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Industrial machines
Ukraine has a large manufacturing base that has historically focused on heavy industry. Machine manufacturing remains one of the main growth engines of the Ukrainian economy.
The industrial machinery sector in Ukraine is dominated by a wide network of machine-building enterprises involved in the production of mining equipment, railroad cars, agricultural equipment, turbine fans, gas turbines, machine tools, aircraft engines, appliances for light and food industries.
Machine building in Ukraine has the following advantages:
- Ukraine has large reserves of raw materials that, together with an advanced mineral industry, can meet large production needs. Most of the machinery manufacturers are located in the east of Ukraine, which is located a short distance from the supply base of raw materials, especially steel.
- Ukraine is well supplied with an educated workforce as local universities and colleges graduate about 10,000 students from machinery building colleges annually.
- The developed transportation infrastructure provides easy access to the large export markets in Europe, Asia and the Middle East.
Historically, the manufacture of industrial machinery in Ukraine had strong ties with the CIS countries that served as suppliers of components for Ukrainian companies and the main markets for Ukraine products.
In recent years, Ukraine's industrial machinery has had to be redirected to other markets for political reasons. In 2020, Ukraine's exports of industrial machinery amounted to $ 4.4 billion. Nevertheless, Ukraine's production and export potential remains fairly large with much room for growth in the future.
Meanwhile, 2020 imports amounted to $ 13.3 billion (22% of Ukraine's total imports) indicating strong domestic demand for high-quality industrial machinery.
Great opportunities are also associated with the potential privatization of large state-owned enterprises involved in the production of heavy machinery.
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