In Ukraine, more than half of the capacities of the "Technological Forces" company are idle

In Ukraine, more than half of the capacities of the "Technological Forces" company are idle

Leading Ukrainian manufacturers of "Technological Forces" were unable to utilize 63% of their production capacity in the interest of the state.

This was reported to Militarnyi by the executive director of "Technological Forces of Ukraine" Kateryna Mykhalko.

"In such a case, the state should allow exports. Right now, when armaments are not being purchased and exports are banned, 63% of production capacity is idle," stated Kateryna Mykhalko.

Experts emphasize that Ukraine needs its own powerful defence-industrial complex, but there is a risk of its disappearance.

Successful companies are leaving, and others are ceasing to develop.

"We, as an association, believe that the state must make unpopular decisions, because if this continues into 2025, we will be left without our own military developments. This will negatively impact national security," added Kateryna Mykhalko.

Some leading Ukrainian drone manufacturers have already relocated to Europe.

"About 85% of the members of ’Technological Forces’ have already moved part of their capacities or plan to do so," added Kateryna Mykhalko.

To partially address this issue, in 2024 Ukraine initiated a new financing mechanism for the procurement of armaments for the Defence Forces with Denmark, known as the "Danish model."

This initiative involves funding Ukrainian defence enterprises by the Danish government and other countries.

Ukraine compiles a list of projects that require funding, while Danish specialists verify the recommended companies, assessing their capability and experience in fulfilling contracts.

Thanks to the "Danish model" in 2024, Ukraine’s Defence Forces received armaments worth nearly 538 million euros.