The Kyiv School of Economics has concluded that Ukraine can produce 90% of the building materials needed for reconstruction. The key to this is to focus on attracting investment in the construction materials industry right now. This is stated in the study of the Kyiv School of Economics, initiated by the European Business Association, reports UNN.
KSE analysts call cement one of the main materials for reconstruction. According to the Ukrcement Association, the demand for cement during the peak years of reconstruction will be 14 million tons per year, and Ukrainian production should be prepared for this. In particular, it is about building clinker kilns to increase cement production capacity by more than 2.4 million tons. Also, great demand is expected for concrete, steel structures, bricks, glass and thermal insulation materials.
"Theconstruction of Ukraine - is a great opportunity for all companies in the country's building materials sector. This is not only a significant increase in demand amid complicated import logistics, but also new construction standards based on build-back-better principles. Those businesses that are ready for such a challenge will not only be able to increase volumes, but will also receive an incentive to move to a new level in terms of energy efficiency, environmental friendliness, etc.", comments Maxim Nefyodov, Director of Innovative Solutions at KSE Institute.
According to the study, the main common problem for all producers in the industry is a significant drop in demand for construction materials - up to 25-40% compared to the pre-war period. So now, investments in the industry are a long-term endeavor.
Olena Shulyak, Head of the Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, that it is now important to create the most favorable conditions for investment and production development: "Our task is to make sure that those enterprises that work in the production of building materials have fewer regulatory problems, investment barriers, and that they develop here in our country."
Among the active investment projects being implemented in Ukraine:
- Irish company Kingspan Group is launching a project worth more than $280 million.
- Ukrainian investment company EFI Group plans to build Ukraine's first float glass and specialty glass plant, Novasklo, with an investment of about €232 million. The Ukrainian company City One Development is building a glass production plant in Berezan, Kyiv region, with an investment of 100 million euros. It is also planning to build another plant in the central region of Ukraine for the production of coated glass.
- International CRH has invested $80 million in Ukraine since the full-scale invasion, including $34 million to build a cement terminal in Kyiv region. In 2024, the company intends to acquire two plants of the Italian company Buzzi and expand its investments in Ukraine. The deal itself is estimated at 100 million euros. It is currently at the final stage of consideration by the AMCU.
- The French group Saint-Gobain started construction of a dry mix plant in Ivano-Frankivsk region in October 2023. The investment amounts to €9 million.
Other investors include Kreisel (5 million invested and 10 million planned), MC-Bauchemie (plans to invest 1.5 million), GreenMix and Miroplast.
The KSE notes that investors are paying attention to environmental projects, the use of renewable materials, and are planning to modernize facilities. In particular, Kingspan, Saint-Gobain, and CRH emphasize the importance of implementing environmental solutions in their projects.
To read the full text of the study "Structural changes and challenges in the construction industry of Ukraine: analysis and forecasts" by the Kyiv School of Economics, please follow the link.