KMZ Leaves USC and Becomes an Independent Player in the Shipbuilding Market

The holding and the corporation will continue to cooperate on certain agreements

The Kingisepp Machine-Building Plant (KMZ) military-industrial holding has left the structure of the United Shipbuilding Corporation (USC). The company and the corporation continue to cooperate on certain agreements, said KMZ owner Mikhail Danilenko.

Gas turbine engine DV71L

According to him, the staff of KMZ will be fully preserved, and in the future the company will attract new specialists to implement large projects.

KMZ and USC remain large, significant partners for each other with several dozen active contracts, and active work is underway on import substitution in the field of large shipbuilding.
Mikhail Danilenko, owner of KMZ

Danilenko explained that the implementation of projects within a state-owned company at the stage of experimental design work and the development of products is a more complex and not always effective path.

Therefore, we decided to go as independent enterprises in the position of customer-contractor.
Mikhail Danilenko, owner of KMZ

KMZ joined USC in July 2025. The plant was supposed to become a basic platform for the production of import-substituting low-speed high-power engines.

Read more materials on the topic: