The construction materials market is coming to life: who is buying gas concrete in a country where every fifth building is damaged.

In an era when most companies are trying to survive, and budgets are reduced to a minimum, new building materials plants are nevertheless being built in Ukraine, multi-million dollar investment agreements are being signed, and new workshops are being launched. This is the new economy of war — with risks, but also with faith in a postwar renaissance.

Construction front: who lost, who survived and who comes to Ukraine from abroad

Among those who did not wait for “better times” is the construction giant Kovalska. After the loss of the factory in Nova Kakhovka, the company invests to a new enterprise for the production of aerated concrete in the village of Rozvadiv in the Lviv region. This is one of the few examples of a large-scale investment project in wartime. The capacities will double, and the company will take a step towards complete independence from the destroyed assets in the occupied territory.

Foreign giants enter Ukraine with millions of investments. So, despite the loss, Knauf announced the launch of a new plant in the Ternopil region. Construction of a new enterprise in Bila Tserkva from scratch, on a bare field, started  Unilever. The Finnish Peikko Group is building a plant for the production of composite structures. Kronospan launches woodworking cluster in the Rivne region.  Irish Kingspan invests 200 million euros for the construction of a plant for the production of energy-efficient materials.

This is not just a business – it is a signal to global partners: you can invest in this country, even when there is a war nearby. These are not short-term actions of solidarity, but systemic projects for years to come. The domestic government offers investors not only promises, but also concrete tools.
Law “On State Support of Investment Projects with Significant Investments” (the so-called “investment nanny”) offers exemption from income tax for up to 5 years, exemption from import duty and VAT, provision of land without auction, as well as construction of roads and networks at state expense.
Under the auspices of “Made in Ukraine”, business receives not only grants and benefits, but also compensation for infrastructure construction. The state started for the first time implement the military investment insurance mechanism dreamed of since the beginning of a full-scale invasion. Pilot agreements have already been signed.

Brought the YeRobota grant program has shown its effectiveness: more than UAH 7 billion has been allocated for the launch of new enterprises, greenhouses, gardens, and processing complexes. Businesses in the conditions of the war got a chance not only to survive, but also to get back on their feet.

Occupation, front, arrivals are not abstract threats, but a concrete reality for construction companies. If “Kovalska”, one of the key players in the aerated concrete market, lost the factory in Nova Kakhovka due to the fact that the territory was under occupation, then the giant of the world market Knauf lost its plant in Soledar. Siniat is forced to leave production in Bakhmut. This is not just a loss of assets, but a forced reset of strategies. Factories were destroyed, logistics were undermined. But the business did not disappear.

Among those who not only survived, but also strengthened their positions, is “Automagistral-Pivden”. The company maintained leadership in road construction and continued projects even during the active phase of the war.

Intergal-Bud is one of the few development companies that continues to implement residential projects in various regions of Ukraine. Despite the full-scale war, it opened new sites in the western regions and launched the construction of Sensar Development.

These companies don’t just build, they create new logistics schemes, save personnel, start production under sirens. This is economic heroism without orders.

Instead of “panels”, aerated concrete and green architecture: how Ukraine is building a country of survival and the future

In a country where hundreds of thousands of houses have been destroyed, the building materials market should lie in ruins. But no, it pulses. The demand for aerated concrete, foam blocks, and reinforced panels is growing not because of business fantasies, but because of pain, losses, and the need for restoration. Ukraine is building today because it has no other choice.

The main engine of the market has become those who have lost their homes and are looking for a way to rebuild their lives from scratch. And this is not a metaphor. It was in 2023 entered in operation, 5.45 million square meters of housing is more than in 2022, but still less than the pre-war volume. Construction is most active in Lviv, Ivano-Frankivsk and Transcarpathia. Villages that were damaged during the fighting in Kyiv region and Chernihiv region are also being restored.

Aerated concrete, which was previously widely used in the private sector, became the leader again, because it is light, warm and inexpensive. It is taken for the construction of one- and two-story houses, which Ukrainians build at the expense of insurance payments, help from the diaspora, or by their own efforts.

Another source of stable demand is military infrastructure. Fortification structures, shelters, mobile modules require inexpensive and quick-to-install materials. Aerated concrete apply not only for housing, but also for arranging new military facilities, especially in the frontline regions.

And although the army does not advertise its purchases, manufacturers admit: large batches go there. The state wants to build quickly and cheaply. Aerated concrete is ideal for such tasks.

What was once the driver of the construction market — office centers, shopping malls, business clusters — is now in deep shadow. Most of the developers have put their projects on hold. There are almost no new commercial facilities in Kyiv do not start. The market is focused on survival, not development.

So the question is not whether housing makes up for losses in commerce. The question is whether it can keep the market afloat. So far yes, partially.

The third source of demand is humanitarian and donor reconstruction. Programs of the UN, the EU, “Great Restoration”, projects for the construction of temporary housing – they all buy materials in large quantities. And these are not point initiatives. Yes, in 2023 fixed hundreds of households were rebuilt with international funds — and almost everywhere aerated concrete was used as the main material.

Aerated concrete is now not just a block of sand, cement and lime. It is a tool of return to life. This is a temporary roof over the head in Mykolaiv, a bomb shelter near a school in Sumy region or a modular village in Lviv region. This is the backbone of the survival economy.

When all around are destroyed buildings, broken networks and blackouts, talking about “green architecture” seems like a luxury. But right now, an energy-efficient, ecological and smart era of construction is taking shape in Ukraine. And this is not a tribute to fashion, but a survival strategy.

From April 1, requirements for the so-called came into force in Ukraine NZEB — buildings with almost zero energy consumption. This means that new and renovated buildings must be more than just warm. They must provide themselves with energy – from the sun, wind or heat pumps. That is, to produce, not to consume. As he emphasizes State Energy Efficiency, this is a fundamental transition that makes our architecture not just modern, but sustainable in the face of constant threats to the energy system.

In the reality of war, when shelling of power systems has become commonplace, every kilowatt counts. That is why designing with thermal insulation in mind, autonomous power sources and energy storage is no longer a trend, but a requirement of the time. Thus, new residential quarters in Irpen and Bucha are being designed immediately with solar panels and heat preservation systems. In Lviv and Ternopil, projects are emerging where passive ventilation systems are installed that do not require electricity.

This is not an exotic, but a reaction to blackouts. After all, if the country cannot guarantee stable electricity, the house itself must provide it.

Along with energy efficiency, the philosophy of materials is changing. More and more developers are switching to recycled concrete, insulation from ecological raw materials, bamboo constructions, new generation chipboard panels. Among the trends is 3D printing of houses, which allows you to build temporary housing quickly and with minimal costs.

Ukrainian designers are more and more frequent use BIM modeling — digital copies of buildings that allow you to simulate energy consumption even before construction begins. This makes it possible not only to save, but also to avoid mistakes that could cost thousands of kilowatts and millions of hryvnias.

Ukrainian green construction is an adequate response to the threat of destruction and lack of energy resources. Leading architects emphasize that the restoration of Ukraine is a chance to move from post-Soviet concrete to sustainable, smart urbanism. Not a return to “how it was”, but a breakthrough to “how it should be”. And now in Kyiv, Vinnytsia, Lviv start pilot projects of public buildings according to NZEB standards.

The EU, USAID, and international funds are increasingly investing in “green” infrastructure. About a third of all international funding that goes to the reconstruction of Ukraine directed for energy-efficient solutions. Because investors – especially in the conditions of war – do not want to invest in yesterday.

A country fighting for independence should not depend on imported gas, a fragile power system or inefficient uninsulated boxes. “Green” architecture has become not a slogan, but a weapon. And every building that produces energy by itself is another step towards a strong, autonomous country.

No one has any illusions: the restoration of Ukraine after victory is not just about repairing schools and roofs. This is the megaproject of the century. 14 billion pieces of bricks, almost 12 million tons of concrete and more than 3.9 million m² of glass will be needed to rebuild the destroyed housing alone. This is without taking into account roads, bridges, power plants and hospitals.

Companies understand that resources must be ready “for yesterday”. That is why now is going construction of a factory for the production of ceramic tiles worth more than $50 million, with a capacity of 15 million m² per year. This is just one of dozens of examples of projects that work “in advance”.

One of the main vectors is the creation of industrial parks. It is not just a fashionable European concept, but a platform for launching new enterprises. The total area of ​​industrial facilities and warehouses planned for construction is already exceeds pre-war indicators per quarter.

These are not temporary objects, but the infrastructure of a new export-oriented economy, deep processing and sustainability. And it will become the basis for mass employment and business relocation after the victory.

Following the example of the Marshall Plan, post-war Ukraine has a chance not just to recover, but to become better than it was. Already in reconstruction strategies laid down principles of “green architecture”: energy efficiency, renewable sources, low carbon footprint. This means that new schools, hospitals, housing estates and offices will be built according to NZEB standards.

And this is what makes reconstruction not just a technical task, but a value transformation. Because Ukraine will no longer be a country of cheap materials and low-quality facades. It should be a country of intelligent design and sustainable solutions.

Tetyana Viktorova