Share of SMEs in defense sector import substitution program reaches 65-70%

Source : 112 Ukraine

Some 447 companies from 20 regions of Ukraine are involved in the program
11:52, 16 January 2018


As of early 2018, over two-thirds of the industrial cooperation within the framework of import substitution in the defense sector implemented by Ukroboronprom were accounted for small and medium-sized companies, the press service of the state corporation has informed, Interfax-Ukraine reports. 

Related: Ukroboronprom transferred 3,673 units of military equipment and weapons to Armed Forces

Within the program of import substitution, Ukroboronprom focused on cooperating with small- and medium-sized businesses, whose share in total output is now as high as 65-70%,” the press service said.

Related: Ukroboronprom ranked 62nd among world’s top weapon manufacturers

Such a choice was made due to comparatively high operational capacity of small- and medium-sized companies and their willingness to introduce contemporary production methods. This, combined with tight quality control at Ukroboronprom’s enterprises and open competition, allows to produce high-quality defense goods to clients in the military sector.

Related: Ukroboronprom opened official office in Abu Dhabi

Currently a total of 447 companies under different forms of ownership from around 20 regions of the country are involved in the state consortium’s program of import substitution. According to the report, Kyiv, Rivne, Chernivtsi and Donetsk regions are expected to join the program soon.

Related: Ukroboronprom to launch serial production of new 60 mm mortars

Among the successfully implemented examples of import substitution of the state enterprise is armored vehicles manufacturing, particularly, the BTR-4 program.


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