Light industry is a sufficiently developed sector of the Ukrainian economy. In 2008 the sales turnover in the sphere of light industry amounted to UAH 6’410 million.
Nowadays, light industry is experiencing restructuring, change of management approaches, patterns of ownership, product line, organization and technology of manufacturing as well as implementation of new cost optimization schemes. One of these new approaches designed to safeguard the position on the market is cooperation with customers on the basis of customer-furnished raw materials. Such schemes became popular in domestic light industry since the 1990s. Presently, from 70 to 95 per cent of light industry products in Ukraine are manufactured applying the customer-furnished raw materials approach. Customers – European and North American companies – provide Ukrainian enterprises with materials, designs and equipment, bearing expenditures (mainly cost of labor) at the place of manufacturing.
In view of that, foreign companies have become more and more interested in Ukrainian light industry companies as potential investments. Having reached the international standards of manufacturing technology and product quality, Ukrainian producers were recognized by the world leading companies.
Owing to the required knowledge of peculiarities of light industry sector, Konnov & Sozanovsky lawyers advise on the following issues: peculiarities of doing business in Ukraine by non-residents; agreements servicing various transactions and negotiations of the favorable terms and conditions of transactions; legal expertise of international sales, lease, franchising etc. agreements; product liability; foreign economic transactions, customs clearance, customs duties optimization; tax optimization; investment models; due diligence of the companies; reorganization of companies and optimization of group of companies; registration of enterprises with foreign investments, joint ventures; relations with competition, financial and controlling authorities; antidumping investigations; representation of clients’ in courts.
Light industry enterprises are located all over the Russian Federation. In the output product mix, along with the manufacture of the consumer goods, considerable volume of production falls on goods with the production and technical, as well as special-purpose assignment, including food, chemical and electrotechnical industry, cords for tires, fabric and manufactured articles for the agriculture, automobile, aviation and space technology, special garments for the workers of the different sectors of economy, clothing and equipment for the officers of the national power departments.
To date, the processes of restructuring are implemented in the light industry sphere, the management techniques, the patterns of ownership, as well as range, organization and technology of manufacturing are changed, the means of expenditure optimization are developed.
With the development of the branch, domestic enterprises attract more and more interest of foreign investors.
Possessing knowledge of the specific nature of the business pursuit in the light industry sphere, Konnov & Sozanovsky’s lawyers advise clients on issues of doing business on the territory of Russia by non-residents; provide legal support in negotiating business transactions by the light industry sector enterprises; advise on cross-border sales and services agreements; advise on matters of product quality, optimization of the customs duties, customs regulations, performance of the export-import transactions; develop schemes on taxation optimization, investment schemes; prepare loan agreements, carry out due diligence of the enterprises, reorganization of the legal entities and optimization of the relations between groups of the companies; carry out establishing of the enterprises with the foreign investments, provide assistance with joint ventures, and represent clients in courts.