Restoration of machine tool production as a prerequisite for industry development in Ukraine

This review article presents the analysis of the state of mechanical engineering and machine tool production in Ukraine based on publications and research available from open information sources. The key limitations to the development of these sectors have been identified. The production output of machine tool plants determines the level of mechanical engineering and ensures Ukraine’s industrial independence. In the context of martial law, it also supports defense capabilities, which underscores relevence of understanding current state of machine tool building and challenges that need competent and timely solutions. Evaluations and forecasts by market analysts do not always unambiguously reflect actual situation. In the article, the primary causes of the decline of domestic machine tool manufacturing and the demand for its products, which continue to be produced, albeit to a limited extent are identified. Certain directions for necessary changes have been analysed in accordance with Ukraine’s Digital Development and Innovation Strategy for the period up to 2030, along with the Approved Operational Action Plan for its implementation. The key outcome of restoring machine tool manufacturing in Ukraine will be the growth of domestic demand for locally produced machine tools, i.e., import substitution. The article outlines some necessary actions to implement import substitution, particularly those related to scientific, technical, and engineering personnel and their interaction. It also provides a preliminary overview of actions that could influence the current situation, primarily in terms of approaches to the modernization and upgrading of CNC machines that are already in use or are still being produced in Ukraine. Despite not being state-of-the-art machining equipment, these machines remain in demand on the domestic market due to their reliability and cost-effectiveness. In the article, necessity of marketing activities at both existing and newly established machine tool plants, creation of state-supported logistics programs to ensure the timely delivery of components, and provision of support for small businesses operating in the sector is also highligted.