In 2020, Alexander Yaroslavsky's DCH group intends to begin the project of redeveloping the territory of the Kharkiv Tractor Plant (KhTP) into a multifunctional business ecosystem called Ecopolis KhTP. It will include five phases of implementation and is expected to be completed before 2033, the All-Ukrainian Association of Industrial parks reports on Facebook.
“The project coverage area is more than 1 million people. All the necessary communications have been made to the site, including railway lines. Ecopolis-KhTP will consist of an industrial park, a tech park, a distribution centre for online trade, a logistics complex, a shopping cluster, a research, educational and medical centres,” the statement said.
As referred to Yaroslavsky, about $1 billion is planned to be invested in the implementation of the project.
According to the report, the total area of Ecopolist KhTP will exceed 150 hectares within Kharkiv, the area of buildings and structures will be more than 550 thousand sq.m. Current tractor production of KhTP will become one of the anchor residents of Ecopolis, and the tech park will become the future residence of the Kharkiv IT industry.
“As of today, the number of specialists in IT industry in Kharkiv and the region exceeds 25 thousand people, and this number is constantly growing. By 2020, the shortage of high-quality office space for IT companies will reach 60 thousand sq.m. The business incubator will also be located based on the tech park and an accelerator for startups,” as was presented in the video.
The research centre will include an agrotechnological cluster, and the educational cluster will include higher education institutions and a business school, including the Kharkiv Institute of Physics and Technology, Karazin School of Business, Confucius Institute, etc.
“Another Ecopolis KhTP’s cluster will be a distribution centre for online trading showing impressive growth rates in Ukraine. Only in 2019, the volume of the e-commerce market increased by 25% to $3.5 billion,” was stated in the video.
The video recalls that the status of the industrial park, which will be assigned to Ecopolis KhTP, involves tax and customs preferences for foreign and local investors. A year ago, Yaroslavsky estimated investment in the implementation of KhTP redevelopment project up to $2-3 billion, as was reported.
Investment portfolio of DCH includes assets in such sectors as construction and development (Karavan Megastore chain of shopping and entertainment centres in Kyiv, Kharkiv and Dnipro, Kharkiv Palace Hotel, Vozdvizhenka RD), finance (INGO insurance company), industry (KhTP, Sukhaia Balka, Dnipro Metallurgical Plant), transport (Kharkiv International Airport), sports (Olymp rugby club).
Besides, in October 2019, Yaroslavsky announced the group's readiness to invest in the airport complex of the Dnipro International Airport, as well as its willingness to participate in the privatisation of the Electrotyazhmash Plant (Kharkiv) and Kharkivoblenergo.
In 2018, KhTP tractor manufacturer received UAH 81.38 million loss against a net profit of UAH 203.06 million a year earlier, net income decreased by 12.6% to UAH 623.61 million (the company was in a forced outage in 2016, ending the year with a loss of UAH 667.36 million).