Ukrainian President's Office
The debt issue has been settled, the president has assured.
Dnipropetrovsk region that is home to Pivdenmash rocket manufacturer has every chance to become the space industry heart and brain of Europe, President Volodymyr Zelensky believes.
The statement came as Zelensky was presenting the region's Development Strategy, the President's Office reports.
"My dream is for the Dnepropetrovsk land to become the space industry's brain and heart of not just Ukraine, but the whole of Europe. We very often admire Elon Musk, hail his projects, but for some reason forget that we have Pivdenmash, incredible professionals with unique knowledge and unique experience. The state will always support them and reveal this potential to the maximum," Zelensky said.
"You know that there was a huge issue at Pivdenmash – more than UAH 2 billion in debts, therefore the enterprise could no longer develop, couldn't operate as usual. The issue with these debts has been resolved, and here I'm grateful to our entire team, to our deputies who helped settle the issue," the president said.
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"Today the Cabinet will resolve this issue, we have agreed. It's hard to find money, but people are important," the president said.
State Enterprise Production Association Makarov Pivdenny Machine-Building Plant (based in Dnipro) was founded in 1944. Pivdenmash is Ukraine's only manufacturer of space launch vehicles and satellites.
At the end of 2012, Pivdenmash was among the world's TOP 5 leaders in carrier rocket production.
In the period from 2012 to 2019, Pivdenmash cut production volumes by half. The average number of employees in 2019 decreased to 5,400, while in 2012 it amounted to 10,000.
As of July 2020, the average salary in the company stood at UAH 6,500, but the company still faced a range of issues.
On July 14, 2020, the Rada deferred Pivdenmash's debts to the budget and found UAH 300 million to cover wage arrears.