KIEV, May 8 - Following the failed launch of a Zenit-3SL launch vehicle from the Sea Launch platform in the Pacific Ocean on January 30, Pivdenmash cut production by 10.6% year-on-year in the first quarter of 2007, a news agency reported.

Given the failed launch, the launch schedule under the program and, accordingly, the schedule of production have been shifted, Interfax reported citing the space agency.

Overall, space-industry companies increased production volumes 1.3% in the first quarter year-on-year, it said.