Volodymyr I. Logvynenko

Chairman Donetsk Regional State Administration

Dear friends!

I am sincerely greeting You on the pages of this unique edition «Business Image of Ukraine. Achievements. Experience. Recognition». The edition actively promotes expansion of presentation of international community about achievements and resources, about successes and potential of our young state in all spheres of vital functions.

I say without exaggeration that Donetsk Region is unique alloy of labour and cultural traditions, interlacement of human fates, accumulated experience of history and inheritance of many generations converted Donetsk steppe in mighty, developed industrial and cultural center.

And today, when social-economic development of Ukraine has been swiftly progressing leading best international achievements and standards, the changes in the structure of production complex of Donetsk Region are clearly observed. It confidently goes a perspective way, oriented on hi-tech production, introduction of newest achievements of science and technology.

Because of positive dynamics of industrial production volume growth for the last years, Donetsk Region becomes all more attractive for investors of many countries of the world. The presence of 11 diplomatic representative offices in Donetsk proves it.

Year of 2007 is anniversary for Donetsk Region: it will celebrate 75th anniversary from the day of foundation. I hope that necessary and interesting information on the pages of this edition about best companies, organizations, educational establishments and structures of Donbas will promote further setting of business relations in Ukraine and abroad, will form good image of the region. And our future common ideas and projects will become the basis of prosperity and stability.

Yours sincerely,

Volodymyr Logvynenko

Donetsk Region situated in the south-eastern part of Ukraine was founded in 1932. On the east its boundaries partly coincide with frontiers of Ukraine and Russian Federation (Rostov Region). On the south the region is washed by the Sea of Azov. On the west it borders upon Zaporizhzhya Region, on the north-west – upon Dnipropetrovs'k Region, on the north – upon Kharkiv Region and on the north-west – upon Lugansk Region.

4,58 mln. persons (10% population of Ukraine) live in the region, including 4,14 mln. persons in cities (90,4%).

The administrative-territorial division of the region consists of 52 cities, including 28 cities of regional submission, 17 rural districts, 81 settlement councils, 131 settlements of urban type, 246 settlements and 878 villages.

The region is rich in fertile black earths. It has various mineral bases. By types and volume of mining the region is one of the diversified and well-developed in Ukraine. Among minerals there are anthracite coal, rock salt, limestone, fire-clays, cement raw material, chalk and gypsum – almost 50 kinds. The presence in the region of own fuel-energy and mineral resources, closeness of iron-ore deposits of the Kryvy Rih basin and access to the sea caused forming of powerful industrial complex with the high concentration of sectors of heavy industry, creation of well-developed production, scientific and social infrastructure, high degree of urbanization.

The high rates of growth of industrial production are achieved in machine-building (3 times), food industry (2,5 times), metallurgy and metal working (41,9%), production of building materials and glass (51%), extraction of non-energy materials (52,9%), chemical and petrochemical industry (33,8%), which share in the general volume of sold products makes 73%.

Passing ahead growth of production in machine-building provides positive changes in the structure of industry. 52,7% of sold industrial products meets the international quality standards.

Due to activation of innovation activity the industrial enterprises mastered 350 types of equipment, introduced 647 progressive technological processes, including 286 – low-waste and resource efficiency.

In the industrial structure the most share is taken by metallurgy – 48,9%, machine-building – 9,9%, production and distribution of electric power – 9,9%, coal industry – 8,5%, chemical – 4,6%, light – 0,2% and food industry – 5,5%.

Over 75 enterprises operate in the metallurgical industry: 11 iron and steel works and plants, 39 metal working enterprises, pipe plant, eight by-coke product plants and 13 heat-resistant enterprises where almost 20% of fixed assets of the industry and 25% of industrial-production personnel is concentrated.

The most powerful enterprises of ferrous metallurgy are follows as OJSC «Illich Iron and Steel Works of Mariupol», OJSC «Iron and Steel Works «Azovstal», OJSC «Donetsk Iron and Steel Works», CJSC «Mini-Metallurgical Plant «Isteel» (Ukraine) and OJSC «Khartsyzsk Tube Plant».

The non-ferrous metallurgy in the region is represented by such enterprises as CJSC «Svynets», OJSC «Toreztverdosplav» (Toroz) and OJSC «Artemivsk Non-Ferrous Metals Processing Plant» (OJSC «AZOCM») (Artemivsk).

The by-product coke enterprises produce one half of Ukrainian volumes of coke. Among it there are OJSC «Avdiyivka By-Product Coke Plant» ensuring one third of coke in Donetsk Region.

Almost 75% of heat-resistant products in Ukraine are made in Donetsk Region.

One of the biggest flux extraction enterprises is OJSC «Dokuchaevsky Flux Dolomite Integrated Works» manufacturing limestone and dolomite for metallurgical industry.

The machine builders of Donetsk Region successfully compete with foreign companies. The regional machine-building complex makes 200 enterprises and 11 branch institutes.

The leader of machine-building are joint-stock companies «Novokramatorsky Machine Works», «Azovmash», «Starokramatorsky Machine Works» and «Energomashspetsstal» making over 60% of regional machine-building products.

During the last five years the production of household appliances got rapid development rates in the region; it is provided by CJSC «Group «NORD» (JSC «Nord», Donbas Plus Ltd, Donetsk Plant of Gas and Electrical Apparatus Ltd), OJSC «Druzhkivka Plant of Gas Apparatus», OJSC «Elektropobutprylad» (Mariupol) and CJSC «Mashzavod» (Novogrodivka).

The regional coal industry is 84 mines, 22 small enterprises and 28 dressing factories. The production capacity of coal mining enterprises is 55 mln. tons a year. The industry is one of the leading sectors.

The production of electric power in Donetsk Region is provided by seven thermal power stations with the general capacity of 9 300 MW. Donbas part of the Grid is one of the biggest in Ukraine; its share is 12% of electric power produced in the country and to 30% – in thermal power stations of Ukraine.

The increase of volumes of production in regional chemical and petrochemical industry is 33,8%. The region takes one of the leading places in Ukraine on chemical production and ensures almost 25% of national output of mineral fertilizers, 30% of synthetic ammonia and sulphuric acid. Over 50% of regional chemical products are exported. The competitiveness of products on the world market is provided by high quality and wide range.

The building complex remains one of the powerful in Ukraine and by volumes of building-assembling works it takes second place in Ukraine after Kyiv. The leading enterprises of building industry are Doncement Ltd, Knauf Gypsum Donbas Ltd and Altkom Ltd.

There are 2 046 300 ha of lands in the agriculture. During realization of basic directions of agrarian reform 1 460 000 ha of lands were shared; 234 100 citizens obtained certificates of land plot (share). For the last few years the production of food industry increased by 2,5 times. The production of sausages grew by 2,4 times, flour – 16,3%, raw oil – 2,6 times, beer – 1,9 times, salt – 1,8 times and others.

The enterprises of food industry reconstructed material and technical base, introduced 15 newest technologies, made re-orientation of productions on making competitive goods.

The quality management system meeting international standards was introduced in CJSC «Artemivsk Factory of Sparkling Wines», CJSC «AVK», CJSC «Younkers», OJSC «Donetsk Loaf-Pastry Factory», CJSC PA «Konti» and SPA «Artemsil».

For the last few years the foreign trade turnover of commodities and service in the region increased by 2,8 times, export – 3 times and import – 2,4 times, positive balance – 3,5 times. By volume of foreign trade turnover the region takes second place in Ukraine and by export – first place.

The products of enterprises and organizations are exported to 135 countries of the world and import operations are carried out with partners from 97 countries.

By volume of investments in the fixed assets the region takes second place in Ukraine. The priority sphere for investing is industry. On the beginning of 2007 it was attracted USD 2230,2 mln. in the region by all investment projects. The biggest investors are Cyprus, USA, Great Britain, Germany, Italy and Austria.

The prospects of regional development are determined by Strategy of Economic and Social Development of Donetsk Region till 2015 approved by Decision of the regional council.

Donetsk Region is a land of high science and culture. 15 establishments of the National Academy of Sciences of Ukraine, almost 80 research, project-design and technological organizations function in the region.

1153 preschool educational establishments and 112 higher educational establishments successfully operate. The leading place is taken by Donetsk National Technical University, Donetsk State Medical University, Donetsk State University of Economics and Trade, Donbas National Academy of Construction and Architecture.

The system of health protection is represented by wide network of regional, urban and district hospitals, diagnostic centers, specialized clinics and out-patients.

They carefully keep and increase ancient cultural traditions of Donetsk land. From the beginning of existence till now Donetsk Region granted to the world and educated many thousand talented sportsmen.