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The reports from the Investigation
of the industrial development of three Ukrainian regions
(Vinnytsia, Odessa and Zhytomyr)

The Investigation was devoted to the analyses of the industrial development of the regions, in which the Ukrainian participating Universities are located. It was conducted in order to understand the current situation of the regions’ developments, the needs and requirements that young specialists should respond. Thus, we have three reports on the Desk-study from Vinnytsia, Odessa and Zhytomyr regions.

  1. Report on the Desk-study conducted
    in Vinnytsia region by Vinnytsia National Technical University
  2. Report on the Desk-study conducted in Odessa region by Odessa National Polytechnic University
  3. Report on the Desk-study conducted in Zhytomyr region by Institute of Business and Advanced Technologies


1. Report on the Desk-study conducted
in Vinnytsia region by Vinnytsia National Technical University

Vinnytsia region was formed on the 27th of February in 1932. The region is situated in the Right-bank Ukraine on the South-East of the Prydniprovskyy hills and on the south-west of the Podillya hills.

It borders on Chernivtsi and Khmelnytskyy regions on the West, on Zhytomyr region on the North, on Kyiv, Chernivtsi and Kirovohrad regions on the East, upon Odessa region on the South and to the South-West of Vinnychchyna, along the river Dniester, the section of 202 kilometers presents the border with the Republic of Moldova.

The territory of Vinnytsia region is 26, 5 thousand sq. km, that makes up 4,4% of the territory of the modern Ukraine. The administrative territory of the region consists of 27 districts and the regional centre consists of 3 municipal districts. There are 27 districts, 17 towns, including 4 cities with republican and regional subordination, 30 town type villages and 1,467 villages.

The total number of the actual population of the region as of the year 2003 accounted for 1,763.9 thousand people, including 804.7 thousand male or 45.6%, 959,2 female or 54.4%; the urban population makes up 809.1 thousand people or 45.9%, the rural population - 954.8 thousand people or 54.1%.

The peculiarity of the national complement of Vinnytsia region is its multinationality. According to the refined of the All-Ukrainian Population Census, the territory of Vinnytsia region houses over 133 nationalities.

The administrative center – Vinnytsia – had been mentioned in historical sources for the first time in 1363, and in 1795 got the town status in 1795. The population makes up about 450 thousand people.

The main places of interest are the Museum and Homestead of Mykola Pyrohov, the literary and memorial museum of M. M. Kotsiubynskyy, Troitskyy cathedral with its cells.

Vinnytsia is situated in the center of the region with the main auto and railway lines.

Vinnychchyna is the region of industry and high-mechanized agriculture with the significant science and manufacturing, mineral and raw materials base.

There are more than 1100 layers and deposits of 30 kinds of different useful minerals, tens of the peat layers as well as the rare deposits of granite and kaolin clay, garnet and fluorite. In the region there are some healing sources of mineral as well as radon water in Khmelnyk. Having such uncounted number of mineral resources, Vinnychchyna can become the leader of their export to the UIS counties and on the World market.

The industrial potential of the region is represented by such enterprises as the Ladyzhyn heat power station, associations "Infrakon", "Mayak", "Krystal", "Vinnytsya Ballbearing Enterprise", machine-engineerinng plants in Mohyliv- Podilskyy, Kalynivka and Bar, tens of processing and light industry enterprises. More than 400 enterprises work in different branches of industry.

Vinnytsya region has 12.7% of the industrial manufacturing potential of Ukraine, 2% of fixed production assets cost and 2.6% of the industrial output.


More than 800 communal agricultural and inter economy enterprises, 846 private (peasant's) farms and 333 auxiliary and storing farm, 4 research stations, the scientific and research institute of forages are indulged with the agrarian production.

Vinnytsia region has 39 sugar mills, 13 distilleries, 2 alcoholic beverage plants. A quite good base for processing sunflower seeds and groats crops has been formed. As for the gross sugar and corn production, Vinnychchyna takes the first place in the country, and shares the first and the second places in vegetable production with the Autonomous Republic of Crimea, which enables the region to become the main supplier of these goods to the UIS counties and on the World market.

The powerful scientific and production sphere is characterized with the existence of the technical, medical, pedagogical and agricultural Universities and some Institutes. There are more than 30 educational establishments for the training of the junior specialists and high-qualified workers, 20 states scientific and research, design, design and investigation institutes.



2. Report on the Desk-study conducted in Odessa region
by Odessa National Polytechnic University


Industry

Тhe region of Odessa - is an advanced agro industrial region which is playing a significant role in the development of Ukraine economy, it makes 5,2% of Ukraine gross national product. The economy of the region rates with a high degree of diversification and quick rates of development. There are 1 т 85,5 thousands subjects of enterprise activity in the region from them 49,5 thousands juridical persons and 136 thousands private businessmen. In gross national product the share of small enterprises of the region makes only 10% that causes the further active development of this sector. In 2006 the quantity of small enterprises has increased up to 14 979; there are more than 20% of the working people included into the sphere of medium and small business of the region.

The most developed industrial productions in the structure of Odessa region are food-processing industry and light industry, machine industry, metallurgy and processing of metal, and also chemical and petrochemical branches. In the regional and international levels, significant role are playing such branches as meat and milk, sugar, fat-and-oil industries, fruit-and-vegetable, confectionery, and tobacco. In particular, the region is the national leader of wine stocks manufacturing (60%) and food concentrates. Such known companies as joint-stock company "Odessa cognac factory" (Shoostov), joint-stock company "Odessa wine factory" (Francuzkiy Bylvar); Concern "Overline" in which structure is entering "the First Odessa brandy-vodka factory" (Myagkov), "the Odessa champagne factory" (Odessa) and "Izmail wine factory" (Izmail); Joint-Stock Company "Odessa preserving plant", joint venture "Vitmark-Ukraine", "Odessa fat- and-oil combine" (Sunny valley), "Baltskiy milk cannery" (Lasuna) are leaders of our region. The most developed branches in a machinery-producing complex are machine-tool constructing, ship-repair, motor industry, instrument making and manufacture of the process equipment for food-processing industry and process industry. Leading enterprises are: "Odessa cable works", "Holodmash", "Tochmash", "the Factory of press automatic press forging", the Odessa factory "Centrolit", "Krayan", "the Odessa factory Micron", "the Odessa factory of beam drill", "Telecards" and others. These enterprises export are the significant part of production, carrying out the orders of the CIS countries, Europe, Asia and the Near East. Such branches as textile, clothing, woolen, tanning, fur, shoe and knitted are playing the leading role in the structure of the light industry. The enterprises of chemical and petrochemical branches are developing mineral fertilizers, paint and varnish products, household chemical goods, plastic and general mechanical rubber goods. The leader of this branch is Joint- Stock Company "Odessa port factory". The manufacture of a brick, concrete designs and mixes, natural wall materials, an artificial stone and modular elements on a local raw-material base of building materials is increasing volume every year. The largest enterprises of the region are: Joint-Stock Company "Odessa cement factory", "Odessa clayite factory", Joint-Stock Company "Factory of ferro-concrete products", "Factory of ferro-concrete designs". In the first half of the 2006 year the gain of Odessa region industrial production has made 5,1%. And at the same time the volume of the realized industrial production has made 4,6 billion UAH. (910,9 million USD) and it is 2,7% of a national parameter. The share of the manufacturing industry production has made 86,2%, including: the food-processing industry of 31,42%; mechanical engineering of 33,04%; the chemical and petrochemical industry of 21,15%.

Market structure of Odessa region is presented on the diagram 1

Trade

The trade is one of leading branches of the regions economy it forms 40,8% of all credit portfolio of the bank system and over 10% of foreign investments. In the first half of the 2006 year commodity circulation in Odessa region made 5,5 billion UAH (1,1 billion USD), including retail commodity circulation 3,1 billion UAH (612,4 million USD). The growth rate was 20,2% higher than in all 2005 year. Commodity circulation of the region makes 5,76% of the national commodity circulation. The largest market of industrial goods in the territory of the CIS, “Seventh kilometer", which is settled down on 69,2 hectares in Odessa suburb is working in the region of Odessa. Daily the market is visited with more than 150 000 buyers. The average daily volume of the sales makes about 20 million USD.

The services

In the volumes of the given services both domestic, and foreign consumers, Odessa region takes the leading position in Ukraine. About 80% of the total product is the services sector in Odessa. There are 3 674 companies which offer more than 50 various kinds of services. In the first half of the 2006 year the volume of the given services has made 4 731,8 million UAH (937 million dollars of the USA), volume of the paid services - 852,5 million UAH (168,8 million USD), that makes more than 18% of a national parameter. The Leading positions are taken by auxiliary transport services, services of mail and communication, service on transportation of cargoes, services in sphere of operations with the real estate, rent of property, and also services in sphere of culture, entertainments and sports. The services of cell and long-distance telecommunications make the half of the paid service.

The foreign trade activities

Odessa region - is one of the most perspective regions of Ukraine dealing with the trade of the foreign activities, joint business, formation of free economic zones. In the volumes of foreign trade the region is one of the five leading cities of the country and in volumes of export and import of services also keeps leading position In the first half of the 2006 year the volume of exported goods has made 361 million USD, and imported goods - 799 million USD (accordingly 3,86 % and 4,22 % of the national parameters). The volume of export services made 445 million USD. According to the results of 2005 year the foreign trade turnover of the region made 4 billion USD - for the first time it is fixed the negative balance of this trade. The biggest exporters of the region became the industrial enterprises such as: Odessa port factory, Odessa cognac factory and "Odessacable".

The countries of Asia and the Europe, and also the states of the CIS (Russia, Belarus and Georgia) are the basic trading partners of the region. The amount of the imported goods for the European union is 17,62% and the exported is 20,48%.

In the structure of exported goods, the industrial goods - products chemical, food, light industry and mechanical engineering are prevailing. Among the imported goods a leading place is taken by the textile products, food stuffs and products of the chemical industry. There are two free economic zones which are giving a preferential mode of the taxation - "Porto-Franko" (in the territory of Odessa sea trading port) and "Reny" (in the territory of Reny trading port), in which there are 11 investment projects for a total sum 1 086,6 million USD being processed.

The transport

The transport – is the leading branch of Odessa region economy almost the half of the regions total income. More than 12% of the working population are included in this sector. The services sector makes 26,3% of a total Odessa product. Odessa agglomeration - is the largest port center of Ukraine with the developed transport infrastructure and accompanying complex "port" manufactures in processing import, export and transit raw material. In the first half of the 2006 year the volume of cargo transportation in Odessa region made 16,2 million tons, the biggest part of transportations is carried out by railroad transportation (65,4%). In the first half of the 2006 year the volume of passenger transportations in the region made 114,4 million passengers and was carried out mainly by motor transport (85%).

The investments

In the beginning of the second half of the 2006 year the total amount of foreign investments into economy of Odessa region made 697,5 million USD, including direct investments of 697,5 million USD. In Ukraine our region takes the third place, which is conceding to the capital and the region of Dnepropetrovsk. At the end of the year it is planned to involve about 970 millions USD of investments. On 01.07.2006 the amount of the foreign investments per capita makes 246,7 thousand USD.

There are 715 enterprises with participation of the foreign capital which total sum makes the amount of 594,9 million USD in the region. The biggest part of the direct investments (99,7%) concerns the enterprises with a private pattern of ownership. More than 35% of all investments head to two free regions economic zones. As a results of the first half of the 2006 year the three leaders of the total volume of investments into economy of the region include the Netherlands, Chyprus and the USA. Foreign investments are coming from 68 countries and the part of the European unions investments is 42,7%. The greatest interest of the foreign investors is represented with enterprises of transport services, the food-processing industry and trade.

The enterprises of the region invested into the economy of the foreign states 36 million USD thus of 98,3% is invested in the enterprises of a sailing charter. The state enterprises make 98,4% of the region’s investors. Odessa -is the first city in the CIS territories, which received the rating of international agency Fitch. At the end of July, 2006 long-term ratings in foreign and national currency at a level "B +" and a short-term rating "B", the forecast on ratings is "Stable" was awarded to Odessa. Such achievements of the city, as diversify and dynamically developing economy, in particular sector of services, and also positive balance of the budget current balance of the city were marked.

The tourism

The region of Odessa is one of the most perspective recreational areas of the seaside type. In the long term perspective tourist business can bring an income of not less, than sea transport complex. The center of tourism and the rest of the region is Odessa - for foreign tourists it is the second most popular city (after Kiev). Such resorts as the region of Belgorod-Dnestrovsk and the region of Kominternovo can also enjoy the big popularity. The natural-climatic conditions and presence of significant recreational resources are promoting the development of an extensive network of sanatoria, rest houses, boarding houses, sanatoria-dispensaries, children's improving establishments. Besides the sea beaches, which extension is more than 175 km, there are six estuaries in the region, two of which - Kujalnick and Shabolat - are wide known for their dirt resorts.

Every year the region of Odessa accepts over one million tourists and people who are having a rest both from Ukraine, and from the countries of near and far abroad. Today each fourth visitors of the region – is the foreigner, and this parameter is increasing every year. There are 173 tourist agencies in the region which are offering about 150 various routes and programs of the rest. Individual tourism is also actively developing.

Construction

The region of Odessa is one of the five leaders of Ukraine on the volumes of construction. There are 1 403 building organizations in which more than 30 thousand persons take part. In the first half of the 2006 year the 571 buildings with the total area of 185,4 thousand sq. M (5,81% of a national parameter) has been put into exploitation.

Building of apartment houses is the most active in developing branch of the region and is attractive to investments. 23% of a total volume of investments have been directed to this branch in the first half of the 2006 year. Among building companies which are offering apartments econom-and the business classes the leading are: "Progress-build", "the New House", "Stikon", "Source", "DSK", "Stroytehsnab", "Building-group", "Coast-group", "Intostroj" and "Zlatograd". Such building companies, as "Progress-build" and investment group "GROWTH" are working in the market of elite apartments. The high interest to the region have Russian and Turkish building companies.

The analysis showed that the Odessa region is included into the three most dynamic regions of Ukraine, considering this the need for economists and financiers is constantly increasing. Given that modern information technology is used in all areas of industry, commerce and transport enterprises and in sphere of services, special importance acquires information security and data protection. Therefore training of experts-economists should include training in this area. The given objective will allow the achievement of the project realization and implementation of its results in all the region's universities.

To ensure the quality of project implementation, it is necessary to carry out repeated control questioning of target groups of the project approximately in October 2008. Final terms of carrying out of questioning will be approved by experts at the meeting in Solerno.



3. Report on the Desk-study conducted in Zhytomyr region
by Institute of Business and Advanced Technologies

Industry at Zhytomyr region

Zhytomyr region is an agrarian-industrial region. Unfortunately, after disintegration of the Soviet Union, most of big engineering plants, located in Zhytomyr region, was closed. It was the reason why Zhytomyr region has a high-level of unemployment.

1. Agricultural production

Agriculture gives the 30% of gross domestic product. In total amount of production of agricultural goods the plant- grower production prevails (62%).


Gitomir1

At stock-raising branch production of milk and meat prevails (43% and 38% accordingly).

There are more than 200 hop- and flax-production units which provides 74% and 23% of all-Ukrainian production of this crops.

2. Industrial production
Gitomir2
Gitomir3

In addition, there are large supplies of valuable minerals, many of them are unique: topazs, quartzities and semiprecious stones. Zhytomyr region is main Ukrainian supplier of titan ore and titan concentrate.


Design by ITPI, 2008