EDS Ukraine is postponing investments in a new factory due to raids and plans to relocate production to the Czech Republic

At the beginning of this year, the EDS Ukraine group, under the leadership of Oleksandr Zapyshniy, planned substantial investments in constructing a new factory for manufacturing high-power transformers and chargers for electric vehicles.

They aimed to sell their products not only in Ukraine but also in the Eurozone, with future plans to penetrate the US market.

The first phase involved building a 4,000 square meter factory, slated to commence this year, with operational production expected in the following year. A year later, they planned to begin construction of a second identical 4,000 square meter facility to expand production.

Investments:

First phase: $1,500,000 for capital buildings and $2,500,000 for equipment.

Second phase: Nearly $4,000,000 for equipment and production facilities.

Total investment amount: Almost $8,000,000 by 2026.

Jobs created: 160 employees with associated tax revenues.

Return on investment: Expected in 5 years.

Tax contributions: Projected at 40-45 million UAH annually, in addition to existing revenues of nearly 70 million UAH across the EDS Ukraine group for 2023.

Accomplishments so far:

Land acquisition completed.

Development phase finished, with all necessary construction permits obtained (urban planning conditions and restrictions).

Final stages of engineering design underway (focused on metal structures).

Financing secured for the first phase through Aleksandr Zapyshniy’s funds and loans from trusted banking partners, based on diligent and fruitful long-term cooperation.

Last week, however, raids were conducted in the offices of the group and the residences of its leaders and employees.

Shocking? Yes! In 15 years of the company’s existence, this is the first instance of such raids.

To preserve the secrecy of the investigation, we will not disclose any details, but we believe this is pressure on our business. It is unjustified, as evidenced by our compliance with work requirements and the involvement of lawyers in the process.

It’s regrettable that such a situation is becoming a norm for business recognition.

Demotivation in every sense.

We are putting a STOP to the development of this investment project in Ukraine!

We have begun exploring the possibility of creating this project in the Eurozone. Given the new risks, the prospect of investing in Ukraine becomes even more risky.

This decision is a forced step that could lead to job losses and tax revenue for our country. However, the group continues its operations, and we strive to provide quality products for Ukrainian consumers, albeit possibly from facilities abroad.

Attached are photos of the products we planned to manufacture:

1. Electric vehicle chargers – a test sample is ready, preparing for mass production.

2. Transformers ranging from 35-150 kV up to 40 MVA are in the design documentation phase.

Additional details about the first factory unit are also available upon request.

Ukraine Front Lines

Tags: Business EDS Ukraine russia ukraine war Ukraine