Sumy Region has the highly developed diversified industrial complex with 266 large and medium enterprises and more than 800 small enterprises. The irreversible process of increase of industrial production volumes in Sumy Region began in 1999. For the last two years the production volumes in machine-building has been significantly extended most of all.
The introduction of market mechanisms conditioned the workers to hardly work on increase of production competitiveness achieved due to introduction of progressive technological processes and mastering of new types of products. So, more than 500 new types of products were mastered in 2002.
The extractive industry of Sumy Region is well developed. There is extracted 40% of the national volume of oil in the region. The extraction of high-quality quartzites (content SiO2 – 98-99%) used for production of silicon and ferro-alloys is at high level. The "OkhtyrkaNaphtoGaz" Oil and Gas Extraction Administration (main structure in the JSC "Ukrnafta" system) and Kachaniv Gas -Remaker Plant are the leading enterprises of the industry, where in accordance with the complex government programme of energy conservation the reconstruction is conducted.
The machine-building and metal-working are leading branches of the regional industry in the conditions of market transformation. The machine-building complex of Sumy Region is specialized on production of hi-tech chemical and oil-extracting equipment, gas-compressor plants, pumps, industrial pipeline armature, technological equipment for processing industries of agroindustrial complex, facilities of automation and others.
The specialists of enterprises developed many economic well-grounded investment projects and business plans of production development. Due to introduction of the finished products quality system at majority of enterprises it has been certificated pursuant to world standards.
The leading enterprises of the branch are follows as Sumy JSC "M. V. Frunze SMNVO" and "Nasosenergomash", Konotop branch of the JSC "Motordetal-Pravex", Sveya Pump Works and many others.
The enterprises of chemical and petrochemical industry provide great payment in the regional general industrial production volume (10%). The basic chemical production and chemical-photographic industry prevail in the structure of this branch so its enterprises produce mineral fertilizers, sulphuric acid, mineral pigments, forage additives, chemical reagents, paint and varnish products, magnetic ribbon, picture film, industrial rubber wares and others.
Lately the large work on partial re-orientation of enterprises into production of competitive goods, their restructuring, changes of property forms, leading of wares to the proper level of quality and decreasing expenses on production has been executed. Following directions as decline of material capacity of products and energy capacity of manufacturing are priority.
The food is the leading industry of the region. For the last years the most direct foreign investments were attracted in this sphere. The range of goods has been substantially extended and their quality has been considerably improved. The most powerful enterprise of this branch not only in the region but also in Ukraine is the Chocolate Factory "Kraft Foods Ukraine". This enterprise has a certificate on compliance of its products to the international standard of the quality management system ISO 9002. The row of high rewards were obtained by products of the Romen Bread-Backing Plant, JSC «Konotopmyaso» and JSC "Shostka Milk Factory". The trade mark "Bili Beregy" of the Shostka Milk Factory has been acknowledged by the best trade mark of Ukraine in the National Rating. The products of the JSC «Romen Milk Factory» were awarded with golden medals in the National Rating "Best Trade Marks of Ukraine" in 2002. In the exhibition-competition of dairy commodity producers of Ukraine the butter "Vologodske" and cheese "Rosiysky" of the JSC "Okhtyrka Cheese-Making Factory" won golden medals and were acknowledged by the most best in Ukraine. The vodka "Dvoryanska" of the LLC "Gorobyna" was awarded with Diploma for the first place in the Exhibition "Alco-Soft-2002" in Kyiv.
Sumy Region is the agrarian land. For the last three years the manufacturing of gross production in all categories of facilities has been increased by 29.6%. There are almost one and a half thousand agricultural enterprises in the regional agricultural complex. The last years became the important in forming of new production and social relations in the village and becoming of new created agricultural enterprises based on the private property on land and ownership.
The production of food corn, sugar beets, winter and spring rape, oil radish, sunflower, flax, hemps, groats crops and potato is priority one in the plant growing in Sumy Region.
With the purpose of increase of efficiency of agricultural production the row of scientific establishments is functioning in Sumy Region. So, the Ivanivka experimental station successfully works on improvement of sorts of winter wheat and their districts. The high-quality seeds of sugar beets are supplied to the customers by the JSC "Vorskla" from Trostyanets. The Agricultural Firm "Sumynasinnya" is well known in Ukraine and Western Europe as supplier of high-quality seeds of long-term herbages.
The stock-raising industry of the region is specialized on breeding of milk and meat cattle, pigs and poultry. The positive dynamics characterizes the production of basic types of stock-raising products. So, in 2002 the production of meat, milk and eggs has been significantly increased.
The introduction of modern technologies and sorts in combination with favourable weather conditions gave possibility in 2002 to get the higher productivity of cereals for the last seven years and to harvest more than 1,3 million tons of corn. The farmers of the Pidlisnivka branch of the JSC "Rise-Agro" good worked as well as Agricultural Firm "Vladanka" and Agricultural Firm "Pershe Travnya" LLC of Sumy district, where the highest harvests of cereals were collected.
The development of agrarian production is impossible without functioning of the ramified agrarian market on the modern stage. Therefore in the region there was created and is functioned the Sumy Stock Commodity Agroindustrial Exchange as well as 1200 points on purveyance of milk, 243 points on purveyance of meat and 481 receiving-purveying points of vegetables, oil, sugar and corn.
The strengthening of economy and development of social infrastructure in the village depends on competent reformation of agroindustrial complex. For providing demands of rural population in food and industrial stuffs 251 firm shops are functioning. The services to the population and agricultural enterprises are provided by 17 points on repair of equipment of farms, 40 mechanized detachments and 15 machine-technological stations. 23 points of veterinary service were created at establishments of veterinary medicine as well as 106 chemists' kiosks and 139 state and 39 private out-patient clinics.
The regional investment potential is extended. The important source of investments in the fixed assets is the personal funds of enterprises (over 80%). In 2002 the investors from 21 countries of the world invested more than USD 4.5 million of direct foreign investments in the regional economy.
The housing building is intensively developed in Sumy Region. 126.9 thousand square m of habitation was put into service in 2002 that exceeds the level of previous year by 15%. The attraction of facilities of non traditional sources of financing to individual housing building by the Programme "Native House" is lasting.
Since 2001 the stable tendency to dynamic growth of the regional foreign trade turnover has been set. In the regional structure of export deliveries the leading positions are occupied by Russian Federation, Byelorussia, Turkmenistan and Germany. The products are mainly imported from Russia, Byelorussia, Germany, Turkmenistan and Lithuania. The geography of foreign trade partners of the region is constantly extended (more than 80 countries of the world today). The products of machine-building, chemical and food industry prevail in the regional export commodity structure. The import commodity structure is characterized by the considerable volume of mineral products for the last years (fuel, oil and oil products), plastic, paper and textile raw material.
For years of independence of Ukraine the small business became the independent element of regional market economy and it influences on structural development making great payment in extension of production volumes, retail commodity turnover and promotes the more complete satisfaction of consumer demand of population.
The market infrastructure is intensively developed and it comprises 43 branches of commercial banks, two insurance companies, leasing company, 32 public accountants, 19 realtor and 10 publicity firms, four business-centers, business-incubator, two business support funds, 13 credit unions and the network of their branches today. The Sumy Stock Commodity Agroindustrial Exchange and 10 district trading houses successfully function. The brokerage offices are operating in every district. Today the businessmen are engaged in solution of many regional problems. In particular, by their assistance the stadium "Yuvileynyy" in the regional center was built; the passenger transportation on the most loaded routes was arranged; many other useful affairs were done.
Sumy Region has been significantly changed and its cities and villages became more beautiful and merrier. It is pleasantly to mark that there is a particle of labour of each resident of the region in these changes.