Ukraine takes center stage as an arms developer and producer
An examination of recent developments in arms production in Ukraine
First some background. Ukraine has been a major player in arms production and export since its independence and before that as part of the Soviet Union.
In regards to tanks both the Soviet era T-64 and the T-80U were designed by KMBT and built in Ukraine at the Malyshev Factory both in Kharkiv Ukraine.
Motor Sich has manufactured engines for over 100 years and is most famous for the manufacture of helicopter and aircraft engines headquartered in Zaporizhzhia, Ukraine. Almost all Russian helicopters feature engines from Motor Sich
Finally there is Antonov, for almost 80 years the Anotov name has been synonymous with large transport aircraft in Eastern Europe. Antonov is based in Kyiv Ukraine.
Almost all of these companies have been nationalized by Ukraine and now fall under the umbrella of Ukrainian Defense Industry formerly Ukroboronprom
This past week has been a momentous one for Ukraine, firstly because the first International Forum of Defense Industries (DFNC1) was held in Kyiv. But secondarily and perhaps more importantly in regards to the deals that have been made on major joint projects for arms production and development that will result both in Ukraine and worldwide.
The first International Forum of Defense Industries takes place in Kyiv
The first International Forum of Defense Industries (DFNC1) was held in Kyiv on Sept. 29. Reportedly bringing together 252 companies from more than 30 countries that produce a full range of weapons, military equipment and defense systems. The forum was jointly organized by three ministries: the Ministry of Strategic Industries, the Ministry of Defense and the Ministry of Foreign Affairs.
Manufacturers of tanks, artillery, drones, ammunition, innovative software developers and owners of unique complex technologies from partner countries took part in the event.
The key slogan DFNC1 – is building an arsenal of the free world together, because freedom needs strength to protect itself from tyranny.
From the press release by the Ministry of Foreign Affairs of Ukraine:
"An important event of the forum was the creation of the Alliance of Defense Industries, which can be joined by every manufacturer of weapons and military equipment from around the world. At the time of the forum's closure, 38 companies from 19 countries had joined the Alliance of Defense Industries, "
Within the Forum, the Ukrainian side signed 20 documents with foreign partners. These are agreements and memoranda on the manufacture of drones, repair and production of armored vehicles and ammunition. Among the formats of cooperation – joint production, technology exchange, supply of components.
Rheinmetall receives the go-ahead from a German Federal agency to construct its factory in Ukraine
Rheinmetall announced that a strategic cooperation initiative launched back in May of 2023 between Rheinmetall and Ukraine’s state-owned Ukrainian Defence Industry group (UDI), the former Ukroboronprom, has taken another step forward. On 28 September Germany’s Federal Cartel Office, Bundeskartellamt, cleared the way for establishing a joint venture between Rheinmetall Landsysteme GmbH and UDI in Kyiv. Authorization from other relevant agencies has already been applied for and is expected to come shortly.
The German Federal Cartel Office said in its press release of 28 September 2023.
“The joint venture is to be based in Kyiv and engage in service and maintenance as well as the assembly, production and development of military vehicles. It will initially operate exclusively in Ukraine. There will be no competitive overlaps in Germany, nor are there any indications of competition concerns. The Bundeskartellamt cleared the transaction within one month.”
Under the agreement, Ukraine will benefit from comprehensive technology transfers; from the creation of defense technology capabilities at home; from additional local value added; and from the prompt delivery of military equipment from Germany.
As a first step, cooperation will focus on the maintenance and repair of vehicles transferred to Ukraine under the German government’s multilateral equipment exchange programme as well as those directly supplied to Ukraine by Germany.
In later phases, based on a comprehensive transfer of technology, the cooperation partners intend to jointly produce selected Rheinmetall products in Ukraine. Looking ahead, cooperation between Rheinmetall and UDI could also involve the joint development of military systems by teams of Ukrainian and German specialists, including for subsequent export by Ukraine.
Ukraine in talks to join NATO-standard armored vehicle production
The European branch of the American Corporation General Dynamics, the Eastern European Industrial Conglomerate Czechoslovak Group and Ukrainian Armored Technique are considering the licensing production of ASCOD infantry fighting vehicles. According to Ukrainian Armored Technique’s Facebook page
The ASCOD platform features unique ballistic and mine protection systems, providing STANAG 4569 Level 4 ballistic protection (14.5mm armor-piercing shot) and Level 4a/4b mine protection (10kg explosive blast).
Experts of the company together with the military of the Armed Forces, the NNDI of tests and certification of weapons and military equipment and specialists of the Czechoslovak Group visited the production capacity of General Dynamics European Land Systems in Trubia, Spain, where acquainted with the unique production of wheeled and tracked vehicles using advanced technologies and in accordance with NATO standards. Ukrainian soldiers tested IFVs in order to compare the dynamic properties of ASCOD with existing armed forces equipment.

Some analysis - These two announcements regarding joint ventures with General Dynamics and Rheinmetall demonstrate that not only is Ukraine developing domestic industrial capability to repair advanced armored vehicles already in Ukraine, but also manufacturing both parts and vehicles and finally progress to jointly developing new vehicles tailored to Ukraine's needs and for export. It should be noted that dating from Soviet times Ukraine was a major designer and developer of both aircraft and armored vehicles
Turkish company Baykar invests $ 100 million USD in Ukraine
Ukrinform reports Turkish company Baykar, which produces Bayraktar TB2 drones, is investing $100 million USD in three facilities in Ukraine, including the construction of a drone plant.
This was stated by the Director General of Baykar Halyuk Bayraktar at the Forum of Defense Industries in Kyiv, according to the correspondent Ukrinform.
“We have three main investments in Ukraine. One of them is a – plant. Then we have a service center, as well as a head office here... This is an investment of about $ 100 million, and the process is already done. Construction has already begun. It will take about 1.5 years to complete. We plan to employ at least 300 people here. Cooperation continues. We also have some challenges ahead of us. Our supply chain, research and development and human capital through the effects of war and the regulatory environment, especially those that will support these investments ”
Czech assault rifles CZ BREN 2 to be produced in Ukraine.
One of the announcements to come out of Ukraine's first International Forum of Defense Industries (DFNC1) were reports that the Czech assault rifles CZ BREN 2 will be produced in Ukraine. The Czech Republic will provide a license and help to establish the production of ammunition for them in Ukraine. The rifles from Česká zbrojovka will be manufactured under the Sich brand.
Ukraine already has a limited number of these weapons in service. The CZ BREN 2 has been the main service rifle of the Czech army since 2017.
One of the features of the BREN 2 is the ability to switch calibres between 5.56x45 NATO or the ubiquitous 7.63x39 simply by swapping out the barrel and mag well
Kuleba: African countries interested in hosting Ukrainian defense plants on their soil
Several African countries are interested in buying Ukrainian weapons and creating Ukrainian defense manufacturing plants on their soil, Foreign Minister Dmytro Kuleba stated on Sept. 30 at Ukraine's first International Forum of Defense Industries (DFNC1) was held in Kyiv.
Kuleba said that as a geographic region, Africa was one of the top customers of Ukraine's defense contractors and its countries would like Ukrainian products to return to their markets.
Ukraine has stayed within the top 20 defense exporting countries for the majority of its independence, occasionally climbing to 11th place. The country is especially renowned for its advanced aircraft engines.