Ukraine to Launch Production of Japanese Pickup Trucks

A Japanese machine-building company, together with Ukrainian manufacturers, will launch the production of pick-up trucks using large-scale assembly (SKD) technology in Ukraine.

This was announced by Yulia Sviridenko, First Vice Prime Minister and Minister of Economy of Ukraine, during a business forum organised by the Japan External Trade Organisation, the Ministry of Economy of Ukraine reports.

‘Together with Ukrainian partners, the Japanese company plans to start producing pick-up trucks using large-node assembly technology, and in the future they plan to move to small-node production (CKD). This is a good signal to other Japanese investors that localisation of their products in Ukraine is a mutually beneficial cooperation,’ Svyrydenko said.

The production of cars using SKD technology involves assembling vehicles from large components and assemblies supplied by the manufacturer. This is the first stage of production localisation, which may later move to deeper localisation through CKD (small-knot assembly) technology.

According to Svyrydenko, more than 40 key Japanese companies are currently operating in Ukraine. Investors have access to war risk insurance from the US DFC agency, MIGA, the EBRD, foreign export credit agencies and the Ukrainian ECA.