SURE SHOT OUR TANKS WON THE BATTLE AGAINST COMPETITORS

The state-owned Malyshev Plant was built over a century ago. The first Soviet tractor was made there along with the first artillery carrier, diesel engine and the first locomotive. The plant also produced all types of tanks, from the legendary T-34 to the most modern T-82. The enterprise managed to put Ukraine in the world arms market. We leave the matter for discussion with the chief plant engineer Mykhailo Budonny.

Q: Someone estimated that the lives of every third Kharkiv family is in one way or another connected with the Malyshev plant. Some time ago the plant did not produce anything, and now you have an order from Pakistan. How did you manage to get this contract?

A: It took us three years. In the early nineties, the Pakistani Defense Ministry decided to re-equip their tank forces. The experts studied the technical characteristics of all types of tanks produced in the world, including Soviet. Of course, they were unaware that Ukraine, not Russia, assembles them. Before the tender Deputy Premier Valery Shmarov went to Islamabad and began negotiations. Certainly there was some risk in that, because Ukraine did not have diplomatic relations with Pakistan then. To cut it short, we were invited to participate in the tender along with US, Poland, and China. The purchaser considered our T-80UD tank be the best combination of price and quality. To show them what it is really like, we sent two tanks to Pakistan. They successfully traveled over hundreds of kilometers, despite all obstacles and the heat. The temperature there was about 55 Celsius, and you could burn your skin by touching the armor. But we won the tender. And that’s were the trouble started. We only managed to sign the contract in 1996, but the red tape and bureaucracy continued to hold up the contract until the end of that year. The situation was disastrous: we had a signed contract and promising future but could not launch production and pay our workers. If it was not for the loan we received from Prominvestbank, we would not have been able to start shipping the tanks to Pakistan on schedule.

Q: What about competitors?

A: There was varied reaction on that, when mass media announced the contract. Some countries reacted negatively of course: another competitor on the arms market. They said we would not meet the deadline or that we would fail to produce the tanks because the parts are supplied by Russia. They named the cost of the contract and the number of tanks to be supplied, though this is a commercial secret and should not have been made public. I can only say that the contract is profitable not only for the plant but for the whole country also.

Q: Is T-80UD supplied to Pakistan any different from those Ukrainian troops use?

A: Yes, we made certain changes in construction: we upgraded the air filters and engine cooling system. We even constructed our own tank tower, because previously they were supplied by a plant in Omsk, Russia. The other day we tested the new mounted gun system. T-80UD is going to be a totally Ukrainian tank.

Q: And how is the contract?

A: Everything is fine. So far we have shipped three loads and received our pay on time. The point is that the internal financial situation does not satisfy us. Prominvestbank has been supporting us much, supplying turnover funds, pending payment from Pakistan. But if earlier we received loans at an 18% of annual interest rate, it has now risen to 49% a year. The hryvnia rate is falling, which means we will have less money for technical re-equipment.

Q: Do you think you will be able to compete on the arms market? You will need to keep mastering new types of products, which means you will have to purchase new equipment. However, during last few years the plant did not buy a single machine.

A: We have saved much before. And we only purchase specialized equipment for a certain type of production. The point is that people be kept working all the time, even in the hardest times, and now we can offer a new type of arms, an anti-aircraft complex. In addition there are many non-weapons offers, such as diesel engines for locomotives, combines, and other types of machinery.

AP PHOTO:
A completely Ukrainian tank is a very good thing. If only nobody wants to sent it down our streets...