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Transcript of Automotive industry pdf
The potential of automotive industry
in Poltava region
Kremenchuk, 2012
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
Geographical location of Poltava region
Source: Poltava Regional Center for Investment and Development
Ukrainian car market
Ukrainian car market
Concentration of the cars for thousand of people is much lower than
in European countries, or even then in Russia
Source: 2012, PJSC «Deloitte & Touche USC»
178
228
295
301
441
453
0 100 200 300 400 500
Ukraine
Russia
Slovakia
Hungary
CzechRepublic
Poland
Quantity of cars per thousand of people, 2011:
Ukrainian car market
34
6
15
19
26
Structure of demand by the country of production,%:
up to 12thousands ofdollars
12 -15 thousandsof dollars
15 -20 thousandsof dollars
20 -25 thousandsof dollars
from 25thousands ofdollars
Source: 2012, PJSC «Deloitte & Touche USC»
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
VA
Z L
ada
Hyun
da
i
ZA
Z
To
yo
ta
Re
na
ult
Ch
evro
let
Sko
da
Vo
lksw
ag
en
Fo
rd
Nis
san
Cars - bestsellers in 2011:
Ukrainian car market
27,82
24,28 17,33
12,79
10,47
5,61 1,70
Structure of demand in the country of production,%:
EU
South Korea
Japan
Russia
Ukraine
China
Other
59 360
20 240
11 656 6 329
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
Volumes of auto in Ukraine,pc.:
Source: 2012, PJSC «Deloitte & Touche USC»
Major car manufacturers in Ukraine
Source: Poltava Regional Center for Investment and Development
SWOT analysis of production cars in Ukraine
Strengths Weaknesses
• Skilled and relatively cheap labor force
• Capacious consumer market
• Geographical and cultural proximity to
the
• European consumers
• Modernization of the infrastructure
related to the holding of Euro 2012
• Developed production capacities
• Pressure on the business of the
various authorities
• Over-regulation and poor predictability
of the economic environment
• The dependence of the economy on
external factors (input prices, demand
in the EU)
• Tax pressure and the complexity of the
tax system
Opportunities Threats
• Trade liberalization with the EU (export
growth in this direction)
• Base of export to Russia
• Rising consumer incomes (more than
70% of households still do not have a
car)
• Full recovery of auto crediting
• State support for automotive industry
(soft loans, tariff protection)
• Restrictions on exports to Russia
(recycling fee, customs regulation)
• Sending of cars from the EU at lower
import duty (including used cars)
• Macroeconomic risks (slowdown in
GDP growth, investment outflows,
reducing of foreign financing)
Source: 2012, PJSC «Deloitte & Touche USC»
Poltava region
Investment map of Poltava region
Map symbols
Source: Poltava Regional Center for Investment and Development
Automotive industry in Poltava region
• Poltava region has a long history of truck production
(since 1958)
• Two universities and six colleges that train personnel
for the automotive industry. Up to 1000 specialists
graduate 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 own
expense retrains specialists for the needs of investors and reimburses some funds
to enterprises that will hire unemployed people
Source: Poltava Regional Center for Investment and Development
The city of Kremenchuk
Kremenchug is a place of car production
Source: Poltava Regional Center for Investment and Development
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 Poltava
Alexandria-Odessa) and railways
• Advanced river transport. River port is available. Requirements for the
ships: draught 3.2 m, length 125 m, type of vessel: river-sea, tonnage: to
3.5 thousand tons
• Distance to Kyiv - 286 km, to Boryspil - 254 km, to Poltava – 119 km, to
Kharkov – 250 km, to Dnepropetrovsk - 162 miles, to Donetsk – 403 km,
to Zaporozhzhya – 225 km, to St. Petersburg – 1 585 km
Source: Poltava Regional Center for Investment and Development
Land plot for automobile plant and related
enterprises
• Land plot is located in Kremenchuk. Territory area adjacent to the Northern industrial hub. The plot is proposed for placement of industrial facilities
• Land area :168.55 ha
• Owner : land city council
Source: Poltava Regional Center for Investment and Development
Land plot
Advantages of investing in the automotive industry
• Exemption from import duties on machinery, equipment and components
(art.287 Customs Code of Ukraine)
• Tax incentives for the project implemented in the automotive industry
• Profits 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 commissioning
• Automatic VAT reimbursement for business (art.200.19 Tax Code of Ukraine)
• Local Municipality guarantees the accelerated procedure of acquiring rights to lease
• Years of experience in the automotive industry
• Experience in automotive exports
•
Benefits of participation in an industrial park Kremenchug
• Greenfield 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
Contacts
4, Shkolnyi Lane, of. 41, 45. Poltava, Ukraine. 36003
Leta Dmytro - Acting Director of Poltava Regional Center of
Investment and Development
Tel.: +38-0532-50-08-64
mob. tel.: +38-066-816-52-09
e-mail: [email protected]
skype: leta.dima
www.obladmin.poltava.ua/invest
Roshchina Olga - Marketing Manager
Tel.: +38-0532-56-92-94
mob. tel.: +38-099-918-60-94
e-mail: [email protected]
Source: Poltava Regional Center for Investment and Development