Area served worldwide Founded December 2010 Net income 65 million USD (2015) | Industry Defense industry Headquarters Kiev, Ukraine Revenue 6.9 billion USD (2012) Key person Romanov Roman (President) | |
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Key people Roman Romanov (President) Products Munitions, Small arms, Artillery, Explosives, Combat vehicle, Warship, Civil and military aerospace, Engines, Missiles, Electro-optical devices, CBRN defense Subsidiaries | ||
Ukroboronprom at eurosatory 2016
Ukroboronprom (UOP) (Ukrainian: Укроборонпром, Ukrainian Defense Industry) is an association of multi-product enterprises in various sectors of the defense industry of Ukraine.
Contents
- Ukroboronprom at eurosatory 2016
- History
- General background
- Structure
- Armored technology
- Aircraft industry
- Shipbuilding and marine technology
- Rocket Artillery armament and ammunition
- General directors
- University cooperation
- The reform strategy of the military industrial complex of Ukraine
- International activity
- Products
- References
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. 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 importexport 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.
For 9 months of 2016, “Ukroboronprom” gave to the security agencies of Ukraine 6 209 pieces of military equipment, 1 389 of which are repaired.
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 long-term development of “Ukroboronprom”.
General background
The conglomerate was established in 2010 in place of the existing "Armored Equipment of Ukraine" (1999) and "Technological Military Service". Initially it consisted of seven major state companies:
Currently the conglomerate includes 134 enterprises of military-industrial complex of Ukraine. It employs some 120,000 people. In 2012 eighteen of those companies were to be reorganized (Resolution #223, March 21, 2012). They included:
According to the company itself, China and India are a traditional market for Ukrainian military products. In 2013, the Brazilian Navy announced a potential partnership with Ukroboronprom.
In March 2014, during the 2014 Crimean crisis, the company barred all exports of weaponry and military equipment to Russia. 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". 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”. 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.
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
Aircraft industry
Shipbuilding and marine technology
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 of 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.
The reform strategy of the military-industrial complex of Ukraine
In 2016, “Ukroboronprom” developed a reform strategy of the military-industrial complex of Ukraine. It consists of five key initiatives: corporatization, clustering, audit, platform of innovative developments, and protection of technologies. In 2016, aircraft corporation on the basis of “Antonov” has been already created, and corporatization of 5 companies was agreed with the Ministry of Defence. The formation of 4 clusters in armored vehicles, shipbuilding, precision weapons, radar, electronic warfare, and communication systems continues. Technical task for the independent audit by leading international consulting and auditing companies was developed. In October 2016, the creation of “Platforms of innovative developments” was initiated for elaborating innovative projects in the sphere of defense and attracting investment for their implementation.
The key goals of the reform of the defense industry of Ukraine are: reliability (providing defense capability of the country, warning of new threats to the security of the state, strengthening the international authority of Ukraine), passionarity (driver and stimulation of reforming process of the military-industrial complex of Ukraine, creating a favorable regulatory environment), innovativeness (dynamic step in advancing the development of innovation, involvement of all scientific units, partnership with global R&D centers), efficiency (maximum productivity, strengthening of financial position, expansion of markets, developing of human capital), openness and transparency (the elimination of corruption schemes, clear asset ownership, favorable information policy, openness to international investors).
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.
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.
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.
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.
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.
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.
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. In addition, “Antonov” and “General Electric” have agreed on modernization of Ukrainian planes. The company also signed a memorandum with “Pratt & Whitney Canada”.
“Ukroboronprom” also cooperates with NATO. Priority of cooperation is the development of 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.
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.