Malyshev Plant - Ukraine

The beginning of the tank building in Ukraine was marked by the creation of specialized design bureau in machinebuilding at the Kharkiv steam-locomotive plant (presentday "V. Malyshev Plant") in 1927, which in 1979 was conferred the name of one of the creators of the legendary tank T-34, chief designer, O. Morozov. T-34 beaome the most popular tank after the World War II.

In 1986 the Malyshev Factory started production of the T-80UD tank equipped with a 6TD-1 engine developing 1.000 hp. The engine systems ensure operation of the tank under hot (up to 55°C) and dusty conditions.

As of late 1999, production capacities of the Kharkiv plant named after Malyshev were about 30 percent loaded (There were times, when the plant produced up to 800 tanks a year). Besides the large Pakistani contract, the plant had about 10 minor contracts.

In September 2000 Malyshev signed an agreement to renovate armored vehicles with the United Arab Emirates. The deal gives Malyshev sole rights to overhaul and upgrade Soviet-manufactured tanks and armoured personnel carriers in the Gulf republic. Improvements will include installing a more powerful engine and modernised electronics. The company will also offer its services to other weapons owners in the region.

The UkrOboronProm state defense industry consortium audited the Malyshev Plant (Kharkiv) in November 2011 to clarify the situation surrounding its finances and operations. According to the director of UkrOboronProm, the Malyshev Plant has substantial problems and has run up large debts in previous years, but will be able to fulfill its current contract to supply BTR-4 APC’s to Iraq.

Currently, the Malyshev Plant manufactures the T-80UD battle tank developed by KhKBM in the mid-1980s for the Soviet Army and produced since 1985. Disruption of the long-lasting cooperation links and absence of state defense orders in the early 1990s required that the enterprise wholly restructure its operations and establish new business links within Ukraine in order to sustain production lines. A focused effort was undertaken to engage a number of manufacturers that used to turn out components for aircraft, spacecraft, shipbuilding, automotive, and other industries.

The Kharkiv Malyshev Plant is an example of a successful conversion. The association, in addition to the parent enterprise in Kharkiv, has sister companies in Crimea, and Zakarpattia, with a workforce of 60,000. In May 1999, the Kharkiv Malyshev plant put into operation a conveyor for the assembly of Obriy combine harvesters, with technology from the international agricultural corporation New Holland Bison. The plant has already received an order to manufacture 13 combines for farmers of the Kharkiv region who are ready to pay $180,000 per machine. The plant is manufacturing its sixth shipment of tanks T-80 UD (55 machines IF-U) under Pakistani contract.

Ukrainian farmers prefer to purchase U.S. grain combines and tractors rather than Russian or Ukrainian combines. John Deere, Case Corporation, New Holland, and AGCO have imported equipment into Ukraine. A difficult economic situation during 1991-1997 generated a sharp drop in production of specific types of agricultural equipment and machinery. In the former Soviet Union, enterprises were strongly production-oriented, and did not concern themselves with sales, marketing, and customer service. All domestic manufacturers of agricultural machinery have similar problems such as old equipment, the absence of modern technologies, low solvency of Ukrainian farms, and a lack of credits. Generally, these plants are only running at a production capacity of 10-20%.

Two Ukrainian plants have signed agreements to assemble "Bizon" grain-harvesting combines from Polish components. The Kovel Agricultural Machinery Plant has signed its first contracts to assemble "Bizon" grain-harvesting combines. The "Malyshev Plant" in Kharkiv has also signed a contract with "Bizon". The Polish banks financed this contract. During the four years (1999-2002), the "Malyshev Plant" plans to localize manufacturing of 60% of the machine parts needed for Bizon combines. In 1998, the plant planned to manufacture 120 "Bizon" combines and by 2002 the plant was expected to manufacture 1,000 combines annually.

Kharkiv region is heavily industrialised and is the main economic center and transport hub of north -eastern Ukraine, with an international airport. It is famous for the manufacture of tractors, turbines and engines. one of its biggest enterprises - the Malyshev factory - makes T80 tanks but has diversified to produce coal-mining machinery, sugar-refining equipment and wind farm equipment. Another important local employer is Stroyhidravlika, a factory which makes equipment for construction and agriculture. Kharkiv is also home to the famous Antonov aircraft factory. Kharkiv's industry has been hit hard by the economic decline since independence and factory closures have created high unemployment in the area. Kharkiv region's local authorities were among the slowest in Ukraine to implement privatisation, particularly in the agricultural sector. The main crops are grain, sugar beet, maize, fruit and vegetables. Pig- and cattle-breeding are also important.