Foreign direct investment is especially important for the Kharkiv region, due to a lack of own resources for the innovative development projects. Investment can save and renovate obsolete infrastructure such as industrial facilities, public buildings or communications systems.
It is important to understand what type of projects are able to receive foreign investment, and what type can only be financed by the local government.
Foreign investment can be promoted through learning about such enterprises, which exist in the Kharkiv region.
Nestlé, Switzerland, is a leader in food production. In 2010, Nestle acquired the trademark Mivina of LLC Technocom — the Kharkiv instant food producer. The largest segments of Nestlé’s business in Ukraine are cooking (TM Torchyn), coffee and drinks (TM Nescafé, Coffee-mate), confectionery (TM Nestlé and Svitoch) and fast food products (TM Mivina), baby and special food, pet food, ready-made breakfasts, and ice cream.
The leader of the Ukrainian tobacco market is Philip Morris Ukraine, a private joint-stock company founded by Philip Morris International. The company uses local raw materials in the production of local brands. In 1994, it signed an investment agreement with JSC Kharkiv Tobacco Factory and bought 51% of the factory shares. In 2003, the company began construction of a new factory, which started to operate from May 2006. About 900 workers are involved in a production. Philip Morris produces 14 brands of cigarettes, including Marlboro, Parliament, Chesterfield, Muratti, L&M, Bond Street, Next, and others. In 2016, the company’s share in the Ukrainian market was 29.9 percent.
The joint Ukrainian-British LLC Ukrainian Tea Factory Ahmad Tea is also situated in Kharkiv. Founded in 1998, Ahmad Tea is now the top tea sales enterprise in the country nowadays. As of 2009, annual production of the plant was 2,500 tons, while the total production capacity a year is 5,000 tons. Anyone can see the process of tea production at the factory: there are guided tours where visitors can taste varieties of tea and discover the secrets of its production.
Other foreign production companies in Kharkiv are LLC Amcor Tobacco Packaging Ukraine (France), East-Ukrainian company Malteurop (France), Elme Messer Ukraine (Estonia), Kharkiv branch of PJSC SUN InBev Ukraine (Belgium).
Companies working in the fields of leisure, culture, and trading are also on the region’s map. Book Club Family Leisure Club publishing house is subsidized with investments from the Netherlands. Sun Group Corporation (Vietnam), LLC Metro Cash and Carry Ukraine (Germany) along with many others have offices in Kharkiv as well.
Kharkiv region has been working hard to promote investments to all spheres of its life. And a list of foreign companies operating here confirms this.
Text: Anastasia Mitrofanova