Main photo
Stance of SE “PLANT 410 CA” on situation regarding execution of the contract with India in tandem with SFTE “SpetsTechnoExport”
18.03.2019

Execution of the contract for modernization of An-32 aircrafts for the Indian Air Force already in 2011-2018 provides 60% of SE “PLANT 410 CA” net income. “Any meddling and stalling this contract execution may cause damages”, the Enterprise’s personnel declare.

Since the end of 2018, thanks to agreements reached between the SFTE “Spetstechnoexport” and the Indian partners, the PLANT has resumed continuous shipment of new product batches under the contract. In addition, this year the enterprise expects successful completion of negotiations with India on modernization of 20 additional An-32 aircrafts in Ukraine. This will save jobs and attract young professionals.

SE “PLANT 410 CA” started large-scale cooperation with the Indian partners after SFTE “Spetstechnoexport” had entered into the international contract with the Ministry of Defense of India for repair and modernization of 105 An-32 military transport aircrafts. This contract is still one of the largest export contracts in history of the Ukrainian defense industry.

Under the contract from 2009, 40 Indian aircrafts were to be modernized at facilities of the SE “PLANT 410 CA”, and another 65 aircrafts – by Indian aircraft repair shops after proper training the Indian specialists and after supplying necessary quantities of units and spare parts from Ukraine.

In 2014-2015, execution of the contract was in jeopardy due to cessation of spare parts delivery from Ukraine to India. This happened after ties with Russia in military and technical cooperation had been broken, which resulted in increasing cost of Russian spare parts for aircrafts by 7-10 times. In 2017, the Ministry of Defense of India was ready to terminate the contract with Ukraine and transfer it to a Russian enterprise. In this case, SE “PLANT 410 CA” would have to pay $25 million in fines and would not receive $90 million in revenue from export of new spare parts and components to India.

In December 2017, thanks to tremendous joint efforts by SE “PLANT 410 CA”, SE “Antonov” and SFTE “Spetstechnoexport”, the Ukrainian party has persuaded the Indian customers to substitute Russian components for An-32 to equivalent Western analogues and execute the contract terms and conditions in full.

However, in 2018, the PLANT has faced difficulties again due to delays in signing additional agreements for the contract extension and implementation of import substitution. Reason for the delays was publication of manipulative information in the Indian mass media, with reference to the law enforcement authorities of Ukraine, on putative law violation by the Ukrainian party during the contract execution.

Thanks to support from the Embassy of Ukraine in the Republic of India, the situation has been stabilized. As of today, necessary additional agreements have been signed, and the contract has been resumed. SE “PLANT 410 CA” maintains its deliveries on a regular basis, and the contract fulfillment is scheduled by the end of 2020. In January-February 2019, products of western origin have been successfully tested, and further they will be installed on An-32 aircrafts instead of the Russian components.

 Following this success, some publications have appeared in the mass media again, with reference to the law enforcement authorities of Ukraine, and raised the Indian partners’ concerns. The personnel of SE “PLANT 410 CA” appeal to government authorities and society to refrain from propagating any unproved, manipulative information regarding execution of the aircraft contract with India. This could jeopardize further existence of the enterprise.

Please note, that through execution of the long-term contract between DP DZGP “Spetstechnoexport” and the Ministry of Defense of India, SE “PLANT 410 CA” could retain its highly skilled personnel and partially update physical resources. Exactly owing to this export contract, the enterprise could carry out a high-quality overhaul of 22 aircrafts for the uniformed services of Ukraine. In addition, in the next 2 years SE “PLANT 410 CA” plans to repair and maintain units for aircrafts of Boeing and Airbus, the world leaders in the aircraft industry.
 


 



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ABOUT SPETS TECHNO EXPORT

State Foreign Trade Enterprise “SpetsTechnoExport” is a fully state-run entity incorporated by the Government of Ukraine in 1998 for export-import activities at foreign armaments markets.

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