A new industrial park, Phoenix – Valley of Innovation, is set to be built in the city of Drohobych, Lviv region. The Cabinet of Ministers of Ukraine approved the inclusion of the project in the State Register of Industrial Parks on October 29. The initiative is viewed as an important step toward stimulating regional development and strengthening the industrial potential of western Ukraine.
The total investment in construction amounts to ₴474.3 million (approximately $11.3 million). The project will be financed through multiple sources: ₴200 million will come from loans, ₴155 million from potential park participants, ₴60 million from the state within a support program, and ₴59.3 million will be contributed by the project initiator.
The park’s initiator is Phoenix – Valley of Innovation LLC, owned by Dnipro-based entrepreneur Oleksandr Redka, head of the Phoenix Group of Companies. The industrial park will occupy a 11.12-hectare industrial site. The area will host manufacturing facilities for construction materials, wood products, household appliances, agricultural machinery and equipment, as well as enterprises in the chemical industry and renewable energy sectors.
According to the Ministry of Economy, the project’s implementation will create up to 500 new jobs, promote the development of the processing industry, enhance regional investment attractiveness, and open new export opportunities for Ukrainian manufacturers. As of today, Ukraine has 106 registered industrial parks, 17 of which are located in the Lviv region.
Data from the Organisation for Economic Co-operation and Development (OECD) show that manufacturing accounts for 10.3% of Ukraine’s GDP. The Ministry of Economy forecasts that the expansion of the industrial park network could double this share within the next decade.
The ministry also notes that each hectare of an industrial park can generate up to 50 jobs, while every hryvnia of state investment attracts an average of 5–6 hryvnias of private capital. Moreover, one dollar of private investment yields around $19 in taxes and fees over five years, making such projects a highly effective driver of economic growth.
