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Russian Helicopters changing the face of Russia’s helicopter industry

Russian Helicopters, a subsidiary of Oboronprom, part of State Corporation Rostec, discussed a broad range of issues to do with restructuring and upgrading its production capacities and streamlining its management processes at a meeting of the company’s Collegium on 24 April. The Collegium – held at Kazan Helicopters, a Russian Helicopters company – also discussed the production efficiency of Russia’s helicopter-construction sector today and its future development.

CEO Alexander Mikheev was joined at the Collegium by officials from the Russian Helicopters parent company and its production and R&D assets. A welcome was given by Ravil Zarilov, a member of the Kazan Helicopters board of directors and Deputy Prime Minister of Tatarstan who serves as the region’s Industry and Trade Minister.

“Russia’s helicopter-building industry is changing fast,” said Alexander Mikheev. “We have set ourselves ambitious targets and are building a dynamic and efficient company to achieve them. To attain 20% global market share we still have much to do – completing the restructuring and upgrades of our production capacities, continuing to expand our model range, growing our technological capabilities, increasing our intellectual and production potential, and rolling out our global after-sales care system, which will include some of the company’s maintenance facilities.”

The Collegium noted the substantial progress made on the company’s core projects in 2013. More than 800 new pieces of equipment were installed at Russian Helicopters facilities to improve production safety and reduce the company’s environmental footprint. Significant successes were achieved by the company’s investment projects, including completion of the technological development of machining, plating and composite production.

Last year the company invested RUB 8.3 billion in upgrades to production capabilities, up 8.5% year on year. Labor efficiency also increased significantly, with output per employee rising by 12.4% to RUB 3.4 million. The company boosted spending on R&D activities by 48.4% to RUB 7.9 billion. Russian Helicopters continues to pursue a strategy of growing its innovation potential.

These measures have helped the company to grow its financial and operational results in recent years. In 2013 Russian Helicopters recorded a 10% increase in revenue to RUB 138.3 billion, with deliveries reaching 275 helicopters. The firm order book at year-end stood at 808 helicopters, with a list value of RUB 401.2 billion. Deliveries for 2014 are 100% covered by firm orders.

The Collegium also discussed the company’s core priorities for 2014. Issues discussed included the streamlining of management processes and interaction among group companies to improve decision-making and reduce costs.

Among measures to optimize and upgrade production efficiency, the Collegium noted ongoing work to expand collaboration with SMEs able to produce and supply high-quality parts and components.

Another area of great potential is the creation of design bureau at helicopter construction plants to help maximize the efficiency of interaction between production facilities and the Mil and Kamov design bureau. Successful examples can be found today at Rostvertol, Ulan-Ude Aviation Plant and Progress Arsenyev Aviation Company.

Russian Helicopters continues to devote considerable resources to improving quality. Today the company’s quality management system is being improved to meet international standards for the aerospace and defense sectors. Last year the company joined the European Aerospace Quality Group (EAQG), and work in this area will continue in 2014 at the international level.

Russian Helicopters, JSC is a subsidiary of UIC Oboronprom, which in turn is a part of State Corporation Rostec. It is one of the global leaders in helicopter production and the only helicopter design and production powerhouse in Russia. Russian Helicopters is headquartered in Moscow. The company comprises five helicopter production facilities, two design bureaus, a spare parts production and repair facility, as well as an aftersale service branch responsible for maintenance and repair in Russia and all over the world. Its helicopters are popular among Russian ministries and state authorities (Ministry of Defense, Ministry of Internal Affairs, Emergency Control Ministry), operators (Gazpromavia, UTair), major Russian corporations. Over 8000 helicopters of Soviet/Russian make are operated in 110 countries worldwide. Traditionally the demand is highest in the Middle East, Africa, Asia-Pacific, Latin America, Russia, and CIS countries. Russian Helicopters was established in 2007. In 2013 its IFRS revenues increased 10% to RUB 138.3 billion. Deliveries reached 275 helicopters.

UIC Oboronprom, JSC is a multi-profile industrial and investment group established in 2002. It is a part of Russian Technologies State Corporation. Its main tasks include: helicopter engineering (Russian Helicopters, JSC) and engine-building (United Engine Industry Corporation managing company).

Rostekhnologii State Corporation (Rostec) is a Russian corporation established in 2007 in order to facilitate the development, manufacturing and export of high-technology industrial products of military and civil purposes. Today it comprises over 663 companies, which form 8 military-industrial and 5 civil industry holdings. Rostec’s subsidiaries are located in 60 regions of Russia and supply their products to over 70 countries worldwide. In 2012 revenues of the Corporation amounted to RUB 931 billion, net profits were RUB 38.5 billion and total taxation exceeded RUB 109 billion.

 

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