Embassy of Ukraine in the United States of America

, Kyiv 19:39

Mykolayiv Region

The boundless fields of Pobuzhzhya and Ingul River region, green vineyards and wonderful flowering gardens under bottomless blue sky is Mykolayiv land.

The agriculture is the leading industry of the regional economy. Mykolayiv Region makes significance payment in strengthening of the country, producing almost seven percents of cereals and sunflower, three percents of gross milk production. The production of cereals and sunflower per capita in the region exceeds the proper indexes on average in Ukraine by three times as well as milk – 10 percents.

The positive tendencies are observed in production of vegetables, grape, sugar beets and others. The production of agricultural products (meat, milk and eggs) especially grows in the reformed agricultural enterprises, farms and individual facilities used 373 thousand ha of land or 19% of the total regional area. The number of facilities working profitable has been increased; the level of their profitability grows. The debt of wages to the rural workers has been almost fully settled.

Following fact testifies to successes in the agriculture that by the initiative of the Ministry of Agrarian Policy of Ukraine and Ukrainian Academy of Agrarian Sciences the ІХ International Scientific-Production Conference on actual problems of development of pig breeding was held in the region. Its participants highly valued the activities of regional facilities in this direction.

In the industrial complex of the region, without regard to great number of enterprises worked on the military complex of the former Soviet Union, practically without assistance of the government the conversion of production has been conducted. However the loss of military orders, financial and economic crisis has negatively affected on work of practically whole industrial complex of the region, foremost machine-building and shipbuilding industries.

Mykolayiv is the large center of shipbuilding of Ukraine, where main production, scientific and technical, professional and educational potential of the industry is concentrated. The shipbuilding industry provided about 60 thousand Mykolayiv citizens with work; in any case 60% of city inhabitants were employed here. Notably that the revival of the industry began from shipbuilding exactly; in fact this is one of the priority branches of the regional industry, which have the strategic value for the defence and economy of the country. And today the Mykolayiv shipbuilders make great contribution to development of modern military and civil vessel– and shipbuilding.

For the last five years for stabilization of work of shipbuilding industry the package of important problems were solved at legislative and governmental level and it gave the possibility to stabilize production activity of enterprises of the branch and to improve financial position of enterprises. For shipbuilding plants the favourable regime of taxation was set as well as special custom regime; the debt of payments in the budget and state special purpose funds was restructured. The government grants significance financial support to the shipbuilding enterprises of Mykolayiv; therefore the special economic zone "Mykolayiv" was created.

The history of the Plant «Okean» is a model; it was established in 1952, when the first vessels – non self-propelled barges were built. For 50 years the plant built almost 400 different vessels with the displacement over 2,5 million tons: these are dry-cargo and scientific-research vessels, marine tugs, super trawl ships – shrimp trawlers, fish processing bases and ore-oil tankers. The enterprise tested the heavy economic crisis, and today due to the strategic investor it experiences the second birth. Since acquisition by the Dutch Firm "Damen" of the controlling interest enterprise "Damen Ship Yards Okean" the radical changes were taken place there so the production volumes were extended once or twice; the social situation was normalized; the collective believed in the future and the order book was formed for the next 5 years. Almost monthly the shipbuilders launch a ship. By the International Rating "Golden Fortune" the JSC "Damen Ship Yards Okean" was acknowledged by the best enterprise in 2002.

The Production Association "Zorya" manufacturing 100 percents of gas turbines of the country is effectively functioning. The production of the SE "Scientific-Production Complex of Gas Pipe-Building "Zorya-Mashproekt" was certificated by the quality system ISO-9001 and has demand all over the world.

Annually more than one million tons of alumina from import high-quality bauxites (from Guinea and Jamaica) is produced by one of the biggest European enterprises of non ferrous metallurgy – the JSC "Mykolayiv Aluminous Factory". The enterprise fully provides the Ukrainian demands and about 90% of factory products are exported to other countries, receiving instead the finished aluminium; it exports 75% of this aluminium. The record growth of production volumes happened in 2000: more than 1.15 million tons of alumina has been manufactured that exceeds a project capacity of the factory (1 million tones). That year the enterprise has received 10 tons of metallic gallium (rare-earth element used in electronics and space technologies) from production wastes (red slurry) for the first time.

In 2002 more than 20 enterprises of Mykolayiv Region became the diploma-winners of the International Academic Rating "Golden Fortune", including SE "Scientific-Production Complex of Gas Pipe-Building "Zorya-Mashproekt", JSC "Pervomayskdyzelmash" and JSC "Mykolayiv Aluminous Factory".

The enterprises of electroenergy industry are stably functioning, in particular separated subdivision South Ukrainian NPP of the National Energy Generating Company "Energoatom", which produces almost 17.6 billion kW/ year of electric power that exceeds the regional demands by 3.5 times. The share of the regional electroenergy industry makes 9.6% of the national production of electric power, including almost 21.0% of electric power produced by the nuclear power plants of Ukraine.

The enterprises of the light industry of Mykolayiv Region manufacture 11.2% of products of the national Ukrainian volumes, in particular 13.3% of the national production of man's shirts, 11.7% of corselets and almost 6% of coats and trousers.

The share of one of the most powerful enterprises of leather industry of Ukraine JSC "VozKO" in production of leather goods of chromic tanning makes annually 50-60%. The products of the enterprise were certificated by the quality system ISO-9000.

The LLC "Production-Trading Firm "Velam" constantly extends the production volumes. The company was the first in CIS and fifth in the world has mastered the unique technology of production of ecologically friendly material "Sprut" that enables to avoid the usage of foam rubber.

The JSC "Laktalis-Ukraine" has reached the great successes in the food industry. The company produces the wide range of dairy products. For the last years more than 30 new names of products were introduced in the enterprise. The volume of foreign investments in the JSC "Laktalis-Ukraine" makes USD 3.02 million.

The LLC "Sandora" is effectively functioning in the canning branch and it is one of the most producers of natural juices, nectars, fruit and soft drinks in Ukraine (more than 70 names in the packing "Tetra-Pak"). The volume of foreign investments (Republic Lithuania) in the enterprise makes USD 2.0 million.

The regional share in Ukrainian production of can foods makes 10.6% as well as products from whole milk and butter – 4.5 and 3.3% respectively.

Among enterprises with foreign investments, which successfully develop investment projects, there are following enterprises of food industry and processing of agricultural products such as JSC "Mykolayiv Brewery "Yantar" (country-investor – Cyprus; volume of foreign investments – USD 14.39 million) and Joint Ukrainian-Hungarian-English Venture "Nibulon" – the producer and exporter of agricultural production (volume of foreign investments – USD 0,1 million). Among enterprises providing transport services there are JSC "Mykolayiv Potassium Terminal "NIKA-TERA" (country-investor – Cyprus; volume of foreign investments – USD 4.9 million) and Mykolayiv Sea Commercial Port (volume of foreign investments – USD 1.8 million).

The development of investment projects at these enterprises is oriented on renovation of fixed assets, reconstruction and modernization of technological processes.

For years of independence it was not only saved but also extended the network of educational-training establishments in the region. Almost in every district the schools of a new type – lyceums and gymnasia (22) are opened.

The high school of the region has been changed cardinally for these years. The leading higher educational establishment of Ukraine training specialists for shipbuilding and contiguous branches of the industry is the Ukrainian State Maritime Technical University. For its existence about 40 thousand engineers-shipbuilders, machine builders, economists, programmers were trained and the like. The pedagogical, humanitarian named after Petro Mogyla and agrarian universities of the IV level of accreditation are effectively functioning.

There are three professional theatres, 1180 establishments of culture, including 577 clubs in the region. 552 libraries, two state regional museums, three parks of culture and rest, zoo, are functioning in the region.

Mykolayiv citizens thanks to the labour achievements inscribe worthy pages in the chronicle of native land. The positive results can be achieved only thanks to the political stability and purposeful well-coordinated work in interests of good and improvement of life of people.