The SC "UkrOboronProm", Kharkiv State Aircraft Manufacturing Company and U.S.-based Oriole Capital Group today announced an agreement for a significant investment into the Kharkiv enterprise at the international Dubai Airshow 2017 exhibition. Under the terms of the agreement, UKROBORONPROM (UOP) managed enterprise, “Kharkiv State Aircraft Manufacturing Company”, will receive an investment in the amount of 150 million USD to enable mass production and modernization of the iconic AN-74 aircraft.
The agreement involves a substantial investment by Oriole Capital Group in modifications of Kharkiv State Aircraft Manufacturing Company facilities, as well as the modernization and production of various configurations of the AN-74 aircraft. Additionally, Kharkiv State Aircraft Manufacturing Company will be positioned to receive orders for supporting products and services such as aircraft spare parts, maintenance, and pilot training.
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.
This agreement represents a long-term cooperation between the parties and a commitment to the program’s implementation over a significant period of time. As a result, Kharkiv State Aircraft Manufacturing Company will receive a stable multi-year development plan, ensuring a sustained and efficient production output. The resulting benefits include not only new jobs and a new source of ongoing revenue for the Ukrainian budget, but also a meaningful contribution to bilateral US-Ukraine economic, policy and trade objectives.
"This investment agreement with the United States is extremely important for Ukraine. For the first time, an aircraft manufacturing company of our country has a powerful international investor who plans to provide consistent investments over several 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 "green-light" for other investors, who are considering opportunities for investing into the 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”, commented Roman Romanov, UOP Director General.
"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 the AN74, one of the world’s most iconic and unique aircraft. We are delighted with the spirit of partnership and transparent cooperation that we have witnessed when working with all parts of the Ukrainian government, including UOP and the Kharkiv State Aircraft Manufacturing Company, and 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 the development of the Ukrainian aviation industry in accordance with UOP’s transformation plan, under which, UOP’s aviation manufacturing enterprises were consolidated in an aviation cluster. The transformation plan has already launched the corporatization of the state enterprise "Antonov" and the state enterprise "Plant 410 of Civil Aviation".
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About Oriole Capital Group
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 team consists of senior executives from leading aviation industry and regulatory organizations including Boeing, Hawker-Beechcraft, Cessna, Thales, United Airlines, Textron Aviation, and FAA. Visit www.OrioleCapitalGroup.com for more information.
Oriole Capital Group Press Contact:
Kristine M. Szarkowitz
kszarkowitz @ OrioleCapitalGroup.com
About UkrOboronProm
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 enterprises-participants in 5 major defence industry sectors, particularly in armament and military equipment development and manufacture, scientific research, aviation, and export-import operations.
"Ukroboronprom" has more than 10 design bureaus, engaged in development, design and research, enabling State Concern to implement new solutions and innovations.
State Concern employs approximately 80,000 highly skilled people. Many employees have high academic degrees in engineering, applied mathematics, physics, etc. Realizing the fact, that innovation requires skilled, educated specialists, State Concern management has initiated long-term cooperation with leading educational institutions of the country, the list of which is constantly increasing.
"This investment agreement with the United States is extremely important for Ukraine. For the first time, an aircraft manufacturing company of our country has a powerful international investor who plans to provide consistent investments over several 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 "green-light" for other investors, who are considering opportunities for investing into the 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”, commented Roman Romanov, UOP Director General.
"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 the AN74, one of the world’s most iconic and unique aircraft. We are delighted with the spirit of partnership and transparent cooperation that we have witnessed when working with all parts of the Ukrainian government, including UOP and the Kharkiv State Aircraft Manufacturing Company, and 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 the development of the Ukrainian aviation industry in accordance with UOP’s transformation plan, under which, UOP’s aviation manufacturing enterprises were consolidated in an aviation cluster. The transformation plan has already launched the corporatization of the state enterprise "Antonov" and the state enterprise "Plant 410 of Civil Aviation".
# # #
About Oriole Capital Group
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 team consists of senior executives from leading aviation industry and regulatory organizations including Boeing, Hawker-Beechcraft, Cessna, Thales, United Airlines, Textron Aviation, and FAA. Visit www.OrioleCapitalGroup.com for more information.
Oriole Capital Group Press Contact:
Kristine M. Szarkowitz
kszarkowitz @ OrioleCapitalGroup.com
About UkrOboronProm
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 enterprises-participants in 5 major defence industry sectors, particularly in armament and military equipment development and manufacture, scientific research, aviation, and export-import operations.
"Ukroboronprom" has more than 10 design bureaus, engaged in development, design and research, enabling State Concern to implement new solutions and innovations.
State Concern employs approximately 80,000 highly skilled people. Many employees have high academic degrees in engineering, applied mathematics, physics, etc. Realizing the fact, that innovation requires skilled, educated specialists, State Concern management has initiated long-term cooperation with leading educational institutions of the country, the list of which is constantly increasing.