US-based Oriole Capital Group has agreed to invest $150m in Ukrainian company Ukroboronprom’s Kharkiv State Aircraft Manufacturing Company.

The proposed investment will be used to modernise existing production and processes at Kharkiv’s facilities.

Ukroboronprom’s Kharkiv is anticipated to receive orders for the mass production of the Antonov An-74 aircraft.

Oriole Capital Group CEO Hossein Mousavi said: “This is a monumental step towards our common goals.

“The partnership between Oriole, Ukrboronprom and Kharkiv State Aircraft Manufacturing Company transcends geographical boundaries to bring back to life one of the world’s most iconic and unique aircraft – AN-74.”

Under the terms of the agreement, the companies will focus on re-employment of the plant’s workforce of 3,000 people.

An aircraft and avionics modernisation programme will be launched to differentiate the unique performance capabilities of the AN-74, Ukroboronprom stated.

“This investment agreement with the United States is extremely important for Ukraine.”

Ukroboronprom director general Roman Romanov said: “This investment agreement with the United States is extremely important for Ukraine.

“For the first time, the aircraft manufacturing company of our country has a powerful international investor who plans to provide consistent investments over a number of years.

“Oriole’s investment and operational support will significantly boost the country’s commercial manufacturing capabilities in the region and beyond, and presents a highly strategic opportunity to demonstrate the combined capabilities of a Ukraine-US partnership.”

Kharkiv is also expected to receive orders for the production of spare parts for aircraft, maintenance and pilot training.