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AGRICULTURAL SECTOR Priority Investment Directions

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AGRICULTURAL SECTOR Priority Investment Directions PRIORITY INVESTMENT DIRECTIONS Valentyna Zatyshniak Director of DIA Oleksandr Kolomiytsev Director of IIC INFRASTRUCTURE Dnipropetrovsk region is the industrial and business center of Ukraine, which combines all kinds of transport: Air transport - 2 international airports PERESHCHEPYNE (Dnipro, Kryvyi Rih). Cargo air terminal ATK «Yuzhmashavia» of SE «PA Yuzhny Machine-Building Plant named after O. Makarov» with the possibility of PIATYKHATKY PAVLOHRAD organizing air transportation by own cargo DNIPROPETROVSK aircrafts or accepting and servicing cargo REGION MEZHOVA aircrafts. River-sea transport - 4 river ports with the SYNELNYKOVE possibility of cargo transportation for the ships of the river-sea type. 1 container Line "Dnipro-Constanta". KRIVIY RIH Rail transport: an extensive rail network connects all the industrial centers of the NIKOPOL region and has access to intermodal cargo transshipment transports and the main seaports of the country. Automobile transport: the territory is crossed by two European routes E-50 (Paris - Prague - Uzhhorod - Vinnytsia - Dnipro) and E-105 (Norway - Kharkiv - Novomoskovsk - Simferopol). There are 6 motor transport ports with customs services on the territory of the region. FDI IN THE ECONOMY OF DNIPROPETROVSK REGION Dnipropetrovsk region is the main labor market in the south- Dnipropetrovsk region is one of the leading academic east part of Ukraine. centers of Ukraine. • There are 1508 thousd. people of economically active In the region there are: population. • 53 higher educational institutions of all accreditation • The level of registered unemployment is 8,5% (30,7 thousd. levels, in which 119 thousd. students are studying; people). • 58 vocational students (23,7 thousd. students). • The total number of employees is 791 thousd. people (large Dnipropetrovsk region trains specialists in such spheres as: numbers are involved into industry, education, trade, health care spheres). • mining and metals sector; • During 2017, 37,5 thousand people were employed and it is • rocket production; the first place among the regions of Ukraine. • IT; • Average salary - UAH 8247 • medicine; • sphere of agrarian and industrial complex – UAH 5800; • chemical industry; • industry - UAH 8400; • construction and etc. • construction - UAH 6700; Educational institutions are open for cooperation with • service sector - UAH 9400. employers due to training of skilled workers. FDI IN THE ECONOMY OF DNIPROPETROVSK REGION UKRAINE DNIPROPETROVSK REGION USD bln USD bln 10,6 10,2 9,9 53,7 8,9 51,7 8,6 23,3% 48,2 21,2% 45,4 19,1% 40,7 22,1%* 16,6% 39,0 39,1 5,8 36,2 * % of the volume of Ukraine 9,8% 3,5 3,8 9,7% 9,7% 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 The largest investor countries II place according to the volume of FDI attracted USD bln USD bln 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 4,7 3,5 3,1 3,3 1,9 0,5 0,8 Netherlands Netherlands 11,4 9,3 8,7 9,0 7,0 6,2 6,3 41% 38% 36% 37% 27% 6% 13% 3,2 3,2 3,2 1,4 0,9 0,6 0,6 Germany Germany 5,0 5,3 4,5 2,9 2,1 1,6 1,8 64% 60% 71% 48% 43% 37% 33% 1,7 2,5 2,4 2,6 1,6 1,1 1,2 Cyprus Cyprus 9,6 12,7 15,9 17,7 12,8 10,2 10,0 18% 20% 13% 15% 13% 11% 12% Other 19,4 21 22,6 24,1 18,8 18,2 21 Other 1 1 1,1 1,6 1,4 1,3 1,3 ECONOMY AND INVESTMENTS STRUCTURE Foreign direct investments by the types of The volume of region sold industrial output by economic activity the types of economic activity Construction Services Construction Services $ 208,4 mln $ 1524 mln $ 0,5 bln $ 12,3 bln 5,5 % (3,1% of Ukraine) 39,9% (5,7% of 1,7% (7,2% of 42,2% (10,9% of Ukraine) Ukraine) Ukraine) $ 3,8 $ 28,2 bln bln 10,8 % 9,8 % out of the volume out of the volume of of Ukraine Ukraine Industry Agriculture $ 13,6 bln $ 1,85 bln Agriculture Industry 49,1% (15,3% of Ukraine) 7% (11,7% of Ukraine) $ 75,1 mln $ 2008 mln 2% (4,5% України) 52,6% (20,9% of Ukraine) INDUSTRY The region's share in the total volume of industrial output in Ukraine is 15,3% Industrial branch structure Dynamics of industrial branch development Other USD bln $ 2,8 bln 188,1 20,5% 184,3 116 94,3 82,6 Engineering $ 0,6 bln 18,9 4,4% (%) (13,7%) 12,9 13,6 (13,7%) (15,3%) 28,6 31,6 $ 13,6 bln (16,8%) (16,3%) 49,1 % out of the regional volume 2013 2014 2015 2016 2017 Coal extraction $ 0,8 bln 5,9% The largest enterprises of the industry Electricity, gas Electricity supply Metallurgy Development of rocket and conditioned Metallurgical and space technology air supply production $ 1,7 bln Iron ores extraction $ 5 bln 12,5% $ 2,7 bln 36,8% 19,9% Production of cast iron, Rocket and space Mining and metals sector steel and rolled technology production products INDUSTRY In 2017, most of the region's industrial output was exported (53%) Export structure of industrial products Import structure of industrial products Machinery and equipment Transport $ 0,1 bln Other $ 0,2 bln 1,8% (2,2%) $ 1,5 bln Mineral fuels 2,9% (26,6%) 32,1% Other $ 1,3 bln 30,3% (12% ) $ 0,2 bln 4,0 % Chemical products Electric machines $ 0,2 bln 3% (13,3%) $ 0,2 bln $ 6,5 bln 4.3% (4,8%) $ 4,3 bln 87,8 % out of the 92,6 % out of the Metallurgical regional volume Pharmaceutical regional volume production products $ 3,9 bln $ 0,3 bln 59,5% (38,8% ) 6,6% (7,2% ) Mineral products $ 1,9 bln Products of mechanical 28,8% (47,7%) engineering Paper Polymeric materials $ 0,5 bln 10% (8%) $ 0,1 bln $ 0,4 bln 2,3% (13%) 8% (11,4%) Dynamics of investment in the industrial sector USD mln 7860,2 7453,1 5870,8 3388,3 1878,2 1562,7 2008 2011 2012 2013 2014 2015 2016 2017 INDUSTRY Priority investment directions Abrasive materials 54% Truck tires, automobile and agricultural machinery 100% Conveyor belts and rubber technical goods 100% Cardboard, corrugated cardboard 52% Internal combustion engines 100% Machine tools and robotic systems 98% Heat pumps 100% Household appliances 84% Pumps and compressors 88% Refrigerators, freezers 99% IMPORT PRODUCED The largest enterprises of the services Metallurgy Detergent manufacture Gas company Production of steel and alloys Tailoring SERVICES The volume of services sold in 2017 is USD 12,3 bln The region's share in the total volume of Ukraine services sold is 10,9% Services structure Dynamics of sold services USD mln Scientific and technical activities 102,5 $ 0,3 mln 108,8 112,2 Real estate operations 2,4% Other $ 0,4 bln $ 0,6 mln 83,2 83,6 3,2% 4,9% 7,7 9,6 7,6 (9,2%) (9,4%) Transportation (9,1%) 11,1 12,3 $ 0,8 bln (10,2%) (10,9%) 6,5% $ 12,3 bln 2013 2014 2015 2016 2017 42,2% out of the regional volume The largest enterprises of the industry Telecommunications Cargo air transportation ІТ services Wholesale and retail trade Pridniprovska Railways $ 10,2 bln 83% Logistic Logistic SERVICES In 2017, 1.5% of all implemented services of the region were exported Export structure of agricultural products Import structure of agricultural products Other Other $ 11,5 mln Transport services $23 mln 8,8% $41,4 mln 9% ІТ Financial activity 31,8% (0,7% of Ukraine) $11 mln $ 8,8 mln 4,3% (2,6%) Business service 6,8% (11,9%) $78,8 mln Financial 30,9% (9,8% of Ukraine) activity Services for the processing of material $31,6 mln resources $ 130,1 mln 12,4% (7,5%) $ 255,6 mln $ 12,7 mln 1,2 % out of the 5,2 % out of the 9,7% (0,9%) volume of Ukraine volume of Ukraine Royalties, intellectual Business services Transport service IT property $ 17,1 mln $ 38,5 mln $38,4 mln $72,7 mln 13,1% (1,9%) 29,6% (2,3%) 15,0% (3,2%) 28,4% (18,4%) Dynamics of investment in the services sector USD mln 1960,8 2535,4 1934 1756,5 1565,1 1523,9 2012 2013 2014 2015 2016 2017 SERVICES Priority investment directions • Creation of complex centers for cargo transshipment and storage (river, car, railway, aviation); • Creation of aviation-cargo HUB; • Carriage of the river-sea class; • Creation of port infrastructure; • Creation of automotive service infrastructure; • Business Aviation Development; • IT services; • Leasing of machinery and equipment. The largest enterprises of the services International cargo transportation Banking services Trade ІТ services ІТ services AGRICULTURAL SECTOR The volume of agricultural products sold in 2017 – USD 1,85 billion The region's share in the total volume of agricultural products in Ukraine – 11,7% Structure of sold agricultural products Dynamics of sold agricultural products USD mln Other 22,2 26 $ 91,3 mln 16,5 5% 20,2 Bird breeding Oil seeds 15,6 $ 169,9 mln $ 671,6 mln 9,2% 36,4% 1,8 1,85 1,6 (11,7%) 1,4 (10,9%) Food products (7,1%) 1,3 (6,9%) (6,1%) $ 178,8 mln 9,7% USD 1,85 bln 2013 2014 2015 2016 2017 7 % out of the regional The largest enterprises of the agricultural volume Production of Agricultural Agricultural Сombined feed phosphorus- machinery machinery production Meat and meat containing mineral production production products fertilizers $ 237,2 mln Oils and animal fats 12,8% $ 497,5 mln Feed 26,9% Meat of poultry, eggs Corn breeding concentrates AGRICULTURAL SECTOR In 2017, nearly half of all agricultural products of the region was exported (46%) Export structure of agricultural products Import structure of agricultural products Other Other Fats and oils $ 51 mln $52,8 mln $50,5 mln Meat and by-products 12 % 31,1% (18,9% of Fats and oils 29,6% $ 11,7 mln Ukraine) $283,2 mln 2,8% (2,2%) 66,7% (6,1% of Ukraine) $ 178,2 Milk, eggs mln $ 14,8 mln $ 424,9 7,5 % out of the 3,5% (3%) mln regional 2,8 % out of the Cereal crops Meat and products volume regional $ 64,1 mln $12,9 mln Fish and crustaceans 15,1% (1%) volume 7,2% (11,4%) $23,1 mln 13% (5,1%of Ukraine) Seeds and fruits of oil-plants Edible fruits and nuts $17,1 mln.
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