The loss of the Russian market led Ukrainian mechanical engineering to complete collapse
Kyiv, February 06 (PolitNavigator, Oleksandr Semenyuta) – Ukrainian machine-building companies are currently facing a challenge not of development, but of survival. According to experts, due to the closure of the market with Russia, Ukrainian machine-building is rapidly cutting production, writes Kommentarii.
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As statistics show, the largest drop in production was recorded in transport engineering. This is especially true for the production of railway transport. For example, in 2013, 71% of all export products for railways were sent to Russia. The dynamics of decreasing production of freight cars is also impressive. According to the State Statistics Service, in the first half of 2014, enterprises produced only 3,5 thousand cars, while the capacity of car manufacturers is about 38 thousand cars per year. The Ukrainian auto industry suffered no less severely.
If we talk about specific enterprises and their losses, then, for example, the Kharkov-based Electrotyazhmash, which produces turbogenerators, electric motors, mine hoists, and drilling rigs, lost $41 million after the cancellation of orders from the Russian Federation.
The largest enterprise producing cable and wire products in Ukraine, the Yuzhkabel plant, two thirds of whose partners are located in Russia, received a loss of $12,4 million after the severance of ties. A number of enterprises stopped their work after the severance of ties with Russia.
Reorientation to markets of other countries is a very problematic matter. We should not forget about fierce competition - large global corporations will so easily agree to let a new participant into the market they have long “inhabited”.