So, just how bad off are things at accident prone Khrunichev? Try 30 billion rubes ($825 million) worth of bad off.
That’s how much Russian officials estimate it will cost to overhaul the venerable rocket producer, which has been responsible for a series of Proton launch failures over the past four years.
And that’s just a preliminary estimate. Who knows what else will crop up as officials delve deeper into the innards of the troubled company.
The Moscow Times reports:
Efforts to reform Khrunichev will cost the state over $825 million by preliminary estimates, ITAR-Tass reported, citing Igor Komarov, CEO of the United Rocket and Space Corporation (URSC).
The URSC was created in March in response to earlier Proton failures, but consolidation was accelerated after the collision in May. The corporation is meant to serve as the center of a massive industry consolidation and modernization effort by taking control of the state’s shares in the Russian space industry’s largest contractors, such as Khrunichev.
“A final estimate [of the cost of reforming Krunichev] will be presented to the government by the end of September,” Komarov said at a press briefing held by the URSC on Thursday, ITAR-Tass reported.
The URSC is set to take full ownership of Krunichev and another major space industry firm, Lavochkin.
According to Komarov, Khrunichev cannot survive without measures to reform the company.
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