A Japanese engineering company, in collaboration with Ukrainian manufacturers, plans to initiate the production of pickup trucks in Ukraine using Semi Knocked Down (SKD) technology. This was announced by the First Vice Prime Minister, Minister of Economy of Ukraine, Yulia Svyrydenko.
“Together with Ukrainian partners, the Japanese company plans to start the production of pickups using Semi Knocked Down technology, and in the future, they aim to switch to Completely Knocked Down (CKD) production. This is a positive signal to other Japanese investors that localizing their production in Ukraine is a mutually beneficial cooperation. During a meeting with over 200 Japanese entrepreneurs, I also encouraged other companies to open production facilities in Ukraine or localize their technologies in cooperation with Ukrainian companies,” emphasized Svyrydenko.
The process of Semi Knocked Down (SKD) involves assembling vehicles from major components and units supplied by the manufacturer. This is an initial stage of localization, which can evolve into Completely Knocked Down (CKD) production, where most parts are manufactured locally.
The Minister of Economy did not share details about the project for producing Japanese pickups in Ukraine.
Yulia Svyrydenko noted that currently, over 40 leading Japanese companies are already operating in Ukraine. To protect investments, foreign partners have access to war risk insurance programs from DFC (USA), MIGA, EBRD, as well as export credit agencies of other countries and the Ukrainian ECA.
The ministry reminded that Japan has allocated approximately €1.25 billion through the NEXI program to support companies willing to invest and work in Ukraine. Additionally, the country provided $36 million to the SURE Trust Fund to foster investment activity.
Source: Ministry of Economy