Finnish industrial company REKA Group is starting the implementation of the REKA NOVO investment project in Novoselytsa, Chernivtsi region with a total investment of €5 million, the Chernivtsi Regional Military Administration reported, reports Open4business.
The new enterprise will specialize in the production of silicone hoses for European manufacturers of trucks, special transport and shipbuilding enterprises.
Thus, it is an export-oriented production, which is created by a foreign investor directly in Ukraine and integrated into European industrial chains.
REKA Group representatives Markka Rentto and Mika Kyarkkaiinen announced the start of the project during a meeting with the leadership of Chernivtsi region and Novoselytsk community.
According to the published data, the project was named REKA NOVO. The total volume of capital investments will amount to €5 million. The first stage of the enterprise should be launched at the beginning of 2027.
The production of the new plant will be focused mainly on the European market. This makes it possible to consider the project not only as a direct foreign investment in Ukrainian industry, but also as further integration of Ukrainian production sites into the supply chains of European engineering.
According to specialized investment resources, international manufacturers of heavy machinery, including Volvo and John Deere, are among the potential consumers of the products. However, in the official notice of the Chernivtsi OVA, specific customers are not indicated, therefore the conclusion of direct contracts with these companies has not yet been publicly confirmed.
For the Chernivtsi region, the project is of particular interest against the background of a relatively small accumulated volume of direct foreign investments. According to OVA, there are more than 400 enterprises with foreign capital operating in the region, and the total amount of attracted foreign direct investment is about $19 million.
Against this background, REKA Group's investment of €5 million is a notable new industrial project for the region.
The location of production in Novoselica also gives the investor a logistical advantage: the city is located close to the border with Romania, which facilitates incorporation enterprises to European production and transport chains.
The project is indicative of the broader trend of moving individual production operations closer to the EU market. Due to the geographical proximity to the European Union, a relatively developed industrial base and access to the Ukrainian workforce, the western regions of Ukraine are gradually becoming one of the main platforms for new export-oriented industries.
Official source: Chernivtsi Regional Military Administration — investment project REKA NOVO.
