Cyprus does not have heavy industry, such as the steel industry or the automotive industry. However, despite these disadvantages, the Cypriot industry currently employs about 40,000 people and contributes around 10% of GDP, having managed to develop in specialized and dynamic sectors.
From the production of PDO halloumi and pharmaceutical preparations, which are pillars of exports worth more than €600 million per year, to the food, beverage, chemical, plastics and new materials industries, the industrial ecosystem invests in know-how and technology.
Why we don't have "heavy industry"
Specifically, the Director General of the Federation of Employers and Industrialists, Michalis Antoniou, in a recent interview with "F", said, among other things, that Cyprus does not have a capital-intensive "heavy industry", such as steel, foundries and automobile industries, mainly due to the small size of the market, which limits economies of scale, shortages in natural resources – raw materials and geographical location. which affects transport costs and makes competitiveness more difficult.
However, as he added, the Cypriot industry has managed to develop dynamically in other sectors and has remarkable units with a significant supply.
As a typical example, Mr. Antoniou cited the production of PDO halloumi and pharmaceutical preparations, which are a strong pillar of exports worth more than €600 million per year.
In addition, Cyprus, according to the DG of OEB, has excellent food and beverage industries, building materials, chemicals-plastics production units, as well as industries in emerging sectors, which are developing rapidly, utilizing know-how, technology and specialized human resources.
Indicatively, he referred to the defense industry and dual-use products with potential to enhance national defense and security, biotechnology with applications mainly in the health sector, the circular economy and the manufacturing industry of new and advanced materials.
Large investments in recent times
According to Mr. Antoniou, in several of these sectors of industry, large investments from Cyprus and abroad have recently been observed. This is confirmed both by the various acquisitions of industries, the establishment of industries of foreign interests in our country and by the great interest in exploiting the Ministry of Energy's sponsorship plans for the manufacturing sector. Through these sponsorship schemes, grants of tens of millions of euros were granted to industries to cover part of their investment program for the purchase of new equipment, machinery and other infrastructure.
In fact, as Mr. Antoniou adds, in order to strengthen the industrial ecosystem, OEB, as the institutional representative of the industry, recently submitted its proposals to the Ministry of Energy in the context of the adoption of the new national Industrial Policy 2025-2030, which is expected to be approved soon by the Council of Ministers.
The Federation believes that, despite the challenges of the industry, such as the lack of skilled workers, the mismatch of the education provided with the real needs of the industry, the cost of energy, the administrative burden – bureaucracy from increased legal obligations and over-regulation, there are opportunities for further strengthening the industrial sector, in order to be able to release the enormous potential, to improve the competitiveness of our industrial product, and to claim the expansion of its contribution to GDP.
