The Ukraine's State Finance Institution for Innovations (SFII) and Caris group have signed a Memorandum of Agreement (MoA) to develop a full-scale factory in Ukraine for the production of next-generation road safety products. The project is expected to cost over $100 million, with Caris transferring its patented technology to Ukraine. The factory will exclusively serve European markets and will be managed by Caris with a 51% stake. The JV, named Caris Ukraine Rail, will be responsible for technology development, and the plant will have 100 production lines. The initial investment will be $100 million, with anticipated revenue of $1.19 billion.
The Ukraine’s State Finance Institution for Innovations (SFII) and Caris group signed a Memorandum of Agreement (MoA) regarding development in Ukraine the full-scale factory for production of next-generation products for road safety ~ plastic guardrails, invented by Caris.
According to the MoA, the project’s development cost shall exceed 100 million USD, and Caris will transfer to Ukraine its patented & certified technology whereas the future factory will exclusively operate for all European markets. The JV will be managed by Caris with a 51 percent stake.
Caris group Chairman Mr. Yu Cheol stated that factory will operate with 100 production lines and gave several advices to young entrepreneurs in an exclusive interview for our Institution, which will be available to watch at our Facebook page soon.
The JV named Caris Ukraine Rail will be responsible for technology development among other things and the plant will have 100 production lines to be constructed from March.
As an initial step the $100 million will be invested into the plant to be built on a 500,000 square meters in Drohobych, Ukraine. The two anticipate initial fixed revenue to reach 1.4 trillion won ($1.19 billion).
The latest investment comes on the heels of Caris’ announcement that it won a 1.6 trillion order for road infrastructure projects in Ukraine last year. Caris’ CEO Yu Cheol said the latest deal will provide a springboard for the company’s entry into the European market worth 30 trillion won in its key business area, adding the investment from the SFII will continue over the next five years.