ZAZ will be the recovery procedure

ZAZ will be the recovery procedure

Recently the decision was made to enter a rehabilitation procedure in the framework of the initiation of restoration of solvency in respect of Zaporozhye Automobile building Plant. Ukrainian company, the only one in the country with a full production cycle, will take place in the process of rehabilitation, says the press-service of UkrAVTO Corporation.

The importance of this decision to preserve the industrial potential of the country cannot be overemphasized. Search by Ukraine of the ways their own identity and integration into European and world space is still a topical problem of development of innovative model of economy and its component – the automotive industry, which traditionally demonstrates the ability to generate new technology and to implement a strong multiplier impact on other activities.

The solution to the problem of intensification of the automotive industry in the worsening economic and energy situation in Ukraine should become one of the most important priorities of the state industrial policy, since high-performance and high-quality production of cars opens up considerable potential for increasing its volumes to ensure domestic demand and stable exports.

Transformation of the Ukrainian society requires the restoration of industrial potential of Ukraine, which directly depends on the capacity of the automobile industry, increasing the volume of sales of domestic cars, achieve an effective counterweight to competition in world markets.

The value of automotive manufacturing grows in depth change in information, and new innovative technologies need the development of new types of competitive products in internal and external automotive market, the achievement of investment attractiveness of the industry in connection with Ukraine’s accession to the WTO. Remains actual and a problem of development of scientific and technological potential of the country.

But the decision, which ruled the commercial court, it is only the first step towards the restoration of full functioning of the plant. For the resumption of the activities necessary and the will of the state, which is supposed to create a favorable investment climate, peace and overcoming political instability and revival of the domestic market of new cars.

Alternative to the internal market may be the implementation of orders for production from the world’s automakers exported, as the technical equipment of the plant and its key personnel allow, It is an extensive practice among automakers and ZAZ can take its rightful place among the other industrial giants. These are the components that will become the Foundation of what the plant will again be ready to work and produce as your model car and to execute orders of world manufacturers to produce cars.

The decision provides for the implementation of the rehabilitation plan, which is designed for 6 months. Key aspects of the plan are provisions for restoring the solvency of Zaporozhye Automobile building Plant, saving infrastructure and production capacities, as well as the resumption of car production. It is in the interests of national economy of Ukraine, which is experiencing hard times, and reflects the understanding by creditors external factors that led to the suspension of production, and unconditional support for the efforts of the plant for preservation of production potential.

Also important is the fact that the rehabilitation plan is considered and aspects of the industrial enterprise activity, as the improvement of the social sphere of the plant, together with the restoration of solvency, to preserve existing and create new high-tech jobs, as well as to introduce tax deductions to budgets of different levels. In addition, this in turn will provide the development activities of manufacturers and suppliers of components, which also will be busy.

“We welcome the decision of the commercial court, which took a balanced and rational decision. By the procedure of reorganization, the company will be able to resume their activities. But, more importantly, Ukraine, as an industrial state, in the process of rehabilitation may be able to save the most important for the industry plant. Many countries are chosen as points of growth the automotive industry, and we hope that the revival of Zaporizhia Automobile building Plant will become a signal for the state, which will draw attention to the industry and will create conditions for investors,” said Mykola Yevdokymenko, who today continues to be responsible for the organization of work of the plant.

We will remind that in respect of Zaporozhye Automobile building Plant at the end of last year, was brought about restoration of solvency, due to the difficult location of the plant, the causes of which were a dramatic reduction of the new car market, the loss of foreign markets caused by changes of geopolitical conditions and catastrophic growth of debts on foreign currency loans caused by the devaluation of the national currency.

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