Reference Number: No. 613-95




November 17, 1995



The Defense Department has announced three industrial partnership awards designed to assist Ukraine in converting its former Soviet military production facilities into commercial joint ventures. These awards bring the number of joint ventures in Ukraine to seven.

The projects total $64.60 million in cash investments. Through the Department of Defense (DoD) Cooperative Threat Reduction (CTR) program, the U.S. government will contribute $47.46 million to these projects. The seven U.S. firms involved will contribute a total of $17.14 million in cash and technology and licensing valued at over $50 million.

The following Defense Nuclear Agency contract awards have been announced:

- Approximately $4.80 million has been awarded to ABB Combustion Engineering,Windsor, Conn., to form a closed joint stock company with Ukraine's Monolit,located in Kharkiv, to convert a manufacturer of aircraft, spacecraft and missile electrical, control and guidance systems into a manufacturer of digital instrumentation and control systems for nuclear power plants. ABB Combustion Engineering will contribute technology and licensing valued at $20 million to the joint venture.

- Approximately $3.03 million has been provided to Die Casters Incorporated,Wayne, N.J., to create a joint venture with Ukraine partner Meridian (formerly Korolev), Kiev, to convert a million electronic and radar equipment facility into a factory that manufactures die cast consumer products, for example,automotive parts and hand tools. The project will upgrade Meridian's diecasting capability by installing process monitoring and control systems and remanufactured die casting machines. Die Casters incorporated will contribute$1.07 million to the project.

- Approximately $2.66 million has been awarded to American Industrial Development (AID) Corporation, Boston, Mass., for a joint venture with Ukraine's Orizon, located in Smela, to convert an electronic apparatus and space navigation equipment plant to a polyvinyl chloride window and door assembly facility. AID Corporation will contribute $469,979 to the joint venture.

Previous DoD funded industrial partnerships in the Ukraine created production ventures in construction and civil engineering, pre-fabricated housing, nuclear electronic control instrumentation and cellular telephones. The projects were initiated under a $50 CTR implementing agreement between the DoD and the Ministry of Machine Building, Military-Industrial Complex and Conversion of Ukraine.

CTR program assistance to Ukraine for defense conversion helps reduce the threat of the proliferation of weapons of mass destruction; assists Ukraine in building a peaceful, commercially viable market economy while reducing its excess military industrial capacity; and promotes opportunities for U.S. industry's entry into a potentially large market for consumer goods and services.