Ukraine’s large manufacturing base was historically focused on heavy industry. Machine production continues to be one of the key growth drivers of the Ukrainian economy. Ukrainian light machinery industry includes turbo propellers, gas turbines, pumps and insulated wires and cables for vehicles. The heavy machinery industry includes vehicles, railway and tramway locomotives and parts and components.

The industrial machinery sector in Ukraine is dominated by an extensive network of machine-building companies that produce mining equipment, railway rolling stock, farm equipment, turbo propellers, gas turbines, machine tools, aircraft engines and instrumentation for light industry and the food sector.

Ukraine has both significant reserves of raw materials and a developed metallurgy sector. Given this combination, it is well placed to meet high levels of production demand. Ukraine is well supplied with a highly trained labour force. Around 10,000 students graduate from machine-building faculties at domestic universities and colleges every year.

Despite the full-scale war in Ukraine, the machinery manufacturing sector plays an important role in the country's exports, accounting for 8% of the total export volume in 2023.

Ukraine has both significant reserves of raw materials and a developed metallurgy sector. Given this combination, it is well placed to meet high levels of production demand. Ukraine is well supplied with a highly trained labour force. Around 10,000 students graduate from machine-building faculties at domestic universities and colleges every year.

Ukraine’s well-developed transport infrastructure allows easy access to the large export markets of Europe, Asia and the Middle East. In 2020 Ukraine exported USD 5.4 billion of machinery products which account for 11% of all Ukrainian export of products.

Ukraine has a potential to become a regional leader in the field of complex and science-intensive engineering services such as:

industrial automation and complex engineering;
programming in the field of industrial high-tech;
industrial design (electrical, mechanical, electronic etc.).

Interests of the Ukrainian industrial automation community are represented by the Association of Industrial Automation of Ukraine (APPAU) which includes 54 members: manufacturers of industrial automation products, control system integrators and engineering companies, IT companies and IT integrators, machine-building enterprises and local Universities. In 2016 Association created the national movement «Industry 4.0 in Ukraine», that unites more than 80 members with the aim to promote and educate the local market in 4.0 technologies (IoT, big data, A.I., robotics, additive manufacturing, Vr/AR).

Aircraft and spacecraft

Ukraine is one of the few countries to cover the full spectrum of design, production and operating activities for advanced civil, military and cargo aircraft, as well as supplying space technology. It is also an important supplier of turbine engines for aircraft, helicopters and aerospace industries worldwide.

79 enterprises within the sector
21.7% added value
48,000 employees
USD 689 million: value of products sold
169 launches of rockets built in collaboration with Ukrainian companies

Ukraine has a long and unique history in the field of aerospace technology, going back to the early decades of the ‘space race’ in the 20th century. Ukraine is home to several internationally renowned aerospace design and production facilities which trace their roots back to the early pioneering days of rocket science and aviation technology.

Examples of aircraft and spacecraft manufacturing:

cargo and passenger aircrafts
aircraft parts
gas turbine engines for aircraft and helicopters
industrial gas turbine installations

Stakeholders

The Antonov Design Bureau is best known for designing and building the world’s largest transport plane (the AN-225 Mriya). It also designed a number of mid-range commercial and military transport aircraft.
The Pivdenne (Yuzhnoye) Design Bureau is a designer of satellites and rockets. Efforts of the bureau and partner organizations have resulted in development of nine types of space launch vehicles atop of which more than 1100 spacecraft were orbited as a result of about 500 launches.
Pivdenmash (Yuzhmash) produces spacecraft, launch vehicles (rockets), liquid-propellant rockets, landing gears, castings, forgings and other industrial products.
The Ivchenko-Progress Aero-engine Design Bureau which scope of activities include design, manufacture of prototypes and support of prototype flight tests; design of aero engine derivatives for civil and defense applications; maintenance and repair of aero engines and other.
Motor Sich is one of the leading enterprises in the world manufacturing engines for airplanes and helicopters as well as industrial gas turbine installations.

Agricultural machinery and technology

Economic and geopolitical factors have a significant impact on agricultural machinery manufacturing in Ukraine. In 2023, the export volume of agricultural machinery from Ukraine amounted to $69.1 million.

In 2023, the most prominent exports from Ukraine were:

HS Code 8428 90: Other equipment - $8.5 million USD;
HS Code 8428 39: Other machines and devices for lifting, moving, loading, or unloading: others - $7.5 million USD;
HS Code 8432 39: Seeders, planters, and transplanting machines: others - $7.4 million USD;
HS Code 8432 29: Harrows, cultivators, hoes, and weeders: others - $6.4 million USD;
HS Code 8432 90: Parts of agricultural machines - $6 million USD;
HS Code 8433 90: Parts of machines or mechanisms for harvesting or threshing agricultural crops - $5.9 million USD.

A significant reduction in agricultural machinery exports in the first half of 2023 indicates the negative impact of both internal and external challenges on the Ukrainian economy. The most affected segments were mowers and potato harvesters, where there was nearly a 60% decrease in export volumes. Only plows showed positive dynamics, with an increase in the number of exported units, although the value decreased significantly due to a rise in the share of cheaper products.

For more details about the sector please see Analysis of the agricultural machinery market in the context of a full-scale war.

Stakeholders

DLG Ukraine brings together Ukrainian manufacturers of agricultural machinery and other agricultural product and service providers to build an alliance of exporters and to promote their export activities through trade events and training. DLG Ukraine arranges for its members to exhibit their goods at agricultural trade fairs in the EU, Central Asia and Africa.

The Ukragromash Association is part of the Federation of Employers of Ukraine. It represents machine-building manufacturers in negotiations with the Ukrainian Government and successfully lobbied for the introduction of a 25% subsidy for farmers buying domestically produced agricultural machinery and equipment.

Railway machinery

Railway transport plays a decisive role in the transport sector of Ukraine. With the beginning of the full-scale Russian invasion, the importance of rail transport increased due to the blockade of sea transport. The railway also provides transportation of goods for the needs of the Armed Forces, humanitarian goods, and evacuation of the population.

Ukrainian railway engineering products are exported to nearly 70 countries worldwide.

The highest export potential lies in freight wagons, spare parts (namely axles, wheelsets, wheels, and their components), and containers.

In 2019 Ukraine exported the largest volume of railway machinery products: $545,4 millions. Over the next 2 years, export was decreasing by 23-30% yearly. With the start of the full-scale war in 2022 export volumes decreased by almost 50% compared to previous 2021.

Nevertheless in 2023 export volumes start to recover and reached $243 million (+65% increase compared to 2022)

Main product groups by export volume in 2023:

Parts for railway locomotives and tram cars or rolling stock (HS Code 8607): The export volumes of this group increased by 22%, remaining the largest product group.
Non-self-propelled freight cars (HS Code 8606.
Fixed railway and tramway track equipment (HS Code 8608).
Containers for transport by one or more modes of transport (HS Code 8609).
Self-propelled and non-self-propelled machines for the repair and maintenance of railway or tram tracks (HS Code 8604): This commodity group emerged as new in 2023, demonstrating the industry’s potential for adaptation and innovation.

During 2021-2023 overall Ukraine exported to 68 countries.

In 2023 top-5 destination countries for Ukrainian export of railway products are Slovakia, Bulgaria, Germany, France and Turkey.

In 2023 most of the top-25 partner countries significantly increased import of Ukrainian railway machinery, with comparison to the period before the full-scale war period (2021).

For example:

Spain increased import from $0,11 millions (2021) to $3,84 millions (2023) in 34,9 times
Slovakia from $17,23 millions (2021) to $49,5 millions (2023) in 2,8 times
Germany from $12,23 millions (2021) to $31,09 millions (2023) in 2,5 times

For more details about the sector please see Analysis of the railway equipment market in the context of a full-scale war.

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