Ukraine is becoming a promising location for industrial investment – even during wartime. Two key trends are helping businesses launch and scale quickly: industrial parks and modular construction. Used together, they allow companies to set up operations faster, with lower costs and fewer risks.

Since the 2022 invasion, over 1,500 companies in Ukraine have had to relocate, creating a strong demand for ready-to-use industrial spaces. In response, the government introduced new laws and funding to support the development of industrial parks. At the same time, modular construction has become a practical solution – helping businesses launch operations faster, with lower risk and upfront costs.

This article continues our exploration of Ukraine’s investment landscape. For an overview of the State Support for Large-Scale Investment Projects and the Diia.City virtual economic zone, please see our previous article here.

What Are Industrial Parks?

An industrial park is a dedicated area for manufacturing, logistics, or R&D, with ready-made infrastructure such as electricity, roads, water, internet, and access to transport routes (highways, railways, ports). Businesses can move in and start working faster.

Industrial parks are supported by the state and local governments. They offer:

• 0% VAT on imported equipment;
• Up to 10 years of corporate income tax exemption (with reinvestment);
• Discounted land and property taxes;
• Help with building infrastructure like roads or utilities;
• No tender needed to lease state or municipal land.

To join an industrial park in Ukraine, a company enters into an agreement with the park operator and must operate within eligible sectors. According to Ukrainian law, permitted activities in industrial parks include:

• Manufacturing and processing;
• Industrial and municipal waste recycling;
• Renewable energy production and energy storage;
• Information technology and telecommunications;
• Scientific and technical research and development (R&D).

However, industrial parks are not limited to manufacturing. They may also host:

• Offices of resident companies, park management, banks, and service firms;
• Educational institutions ranging from kindergartens to universities;
• Laboratories, business accelerators, and science parks;
• Conference halls and event spaces;
• Warehousing and logistics facilities;
• Essential infrastructure, including electricity, water supply, and communications;
• Fire stations, green spaces, and waste management facilities.

Certain activities are prohibited within industrial parks, including the production of excise goods, with exceptions for the manufacture of biofuels, biocomponents, energy from renewable sources, passenger cars, car bodies, trailers and semi-trailers, motorcycles, vehicles designed to transport 10 or more people, and freight vehicles. Additionally, activities requiring licenses under Ukrainian law - such as gambling, security services, alcohol, and tobacco production - are not permitted.

As of 11 March 2025, Ukraine has officially registered 100 industrial parks, a significant increase from 31 in 2024. Among them, more than 21 are fully operational - with built infrastructure, management companies, and resident businesses on site. International players like Unilever, InTiCa Systems, and Peikko are already investing in Ukrainian parks, alongside a growing number of local manufacturers.

See the full list of industrial parks here.

Modular Production: Fast, Scalable, and Cost-Effective

Modular production refers to the use of prefabricated building units (modules) for constructing factories, warehouses, R&D centers, office spaces, and even temporary housing or accommodation facilities. This approach brings several advantages:

• Construction timelines are reduced by 2–3 times;
• Capital expenditures are lower than traditional buildings;
• Sites can be expanded or reconfigured easily;
• Companies can test new locations with minimal risk.

In Ukraine, modular facilities are already being implemented in regions like Kyiv, Vinnytsia, Lviv, Rivne, and other regions. They’re particularly well-suited for:

• Light manufacturing;
• Food and agricultural processing;
• Warehousing and logistics;
• IT hubs and research centers.

A practical example is the Universal Industry industrial park in Kyiv region (Rokytne village), where the management company offers both ready-to-use facilities and land plots with modular construction options tailored to investor needs.

For businesses entering industrial parks, modular construction often means they can begin operations within months, rather than years – a critical factor in today’s uncertain environment.

While the technical and operational benefits are clear, the successful implementation of modular production relies on the effective management of legal and regulatory matters – including contract drafting and negotiation, land use rights, licensing, tax and customs implications, and broader compliance with applicable laws. This also involves a thorough review of permits and licenses, as well as verifying the reliability of business partners through regular due diligence and Know-Your-Customer (KYC) procedures. In practice, legal requirements may vary by sector. For example:

• Food and agricultural facilities typically require sanitary permits, HACCP certification, and environmental impact assessments;
• IT and R&D centers must ensure compliance with data protection laws and may benefit from Diia.City residency;
• Logistics hubs need clear zoning status for warehousing and may require special transport or customs licenses;
• Light industry must comply with occupational safety, fire protection, and waste management rules.

Identifying the legal requirements early – and ensuring clear documentation and verified partners – helps build a solid legal foundation and maintain compliance throughout the project.

A Powerful Synergy

Industrial parks offer location and infrastructure. Modular production brings speed and flexibility. Together, they create powerful conditions for businesses to scale efficiently - with fewer delays, lower costs, and reduced risks.

Even during wartime, Ukraine is proving its potential as a hub for manufacturing and innovation - not only for rebuilding, but for long-term growth. These tools make it significantly easier for companies to enter the market and expand operations in a streamlined, cost-effective way.

Looking ahead, industries such as automotive components, electronics, renewable energy, agri-processing, and medtech are showing growing interest in fast-deployment solutions. As industrial parks continue to evolve, we can expect more integration of smart technologies, sustainable construction, and localized supply chains - further strengthening Ukraine’s position as a competitive destination for industrial investment.