KYIV. Feb 12 (Interfax) - The Ukroboronprom state-run strategic company will be reorganized into a new defense holding, Defense Systems of Ukraine, the Ukroboronprom press service said.
"The Ukroboronprom enterprise, which is of strategic importance to the defense potential of our country, will be transformed into a new defense holding, Defense Systems of Ukraine. Different enterprises will be combined into six industrial sub-holdings, which will specialize in aircraft maintenance, armored hardware, radar systems, maritime systems, precision-guided weapons, and ammunition and special-purpose chemicals," the press service said.
Specifically, the Progress Research and Production Association, known for its Tsvetnik-type guided artillery projectiles, will become part of the future sub-holding specializing in ammunition and special-purpose chemicals.
In accordance with the reorganization roadmap, as a result of this corporatization program, state-controlled defense industry enterprises will be able to establish joint ventures with domestic and foreign partners and achieve a synergy effect and better results through exchanging their assets, resources, and technologies, the press service said.
"The mission of establishing the ammunition and special chemicals sub-holding is to develop and produce cutting-edge, advanced samples of munitions to cover current and future needs of the state's security and defense forces," Ukroboronprom General Director Yuriy Husev said.
The Progress association, based in the city of Nizhyn, plays a strategic role for the economy and security of Ukraine. Apart from military-purpose products, this enterprise also specializes in manufacturing medical equipment, including advanced ophthalmic instruments, the press service said.
A key objective of the association, which is among the world's top five producers of guided artillery projectiles, is to cover the relevant needs of the Ukrainian Armed Forces.
"In recent years, the enterprise has carried out a drastic upgrade of the Tsvetnik projectiles in order to fully replace components imported from Russia that were previously used in this item. Last year, mockup samples of a 152mm guided artillery projectile successfully passed field testing and are ready for further state-commissioned testing and their serial production as part of the state defense order," Progress Director Oleksandr Matyukhin said.