Ukroboronprom sells and liquidates “dead” companies
The Ukroboronprom group of companies has started the process of restructuring defense companies which, based on the results of the triage analysis, will be reorganized or transferred to the management of other state authorities.
This was stated by Roman Bondar, deputy general manager for OOP transformation, in reports from the company’s press service.
“The triage analysis is a comprehensive assessment of 137 companies of concern based on 9 parameters. The analysis showed the real state of companies in the defense industry. It allowed us to identify resilient companies and to prioritize reorganizing the problematic ones, “said Bondar.
According to him, out of 116 operational companies concerned, 33 can be classified as financially stable, 27 companies are financially unstable, 56 are in poor financial condition. And only 29 Ukroboronprom companies achieved 88% of the group’s net profit for 2016-2019.
Concern’s defense companies have a very high concentration of workers – 44.6 thousand (67%) of the total number of Ukroboronprom employees work in 14 companies, the official said.
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“Business fixed assets are very worn out. The average ratio at the beginning of 2020 was 63%. In 28 companies, this level exceeds 80%! At the same time, there are a lot of surplus goods: the total area of land used by the companies concerned is 5.5 thousand hectares, the area of real estate is 11.3 million square meters, that is to say that the concern is overloaded with surplus goods, which creates a burden additional and a negative impact on the financial results, and that is why the concern launched the second stage of the reform – restructuring and rehabilitation of these assets “, – stressed the head of the office of transformations.
He added that, according to the results of the triage analysis at Ukroboronprom, conditional business groups have been created: for development, recovery and reallocation.
The development group consists of 38 companies with total net income of UA 35 billion or 88% of the group’s income, which employs 53.6 thousand people – 80% of the total number of employees of all Concern companies. The companies in this group will be grouped into 6 industries: rocket construction, aviation, aircraft repair, armored vehicles, radar and marine systems.
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The group under restructuring includes 50 companies with a total net profit of 4.9 billion UAH, or 12% of the total turnover of the company. 13.9 thousand employees work in this group – 20% of the total number of Ukroboronprom companies. Companies in this group plan to heal and reorganize financially. These programs will include, among other things, the transfer of production, the disposal of surplus assets, the withdrawal from bankruptcy and the payment of debts to employees, the state and creditors, said Roman Bondar. “After that, the improved and stabilized businesses will be merged with the newly created sectoral business units of the development group,” he added.
The reallocation group includes 28 companies with total net income of UAH 29 million, which employ only 253 employees. The companies in this group have lost their importance for the defense of the country, do not carry out economic activity, have not enforced the defense order of the state for a long time, do not produce or export anything. They will be transferred to the State Property Fund of Ukraine or other state bodies.
“In particular, we have already delivered packages of documents from 21” dead “companies to the State Property Fund, where they should receive a” second life “. Two companies will be transferred to the State Space Agency , 5 for liquidation, “noted Bondar.
However, according to him, there is still a group of companies involved – 21, which have remained in the occupied territories. “In our view, they can be subordinated to the relevant ministry, however, this requires a certain legislative framework, which currently does not exist,” said Bondar.
As indicated, following the reform, the concern of the State of Ukroboronprom will cease to exist and, instead, 6 industrial operations will be created: construction of rockets, aviation, repair of aircraft, armored vehicles, radar and marine systems.
Ernst & Young Global Limited (EY) has been selected to implement the Ukroboronprom reform. The project will last two months and its results will be presented to the Cabinet of Ministers, the National Security and Defense Council and the relevant committee of the Verkhovna Rada.
According to the materials: ukrinform.ru