REUTERS
The defense giant has completed an audit of its assets.
Top management of State Concern Ukroboronprom, as part of the restructuring of its enterprises, intends to reorganize 50 of them, while transferring another 28 to the State Property Fund and other state bodies.
The decision was approved based on a triage analysis, a comprehensive assessment of all 137 Ukroboronprom enterprises by nine parameters, company press service reports.
As a result, of 116 enterprises operating across Ukraine (excluding the occupied areas), 33 have proven financially stable, 27 – financially unstable, and 56 – in poor financial condition.
A total of 29 enterprises earned 88% of Ukroboronprom's total net income for 2016-2019. Some 67% of employees of the entire state concern work at 14 enterprises.
The average depreciation rate of fixed assets by the start of 2020 stood at 63%.
At the same time, there is a lot of excess property reported: the total area of land in the use of enterprises is 5,500 hectares, while real estate totals 11.3 million square meters.
As noted by the head of the company's transformation office, Roman Bondar, all enterprises were divided into three conditional groups: development, rehabilitation, and reassignment.
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The development group is represented by 38 enterprises with a total net income of UAH 35 billion, or 88% of the state concern’s income, employing 53,600 workers (80% of the total number of employees). These companies will be included in six industry business units: rocket science, aviation, aircraft repair, armor, as well as radar and marine systems.
The restructuring group consists of 50 enterprises with a total net income of UAH 4.9 billion, or 12% of the total. The group employs 13,900 workers (20% of the total number). These companies are set to be financially rehabilitated and reorganized. This includes such measures as production capacities transfer, getting rid of excessive assets, withdrawal from bankruptcy proceedings, and payment of arrears to employees, government, and creditors.
"After that, the rehabilitated and stabilized enterprises will be merged with the newly created branch business units from the development group," the press service quoted Bondar as saying.
The reassignment group consists of 28 enterprises with a total net income of UAH 29 million, with only 253 employees. These enterprises have lost their significance for the country's defense capabilities as they don't produce anything. They will be transferred to the State Property Fund or other government agencies.
"In particular, we have already handed over paperwork for 21 'dead' enterprises to the State Property Fund... Two enterprises will be transferred to the State Space Agency, five will be put for liquidation," Bondar said, adding that 21 enterprises remained in the occupied territories.
They could be reassigned to be managed by the relevant ministry, but to this end, legislation must be amended.
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As UNIAN reported earlier, Ukroboronprom management aims to merge their enterprises into six separate holdings, after which the Concern could be liquidated – that's according to Deputy Director General Roman Bondar, who also heads the Transformation Office.
UNIAN memo. Ukroboronprom SC was founded in 2010 with the aim of ensuring the effective functioning and management of business entities of the public sector of the economy carrying out commercial activities in the field of development, manufacture, sale, repair, modernization, and disposal of weapons, military and special equipment and ammunition, and participating in military-technical cooperation.
Nearly 140 enterprises of Ukraine's defense industry are part of the Concern.