Pricing policy
Ukraine, territorially located in a southeast part of the Central Europe, is related to those countries where high qualification level of workers combines with relatively low level of salaries. Power and raw materials also have smaller cost, than in West-European countries. At the same time, Ukraine makes airplanes and launch vehicles, ships and locomotives, lorries and autobuses, cars and motorcycles, computer and electronic equipment, precision instruments and agricultural machines, TV and wireless apparatuses, chemistry and textiles. Practically all parts of economy are presented in Ukraine.
Our factory is situated on industrial estate - in 7th kilometres from one of the leading industrial centers of the country - city of Kremenchug in which are manufacturing lorries and passenger cars, wheel disks, road machines, railway vehicles, the electrotechnical equipment, chemicals and petroleum derivatives, carbon black, steel & die castings, tooling, concrete ties etc. The industrial baseline of the city's factories has allowed to bring together at our factory skilled technicians: chemists, technologists, engineers, designers, tool makers, etc.
Kremenchukgumotechnika offers to the buyers oil-seals cheaper than European prices, saving at the same time high level of quality and sufficient profitableness of production. But the main mistake that European customers are going to see exact China in Ukraine by prices. It is impossible, and customers should seek in Ukraine abilities others, not only "lowest prices in the world". Also, manufacturing principles are not equal.
A border of EU is now near Ukraine: from 2008 Poland entered Shengen zone. From 5th February 2008 Ukraine is a member of WTO. During next years Ukraine has good perspectives to be integrated in EU. It is also a nearest country to EU from CIS-side. So, in next years it can become a new industrial platform for Western Europe. Cooperating with Ukraine can open big CIS market because of quite no customs fee between Russia, Belarus and Ukraine for products manufactured inside CIS. Here you can find hundreds of differences between local and world prices for energy, labor, lands, industrial goods, raw materials etc. Ukraine - is a democratic country, not like some CIS countries, it is friendly to Europe, so this is the most safe way to enter CIS market through Ukraine. But cooperation is possible only when sides are ready to see partners in Ukrainian companies. Because of Ukraine also has big local and CIS market with growing economy.
More about the economy of Ukraine you can read on page of World Trade Organization (WTO): http://www.wto.org/english/news_e/pres08_e/pr511_e.htm