Pinkas: “Ukroboronprom” in the form in which it is today, probably will not last long / focus.ua
At the beginning of the year, the concern announced more than 60 contests for directors of subsidiaries. Almost half of them have already ended. How do you evaluate the results of this process?
There is some disappointment. Yes, indeed, some of the contests have already ended, they appointed a director and the question was closed. But, honestly, I expected that a stream of young people would come to us. As a result, we got in most cases, managers of pre-retirement age. At the same time, we acted completely non-standard. They took the decision of the Cabinet of Ministers as a basis and simplified the selection conditions as much as possible. Take at least the column in the questionnaire - a specialized higher education "tank building". Where in Ukraine can now prepare for this profile? Only a person who was educated during the Soviet era can fall under this criterion. We have removed those moments for which you can catch on. They left it simply - higher education, managerial experience, information about successful work.
Did you check the information that the applicants reported?
Of course. We have rechecked all the information, including managerial success. After all, it was necessary to understand whether a person is suitable for us or not. It was after checking that many candidates were refused. This is the negative side.
But there is a positive. There were a certain number of candidates who, as it were, were not yet ready to become leaders, but they could complement some kind of team. We decided to take such candidates for internship in the concern or on certain enterprises.
But there were still some bureaucratic problems that impede the normal conduct of the competition.
What are these problems?
For example, we have an enterprise. As a position of director of the company may be vacant? The head left, and we as a management body should appoint a temporary person to this vacant position. By law, we must appoint a competition within 10 days from the time of the vacancy. We must contact the Cabinet of Ministers to allow us to appoint an acting director of the company. But who will lead before the government meeting? “Ukroboronprom” is deprived of such a right, the Cabinet of Ministers has not yet made a decision. And it comes to the point of absurdity: in a strategic enterprise, a dismissed director must appoint an acting officer by his own order.
What are you doing to address this issue?
We appealed to the National Security and Defense Council - the body that takes care of the defense industry to resolve this bureaucratic mistake.
What are the challenges facing new leaders?
Attention is paid to the financial performance of the company - profitability, profitability, financial plans for the next period. The second task is to fulfill the defense order. The third point is the preservation of the collective, the payment of salaries and the payment of taxes.
Additionally, we have a KPI in the contract. Monthly and annual CRIs are approved by the general director. For example, if for one plant to produce 2 machines is already a feat, then for another 150 armored personnel carriers are very few. Therefore, for each of the directors, separate tasks are formed by which it will be possible to determine their success by lowering the subjective assessment of management.
There was information that the Kharkov plant them. Malysheva and the Lviv Armored Director were suspended for disrupting defense order schedules. What is the situation now?
At Lviv armored, we have two prototypes of the Patrol. They have already been transferred to the troops and, by the way, they drove half of Ukraine to the test site on their own. There are certain wishes of the customer - the Ministry of Defense for some components. For example, another instrument panel than the one that was originally laid in the project documentation. All technical wishes of the customer are refined by amending the technical documentation and refined during the tests. The plant is already ready for mass production - we could start its production right now. But to begin production, if there is no full coordination with the army, does not make sense.
There are predictions when the tests will end?
They started a month ago. According to preliminary forecasts, we should go to October - early November.
And what is the situation with Oplot? At the beginning of the year, the concern management announced an optimistic production plan 40 tanks in year…
I will not say that everything is cloudless and easy with the production of the “Oplotov”. All very difficult. On the other hand, a year ago they were not produced at all. Today we already have some kind of series.
How much is this?
I do not think that it will be entirely correct to voice the figure, because there are “strongholds” both in the defense order and in a number of export contracts. I can say that personnel appointments in the armored plant to them. Malysheva say that there was not all good. Now we have purchased metal for a very large batch of tanks. The situation with the supply of components has improved. In short, the pace may not be as we would like, but let's live to the end of the year, and we will give official information.
How with the listed problems is the export contract with Thailand fulfilled?
To date, the boundary point under the contract with Thailand for the supply of five units we have completed. The next point is December 31.
“STUGNA” IS BETTER “JAVELINA”
Since we have already started talking about exports: in May, the president set the task for the leadership of Ukroboronprom to bring Ukraine into the TOP-5 of the largest exporters in the next few years weapons. Considering that our main reserve is the equipment of the Soviet times, the question arises: how can we force out our European partners to become leaders?
Weapons are only one part of defense products. For example, AN planes. How is a military pattern different from a civilian? Only internal characteristics. How many aircraft have Antonov produced in recent years? Yes, practically there were none! And if we say in which sectors we can compete, then this, of course, - aviation. We have retained a virtually completely closed production cycle. Calculating market niche volumes is very difficult today. For various reasons, the enterprise itself did not want to develop, did not enter into any relations with Western enterprises and, accordingly, there were no orders placed there.
And what about other areas of the Ukrainian defense industry?
Take the armored sphere. Armored vehicle "Watch". It is priced at almost 4 times cheaper than any American or European counterpart.
What is the estimated price of "Watch"?
I can not name the price, because it varies depending on the contract. But I can say that the closest competitor to us is in the area of 350 thousand euros. Again, we are playing into the hands of the fact that the product is hryvnia, and is sold in currency.
Farther. BTR-3 and BTR-4. This is a modern technology, and even the head of the National Security and Defense Council after examining it noted that we have nothing better than this technology. The same tanks "Oplot". Precision weapons - missiles "Stugna", "Corsair", "Combat". For technical specifications, they bypass even the Javelins, but at the same time at a price of 10-15 is cheaper.
Nevertheless, everyone in Ukraine is waiting for the Javelins ...
You know, this is from the category of movies or rumors. Just a year ago, the "Stugny" was not, it was not made. When we passed several missiles for testing and the experts tested them, they said that it was just super and asked if it was possible to increase their production. We answered - of course, you can. The design office "Luch" maximally accelerates their production.
What else can get on the export list?
There are completely unexpected positions, for example, cars. Porsche, Mercedes, Audi –good cars? But an electrician for these brands is produced at our Karpaty plant in Ivano-Frankivsk. They make the whole package of electricity distribution and transfer to foreign colleagues. I ask the director of the plant a question - will you make a watch for “Patrol”? No, he says. And it turned out that when they developed technical documentation, they were not included.
Next, the optical moments. We have groundwork for combat modules in terms of both optics and firepower. Battle module "Flurry." You can take any BMP / MTLB and install this module there. And at the price of "Flurry" is much cheaper than any Western counterpart. True, he is now being finalized.
We are talking not only about the products of "Ukroboronprom". Weapons that are produced domestically are sold abroad through our special exporters. And on this we also earn. Even helping to develop enterprises adjacent to us, we have the opportunity to develop the entire concern.
Also changed the philosophy in the approach to export. Previously, it was possible to take any tank, no matter in what condition, quietly sell and earn something. Now we can provide services for the modernization of technology. There are countries that cannot afford new equipment, and they will buy equipment that is written off and taken out of service, for example, from countries from Eastern Europe that have entered the European Union.
The drones, which are now being developed at our enterprises, are much cheaper than their Western counterparts, and they will be in demand for 100%.
But another question is the needs of the domestic market and the situation in the country. Everything that will be produced in the next few years will remain in the country for the most part.
One of the reasons for the need to preserve exports, even in wartime, was the importance of competition in foreign markets with Russia ...
Conquer markets can be due to what? The first option is due to the most modern production facilities. I must admit that we do not have them now and will not appear in the near future. The second is due to the conjuncture that is taking shape in the market. So we came up with something unique like “Stugna”. I am sure that this niche from us will not go anywhere. And the third is to take advantage of a rifle. Yes, Russia is now under sanctions, and we understand that in our main markets we are competing with them. If you take, for example, the airline industry. It is also developed in Russia, but given the fact that Russia is under sanctions, a number of countries are ready to bring aircraft technology to Ukraine. There is an Aviakon factory in Konotop that repairs helicopters. Almost all enterprises in Eastern Europe conclude a contract with this plant, and do not go to Russia. This is their principal position, and the plant at the expense of this has super-loads and is constantly expanding.
Let's return to one "export point". This is the BTR-4, with which there was a scandal regarding the supply of defective vehicles to Iraq. How did this situation affect the interest of foreign partners in the Ukrainian technology?
As for the Iraqi contract. Unfortunately, we have a real picture - the equipment is set and does not go. What happened now - our equipment was tested in military operations in the east of Ukraine. It may look cynical, but from a competition point it is very important.
The second point is the transition to NATO standards. Our main businesses have received ISO 9001 quality certificates, which gives us the opportunity to be represented in foreign markets.
Another question about the quality of the BTR-4. If you look at how he is going to the Kharkov armored plant, it looks like an anthill. There are a very large number of people in a very small area. We are now resolving the issue of providing new production facilities.
With the increase in production of these armored vehicles, another problem arose. The body for it is produced in one private plant. When there were a small number of armored personnel carriers, there were no questions. They were brought, sold. We estimate that the cost of buildings with their own production will be less in 2,5. We are experimentally at several plants put the stocks and collect them from the metal, which passed all the tests. This makes it possible to save on cost and provide a greater quantity.
Regarding the integration of Ukraine into NATO. Previously, the concern's management stated that this process will take three years. How will this affect the structure of Ukroboronprom, the military-industrial complex and the Ukrainian army as a whole?
We can not consider "Ukroboronprom" in isolation from the state. Today, the vector of development of Ukraine is clearly marked - the European Union. Also, we have removed restrictions on membership in any alliance. NATO is a prospect for us. We really like the example of Sweden - they are not members of NATO, but they all have been brought under NATO standards. If we look globally at our capabilities in this cooperation, then in the year 2014 “Ukroboronprom” was mainly engaged in the repair of equipment. In 2015, the emphasis is already shifted towards the modernization and new technology. But it is necessary for the state to clearly form the program of our development. We have a lot of armored vehicles today - BTR-70, BTR-80, BTR-3, BTR-4, plus Dozor, MTLB, BMP.
But half of the named technology is outdated both physically and morally ...
If at the state level it is decided that the army is switching, for example, to the BTR-4 format, then the rest of the equipment can be sold or improved. After all, the armored personnel carrier must be compatible with NATO by means of communications, by combat power, to support the caliber of NATO. The same moments with thermal imagers, protection of the military.
For example, there is a tank T-72. In Poland, it is the NATO standard, in Ukraine it is not. The only difference is the caliber of the gun. If you take everything else - these are two identical tanks. But today we must honestly say that we have quite large remnants of Soviet ammunition in our warehouses. It would be wrong to give them up. On the other hand, what will be simpler: make 300 tanks or order 300 trunks?
At the beginning of the year, the concern's management reported that Ukraine would establish its own production of artillery barrels ...
There is already a mortar 120-mm, which is now being tested. He was made at the factory "Mayak". In today's conditions, large-caliber guns cannot be produced. We simply do not have such technological capabilities. There is one factory, we made a system order and the first batch has already arrived.
What is this factory? He is not part of the concern?
This is a private factory. He, by the way, put the barrel on the 120-mm mortar and received high marks after testing by the military.
This company can provide NATO trunks for the same T-72?
Yes, no problem. We have a choice: either invest some millions of dollars in a new plant, or give an order to a private company. Now we are at the stage of forming the catalog of the necessary products. That is, any private trader can take a catalog and offer the production of specific items. And due to this we will be able to move forward.
Do you work with such enterprises only in the form of a private partnership, or is there a prospect of their involvement in the group?
It makes no sense. A private trader can have several types of employment. Maybe, for example, to sell wheat, or to store goods, in parallel to make trunks. This is his problem, not ours. Attracting private owners to the structure of the state is - perhaps, nationalization. On the other hand, even with minimal profitability, a private trader will understand that he has a stable package of orders from the state.
Continuing the theme of NATO. At the beginning of the year, Ukroboronprom received access to the NATO logistics catalog for the implementation of an import substitution program. What is the result of this?
Access to the catalog was given to a number of our enterprises as an experiment. For example, there is a certain node that was previously produced in Russia. We know for sure that it is not produced in Ukraine, and where it is produced in the world is unknown. And in this directory, you must enter the item number and get a list of all manufacturers. We are actively working on the import substitution program, it is executed on more than 30%.
Is this practically the end of 2014 of the year?
This is a slightly approximate figure. For example, seven months of joint work of the enterprises “Lutsk Motor” and “Motor Sich” allowed to start the production of 11 parts. Is it a lot or a little? If in an aviation engine there are more than 3 thousands of nomenclature units, then 11 on the general background is some thousandths of a percent. We have a growth dynamics. Globally, we still depend on products that are not produced in Ukraine. We are following the path of import substitution - what was produced in Russia, is now being done for us, for example, in Poland.
This year, the Antonov concern was transferred under the control of Ukroboronprom. Are there any other defense companies that can join the concern?
If we look at the concept of an effective owner, then the structure of the state was the Ministry of Industrial Policy, which was completely ineffective from the point of view of management. The Ministry of Economic Development, too, was not always able to reach the enterprise for objective reasons. Our concern was able to build its work systemically enough. I'm not saying that everything is so cool, we have problems. But in our person, the state sees a more effective owner than other structures. In addition, the transfer of a number of enterprises to us was connected not only with the concept of efficiency, it is also logical from the point of view of production. For example, the aviation industry was divided into several parts. Antonov left behind the Ministry of Economic Development, which, in turn, depends on our design institutes. We were given companies that are engaged in servicing engines for Antonov. And it turned out that without combining the possibility of somewhere to move there.
How implemented is the state defense order program for 2015 year?
We are moving exactly on the charts. From the point of view of new technology and modernized, this is less than 50%, because the contracts were concluded in March-May and the deadline for their execution is October-November.
If we talk about repair work, then, for example, on rocket and artillery weapons, all contracts have already been completed ahead of schedule. There are problems with armored vehicles, but this is connected not with the work of Ukroboronprom, but with components. There are no system problems with the implementation of the repair schedule. Almost weekly the process is monitored by all services - from the prosecutor's office to the presidential administration.
What is the situation with plans for 2016 year and the further development of the concern?
Today we are going the same way as last year. We provide our potential opportunities to all customers. But unlike last year, within a few months we will receive a program for the development of the military-industrial complex, weapons and military equipment, which will simplify our task. It will be clearly stated where we are going. Today we have a number of plants that repair machinery, but they could be converted to modernize. We are not doing this, because we do not understand whether the same BTR-70 will be in demand by the army tomorrow.
Concern in the form in which it is today, probably will not last long. We draw the perspective of clusters for ourselves. We want to follow the path of uniting specialized enterprises into several conditional "Ukroboronpromov", for example, aviation, armored and so on. Cooperation will be organized between them in order to move in one direction.
Read more on UNIAN: http://economics.unian.net/industry/1125741-zamglavyi-ukroboronproma-amerikanskie-djavelinyi-kinoshnyiy-mif.html