for Investment Promotion
InvestInRivne Agency has been helping investors in Rivne region for 15 years. It is not easy to work because the decisions of investors are critically influenced by political instability, corruption, insecurity of property rights, pocket justice and selective business justice, often changing and unpredictable legislation.But the situation is changing, foreign companies are more trusting and ready to open their production in Ukraine. In our turn we must do everything to justify that trust. Because of their work, job creation depends on economic and social development. Kronospan has taken a serious step and decided to open a powerful European production facility in the industrial zone of the village. The town. At present, it is the largest foreign investment in the development of our region in all years of independent Ukraine. The total amount of FDI attracted to the Rivne economy is $ 133 million. Kronospan's project is a € 200 million FDI, thousands of new jobs and multi-million dollar grants to pay all taxes and fees. The arrival of such a powerful investor was made possible by the cooperation with InvestInRivne Agency started in February 2018, - said Dmytro Yanushevskyi, Director of Rivne Investment Promotion and Investor Assistance Agency. - We will continue to cooperate with Kronospan in the future. I am convinced that Rivne region will receive not only modern European production, but also a truly anchor investor, an example of which will give a positive signal to other foreign companies about comfortable working conditions in Rivne region.
- Kronospan is a world leader in the production of high quality wood-based boards and related products. Today, it is more than 40 manufacturing plants in 30 countries in Europe, Asia and the USA. In 2004, with the support of the European Bank for Reconstruction and Development, Kronospan built its first wood chipboard plant in the Novovolynsk city of Volyn region.The construction of a woodworking plant in the village of Gorodok, Rivne region, is currently underway. The first production is planned to be launched in 2021.For the Rivne region, the Kronospan plant is worth EUR 200 million in foreign investment. That's over $ 300 million in taxes and fees annually. So UAH 350 million was paid to the state and local budgets in 2018 by a similar plant in Novovolynsk. These are funds that go to kindergartens, schools, community development and infrastructure in the region.The average salary of the workers of the Kronospan enterprise in Gorodok will be 15-18 thousand hryvnias a month. Working at Kronospan is a decent level of remuneration, transparent labor relations and compliance with social guarantees under Ukrainian law.- Kronospan will create 2000 jobs in the region. More than 500 are direct employees of the enterprise, the rest are personnel involved in forestry, logistics and maintenance of the enterprise, - said Nataliya Pokinska, General Director of Kronospan UA LLC. - Kronospan is also involved in the development of the territorial communities where our plants are located. In 2018, Kronospan supported charitable projects worth over UAH 700,000.
Woodworking plant in the Rivne region will become one of the most modern Kronospan productions. The plant will be located in the territory of the long-abandoned and inactive Rivne Foundry Plant (RLZ) and Rivne Tractor Aggregates Plant (RTA). The construction is being carried out by the well-known international company Kronospan, which is the owner of Technopride Invest Group.- We carry out our activities lawfully, publicly and transparently. And today's press conference is an additional confirmation of that, - said the director of Technopryvid Invest Group LLC Pavlo Pyltyai. - Our equipment and products are certified with the highest quality. Construction work is carried out in accordance with international standards. We care about the high quality of our products and the safety of the environment. That is why our production will meet not only Ukrainian environmental standards, but also European ones. Currently, dismantling works are underway at the technological site in Gorodok. I can assure you that all the necessary permits and approvals are in place. We will also carry out all further activities with the permission and approval of the local community. We are always open for communication. According to the technical director of Kronospan UA Bartlomey Kozyol LLC, Kronospan is constantly improving technological equipment, which guarantees compliance with the European requirements for environmental safety. The factory in Novovolynsk has 11 different filters installed and 21 treatment plants are operating. Two new state-of-the-art WESP filters are being installed here today. Emission purification efficiency is almost 95%. This is one of the best indicators not only in Ukraine but throughout Europe. The EBRD provided 10 million euros for the purchase, delivery and installation of WESP filters. The same innovative equipment will be installed at the plant in Gorodok.
- It is important for the development of the region that the economy develops. Without foreign investment - it is impossible to make a dash. That is why we are doing our best to ensure that business has more opportunities for development, - said Konstantin Moklyak, Director of the Department of Economic Development and Trade of Rivne Regional State Administration. - The arrival of a company such as Kronospan in our area is an important event. And we, for our part, will help and support foreign investors to the fullest.In general, we are working on the creation of industrial parks in the region. For the authorities of all levels, local communities have created such sites with free land, communications, access to transport arteries. It is up to the local communities themselves to be interested in this.However, there are difficulties in this work. In our realities, investors are forced to think not only about the development of production, but also about protecting their business. Protection against raiders, dishonest competitors, bureaucrats and judges. They all embody an old system that is not interested in developing and bringing our country closer to Europe.- Unfortunately, such bad trends are also observed in the Rivne region. When politicians with a dubious business past try to harm an investor with an excellent European reputation in every possible way. These people spread false rumors, order false articles in the media, incite pseudo-activists to fight "everyone against all." They are sure of their impunity - they are only trying to snatch their share in the cutting of the country's economic potential, - Dmitry Yanushevsky emphasized. - But no longer can this continue. The country is changing. Ukrainians are changing. They want to work and get high wages at home, not to seek happiness abroad. People want the country's economy to thrive. And the arrival of foreign investment is a crucial stage of this revival. Today, leaders at all levels of government understand this. And for decent investors working within the law, there will be green light and a minimum of obstacles.