The full-scale war has caused enormous damage to Ukraine. Rebuilding the country is a large-scale project that requires huge resources, including building materials. Glass is one of the most scarce materials today. Despite significant raw material reserves and market potential, Ukraine remains extremely dependent on imports of glass products. Let’s have a closer look at why this happened and what are the prospects for the development of domestic glass production.
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Import dependence: causes and consequences
For many years, the Ukrainian glass market was saturated with cheap products from Russia and Belarus. Paradoxical but true: Ukraine exported its own sand for glass production to neighbouring countries and then imported finished products. This situation was caused by a number of factors:
- Energy dependence: Glass production is an energy-intensive process. Rising energy prices have made domestic production uncompetitive.
- Lack of modern technology: Ukrainian enterprises did not have the equipment to produce high-quality float glass, which is widely used in modern construction.
- Investment unattractiveness: Setting up a new glasswork is a large-scale and expensive project that requires significant investment.
‘Glass production is an extremely energy-intensive process. The cost of gas, which has only been rising in recent years, has a significant impact on the cost of production. This made our production uncompetitive even before the war,’ said Olena Shulyak, Chair of the Committee on the Organisation of State Power, Local Self-Government, Regional Development and Urban Planning.
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The need for domestic glass production
Today, the demand for glass in Ukraine is extremely high. The reconstruction of destroyed homes, schools, and hospitals requires huge volumes of glass products. Dependence on imports limits the opportunities for recovery and creates additional risks associated with price fluctuations and logistical problems.
Prospects for the development of domestic glass production
Ukraine has all the necessary resources to develop its own glass production: significant reserves of raw materials, a large domestic market and a skilled workforce. However, a number of challenges need to be addressed to ensure the successful implementation of such projects:
- Stability of energy supply: Ensuring stable energy supplies at affordable prices is one of the key factors for the development of energy-intensive industries.
- Investments: Attracting investment in the construction of modern glassworks is a priority.
- Government support: The government should create favourable conditions for investors, including tax incentives and investment protection.
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