You're reading: Ukroboronprom says it will launch producing armoured cars in Lviv, avoid layoffs

Ukraine’s state-run defense industry company Ukroboronprom has received a government order to produce dozens of Dozor-B armored cars for the Ukrainian armed forces, the concern’s press service reports on Feb. 2.

In its statement, the company says that Ukraine’s top government officials had taken a decision to issue a new defense order on Jan. 27. This contract would be fulfilled mostly by the Lviv Armor Plant, an enterprise that had been previously reported under threat of dissolution due to budget cuts in defense and underfunding.

“Lviv plant personnel, which now includes as many as 900 workers, has been given a full load and job securities for 2017. It allows to avoid layoffs and load the Lviv Armour Plant’s productive facilities in full measure” the company’s press service says.

Besides, production of Dozor-B cars involves as many as 17 enterprises affiliated with the state-run concern together with 86 other ventures including those of private businesses.

Dozor-B, an armored tactical infantry combat car, designed by the Morozov design bureau in Kharkiv in 2004. As a light highly mobile personnel carrier, it can be used by special military forces during combat surveillance operations or as a battlefield transporter for manpower, ammunition or other cargo weighing up to 2,000 tons.

These military vehicles are able to protect their personnel from rifle gunfire and landmines, as well as from biological, chemical weapons, assuring sufficient comfort for the crew in combat, attributed with satellite navigation system. With all this, the Ukrainian amours were recognized as providing the so-called level 3 defense under NATO’s STAGNAC 4569 standards.

According to information from Ukroboronprom, producing one Dozor-B unit would cost at least 3 million hr ($111,000) and take 6 months.

The serial production of Dozor-B must have been launched at Lviv Armour Plant back in September 2014 due to the dire shortage of light armor cars in Ukraine’s Armed forces amid the most gruesome months of war in Donbas. However, the first 10 units had been produced, tested and handed over to Ukrainian elite 95th Airborne Brigade to be deployed at war zone in the east only by July 2016.

After actual combat tests, Dozor-B were recognized as generally reputable and reliable war machines adequate to demands by Ukraine’s Ministry of Defense.

But later, on Jan. 26, 2017, Ukroboronprom issued a statement saying that the due to underfunding company was incapable of producing produce more of its advanced armored vehicles, including T-84 Oplot main battle tanks and Dozor-B cars for Ukrainian army.

According to Ukroboronprom’s director general Roman Romanov, there had been at least an Hr 1 billion shortfall in state funding in 2016. Due to shortages and low contracts, Lviv Armour Plant, a principal producer of the mentioned weaponry, was reported to be put to layoffs.

In addition to the decision to devote funds to load the Lviv producing facilities and supply the army with more Dozor-B vehicles, the Ukraine’s national security and defense council has approved an increased amounts of budget military procurement for 2017-2019 on Feb. 1.

Around Hr 9 billion ($333 million) were allocated from budget for financing Ukraine’s defense production projects in 2017, comparing to Hr 4.4 billion $160 million) dispensed to Ukroboronprom last year, according to information provided by presidential website. An overall amount of defense budget has been enlarged by Hr 129 billion ($4,7 billion), which constitutes as many as 5% of the country’s GDP.