Irish company Kingspan Group to invest over $280 mln for building materials factory in Ukraine
In Ukraine, the Irish company Kingspan Group is implementing an investment project worth more than 280 million dollars.
Prime Minister Denys Shmyhal reported this.
What is the problem?
Russia's warfare has caused extensive damage to Ukrainian citizens, urban and rural regions, economic standing, and ecosystems. Ukraine is now confronted with a strenuous journey toward recovery from these grievous effects.
During the year and a half of the active phase of the war in Ukraine, hundreds of thousands of buildings were destroyed, along with energy infrastructure facilities and kilometers of roads.
According to UN estimates, the restoration of Europe's largest country by area will cost $411 billion today, which is also not the final amount.
In addition to financial investments, reconstruction will require enormous human and material resources.
The war significantly reduced the Ukrainian market for building materials.
The post-war need for the production of construction materials will only grow, and with the beginning of the reconstruction of infrastructure facilities, it will fully manifest itself.
What is the solution?
The Irish company Kingspan Group will construct a building materials plant in Ukraine for $280 million.
"The company aims to increase its production capacity and thus support Ukraine in its recovery with a special emphasis on low-carbon production," said Mike Stenson, executive director of the Kingspan investment project in Ukraine, Mike Stenson, the head of the Kingspan project in Ukraine, emphasized.
How does it work?
Kingspan will invest 200+ million euros in the project. The campus will consist of 6 production areas, including the production of advanced insulation materials and district heating solutions. The campus will focus on the production of construction products with high-added value.
In addition, the project envisages the creation of "green" production with a low carbon content, which will positively impact the environment.
The company's representatives have already started looking for sites for the campus in the Lviv region. The company chose the Lviv region because of its proximity to the border.
The UkraineInvest investment attraction and support office team provides complex organizational and advisory support to prepare the Kingspan project.
"Kingspan's investment is significant for Ukraine in the context of economic development and also sends a strong signal to other investors." — noted Executive Director of UkraineInvest Serhii Tsivkach.
Construction is scheduled to begin in 2024.
According to Shmyhal, Ukraine will contribute to the creation of infrastructure for the functioning of the manufacturing enterprise. The implementation of the project will create more than 700 jobs in Ukraine.
Kingspan is one of the largest investors that came to Ukraine during the full-scale invasion of Russia. The company is a world leader in producing high-tech, energy-efficient building materials, operates in more than 80 countries, and employs more than 22,000 people at 212 Kingspan production sites.
It should be noted that more than 200 enterprises have been relocated to the Lviv region under the business relocation program, and 144 of them are already working.
Rubryka also reported that American investors raised $30 million to finance Ukrainian startups.