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Uralvagonzavod Worked Out Long-Term Development Strategy
November 16, 2016
Uralvagonzavod worked out a long-term development strategy, the Kommersant reports. The corporation expects to optimize manufacturing facilities, change the corporate management model and increase military and conventional sales. The strategy is to be reviewed by the Uralvagonzavod Board of Directors on November 22, 2016.
The development strategy is split into three phases. During the first phase (2017 - 2018) Uralvagonzavod is to establish a management company that will manage all the companies of the corporation. Uralvagonzavod is to establish several centers of competences - two would be based in Moscow (IT and R&D CoCs), two - in Chelyabinsk (Elektromashina and Chelyabinsk Tractor Plant), one - in Omsk (Omsktransmash), two - in Ekaterinburg (Uraltransmash and Plant No. 9). Uralvagonzavod’s plant in Nizhny Tagil is to remain the corporation’s core site that will handle metallurgy, steel casting etc. In addition to that, Uralvagonzavod is to restructure non-core assets by 2018.
During the second phase (2019 - 2021) the corporation is to attract investments into conventional business lines and launching innovative products. Uralvagonzavod expects to improve operational efficiency, too.
During the third phase (2021 - 2025) the company is to enter new markets and stabilize its financials. By 2025 the company’s revenue is to exceed 282 B RUB (4.3 B USD at the current exchange rate) and net profit is to reach 24.120 B RUB (368 M USD at the current exchange rate).
As for the conventional business lines, Uralvagonzavod is very ambitious. It expects to increase conventional product share to 40% of total sales and 14% of total exports. The corporation is to become leader in gondola car manufacture and enter Top-3 in special rolling stock manufacture. Furthermore, Uralvagonzavod would likes to be in Top-5 of components and systems manufacture for freight cars and locomotives. Uralvagonzavod also expects to hold 80% of the Russian tram market and become the only tram supplier for governmental needs.
Uralvagonzavod is one of Russia’s largest freight car manufacturers.