This post first appeared on Russia Insider
Russia's biggest holding - 700 companies, 450,000 employees, $20 billion in revenues - but most importantly it represents 30% of Russia's defense industry, and has become a key motor of economic development outside the defense sector.
Russian TV takes a look at a great success story. Transcript below.
Over 10 years, the state corporation Rostec has become the flagship of domestic industry. Vladimir Putin said as much at the award ceremony of the corporation that celebrates its anniversary. According to the President, Rostec not only provides import substitution but also increases the export of Russian products. A quarter of the defense order is produced at its enterprises and the Rostec equipment has already proven itself in Syria.
Denis Davydov reports on how all this was achieved.
Working men. On their chests, they have badges from their companies for excellent work.
Before the reception, the heroes modestly stand aside. They're in contact with relatives because this is an exciting moment.
Sergey Bakhmatov, a tool-man from SIC Uralvagonzavod:
"I was so nervous. The city of Moscow, the plane ride, the President. I'm overcome with emotions."
Sergei Bakhmatov is an innovator. He's a tool-man of the highest 6th level. He has been working at Uralvagonzavod for 36 years. He developed some of the improvements for the T-90 tank, Armata.
On their holiday, the President highlighted the merits of the whole team: of those who are in the hall and those who are on the shop-floor today, which makes 600,000 employees all over the country. 10 years ago, more than half of the enterprises in the pre-bankruptcy state barely made ends meet. In order to save them, they were combined.
“There were a lot of skeptics, but there were even more supporters of this idea. The logic was very simple: we simply could have lost some segments in the defense industry without which we wouldn't be able to create modern weapons systems. They wouldn't exist. And it's unlikely that today our army could demonstrate its power it would hardly look so modern and effective if the enterprises which are critical for the state had been lost.”
Perm Engine Plant. The specific order portfolio is formed for several years ahead. Here workers don't trust AI, instead they're responsible for the lives of passengers. Only manual assembly is allowed. They produce two engines a week.
In the shop where the aircraft engines are assembled all the details are in cellophane bags or covered with a cloth. It's not about secrecy, it's about safety. It's done so that foreign objects don't get into the mechanisms. Instead of buttons, engineers have special ties on their coats.
The engine is assembled and ready for tests. It has a special coloring. Not for beauty but for safety. As the experts say, when rotating, the so-called crow's eye effect is created to scare away birds that can fly in front of the plane.
The serial production of the engine for the MC-21 airliner is ahead. And a new task-high thrust turbines for the Russian long-range aircraft.
Nikolai Andreev, infrastructure director of Perm Motors:
"We will be able to create this engine, it has never been created in Russia. Firstly, it will help us to be independent. It will give a huge synergistic effect for the development of designer schools and technologist schools."
Today Rostec is more about military products. Take Kalashnikov with the legendary assault rifles. By the end of the year, the corporation will have invested almost 5 billion rubles in the modernization of the Kalashnikov concern.
In one of the shops, we can see how another enterprise, the Moscow Machine-Building Plant has changed. They have modern 3 in 1 machines now.
Vasily Shatilov, head of the assembly complex at Chernyshev Moscow Machine-Building Enterprise:
"I want to thank Rostec. This year we got almost 11 new equipment items. It's a joy when you see that the test is going on."
Vasily Shatilov has been working at the factory for 50 years. The President awarded him the Order of Honor.
In the congratulatory address, Putin underlined that the workers of Rostec played an important role in the fight against terrorists in Syria. They are working to modernize the Russian army. But the output of civilian products is also expanding.
Sergey Chemezov, Rostec CEO:
"It's very difficult to rely on the Defense Procurement only. So we decided and it's also said in the strategy that we are to increase the share of civil products to 50% by 2025. Today it's around 30%."
“At the same time, it's important to earn more through the effective management and not because the corporation gains more new enterprises. One cannot expand endlessly, uncontrollably, and we need to understand exactly why the corporation is created, in what direction it should move, what parameters that it should function in so that its work is optimal and as efficient and competitive as possible."
At the meeting, there was also an informal part. Workers raised a glass of champagne with the President.
Denis Davydov, Andrey Grigoriev, Oleg Dubinin, Maria Samsonova, Natalia Gubina for Vesti.
This post first appeared on Russia Insider
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