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The potential of automotive industry in Poltava Region

Text of Automotive industry pdf

  • 1. The potential of automotive industry in Poltava regionKremenchuk, 2012

2. Outline Ukrainian car market Major car manufacturers in Ukraine SWOT analysis of production cars in Ukraine Poltava region Investment map of Poltava region Automotive industry in Poltava region The city of Kremenchuk Brief information about the city of Kremenchuk Kremenchuk is a place of car production Land plot for automobile plant and related enterprises Advantages of investing in the automotive industry 3. Geographical location of Poltava region Source: Poltava Regional Center for Investment and Development 4. Ukrainian car market 5. Ukrainian car marketConcentration of the cars for thousand of people is much lower thanin European countries, or even then in RussiaQuantity of cars per thousand of people, 2011:Poland453 Czech 441Republic Hungary 301 Slovakia 295 Russia228 Ukraine 1780100 200 300 400500Source: 2012, PJSC Deloitte & Touche USC 6. Ukrainian car market Structure of demand by Cars - bestsellers in 2011: the country of production,%:35 000up to 1230 000thousands ofdollars25 00012 -15 thousands20 00026of dollars3415 00015 -20 thousands10 000of dollars 5 00019 620 -25 thousands0 of dollars 15 Renault NissanZAZToyotaFordHyundai Volkswagen VAZ Lada Chevrolet Skodafrom 25thousands ofdollarsSource: 2012, PJSC Deloitte & Touche USC 7. Ukrainian car marketStructure of demand inthe country of Volumes of auto in production,%:Ukraine,pc.:5,611,7070 000 59 360EU60 000 10,47 South Korea50 000 27,8240 000 Japan12,7930 000 Russia20 24020 000 11 656 17,33 24,28Ukraine10 0006 329 China0 Other Source: 2012, PJSC Deloitte & Touche USC 8. Major car manufacturers in UkraineSource: Poltava Regional Center for Investment and Development 9. SWOT analysis of production cars in Ukraine StrengthsWeaknesses Skilled and relatively cheap labor force Pressure on the business of the Capacious consumer marketvarious authorities Geographical and cultural proximity to Over-regulation and poor predictabilitytheof the economic environment European consumers The dependence of the economy on Modernization of the infrastructureexternal factors (input prices, demandrelated to the holding of Euro 2012in the EU) Developed production capacities Tax pressure and the complexity of the tax systemOpportunitiesThreats Trade liberalization with the EU (exportgrowth in this direction) Restrictions on exports to Russia Base of export to Russia (recycling fee, customs regulation) Rising consumer incomes (more than Sending of cars from the EU at lower70% of households still do not have aimport duty (including used cars)car) Macroeconomic risks (slowdown in Full recovery of auto creditingGDP growth, investment outflows, State support for automotive industryreducing of foreign financing)(soft loans, tariff protection) Source: 2012, PJSC Deloitte & Touche USC 10. Poltava region 11. Investment map of Poltava region Map symbols Source: Poltava Regional Center for Investment and Development 12. Automotive industry in Poltava region Poltava region has a long history of truck production(since 1958) Two universities and six colleges that train personnelfor the automotive industry. Up to 1000 specialistsgraduate every year Automotive industry employs near 7 000 people In the manufacturing process employs about 100 related enterprises (the largest -HC "AvtoKrAZ" 4 500 workers, LLC "KrASZ" - 358 employees and PJSC "Vepr" -42 employees, PJSC "Kremenchug Wheel Plant", JSC "Obod", LLC "Autosteklo",SPE LLC "Prisadki", LLC "Yuniol", LLC "Krempolimer" and others) The level of salary paid to blue-collar workers range from 240 to 300 EURO In case of hiring workers from the employment centers, the institution at its ownexpense retrains specialists for the needs of investors and reimburses some fundsto enterprises that will hire unemployed peopleSource: Poltava Regional Center for Investment and Development 13. The city of Kremenchuk 14. Kremenchug is a place of car productionSource: Poltava Regional Center for Investment and Development 15. Brief information about the city of Kremenchuk Krementchuk is an industrial city The city area: 10 000 ha The population of the city - about 230 thousand people Located at the crossing of highways (Boryspil - Kiev and PoltavaAlexandria-Odessa) and railways Advanced river transport. River port is available. Requirements for theships: draught 3.2 m, length 125 m, type of vessel: river-sea, tonnage: to3.5 thousand tons Distance to Kyiv - 286 km, to Boryspil - 254 km, to Poltava 119 km, toKharkov 250 km, to Dnepropetrovsk - 162 miles, to Donetsk 403 km,to Zaporozhzhya 225 km, to St. Petersburg 1 585 kmSource: Poltava Regional Center for Investment and Development 16. Land plot for automobile plant and relatedenterprisesLand plot Land plot is located inKremenchuk. Territory areaadjacent to the Northernindustrial hub. The plot isproposed for placement ofindustrial facilities Land area :168.55 ha Owner : land city councilSource: Poltava Regional Center for Investment and Development 17. Advantages of investing in the automotive industryExemption from import duties on machinery, equipment and components (art.287 Customs Code of Ukraine)Tax incentives for the project implemented in the automotive industryProfits taxed at: from 01.01.2013 to 31.12.2017 0 %; from 01.01.2018 to 31.12.2017 8 %; from 1.1.2023 16 %; (art. 20 Tax Code of Ukraine)Available cheap labor force (salary in the automotive industry in the region - 240-300 EUR)Local Municipality guarantees the right of land purchasing after the commissioningAutomatic VAT reimbursement for business (art.200.19 Tax Code of Ukraine)Local Municipality guarantees the accelerated procedure of acquiring rights to leaseYears of experience in the automotive industryExperience in automotive exportsBenefits of participation in an industrial park KremenchugGreenfield for the industrial park, which is the property of the local community (up to 6 months)Exemption from equity participation in Kremenchug infrastructure development (art. 36 Law "About industrial parks"Source: Poltava Regional Center for Investment and Development 18. Contacts4, Shkolnyi Lane, of. 41, 45. Poltava, Ukraine. 36003Leta Dmytro - Acting Director of Poltava Regional Center of Roshchina Olga - Marketing ManagerInvestment and DevelopmentTel.: +38-0532-56-92-94Tel.: +38-0532-50-08-64 mob. tel.: +38-099-918-60-94mob. tel.: +38-066-816-52-09e-mail: poltavanationalprogects@gmail.come-mail: leta.dima@gmail.comskype: leta.dimawww.obladmin.poltava.ua/investSource: Poltava Regional Center for Investment and Development