UK furniture company Home Essentials will produce furniture and mattresses in the town of Kremenets in Ternopil Oblast, the Interfax-Ukraine news agency quoted Volodymyr Vasylevskyi, head of the Investment Office of Ternopil Oblast, as saying on Dec. 23.
According to Vasylevskyi, the company has already completed all the registration documents and has chosen a site for placing the production facilities.
He said the project is now entering the implementation stage: hiring employees, importing production equipment, and forming a circle of suppliers.
Vasylevskyi noted the new furniture factory is expected to produce its first shipment of products in Q2 2023. Currently, the project has generated 50-60 new jobs, and with a total of 300 jobs projected by 2023.
In addition, the investor will transfer part of the back-office operational processes from the headquarters in Hong Kong to Ukraine, with the further employment of managers and creatives, including logisticians, marketers, etc.
According to Vasylevskyi, by analogy with similar factories in Ukraine, production in Kremenets will generate a turnover of about $12-15 million.
In the first months of operation, it is also possible to export products for up to $1 million a month. Exports are initially planned to Spain, Portugal, Italy, and France, and to most of EU starting from Q2 2023.
The company has planned for about $1 million of investments for the start of production, equipment, and working capital in Q1 2023, and up to $5 million by Q2 and Q3 2023.