monitoring successful cases of relocated enterprises and the contribution to regional development

Abstract

The aim of this study was to analyse the socio-economic contribution of successfully relocated enterprises to the development of host regions in Ukraine and EU countries. The methodology was based on an applied study of cases of Ukrainian and European enterprises that changed the location of the operations. Relocation under wartime challenges ensured business survival and had a multiplier effect for communities. The company “Kulinichi” moved production from Kharkiv to Lviv region, invested EUR 20 million in a bakery complex, created more than 3,000 jobs (500 – for internally displaced persons); revenue increased from UAH 113.8 million in 2022 to UAH 214.3 million in 2024. The company “Akvaizol” moved from Kharkiv to Kalush, built a plant on an abandoned site, created 100 jobs; revenue in 2023 amounted to UAH 901 million, assets in 2024 – UAH 1.283 billion. The company “Chumak”, after losing its plant in Kakhovka, placed production in several regions and initiated the construction of a plant in Odesa region (potential for 5,000 jobs); revenue increased from UAH 573.3 million in 2022 to UAH 1.36 billion in 2024. The joint-stock company “Ukrainian Energy Machines” created branches in Lviv, Zakarpattia and Chernivtsi regions to reduce risks. In the EU, relocation was carried out for economic, logistical and regulatory reasons: the companies JPMorgan, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley relocated part of the staff and assets to Frankfurt, Paris, Dublin, and Madrid to maintain access to the EU internal market. The company Bosch implemented a strategy of moving production closer to the consumer, expanding it in Hungary. The practical significance of the study lies in the use of the results to improve the policy of supporting relocated business and to develop indicators of its socio-economic impact.