Projects for reconstruction: foreign business invests in the production of building materials in Ukraine
9 April 14:49
The Irish company Kingspan, a world leader in building solutions and thermal insulation materials, is starting to build an innovation campus near Lviv. This was reported by UkraineInvest, the government office for attracting and supporting investments, which is supporting the project, "Komersant Ukrainian" reports.
The amount of investment that the Irish company plans to invest in the project is 280 million euros. It is expected that 750 new jobs will be created.
UkraineInvest, in cooperation with the Ministry of Economy of Ukraine, provided expert support at all stages, advised the investor and facilitated effective interaction with government agencies. This allowed Kingspan to promptly start the practical implementation of the project.
The State Inspectorate of Architecture and Urban Development of Ukraine has already issued a construction permit.
What will be produced at the new plant
The project envisages the creation of workshops for the production of metal profiles, components, mineral wool panels and girders, as well as recreation areas for employees and other production facilities.
The new production complex will meet the highest energy efficiency and environmental standards.
It is also planned to equip a radiation shelter for 455 people, taking into account accessibility requirements for people with disabilities and other low-mobility groups. It will be equipped with a medical center and adapted bathrooms.
What is known about Kingspan
The company was founded in Ireland in 1965. Today it is a world leader in the production of building materials. The company operates in more than 80 countries and has more than 210 plants. The new plant in Lviv region will become part of this global network.
Kingspan has been present in Ukraine since 2005 and in Lviv region since 2010. In 2023, the company opened an office in Lviv.
Kingspan was one of the first companies to withdraw from Russia when it started a full-scale war in Ukraine, and one of the first to announce investments in Ukraine.
The products of such companies will help rebuild Ukraine
90% of the construction materials needed for reconstruction can be produced in Ukraine. To do so, Ukraine should focus on attracting investment in the construction materials industry. This is the conclusion of analysts at the Kyiv School of Economics. Last year, they presented a comprehensive study of Ukraine’s construction industry.
Experts assessed the impact of the war, the extent of infrastructure damage, and the amount of investment in the industry needed to rebuild. The study was conducted at the initiative of the European Business Association.
In total, KSE estimated that about $65 billion would be needed for construction materials alone to rebuild Ukraine.
More than 90% of the capacities that exist today and can be developed will be able to ensure the restoration of the planned facilities.
As of the middle of last year, foreign and Ukrainian investments in the development of the construction materials industry were estimated at more than $730 million despite the war.
Among the active investment projects being implemented in Ukraine, Kyiv School of Economics experts mentioned:
– The Irish company Kingspan Group, which is launching a project worth more than $280 million.
– Ukrainian investment company EFI Group, which plans to build the first Novasklo plant in Ukraine for the production of float glass and specially coated glass, with an investment of about 232 million euros.
– The French group Saint-Gobain, which at the end of last year already opened a new plant for the production of dry building mixtures in Ivano-Frankivsk region. The investment amounted to EUR 9 million.
Other investors include Kreisel (5 million invested and 10 million planned), MC-Bauchemie (plans to invest 1.5 million), GreenMix, and Miroplast.
As a reminder, according to the World Bank, the cost of rebuilding Ukraine is estimated at over $400 billion, excluding the temporarily occupied territories and Crimea.
