Ukroboronprom

State Concern Ukroboronprom
Native name
 Ukrainian: Держа́вний конце́рн Укроборонпром
State-owned enterprise
Industry Defense industry
Founded December 2010 (December 2010)
Headquarters Kiev, 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, 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. A divisional principle is to provide administrative and economic "autonomy" of industries, a delegation of administrative powers of heads of divisions.

The organisation has the functions of strategic planning, interaction with public authorities and coordination with divisions. This approach allows the top management of the organisation 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 Ministers[4] 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, radio communications and air defense systems.

As 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 the 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 the newest weaponry.

In 2016, “Ukroboronprom” gave to the security agencies of Ukraine 6 986 pieces of military equipment, 1 389 of which are repaired.[5]

On 26 August 2016, “Ukroboronprom” signed a memorandum of cooperation with the former head of the Agency for Defense Advanced Research Projects (DARPA) Anthony Tetter. He became an advisor on the long-term development of “Ukroboronprom”.[6]

“Ukroboronprom” was the first among Ukrainian industrial giants to launch the system of e-procurement. Its official start was in October 2014. By the results of 2015, the company saved 304.8 million USD, and in 2016 – 476.6 million UAH.[7]

General background

The conglomerate was established in 2010 in place of the existing "Armored Equipment of Ukraine" (1999) and "Technological Military Service".[8][9][10][11] Initially it consisted of seven major state companies:

Currently the conglomerate includes 134 enterprises of the military-industrial complex of Ukraine.[8][12] It employs some 120,000 people.[12] In 2012 eighteen of those companies were to be reorganized (Resolution #223, March 21, 2012).[13] They included:

According to the company itself, China and India are a traditional market for Ukrainian military products.[12] In 2013, the Brazilian Navy announced a potential partnership with Ukroboronprom.[15]

In March 2014, during the 2014 Crimean crisis, the company barred all exports of weaponry and military equipment to Russia.[16]

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

Shipbuilding and marine technology

Shipbuilding Factory of 61 Communards

Radiolocation technology, Air-defense systems and communication

Rocket Artillery armament and ammunition

General directors

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.

In 2016, “Ukroboronprom” began to work with the best business schools in the country. In particular, the International Management Institute and Kyiv-Mohyla Business School. Senior management, management of the average level plants and industrials undergo training.[21]

New developments

In the summer of 2016, “Ukroboronprоm” presented multipurpose unmanned aircraft complex “Gorlytsa” and tactical unmanned multipurpose vehicle “Phantom”.[22]

On September 28, 2016, at the international exhibition of armaments “ADEX-2016” in Azerbaijan, the State Concern introduced a new combat module “Taipan”[23] which specifications meet the highest Western standards.

In 2016, “Ukroboronprom” also developed and presented a digital fire control system “Myslyvets”[24], combat modules “Duplet” and “Kastet”, 60 mm mortar KBA.118, and transport aircraft An-132.[25]

At the beginning of 2017, “Ukroboronprom” agreed with the American company “Aeroscraft” on co-production of automatic M16 rifle (model WAC47) that meets NATO standards.[26]

In March 2017, the newest multipurpose transport aircraft An-132 successfully made its first flight.[27] “Ukroboronprom” agreed with the companies TAQNIA (Saudi Arabia) and Havelsan (Turkey) to develop a new modification of the aircraft for the marine patrol.[28]

At the 13th International exhibition of military equipment “IDEF-2017” in Istanbul, “Ukroboronprom” introduced a new portable grenade launcher.[29]

International activity

“Ukroboronprom” actively works with foreign partners and has signed contracts to deploy production in Ukraine. For example, “Ukroboronprom” and Polish company Lubawa SA signed a memorandum on the establishment of new joint ventures in Ukraine, that will get 1 million euros investment.[30]

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. The cooperation between “Antonov” and Polish company “WB Electronics” was also agreed. Ukraine will use the technology of the Polish company to develop a new tactical unmanned aviation complex for the Armed Forces.[31]

At one of the largest Asian international defense exhibition “Defense & Security 2015”, “Ukroboronprom” signed an agreement with the enterprise authorized by the Ministry of Defence of Thailand to manufacture modern Ukrainian BTR-3E1 and ensure its service in the Kingdom.[32]

At the International Aviation Salon Dubai Air Show in 2015, “Antonov” and the company “Taqnia Aeronautics” signed two memorandums on cooperation in promoting 4 sanitary AN-148-100, 4 reconnaissance and rescue variants of the AN-132, and 2 devices for producing of radio interference based on the aircraft to the market of Saudi Arabia.[33]

In 2016, “Antonov” and “Taqnia Aeronautics” signed an agreement on cooperation on the construction of aircraft complex and production of An-132 in the Kingdom of Saudi Arabia.[34]

The result of one of the largest international exhibitions “DefExpo 2016” was the agreement on large-scale partnership in military-technical sphere with the Indian company “Reliance Defence Limited”. The parties signed three agreements in the sphere of aircraft and aircraft repair, modernization of armored vehicles, maintenance of marine engineering, production and supply of drones.[35]

During the International Aerospace Salon “Farnborough Airshow 2016” in the UK, “Antonov” signed two contracts with the Canadian company “Esterline CMC Electronics”. Under the contracts, transport aircraft An-124 and An-148/158/178 will be equipped with modern avionics.[36] In addition, “Antonov” and “General Electric” have agreed on modernization of Ukrainian planes. The company also signed a memorandum with “Pratt & Whitney Canada”.[37]

Meeting of NATO Secretary General Jens Stoltenberg with the head of "Ukroboronprom" Roman Romanov, July 2017

“Ukroboronprom” also cooperates with NATO. Priority of cooperation is the development of a roadmap for Ukrainian defense industry transition to NATO standards, and deep partnership with the EU member countries. In 2016, for the first time in the history of Ukraine, the Day of the Ukrainian defense industry was held in NATO Headquarters (Brussels, Belgium) and the headquarters of NATO Support and Procurement Agency (Kappelen, Luxembourg). “Ukroboronprom” presented its products there including a number of new projects.[38]

In 2016, “Ukroboronprom” signed over 70 memorandums on cooperation with 20 countries.[7]

At the LAAD-2017 Defence & Security held in April 2017 in Rio de Janeiro, Brazil, “Ukroboronprom” agreed on cooperation in aircraft and unmanned vehicles, radio intelligence and heavy armored vehicles with Central and South America countries.[39]

At the international exhibition of arms IDEF-2017 in May 2017 in Turkey, the State Concern has agreed on direct cooperation with Undersecretary for Defense Industries under the Ministry of National Defense of Turkey.[40] “Ukroboronprom” also signed the agreements with Turkish companies Aselsan, MKEK, TAI.[41]

On July 10, 2017, NATO Secretary General Jens Stoltenberg highly appreciated “Antonov” transport aircraft during his visit to Kyiv[42]. He discussed with the head of “Ukroboronprom” Roman Romanov the prospects for expanding the SALIS program on strategic transport activities for the member countries of NATO and speeding up the transition of the “Ukroboronprom” enterprises to produce products according to the NATO standards.

In the annual world rating of arms manufacturers of the analytical edition Defense News, “Ukroboronprom” took 62nd place[43]. Western analysts have noted high rates of increase in production of modern military equipment. In 2016, “Ukroboronprom” took 68th place, while in 2015 – 92nd place.

Reforming strategy of the military-industrial complex of Ukraine

In 2016, “Ukroboronprom” developed a strategy for reforming military-industrial complex of Ukraine.[44] http://ukroboronprom.com.ua/en/media/klasteryzatsiya-ukroboronpromu-detalno-pro-reformu-oboronno-promyslovogo-kompleksu-ukrayiny-artur-heruvimov.html  It consists of five key initiatives: corporatization, clustering, audit, a platform of innovations, and technologies protection. In 2016, Aircraft Corporation has been already created on the basis of “Antonov”.[45] Four clusters are in the process of creation: armored vehicles, shipbuilding, high-precision weapon systems, radar, electronic warfare and communications. A technical task for an independent audit by leading international consulting and auditing companies was developed.[46]

In May 2017, “Ukroboronprom” presented a new website presenting the strategy for reforming of the military-industrial complex of Ukraine - reformdefence.com. The site contains all important materials for each of the areas of strategy: corporatization, clustering, audit, technologies protection, and launch of the General Advanced Research and Development Agency (GARDA) that will be a platform to bring together developers, startups, investment funds, and military.

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. ↑ "Ukroboronprom posts UAH 1.63 bln net profit in 2015". Retrieved 29 June 2017.
  4. ↑ "Постанова Кабінету Міністрів України від 29.12.2010 № 1221 Про утворення Державного концерну "Укроборонпром"". document.ua. Retrieved 2017-06-07.
  5. ↑ "Понад 6 тисяч одиниць зброї та техніки передав "Укроборонпром" українській армії". Ukroboronprom. 2016-12-28. Retrieved 2017-02-14.
  6. ↑ "Підписання Меморандуму з Ентоні Тетером - Укроборонпром". Укроборонпром (in Ukrainian). 2016-08-29. Retrieved 2017-02-14.
  7. 1 2 ""Укроборонпром" презентує результати своєї діяльності в 2016 році". Укроборонпром (in Ukrainian). 2017-04-21. Retrieved 2017-06-07.
  8. 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)
  9. ↑ В Харькове создан концерн Бронетехника Украины. Компаньон. 05.11.1999.
  10. ↑ ПОСТАНОВЛЕНИЕ КАБИНЕТА МИНИСТРОВ УКРАИНЫ от 25 декабря 2002 года №2028. Resolution of the Cabinet of Ministers. 2002.
  11. ↑ Концерн «Укроборонпром» зарегистрируют в ноябре.
  12. 1 2 3 Ukroboronprom director says weapons shipments to Russia stopped three weeks ago, Kyiv Post (15 April 2014)
  13. ↑ "ДК Укрспецекспорт". www.ukrspecexport.com. Retrieved 29 June 2017.
  14. ↑ Registry of projects and adopting project numbers of ships. Ukase #436, November 22, 2006. Ministry of Industrial Policy of Ukraine
  15. ↑ "Brazil sees Ukraine as possible partner in Brazilian Navy modernization programs - KyivPost". 31 July 2013. Retrieved 29 June 2017.
  16. ↑ Ukraine bars defence exports to Russia, Jane's Information Group (31 March 2014)
  17. ↑ "LAVF. Lviv Armor Vehicle Factory". tank.lviv.ua. Retrieved 29 June 2017.
  18. ↑ "Lviv State Aircraft Repair Plant - Main page". www.lsarp.com.ua. Retrieved 29 June 2017.
  19. ↑ Ukraine’s Plan to Manufacture US M16 Combat Rifles Hits a Snag Over Ammunition, The Daily Signal (10 January 2017)
  20. 1 2 Ukrainian instability leads to leadership change at Ukroboronprom, Jane's Information Group (19 March 2014)
  21. ↑ "UKROBORONPROM INCREASES PROFESSIONAL LEVEL OF ITS MANAGERS AT BUSINESS SCHOOLS - ARTHUR HERUVIMOV - Ukroboronprom". Ukroboronprom. 2016-03-09. Retrieved 2017-02-14.
  22. ↑ "Ukroboronprom Represents Latest Drones “Phantom” and “Gorlytsa” to NSDC Secretary of Ukraine" (Press release). Ukroboronprоm. 29 August 2016. Retrieved 2 September 2016.
  23. ↑ Censor.NET. "Ukroboronprom introduced new `Taipan` combat module. PHOTO". EN.Censor.net. Retrieved 2017-06-07.
  24. ↑ Administrator. "Ukroboronprom from Ukraine launches new modernized BMP-2 IFV named BMP-1UMD 12012163 | December 2016 Global Defense Security news industry | Defense Security global news industry army 2016 | Archive News year". www.armyrecognition.com. Retrieved 2017-06-07.
  25. ↑ "Antonov presents new aircraft AN-132 | KyivPost". KyivPost. Retrieved 2017-06-07.
  26. ↑ "M16 - WAC-47 для української армії від ДК "Укроборонпром"". Ukroboronprom. 2017-01-10. Retrieved 2017-06-07.
  27. ↑ "Antonov's An-132 makes maiden flight | Jane's 360". www.janes.com. Retrieved 2017-06-07.
  28. ↑ "Ukroboronprom Will Develop a New An-132 Modification with International Partners". www.defense-aerospace.com. Retrieved 2017-06-07.
  29. ↑ ""Укроборонпром" вперше представив переносний реактивний гранатомет на IDEF-2017". Укроборонпром (in Ukrainian). 2017-05-09. Retrieved 2017-06-07.
  30. ↑ "Спільне українсько-польське підприємство "Укроборонпрому" і Lubawa SA планується інвестувати 1 млн євро | MILITARY NAVIGATOR". www.milnavigator.com (in Ukrainian). Retrieved 2017-02-14.
  31. ↑ Rbc.ua. ""Укроборонпром" підписав ряд угод про співробітництво з Польщею і США". РБК-Украина (in Ukrainian). Retrieved 2017-02-14.
  32. ↑ "УКРАЇНА ТА ТАЇЛАНД СПІЛЬНО ВИРОБЛЯТИМУТЬ БРОНЕТЕХНІКУ - Укроборонпром". Укроборонпром (in Ukrainian). 2015-11-02. Retrieved 2017-02-14.
  33. ↑ ""УКРОБОРОНПРОМ" ПЛАНУЄ ВИГОТОВИТИ 30 ЛІТАКІВ АН-178 КОРОЛІВСЬКИМ ВПС САУДІВСЬКОЇ АРАВІЇ - Укроборонпром". Укроборонпром (in Ukrainian). 2015-12-22. Retrieved 2017-02-14.
  34. ↑ "UKRAINIAN AIRCRAFT AN-132 WILL BE PRODUCED IN SAUDI ARABIA - Ukroboronprom". Ukroboronprom. 2016-02-24. Retrieved 2017-02-14.
  35. ↑ "UKRAINE SIGNED 15 MEMORANDUMS OF COOPERATION DURING INTERNATIONAL DEFENCE EXPO IN INDIA - Ukroboronprom". Ukroboronprom. 2016-03-31. Retrieved 2017-02-14.
  36. ↑ "ANTONOV AIRCRAFT WILL RECEIVE AVIONICS FROM ESTERLINE CMC ELECTRONICS - Ukroboronprom". Ukroboronprom. 2016-07-12. Retrieved 2017-02-14.
  37. ↑ "ANTONOV MODERNIZES AIRCRAFT TOGETHER WITH GENERAL ELECTRIC - Ukroboronprom". Ukroboronprom. 2016-07-22. Retrieved 2017-02-14.
  38. ↑ ""Укроборонпром" розпочав "День оборонної промисловості України" у штаб-квартирі НАТО". Ukroboronprom. 2016-11-30. Retrieved 2017-02-14.
  39. ↑ ""Укроборонпром" визначив галузі співпраці з країнами Південної та Центральної Америки". Укроборонпром (in Ukrainian). 2017-04-07. Retrieved 2017-06-07.
  40. ↑ "Ukroboronprom steps up cooperation with Defence Ministry of Turkey". Interfax-Ukraine. Retrieved 2017-06-07.
  41. ↑ "Турецький прорив "Укроборонпрому" - підсумки виставки IDEF-2017". Ukroboronprom. 2017-05-12. Retrieved 2017-06-07.
  42. ↑ "Столтенберг особисто оцінив потужності літаків від ДП "Антонов"". 5 канал (in Ukrainian). Retrieved 2017-07-11.
  43. ↑ "Top 100 | Defense News, News about defense programs, business, and technology". people.defensenews.com. Retrieved 2017-07-26.
  44. ↑ "Кластеризація "Укроборонпрому": детально про реформу оборонно-промислового комплексу України - Артур Херувімов". Ukroboronprom. 2016-11-29. Retrieved 2017-06-07.
  45. ↑ "Antonov Becomes Cornerstone of New Ukrainian Aircraft Corp". www.defense-aerospace.com. Retrieved 2017-06-07.
  46. ↑ "TI Ukraine asks the prime-minister to assist with the audit of the Ukroboronprom". NAKO. Retrieved 2017-06-07.
  47. ↑ "Sales To China, Thailand Bring In Big Profits For UkrOboronProm". www.defenseworld.net. Retrieved 29 June 2017.
  48. ↑ http://news.xinhuanet.com/english/world/2013-06/19/c_132468798.htm
  49. ↑ webstudio, TAC. "Ukrainian Journal". www.ukrainianjournal.com. Retrieved 29 June 2017.
  50. ↑ Portable rifle “Hopak”, Ukroboronprom (Oct 19, 2016)
    Ukrainian troops to use Ukraine-made Hopak portable rifle, UNIAN (Oct 20, 2015)
    The Hoplite, ARES (May 6, 2015)
  51. 1 2 "UKROBORONPROM REPRESENTS LATEST DRONES "PHANTOM" AND "GORLYTSA" TO NSDC SECRETARY OF UKRAINE - Ukroboronprom". Ukroboronprom. 2016-08-29. Retrieved 2017-02-14.
  52. ↑ "UKROBORONPROM INTRODUCES NEW COMBAT MODULE "TAIPAN" - Ukroboronprom". Ukroboronprom. 2016-09-28. Retrieved 2017-02-14.
  53. ↑ "БМП-1УМД "Мисливець" показав можливості передової системи управління вогнем для роботизованих бойових модулів". Ukroboronprom. 2016-12-09. Retrieved 2017-02-14.
  54. ↑ "Українська авіапрем‘єра року: Ан-132D від легендарного "Антонова"". Ukroboronprom. 2016-12-20. Retrieved 2017-02-14.
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