Activities of foreign investor companies in Dnipropetrovsk region

Investment Business Budget Credit Costs Concept

As of 01.01.2020, foreign direct investments (FDI) in Dnipropetrovsk region were made by 1061 companies from 60 countries, worth $3.8 bln (cumulative total). 80% of FDI was invested by 39 companies, which mainly represent mining and metallurgical complex, trade and construction.

In 2019, 19 companies, including those in the service, construction and agricultural sectors, received the status of an enterprise with foreign investment through the entry of foreign capital. At the same time, mainly in the industrial sector, Ukrainian residents acquired 18 companies with foreign investments, which allowed them to obtain the status of Ukrainian enterprises.

In the sectors of construction, services and agro-industrial complex six foreign companies have ceased their activities (LLC “IUTAUER”, LLC “NIKOPOLSKI TRUBY-TRANS”, LLC “AC VESNA”,  LLC “Agronik-2017”, LLC “TH” Elektroshchyt-SAMARA”, LLC “S.І. HRUP TRANS”). Another 17 companies have started the process of termination of their activities..

The tendency of re-registration of enterprises, whose production facilities are located in the region, in Kyiv continues: LLC with FDI “Procter & Gamble Ukraine” re-registered in 2013, LLC “Emsolt solar energy” and LLC “Glas Trösch Dnipropetrovsk” re-registered in 2018. According to foreign investors, the reasons for re-registration are optimization of administrative management. This leads to a decrease in local tax revenues.

The industrial sector, with foreign direct investment of $2088 mln, represented by 113 companies.  Mining and metallurgical enterprises – 33 and 34 respectively, are the leaders in investments in this sector, which formed 50% of all foreign investments in Dnipropetrovsk region.  On the territory of the region there are production facilities: PJSC “ArcelorMittal Kryviy Rih”,  PJSC “CENTRAL IRON ORE ENRICHMENT WORKS”, PJSC “NORTHERN GOK”, MP DNEPROSTEEL LLC etc. The largest investor countries are Cyprus, Turkey, Germany, the Netherlands and the United Kingdom.

FDI in the services sector amounted to $1340 mln. This sector has the largest concentration of enterprises with foreign investment – 795. In particular, in trade 342 companies invested $556.6 mln. These are both large networks such as ATB, EVA, Varus and Comfy, and small retailers. Foreign investments in real estate operations in the region were made by 166 companies worth about $460 mln. Most investments came from Cyprus, Germany, Israel, Belize and the Virgin Islands.

In the construction sector 78 companies have invested about $290 mln. Among the largest enterprises it should be noted:  LLC “Construction Company” Olvia”, PJSC “KRYVYI RIH CEMENT”, LLC “SWEETONDALE”, LLC “Glas Trösch Dnipropetrovsk”, LLC “Caparol Dnipro”. Most investments came from Cyprus, Israel, the Czech Republic and Austria.

 In the agro-industrial sector foreign investments to the amount of $79.1 mln were made by 75 companies, including reputable and recognized global brands such as:  LLC “MAS Seeds Ukraine”, LLC “NADEZHDA” (“Lesaffre group”), LLC “АGRO КМR”, FDI enterprise “Bimbo QSR Ukraine”. The largest investor countries are Cyprus, Turkey, the Netherlands and France.

The opening of companies with foreign investments during 2019 took place exactly in the priority directions of Dnipropetrovsk region development, in particular, creation of logistic centers, processing and canning of fruits and vegetables, and production of construction materials and works.