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Ukraine Missile Facilities

A.M. Makarov Pivdennyy (Yuzhnyy) Machine-Building Plant Production Association

Other Names: Pivdenmash, Yuzhmash (Виробниче Об'єднання Південний Машинобудівний Завод імені А.М. Макарова)

Location: Dnipropetrovsk

Subordination: National Space Agency of Ukraine

Homepage: http://www.yuzhmash.com/index_en.htm

Background: Conversion of the Plant 586 to missile production began when Academician Mikhail Yangel, who previously headed OKB-1 (Experimental Design Bureau No. 1, currently RKK Energiya) of NII-88 (Scientific Research Institute No. 88, currently the Central Scientific Research Institute of Machine-Building, or TsNIIMash), was authorized to convert the chief designer's division of the plant into an autonomous design bureau designated OKB-586 (subsequently designated Yuzhnoye Design Bureau, currently Pivdenne Design Bureau) in 1954. Unlike Sergey Korolev, who was a supporter of missiles using cryogenic fuels, Yangel preferred a liquid fuel technology. Yangel's OKB-586 was established to pursue development of ballistic missiles using storable liquid fuels. Plant 586, which was renamed Yuzhnyy Machine-Building Plant in 1966, and subsequently Yuzhnoye Machine-Building Production Association, or Yuzhmash, concentrated on producing ballistic missiles designed by the Yuzhnoye Design Bureau.[1] Missiles produced at Yuzhmash included R-5M [SS-3 'Shyster'], R-12 [SS-4 'Sandal'], R-14 [SS-5 'Skean'], R-16 [SS-7 'Saddler'], R-36 [SS-9 'Scarp'], MR UR-100 [SS-17 'Spanker'], and R-36M [SS-18 'Satan'].[2] During the Soviet era, the plant was capable of producing of up to 120 ICBMs a year.[3] In the late 1980s, Yuzhmash was selected to be the main production facility of the RT-2PM2 Topol-M ICBM. However, the break-up of the Soviet Union eliminated Yuzhmash as a potential manufacturer.[4]

Pivdenmash is now one of the largest industrial enterprises in Ukraine. As of January 2003, Pivdenmash employed 13,000 workers. In 2001 it sold production worth 335.6 million hryvne ($62.7 million as of December 2001), although in 2002 its sales decreased to 122.1 million hryvne ($22.8 million as of December 2002).[5] In addition to production facilities in Dnipropetrovsk, Pivdenne Production Association includes the Pavlohrad Mechanical Plant, which specialized in producing solid-fuel missiles.[1] Pivdenmash's importance was further bolstered by its links to Ukraine's former President Leonid Kuchma, who worked at Pivdenmash between 1975 and 1992. He was the plant's general director from 1986 to 1991.[6]
Sources:
[1] Pavel Podvig, ed., Russian Strategic Nuclear Forces (Cambridge: MIT Press, 2001), pp. 160-161.
[2] Pavel Podvig, ed., Russian Strategic Nuclear Forces (Cambridge: MIT Press, 2001), pp. 178, 185, 188, 190, 198, 213, 218.
[3] Ilya Bulavinov, "Mir vo vremya Kuchmy," Kommersant, 12 February 2001, p. 2; in Integrum Techno, http://www.integrum.com/..
[4] Pavel Podvig, ed., Russian Strategic Nuclear Forces (Cambridge: MIT Press, 2001), p. 162.
[5] "Yuzhmash vypustit obligatsii," Delovaya nedelya, 31 January 2003; in Integrum Techno, http://www.integrum.com/.
[6] "Kuchma priyedet v Moskvu," Nezavisimaya gazeta, 16 February 2000; in Integrum Techno, http://www.integrum.com/.

Activities: Pivdenmash is no longer involved in the manufacture of ballistic missiles. However, Pivdenmash specialists continue to service Russian ballistic missiles and visit Strategic Rocket Forces (SRF) missile bases to perform repairs and maintenance.[1] To help Ukraine meet its disarmament obligations, a missile elimination facility was established at Pivdenmash. The plant has dismantled all of Ukraine's SS-19 ICBMs, including the rocket motors and fuel tanks, at the rate of four per month beginning in October 1995, with the final SS-19 missiles being eliminated in February 1999.[2]

Pivdenmash remains active in the space launch vehicle field. It has been involved in the Sea Launch program since 1996.[3] Pivdenmash, in collaboration with the Pivdenne Design Bureau, developed and produces the first two stages of the Zenit-3SL rocket used in the Sea Launch program. Other participants in Sea Launch include Boeing Commercial Space Co. (with a 40% share), RKK Energiya (25%), Kvaerner Maritime (20%), and Pivdenne Design Bureau, which together with Pivdenmash has a 15% share in the project.[4]

Pivdenmash is also one of the leading companies in the Kosmotras joint venture. Pivdenmash, Pivdenne Design Bureau, and Khartron control 50% of the joint venture, and the remaining 50% is split among various Russian firms. Kosmotras' main project is the Dnepr (Dnipro) SLV, a converted R-36M-series [SS-18 'Satan'] ICBM.[5] The SS-18 conversion work is conducted at the Baykonur Cosmodrome in Kazakhstan, and not at Pivdenmash facilities.[6] Pivdenmash products also include the Tsiklon-3 SLV.[7] Tsiklon SLVs are based on the R-36 [SS-9 'Scarp'] ICBM. In 2001 Pivdenmash began developing the Tsiklon-4 variant for use in collaborative projects with Brazil. The Italian firm Fiat Avia will participate in financing the development of the Tsiklon-4. Modernization is to include the enlargement of fuel tanks and the increase of the useful cargo weight of the rocket.[8] Pivdenmash continues to view rocketry as its core business. According to General Director Alekseyev, if Pivdenmash manages to sell eight or nine rockets a year it will be able to consider expanding its work force.[9]

In the early 1990s, there were reports that Pivdenmash was preparing to start manufacturing small arms and tactical missiles of unspecified type for the Ukrainian army.[10] These plans were not implemented, however.

Instead, Pivdenmash has focused on expanding its civilian production, which was already a major area of its activities during the Soviet period, when it produced agricultural tractors at a rate of up to 50,000 a year.[7] In 1998, Pivdenmash began assembling tractors in collaboration with the US company John Deere.[11] Other areas of production include combines and other agricultural machinery.[12] Conversion activities, financed by hard currency earned through the Sea Launch project, began with such items as toys and kitchenware. Pivdenmash also produces trolleybuses, and has organized streetcar production in cooperation with a Czech firm.[9] By 1998, Pivdenmash had produced several hundred trolleybuses.[13] Pivdenmash is also involved in the construction of wind power stations in Ukraine. A government program approved in 1997 provides for the construction of wind power stations capable of producing 1900 MW by 2010. Pivdenmash is a leading Ukrainian enterprise in this field.[14] In addition, Pivdenmash controls an airline, Yuzhmashavia/Pivdenmashavia, which is one of the three air carriers authorized by the Ukrainian government to transport military materiel and related controlled goods for export.[15]

Pivdenmash's sensitive work on ballistic missiles has made it a target of foreign secret services. In 1995, a citizen belonging to an unnamed "adjacent country" was deported allegedly for seeking access to classified rocket technologies. In 1997-98, several North Korean diplomats were expelled for attempting to gain access to such technologies.[16] In 1996, three citizens of the People's Republic of China were arrested, along with several Pivdenmash employees, allegedly for engaging in espionage. The Chinese citizens were reportedly seeking ICBM engine information.[17] The three Chinese citizens, employees of the Shanghai Institute of Power Machinery, were expelled from Ukraine, and several Ukrainian security officials were disciplined for "provoking an international incident."[18]
Sources:
[1] Viktor Yuzbashev, "Parovozik iz Romashkovo," Zhurnal Profil, 15 September 1997; in Integrum Techno, http://www.integrum.com/.
[2] M2 Presswire, 3 August 1999; in "United States and Ukraine extend Nunn-Lugar Cooperative Threat Reduction agreement," Lexis-Nexis Academic Universe, http://web.lexis-nexis.com/universe.
[3] "Prisoyedineniye Ukrainy k RKRT dalo vozmozhnost uchastiya v mezhdunarodnom proyekte "Morskoy start" - V. Gorbulin," UNIAN, No. 42, 18-24 October 1999.
[4] "'Morskoy start' dobavil optimizma rossiyskim raketostroitelyam," Zhurnal Profil, 16 February 1998; in Integrum Techno, http://www.integrum.com/.
[5] V. Voronin, "Naznachen pervyy start 'Dnepra'," Novosti kosmonavtiki, No. 15/16, 1998, p. 44; in WPS Oborona i Bezopasnost, 4 November 1998; in Integrum Techno, http://www.integrum.com/.
[6] Boris Andresyuk, "I konversiya, i raketa-nositel," Golos Ukrainy, 31 March 2001, p. 6; in WPS Oborona i Bezopasnost, 31 March 2001; in Integrum Techno, http://www.integrum.com/.
[7] Dmitriy Tymchuk, "Prizemleniye kosmosa," Den, 12 April 2001, pp. 1, 2; in WPS VPK i Biznes/Konversiya, 25 May 2001; in Integrum Techno, http://www.integrum.com/.
[8] Valentin Badrak, "Tsiklon-4 - novaya vizitka ukrainskogo kosmosa?" Ekspert-tsentr, 20 February 2001; in Integrum Techno, http://www.integrum.com/.
[9] Gennadiy Tsurkanov, "'Kosmicheskiye' dengi rabotayut na zemnyye proyekty," Region, 4 December 1999, p. 6; in WPS VPK i Biznes/Konversiya, 4 December 1999; in Integrum Techno, http://www.integrum.com/.
[10] "Na Ukraine razrabatyvayut sobstvennoye strelkovoye oruzhiye," Agentstvo PostFactum, 29 April 1994; in Integrum Techno, http://www.integrum.com/.
[11] "Na 'Yuzhmashe' nachali sborku amerikanskikh kolesnykh traktorov," Golos Ukrainy, 22 October 1998, p. 6; in WPS VPK i Biznes/Konversiya, 27 November 1998; in Integrum Techno, http://www.integrum.com/.
[12] Renata Yambayeva, Grigoriy Rudenko, "'Rostselmash' obvinili v khishchenii gossredstv Ukrainy," Kommersant, 28 November 2002, p. 16; in Integrum Techno, http://www.integrum.com/.
[13] "Dnepropetrovskiy 'Yuzhmash' vypustil uzhe neskolko soten trolleybusov," Gudok, 27 February 1998, p. 1; in WPS VPK i Biznes/Konversiya, 13 March 1998; in Integrum Techno, http://www.integrum.com/.
[14] "Dubina budet rukovodit stroitelstvom vetryakov," LIGA online, 26 June 2001; in Integrum Techno, http://www.integrum.com/.
[15] Valentin Badrak, "Gosudarstvennyy kontrol chuvstvitelnogo eksporta v Ukraine," UNIAN, No. 26, 24 June 2001; in Integrum Techno, http://www.integrum.com/.
[16] Oleg Yeltsov, "Shpionomaniya. SBU i shpiony: 'My ikh lovili - lovili...'," Stolichnyye novosti, No. 38, 22 October 2001; in Integrum Techno, http://www.integrum.com/.
[17] Mikhail Melnik, Raisa Stetsyura, "Ukraina-Kitay-Shpionazh," ITAR-TASS, 31 January 1996; in Integrum Techno, http://www.integrum.com/.
[18] Yanina Sokolovskaya, "Mesto poiska kitayskikh shpionov izmenit nelzya - Dnepropetrovsk," Izvestiya, 21 February 1996; in Integrum Techno, http://www.integrum.com/.

Archived Pivdenmash Developments

1/31/2003: PIVDENMASH TO ISSUE BONDS
Delovaya nedelya reported on 31 January 2003 that Pivdenmash plans to issue 18-month bonds worth 50 million hryvna [approximately $9 million as of 31 January 2003] in order to finance the development of Ukraine's space industry.
["Yuzhmash vypustit obligatsii," Delovaya nedelya, 31 January 2003; in Integrum Techno, http://www.integrum.com/.] {Entered 2/18/2003 MJ}

1/27/2003: HELICOPTER ASSEMBLY CONSIDERED FOR PIVDENMASH
Obozrevatel, citing Interfax-Ukraine, reported on 27 January 2003 that Pivdenmash is considering the possibility of assembling light utility helicopters. Pivdenmash is reportedly engaged in negotiations with an unnamed foreign partner.
["Rakety perekuyem v vertolety," Obozrevatel, 27 January 2003; in Integrum Techno, http://www.integrum.com/.] {Entered 2/18/2003 MJ}

12/23/2002: PIVDENMASH PERSONNEL DIE IN AIRCRAFT CRASH IN IRAN
On 23 December 2002, a Ukrainian An-140 aircraft belonging to the Aeromost-Kharkiv airline carrying 47 passengers crashed during approach to the Isfahan airport in Iran. Senior officials from a number of Ukrainian and Russian enterprises, including Pivdenmash, were among the passengers. The delegation represented enterprises involved in an Iranian project to produce the Iran-140 airliner, a copy of the An-140 and traveled to Iran to witness the plane's test flight.
[Mikhail Khodarenok, Roman Ukolov, "Bratskaya mogila v samolete An-140," Nezavisimaya gazeta, 25 December 2002, pp. 1, 10; in Integrum Techno, http://www.integrum.com/.] {Entered 2/18/2003 MJ}

7/24/2002: TSIKLON-4 DEVELOPMENT GIVEN A GREEN LIGHT
On 24 July 2002, Obozrevatel reported that the government of Ukraine has decided to authorize Pivdenmash, Pivdenne Design Bureau, and Khartron to proceed with the development of the Tsiklon-4 space launch vehicle (SLV). According to State Commission on the Military-Industrial Complex Chairman Volodymyr Horbulyn, Tsiklon-4 may earn Ukraine up to $240-260 million in profits over a 10-year period. Tsiklon-4 is to be used in a joint Ukrainian-Brazilian space project to be implemented at the Alcantara space launch facility in Brazil. Ukraine will contribute half of the estimated $180 million cost of the project. Private investments may also be sought. In addition to the firms already named, some 50 to 70 other Ukrainian enterprises will participate in the three-year project. The first test launch of Tsiklon-4 from Alcantara is planned for 2005.
["Ukraina nachinayet realizatsiyu proyekta 'Tsiklon-4'," Obozrevatel, 24 July 2002; in Integrum Techno, http://www.integrum.com/.] {Entered 2/18/2003 MJ}

2/9/2001: PIVDENMASH DIRECTOR ON POSSIBILITY OF RESUMING ICBM PRODUCTION
UNIAN reported on 9 February 2001 that Pivdenmash General Director Yuriy Alekseyev had said that although resuming ICBM production at Pivdenmash was theoretically possible, it would require a great deal of time and significant financial investments. Alekseyev also said that during debates on the START II treaty in the Russian State Duma, Pivdenmash received a query concerning the possibility of resuming missile production.
["Vozobnovleniye proizvodstva boyevykh raket v Dnepropetrovske vozmozhno, no potrebuyet ochen bolshikh sredstv - gendirektor 'Yuzhmasha'," UNIAN Biznes-Novosti, No. 052 (1680), 9 February 2001; in Integrum Techno, http://www.integrum.com/.] {Entered 2/18/2003 MJ}

1/17/2001: POSSIBILITY OF ICBM PRODUCTION RESUMPTION RAISED
Nezavisimaya gazeta reported on 17 January 2001, citing "informed sources" in the Russian Ministry of Defense, that Russian Defense Minister Igor Sergeyev may hold talks with Ukrainian President Leonid Kuchma concerning the possibility of resuming "heavy ICBM" [SS-18] production at Pivdenmash.
["Moskva i Kiev gotovyatsya vozobnovit sovmestnoye proizvodstvo tyazhelykh raket, chemu mogut pomeshat SShA," Nezavisimaya gazeta, 17 January 2001, p. 1; in Integrum Techno, http://www.integrum.com/.] {Entered 2/18/2003 MJ}

7/26/96: ICBM DISMANTLEMENT FACILITY OPENED
An ICBM neutralization facility was opened on 7/26/96 at the site of the Pivdenne (Yuzhnoye) Design Bureau and Pivdenmash Production Association for dismantling and eliminating 130 SS-19 strategic missiles. The US government contributed a significant amount of assistance. It is expected that the facility will eliminate at least four missiles every month.
Sources:
[1] ITAR-TASS, 25 July 1996; in "Kiev Unveils New Center for Dismantling Strategic Missiles," FBIS-SOV-96-145.
[2] Barbara Starr, "Ballistic Missile Destruction Begins In Ukraine," Jane's Defence Weekly, 7 August 1996, p. 8. {Entered 10/9/96 GN}

5/5/96: UKRAINIAN RADA RATIFIED AGREEMENT ON USING SPACE LAUNCH VEHICLES
The Ukrainian Verkhovna Rada ratified an agreement signed by Ukraine and the United States on 11/22/94 which dealt with research into and use of space launch vehicles. The agreement calls for 20 commercial launches through 2002.
Sources:
[1] "Zakon Ukrainy," Holos Ukrainy, 8 May 1996, p. 3.
[2] "Ukraine Ratifies Agreement With United States On Cooperation In Space," The Monitor, 6 May 1996.

2/96: PIVDENMASH PARTICIPATING IN JOINT VENTURE
Pivdenmash is part of a joint venture financed in part by Boeing (20%), Norway's Kvaerner (20%) and Russia's Energiya Concern (25%) They are developing the Sea Launch sea-based space launch complex.
[Ustina Markus "Ukraine's Aerospace Industry," Jane's Intelligence Review, 2/1996, pp. 52-53.]

12/2/95: PIVDENMASH IS PRODUCING TROLLEYBUSES AND STREETCARS.
["Viyna I Myr Pivdenmashu," HOLOS UKRAINY, 12/2/95, p. 1.]

2/94: PIVDENMASH CONVERTS TO PERFUME MACHINES
According to a TACIS Report, Pivdenmash is now making machines to dry rose petals for perfume.
[G. Niehus, D. Larsimont, and H. Slotboom; "Activities In Ukraine," Report from the TACIS Information Office, 2/94, p. 25.]



 

Updated January 2008



Missile Facilities Overview
A.M. Makarov Pivdennyy (Yuzhnyy) Machine-Building Plant Production Association
Kharkiv Scientific Center (Monolit)
Khartron (Hartron) Corporation
M.K. Yangel Pivdenne State Design Bureau
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