Record growth in new industrial parks

In 2024, a record number of industrial parks were established. According to the Industrial Parks of Ukraine group, at least 55 new parks were initiated, with 31 officially listed in the state registry. This brings the total number of industrial parks to 99 by the end of 2024, with the milestone 100th park registered in January 2025.

Key regions leading this growth include:

• Lviv Region: 19 operational parks
• Kyiv Region: 13 operational parks
• Zakarpattia Region: 10 operational parks

Emerging hubs such as Ivano-Frankivsk (7 parks) and Khmelnytsky (6 parks) also show strong potential. However, there are regions like Kharkiv, Kherson, Kirovohrad, and Zaporizhzhia that still have no projects in the pipeline.

Enhanced investor engagement

A notable improvement in 2024 was the quality of newly registered industrial parks. Nearly 70% were launched with pre-secured investors, management companies, or prospective participants. This marks a significant shift from earlier trends where many parks lacked clear development prospects.

• Greenfield vs. brownfield initiatives: Approximately 60% of new parks were developed on greenfield sites, while 40% utilized brownfield locations.
• Initiators: Municipal entities initiated 13 parks, while private investors spearheaded 18 projects.

Industrial output and infrastructure expansion

The primary purpose of industrial parks—to foster new enterprises—has begun to materialize tangibly:

• Factories: By the end of 2024, construction or operation had commenced for 25 factories across sectors such as food production, agro-processing, building materials, woodworking, and mechanical engineering.
• Infrastructure: Over 100,000 square meters of industrial real estate and nearly 200 MW of electricity capacity were commissioned for relocated and new enterprises.

Foreign investment highlights

Despite ongoing challenges from the war, Ukraine's attractiveness to foreign investors has grown:

In Bila Tserkva:

• British company Unilever began constructing a hygiene products facility.
• Finnish firm Peikko started building a plant for construction materials.
• German company InTiCa Systems expanded its electric vehicle components factory.

In Rivne Region:

• Austrian company Kronospan launched a €200 million OSB production line.

Domestic investment and policy support

Domestic entrepreneurs remain key contributors to industrial growth. Many leverage tax and customs incentives—such as zero import VAT and duty exemptions on equipment—to reduce costs by up to 30%. These benefits saw practical application for the first time in 2024.

Government support has been instrumental:

• The Ministry of Economy allocated UAH 925.05 million to fund infrastructure projects in industrial parks.
• By year-end, funding had been distributed to 13 out of 15 applicants, with additional disbursements planned for early 2025.

Outlook for 2025

With robust government backing and increasing private sector engagement, the stage is set for even greater achievements in Ukraine's industrial park ecosystem in 2025. The focus will likely shift toward enhancing infrastructure readiness and attracting more foreign direct investment to sustain this upward trajectory.