This investment is part of a larger commitment totaling €563 million in the Rivne plant, underscoring Kronospan's dedication to expanding its manufacturing capabilities and supporting Ukraine's economic growth.
Expansion of Woodworking Production
The newly established production line will enhance Kronospan’s capacity to manufacture 800,000 square meters of OSB panels annually. Approximately 60% of the produced panels are slated for export to key markets in the European Union (EU) and the United States of America (USA). This strategic allocation aims to strengthen Ukraine's position in the global woodworking industry and boost its export revenues.
Strategic Importance of the Investment
Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, highlighted the significance of Kronospan’s investment:
“This is an important example of the timeliness and feasibility of investing in Ukraine for both European and Ukrainian companies. Kronospan’s investment not only creates jobs but also enhances our industrial capabilities and contributes to the economic stability of the Rivne region.”
Comprehensive Investment in the Rivne Plant
The Rivne plant is a cornerstone of Kronospan’s operations in Ukraine and a leader within the Rivne furniture cluster. Over the past 20 years, Kronospan has invested nearly €1 billion in Ukraine’s production facilities, with the Rivne plant receiving €563 million of this total investment. The continued expansion reflects Kronospan’s confidence in Ukraine’s manufacturing sector and its potential for growth despite ongoing challenges.
Economic Impact and Employment
The Rivne plant has demonstrated robust economic performance, with notable indicators for the current year:
- UAH 2.8 billion in products sold
- UAH 380 million in taxes paid to budgets at all levels
- An average employee salary of UAH 38.2 thousand
- Employment of nearly 800 production specialists
Oleksandr Koval, head of the Rivne Regional State Administration, emphasized the positive impact of Kronospan’s investment:
“Kronospan’s continued investment in Rivne showcases the region’s attractiveness to international businesses. Their commitment not only boosts our local economy but also sets a benchmark for quality and innovation in the woodworking industry.”
Focus on Sustainable and Export-Oriented Production
Kronospan’s investment aligns with Ukraine’s strategic goals to enhance its renewable energy sources and sustainable production practices. By focusing on OSB panels, Kronospan supports the construction and furniture industries with high-quality, eco-friendly materials that meet stringent EU and US standards.
Enhancing Export Competitiveness
The emphasis on export-oriented production is expected to provide Ukrainian enterprises with a competitive edge in international markets. By supplying a significant portion of their products to the EU and USA, Kronospan is helping to integrate Ukraine more deeply into the global supply chain, fostering economic resilience and diversification.
Future Prospects and Continued Support
Looking ahead, Kronospan plans to continue its investment trajectory in Ukraine, further expanding its production capabilities and exploring new markets. The company’s sustained support is anticipated to drive innovation, create additional employment opportunities, and contribute to the overall economic development of Ukraine.
Government Support and Partnership
The Ukrainian government remains committed to facilitating foreign investments and fostering a favorable business environment. Minister Yulia Svyrydenko reiterated the government's support for international partnerships:
“We are dedicated to creating an ecosystem that attracts and sustains significant foreign investments. Partnerships like the one with Kronospan are vital for our economic growth and industrial advancement.”
Conclusion
Kronospan’s investment of €200 million in the Rivne region’s woodworking production marks a significant milestone in Ukraine’s industrial landscape. As part of a larger €563 million investment in the plant, this move not only enhances Ukraine’s export capabilities but also reinforces its position as a key player in the global woodworking market. With nearly €1 billion invested over two decades, Kronospan continues to demonstrate unwavering support for Ukraine’s economic resilience and sustainable development.
