The story of the relocation of the Melitopol enterprise for the production of special vehicles Citius S, which moved to Lviv Oblast last spring, and the first finished products at the new production of special vehicles appeared in October 2022, was told by the Focus publication.
Citius S was founded in 1991 in Crimea. But in 2014, the company moved to Melitopol. In Crimea, the main area of work was the production of safety glass for cars. In Crimea, they had their own territory, workshops, they just managed to make separate boxes for converting cars.
At the new location in Melitopol in 2014, the company started everything from scratch, but at that time the company managed to relocate some equipment, for example, a 25-ton autoclave. Along with the owners and top management, some employees left for Melitopol.
In eight years in Melitopol, they moved from rented premises to their own factory. Here, business has developed in terms of quality. Until February 24, 2022, the company worked stably, fulfilling orders from Ukrainian and foreign companies and banks. But the Russian attack instantly changed everything for Citius S.
Melitopol was captured by the Armed Forces of the Russian Federation on February 25. However, managers, owners and employees managed to leave earlier – on February 24. The company’s equipment remained under occupation, moreover, even important documentation was not taken away in full. In addition to valuable equipment, three emergency vehicles remained on the territory of the plant in Melitopol – finished products produced by the enterprise.
Shortly after that, the company’s owners applied for a loan from Oschadbank. At that time, the company had nothing to pledge, except for the car in which they left the occupation. But the bank agreed to issue a loan for restoration. They decided to settle and resume production in the Lviv region.
Representatives of Oschadbank and the city administration helped the owners of the company to set up the production of armored cars in the Lviv region.
The help of the bank and the Lviv OVA was important in resuming the production of special vehicles.
Gradually, non-refundable aid (grants) began to be offered to the enterprise. The first grant in the amount of UAH 100,000 came from the Lviv Regional Military Administration.
Later, at the end of the summer, the administration advised the production of the WNISEF fund, which provided another 100,000 hryvnias.
The company also recently signed a grant agreement for 40,000 euros. Some grant programs are still at the stage of approval, but if we take into account the ones that have already been granted and the following grants, the amount will be 4.8 million UAH. The company directs all these funds to the restoration of the enterprise and its work.
In addition to grants, there are also loans.
Citius S has already produced more than 250 sets of armored glass at the new production facility in the Lviv region. As for cars, a batch of 43 cars is already being produced, not counting those that are produced individually. They plan to make about 120 cars per year. Legally, the relocation of the enterprise took place in May 2022, the company produced the first products in the summer, and the first armored vehicles in October last year.
One of the main issues, apart from the need for funding, in case of relocation is staffing. Anastasia Serova, a lawyer at the Citius S company, explained that the company was lucky, because the main specialists left Melitopol and now work in the company. To attract employees, the opportunities of the local Employment Center are used.
“We joined the Lviv Regulatory Hub, the Club of Business People. Thanks to attending seminars, we found suppliers of seats, handles, cutting of small metal elements, carriers and so on. The fact is that we have lost not only supply chains of raw materials, but also these trinkets. So now everything is from scratch. Such measures help,” says the company’s lawyer. Anastasia Serova considers grants and loans another success factor. This is exactly what helps to solve financial issues and get the necessary professional knowledge at the same time.
“In addition to finance, international organizations provide free consultations – we had problems with the service center and received such consultations from USAID, you can receive training – our production workers are currently studying in three different programs. We plan to join export projects and programs in the future,” Anastasia Serova summed up.
The occupation of parts of Zaporizhzhya, Kherson, Donetsk and Kharkiv regions hurt the economy of Ukraine and, of course, the state of very real manufacturers, who understood: no prospects of stable work should be expected under the conditions of Russian occupation. Therefore, many entrepreneurs made a completely logical decision: to leave the occupation and start working in a safe region. Businesses usually choose the regions of the western part of Ukraine for relocation.
According to the Ministry of Economy, the largest number of enterprises relocated to Lviv (24%), Zakarpattia (14.5%), Chernivtsi (9.8%), Ivano-Frankivsk (8.3%), Khmelnytsky (7.3%) and Ternopil (6.3%) oblasts.
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