Rotorcraft industry is one of the several sectors of Russian economy with the stable growth. Kumertau aviation production enterprise (KumAPE) enhances the considerable part of the growth by manufacturing most safe and reliable helicopters that are exported to India, China and certified in Europe and North America. Dmitri Petrov tells about the venture.
- What was KumAPE before the integration with Russian Helicopters?
- Four years ago the enterprise was on the verge of bankruptcy. In 2008 the profit was only $3 thousand, so there was fairly no income. We managed to revive the company in 4 years. The income increased in 5.5 times to almost $333 million. Commodity output grew 5 times – up to $313 million. Last year the profit was $400 thousand. Order growth led to staff increase, the venture hired 217 people. The wages doubled from $326 to $603 per month. The numbers allow us to move to the deep modernization. The rehabilitation starts in the indexation and after a while it becomes visible for everyone.
- How did you manage to achieve these results?
- The main thing is that the venture started to receive the income. Before the mediators were to obtain all the money and they only paid wages and utility charges. Now KumAPE has the funds for modernizing and production expanding. The service profit increased at more than $666 thousand. We managed to drastically improve the production processes, restored the materials and spare parts quality control, so, in other words, implemented the Russian Helicopters working standards. We centralized the supplying and concluded some long-term contracts with the providers in order to reduce the material costs and increase delivery reliability. We also managed to avoid the mediators and cooperate directly with the producers. KumAPE is centrally supplied with over 300 various component parts costing over $53 million per year.
- What are the further KumAPE development plans?
- As the enterprise is a holding constituent, it can provide other companies with key parts and units, apart from final products supplying. In order to do this, we will change the holding structure. The focused productions of key parts and units will be established as well as the production competence centres. We are considering the investment programme to establish the focused productions and competence centres, in the following 6 years we’ll need to invest $173 million. In 2013 the life tests centre is to be found. We are also considering various units and spare parts production. Now we are elaborating the opening of the PCM carrier systems and blades components for Ka-52K and Ka-62 rotorcrafts manufacturing in 2014. In 2016 we expect to start the serial production of the fabricated rubber products fuel tanks for all the helicopter models made by the holding. Besides, we hope to complete the project on modern high-efficiency PCM parts and body panels production. And finally, we are going to start the manufacturing of aircraft bearing for aircraft and rotorcraft industries by 2017.
- Who is to receive the key parts and units?
- Other holding constituents. KumAPE already has additional orders because of the in-holding cooperation. Part of the orders might also come from the market. The restructuring itself is aimed at keeping KumAPE as a strategic part of the holding. Now 90% of the enterprise products is ready helicopters. After the modernization finalizing rotorcrafts will make 48% and the other 52% will be provided by the competence centres, focused production of the units and goods for other Russian and Bashkirian ventures.
- What is the Bashkortostan authorities’ attitude toward Russian Helicopters plans on KumAPE upgrading?
- They encourage and support the implementation. We entered into the agreement on production volumes expanding in favour of the ventures of the republic. If Russian Helicopters manages to integrate KumAPE into all-Russian rotorcraft industry, than governmental support will engage the plant into regional cooperation more tightly. That means the percentage of KumAPE products made for the ventures of the republic is to increase from 1% to 10% by 2017.
- It is generally recognized, that the employees of the enterprise are concerned about the layoffs. Is it really essential?
- Layoffs are almost inevitable when trying to upgrade and restructure the production. New equipment is purchased and it requires less people to work with. Although we plan a certain reduction of the personnel in 2013-2014, dismissing won’t be massive. In 2015 after starting the general focused productions we will start to hire people again. The laid off will be employed first. And we hope to sign on approximately 700 people by 2016. The new equipment will result in working conditions and productivity upgrading which will lead to the wages increase. Low wages level is usually caused by the low performance. During the 4 years within the holding an employee performance increased from $10 thousand to $80 thousand. Russian Helicopters compete at a global level and has to live by the severe world market laws. One of the essential requirements is efficiency. Every year less people are needed to produce the same amount of goods. We need to expand the manufacturing continuously in order to keep the employment. And we are intended to confine this way.
- Where are you going to find the employees for KumAPE?
- We need talented world-level engineers, who understand the sector situation and are able to design innovative competitive goods in order to develop the enterprise. Of course, there are not an excess of these specialists, but we can offer great experience, knowledge and qualification improvements. Generally we are focused on the local professionals. We also plan to re-qualify and re-hire those, who we’ll fail to employ during the restructuring. Bashkortostan students will also be highly desired at the renovated enterprise.
— What is the life of modern rotorcraft producer? Which are the latest achievements?
- The holding enters the top-5 world helicopter manufacturers. We occupy 10% of the civil world market segment and 20% of the military. We almost don’t have the rivals in Russia, the CIS and developing countries. Last year we presented new medium multipurpose Ka-62 helicopter model. This will be a reliable, manageable and fuel-efficient rotorcraft. We employed modern composite materials. This is the future of the aviation equipment and the most innovative developments in the world.
— Does it mean that all the talks about Russian science breakdown and technological inferiority are inconsistent?
- Indeed. We integrated science and production potentials of the sector. We employ many bright engineers, constructors, scientists and managers. This makes our competitiveness on local and international markets. Today the scientific world doesn’t allow any borders. Many countries conduct international researches. For example, there is a scientific centre in Germany that does composite materials researches. It cooperates with scientists from all over the world and with Russian Helicopters as well.
- Are there any examples of successful cooperation?
- Sure. We will design the new light rotorcraft jointly with Italian Augusta Westland. We also successfully collaborate with the companies of the developing markets as China, Africa and Latin America.
- Some say, that our combat helicopters are employed even by Pentagon.
- The quality, reliability and easy maintenance of our rotorcrafts make them essential in severe climate and landscape conditions. So, it’s not a surprise they are popular.
