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UKROBORONPROM ADOPTS PLAN OF ANTI-CRISIS MEASURES FOR KHARKIV STATE AIRCRAFT MANUFACTURING COMPANY

UKROBORONPROM ADOPTS PLAN OF ANTI-CRISIS MEASURES FOR KHARKIV STATE AIRCRAFT MANUFACTURING COMPANY UKROBORONPROM ADOPTS PLAN OF ANTI-CRISIS MEASURES FOR KHARKIV STATE AIRCRAFT MANUFACTURING COMPANY State Concern Ukroboronprom, Ukraine's largest defense contractor, keeps on taking measures to increase production and for financial recovery of the Kharkiv State Aircraft Manufacturing Company. As it was reported earlier, change of management was performed back in April, and Kharkiv State Aircraft Manufacturing Company has partially repaid the debts on wages (9 mln UAH, over 320,000 USD, including taxes) with the support of Ukroboronprom. In addition, the Board of Directors of the Concern a few weeks ago considered a plan of anti-crisis measures has been considered at the meeting. "Today I approved this plan after its finalization. The document contains a clear roadmap and will enable the company improve its financial and economic situation. However, in order to steer the company out of protracted financial crisis to the break-even point, we need a consolidate team and support of Ukraine's Cabinet of Ministers and the Parliament. We are currently in active process of negotiations with Ukrainian and foreign companies to attract investment in this strategic enterprise," Yuriy Husyev, the head of Ukroboronprom, said. Back in December 2020, on behalf of Ukraine's Prime Minister Denys Shmyhal, the State Concern placed a draft law on financial recovery of the Kharkiv State Aircraft Manufacturing Company before Ukraine's Ministry for Strategic Industries. On a daily basis Ukroboronprom is working to receive state contracts for An-74 aircraft. A relevant letter of appeal was sent to Oleksandr Zavitnevych, the Chairman of the Verkhovna Rada Committee on National Security, Defense and Intelligence with a proposal to improve the mechanism for concluding state-guaranteed contracts on manufacturing of aviation equipment. This applies not only to Kharkiv State Aircraft Manufacturing Company, but also other companies that are in a difficult financial situation. "We ask the Government to approve the relevant draft resolution as soon as possible, which we have already sent for consideration. In case it is approved Kharkiv State Aircraft Manufacturing Company and other strategic enterprises shall become able to operate and satisfy the requirement of state customers," Ukroboronprom's General Director said.

UKROBORONPROM TO CREATE INDUSTRIAL PARK IN MYKOLAIV

UKROBORONPROM TO CREATE INDUSTRIAL PARK IN MYKOLAIV UKROBORONPROM TO CREATE INDUSTRIAL PARK IN MYKOLAIV On behalf of Ukraine's President Volodymyr Zelenskyy the team of Ukroboronprom is working on founding an industrial park in Mykolaiv as well as continuing preparations for the international conference on innovations in the defense industry, which will take place in Odesa this year. On May 7, as part of a working visit to the south of Ukraine, General Director of the State Concern Ukroboronprom Yuriy Husyev had a meeting with Serhiy Hrynyvetsky, the head of the Odesa Regional State Administration, and senior managers of the Odesa National Polytechnic University. The future event is meant to bring together manufacturers, scientists, experts and international partners. "We are convinced that this will contribute to the development of Ukraine's defense industry. There is no doubt that we are able and we have to become a driver of innovation in our country," the General Director of Ukroboronprom Yuriy Husyev said. Furthermore, Ukroboronprom together with the Mykolaiv Regional State Administration works on creation of new industrial park on the basis of the State Enterprise "Shipyard named after 61 Communards", which is a part of Concern. "The President of Ukraine has set clear goals to develop defense industry enterprises and to create an industrial park in Mykolaiv, which is also supported by Ukraine Invest and is part of the strategic action plan of the Mykolaiv Shipyard. With a consolidate team we are working to improve Ukraine's legislation on industrial parks. The relevant draft law has already been voted for in the first reading in Ukraine's parliament. Its further processing is underway", the head of Ukroboronprom announced. [gallery columns="2" size="medium" ids="12617,12618"]  

NATO SUPPORTS UKROBORONPROM IN ITS REFORM

NATO SUPPORTS UKROBORONPROM IN ITS REFORM NATO SUPPORTS UKROBORONPROM IN ITS REFORM On April 29 leaders of Ukraine's largest defence contractor Ukroboronprom had a meeting with Oleksandr Vinnikov, the head of the NATO Liaison Office, and representatives of the NATO headquarters. Support and assistance to Ukroboronprom in the realization of the defence industry reform was the subject for the discussion among other topics.    Yuriy Husyev, the Head of the state concern spoke of the pace of the reform of Ukraine's defense industry complex based on the Organisation for Economic Co-operation and Development - transparence, openness, accountability proper administration.   “Ukroboronprom intends to introduce new world developments, to modernise scientific and manufacturing base of member enterprises, as well as to create extremely favourable environment for technology transfer. This all shall become possible after Ukraine's parliament adopt the draft law 3822 , which is currently under consideration by the Verkhovna Rada Committee on National Security, Defence and Intelligence before it is discussed in the parliament in the second reading. And before that in the framework of preparation for corporatisation we put on table having a scientific and practical conference in innovations in Ukraine's defence," Yuriy Husyev, General Director of Ukroboronprom said.   Roman Bodnar, the first Deputy General Director told about the progress in implementing anticorruption policy and compliance by the state concern, he also offered the NATO Liaison Office to hold a hackathon with weapon and military hardware developers in order to develop artificial intelligence and machine learning for manufacturing.   As it was reported earlier, Ukroboronprom pays great attention to the educational programs. Thus, the Concern together with the National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute” opened the School of Professional Development for Design Engineers. The partnership stipulates for creating a training program for design engineers named after Oleh Antonov. Ukroboronprom is also cooperating with the Kyiv School of Economics, National Aerospace University named after M. Zhukovsky, Odesa National Polytechnic University and other leading educational and scientific institutions. [gallery columns="4" ids="12597,12596,12594,12593"]

STAFF CHANGES AT UKROBORONPROM

STAFF CHANGES AT UKROBORONPROM STAFF CHANGES AT UKROBORONPROM Deputy General Director for Asset Management Mustafa NAYYEM leaves Ukraine's largest defense contractor Ukroboronprom. In order to optimize the organizational structure of the State Concern, the position of Deputy General Director for Assets will be eliminated. In general, the staff of Ukroboronprom will be optimized by 10%. Ukroboronprom is nowadays demonstrating good indicators and positive dynamics. Due to the titanic work of the whole team, we have flattened out manufacturing, increased exports, expanded markets, and begun an unprecedented transformation of national defense industry. However, this is only one part out of many difficult ones on a very important direction. The most responsible leap is still ahead -- the most important team race in the direction of successfully implemented corporate model of effective management of public sector in defense industry. We thank Mr. Nayyem and other employees for their work and achievements.

UKROBORONPROM TO HOLD INNOVATION RESEARCH-TO-PRACTICE CONFERENCE

UKROBORONPROM TO HOLD INNOVATION RESEARCH-TO-PRACTICE CONFERENCE UKROBORONPROM TO HOLD INNOVATION RESEARCH-TO-PRACTICE CONFERENCE State defence conglomerate "Ukroboronprom" initiated a scientific-practical conference on innovations in the defense industry complex of Ukraine. The event is scheduled for June in Ukraine's Southern port city of Odesa. The conference shall bring together persons of keen intellect from the country's leading universities, scientists and manufacturers of weapons and military hardware. Representatives of the State Concern will introduce and propose for experts' consideration a draft strategy for research, production and innovation development of companies - members of the Concern. Ukroboronprom intends to implement the latest world developments, modernize the research and production base, as well as to create the most favorable conditions for technology transfer and education of a new generation of engineers and designers. "All these are integral components of the reform of the defense industry and the State Concern, without these priorities it will be extremely difficult to strengthen country's defense capacity, stay competitive and move forward. Implementing these priorities should ensure we successfully overcome global challenges and go with the newly shaping trends in military-technical sphere", Yuriy Husyev, the general director of Ukroboronprom, notes. As it was reported earlier, State Concern "Ukroboronprom" opened the School of Professional Development for Design Engineers together with National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute” (KPI). The partnership stipulates for creating a training program for design engineers named after Oleh Antonov. Ukroboronprom is also cooperating with the Kyiv School of Economics, National Aerospace University named after M. Zhukovsky, Odesa National Polytechnic University and another leading educational and scientific institutions.

UKROBORONPROM IMPLEMENTS COMPLIANCE INTRODUCTION ROADMAP

UKROBORONPROM IMPLEMENTS COMPLIANCE INTRODUCTION ROADMAP UKROBORONPROM IMPLEMENTS COMPLIANCE INTRODUCTION ROADMAP Ukraine's state defence conglomerate Ukroboronprom is completing the first stage of executing of the roadmap for the implementation of the compliance function - a system of rules and regulations governing corporate relations of employees with each other and with third parties. Specifically, the Code of Corporate Ethics has already been approved and compliance policies and procedures are being adopted. Mykola Royenko, the Head of the Compliance Department at the State Concern "Ukroboronprom", reported that at the XII annual Antofraud'21 Forum, attended by top managers of leading companies and government agencies in the field of fraud, compliance, internal audit, security, legislation and cybersecurity. Reform of Ukroboronprom and the introduction of the compliance function in the State Concern was discussed at the Forum. Compliance is an important part of corporate governance reform, which will take place in accordance with the OECD Guidelines. "We are currently developing methodology and training Concern's employees. We are convinced that the implementation of the compliance function will be an effective tool for preventing and minimizing corruption risks, preventing conflicts of interest, non-compliance with standards or violations of the law, which is of high importance during the hybrid war," Mykola Royenko said. [gallery ids="12571,12572,12570"] Ukroboronprom's Compliance Office was launched as part of the Concern's corporate governance reform. The office is responsible for developing and implementing employees and contractors integrity policy in accordance with international standards of corporate governance, internal documents and procedures of preventing financial fraud, as well as the settling conflicts of interest. Compliance is a system of rules and regulations that regulate corporate relations of employees with each other and with third parties: partners, contractors, government officials and other participants of the production process. Such rules and norms within the framework of the company's policy of openness and transparency include the Code of Corporate Ethics and the Anti-Corruption Program, which have been developed around the best world practices of corporate governance. The Code of Corporate Ethics defines the main goals and principles of business conduct for every employee within the declared corporate values ​​of the Company and the achievement of the main mission of the Company - ensuring the country's energy independence. This document regulates the relationship of the company's employees with each other, with partners and third parties within the current legislation of Ukraine and international standards.

KEY PERFORMANCE INDICATORS OF 2020 OF BUSINESS ENTITIES WITHIN UKROBORONPROM SPHERE OF MANAGEMENT

KEY PERFORMANCE INDICATORS OF 2020 OF BUSINESS ENTITIES WITHIN UKROBORONPROM SPHERE OF MANAGEMENT KEY PERFORMANCE INDICATORS OF 2020 OF BUSINESS ENTITIES WITHIN UKROBORONPROM SPHERE OF MANAGEMENT Net profit of Ukroboronprom State Concern increased by 108.36% and amounts to 2.5 billion UAH (over 89 mln USD) in 2020 compared to 2019 1.2 billion UAH (over 64 mln USD). The implementation of 2020 financial plan amounted to 121.9% (planned net profit was 2.096 billion UAH, over 75 mln USD). In 2020, almost all key indicators improved as well: income increased by 5%, operating profit had 10-fold increase 2.5 times, and operating margin reached 13% (2.3-fold growth).   Net income of Ukroboronprom in 2020 increased by UAH 1.7 bln UAH (over 60 mln USD) compared to the previous year and amounted to 37.4 bln UAH (1.2 bln USD).   Ukroboronprom's operating profit in 2020 amounted to 4.9 billion UAH (over 175 nmln USD) compared to 1.4 bln UAH (over 50 mln USD) back in 2019.   The portfolio of orders of the Concern's enterprises increased by 21% in 2020. Specifically, there was an increase in the number of new orders in direct sales and government defense orders (73% and 79%). "Our tasks for 2021 are: to increase production and ensure timely and high-quality execution of contracts under the state defense order, which has already been approved by the Verkhovna Rada Committee on National Security, Defense and Intelligence; to grow exports of goods and services, which shall return Ukraine to the top ten countries in the global weapons market. And, of course, the successful implementation of a comprehensive reform of the state defense industry, "- Yuriy Husyev said, General Director of Ukroboronprom.     In addition, enterprises of Ukroboronprom managed to perform contracts on state defense orders by 100% even against decline in domestic production in all sectors of industry, despite the delay in financing by the state for over 3 months, late contracting of enterprises, which began only in the second quarter of this year, and restrictions due to coronavirus and lockdown measures.  

ZHYTOMYR ARMORED PLANT HANDS OVER ANOTHER BATCH OF INFANTRY FIGHTING VEHICLES AHEAD OF SCHEDULE

ZHYTOMYR ARMORED PLANT HANDS OVER ANOTHER BATCH OF INFANTRY FIGHTING VEHICLES AHEAD OF SCHEDULE ZHYTOMYR ARMORED PLANT HANDS OVER ANOTHER BATCH OF INFANTRY FIGHTING VEHICLES AHEAD OF SCHEDULE Ukroboronprom's State Enterprise "Zhytomyr Armored Plant", which is a part of Ukroboronprom, handed over the next batch of mechanised infantry fighting vehicles BMP-2 to Ukrainian military. The works were performed ahead of schedule under limited funding. The full mission capable hardware was handed over under the state contract. This is the second transfer of military equipment from the Zhytomyr Armored Plant to the Armed Forces of Ukraine this year. "The staff of the plant has always been, is and will be responsible for their direct duty to strengthen Ukraine's defense capabilities. Especially at this difficult time," Gennady Hrashchenkov, the head of the company, said. As it was reported on April 19 Gennady Hrashchenkov was appointed a new director of the state enterprise "Zhytomyr Armored Plant". [gallery columns="5" ids="12552,12551,12548,12547,12550"] State Enterprise "Zhytomyr Armored Plant" deals with in-depth modernization and overhaul of military hardware and special equipment of various modifications: BMP, BREM, BMD, as well as vehicles based on this hardware.