Local labour pool for production
A community of 78,400 residents and 6,700 IDPs provides a base for recruiting qualified production staff, and the local employment ecosystem supports workforce reskilling for new manufacturing requirements.
63 ha
Total plot area
35 km
to the EU border
€115/ha
monthly land lease
0%
corporate income tax · 10 yrs
12–18 mo
from first contact to launch
Relocate Your Production to Western Ukraine:
An Industrial Park 35 km from the EU
Greenfield plots for new manufacturing facilities
with pre-structured utility connection terms.
Land lease from €115/ha per month.
0% corporate income tax for the first 10 years.
Risks
Operating in a war-risk zone is a constant threat to people, assets, and the ability to fulfil commitments to customers
The current situation
Constant risk of loss of personnel and physical destruction of assets
Disruption to the production cycle from unpredictable blackouts
Customers cannot rely on stable shipment schedules
Staff relocating to safer regions
War risk complicates asset insurance and increases its cost
What relocation to Chervonohrad Industrial Park provides
A new facility designed to current standards, unconstrained by old industrial zones with ageing infrastructure
Utility connections within the park's available capacity under pre-structured terms
Labour pool: a community of approximately 78,400 residents and 6,700 internally displaced persons (IDPs)
Legal security: a land lease agreement of up to 30 years, protected by industrial park resident status
Stay vs Relocate
Stay in place, build on an open site,
or launch in Chervonohrad Industrial Park?
Stay in the risk zone
- Site entry modelExisting premises
- Cost of plot access—
- Corporate income tax18%
- Import VAT and customs duty on equipment20% VAT + import duty
- Labour poolStaff outflow
- Utility capacity and connections—
- Operational complexity—
Plot outside an industrial park
- Site entry modelLand purchase
- Cost of plot access100% of land value + financing cost
- Corporate income tax18%
- Import VAT and customs duty on equipment20% VAT + import duty
- Labour poolDepends on region
- Utility capacity and connectionsIndependent search for capacity limits and connection terms
- Operational complexityFull project cycle managed independently — from site search and acquisition through utility connections, regulatory approvals, design, and construction
Chervonohrad Industrial Park
- Site entry modelLong-term land lease
- Cost of plot accessEquivalent to 15–23% of plot value over a 30-year lease term (at a lease rate of 1.5% annually of the normative monetary value)*
- Corporate income tax0% for the first 10 years
- Import VAT and customs duty on equipment0% + 0%
- Labour poolCommunity of approximately 78,400 residents and 6,700 IDPs
- Utility capacity and connectionsConnection within the park's available capacity under pre-structured utility connection framework
- Operational complexityPlot within the park, dedicated support from the park management company, pre-structured utility connection framework, and Build-to-Suit delivery to the resident's specifications
Parameter
Stay in the risk zone
Plot outside an
industrial park
industrial park
Chervonohrad Industrial Park
Site entry model
Existing premises
Land purchase
Long-term land lease
Cost of plot access
—
100% of land value + financing cost
Equivalent to 15–23% of plot value over a 30-year lease term*
Corporate income tax
18%
18%
0% for the first 10 years
Import VAT and customs duty on equipment
20% VAT + import duty
20% VAT + import duty
0% + 0%
Labour pool
Staff outflow
Depends on region
Community of approximately 78,400 residents and 6,700 IDPs
Utility capacity and connections
—
Independent search for capacity limits and connection terms
Connection within the park's available capacity under pre-structured utility connection framework
Operational complexity
—
Full project cycle managed independently — from site search and acquisition through utility connections, regulatory approvals, design, and construction
Plot within the park, dedicated support from the park management company, pre-structured utility connection framework, and Build-to-Suit delivery to the resident's specifications
*The 30-year lease equivalent is shown as the NPV of annual lease payments using a 5–9% discount rate. Tax incentives are presented in accordance with Ukrainian industrial park legislation.
Discuss terms
Advantages
Advantages for relocated manufacturing at Chervonohrad Industrial Park
Faster launch with a ready site entry model
A ready site entry model reduces time to launch and lowers the initial financial burden, as it requires no independent site search, land acquisition, or utility connection structuring.
0% import duty and VAT on new equipment
Tax incentives under industrial park legislation reduce the cost of importing new production equipment and lower the financial burden at project launch.
Legally formalised long-term plot use
Location within a registered industrial park provides a predictable long-term land-use model without the need to acquire land at project launch.
Accommodation for the relocated team
The community has the infrastructure capacity to accommodate a relocated team and support their integration into local life.
Production cooperation opportunities
The presence of active enterprises in food processing, light industry, wood processing, furniture, and metalworking in the community creates a basis for production cooperation and local supply chains.
Location & Logistics
35 km to the EU border and direct rail access: what this means for logistics
Uhryniv border crossing (UA–PL)
~35 km
(~40 min)
Lviv rail hub
~70 km
(~1 hour)
Warsaw
~400 km
(~5 hours)
Kraków
~370 km
(~4 hours)
The park plots have direct access to Road P-15 (Kovel–Zhovkva). A rail branch runs along the park boundary, which is an additional advantage for manufacturers that rely on freight rail.
Financial Effect of Resident Status
How much capital stays in the business with industrial park resident status
Manufacturing business with annual profit of €500,000
*indicative example for illustration only
Standard regime
As an industrial park resident
Corporate income tax over 10 years
€900,000
€0
Import VAT and customs duty on equipment
20% VAT + import duty
€0
Access to a 1 ha industrial plot
100% of land acquisition cost
15–23% of land value over a 30-year lease term
Up to €900,000
can remain in the business over 10 years*
*Based on the corporate tax line only · subject to reinvestment of the tax-exempt amount within the park
Get Site TermsManufacturing business with annual profit of €500,000
*indicative example for illustration only
Standard regime
As an industrial park resident
Corporate income tax over 10 years
€900,000
€0
Import VAT and customs duty on equipment
20% VAT + import duty
€0
Access to a 1 ha industrial plot
100% of land acquisition cost
15–23% of land value over a 30-year lease term
Up to €900,000
can remain in the business over 10 years*
*Based on the corporate tax line only · subject to reinvestment of the tax-exempt amount within the park
Get Site Terms*The 30-year lease equivalent is shown as the NPV of annual lease payments using a 5–9% discount rate. Tax incentives are presented in accordance with Ukrainian industrial park legislation.
Trust & Legal Foundation
Who stands behind the project — and why that matters
GIZ / Just Transition
The project is being developed within the just transition framework for the Chervonohrad coal region, supported in Ukraine by GIZ. This means international backing, institutional involvement, and the project's alignment with a long-term regional transformation agenda.
Official legal status
The park is officially registered under the Law of Ukraine "On Industrial Parks". It is established for at least 30 years, and the land-use model within the park has the legal foundation provided by Ukrainian legislation.
Regional transformation
The project is aligned with the economic transition of a former coal region: attracting new manufacturing, creating jobs, and building a new tax base rather than continuing to depend on the coal economy. This strengthens its alignment with local and regional development priorities.
Social Impact and Sustainable Development
Potential to create at least 990 direct jobs in the community
Potential to support approximately 1,000 additional jobs in related sectors
A new local tax base supporting the community's economy
Demand for reskilling the workforce of a former coal region for new manufacturing
Diversification of the regional economy and reduced dependence on the coal sector
ESG-compliant operations supported by a closed-loop water supply system and renewable energy readiness
Resident Roadmap
What the path to production launch looks like
1.
Initial enquiry
Short intake form, initial consultation, preliminary assessment of project parameters
2.
Plot selection
Site review, alignment on plot size, configuration, and initial placement terms
3.
Memorandum of intent
Signing of the memorandum of intent, alignment on core placement parameters, launch of the contractual structuring process
4.
Plot technical documentation
Preparation of land-management and technical documentation required for the land lease agreement
5.
Contractual entry
Legal formalisation of plot rights, signing of the land lease agreement, the economic activity agreement (park residency agreement under Ukrainian industrial park legislation), and the operating agreement
6.
Delivery of the production / logistics facility
Design, construction or fit-out, and connection to the park's engineering networks
Commissioning and start of operations
Q&A
Questions & Answers
Manufacturing industries: food and agro-processing, wood processing, furniture, paper products, non-metallic mineral products, fabricated metal products, machinery and equipment, automotive and other transport. Scientific and technical activities are also permitted. Fit with park requirements is confirmed at the application review stage.
Prohibited activities include alcohol, tobacco, fuel, lotteries, gambling, overseas employment, industrial fishing outside Ukrainian jurisdiction, and activities involving narcotic drugs, psychotropic substances, and precursors. Exceptions among excisable goods include biofuel, biocomponents, alternative energy, and certain types of transport.
0% corporate income tax for up to 10 years; exemption from import customs duty and import VAT on new equipment and components; and potential land payment and property tax relief subject to local council resolution.
Profit must be directed toward development of operations within the park — toward equipment, construction, modernisation, or capacity expansion. Dividends are not accrued or paid during the period in which the tax benefit is applied.
New equipment and components with specified customs tariff codes (UKTZED) imported by a park participant for its own use within the park. The equipment must be unused, and no more than 3 years may have elapsed from its manufacture date to the import date.
Equipment is placed on the balance sheet within 20 business days of import, followed by quarterly reporting on its use. Disposal, lease, sublease, transfer to third parties, or any other non-targeted use is not permitted within 5 years of the import date.
Financing comes from multiple sources: state programmes, park management company funds, and resident investment. Specific available capacities, limits, and connection terms are confirmed at the time of negotiations.
The standard format is a long-term lease of up to 30 years with extension options. At a lease rate of 1.5% annually of the normative monetary value, the net present value of a 30-year lease is approximately 15–23% of the plot value.
The land is classified under land use classification code 11.02 (UKTZED): for the placement and operation of primary, ancillary, and auxiliary buildings and structures of processing, manufacturing, and other industrial enterprises.
By signing a land lease agreement or lease of another asset within the park, registering a Ukrainian legal entity or subsidiary within the park, and entering into an economic activity agreement with the park management company.
The park management company supports project delivery: it facilitates interaction with local authorities, coordinates engineering network connections, and can deliver a Build-to-Suit facility to the resident's specifications on request.
The park has access to a local labour pool: approximately 78,400 residents in the community, 6,700 internally displaced persons (IDPs), a technical workforce legacy from the coal sector, two vocational training institutions, and the potential for workforce reskilling to meet production requirements.
The community is home to enterprises in food processing, light industry, wood processing, furniture, and metalworking — forming a basis for production cooperation and the development of local supply chains.
Such instruments are available through MIGA, DFC, and the Ukrainian ECA; specific coverage depends on the investment structure and project parameters.
Ready to discuss the terms for your manufacturing project?
Submit your enquiry — within one business day we will send you personalised placement terms and the technical parameters of available plots.
Or contact us directly:
Thank you for your enquiry! We have received your message and will send you indicative placement terms within one business day.
The project is implemented with the support of Sheptytska City Council and under the Just Transition programme supported by the German government (GIZ).