Vollert Anlagenbau GmbH, a German technology owner and manufacturer of equipment for industrial house building, together with Ukrainian partners, announced the launch of an investment project in Ukraine to build a network of house building factories. A memorandum to this effect was signed during the Ukraine Recovery Conference (URC2024) in the presence of Vasyl Shkurakov, Acting Minister of Communities, Territories and Infrastructure of Ukraine, and Franziska Brantner, Parliamentary State Secretary for Economic Affairs and Climate Action.
It is planned that the total production capacity of the entire network will be up to 1 million square metres of affordable housing per year, using the most advanced German conveyor technology for the production of precast concrete structures for mass construction of residential and other buildings.
The first plant will be built in the Kyiv region by the end of 2024. The production capacity of the plant will be up to 300,000 square metres of housing (up to 5,000 apartments) per year. The contract has received financial support from a consortium of German banks and appropriate insurance coverage, including military risks, from the leading German insurer Elmer Hermes. The German side is also transferring to Ukraine technology for recycling construction waste from the demolition of residential buildings for reuse in new construction/renovation. The total investment will amount to EUR 165 million.
According to David Arakhamia, Chairman of the Supervisory Board of UkraineInvest, the implementation of this project will significantly accelerate the reconstruction process and is a worthy example for foreign investors to actively invest in the Ukrainian economy.
Investment and analytical support from the Ukrainian side will be provided by UkraineInvest, as the project has the necessary features of a significant investment project.
According to the Investment Guide for Ukraine, developed by the Government of Ukraine in cooperation with the KSE Institute, Ukrainian businesses and consultants as a comprehensive resource for the Ukraine Recovery Conference held in Berlin on 11-12 June 2024, the Ministry of Communities, Territories and Infrastructure plans to provide the housing and quality of life necessary for people to stay in Ukraine and encourage refugees to return home. Promote growth and employment in the construction sector and economic growth in general. Compensation for destroyed housing. Limited funding for the purchase of new housing or the construction of new housing on existing plots. ~32.2 thousand families (96.9 thousand people) in destroyed housing. Repair of damaged and new construction of multi-apartment buildings (MABs) and conversion of existing non-residential buildings into MABs for ~81,260 families to provide shelter for IDPs in Ukraine. Construction of social housing to meet the needs of IDPs and others who cannot afford housing due to loss of income or other consequences of the war, including people with disabilities, the elderly, children, veterans and families of veterans killed in the war. ~Approximately 24,000 social housing units in 5 regions will provide affordable rentals for ~9.5 thousand families registered as temporary housing and others, affordable rents for ~60 thousand families, and affordable mortgages for ~4.4 thousand families. As reported, the European Bank for Reconstruction and Development will provide Ukraine with EUR 300 million to help ensure stable and uninterrupted electricity supply, according to a memorandum signed between the Government of Ukraine, the World Bank and the International Finance Corporation. Ukrainian Prime Minister Denys Shmyhal said: “Our task is not only to restore damaged and destroyed housing. It is also to modernise the entire housing policy in line with EU standards”. In addition, he said, Ukraine would work with the World Bank to create incentives for private banks to provide affordable loans to Ukrainian families, so that more and more families can buy their own homes.
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