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STATEMENT OF UKROBORONPROM DIRECTOR GENERAL ROMAN ROMANOV
STATEMENT OF UKROBORONPROM DIRECTOR GENERAL ROMAN ROMANOV
UOP Supervisory Board is finishing selecting candidate for the position of UOP Director General
Due to the fact that Roman Romanov's resignation letter was submitted at the end of 2017, and yesterday the President of Ukraine signed the decree, UKROBORONPROM (UOP) Supervisory Board is finishing the process of selecting a candidate for the President of Ukraine to appoint a new Director General. "I want to thank Roman Romanov, who is leaving this post. He had to work during the the most difficult years for our country: Dramatic transformations in the domestic defense sector took place during this time. Ukrainian defense industry in 2014 and today – it's like night and day. Paced work of the factories, implementation of the State Defense Order, successful implementation of the import substitution program, building missile shield and the latest developments - all of these create an integral system of positive changes, achieved by the team of Roman Romanov. It's a pity to lose a highly professional manager. There’s no doubt that Roman Romanov will receive cooperation offers from a number of domestic and foreign companies. Now the joint task of the UOP team is to continue the reforms and ensure the further growth of the State Concern. Openness, efficiency, and innovation are three key principles that should be laid in the basis of further progress of the domestic military-defense complex", - said Mykhaylo Zhurovs’kyy, Chairman of UOP Supervisory Board.
UOP AVIATION CLUSTER 1.5 TIMES INCREASED NET PROFIT: 12 bln UAH in 2017
UOP Aviation cluster - created in summer 2016 - 1.5 times increased net profit. Real-time data from 20 enterprises - part of this production association - confirm this fact. In 2017, net income of this cluster amounted to more than 12 billion UAH, and the net profit amounted to 0.9 billion UAH, while in 2016 these indexes were at the level of UAH 8.2 billion and UAH 0.7 billion. At the same time, the average salary at the enterprises of UOP Aviation cluster amounts to 9,320 UAH, while average wage in Ukraine, according to data available, is about 6,850 UAH. The leader of UOP aviation cluster – according to 2017 results – is the SE “Antonov” that keeps increasing net income. In 2017, this index, according to operational data, amounted to UAH 5.9 billion UAH, which is 1.6 as much as the index of 2016. “Antonov” also increased net profit, which in 2017 amounted to 180 million UAH. Beginning in 2015, since it became the part of the SC “Ukroboronprom”, the leader of the aviation cluster keeps increasing its profitability by 4 times. At the same time, the average salary at the enterprise, providing about 10 thousand specialists with work, is UAH 9 034. And the top earners in this field are specialists of the State Enterprise "Lutsk Repair Plant"Motor "with the average salary of 13,108 UAH, which is almost half again as high as the average salary in Kyiv. The enterprise specializes in overhaul of engines for Ukrainian fighters; in 2017 the plant received net revenue of over one billion, almost twice as much as in 2016. And the profit of the company increased almost 5 times, amounting to 250 million UAH. 2017 became a year of UOP aviation cluster: two historical aircraft for Ukrainian aircraft manufacturing hit the sky – on March 31, 2017 – An-132D, and on November 8 – combat drone "Horlytsya". A large-scale work was carried out on the repair and modernization of aircraft and helicopters that Ukrainian Air Forces are operating, including fighter aviation.
DENYS GURAK ABOUT TRANSFORMATION, ATO EXPERIENCE AND COOPERATION WITH NATO – Jane’s Defence Weekly interview
UkrOboronProm (UOP) aims to employ the knowledge it has gained from Ukraine’s conflict with Russia to provide advanced research and development (R&D) and break into the defence supply chains of NATO countries, according to its Deputy Director General for foreign economic activity, Denys Gurak. UOP is the state concern in Ukraine responsible for 130 separate defence holdings, including the Kharkov Morozov Design Bureau and Antonov, the company responsible for the An-124 freighter aircraft. The deputy director general emphasised that in the next five to 10 years he expects UOP to face many challenges. “Challenges are quite similar to opportunities; we are undergoing a transformation from the point of view of our assets, as well as our business model. Now the cornerstone of our strategy is to integrate ourselves into NATO/Western supply chains,” he told Jane’s . Gurak noted that implementing this strategy will require a complete transformation of UOP’s business model and stressed that the company must move its focus from users of Soviet-era equipment to become a key supplier for NATO member states. However, he added that “there are a lot of cases where UOP already modernises Soviet equipment to NATO standards”, pointing to its recent R&D efforts to develop the PT-17 main battle tank (MBT) in conjunction with Poland as an example. This project has involved upgrading the T-72 into a NATO-compatible tank, which the deputy director general described as “very relevant to Baltic states as well because of the costs and the problems associated with using big Western tanks in areas such as the Baltics”. Asked how UOP plans to break into Western markets, Gurak said, “We, of course, need to target traditional Western markets such as France, Germany, and the United Kingdom. We will start with production outsourcing as well as R&D outsourcing.” He added that a vital part of the company’s strategy will be to continue to “build trust in its key competitive advantages, advanced manufacturing capabilities, good cost base, as well as the company’s military engineering capability”. According to Gurak, UOP is uniquely placed among Western defence companies and those that provide equipment for NATO member states because Ukraine is one of the only European countries to have fought modern Russian weaponry. Highlighting the importance of this experience, he said, “NATO members have started studying the conflict in east Ukraine.... UOP already has experience and an understanding of the conflict and so can offer first-hand advice.” He suggested that the main challenge “is operating in a heavily denied area in terms of electronic warfare [EW]” and that “Russia is using much more EW that NATO countries and Ukraine is working with NATO members to study this”. “Ukraine has the same EW school as Russia and is more advanced in some areas,” Gurak added. “Knowing the peculiarities of the equipment and how it is used helps to design and develop equipment to combat it.” UOP has worked with the Ukrainian Ministry of Defence (MoD) to develop new methods for using artillery in densely populated areas, as well as specific tactics for countering heavily armoured vehicles with manportable anti-tank weapons. Ukrainian sources have revealed that special forces from NATO states have visited Ukraine to conduct training and to learn from Ukraine’s experience of warfare against Russian units. According to the deputy director general, this is all having a positive impact on UOP’s reputation among NATO allies. Despite the obvious negative consequences, according to Gurak the war in eastern Ukraine has had many benefits for the Ukrainian defence industry, which has been forced to adapt to the new circumstances. “Pre-2014 the defence industry in Ukraine was basically dormant; there was no strategy and no goals,” he explained. “We were acting on sporadic export orders in traditional markets such as north Africa or Asia.” However, since the start of the war more than 16,000 pieces of equipment have been supplied to the Ukrainian MoD by UOP, which Gurak noted has had the added technological benefit of being able to test its equipment against a considerable adversary. He pointed to the BTR-3DA infantry fighting vehicle as an example. “The equipment is used against a near-peer threat, rather than the weaker adversaries that NATO has faced in recent years,” he said. “As a result up to 200 engineering changes have been made to those APCs based on advice and communication from the users in very active combat operations.” Meanwhile, UOP has announced plans to open some of its stock up to private stakeholders: a development that is welcomed by Gurak. He noted that private defence companies in Ukraine, such as TechImpex and Praktika, provide healthy competition and possible technological partnerships that will benefit the country’s defence industry as a whole. In relation to UOP’s current position he said, “We are currently in the middle of an international audit and, once the assets have been structured into specific areas of production, it will be time to start offering shares.” The conflict in the Donbass region has certainly given the Ukrainian defence industry the impetus to adapt and grow. Among the products UOP is currently developing Gurak highlighted “missiles, such as ATGMs [anti-tank guided missiles] and soon 122 mm rounds for the Grad [multiple rocket launcher – MRL], and precision-guided 300 mm missiles for the Smerch [MRL]”. “Radio electronics is another big sector,” said Gurak. “We will hopefully be announcing [the marketing of new] EW systems, such as the 80K6T 3D radar, which was presented at the Kiev exhibition [in October 2017].” He also anticipates a greater presence for UOP in the air transport market. He noted that currently many NATO countries rely on the commercial fleet of An-124s operated out of Ukraine for strategic airlift capabilities, while a commercial Mi-26 heavylift helicopter from Ukraine has been used to provide emergency lift capability to NATO forces in Afghanistan. The deputy director general concluded that he believes these steps are just the beginning of UOP’s transformation, emphasising that there are many opportunities ahead and that he intends the company to become a prominent player in the West European defence market.
REGULAR MEETING OF THE EXPANDED COMMISSION ON "MYKOLAIV SHIPBUILDING PLANT" WAS HELD
The expanded commission regarding the SE “Mykolaiv Shipbuilding Plant” - Mykolayiv Plant management representatives, representatives of UKROBORONPROM, the Mykolayiv Regional State Administration, Ukrainian Navy, as well as representatives of labor unions - reviewed the state of the enterprise and further ways to solve problems. In the judgement of all the participants, further fate of the GM cruiser is the key factor in solving enterprise wage arrears. Keeping GM cruiser since the end of 2014 is being carried out at the expense of the enterprise, as the budget does not allocate funds to the Ministry of Defense of Ukraine to pay for these works. Thus, the budget debt to the State Enterprise "Mykolaiv Shipbuilding Plant" now amounts to more than 80 million UAH, while the accumulated wage arrears amount to 65+ million UAH. Since 2016, the SE "Mykolaiv Shipbuilding Plant keeps waiting for the decision of the Cabinet of Ministers on the further fate of the GM cruiser. "We are manufacturers, we do what the customer orders. This can be either demilitarization of the cruiser or finishing building. "There is no way out of this situation without immediate decision of the Cabinet of Ministers concearning the GM cruiser," – emphasized Valeriy Kalashnikov, the acting director of Mykolaiv Shipbuilding Plant. "We are also interested in adoption of the rule. If the cruiser is demilitarized, its weapons will enhance the existing warships" said Andriy Polishchuk, Deputy Commander of the Ukrainian Navy. We must note that the issue of maintaining GM cruiser is of key importance for Ukraine. This is the ship of 11,500 tons and a 186.4 meters length, if the work on its maintenance is not carried out, the vessel might sink and that will lead to an environmental disaster, pollution of the waters of Inhul, Southern Bug and the Black Sea. In turn, the cost of raising the ship of this class and eliminating the consequences of the disaster will cost hundreds of millions of hryvnias. At the same time, the SE “Mykolaiv Shipbuilding Plant” continues works on ensuring break-even activity. Meetings with representatives of the Naval Forces of Ukraine have already been held; they considered the possibility of repairing the warships at the Mykolaiv Shipbuilding Plant. Also, during the meeting, it was decided to appeal to the local authorities of Mykolayiv to join the decision of their colleagues from other cities of Ukraine, which already remitted land tax for defense enterprises. In SE “Mykolaiv Shipbuilding Plant” case, it’s about 700 thousand hryvnias land tax per month, which is about 8.5 million UAH per year - accrued despite the state of the enterprise.
Combat module "Taipan"
In the framework of international exhibition "Arms and Security" (Kiev) Ukrainian public premiere of the combat module "Taipan" - developed by UOP SE "SpetsTehnoEksport" - was held. Specifications of the new combat module "Taipan" meet the highest Western standards. Installed system of backlash planetary gearboxes and ac converter-fed motors, provide precise targeting at ultra slow and high speeds make combat module “Taipan” unique. Owing to modern electronics, "Taipan" provides automatic targeting, keeps armament in the defined position, regardless repositioning of the combat vehicle’s hull in motion, providing automatic tracking of a target. Automated targeting system - with allowance for weather, projectile type, armament type, angular velocity and target range - is installed into the combat module. Also fighting module installed automatically issuing commands guidance given weather conditions, such as shells, type of arms, angular velocity and range goals. Sight system can be adjusted both to the line-of-sight and horizon line. Currently, “Taipan” is equipped with a rapid-fire cannon caliber double-barreled 23 mm, the effective range of which reaches 1.8 km. Other combat module modifications can be equipped with a machine gun 7.62 mm or 12.7 mm, and 30 mm grenade launcher with a separate elevation drive unite. The minimum weight of the combat module is only 350 kg. In addition, this module can be mounted not on mobile platforms only, but also equip fortified structures - such as checkpoints - controlling the module remotely, or use it as a SAFU without power supply, the combat module "Taipan" can work 3 hours in such a mode. “Together with our Ukrainian partners we have created combat module technical characteristics of which will arouse Ukrainian armored vehicles producers’ interest. Moreover, all the electronics and software are designed by Ukrainian specialists”, – said director of SFTE “Spetstehnoeksport” Pavlo Barbul.
UKROBORONPROM State Enterprise "Zhytomyr Armored Plant" adapted German Deutz engine for use in infantry fighting vehicles. Modernized infantry vehicle received its official name BMP-1UMD. The first public demonstration of BMP-1UMD took place at the exhibition "Arms and Security", October 11 at the International Exhibition Center in Kiev. Works on Russian UTD-20 replacement by Deutz TCD2013 L64V took only three months. This 4-stroke, 6-cylinder turbosupercharged engine with electronic control unit has 330 hp power, with the possibility of increasing power up to 390 hp, while UTD-20 engine has only 300 hp. In addition, the German engine has significantly more resources it quieter and more economical. "Infantry fighting vehicle adaptation for German Deutz engines use is another step in UOP import substitution program fulfillment. Other Ukrainian armored vehicles such as BTR-4 - produced by SE “Kharkiv Morozov Machine-Building Design Bureau” - are equipped with engines of this manufacturer,” - said the head of the SC" UkrOboronProm" Roman Romanov. Works on improvement of firepower, fire control, ergonomic and functional characteristics of the vehicle were carried out when working on BMP-1UMD. Special attention Ukrainian specialists paid to camouflage in visible and IR band.
PHANTOM – WARRIOR OF THE FUTURE. PUBLIC PREMIERE AT "ARMS AND SECURITY"
"Phantom" is one of the most advanced developments of UKROBORONPROM SE "SpetsTehnoEksport". It is the first step in development of advanced systems that will replace traditional armament. The first public demonstration of tactical unmanned multipurpose vehicle "Phantom" took place at the exhibition "Arms and Security", which started on October 11 at the International Exhibition Center in Kiev. "Unmanned multipurpose tactical vehicle" Phantom" is a response to the challenges of technological era, pressing its demands to creating entirely new armament types: unmanned, multi-functional and capable of performing tasks that are now performed by soldiers only, endangering their lives. These are the characteristics, demonstrated by "Phantom", "- said the head of the SC "UkrOboronProm" Roman Romanov, explaining the peculiarities of the new unit of the military equipment. Tactical Unmanned multipurpose vehicle “Phantom” is a remotely operated mini armored carrier. Day and night sighting systems allow to fire at any time of the day for a distance of over 1 km. Its operational range is up to 20 km, it is operated by means of secure radio channel or via fiber cable of 5 km length. “Phantom” can transport ammunition, retrieve wounded from the battlefield and perform combat missions. "Phantom" capabilities are difficult to overestimate: they allow him to perform a wide range of tasks. This equipment can deliver ammunition and loads across the areas that are under the threat of enemy fire, or at risk of mining, to safely and quickly evacuate wounded from the battlefield. Different types of armament can be mounted on "Phantom" for fire support. For example, if "Phantom" is equipped with anti-missile system - the army receives nearly invisible, mobile and effective means of enemy armored vehicles’ destruction,"- said the head of SE "SpetsTehnoEksport" Pavlo Barbul. The XIII International Specialized Exhibition "Arms and Security - 2016" will be held 11-14 October 2016 at the International Exhibition Center, which is located at Brovary Avenue, 15.
UKROBORONPROM FULFILLED STATE DEFENSE ORDER: 3673 UNITS OF weapons and military equipment TRANSFERRED
APC 4МВ1 IN ACCORDANCE WITH NATO STANDARDS
Ukrainian UAV "Horlytsya": First flight
UKROBORONPROM REPRESENTS UKRAINE AT “DEFENSE & SECURITY-2017”
M4 – WAC-47 carbine submachinegun testing
UKROBORONPROM TESTS TANKS BEFORE TRANSFERRING THOSE TO THE ARMED FORCES OF UKRAINE
UOP innovations in the 1st quarter of 2017
APC 3DA with COMBAT MODULE “SHTURM” – VIDEO
“SHKVAL” AND “STILET” FIRING TRIALS
An-132D: preparing for tests
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