Kronospan Wood Panel Giant Invests $210 Million to Expand in Ukraine

Kronospan, a leading European manufacturer of wood-based panels for flooring, furniture, and timber-framed houses, is expanding operations in Ukraine. The company is investing €200 million ($210 million) in a new production line in the Rivne region.

Kronospan has been operating in Ukraine for nearly 20 years, establishing itself as one of the country’s largest producers of:

• Particleboard (PB)

• Medium-density fiberboard (MDF)

• Oriented strand board (OSB)

The company plans to sell its products both domestically and abroad, with approximately 60% of the output intended for export to EU countries and the United States.

Over its years of operation, Kronospan has invested around $1 billion in Ukraine’s manufacturing infrastructure, including €563 million (around $590 million) in the Rivne region alone. The company employs more than 800 people across its Ukrainian facilities.

Kronospan spearheaded the creation of an industrial park in the Rivne region, aimed at forming a furniture production cluster around its wood panel factory. The company has already invested  €47 million (almost $50 million) in preparatory work and infrastructure for the park, with €34 million ($35.7 million) of that funding allocated during the war.

Invest in Ukraine

For Ukraine, investments like Kronospan’s underscore the sustained interest of foreign companies in both the local market and its long-term potential, even amidst the full-scale Russian invasion.

Amid the war, French company NJJ Holding acquired lifecell—one of Ukraine’s largest telecom operators—and Datagroup-Volia in a landmark $650 million deal, one of the country’s biggest in a decade. Uniquely focused on services rather than raw materials, NJJ Holding plans to inject hundreds of millions more into developing these telecom giants in the coming years.

This is far from an exception. Foreign investors are actively supporting Ukrainian businesses across sectors like agriculture, IT, and mining, proving resilience even in the face of Russian aggression.