Private arms manufacturers say there are no government orders for 2025 to load existing capacities.

Thursday, December 12, 2024
Private arms manufacturers say there are no government orders for 2025 to load existing capacities.

In Ukraine, 75% of 31 private companies in the defense-industrial complex said they are not negotiating to conclude any government weapons contracts for 2025. Only 19% of manufacturers have transitional contracts extended for the next year. Most of these agreements involve production that takes up to five months. In contrast, manufacturers of complex technological products with six-to-eight-month production cycles have almost no agreements.

More than 50% predict that 2025 government orders will load their capacities by less than 30%. Only 13% of companies expect to reach more than 80% of total capacity.

According to Prime Minister Denys Shmyhal, the Ukrainian defense industry’s 2025 capacity will be about $30B. Currently, Ukraine has 800 enterprises in the defense industry. Most were created jointly with Germany to repair and maintain armored vehicles and tanks and to produce modern infantry fighting vehicles, air defense systems, and missiles for them. There are also projects to produce anti-tank grenade launchers and anti-tank mines in Ukraine.

 

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