The Defense Department has announced three industrial partnership awards
designed to assist Ukraine in converting its former Soviet military production
facilities into commercial joint ventures. These awards bring the number of
joint ventures in Ukraine to seven.
The projects total $64.60 million in cash investments. Through the Department
of Defense (DoD) Cooperative Threat Reduction (CTR) program, the U.S.
government will contribute $47.46 million to these projects. The seven U.S.
firms involved will contribute a total of $17.14 million in cash and technology
and licensing valued at over $50 million.
The following Defense Nuclear Agency contract awards have been announced:
- Approximately $4.80 million has been awarded to ABB Combustion Engineering,
Windsor, Conn., to form a closed joint stock company with Ukraine's Monolit,
located in Karkiv, to convert a manufacturer of aircraft, spacecraft and
missile electrical, control and guidance systems into a manufacturer of digital
instrumentation and control systems for nuclear power plants. ABB Combustion
Engineering will contribute technology and licensing valued at $20 million to
the joint venture.
- Approximately $3.03 million has been provided to Die Casters Incorporated,
Wayne, N.J., to create a joint venture with Ukraine partner Meridian (formerly
Korolev), Kiev, to convert a million electronic and radar equipment facility
into a factory that manufactures die cast consumer products, for example,
automotive parts and hand tools. The project will upgrade Meridian's die
casting capability by installing process monitoring and control systems and
remanufactured die casting machines. Die Casters incorporated will contribute
$1.07 million to the project.
- Approximately $2.66 million has been awarded to American Industrial
Development (AID) Corporation, Boston, Mass., for a joint venture with
Ukraine's Orizon, located in Smela, to convert an electronic apparatus and
space navigation equipment plant to a polyvinyl chloride window and door
assembly facility. AID Corporation will contribute $469,979 to the joint
Previous DoD funded industrial partnerships in the Ukraine created production
ventures in construction and civil engineering, pre-fabricated housing, nuclear
electronic control instrumentation and cellular telephones. The projects were
initiated under a $50 CTR implementing agreement between the DoD and the
Ministry of Machine Building, Military-Industrial Complex and Conversion of
CTR program assistance to Ukraine for defense conversion helps reduce the
threat of the proliferation of weapons of mass destruction; assists Ukraine in
building a peaceful, commercially viable market economy while reducing its
excess military industrial capacity; and promotes opportunities for U.S.
industry's entry into a potentially large market for consumer goods and