RIA reports that our favorite Russian gun maker Izhmash, makers of the AK and Saiga rifles, has just won a $400 million ($13 billion rubles) contact to produce Vikhr-1 missiles, long-range anti-tank missile usually fired from attack helicopters. This will go a long way to helping the struggling company back to solvency.
The Vikhr-1 contract will enable Izhmash to tackle almost all of its financial problems, he said in late May, adding its current debt stands at 3 billion rubles.
Busygin also said the company has asked the Russian government for financial assistance to complete its merger with gun-maker Izhmekh under the Kalashnikov brand. The two companies, both based in the city of Izhevsk, have been experiencing financial difficulties and a sharp drop in production output.
The two enterprises will become the new Kalashnikov Corporation, first proposed by Deputy Prime Minister Dmitry Rogozin, who oversees the Russian defense industry. It is due to be registered in time for Russia’s Arms Makers’ Day, September 19.
Thanks for Albi for the tip.