Ukrainian shipyard More to lay down two vessels for China

02.07.2010 Two Project 12322 Zubr landing air-cushion ships will be laid down in Sept at Ukrainian shipyard More (Feodosiya, Crimea) for China, reported Context Crimea referring to Vasily Dzharty, the head of Crimean government.

Thank to Chinese order, the yard "began to rise up from knees", said the Crimean premier visiting the shipyard. "Amount of financing obtained by the yard under the recent order makes possible not only to survive but live; again the yard recruits staff, salaries are on the rise", commented V. Dzharty. According to him, the foreign order completely redeemed a multiyear wage arrears of 11 mln grivnas [national currency], paid off tax arrears and debt for superannuation fund. Ukrainian and Crimean leaders continue to seek for new orderers for the shipyard, added V. Dzharty. "I guess there will be plenty of contracts both with Russian and Ukrainian organizations. The yard will return the status of the city's backbone enterprise and become a face of Crimean and Ukrainian shipbuilding industry", stated Mr. Dzharty.

As was reported by news agency Context Crimea, the state enterprise Ukrspetsexport signed a contract with Chinese defense ministry on July 2, 2009. According to the contract, the shipyard More is obliged to built two Project 12322 Zubr landing air-cushion ships and hand over technical documentation of those ships; that allows China to construct such ships by itself. The contract will provide the shipyard with workload for nearest 5 years. Total value of a contract makes $240 mln.

Roman Trotsenko, the president of Russia's United Shipbuilding Corporation (USC) said at the meeting with Russian premier Vladimir Putin early May 2010 that there was a work on the agreement with Ukraine to integrate two Ukrainian state companies – turbine-making plant Zorya Mashproekt (Nikolayev) and shipyard More (Feodosiya) into USC. As for Trotsenko, integration of those two companies would resolve the problems of their workload.

Putin in his turn told Trotsenko to get the issue of the integration "under the most serious control".

JSC More Shipbuilding Company (Feodosiya, Crimea) is specialized in defense and civilian shipbuilding; in particular, in construction of naval and civilian boats, light-alloy hydrofoil vessels, and air-cushion ships.

Authorized fund makes 112,779 mln grivnas. Government possesses 100% shares. In Jan 2008 Crimean Republican Court initiated proceedings of bankruptcy of More shipyard. In July 2008 the company was rehabilitated.

In 2009 More shipyard increased notes receivable on 1.7% up to 246.5 mln grivnas. Inclusively, in 2009 indebtedness to different budgets increased comparing to 2008 on 32.2% up to 2.8 mln grivnas, to superannuation fund and social insurance funds – on 22.3% up to 14.3 mln grivnas, wage arrears – almost on 30.4% up to 17.1 mln grivnas; overdue debt made 15.4 mln grivnas.

In 2009 the company reduced the dead loss in 6.3 times down to 11.1 mln grivnas.