Machinery

Ukraine’s large manufacturing base was historically focused on heavy industry. Machine production continues to be one of the key growth drivers of the Ukrainian economy. Ukrainian light machinery industry includes turbo propellers, gas turbines, pumps and insulated wires and cables for vehicles. The heavy machinery industry includes vehicles, railway and tramway locomotives and parts and components.

The industrial machinery sector in Ukraine is dominated by an extensive network of machine-building companies that produce mining equipment, railway rolling stock, farm equipment, turbo propellers, gas turbines, machine tools, aircraft engines and instrumentation for light industry and the food sector.

Ukraine has both significant reserves of raw materials and a developed metallurgy sector. Given this combination, it is well placed to meet high levels of production demand. Ukraine is well supplied with a highly trained labour force. Around 10,000 students graduate from machine-building faculties at domestic universities and colleges every year.

Ukraine’s well-developed transport infrastructure allows easy access to the large export markets of Europe, Asia and the Middle East. In 2020 Ukraine exported USD 5.4 billion of machinery products which account for 11% of all Ukrainian export of products.

Ukraine has a potential to become a regional leader in the field of complex and science-intensive engineering services such as:

industrial automation and complex engineering;
programming in the field of industrial high-tech;
industrial design (electrical, mechanical, electronic etc.).

Interests of the Ukrainian industrial automation community are represented by the Association of Industrial Automation of Ukraine (APPAU) which includes 54 members: manufacturers of industrial automation products, control system integrators and engineering companies, IT companies and IT integrators, machine-building enterprises and local Universities. In 2016 Association created the national movement «Industry 4.0 in Ukraine», that unites more than 80 members with the aim to promote and educate the local market in 4.0 technologies (IoT, big data, A.I., robotics, additive manufacturing, Vr/AR).

Aircraft and spacecraft

Ukraine is one of the few countries to cover the full spectrum of design, production and operating activities for advanced civil, military and cargo aircraft, as well as supplying space technology. It is also an important supplier of turbine engines for aircraft, helicopters and aerospace industries worldwide.

79 enterprises within the sector
21.7% added value
48,000 employees
USD 689 million: value of products sold
169 launches of rockets built in collaboration with Ukrainian companies

Ukraine has a long and unique history in the field of aerospace technology, going back to the early decades of the ‘space race’ in the 20th century. Ukraine is home to several internationally renowned aerospace design and production facilities which trace their roots back to the early pioneering days of rocket science and aviation technology.

Examples of aircraft and spacecraft manufacturing:

cargo and passenger aircrafts
aircraft parts
gas turbine engines for aircraft and helicopters
industrial gas turbine installations

Stakeholders

The Antonov Design Bureau is best known for designing and building the world’s largest transport plane (the AN-225 Mriya). It also designed a number of mid-range commercial and military transport aircraft.
The Pivdenne (Yuzhnoye) Design Bureau is a designer of satellites and rockets. Efforts of the bureau and partner organizations have resulted in development of nine types of space launch vehicles atop of which more than 1100 spacecraft were orbited as a result of about 500 launches.
Pivdenmash (Yuzhmash) produces spacecraft, launch vehicles (rockets), liquid-propellant rockets, landing gears, castings, forgings and other industrial products.
The Ivchenko-Progress Aero-engine Design Bureau which scope of activities include design, manufacture of prototypes and support of prototype flight tests; design of aero engine derivatives for civil and defense applications; maintenance and repair of aero engines and other.
Motor Sich is one of the leading enterprises in the world manufacturing engines for airplanes and helicopters as well as industrial gas turbine installations.

Agricultural machinery and technology

The agricultural machinery sector provides the means of production for agriculture, the flagship of the Ukrainian economy. The sector has been growing by 22% annually since 2016. Demand in the domestic market is stable, underpinned by global demand for Ukrainian agricultural products and the consequent need for modern agricultural machinery and equipment. Government support has encouraged investment in manufacturing and helped to boost production volumes. Ukraine is competitive in such segments as soil preparation, seeding equipment and grain handling.

22% 4-year average annual growth of the agricultural machinery sector in Ukraine
13% 4-year average annual growth in agricultural machinery exports
180+ agricultural machine building companies in Ukraine (excluding component and other input producers)

Thanks to Ukraine’s favourable geographical location, a ready supply of human capital (qualified agricultural engineers, industrial designers and skilled workers), its own resource base (metal-working, systems and components), cost-competitiveness and a booming domestic market, the sector is well placed to maintain stable long-term growth and a high return on investment in the manufacture of agricultural machinery.

Ukrainian agricultural machinery manufacturers have considerable experience of working with international partners. For example, Lozova Machinery supplies a wide range of up-to-date and cost-effective tillage implements, seeding machinery and tipping trailers to more than 22 countries in Europe, Asia and North America. Factory Kobzarenko LLC exports agricultural trailers and tanks to over 30 countries worldwide. The seed-cleaning and calibrating equipment made by Aeromeh LLC is available in 33 countries. Currently, Ukraine´s main trade partners are Kazakhstan, Belarus, Russia, Moldova, Uzbekistan, Poland and Romania. Exports to the EU and Africa are expected to increase.

Ukrainian agricultural machinery manufacturers regularly exhibit their products at international trade fairs. At AGRITECHNICA, the world’s biggest agricultural trade fair in Germany, Ukraine was represented in 2019 by 31 exhibitors (including manufacturers of both complete agricultural machines and of systems and components such as bearings, hydraulics and spare parts).

There are about 70 agritech start-ups in Ukraine at different stages of development and activity. Hardware and software integrators also operate in the Ukrainian agritech market and supply innovative agrisector solutions from leading international developers. In collaboration with SmartFarming, industry experts and other market participants, UNIT.City Innovation Park has created a map of the Ukrainian agritech sector showing all the main players. Please click here to learn more.

Stakeholders

DLG Ukraine brings together Ukrainian manufacturers of agricultural machinery and other agricultural product and service providers to build an alliance of exporters and to promote their export activities through trade events and training. DLG Ukraine arranges for its members to exhibit their goods at agricultural trade fairs in the EU, Central Asia and Africa.

The Ukragromash Association is part of the Federation of Employers of Ukraine. It represents machine-building manufacturers in negotiations with the Ukrainian Government and successfully lobbied for the introduction of a 25% subsidy for farmers buying domestically produced agricultural machinery and equipment.