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Light Industry in Ukraine
Light industry in Ukraine is one of the most socially important economic segments, as it is a multi-industry complex with a high level of internal cooperation. The light industry sector includes 25 distinct segments and 500 production enterprises, and employs more than 300 thousands people.
The main market segments are textiles, leather, garments, knitwear, footwear, textiles and haberdashery, clothing accessories, leather haberdashery, fur, toys, china and porcelain, and others.
As a whole, the country’s enterprises make up around 7% of the industry’s total production potential and 2.4% of production funds. The largest segments in terms of production volumes and number of employees are textiles, leather footwear, garments, and knitwear.
The regions contributing the most to light industry production volumes are Zhytomyr region, Lugansk, Chernygiv, Lviv, Rivne, Ivano-Frankivsk regions, and the city of Kyiv.
Light industry production capacities enable annual production covering cotton, wool tissues, silk fabric, linen as well as suits and skirts, dresses and coats, jackets, shirts and blouses. The industry’s companies serve both public and private customers domestically and abroad.
The availability of notable technological facilities has helped a number of companies receive international awards for the high quality of their articles. Hence, “Cheksyl” was awarded a Woolmark international certificate from the International Wool Secretariat based in Dusseldorf for 14 articles of wool-worsted fabrics. For its collection presented in Paris, Lugansk-based “Lutri” received an Oscar award. The Association of Enterprises of America and Europe awarded “Tysmenytsa” Fur Company a prize “For Commercial Prestige and the Best Trademark”, while “The Best Trademark” award was presented by the Madrid Club of Trade Leaders.
The list of domestic market leaders is headed by the Textile-Contact firm, whose main business is the production and sales of all types of fabric, artificial fur, knitwear material, applied materials, and accessories. The company produces such a wide range thanks to large orders for cotton, wool, and semi-wool fabrics, as well as for beddings for internal use by several government ministries and institutions. Textile-Ukraine Corporation is another fast-growing union with industrial, research, and financial potential. The development of the corporation was encouraged by large financial partners from Russia. The corporation embraces 27 enterprises from all over Ukraine, which manufacture almost the entire spectrum of light industry articles. Dominant exporters for the past several years have been “Ukraina” (Zhytomyr), which sells its articles to Germany, the Czech Republic, Slovenia, Croatia, Hungary, and Poland; Cherkassy “Silk Works”, shipping silk fabrics to the USA, Denmark, the Czech Republic, and Hungary; as well as “RivneLen” and “VOZKO” (Voznesensk).
“Lyubava” Knitwear Enterprise of Cherkassy, and “UkrAmTex” Company (Brovary) are other enterprises with successful experience of designing new clothes articles and selling them abroad. “Almatti” trademark is the largest producer of high-quality outerwear. Each year “Almatti” offers more than 100 models of coats, jackets, and suits of various silhouettes and styles to women.
The industry includes 26 joint ventures, most of which are working in textile, sewing, and the leather footwear segments of production. The most notable are Ukrainian-British JV “Demitex” based on the Poltava Cotton Mill, Ukrainian-German JV “Sanders” established in the premises of Irshava Garment Factory, Ukrainian-Dutch JV “TikaFurLux” set up on the base of “Tysmenitsa” fur company, Ukrainian-Lithuanian JV “Vaise” established upon the facilities of Cherkassy Garment Factory, and many others.
Out of 500 companies, more than 140 are running foreign trade. Their exports of fabrics (cotton, wool, and silk), socks and stockings, knitwear, and garments, china and porcelain, as well as leather semi-products, and other articles are destined for 25 countries of Europe, Asia, the Americas, and the CIS.
The investment attractiveness of light industry enterprises lies in the fast return on investments – thanks to short production and sales cycles, quick updating of the product mix, the availability of local raw resources (wool, linen, raw leather) and the potential capacity of the Ukrainian market.
Now the task of Ukraine is to support and develop positive trends in the industry, especially in relation to investments, which encourage upgrade of production, implementation of state-of-the-art technologies, and the commissioning of new types of competitive products.
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