Ukroboronprom

State Concern Ukroboronprom
Native name
 Ukrainian: Держа́вний конце́рн Укроборонпром
State-owned enterprise
Industry Defense industry
Founded December 2010 (December 2010)
Headquarters Kyiv, Ukraine
Area served
 worldwide
Key people
 Roman Romanov (President)[1][2]
Products Munitions, Small arms, Artillery, Explosives, Combat vehicle, Warship, Civil and military aerospace, Engines, Missiles, Electro-optical devices, CBRN defense
Revenue 6.9 Billion $ (2012)
65 Million $[3] (2015)
Number of employees
 <80,000
Website ukroboronprom.com.ua

Ukroboronprom (UOP) (Ukrainian: Укроборонпром, Ukrainian Defense Industry) is an association of multi-product enterprises in various sectors of the defense industry of Ukraine.

The concern includes enterprises, which operate in the development, manufacture, sale, repair, modernization and disposal of weapons, military and special equipment and ammunition, and participating in military-technical cooperation with foreign states.

The feasibility of combining in a single management structure of scientific, experimental, industrial enterprises and special exporters is supported by the positive effect [source?], that the concern has shown during its existence. Formation of “Ukroboronprom” made available organization of an innovation cycle "research - development - serial production - consumption (sales) - service - utilization".

To ensure optimal decision-making in different fields the State Concern uses a concept of divisional management structure. The concept was adopted taking into account current trends in theory and practice of management. Its essence is to separate strategic and operational objectives from industry operational problems management. Divisional principle is to provide administrative and economic "autonomy" of industries, delegation of administrative powers of heads of divisions.

Concern has the functions of strategic planning, interaction with public authorities and coordination with divisions. This approach will allow top management of Concern to focus on strategic decisions and long-term programs of the defense industry.

History

“Ukroboronprom” was created by the decrees of the President of Ukraine of 9.12.2010 № 1085/2010 and 28.12.2010 № 1245/2010, as well as decrees of the Cabinet of 29.12.2010 № 1221 and 31.08.2011 № 993.

The main goal of “Ukroboronprom” is the efficient management of Ukrainian military industrial sector and improvement of the effectiveness of the enterprises that are parts of State Concern.

In September 2013 five divisions were created in the structure of “Ukroboronprom”: aircraft industry and aircraft-maintenance; precision weaponry and munition; armored vehicles, automotive equipment, engineering and special equipment; shipbuilding and marine facilities; radar, radiocommunications and air defense systems.

As a separate divisions stand those, that are authorized to conduct import\export operations with military equipment and wares that hold National Security information. These enterprises conduct international sales of equipment produced by Ukrainian military industrial sector and post-sales service of equipment, maintenance and modernization.

Since 4 June 2014 “Ukroboronprom” is headed by Roman Romanov, who graduated from the International institute of Management (MiM-Kiev) and has an MBA degree. As a result of his actions, by the end of 2014 “Ukroboronprom” finally became profitable.

At the end-year 2014 “Ukroboronprom” fulfilled all government contracts by 100%. During the second half of year 2014 the enterprises of the Concern created more than 2000 jobs and 13 more enterprises became profitable. Moreover, over the second half of the year wage arrears to employees totaling to 45 million UAH. were overtaken. In 2015 “Ukroboronprom” expects to create 3000 more job opportunities.

The concern produced 3468 units of weapons and military equipment over 11 months in 2015. Managed by its new Director Roman Romanov, Ukroboronprom increased its production by several times and started to systematically provide Ukraine's Armed Forces with newest weaponry.

General background

The conglomerate was established in 2010 in place of the existing "Armored Equipment of Ukraine" (1999) and "Technological Military Service".[4][5][6][7] Initially it consisted of seven major state companies:

Currently the conglomerate includes 134 enterprises of military-industrial complex of Ukraine.[4][8] It employs some 120,000 people.[8] In 2012 eighteen of those companies were to be reorganized (Resolution #223, March 21, 2012).[9] They included:

According to the company itself, China and India are a traditional market for Ukrainian military products.[8] In 2013, the Brazilian Navy announced a potential partnership with Ukroboronprom.[11]

In March 2014, during the 2014 Crimean crisis, the company barred all exports of weaponry and military equipment to Russia.[12] Yuriy Tereshchenko, the then newly appointed head of the company, stated on 29 March 2014: "With its act of aggression, Russia had broken the regular order of life".[13] Tereshchenko also claimed: "There are some types of weapons that Russia cannot make without Ukraine’s components. Among them are aviation radars and beam holders for some types of missiles. This is a long list, not one, two or three items”.[8] Jane's Information Group believed (on 31 March 2014) that while supply may be slowed by the Ukrainian embargo, it was unlikely to do any real damage to Russia's military.[12]

Structure

State Concern consists of 134 military industry sector enterprises of Ukraine (123 state enterprises and 9 joint stock corporations, with the profits participation rights delegated to the management of “Ukroboronprom”).

Armored technology

Kremenchuk Automobile Plant

Aircraft industry

Motor Sich

Shipbuilding and marine technology

Shipbuilding Factory of 61 Communards

Special exporters


General directors

Current state

In January 2015 the executive director Roman Romanov announced that “Ukroboromprom” plans to increase the production of T-84 Oplot from 5 to 40 tanks. In 2016 it is planned to produce 100-120 tanks per year.

Moreover, the enterprises of “Ukroboronprom” are commercializing the production of armored vehicles Dozor-B, that were to be supplied to the Armed Forces of Ukraine. In 2015 “Ukroboronprom” plans to produce 50 armored vehicles and later produce non less than 100 vehicles per year.

By the end of January 2015 the management of “Ukroboronprom” and design bureau “Pivdenne” signed a contract on the cooperation on space technologies and import substitution.

At the moment, 15 “Ukroboronprom” enterprises are participating in design projects of the design bureau “Pivdenne”. 7 more enterprises are to join soon.

“Ukroboronprom” has created a military equipment identification code catalogue that is to help combine efforts of all Ukrainian military enterprises and accelerate import substitution. First edition of military equipment identification code catalogue estimates 6000 items.

On November 6, 2014 an electronic tender process trading system called “IT Enterprise” was launched. It helped save 236 022 149 hrn. in the first 10 months of functioning. On average it is 7 mln UAH. per week.

On February 5, 2015 “Ukroboronprom” announced the development of a program to reform and advance the military industrial sector which is planned until year 2020.

This year the Concern increased production of arms and military equipment by 36 times. Most of the weapons, 1767 units, are the latest models developed or modernized by Ukroboronprom. Ukroboronprom enterprises modernized 10 military aircraft units, supplied 1135 guided missiles and high-precision bombs and 243 units of rocket artillery. 1701 units of military equipment were repaired.

From November 6, 2014, to July 2015, 9912 tender auctions were conducted which saved UAH 171, 1 million.

Ukroboronprom is actively involved in international cooperation. An imports substitution program Made in Ukraine is now being introduced.

The Cabinet Minister of Ukraine has excluded the state enterprise Antonov from the State Aircraft Building Concern Antonov and included it into Ukroboronprom by a decree of March 31, 2015.

Over a period of 9 months in 2015, the enterprises of “Ukroboromprom” have supplied the Ukrainian army with a record-setting 2019 pieces of military equipment: 688 brand new vehicles and 1331 were recovered and modernized. Among them were 406 pieces of rocket and missile artillery and 35 aircraft vehicles.

University cooperation

“Ukroboronprom” began cooperation with leading Ukrainian universities like Kyiv-Mohyla Academy, Kyiv Polytechnic Institute, Kharkiv Polytechnic, V. N. Karazin Kharkiv National University, ME Zhukovsky KAU, Kharkiv National University of Radio Electronics and I. Kozhedub Kharkiv University of Air Force.

Best inventions of Ukrainian students are being embodied. Scientists of the Kyiv Polytechnic Institute have created a UAV. Students of other universities are actively involved in apprenticeship on the leading enterprises of Ukroboronprom.

New Developments

Concern enterprises completed the latest developments of guided anti-tank missile R-3, R-2M for "Corsaire" complex, as well as a helicopter missile "Alta", three-axis observation radar 80K6K1, special weapon stations for imported armored vehicles "Saxon" and HMMWV, tactical wheeled combat vehicle "Dozor-B."

Started the production of new BRDM-2DI "Khazar" (Combat Reconnaissance Patrol Vehicle). A heavy infantry fighting vehicle based on the T-64 was modernized. A production cooperation for the production of BTR-3 (10 member enterprises of Concern), BTR-4 (13 member enterprises of Concern), BM "Oplot" (8 member enterprises of Concern) was created.

The Concern started production of UAV`s built exclusively from Ukrainian-produced parts.

International Activities

"Ukroboronprom" works in cooperation with foreign partners and has signed agreements of understanding with foreign partners to deploy production in Ukraine. "Ukroboronprom" and Polish company Lubawa SA signed a memorandum on the establishment of new joint enterprise in Ukraine, which is planned to receive 1 million euros of investment.

On September 22, 2015 at the international exhibition "Arms and Security-2015" in Kiev "Ukroboronprom" agreed on cooperation with the American company «Textron» in the production of heavy armored vehicles. It was also agreed on cooperation between the state enterprise “Antonov” and Polish company “WB Electronics”. Ukraine will use the technology of the Polish company to develop a new tactical unmanned aviation complex for the Armed Forces.

At the XII International specialized exhibition "Arms and Security 2015" "Ukroboronprom" signed a memorandum of cooperation with transnational company Flir Systems to supply thermal imaging equipment for the needs of Ukrainian army and upgrade Ukrainian armored vehicles with these devices and a memorandum with the Canadian company Inkas on modernizing armored vehicles and creation of a modern service center. "Ukroboronprom" signed an agreement with a Turkish company Aselsan to modernize Ukrainian armored vehicles with electro-optical systems. "Zhytomyr armored factory" signed a cooperation agreement with the Polish company PSO, under which the plant will get production technology and equipment for armored vehicles optical devices.

In one of the largest Asian international defense exhibitions “Defense & Security-2015” "Ukroboronprom" signed a framework agreement with an enterprise authorized by the Ministry of Defence of Thailand on the production of modern Ukrainian BTR-3E1 in the kingdom. Parties are to organize the assembly and production of armored vehicles and various modifications on its base.

On October 9, 2015 "Ukrspetsexport", which is part of the "Ukroboronprom", signed an agreement on cooperation in the aviation sector with "Kazakhstan Aviation Industry". Cooperation includes the organization at the Aviation Technical Center LLP "KAI" (Astana) service center for maintenance and repair of "Antonov" aircraft and industrial cooperation in the manufacture of components for these aircraft. The parties also agreed on the development and production of civil and military drones and supply, repair and maintenance of aircraft training simulators.

On November 12, 2015, at the International Aviation Salon Dubai Air Show, "Antonov" and the company Taqnia Aeronautics signed two memoranda on cooperation in advancing to the market of Saudi Arabia 4 sanitary AN-148-100, 4 reconnaissance and rescue variants of the An-132 and 2 aircraft-based jamming devices.

On November 19, 2015 "Factory 410 CA", which is part of the Concern, has signed a new contract with the air forces of Egypt. The enterprise is to adapt three aircraft An-74 to the countries requirements.

In addition, Ukraine has successfully fulfilled a contract with India for 400 million dollars. "Factory 410 CA" made a major overhaul and re-equipment of modernized military transport aircraft An-32RE.

According to forecasts, the total export contracts concluded by the "Ukroboronprom" in 2015 will be worth almost $1 billion. Concern is also cooperating with NATO. The Alliance is considering the possibility of participation of the equipment developed in Ukraine in the naval exercises. Concern is actively working on bringing Ukrainian defense products to NATO standards. A separate unit within the Concern, which consists of 8 companies, participated in a working group on NATO Codification AS-135 and obtained access to NATO database online.

Ukrainian Shield program

Ukrainian Shield, a new Ukroboronprom project, provides high-tech manufacturing, defense investment and equipping the army with modern types of armaments. General Director of Concern Roman Romanov presented it at Reform of Ukroboronprom International Forum and the new possibilities of cooperation on November 26, 2015.

The key aspects of the program are import substitution, production optimization and balancing the labor forces. Concern enterprises are to get high-tech equipment and to focus on the production of modern weapons and military equipment according to the international standards.

Currently a bill is being drafted that will allow Ukroboronprom to create joint ventures with Western partners. This will give the green light for global companies to directly invest in the Ukrainian economy and create the conditions for a rapid development of the domestic defense industry.

Products

See also

References

  1. ↑ Ukroboronprom. "Director general - Ukroboronprom".
  2. ↑ Poroshenko appoints Roman Romanov as new head of Ukroboronrom (Report). Interfax-Ukraine. 4 July 2014. Retrieved 6 July 2014.
  3. ↑ http://en.interfax.com.ua/news/economic/329647.html
  4. 1 2 Poroshenko appoints Roman Romanov as new head of Ukroboronrom, Interfax-Ukraine (4 July 2014)
    Ukroboronprom announces new Director General, Jane's Information Group (6 July 2014)
  5. ↑ В Харькове создан концерн Бронетехника Украины. Компаньон. 05.11.1999.
  6. ↑ ПОСТАНОВЛЕНИЕ КАБИНЕТА МИНИСТРОВ УКРАИНЫ от 25 декабря 2002 года №2028. Resolution of the Cabinet of Ministers. 2002.
  7. ↑ Концерн «Укроборонпром» зарегистрируют в ноябре.
  8. 1 2 3 4 Ukroboronprom director says weapons shipments to Russia stopped three weeks ago, Kyiv Post (15 April 2014)
  9. ↑ Cabinet instructed "Ukroboronprom" reorganize state-owned enterprises that fall under its administration
  10. ↑ Registry of projects and adopting project numbers of ships. Ukase #436, November 22, 2006. Ministry of Industrial Policy of Ukraine
  11. ↑ http://www.kyivpost.com/content/world/brazil-sees-ukraine-as-possible-partner-in-brazilian-navy-modernization-programs-327811.html
  12. 1 2 Ukraine bars defence exports to Russia, Jane's Information Group (31 March 2014)
  13. ↑ Yuriy Tereshchenko: Ukraine's arms concern needs to be cleaned of corruption, built from scratch, Kyiv Post (29 March 2014)
  14. ↑ Lviv Armored Vehicle Plant
  15. ↑ Lviv State Repair Plant
  16. 1 2 Ukrainian instability leads to leadership change at Ukroboronprom, Jane's Information Group (19 March 2014)
  17. ↑ http://www.defenseworld.net/news/8843/Sales_To_China__Thailand_Bring_In_Big_Profits_For_UkrOboronProm#.UgL9TqySGUk
  18. ↑ http://news.xinhuanet.com/english/world/2013-06/19/c_132468798.htm
  19. ↑ http://www.ukrainianjournal.com/index.php?w=article&id=16966
  20. ↑ Ukrainian troops to use Ukraine-made Hopak portable rifle, UNIAN (Oct 20, 2015)
    Ukrainian Defence Concern represented a new «Hopak» rifle, Defence Blog (Oct 19, 2015)
    The Hoplite, ARES (May 6, 2015)
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