Dear ladies and gentlemen!

I welcome everybody who is interested in the information on our city investment opportunities and needs, everybody who is aimed at open and honest partner relationships directed on mutually advantageous cooperation

Today the city of Khmelnytskyi is dynamically developed; it has the developed market and industrial infrastructure, big industrial, scientific and technical investment and innovative potential. The city has all necessary components for dynamic and balanced development.

The investment passport of Khmelnytskyi is proposed to attention of business circles of the foreign countries which can be interested in establishing cooperation with the enterprises and organizations of the city. The passport of the city also contains projects of the enterprises, which are ready for cooperation with foreign partners that have opportunities and desire to realize their investment projects.

Today the real potential of the enterprises and organizations of the city is high, but we can’t do without foreign investments, therefore the work on favorable investment climate creation is constantly conducted.

Khmelnytskyi is the best place for your business. The atmosphere necessary for the establishment of the necessary contacts will be the created here for you.

We invite people and organizations, which are interested at expanding their business, ready for partner relationships and for consolidation of efforts in noble purpose of life prosperity of Khmelnytskyi inhabitants and visitors of the city for open cooperation.

 

Mayor Serhii Melnyk


Khmelnytskyi today

Khmelnytskyi is an administrative centre of Khmelnytskyi region. It is located along the Southern Bug river, in the western part of Ukraine. It is the symbolical suburb of the Central and the beginning of the Western Ukraine. Khmelnytskyi region borders on Chernivtsi, Rivne, Ternopil, Zhytomyr and Vinnytsya regions.

Today Khmelnytskyi is dynamically developing. During the years of independence the city became a modern visiting card. There are new blocks of houses in the picturesque places, rebuilt and updated Orthodox churches, Catholic cathedrals, temple constructions of other religions.

Lately the stable increases in industrial goods volumes are achieved. The enterprises are developing new kinds of products, introduce modern technologies. The experience of the small business support by the city authorities is constantly considered as the effective factor of the economic and social questions decision.

Trade and public catering became widely developed spheres. Their development opens big opportunities for attraction of domestic and foreign investments, for new workplaces creation. Introducing market reforms, Khmelnytskyi has proved the ability to modify according to the demands of the time. Today the city has one of the biggest wholesale markets in Ukraine (42 markets function today). The branched network of firm shops of the local enterprises is opened.

The city maintains business and friendly relations with partners from 39 countries of the world. The volume of direct foreign investments into its economy grows.

The food industry is developing in particular fast rates. In the city it is represented by 12 industrial enterprises. Khmelnytskyi food enterprises apply much effort to widen the assortment of production and to improve its quality.

Machine-building is the second industrial branch in its significance which comprises 14 big enterprises. The joint with foreign firms manufactures are established at many enterprises.

In Khmelnytskyi there are 11 industrial enterprises in the following specializations of light industry: sewing, knitted, shoe and fancy leather.

Khmelnytskyi is the cultural center of Podillya. In museums of the city its old and modern cultures are presented. Several theatres work here as well. Municipal chorus, an orchestra and students theatre of models, the participants of which have already received many prestigious awards at the international competitions, cause joy to Khmelnytskyi inhabitants with their inspired art.

Today Khmelnytskyi is an industrial and business centre of Ukraine. Its streets are decorated with solid bank buildings. It is modern architecture, business stylish design. Banks in Khmelnytskyi is a symbol of stability, well-being and reliability.

The local authorities render assistance in the development of private business. The infrastructure of the city is quickly developing. At the comfortable restaurants, cafes and bars it is possible to have tasty meal and well rest.


Geography and natural potential

Khmelnytskyi is the regional center of Khmelnytskyi region which is located in the western part of Ukraine in the middle of Volhynia-Podilska height.

Total area is 8624 hectares.

On 01.01.2007 the population of the city makes 258.3 thousand people.

The average expected life expectancy of the city dweller for men is 65 years, for women is 75 years.

In the city the birth rate is continuing to grow. In 2006 2593 children were born.

Due to its geographical location and natural resources Khmelnytskyi always attracted foreigners, including the Turks, Germans, Hungarians, Poles, Lithuanians, Austrians, Swedes and Russians.

The city has a favorable geographical position. The distance from Khmelnytskyi to Kyiv by the railway is 366 km, by highways is 384 km. The city is crossed by the highways: Kyiv-Lviv, Odessà-Lviv, Chernivtsi-Kyiv. The city has an airport with a concrete runway of 2200 m long; at the airport there is a check point for crossing the state border of Ukraine.

The city has convenient transport connections with Moscow, Prague, Bratislava, Warsaw, Budapest, Belgrade and all biggest cities of Ukraine.

The city is crossed by one of the longest rivers of Ukraine – the Southern Bug.

The climate of the city is moderate-continental. The average temperature of the air in the warmest month (July) is +200C, +220C and in the coldest month (January) is -50C, -60C. The maximal temperature in summer reaches +360C, +380C, the minimal temperature in winter is -240C, -300C. The average annual temperature is +70C, +80C. The average annual amount of precipitations is -510mm, -580mm. The most widespread ground making layers are the following overburden: loess and loess-type rocks.

The ground-climatic conditions of the city are favorable for cultivation of winter wheat and rye, sugar beet, potato and other crops and for the development of gardening and vegetable growing.

On the territory of the city there is vegetation of two geobotanical zones of Ukraine: Polissya and forest-steppe.

In the region and in the city there are many rock products, particularly building materials: limestone, plaster, chalk, tripoli powder, crystal layers (granites, gneisses), sand and sandstones, and also graphite, saponite, kaolin, phosphorite, lithographic stone, roofing slate. There are deposits of peat and bitumen shale oil.

 

 


Industry

             The industry of the city is represented with 88 enterprises, which produce food, chemical, machine-building, metal working, light industry, building materials, pulp-and-paper and publishing products, etc.

             The volume of the realized industrial output (works, services) in sale prices in 2006 was almost 2 mld hrn., it makes 33.6 % of the total output in the region. The volume of the realized industrial output for 1 person in the city made
7.7 thousand hrn.

The following enterprises have increased their volumes of industrial production: “Khekro Pet LTD.”, OJSC "Ukrelektroaparat", OJSC “JSC Advis”, "Proskuriv-termo" LTD., "Neil" LTD., CJSC “Khmelnytskyi maslosyrbaza”, CJSC “Khmelnytskyi macaroni factory”, "Interprodservice" LTD., "Priskuriv-agro" LTD., CJSC "Khmelnytsklegprom", SE "Alma-Shkirgalantereya", "Litma" LTD., CE “Factory of building materials”, OJSC "Khmelnytskzalizobeton", OJSC “Plant of building materials ”.

            The industrial enterprises introduce their own system of quality to meet the state standard ISO 9001, among them OJSC "Ukrelektroaparat", SE "Novator",
PE "Vud", CJSC “Khmelnytskyi maslosyrbaza”, CJSC "Interlit", “Tin Impeks” LTD., SE "Alma-Shkirgalantereya", “Khekro Pet LTD.”.

                        The following enterprises increase the volumes of production due to introduction of new kinds of competitive production and new technologies: the State enterprise "Novator" - they started manufacturing of locomotive radio station, color TVs, electronic counters, etc.; it enabled to increase manufacturing volumes and to create new workplaces.; OJSC "Ukrelektroaparat" - they started manufacturing of new transformer modifications and transformer substation utility; OJSC "Temp" - they started operating a line of circuit-boards mechanization, a line of circuit-boards chemical and galvanic metallization.

             OJSC "Vzuteks" introduced a new bite technology and new footwear models. CJSC "Khmelnytsklegprom" introduced an automated process of fabrics laying and cutting. Among the enterprises of building industry in the city the powerful place in the rates of industrial output volumes increase is occupied by CE “Factory of building materials”, OJSC "Khmelnytskzalizobeton", OJSC “Plant of building materials”. The enterprise of the chemical industry “Khekro Pet LTD.” occupies a sufficient position in the total volumes of industrial production of the city.

 

Investment directions of Khmelnytskyi development

¹

 

Investment direction of the development

 

 

Needs in investments,

mln USD

 

1

Industry

including:

-      food industry and agricultural products processing

-      light industry

-      manufacture of wood and wood products

-      pulp-and-paper, polygraphic industry; publishing

-      chemical and petrochemical industry

-      manufacture of other nonmetallic mineral products (building materials, glass products)

-      metallurgy and metal processing

-      machine-building

-     manufacture and distribution of electric power, gas and water

 

 

 

 

5

3

10

 

2

25

 

10

10

25

 

120

2

Transport and communication

 

10

3

Building

10

4

Tourist and recreational sphere

5

5

Housing and communal services

15

6

Trade and household services

5

Total:

255

 

Trade

One of the most widespread fields of activity in the city is wholesale and retail trade.

The consumer market is characterized by high level of foodstuffs and nonfoods saturation, stable provision, the lack of goods shortage. The quality of services for people has improved.

The significant place in satisfaction of the population in goods belongs to the markets. The foodstuffs and nonfoods markets are gradually transformed into the trading-service complexes.

The main task in the sphere of trade, public catering and services is further development of home market of consumer goods and services, formation of the effective civilized trading-marketing infrastructure, capable to provide a high level of servicing people according to their needs. We continue to bring order to trading network, uncivilized forms of trade disappear. The branched network of modern supermarkets, trade houses and centers, specialized public catering establishments and services is formed.

On 01.01.2007 there was the following number of retail trade enterprises in the city:

-      Shops in foodstuffs trade - 598; 

-      Shops in nonfoods trade - 634;

-      Shopping centers - 16.

Restaurants - 440.

Markets - 42.

Objects of small-wholesale trade:

-      Kiosks - 765;

-      Departments - 765;

-      Tents, stands - 183.

Consumer services establishments - 266.

The number of the workplaces created in 2006 - 3110.

 

Small business

             Business is one of the effective factors to decide such economic and social problems as structural reorganization of economy, formation of economic and social basis for acceleration of goods and services saturation at the market, development of competition, ensuring of people employment. Small business is the sector which dynamically develops and strengthens the economy of the city.

             According to the united state register on 01.01.2007 the total number of legal persons makes 6275 units and 26277 physical persons. In 2006 there were registered 4875 subjects of business activity, including 410 legal persons and 4465 physical persons; there were canceled 625 subjects of business activity, including 189 legal persons and 436 physical persons.

About half of small enterprises functions in the sphere of trade, services and restaurant business.

Small business plays a significant role in replenishing budgets of all levels, in particular of the city budget. The total amount of takings from business structures by certain articles to the general fund takings of the city budget makes 34.6 %.

7583 subjects of business activity work using the simplified taxation system including 1399 legal persons and 5611 physical persons. The total sum of takings in the budget from the subjects of business activity who worked using the simplified taxation system made 14.5 mln. hrn.

            19 credit unions carry out their activity in the city; they give credits for the development of small business. Together with the Chamber of Commerce and Industry the exhibitions-fairs with the participation of the subjects of business activity are carried out.

 

The enterprises (legal persons) of the city

Sphere of the economy

Density of the enterprises to all enterprises of the city, %

Wholesale and retail trade

39.1

Industry

18.3

Operations with the real estate, rent services

17.5

Building

10.2

Transport and communication

4.4

Collective, public and personal services

2.9

Hotels and restaurants

2.7

Public health services and the social help

1.6

Other spheres of activity

3.6

 

Tourism

Khmelnytskyi is a very interesting and hospitable city which is always glad to welcome tourists. On the territory of the city there is a future prospect for the development of certain kinds of tourism: youth, childre