Sales To China, Thailand Bring In Big Profits For UkrOboronProm

Ukraine-based weapons manufacturer UkrOboronProm today revealed its first half profits rose 520 percent to $51.2 million compared with last year’s $12.2 million loss.

“The profits of shipbuilding and marine hardware producers grew from 35 million hryvna in the first six months of 2012 to 221 million hryvna in the corresponding period of 2013,” UkrOboronProm CEO Sergiy Gromov was quoted as saying.

Vietnam and UkrOboronProm signed two contracts last month for the repair of aircraft engines for the Vietnam People's Army (VPA). The first contract provides for the repair in Ukraine of aircraft engines AL-31F, the second - provides for technical advice by the Ukrainian side on the repair of aircraft engines AL-31F for the Vietnam People's Army.

According to an official statement, Ukroboronprom will send to Vietnam an offer to supply and modernize air defense weapon, aircraft and armored vehicles, repair and modernize naval technology.

Subsidiary UkrespectExport won a contract last week to an additional 21 BTR-3E1 armoured personnel carriers (APCs) to the Royal Thai Army. The contract covers supply of locally assembled 15 BTR-3E1 and six BTR-3RK vehicles to the Thailand, Interfax-Ukraine reported citing a press service of the state-run company. So far, 233 BTR-3E1s worth $270 million were delivered to Thailand between 2007 and 2011.

UkrespectExport delivered China’s first amphibious hovercraft project 958 "Bison" this year. "The ship was built by JSC" Feodosia shipbuilding company "Sea", which is part of the "Ukroboronprom" for the needs of the Chinese Navy. At present, the company continues to construct the second ship of the project 958 for the Chinese customer,” according to the company’s website.

Brazil is also looking to UkrOboronProm as a partner to help modernize the Brazilian Navy. According to Interfax News Agency, Brazil has expressed an interest primarily in establishing cooperation with shipbuilding enterprises Concern. 

The prospects and the format of possible cooperation were discussed during recent talks held in Kyiv between Head of the Ukroboronprom State Concern Serhiy Hromov and a delegation of the Brazilian Navy led by the coordinator of the Brazilian Navy modernization program, Rear Admiral Petronio Augusto, the report added.

In June, state company "Ukrspecexport" won a contract from Croatia to repair and modernize 7 MiG-21 aircraft and in March won another contract to repair six Mi-8 and Mi-17 helicopters. The Value of both contracts are unknown.

The company recently announced that it has concluded a contract with Russia’s Rosoboronexport to safely dispose munitions from the Black Sea Fleet in the Crimean Sea.  The company also announced that it would continue to partner with NATO to dispose obsolete ammunition, small arms and light weapons.