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11:39
KERCH-BASED ZALIV ASKING CABINET TO LEND IT AROUND UAH 10 M TO COMPLETE UPGRADE PROGRAM

Kyiv, August 4 (Interfax-Ukraine) – OJSC Zaliv Shipyard (Kerch, Crimea), a partner of AvtoKrAZ holding company, has asked the Cabinet of Ministers to allocate it around UAH 10 million to complete a program to develop its production facilities that it started in 2007.

The company's press service gave the information to Interfax-Ukraine on Monday, referring to its director general, Oleksandr Ivlev.

"At present, the upgrading program has been 80% fulfilled, but the financial crisis has forced the investor to stop financing," the press service said.

"Knowing the cabinet's plans to support the domestic shipbuilding sector, the shipyard hopes that our problem will be addressed, and that the government will allocate a loan to the shipyard," the press service said.

The company said that the 2007-2009 upgrading program worth UAH 80 million, which was realized with the support of the key shareholder, includes not only the acquisition of new equipment, but also the reconstruction of buildings and road repairs.

According to the upgrade plan, the most of the funds would be spent on the upgrade of equipment.

Ivliev said that the realization of the program would make the shipyard one of the best in Europe, which would considerably improve its efficiency and the quality of commercial and special ships it could build.

"In addition, the shipyard is improving its abilities to realize state projects to build Ukrainian corvettes and equipment for the oil and gas sector," he said.

OJSC Zaliv Shipyard is one of the leading shipbuilding enterprises in Ukraine and Eastern Europe. Its core business is the production of tankers, chemical and container carriers, and drilling platforms for oil and gas extraction.

In 2006, the company was included in the AvtoKrAZ holding company.

The average monthly number of the plant's employees grew by 97 people, to 2,227.

OJSC Zaliv Shipyard in 2008 saw a net income of UAH 240 million, which was 46% up compared to 2007. Its net loss in 2008 was UAH 87.7 million.

In 2009, the shipyard plans to double production year-over-year, to UAH 521 million. Its projected sales are estimated at UAH 430 million in 2009, which is 80% up year-over-year.

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