Russia » Economics
Author`s name Dmitry Sudakov

Moscow defense businesses go to Siberia

The documents providing for establishing an integrated structure on the basis of the Moscow engine maker Salyut and Omsk based OMPO Baranova are being considered by the government of the Russian Federation. Correspondent of Pravda.Ru asked for details the head of the marketing and innovation dept of Salyut Alexander Druzhinin. According to him this is a very important step made in the interests of both companies. Salyut will be the head enterprise, retaining all design functions. OMPO Baranova will have the status of a branch. The main objective of the appearing structure is creating the aviation engine of the fifth generation. At VTTV-2007 held recently in Omsk the two companies were already presented under single stand.

Alexander Druzhinin says that the administration of Salyut believes that the association with the Omsk enterprise will considerably strengthen positions of Salyut. Let’s remind that earlier Salyut took over the design bureau "Horizon", design bureau "Granite", Research Institute of Engines, Voskresensk Machine-Building Plant and some smaller companies. Salyut also has a majority interest in the "Topaz" (Kishinev) and Bendery plants (both Moldova).

Noteworthy, neither Salyut nor Baranova, both federal state unitary enterprises now, hurry to become a JSC. General Director of Salyut Yuri Eliseev repeatedly demonstrates that a state run company can be at least as efficient as any other privately owned one. “We think that the state form of ownership is viable and do not see essential advantages of joint-stock companies over state unitary enterprises, - he said - Yes, we cannot earn on leasing our space, for example, but we do not strive for that. Our task is to ensure profits in the area of specialization”.

At VTTV-Omsk-2007 General Director of the Omsk enterprise Andrey Shutov officially disclosed the details of the $3 million worth equipment his company got from Salyut within the frameworks of the integration process. The payments for the deliveries will be postponed for three years. According to Druzhinin with time all manufacturing sites of the integrated structure will be based in Omsk. “Practice shows that developing serial production in big cities is unprofitable”.

Salyut also started construction of the magnesium alloys workshop at Baranova Plant and already ordered from Baranova serial units and parts of D-436 engine for amphibious Be-200, one of the most commercially perspective aircraft in Russia. After arranging serial manufacturing of Tu-334 and An-148 in Russia, to take place in Voronezh and Kazan, Baranova will make certain number of D-436 and its modifications for these planes. When the integrated structure is officially formed, Baranova will take over 100% serial manufacturing of D-436. The manufacturers evaluate the market for these engines at over 100 units a year.

According to Alexander Druzhinin today D-436 is made in the cooperation with the Ukrainian Motor Sich. In the future the integrated company Salyut-Baranova will manufacture D-436 in Omsk. Today’s technological upgrade underway in Omsk is deemed first of all for this project.

Important part of the Russian-Ukrainian or Salyut – Motor Sich relations is AI-222-25 engine for Russian Yak-130 training-combat jet, recently commissioned with the Russian Air Force. The parties also continue common work on D-27 which was used on An-70. Once even the EU deemed this plane as their military transport, however, later the Europeans preferred their “home” A-400, which is still under development. According to Yuri Eliseev this really no-match engine can be used on other perspective aircraft. He acknowledged that D-27 needs perfection, but he called it “a natural process when making a breakthrough product”. The two companies also cooperate in smaller engines with the capacity of 500-700 h.p.

According to the press release of Salyut the new holding will make all basic engines for military planes, including modernized Al-31 for Su-27, Su-30 and Su-34, as well as for Mig-29, Su-24, An-3, Il-114 and other planes. Most important project is Salyut and Baranova is the development of the 5th generation engine. Soon Russian Ministry of Defense is to announce the tender on this engine. Rybinsk based Satrun is only competitor for Salyut in this tender.

Both companies will participate in the tender with their own technical proposals. However, according to Alexander Druzhinin the best option would be to split the project into parts, dividing between the two designers and giving each those parts where they are stronger. There is every reason to say that each company has its strong points. However, Saturn is a privately owned company and this fact hampers the idea. The private owners of Saturn do not accept this offer. Of course, in the long run both will make their engine. But it will cost double price and take twice as much time. Private business in Russian defense industry repeatedly demonstrates that its daily efficiency is valued higher than the strategic interests of the nation. Should then we criticize the government which does not want to give the controlling interest of the being formed defense holdings to private business?

Yuri Seleznyov

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