Construction Ukraine

Construction Ukrtaine belongs to AVdov™ - an  International Web Publishing Company. Prime interest of AVdov™ is the fast economical grows of the new democratic Ukraine - the second biggest country of the Eastern Europe.

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Archive 2005 - 2006

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We want to make it possible for you to judge how hot the Ukrainian construction market is. 

The news are translated from Russian and Ukrainian language sources.

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 Ukraine

Construction market

Equipment Market

EURO 2012

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Ukraine

Ukraine is an independent democratic country with market economy. 

On March 6th 2006 the U.S. House and Senate have repealed 32-year-old trade restrictions against Ukraine and extended permanent normal trade relations to the Eastern European Country of 47 million people. Ukraine had been sanctioned by the Jackson-Vanik amendment to the Trade Act of 1974. http://www.senate.gov/

The leaders of the European Union and Ukraine met in Kiev on December 1st 2005 for the EU-Ukraine Summit. On trade and economic relations, leaders welcomed the European Commission's assessment that Ukraine has met the technical criteria for the granting of Market Economy Status (MES) for trade defence, and welcomed EU Member States' support for the granting of MES to Ukraine on that basis. http://www.europa.eu

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Construction Market 

Construction market shows the strongest growth.

For the first half of 2007, total construction in Ukraine was reported at 19.7 billion UAH, up 14.4% relative to the same period a year ago www.ukrstat.gov.ua . 6.2 billion of them in the Ukrainian capital Kiev. 

The new mortgage law (passed December 2005) gave to the Ukrainian banks base to provide mortgage placement service at the reasonable rates. This created the highest demand on residential building. 

Residential building (mostly apartment buildings) is accompanied with strong growth of nonresidential market. Healthcare facilities, educational building and other institutional construction are mandatory for the new district’s development. Store construction is leading by national retail giants like XXI Century (XXIC) and international like Metro Group. 

Both multifamily and single family housing construction recently started in massive scale in the suburbs of the big Ukrainian cities like Kiev. Strong interest to housing was triggered by changes in land related policies. Only in Kiev suburbs seven locations (100 hectares in total) were provided for villages' construction. It is expected that 2.1M sq.ft. of single family houses, townhouses and cottages will be built there. 

Low interest credits provided by European banks like Deutsche Banc or London Citibank allow finance heavy highway and bridges projects. 

Most of the big Ukrainian construction companies, like Kievgorstroy, T.M.M., UKOinvestbud, Poznyakijilstroy ended 2006 with high net profit. Companies in aggregates and construction materials showed the same strong performance. In January - May2007, the Ukrainian branches of Dyckerhoff Zement reported production of 982 thousand ton of cement, 48,23% up compare to the same period a year ago. 

There are a lot of plans for the future. For example City of Kiev is planning renovation of the industrial areas that were developed in the first half of the last century on historical suburbs of the City. Today locations of these areas are perfect for commercial building, offices, hotels and luxury residential buildings. This project is attracting attention of many international investors. At the first stage it is necessary to relocate existing facilities to the new industrial parks out of the City. The depressed for a long time manufacturing building is going to be on demand as the project starts. 

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Equipment Market

Construction equipment is on demand. 

The main consumers of the construction equipment are big construction companies, road building companies, producers of aggregates and construction materials, municipalities. As a rule baying decision makers are companies headquarters. For example Kievgorstroy purchased construction equipment (cranes, concrete pumps etc.) for 33M UAH in 2005. Eurocement Group - Ukraine spent 55.9M UAH for new equipment for its Balcem and Pushka plants in 2006 and will spend 87.5M UAH in 2007. 

High natural gas prices are emerging implementation of energy saving brick facade cast-in-place monolith structure buildings. This technique could be cost effective only if achieving high production rate. Concrete pumps and mast climbers shall be on demand and they could be found on some construction sites already. 

Earth moving equipment manufacturers already successfully export their machines to Ukraine. Examples could be found in our reports from BuildTech 2004 , BuildTech 2005 , and Buildtech 2006. New for Ukraine growth of housing construction shall ignite interest to compact Earth moving equipment, telehandlers, small compactors, trenchers, and pickup trucks. There is a huge potential for equipment rent business in Ukraine. 

Domestic equipment manufacturing would need a lot of investments and some time to refresh their product lines and increase productivity to the required level. Rental market is not developed in Ukraine yet. Most of the construction companies have this own fleets. Most of equipment is very outdated. Old cranes, excavators, backhoes and others need a lot of maintenance, repairs, parts and services. Equipment downtime is one of the biggest problems of the Ukrainian construction. Used equipment form United Europe cannot solve the problem at all. Others East European countries already exhausted supply of it.

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EURO 2012 Football Tournament

The UEFA executive council on Wednesday (April 18, 2007) awarded hosting rights to Poland and Ukraine for the Euro 2012 football (soccer) tournament, rejecting an Italian bid, and a joint offer from Croatia and Hungary. 

Ukraine's parliament on Thursday April 17 passed a wide-ranging bill, called by MPs "The Euro 2012 Law”. The legislation gave official import tax breaks on sports goods and construction materials. The bill also made illegal, and stipulated fines and even jail time, for misuse of the UEFA label. Other articles of the law eased visa and currency import restrictions on tourists, and tightened penalties for ticket falsification, for the duration of the tournament. 

Kiev mayor Leonid Chernovitsky was quick off the mark as well, announcing the Ukrainian capital intended to build from the ground up a world-class stadium for 200 million euros. The final game of Euro 2012 is scheduled in Kiev, whose current stadium dates back to the Soviet Union and is in poor repair. Construction of a 50,000-seater stadium in eastern Donetsk, one of the four cities scheduled to hold games, is well under way and could be complete in 2009. A 30,000-seater modern stadium in Dnipropetrovsk was even further along, and would be operation by the end of 2007.

Ukrainian President Viktor Yushchenko on a Channel Five television interview predicted the infrastructure investment cost to Ukraine to hold its share of the tournament would be between three and five billion dollars. Ukraine Transport Minister, was less optimistic, estimating the cost at improving just the country's roads to quality sufficient for tens of thousands of foreign motor tourists at as much as 17 billion dollars. 

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started December 29, 2006

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