Adam Cich, the Director General of Electrolux in Central and Eastern Europe, gave an interview to Forbes Ukraine, where he spoke about how the company did in Ukraine, why Electrolux managers intended to keep the factory, launched as a single plant of the company in Ivano-Frankivsk, Ukraine, in 2011. 

Eastern European market was initially of interest to the company, and Ukraine has become a bridge between Eastern Europe and the CIS. In addition, Ukraine itself is a large market of 45 million consumers.

Ukraine remains the largest market for Electrolux, with a factory in Ivano-Frankivsk manufacturing appliances for markets in Central and Western Europe.

In Ukraine, the company also sells appliances imported from foreign markets and manufactured by the company factory in Ivano-Frankivsk. Similarly, the products manufactured in Ivano-Frankivsk are being sold in Ukraine and exported abroad.

Interesting, that five years ago, company sales were distributed as follows: 80% exported to Russia, the remaining 20% - to other countries. At present, the situation is vice versa: 20% of products are being exported to Russia, 40% to other foreign markets, and remaining 40% are being sold in Ukraine.

Wherein Ukrainian factory increases exports, the export diversification is coursed not only by the sanctions introduced against Russia, but also by decrease of Russian market. However, according to Adam Cich, the company achieves its success on the Ukrainian market. Electrolux market share in Ukraine is growing every year, starting from 5% and achieving 17-18% this month. The growth is associated with the products range and active company position on the market.

Since 2011, the company continued investing and changing the export direction and structure. Nevertheless, the situation in Ukraine has pushed the payback period from 5 years planned initially to 7 years.

When the factory was opened, many components were supplied from abroad. Then the company started to actively seek local suppliers, and the number of components originated from Ukraine and used in the manufacturing process has gradually increased. This strategy company applies in all countries where its manufacturing is located. The supplier who provides good quality for the reasonable price supplies not only to the factory in Ukraine but also to the factories located in other countries. 

Commenting on business conditions in Ukraine, Mr. Cich said that he does not think that business in Ukraine suffers from excessive regulations. In overall, the company is satisfied with its Ukrainian business. The downside of Ukrainian realities on his point of view is the lack of so-called [free] economic zones that would support the development of production. But he is satisfied with the cooperation with local authorities.

Answering the question of what should be changed in Ukraine to get closer to Poland, which exports 80% of home appliances manufactured in the country, the Director General of Electrolux in Central and Eastern Europe clearly stated: "To prepare a better offer to investors and guarantee that it will be easy to come to the country. Investors should be taken by hand and hold throughout the process and said: just invest, and we would open all doors for you. And this should come together with the favorable financial offer: tax breaks, training courses for employees or the necessary infrastructure. This in a certain way became one of the success factor in Poland. "

Link to source: http://forbes.ua/ua/business/1395172-glava-electrolux-u-centralnij-i-shidnij-evropi-variant-iz-prodazhem-zavodu-v-ivano-frankivsku-mi

The Ivano-Frankivsk Regional Center for Investment and Promotion is an investment promotion unit and provides a simplified system of cooperation between Investor, Government and Local authorities through a one-stop-shop format (according to the Law of Ukraine "On preparation and implementation of investment projects on a "One stop shop" principle). It is a public vehicle for investors, providing support for accessing business information and legal advice. It provides consultancy in areas of project integration for strategic investors who are considering investing in Ivano-Frankivsk region of Ukraine, pre-investment support services, support in getting started and aftercare. The Center runs a database of investment property in the region. The Investor Road Map highlighting administrative procedures in Ivano-Frankivsk region is available in Ukrainian and English on the center’s web site.