UAH 9.8 Million in Salaries Paid to ChSY Employees


The administration of Chernomorsky Shipbuilding Yard (Nikolaev, Smart-Holding) fully paid off its payroll debt for the previous periods to the shipyard's employees to the amount of UAH 9.8 million. The shareholder of Smart-Holding Vadim Novinsky made a critical decision to allocate the funds for full repayment of the company's payroll debt.

According to Vasiliy Fedin, the Executive Director of Smart Maritime Group (part of Smart-Holding), ChSY is currently completing the restructurization process and implementing an anti-crisis plan that will enable the company to overcome the consequences of major sales market losses due to deterioration of the global market conditions and a military conflict in Eastern Ukraine.

'We have lost our traditional customers from the Russian Federation; other customers are also hesitating to place shipbuilding and repair orders in the country suffering from explosive military actions. However, the company's owner decided to pay off all outstanding salaries to the shipyard's employees,' said Vasiliy Fedin.

He stressed that this decision was made following the business logic: 'We believe in future revival of Ukrainian shipbuilding, but it would be impossible if we failed to keep our skilled human resources and production potential of our shipyards. That is why we decided to divert this investment resource from the holding company's other business lines. Besides, this option became possible due to the management structure optimization of our shipbuilding business and conversion to manufacture of new types of products, including equipment for machine-building and iron and steel companies.'

The Executive Director of Smart Maritime Group believes that transition of the Eastern Ukraine military conflict into the peaceful settlement stage gives hope for renewal of the enterprise's normal operations. 'We have held a number of serious negotiations with our Russian counterparties and hope to put those negotiations into effect as specific contracts, including for Chernomorsky Shipbuilding Yard,' said Vasiliy Fedin.

ChSY is a shipyard with the highest technical potential in Ukraine. The plant has two inclined staples (‘0’ and ‘1’) for construction of ships and vessels with displacement of up to 105,000 tonnes. Flow-line and positional production system is designed for a serial production of vessels with deadweight of up to 9,000 tonnes. Vessel production sites and construction flow lines are located in one covered building about 400 metres long. The shipyard's capacities can fulfill the orders of metallurgical, machine-building, oil & gas enterprises, etc. ChSY is part of Smart Maritime Group shipbuilding holding company (Ukraine).

Smart Maritime Group (SMG) is the largest shipbuilding holding company of Ukraine. It was founded in 2009 to manage the shipbuilding assets of Smart-Holding. SMG integrates two largest shipbuilding companies of Ukraine, Chernomorsky Shipbuilding Yard and Kherson Shipyard.