The SC UkrOboronProm Kharkiv State Aircraft Manufacturing Company and U.S.-based Oriole Capital Group reached an agreement on powerful investment into the Kharkiv enterprise. Under the terms of the agreement, UKROBORONPROM (UOP) enterprise Kharkiv State Aircraft Manufacturing Company will receive the order for aircraft mass production in the amount of 150 million USD.
The agreement was reached during the international exhibition Dubai Airshow 2017, currently held in the United Arab Emirates.
First of all, this involves mass production of Ukrainian An-74 aircraft of various modifications at the facilities of the Kharkiv State Aircraft Manufacturing Company. In turn, Oriole Capital Group will invest in the production, modernization, and sales of AN-74 aircraft.
Key to the strategic partnership is a focus on modernizing existing production and processes, re-employment of the plant’s workforce of 3,000 people, and an aircraft and avionics modernization program that will further differentiate the unique performance capabilities of the AN-74.
In addition, Kharkiv State Aircraft Manufacturing Company will receive orders for the manufacture of spare parts for aircraft, maintenance and pilot training.
“We must note that the agreement provides for project planning and implementation within a significant period of time. This means that the Kharkiv State Aircraft Manufacturing Company received a stable multi-year development plan, ensuring its efficient work, expansion of production facilities, providing new jobs, increase of profits and payments to the budget of Ukraine. In addition, such cooperation positively advances U.S. economic, policy and trade goals with Ukraine.
"This investment agreement with the United States is extremely important for Ukraine. For the first time, the aircraft manufacturing company of our country has a powerful international investor who plans to provide consistent investments over a number of years. This demonstrates that UOP enterprises are reliable world-class partners, which guarantee high-quality and timely fulfillment of orders. In fact, it is a clear signal, "green-light", for other investors, considering opportunities for investing into Ukrainian high-tech industry.
“Oriole’s investment and operational support will significantly boost the country’s commercial manufacturing capabilities in the region and beyond, and presents a highly strategic opportunity to demonstrate the combined capabilities of a Ukraine-U.S. partnership,” UOP Director General Roman Romanov, commenting on the agreements reached.
"This is a monumental step towards our common goals. The partnership between Oriole, UKRBORONPROM and Kharkiv State Aircraft Manufacturing Company transcends geographical boundaries to bring back to life one of the world’s most iconic and unique aircraft AN-74. We are delighted with the spirit of partnership and transparent cooperation that we have witnessed when working with Ukrainian enterprises. We look forward to realizing the potential of this exciting opportunity,” said Oriole Capital Group CEO Hossein Mousavi.
The achieved agreement is the next stage in Ukrainian aviation industry development in accordance with UOP transformation plan. According to the plan, the aviation cluster – consolidating UOP aircraft manufacturing enterprises – was created and corporatization of the state enterprise "Antonov" and the state enterprise "Plant 410 of Civil Aviation", is already launched.
Oriole Capital Group was founded by executives from Wamar International, a diverse manufacturing and services company engaged in armored vehicle manufacturing, gas turbine manufacturing, and aviation optimization technologies, and Aero-Pioneer Group, an airborne logistics company that owns and operates aircraft in austere environments on behalf of large NGOs and international organizations.
The State Concern "Ukroboronprom" was created in 2010 for management of the enterprises of the military-industrial complex. Today, SC "Ukroboronprom" unites more than 100 enterprise-participants in 5 major defence industry sectors, particularly in armament and military equipment development and manufacture, scientific research, aviation and export-import operations and employs approximately 80,000 highly skilled people.