civilian manufacturing sector post-war. The government actively supports the industry through large-scale programs and international cooperation.
A notable emerging area is the production of humanitarian demining equipment. With estimated needs reaching $37 billion, this represents a strategic growth niche for the heavy machinery sector.
Widespread destruction of Ukraine’s energy infrastructure is also driving long-term demand for turbines, generators, and energy-efficient equipment — a demand being met with strong EBRD investment support.
Agricultural machinery remains a stable sector with significant potential for innovation in smart farming technologies, supported by government localization programs.
In summary, Ukraine’s heavy engineering industry combines traditional expertise, cutting-edge innovation, and strategic defense production. It is poised to become a major driver of the country’s economic recovery. UkraineInvest provides comprehensive support to investors looking to be part of this transformation.
Read the full report here: https://ukraineinvest.gov.ua/en/industries/heavy-machinery/
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