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Bosch is considering building a factory in Ukraine. Cabinet Of Ministers tempts with benefits and preferences

Bosch wants to build a factory in Ukraine. Photo: Flickr

Bosch wants to build a factory in Ukraine. Photo: Flickr

The world's leading supplier of technologies and services in the field of automotive and industrial technologies "Robert Bosch LTD" is exploring the possibility of opening the electric power tools production capacity in Ukraine. The Ukrainian side, for its part, promises favorable and competitive business conditions, as well as benefits and preferences, according to the press service of the Cabinet of Ministers.

During a meeting with representatives of the German company, Oleksiy Lyubchenko, First Deputy Prime Minister—Minister of Economy, assured potential partners of the government's readiness to provide a ready-made legislative package to support strategic investors, the so-called "investment nannies". According to its terms, the manufacturer must invest in Ukraine at least 20 million euros, create more than 80 jobs and offer workers wages that would exceed the average in the region. If Bosch agrees to the listed conditions, the Ukrainian government promises to provide tax incentives, preferences for the equipment import, and the like.

Представители компании пока занимаются изучением перспектив для бизнеса, инвестиционного климата и уже подыскивают место для потенциального завода.

Representatives of the company are still examining prospects for business and the investment climate and are already looking for a location for a potential factory.

"For us, Ukraine is an interesting and important region for investment. There are serious intentions to organize electric power tools production capacity here. Now we are examining the location for production, analyzing the proximity of sales markets, skilled labor, and organizational issues," Steffan Hoffmann, authorized representative and President of the Bosch group in Ukraine, Russia, Belarus, Central Asia, Mongolia, and the Caucasus, noted during the meeting.

Context. Recently the Verkhovna Rada supported in the second reading the bill on industrial parks (No. 4416-1). It provides financial and institutional incentives for investors. These include, in particular:

  • compensation for connection to power grids,
  • compensation of interest payments on loans,
  • partial compensation of the participants’ costs for the production establishment.

The stipulated incentives should foster: increasing the level of employment in the country and reducing the brain drain abroad; increasing the volume of non-resource production and export; growing revenues to the budgets of various levels; creating a favorable investment climate.

The bill provides for at least 2 billion UAH of budgetary funds for the development of industrial parks annually—from 2022 to 2025.

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