German companies to build several factories in Ukraine
The number of jobs in German-owned factories in Ukraine will double in the near future. New plants will produce automotive components and will be located in the Western Ukraine. Plans to establish the automotive components plants in Ukraine were announced by the representative of the German Economic development Delegation during their visit to Kiev.
German automakers promise to create nearly ten thousand new jobs in Ukraine. Currently, in western regions of the country over 23,000 Ukrainians work in German factories. Ukrainian products are used for Volkswagen, BMW, Mercedes, Ferrari, Porsche, Audi, Fiat and Nissan. They produce cables, covers, acoustics and other components.
Export of these components is ensured by Karpaty, Tochprylad, Tyco Electronics Ukraine Limited, SEWS Ukraine, Sumitomo Electric Bordnetze and Kromberg & Schubert Ukraine. Recently, a Fujikura plant was established in Lviv region and Kromberg & Schubert, which already has its enterprise in Lutsk, launched a plant in Zhytomir.
Despite the military conflict in the Donbas, the presence of the German economy in Ukraine in the last two years increased by 5.1%. In January 2016, Ukraine’s German exports over the last 32 months period showed growth of about 11.8%.
Ukrainian exports to Germany increased by 7.7%. In general, direct German investments in the Ukrainian economy amounted to 5.4 billion at the end of last year—12.5% of direct foreign investments for Ukraine.
Earlier it was reported that production of two new Skoda models has started in Ukraine.