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 12 July 2001 The Sum of Investments to Donetsk SEZ and TPD Has Exceeded 1 bln. USD

Session of the Board of SEZ and TPD

3 years have passed since the day when the President of Ukraine the Law "About Special Economic Zones and Special Mode of Investment Activity in the Donetsk Region". By the 3 years anniversary of the passing of this law, the total sum of the investments had exceeded 1 bln.USD, and to be more exact made up 1 bln 65 mln USD or 5.8 bln. UAH.

All projects are connected mainly with the full or partial modernization of the 49 working enterprises and with the creation of 56 new manufactures.

As the Chairman of Board on Special Economic Zones and Special Mode of Investment Activity V.F. Yanukovich said, the work of the SEZ and TPD in Donetsk region is the economic reform in action. And the establishment of the special mode of investment activity is not an end in itself, but the mechanism of the economic recovery of the region.

The investment process is being actively developed mainly in the basic branches of industry - 67 projects to the sum of 3.4 bln UAH (in metallurgy- 13, coal industry - 14, oil-refining industry - 1, chemical industry- 22, machine-building - 14, building industry - 3 projects). In the light and food industry 38 projects to the sum of 1141 mln. UAH were approved, in agriculture - 10 projects to the sum of 122 mln. UAH., in the transport and communication sector - 15 to the sum of 974 mln. UAH., in the municipal economy - 4 to the sum of 158 mln. UAH., in health protection sector - 1 project to the sum of 7 mln. UAH. Totally there are 22 branches of industry getting all the benefits from the investment projects realization.

Among the approved investments projects there are 64 projects with the participation of the foreign investors, their capital makes up 380.5 mln USD or 35.7%. Considerable assets are invested into the economy of the region by the companies of Great Britain (67.1 mln. USD), USA (77.4), Germany (49.9), Netherlands (37.0), Switzerland (31.1), Austria (29.5), Sweden (18.6 mln. USD), and also by the companies of Italy, Syria, Estonia and other countries (totally 22 countries).

Altogether, in the network of 62 projects to the sum of 2.2 bln. UAH. building and assembly works were completed and the production output settled. From the moment of putting the new facilities into operation the total volume of the production made up 5 bln. UAH.

The range of products produced in the network of the investment projects is rather wide. From the beginning of the projects realization there were produced 5.8 mln. tons of coal and processed products; 783 ths. tons of coke; 390 ths tons of steel and rolling; anchor timbering to the sum of 2 mln. UAH.; polystyrene, carbamide, ammonium nitrate, and other chemical production to the sum of 490 mln. UAH.; consumer goods, including food and medical products, etc.

The production is competitive, 26% are exported.

The growth of the industrial production reached in the region almost on 60% is provided by the production output in the network of the Law "About Special Economic Zones and Special Mode of Investment Activity in the Donetsk Region".

The investment projects with the participation of foreign investors are paid particular attention to, and all tasks concerned are being carried out at fast pace.

Donetsk metallurgical plant, Mariupol metallurgical plant "Azovstal", and the metallurgical plant in Enakievo attracted the investments from Great Britain, Austria, Switzerland to the sum of 477 mln. UAH. (86.7 mln. USD) for the reconstruction and modernization of the operating workshops.

The new plant "Carbo and Lining" is functioning in Makeevka. It produces anchor shafts and chemical ampoules for the lining of mine tunnels. The production is organized with the participation of German company "Carbotech".

The plant on sunflower-seed oil production has been working successfully for 2 years. This plant was built with the participation of the investment capital of American company "Kargill" which invested 203 mln. UAH. ($ 37 mln. USA).

The elevator built on the territory of Volnovahski region due to the American company's investments was put into the exploitation.


Session of the Board of SEZ and TPD

At the session of the Board of SEZ there were approved 7 new investment projects to the sum of about 209 mln USD.

The metallurgical plant "Azovstal" has defended a large project. It will be the main investor and the customer of the works on construction of sea cargo-handling complex on the territory of the SEZ "Azov". The financial director of the Open Stock Company "Azovstal" M.Ochkas marked that the cost of the investment project "Construction and Exploitation of the Sea Cargo-handling Complex "Azovstal"" is up to 93.6mln. USD. Also at the Board there were approved the following investment projects:

· "Azovskaya Oil Company" Ltd (Mariupol) - "Building and exploitation of the oil-refining plant on the territory of Mariupol" - 63.7 mln. USD

· State holding company "Krasnolimanskaya" PC (Krasnoarmeisk) - "Storage and processing of the reserves of coal-bed M24 of the block being built in the mine "Krasnolimanskaya"" - 37.3 mln. USD

· "Isida" Ltd (Gorlovka) - "Reconstruction and modernization of by-product coke production facilities" - 5.9 mln. USD

· "Gorlovski mashinostroitel" PC - "Organization of the production of coal-mining equipment" - 3.5 mln. USD

· "Forte- Ukraine" Ltd (Artemovsk) - "Organization of the production on furniture release" - 1.6 mln. USD

· "Donbass Import-Export Co" (Donetsk) - "Modernization of the production on processing of non-ferrous waste" - 1.04 mln. USD


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