The Ukroboronprom state defense concern has begun preparation for corporatization of its enterprises as part of the declared reform of the defense industry. The plans and schedules for the first five enterprises, including the Antonov state aircraft manufacturing enterprise and the state-owned 410 Civil Aviation Plant (both based Kyiv), have already been approved by the Ministry of Economic Development and Trade.
The first five state enterprises also include the Chuguev Aircraft Repair Plant (Kharkiv region), General Aviation (Kyiv region), and Karpaty (Ivano-Frankivsk).
According to the news agency’s sources, an order of the Ministry of Economic Development and Trade dated 18 November stipulates that the corporatization of the Antonov state aircraft manufacturing enterprise and the 410 Civil Aviation Plant should begin within two weeks after approval of the decision on their structural transformation by the Cabinet of Ministers. The corporatization of the remaining three of the top five enterprises is scheduled to begin in February 2017.
The Antonov state aircraft manufacturing enterprise, which was included in the Ukroboronprom concern in 2015, specializes in development of new aircraft and repair of existing aircraft models. The 410 Civil Aviation Plant engages in overhaul of Antonov aircraft and D-36 aircraft engines. It was included in Ukroboronprom in June 2015. This enterprise obtained a certificate of compliance with NATO service standards in July 2015.
In autumn 2015, Ukroboronprom announced plans to include the 410 Civil Aviation Plant in the state helicopter manufacturing program and create a special Ukroboronprom division on its basis in implementation of a program for import substitution and diversification of production in the military-industrial complex.
The reforms that Ukroboronprom announced in 2016 include corporatization and audit of the enterprises in the industry, launch of a platform for development of defense innovations, introduction of a public-private partnership model in the defense industrial complex, creation of joint ventures with foreign partners, and financial rehabilitation of the industry.