Kalashnikov Concern will allocate 4 billion rubles for upgrading the Izhevsk Mechanical Plant. The investments will be used to upgrade production facilities and commence the manufacture of new hunting rifles. In accordance with the development strategy up to 2025, attracting investments and increasing the share of civilian products are among the priorities of the Weapons Cluster of Rostec State Corporation.
Before the end of 2018, private shareholders of Kalashnikov Concern forming part of Rostec State Corporation will allocate 4 billion rubles for upgrading the Izhevsk Mechanical Plant. Investment projects include comprehensive modernization of woodworking facilities, foundry and weapons manufacture, as well as commencing the manufacture of hunting rifles such as Los, Izyubr, Bars and Sobol, which are to supplement the existing Kalashnikov Concern product range.
Today, the Izhevsk Mechanical Plant is one of the largest diversified enterprises in Russia. It manufactures up to 90% of Russian guns. Its products also include specialist equipment and civilian products such as pacemakers, packing machines, and geophysical and microelectronic equipment.
"Our results for 2016 are good: revenue increased by a third, and the manufacture of military products added almost 70%. As for civilian products, the increase totaled 25%. I am confident that the investment program of the Izhevsk Mechanical Plant will make it possible to put high-tech products on the market, including segments which are new to the enterprise," said Alexey Krivoruchko, CEO of Kalashnikov Concern.
Kalashnikov Concern forms part of Rostec's Weapons Cluster. In accordance with the Cluster's development strategy up to 2025, in monetary terms, by 2025 the revenue of the Cluster is to total about 700 billion rubles, and the net profit is to exceed 50 billion rubles. The development of the civilian products segment in the Cluster and the increase in the share of such products in the total revenue are among the priorities in the Cluster's strategy implementation. As part of the strategy, the implementation of an investment program amounting to about 500 billion rubles is planned.