UVZ engaged with the Republic of Bashkortostan

The government of Bashkortostan and the founders of Honghua CIS LLC (OJSC «Research and Production Corporation «Uralvagonzavod», OJSC VTB Leasing, Sichuan company Honghua Group, signed a Memorandum of Cooperation during Oleg Sienko’s, CEO of OJSC «Research and Production Corporation «Uralvagonzavod» business visit to the Republic of Bashkortostan.

According to the document signed in Ufa, the parties are to provide favourable environment to create a rig manufacturing and maintenance plant for oil and gas exploration and development, using Bashkortostan facilities. As a part of the investment project, Honghua CIS LLC will locate its production facilities at OJSC «Engineering Company «Knight» (a part of UVZ Corporation) in Ishimbay.

At current an engineering project of the plant and a construction plan are under development. Aside from positive economic effect such large scale investment project will bring to Bashkortostan social significance. It will create new well-paid jobs and provide decent working conditions. The President of the Republic of Bashkortostan Rustem Khamitov stressed: «I am twice as happy to discuss today implementation of the project that will be located in the Republic of Bashkortostan. I would like to notice straight away that for us, for the government agencies of the republic, it is a very significant and interesting offer... We know that we will have to work closely together. I have no doubt we will carry out this project. I am sure the project will be a success. I see it that such a strong, large, powerful constituent unit as Bashkortostan will do its best to accelerate the project. I would like to thank you, Oleg Viktorovich, for choosing our republic as a location for this project. I thank your colleagues, who work with you today. I hope that we will have the first results in 2014.»

«The key point here is developing Ishimbay facility, which produces tracked vehicles. We have planned a project for heavy rig production and assembly for oil and gas industry and have already started it. We have outlined ways and we work as planned. This spring we start working at the production site to execute the project. Of course, this is a crucial step. It is important that everybody involved is ready for it, because it determines the success of the project», said Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod». «We expect yearly turnout to equal 9 billion roubles. We set such standards for ourselves. At first, it will be a localized assembly plant. We do not indent to wait. We already receive requests from leasing companies, such as OJSC VTB Leasing. We already participate in auctions and tenders held by oil companies, Rosneft, for example», Oleg Sienko said.

UVZ Year-end meeting

UVZ CEO Oleg Sienko held end of the year meeting of the corporation executives and directors of its subsidiaries and affiliates in Moscow.

UVZ as anticipated showed high financial and economic performance in 2012. Expected revenue will be up to $4.083 billion, including other affiliates, it will exceed $6.514 billon. EBITDA will equal $660.944 million, EBITDA margin — 16.2%, and net income — $394.983 million. In 2012 the Corporation shows high growth rate: sales revenue is 44% higher, compared to 2011, profit on sales is 21% higher, net income is 26% higher.

Over the last three years (2010-2012) UVZ has doubled its key figures (revenue, EBITDA, net income). UVZ is expected to own 38.8% of freight cars manufacturing market share in Russia and 23% in CIS. In 2012 UVZ produced and sold about 28 000 rolling stock units, which is 12% higher than what has been planned for 2012.

The Corporation won a $225.806 million tender for 120 tram cars supply for Moscow. They will be manufactured in 2014-2015 jointly with Bombardier Transportation at OJSC «Uraltransmash». This will be an impetus for the corporation in terms of urban rail transport production, according to UVZ top managers. In 2012 80% (compared to 67% planned) of sales pattern was export of military products, which contributed to over-fulfilling main financial and economic plan of the Corporation. Investment amount in 2012 is more that 30% higher in 2011.

UVZ provides steady rise in labour productivity. Among industrial enterprises in 2012 this figure is expected to equal $78 827, which is 32.2% higher compared to 2011. Generally, in 2012 «Uralvagonzavod» Corporation showed high production rates and financial and economic performance. Defence Procurement and Acquisition for 2013 is estimated to be 1.5 more than in 2012.

At the end of the meeting Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod», said that global and domestic economy is expected to face challenges in 2013. Still, according to Sienko, the Corporation is prepared for difficult economic conditions by cost saving, increasing labour productivity and diversifying its product line.

INDIAN EXPRESS: “Modernised T-90S tank is the next step in development of Russian tank- building”

Interview with Oleg V. Sienko, CEO, Uralvagonzavod

Uralvagonzavod has a very rich history. What was it like in terms of growth and problems?

Uralvagonzavod history is eventful and dates back to 1936, i.e. the year of establishment of the enterprise in Nizhny Tagil. Over its history Uralvagonzavod has made more than 100,000 tanks of different modifications and more than 1,000,000 railway cars. As of today, the most important event for Uralvagonzavod has become the decision to establish a holding company on its basis in 2007. It incorporates more than 30 industrial enterprises, scientific centres and design offices. A new stage in the enterprise history has started from this moment.

What are the major activities of the company? What new projects are you going to initiate in the near future? Are there any specific plans related to India?

Besides producing armoured vehicles, artillery systems, and other armament for land forces, Open Joint Stock Company «Research and Production Corporation «Uralvagonzavod» is the largest manufacturer of modern railway, road-building and agriculture vehicles in the Russian Federation. It also makes other products, including trams, equipment for oil industry. Research and development are in progress for each line; new competitive products are made.

As far as the plans with the Indian partners are concerned, I would like to dwell briefly upon the history of co- operation with India. It started in 1984 when production of assemblies, aggregates and devices for tanks T-72M1 was mastered by joint efforts of our specialists at the Indian factories. In 1984, the first tank T- 72M1 made of the Indian and Soviet components rolled off the production line. Later, USSR contributed to establishing of a factory that still operates. The next stage of our cooperation was marked by winning a tender and signing a contract with the Ministry of Defence of India on T-90S tanks supply in 2001.

Now we proceed to a new stage of our cooperation, which is not limited to licensed production, but implies joint high-technology projects on modernization of existing samples of weaponry and development of advanced ones.

India is one of the largest armaments importers and Russia is its main supplier. What do you think of the Indian armament market?

Prior to estimating Indian armament market, I would like to point out that bilateral relations between the Russian Federation and the Republic of India are rested on strategic partnership, which in our opinion determines the longterm multi-aspect nature of our cooperation. The key features of Indian market are first of all, the volume, complexity and manufacturability of offered products, high level of competition.

Recently, you have exhibit- ed the modernized T-90S tank in India and offered it to the Armed Forces of India. What is the proof that the Indian army needs the new tanks?

Modernized T-90S tank is the next step in the development of the Russian tank- building. All of the T-90S features were upgraded, which instilled more combat and operational capabilities. In compliance with the world tendencies at the heart of modernization were measures aimed at improving fire power, namely the new combat turret module.

The module is equipped with a highly-automated fire control system and ensures superior characteristics as for the range of effective fire, time of preparation for firing, range of target detection and identification at night. The maximum efficiency of tank armament operation is achieved by provision of gunner’s and commander’s equal searching capabilities. It provides the fire control system with high-performance mode «hunter-killer». In order to realise high fire power potential of 125-mm tank gun, modern ammunition is used.

Protection system against conventional means of destruction was upgraded. Today it has a modular armoured protection with improved ERA of the front projection, slats for side projection and splinter-proof liners found on inner surfaces of the driving and fighting compartments. There is an automatic screening system with applicable manual mode.The tank is equipped with electromagnetic protection system.

Battle management system, digital communication channel, inertial and satellite navigation systems, VHF radio set with two independent radio paths and auxiliary electric power supply unit are among the special- equipment of the tank. Air-conditioning system is available for fighting and driving compartments. The latest generation T-90 series tank is essentially superior to its predecessors in main parameters defining its combat efficiency.

Primarily, these parameters are as follows: advanced fire damage, anti-tank weapons resistance, life support system and mobility. The Indian army can evaluate the above mentioned characteristics of the modernized T-90S tank and ultimately use them.

Do you consider India to be a potential market for the modernized T-90S tank?

?In spite of the fact that India is a country of up-to-date tank industry manufacturing indigenous Arjun tank as well, we hope that the modernized T-90S tank will find its place in the Indian market.

Do you intend to produce the tank designed for the Indian market??

It depends on request of our Indian partners.

This June turned to be the most productive for Uralvagonzavod. Could you please share your strategy developed for achieving success?

The strategic goal of OJSC «Research and production corporation «Uralvagonzavod» is to become a leader among the world manufacturers of land forces equipment, which can be done through the following:

- New markets development

- Product diversification

- Consolidation of scientific and technical potential

- Innovative approach in development, production and ?control

- Use of the best world experience

- Effective social politics

To achieve the goal, we created the prerequisites in the form of a fair product portfolio. They also include advanced development of new armoured vehicle samples and the updating programs for earlier products. We are the designers, manufacturers and suppliers of military and support systems at a time. This comes as one of our competitive advantages. ?OJSC «Research and Production Corporation «Uralvagonzavod» integrates major designers and manufacturers of tanks,tank-based vehicles, combat reconnaissance and HQ command vehicles, and self-propelled and towed guns.

The corporation performs the following tasks:

- Production of a wide range of weapons and military ?equipment ?

- Development of weapons and military equipment of ?the future

- Upgrade of military equipment and bringing it to a ?new level

- Implementing the cutting edge technologies into development, production, specialist training and services.

Having a closed-cycle production process, the corporation can invest financial flows into the product diversification and modernization, and control the production process and after-sale service of the equipment, thus strengthening the corporation positions in the world market.

Original text: http://epaper.indianexpress.com/77298/Indian-Express/24-December-2012#page/23/1

UVZ & Bombardier: the future of rail transport

UVZ Corporation initiated a special session at «Transport of Russia — 2012» international forum. At the session Russian and foreign manufacturers together with government representatives and transportation carriers discussed the advantages of rail transport and its development. Flavio Canetti, Senior director of business development department, Bombardier Transportation, spoke about innovative and effective solutions for the Moscow Metro.

He presented the project of a new metro train which is high above the minimum requirements of the tender held for rail cars for the Moscow metro. In particular, wider doors allow loading and unloading passengers more than twice as fast. The new passenger compartment air distribution system creates favourable climate inside the train. The suggested metro train will be produced in Russia by UVZ Corporation using Bombardier technologies. According to Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod», the same approach will be used when producing modern high speed trams.

Sienko claimed that the look of Moscow for the next 30 years will be re-defined by the modernization of public transportation which is to employ world leading specialists. Presumably, other cities will follow the lead. Another point discussed at the session was programs for freight car market.

Oleg Sienko voiced strategies offered by rolling stock manufacturers and consumers. The strategies could maintain the market and give an impetus for manufacturers and consumers to opt for innovative products. Introducing a new federal program to support demand for rolling stock could be the first step towards there. UVZ leader also spoke against railway cars life extension, because the ones that are used now went out of date and no longer meet operating and safety requirements.

Alexey Tsydenov, Deputy Transport Minister of Russia summarized the session. He noticed that the ministry is focused on the issues of transport infrastructure in urban conglomerates and rail transport development. The government is working on demand stimulation for new generation freight cars.

http://www.uralvagonzavod.com/news/38/

Serbia, Russia boost ties

Deputy Premier of Russia Dmitry Rogozin has discussed military-technical cooperation including upgrade of Serbian equipment that would be performed by Russian facilities during his visit to Serbia. T

he President of the Republic of Serbia Tomislav Nikolic, Prime Minister of Serbia, Minister of Internal Affairs Ivica Dacic and First Deputy Prime Minister of Serbia, Minister of Defence Aleksandar Vucic have participated in the negotiations. On behalf of Russian delegation spoke Oleg Sienko, CEO of OJSC «Research and Production Corporation «Uralvagonzavod».

They tackled the possibilities to expand partnership, in particular, cooperation between production facilities, including aviation modernization, equipping heavy and light armoured vehicles and ammunition manufacturing. In the course of negotiations, Russian enterprises offered the Serbian party to modernize armoured fighting vehicles that Serbian army has in its arsenal.

«Our specialists have studies the Serbian potential of defence production and have concluded that it is fully capable of manufacturing competitive items», said Dmitry Rogozin. This way, according to Rogozin, Russian-Serbian military technical cooperation lies in modernization of military equipment produced in Russia and joint manufacturing. «I am referring to a wide range of ammunition products», explained Rogozin. «This all is in the protocol that we are about to sign».

http://www.uralvagonzavod.com/news/37/