Ukraine has a large manufacturing base which historically was focused on heavy industry. Machinery manufacturing continues to be one of the key growth drivers of the Ukrainian economy.
Industrial machinery sector in Ukraine is dominated by an extensive network of machine building enterprises involved in production of mining equipment, railway rolling stock, farm equipment, turbo propellers, gas turbines, machine tools, aircraft engines, instrumentation for the light and food industries.
Ukraine’s machine-building is characterized by following advantages:
- Ukraine has significant reserves of raw materials which together with a developed metallurgy industry can satisfy large production needs. Most machine-building enterprises are located in the East of Ukraine, which is within short distance from raw materials supply base, mainly steel.
- Ukraine is well supplied with an educated labor force as domestic universities and colleges graduate c. 10,000 students from machine-building faculties annually.
- Availability of developed transport infrastructure makes easy access to large export markets of Europe, Asia and the Middle East.
Historically, Ukraine’s industrial machinery manufacturing had strong connections with CIS countries which served as both suppliers of components for Ukraine’s enterprises and main markets for Ukraine’s produce.
In recent years, Ukraine’s industrial machinery had to reorientate to other markets due to political reasons. In 2019, Ukraine’s exports of industrial machinery amounted to 4.4 billion dollars. Still, Ukraine’s production and export potential remains rather significant with much room for future growth.
At the same time, 2019 imports amounted to 13.3 billion dollars (22% of total Ukraine’s imports) showing strong domestic demand for quality industrial machinery.
Significant opportunities are also connected with the potential privatization of large state-owned enterprises involved in production of heavy machinery.