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INVESTMENT PASSPORT of Ternopil Region

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INVESTMENT PASSPORT of Ternopil Region INVESTMENT PASSPORT of Ternopil region 2015 WELCOME SPEECH Dear Sirs/Madams! We have the honour to represent you an investment passport of Ternopil region, which we believe contains comprehensive and qualitative information on the investment opportunities of the region. Our region is situated in the centre of Western Ukraine and owns a favourable economic and geographical location. The main advantage is a considerable natural and resource potential – highly productive land and forest fund and prospected reserves of mineral water. The unique tourist and recreational potential makes our region an attractive place for investments and business development. Ternopil region is a spiritual heart of Ukraine. There are Greek-Catholic, Rome- Catholic and Protestant churches, which are yearly visited by millions of people from around the world. Our region is one of the leading educational centers, which in many respects have already achieved recognition in Ukraine and in the world. The higher educational institutions of the region prepare specialists for foreign countries, mainly from Middle East, Africa and Asia. There are also a number of educational institutions realizing the programs on retraining and advanced training for managers and other specialists. We hope that the given publication would not only enhance investment attractiveness of the region and become the effective tools to set business contacts with potential investors, but also would favour making positive decisions on investing in Ternopil region. We invite potential investors to mutually beneficial cooperation in further harmonious development of all the areas of the economy of the region. We would jointly build a powerful economically developed Ternopil region. Respectfully Respectfully Stepan Barna Vasyl Khominets Head of Ternopil Regional Head of Ternopil State Administration Regional Council 2 COMPETITIVE ADVANTAGES OF THE REGION Advantageous geographical location: Ternopil is a transit centre of Western Ukraine Favourable natural and climatic conditions for implementation of investment projects in agriculture and renewable energy sector. Considerable natural resource potential – 0.9 mln. hectares of cropland, about 300 deposits of non-metallic minerals Unique tourist potential – one third of the castles of Ukraine, unique caves, shrines High scientific and educational potential – 33 higher educational institutions (HEI) including 3 national ones, and 44.9 thousand students Human resources potential – about 443 thousand people of economically active employable population 3 CONTENTS SECTION І. DESCRIPTION OF THE REGION 1. Geographical and climate conditions 2. Demography and human resources 3. Raw materials potential 4. Main indicators of economic and social development 5. Economic potential 6. Transport infrastructure 7. Education 8. Socio-cultural sphere 9. Success stories SECTION ІІ. INVESTMENT OFFERS 1. Priority spheres for investment 2. Strategic investment projects 3. Land plots and real estate objects SECTION ІІІ. CONTACT INFORMATION 4 SECTION І. DESCRIPTION OF THE REGION 1. GEOGRAPHICAL AND CLIMATE CONDITIONS 2 REGION AREA – 13.8 thousand km NUMBER OF SUNNY DAYS PER YEAR – 208 AITITUDE – 116–443 m REGIONAL WATER RESOURCES: There are 1401 rivers and 26 reservoir storages with RAIN FALL the total water volume 81.2 mln. m³ in the region. from 520 to 600 mm per year (75% in summer), Most of the rivers (80%) belong to Dniester basin. mild-continental climate The largest rivers are Seret, Zbruch, Strypa, Zolota Lypa, Nichlava, Koropets. AVERAGE TEMPERATURE : January: –5.0 °C, July: +19.0 °C 5 DESCRIPTION OF THE MAIN RIVERS IN THE REGION Name of the river Length, km Area of water intake, km 2 Dniester 262 11,307 Seret 258 3,900 Zbruch 247 3,330 Strypa 146 1,608 Zolota Lypa 98 1,414 Nichlava 81 885 Koropets 79 529 2. DEMOGRAPHY AND HUMAN RESOURCES Largest cities thousand Age Structure Ternopil 217.8 60 years 0-15 years Chortkiv 29.7 and elder old 16,8% Kremenets 21.6 20,7% Berezhany 18.3 Zbarazh 14.1 16-59 years Terebovlya 13.7 62,5% Buchach 12.7 Borshciv 11.1 Sex Structure Women Rural 53,3% Urban Men 55,7% 44,3% 46,7% TOTAL POPULATION – 1069.9 thousand people 6 Human resources (as of 01.01.2015) WORKING AGE POPULATION – 443.2 thousand. RATE OF REGISTERED UNEMPLOYMENT – 2.4% (to working age population). AVERAGE MONTHLY WAGE – UAH 2527.0 (for 2014 as of 01.01.2015). STRUCTURE OF EMPLOYEES BY ECONOMIC ACTIVITIES Employees total – 170.2 thousand people agriculture, hunting and forestry 31,3% trade 16,8% education 11,1% others 10,9% industry 9,3% health care 7,3% public administration 5,5% transport 4,6% construction 3,2% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 3. RAW MATERIALS POTENTIAL As of 01.01.2015, total area of Ternopil region is 1382.4 thousand hectares, which makes 2.3% of the territory of Ukraine. Out of total area of Ternopil region, 1046.4 thousand hectares or 77% are occupied by farmlands, indicating on a high level of agricultural cultivation of the land. 7 LAND STRUCTURE agricultural land 77% forests 15% buildings 5% water 1% others 2% 4. MAIN INDICATORS OF SOCIAL AND ECONOMIC DEVELOPMENT Name of indicator Measurement unit 2013 2014 1 2 3 4 Volume of sold industrial output mln 8124.6 9287.7 Volume of livestock production mln 2259.4 2330.7 Volume of crop production mln 5792.0 6763.8 Volume of direct foreign investments $ mln 68.9 55.8 Volume of capital investments mln 2976.2 2590.0 Volume of completed construction works mln 689.8 782.0 Volume of export $ mln 381.8 379.0 Volume of import $ mln 362.3 311.9 Volume of retail turnover mln 5046.8 6098.3 Volume of service sales mln 2368.1 2627.3 Average monthly wage 2,359 2,527 5. ECONOMIC POTENTIAL PRIORITY SECTORS OF ECONOMY IN THE REGION Over 300 industrial enterprises are located in Ternopil region. The following branches dominate in the sales of industrial products: food production, mechanical 8 engineering, manufacture of rubber and plastic products, other non-metallic mineral products, the share of which in the total sales volume is over 70%. EXPORT/IMPORT, COUNTRIES, BALANCE FOREIGN TRADE TURNOVER – $726.8 mln. EXPORT – $414.9 mln. IMPORT – $311.9 mln. FOREIGN TRADE BALANCE +$103.0 mln. Foreign trade in goods was carried out with 83 countries of the world. Major partners in export of goods Poland 49,8% Russian Federation 5,0% Spain 4,1% The Netherlands 3,9% Belgium 3,3% Egypt 3,1% Pakistan 2,9% Belarus 2,6% Saudi Arabia 1,9% Italy 1,7% Republic of Korea 1,6% Moldova 1,5% Germany 1,4% 0% 10% 20% 30% 40% 50% 60% Major partners in import of goods Poland 56,3% Germany 10,9% Romania 3,3% Belarus 3,2% China 2,7% Switzerland 2,6% The Netherlands 2,6% France 2,1% Italy 2,1% Czech Republic 1,9% Russian Federation 1,5% Hungary 1,4% Belgium 1,4% 0% 10% 20% 30% 40% 50% 60% 9 Foreign trade in services was carried out with 100 countries of the world: export transactions – with 95, and import transactions – with 44 countries. Structure of goods exported Electrical machinery and equipment 47,3% Crops 20,9% Seeds and oleaginous fruits 9,3% Furniture 3,3% Meat and foodstuff by-products 3,1% Wood and woodwork 3,1% Products of vegetable and fruit 2,8% processing Textile clothes 1,4% Proteins 1,2% Hides and skin unprocessed 1,1% Other goods 6,5% 0% 10% 20% 30% 40% 50% Structure of goods imported Electrical machinery and equipment 39,1% 12,4% Boilers, machines, apparatus, 9,9% mechanisms 7,6% Surface transport vehicles 3,2% 2,7% Essence oils, cosmetic products 2,6% 2,3% Paper and paperboard 1,8% 1,4% Textile materials 1,3% 1,2% Pharmaceutical products 1,1% 1,0% Other goods 12,4% 0% 10% 20% 30% 40% 50% 10 PRODUCTS MANUFACTURED IN THE REGION Unit weight of the region in Manufacturing of particular industrial products the economy of Ukraine, % Beef and veal (frozen) 31.2 Ethanol 29.3 Cotton thread 26.7 White crystal sugar 12.9 Composite structural elements for the construction from cement, concrete 8.8 or artificial stone Cognacs, brandy 4.7 Fabrics 4.6 Machine- or hand-knitted stockings and socks knitwear 4.2 Dairy butter 3.6 Beef and veal (fresh-killed or refrigerated) 3.6 Fat cheese 3.4 Fermented milk products 2.9 Flour 2.7 Processed liquid milk 2.5 Natural juices 2.4 Cereals 2.4 LARGE COMPANIES LOCATED IN THE REGION Name Location Actvity Vatra Corporation OSP LLC Ternopil production of electric lamps and lighting equipment manufacturing of lighting products for outdoor and Schreder LLC Ternopil decorative, sports and industrial lighting Sumitomo Electric Baikivtsi, Ternopil production of lighting equipment for engines and BordNetze Ukraine LLC district transport vehicles Ternofarm LLC (Ternopil Ternopil production of pharmaceuticals and materials Pharmaceutical Factory) ORION Ternopil Radio production of special purpose communication Ternopil Factory JSC facilities Terviknoplast LLC Ternopil production of metal-plastic constructions (Viknar’off) Rempobuttekhnika Factory production of different power PSUs for electrical Ternopil LLC equipment manufacturing of furniture for living rooms, NOVA Furniture Factory PE Ternopil children rooms, entrance halls, kitchens Knauf Hips Skala LLC Borshchiv extraction of limestone, gypsum and chalk Khorostkiv Interfoam-Zakhid LLC production of primary plastics Husyatyn district Nastasiv, Ternopil production of grain, milk and meat; Ahroprodservis Corporation district production and sales of elite grain seeds production of grain, milk and meat; Buchachkhlibprom LLC Buchach production and sales of elite grain seeds; breeding and sales of young pedigree pigs 11 Skoryky, Ukraina LLC production of grain, milk and meat Pidvolochysk district Vasylkivtsi, Husyatyn production of grain, and sales of elite grain and Mriya Agro Holding district potato seeds Poultry Factory Ternopilska Velyki Hai, Ternopil production of eggs PJSC district Buchach Cheese LLC Buchach dairy products manufacturing Ternopil Milk Plant PJSC Ternopil dairy products manufacturing (Molokiya) MAJOR FOREIGN INVESTORS In 2014 foreign investors contributed $501.7 thousand of direct investment (stock capital) into the economy of the region.
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