Despite facing persistent structural challenges, the Cypriot manufacturing industry continues to demonstrate remarkable resilience in the face of international turbulence, according to the Employers and Industrialists Federation (Oev).

Moreover, the organisation has stressed that bolstering the sector’s competitiveness through controlling production input costs is essential for unlocking its full potential.

These issues will be thoroughly examined during the Oev’s annual general assembly, set to take place on Wednesday, May 7, 2025, at the Hilton Nicosia.

The event will be attended by president Nikos Christodoulides, who will also deliver an address, according to an official announcement.

Oev noted that Cyprus’ manufacturing industry recorded a growth rate of 2.8 per cent in 2024, showing a slight decline compared to the 3.4 per cent growth achieved in 2023.

In addition, the sector’s contribution to GDP stood at 6.5 per cent.

Despite prevailing challenges, Oev maintained a high level of activity throughout the year to promote the sector’s significance to the Cypriot economy.

A key highlight was the preparation and submission of a comprehensive proposal to the president for a new Industrial Policy and Action Plan for the 2024–2029 period.

This proposal, the federation noted, was developed through consultations with professional associations within the industrial sector, associations of manufacturers in state industrial areas, industrial zone management committees, and major exporting industries.

The proposed policy is structured around six strategic pillars and encompasses a total of 55 actions for the next five years.

Among its top priorities is the reduction of energy costs, a critical factor in enhancing the sector’s competitiveness.

It also aims to facilitate the employment of workers from third countries in technical professions and to introduce targeted incentives to promote exports.

Other focal points include the upgrading and smooth operation of industrial areas, and ensuring fair competition with products originating from the occupied areas, in line with the Green Line Regulation.

Also, the policy calls for the establishment of a dedicated oversight body, such as a deputy ministry or a general directorate of industry, to effectively coordinate and monitor industrial development.

In parallel, OEB noted that its efforts in 2024 also focused on a wide array of industry-specific issues.

It held consultations with the relevant ministry regarding the implementation of a new grant scheme for large-scale industries and organised informational presentations on financial schemes offered by competent ministries.

It also actively promoted the Cypriot defence industry, industrial participation in procurement programmes, and collaboration with academia for innovation purposes.

What is more, Oev hosted a meeting between export-oriented businesses and the Energy Ministry’s trade service, and submitted proposals for the extension and improvement of existing grant schemes.

It also sent a memorandum to the Finance Ministry advocating for enhanced industrial extroversion, and implemented specialised training programmes to support the sector’s development.

The federation also submitted proposals for improving infrastructure in industrial areas, contributed to the establishment and operation of the management committee for the Strovolos Industrial Zone, and welcomed new industrial associations from Ypsonas, Frenaros, and Deryneia into its ranks.

Special attention was paid to fire safety issues in the Geri – Idalion Industrial Zone, along with visits and meetings held with the Energy Ministry and the House industry committee in various districts.

“The Cypriot manufacturing industry, despite the difficulties and structural problems, manages to survive because, as has been proven, it is particularly resilient to international disruptions,” said Oev.

“What is needed is support for competitiveness through the containment of production factor costs in order to fully unleash its potential,” the federation added.

“All of the above issues will be central to discussions at the Oev’s annual general assembly, during which the president of the Republic will be in attendance and deliver a speech,” the federation concluded.