Debt Ridden Izmash Wins Missile Contract

Izmash arms factory, the manufacturer of the Kalashnikov rifle has won a $400 million contract from the Russian MoD for antitank missiles, the company said Monday.

Izhmash is to deliver Vikhr-1 long-range, supersonic antiarmor missiles by the end of 2015, company CEO Konstantin Busygin said.

The Vikhr-1 contract will enable Izhmash to tackle almost all of its financial problems, he said in late May. The company's current debt stands at 3 billion rubles.

According to Ria Novosti, Busygin said the company has asked the Russian government for financial assistance to complete its merger with gun-maker Izhmekh under the Kalashnikov brand. The two companies, both based in the city of Izhevsk, have been experiencing financial difficulties and a sharp drop in production output.

The two enterprises will become the new Kalashnikov Corporation, first proposed by Deputy Prime Minister Dmitry Rogozin, who oversees the Russian defense industry. It is due to be registered in time for Russia’s Arms Makers’ Day, September 19.

Vikhr is a laser-guided antitank missile, used by Russia’s Ka-50 and Ka-52 attack helicopters and Su-25 ground-attack aircraft.