Defense companies receive small profits, and this money should be used to develop production, - NAUDI
Domestic defense companies receive a limited profit of 3-7% at most, which is needed to maintain and expand production.
This was stated by the Deputy Chairman of the National Association of Ukrainian Defense Industry (NAUDI) Serhii Vysotskyi during a meeting of the working group on improving the investment climate in the defense industry, Censor.NET reports.
"Currently, our defense industry exists in a system of self-investment. Every week I receive many international delegations of large, multinational companies in the defense industry. None of them is currently ready to invest any of their funds in real production or in real joint programs in Ukraine. ... Our sector is currently operating within a rather narrow profit margin... I have calculated that the maximum profit is between 3% and 7%. We need to invest in new plants, we need to buy components abroad, we need to train our own workers... We need to use this money to buy components, even armor," he said.
According to Vysotskyi, defense companies not only maintain existing production but also constantly expand it.
"The only way to improve the investment climate in the defense industry is to give us the opportunity to invest more. This requires deregulation and appropriate conditions," he added.
