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21:07 PM Thursday, May 25, 2017
Real Estate
E. Europe's Biggest Developer Crosses Border to Build Its First Industrial Park in Ukraine
Growing foreign investment raises comfort level in Western Ukraine
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LVIV – In another vote of confidence in Western Ukraine, CTPark Network, the largest developer of business parks in Central Europe, is venturing across the border to build here a 23-hectare factory and warehouse park.

This will be the first Ukraine project for CTP, which has 60 industrial parks across Central Europe. The park will be located near an M-10 highway interchange, a one hour, 60 km drive to the Polish border. At build out, the park should house 15-30 companies and create 3,000 jobs.

“Lviv is strategically located in the west of Ukraine, just a few kilometers from the Polish and Slovak borders,” said Remon Vos, CTP’s CEO. “The city has an educated, affordable and available workforce, recently bolstered by an influx of workers from Eastern Ukraine.”

Total investment in the park is to be $80 million.

City Support

Vos, from Holland, added: “For CTP, the support of the local government has been excellent and it shows that the city is open for business.”

Lviv is to spend $300,000 on infrastructure for the project.

“We expect to launch the project this spring,” said Olha Syvak, Chief Investment Officer of the Lviv City Council.

CTP’s pitch to investors cites Ukraine’s low wages, its one year old free trade pact with the EU, and the location of Lviv – 1,300 km west of the separatist conflict zone in the nation’s southeast.

“The city’s mix of a skilled and available workforce, at an affordable cost, and strong tradition of industry, makes it an attractive location for major multinationals,” Vos said.

Critical Mass of Foreign Investors

Lviv already has attracted large foreign investors. Vos cited German hypermarket giant Metro, German retail and tourism group REWE, Austria-based transport specialist Cargo Partner, and French hypermarket Auchan.

Potential clients of the new park are to come from various sectors -- high-tech production, logistics, automotive and engineering.

One company is Fujikura, a Japanese car parts manufacturer, due to set up a third plant to add to two facilities it set up in Ryasne-2 last year.

Syvak, responsible for Lviv’s investments, said other clients in contact with the developer include Bosch, Siemens and LEGO.

More Industrial Parks Planned

Last week, new industrial parks were registered in two other areas -- Novodnistrovsk in Western Ukraine’s Chernivtsi region, and in Fastiv, north of Kyiv.

Each park measures roughly 15 hectares and are designed to house factories producing electrical equipment, clothes, food, construction materials, mechanical engineering, woodworking, pharmaceuticals, electronics and IT.

In Western Ukraine, industrial parks are planned for two other sites: Dolyna in Ivano-Frankivsk region and Slavuta in Khmelnytska region.


For comments and news tips, please email UBJ Western Ukraine

Correspondent Oleksandra Kharchenko at sasha.kharchenko@theubj.com

Photo: Remon Vos, CTP’s CEO, hopes to attract up to 30 potential investors and $80 million (Credit: Anna Vavrikova, Mafra)

Photo: One of CTP’s industrial parks in Eastern Europe. (Credit: CTP)

Photo: Maquette of CTP project for a warehouse and factory park on the M10 highway, west of Lviv (Credit: CTP)

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