Electronics Production | August 21, 2007
Transcarpathia new hot EMS<br>destination in Ukraine
evertiq.com has earlier report that Western Ukraine is trying to become Europe's answer to the challenge of cheap Chinese factories despite bureaucratic red tape and political turmoil. Companies like Jabil and Flextronics are investing in this area.
Zakarpatye region is divided into 18 administrative territorial units, including 5 regional administrative centers (Uzhgorod, Mukachevo, Khust, Beregovo, and Chop), and 13 districts.This province is based in the Uzhgorod area and the province is known as Transcarpathia. Jabil is building a 280,000-square-foot factory that will employ 2,400. The company expects to invest $90 million in the region and produce 300,000 cell phones per week. EMS provider Flextronics is building a plant in the town called Mukachevo. The investment is expected to be worth $ 29 million. Zakarpatye region became a focus of attention for such well-known transnational companies like Volkswagen, Skoda, Audi , Fischer, Philips, Hewlett Packard, Flextronics, TDK, Leoni, Delphi, Yazaki, Jabil, Le-Go, Henkel, and others, which are already running their investment projects in the region. The area in Western Ukraine is known for its poverty and high unemployment. The region wants to attract foreign companies to invest in the region by escaping rising wages, taxes and real estate costs in neighboring countries. Analysis of the region's economic development in the last few years proves sufficient influence of investments upon its growing development rates. As of January 1, 2007, according to data of the statistics department, the region has 773 enterprises running with direct foreign investments. In general, over the period of foreign investing the region received USD 298.2 mn of direct foreign investments. Per capita figure makes USD 239.7 and by this indicator the region ranks ninth among all regions of Ukraine.