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Ukraine is making a bold entrance into the European hemp market with the launch of its largest industrial processing plant, aimed at revitalizing a once-thriving sector and signaling resilience through innovation.
Ukraine’s Ministry of Economy announced last week that the Ma’Ryzhany Hemp Company has begun operating what is now the country’s largest hemp processing facility.
The plant is located in the Ma’Ryzhany industrial park in the Zhytomyr region of the war-torn country.
The company has turned a former flax mill into a modern production site, now capable of handling up to 14,000 tons annually. The facility is set to supply hemp fiber to both the European textile sector and local markets. More than $20 million has been invested in this initial stage of development.
Industrial hemp has deep roots in Ukraine’s agricultural history, once widely grown for its strong fiber used in textiles, ropes, and sails.
During the Soviet period, the country stood among the leading hemp producers. But after the collapse of the USSR, production sharply declined, driven by unclear regulations and the plant’s association with psychoactive cannabis.
In the early 2000s, efforts to restore hemp cultivation began under a stricter legal framework.
Hemp Is Part Of The ‘Made in Ukraine’ Policy
Now, despite ongoing conflict and economic strain, Ukraine is moving forward with this new initiative to revive the hemp industry.
“The development of domestic processing is one of the key objectives of the government’s Made in Ukraine policy and part of the national economic idea. We have to change the structure of the economy from raw materials to high-tech and increase the production of goods with high added value,” Minister of Economy of Ukraine Yulia Svyrydenko said in a press statement. “That is why we support every new production facility that implements modern technologies. This is a step towards the recovery of the Ukrainian economy and its independence.”
As the processing of bast crops in Ukraine virtually disappeared in the 1990s, so too did the production of worsted yarn. This shift left the textile industry increasingly dependent on imports and eroded its competitiveness. To help reverse this trend, Ma’Ryzhany Hemp Company began restoring an abandoned flax mill in 2023.
As part of its expansion, the company planted 890 hectares of industrial hemp in 2024, followed by 1,200 hectares in 2025.
The company also finished building a 10,000-square-meter production facility and a 10,800-square-meter warehouse. All construction work and equipment setup are now complete. The team has also begun testing raw materials and producing initial product samples for clients.
The plant is expected to produce long fiber used in textiles and technical fabrics, primarily for export, with plans to support Ukraine’s fashion industry through domestic processing. It will also make short fiber for paper, nonwoven materials, and insulation. Additionally, fescue will serve as a raw material for bioplastics, building materials, and animal bedding.
Medical Cannabis In Ukraine
Ukraine’s changing view on cannabis and THC have extended to medical use as well.
Since the Russian invasion in February 2022 and the ongoing three-year conflict, Kyiv took steps to legalize medical cannabis in December 2023 to help address the rising public health challenges caused by the war.
The fighting has, in fact, resulted in a sharp increase in cases of post-traumatic stress disorder (PTSD), chronic pain, and other serious health issues affecting both soldiers and civilians.
President Volodymyr Zelenskyy signed the bill into law on February 13, 2024, and the new legislation officially took effect in August 2024.
“}]] Ukraine’s Ministry of Economy announced last week that the Ma’Ryzhany Hemp Company has begun operating what is now the country’s largest hemp processing facility. Read More
