Rostec

Rostec (Russian: Ростех, tr. Rostekh), officially the State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product Rostec (Russian: Государственная корпорация по содействию разработке, производству и экспорту высокотехнологичной промышленной продукции «Ростех») and formerly Rostekhnologii (Russian: Ростехнологии, literally "Russian Technologies"), is a Russian state-owned holding conglomerate headquartered in Moscow that specializes in consolidating in strategically important companies, mainly in the defense and high-tech industries, by assisting in the development, production and export with the ultimate goal of capitalizing them and bringing them to an initial public offering (IPO).[5]

State Corporation Rostec
Native name
Государственная корпорация «Ростех»
Gosudarstvennaya Korporatsiya "Rostekh"
Formerly
Rostekhnologii
State corporation
IndustryConglomerate (ISIC: 6420)
Founded23 November 2007 (2007-11-23)
FounderVladimir Putin by signed law[1]
Headquarters
Moscow
,
Russia
Area served
Worldwide
Key people
Denis Manturov (Chairman)
Sergey Chemezov (CEO)
Revenue$27.2 billion[2] (2017)
$4 billion[3] (2016)
$1.31 billion[3] (2016)
OwnerRosimushchestvo
Number of employees
453,000[4] (2016)
DivisionsAircraft, Electronics, Armament
Subsidiariessee below
Websitewww.rostec.ru

Established in 2007, the organization comprises about 700 enterprises, which together form 14 holding companies: eleven in the defense-industry complex and three in civil sectors. Rostec's organizations are located in 60 constituents of the Russian Federation and supply goods to over 70 countries worldwide.[6][7] The organization is headed by Sergey Chemezov.[8]

History
Logo of Rostekhnologii

On 23 November 2007, Russian President Vladimir Putin signed federal law No. 270 to establish a state corporation named Rostekhnologii, which was previously passed by the State Duma on 9 November and passed by the Federation Council on 16 November.[9][10][11][12][13]

Later in 10 July 2008, newly-elected Russian President Dmitry Medvedev signed a decree that transfers 443 struggling enterprises to the ownership under Rostekhnologii. Out of these acquired assets, 30% of such enterprises were in pre-crisis and crisis condition, 28 entities in bankruptcy proceedings, 17 had no business operations, and 27 had lost part of their assets or faced a material risk of such loss, with all facing a total debt of RUB630 billion. In addition, these enterprises had worn out fixed assets, dilapidated production chains, and poor management.[11][14][15]

After the acquisition, structural reforms were made, helping the enterprises emerge from their financial struggles with a 20%–30% increase in production growth, five times the national average. Most of the profits were acquired by Rostekhnologii, which 80% of it was from 20% of Rostekhnologii's assets. The 20% included the titanium monopoly VSMPO-AVISMA, helicopter manufacturers Mil and Kamov, AvtoVAZ, and KamAZ. This in turn brought executives of some companies in conflict with each other, such as the case with Mil and Kamov in which they refuse to communicate with each other. As a result, Rostekhnologii had to work with the two companies so they can cooperate with each other.[15]

On 21 December 2012, Rostekhnologii rebranded itself as Rostec to make the corporation more open to the world. Rostec also featured a new logo, an open square symbolizing a window to the world and a focus frame, as well a new slogan "Partner in development" and implemented changes in its corporate governance structure.[11][16][17][18] The corporation spent $1.5 million for rebranding.[17] The corporate brand, which was launched in late 2012, is currently one of Russia's 15 most valuable brands and has a value similar to that of major companies such as Rosneft and Rostelecom.[19]

On 16 July 2014, as a result of Russian intervention in Ukraine and Russian annexation of Crimea, Rostec was one of the companies that was sanctioned by the Obama administration. Sergey Chemezov, current CEO of Rostec, was one of the individuals targeted by the United States (U.S.) and the European Union (E.U.), whose visa was banned and assets froze by the E.U.. Rostec's access to U.S. debt markets was also limited. Rostec was forced to rethink its strategy for its holding companies.[20][21][22][23]

In December 2015, Rostec's supervisory board approved its development strategy through 2025. According to the strategy, Rostec intends to change the Russian economic model by putting less emphasis on weaponry, aviation components, and software and more emphasis on electronics, telecommunications, robotics, and other high-tech industries. This in turn would diversify the Russian economy, increasing the share of high-tech civilian products and non-primary exports.[11][24][25]

Corporate governance
Sergey Chemezov, current General Director/CEO of Rostec since its founding

The Supervisory Board, the Management Board, and the General Director are all appointed by the President of Russia.[26]

Supervisory board

Management board
  • Sergey Chemezov – General Director (CEO)
  • Vladimir Artyakov – First Deputy General Director
  • Nikolay Volobuev – Deputy CEO
  • Igor Zavyalov – Deputy CEO of Finance
  • Aleksandr Nazarov – Deputy General Director
  • Dmitry Lelikov – Deputy General Director for Investment Activity
  • Oleg Yevtushenko – Executive Director
  • Sergey Kulikov – Industrial Director of Electronics
  • Anatoly Serdyukov – Industrial Director of Aviation
  • Sergey Abramov – Industrial Director of Conventional Armament, Ammunition and Special Chemistry
  • Viktor Kiryanov – Managing Director of Infrastructure Projects
  • Vladimir Litvin – Managing Director of Direct Administration
  • Maksim Vybornykh – State Secretary
  • Alla Laletina – Head of Legal Department
  • Yury Koptev – Chairman of the Scientific and Technical Council
  • Natalya Borisova – Head of Bookkeeping and Fiscal Accounting

Scientific and Technical Council
  • Yury Koptev – Chairman of the Science and Engineering Board, Doctor of Technical Sciences
  • Vladimir Verba – General Director, General Director of JSC Concern Vega, Doctor of Technical Sciences
  • Valery Gheykin – Deputy General Director, General Director of JSC ODK, Doctor of Technical Sciences
  • Vladimir Gutenev – First Deputy Chairman of the Industry Committee of the State Duma, First Vice-President of the Union of Machine Builders of Russia. Doctor of Technical Sciences
  • Yury Demchenko – Chairman of the Science and Engineering Board, Chief Adviser of the General Director, Head of the Group of Advisers of Rosoboronexport
  • Ghivi Janjgava – Deputy General Director of JSC KRET for on-board equipment R&D, General Designer, Doctor of Technical Sciences
  • Nikolay Ivenev – Advisor to the General Director of JSC High-Precision Complexes on scientific and technical policy, Candidate of Technical Sciences
  • Valery Kashin – Deputy General Director of JSC High-Precision Complexes – General Designer of JSC NPK KBM, Doctor of Technical Sciences
  • Alexandr Komarov – Head of the Department of Coordination and R&D of JSC Russian Electronics, Candidate of Technical Sciences
  • Aleksandr Kuznetsov – Director of the direction of science, engineering and innovative development of JSC Stankoprom, Doctor of Technical Sciences
  • Alexandr Kulikov – Deputy General Director for Research of the Interdepartmental Center for Analytical Research in Chemistry, Physics and Biology under the Presidium RAS, Candidate of Technical Sciences
  • Valery Litvinov – Chairman of Science and Engineering Board, Adviser to the General Director of JSC RT-Khimkompozit, Doctor of Technical Sciences
  • Yury Maevsky – Deputy General Director of JSC KRET for radioelectronic combat equipment R&D, general designer of the radioelectronic combat system, Doctor of Technical Sciences
  • Vladimir Tikhonov – First Deputy General Director of Techmash, Candidate of Technical Sciences
  • Nikolay Turko – Senior Consultant of the General Director of Rostec, Doctor of Military Sciences
  • Andrey Shibitov – Deputy General Director for Production of Russian Helicopters
  • Anatoly Filachev – General Director of JSC Orion, Corresponding Member of RAS
  • Viktor Shchitov – First Deputy General Director – Chief Engineer of TsNIITochMash, Doctor of Technical Sciences
  • Grigory Elkin – First Deputy General Director of JSC OPK, General Designer of Automated Control and Communication Systems, Doctor of Economic Sciences

Social policy

Labor

The companies controlled by Rostec employ about 450,000 people.[27] A special focus of the corporation's responsibility on labor involves 21 dominant employers that are part of Rostec.[28] As an example of corporate activity aimed at stabilization of social environment in one-company towns, mass media covered Rostec's labor policy in relation to AvtoVAZ, a dominant employer it Togliatti during the 2008-2009 economic crisis. Despite large-scale layoffs, public unrest was prevented by a special employment program for dismissed workers.[29] The unemployment rate in the company town of Verkhnyaya Salda, Sverdlovsk Oblast, which is owned by VSMPO-AVISMA, is less than 1%.[30]

Health

In order to implement its Health National Program, the corporation has set up nine centers for high medical technologies.[31] Five centers for cardiovascular surgery (Khabarovsk, Krasnoyarsk, Chelyabinsk, Perm and Kaliningrad), two centers for neurosurgery (Tyumen and Novosibirsk) and to centers for traumatic surgery, orthopedics and endoprosthesis replacement (Smolensk and Barnaul).[32]

Rostec is a participant in the Perinatal center development program along with Russia's Ministry of Health, the Federal Compulsory Medical Insurance Fund and federal member state authorities.[33][34]

As of March 2017, Rostec had built and equipped perinatal centers in 15 federal subjects of Russia:

Education

Rostec cooperates with 312 leading higher educational institutions, including, among others, Bauman Moscow State Technical University, and the Plekhanov Russian University of Economics, through targeted training of specialists, development of cooperation in the framework of scientific and technological areas, joint research, design and technological work. There are 294 departments belonging to holding companies and enterprises under Rostec in these institutions.[36][37]

In 2015, Rostec started 165 projects in collaboration with these institutions at a cost amounted to 2.8 billion rubles.[38]

Sponsorship

On November 27, 2007, Rostec became general sponsor of FC Krylia Sovetov Samara; however, in 2011 the corporation decided to suspend its support of the team.[39]

In 2010 and 2011, Rostec sponsored Vitaly Petrov, Formula One racing driver. In 2012, Russian Helicopters partnered with Caterham F1Team for which Petrov drives.[40]

Improving professional training of the employees, Rostec cooperates with the WorldSkills movement.[41] In 2015 the Corporation and WorldSkills Russia concluded a cooperation agreement which is aimed mainly at the joint work on training specialists for high-tech industries. State Corporation Rostec is a general partner of WorldSkills Russia in accordance with a three-year agreement.[42]

Organization
The construction of the new corporate headquarters complex of Rostec in Moscow.

As of late 2016, going by its development strategy, Rostec organizes its 700 enterprises into either directly controlled companies or clusters composed of holding companies.[43][44][45]

Clusters

Aviation

Radioelectronics
  • Concern Avtomatika: the largest enterprise of the Russian Federation concerned with problems of information security, with development and production of secrecy communication equipment and systems, protected information and tele-communication systems and also special automated control systems.
  • RosEl
  • Shvabe Holding: optical-electronic systems both for military and civil purposes;

Armaments
  • High Precision Systems (Vysokotochnye Kompleksy): weapons for the combat tactical zone;
  • Kalashnikov Concern: Russia's largest manufacturer of combat weapons.
  • Nacimbio: pharmaceutical holding for research and development of immune biological remedies.
  • RT-Auto: owns stakes in AvtoVAZ and Kamaz.
  • RT-Chemcomposite: specializes in innovative research and development in the field of polymer composite materials and integrated products for space exploration, aviation, arms and military equipment, ground and water transport, power utilities and other industries.
  • RT-Stankoprom: machine tool industry.
  • Security Technologies
  • Techmash: ammunition supplies for the Armed Forces.

Directly controlled companies
  • Rosoboronexport (arms export)
  • VSMPO-AVISMA: produces 30% of the world's titanium.
  • AvtoVAZ (car manufacturer, minority stake)
  • Kamaz: leading Russian manufacturer of trucks.
  • Uralvagonzavod: Russian manufacturer of armored fighting vehicle.
  • RT-Invest (diversified, minority stake)
  • RT-Business Development: charged with implementing the Rostec strategy aiming to increase capitalization of projects in the sectors of commercial advanced technologies, raw materials and associated infrastructure.
  • Russia TEC (exhibition complex)
  • National Ecological Operator (waste management)

Financial performance

The preliminary financial performance for 2012 show that the overall revenue of Rostec exceeded RUR960 billion compared with RUR817 billion a year earlier.[46] Revenues from export to 70 countries globally exceeded RUR240 billion.[47] Rostec's net profit in 2012 was almost RUR40 billion. Corporation's companies paid over RUR120 billion in 2012 tax. Investments in modernization and production growth exceeded RUR112 billion. The average monthly payroll went up to RUR26,200 from RUR23,700 a year earlier.

Main financial indicators,[48] 2015 ($1 = 60,96 RUB):

  • Consolidated revenue, $18.7 bln
  • Consolidated net income, $1.62 bln
  • Export revenues, $5.0 bln
  • Total investments, $2.1 bln
  • Exports of innovative products, $1.81 bln
gollark: Undelete my messages so I can remove them without retyping them.
gollark: Cease.
gollark: Hmm, opinionion: unified global governance actually bad?
gollark: <@319753218592866315> no.
gollark: The economy is an abstraction over production and consumption of whatever.

See also

References
  1. http://www.utu.fi/fi/yksikot/tse/yksikot/PEI/raportit-ja-tietopaketit/Documents/Vahtra_netti_final.pdf
  2. "Рейтинг крупнейших компаний России по объему реализации продукции". Expert RA. Archived from the original on 28 October 2018. Retrieved 28 October 2018.
  3. http://rostec.ru/content/files/documents/GODOVOY_OTCHET_2016.pdf.
  4. http://www.rbc.ru/companies/id/399.
  5. Belton, Catherine (21 November 2012). "Russian industrial group prepares for IPOs". Financial Times. Archived from the original on 18 August 2017. Retrieved 18 August 2017.
  6. 4-traders. "Kazanskiy vertoletnyi zavod OAO : Russian Helicopters names Rostec Deputy CEO Vladimir Artyakov as Chairman of the Board of Directors | 4-Traders". Archived from the original on 2016-11-23. Retrieved 2017-03-14.
  7. Уральский оптико-механический завод оснастит медучреждения Еревана неонатальным оборудованием. Регионы России (in Russian). Retrieved 2018-07-02.
  8. By Wendell Minnick – Defense News. "Jewish Voice". jewishvoiceny.com. Archived from the original on 2017-03-14. Retrieved 2017-03-14.
  9. "Archived copy" (PDF). Archived (PDF) from the original on 2013-09-28. Retrieved 2013-08-07.CS1 maint: archived copy as title (link)
  10. Sputnik (2008-06-24). "Russian Technologies on the way to becoming super-corporation". En.ria.ru. Archived from the original on 2016-08-22. Retrieved 2017-08-18.
  11. "Rostec :: About :: History". rostec.ru. Retrieved 2018-07-13.
  12. "Federal Law of the Russian Federation "About the State corporation on assistance to development, production and export of high-technology..."". Cis-legislation.com. Archived from the original on 2017-08-19. Retrieved 2017-08-18.
  13. "Rostec Corporation: Private Company Information". Investing.businessweek.com. Archived from the original on 2013-09-28. Retrieved 2017-08-18.
  14. "Prime Minister of the Russian Federation". Archive.premier.gov.ru. 2009-12-04. Archived from the original on 2017-08-19. Retrieved 2017-08-18.
  15. "Нанпнмйю Он Онякедмеи Лнде √ Демэцх √ Йнллепяюмрз". Kommersant.ru. 2012-12-24. Archived from the original on 2017-08-19. Retrieved 2017-08-18.
  16. "Госкорпорация "Ростехнологии" представила новый бренд". www.rostec.ru. Archived from the original on 2016-08-11.
  17. Alpert, Lukas I. (21 December 2012). "A Defensive Rebranding Exercise". Archived from the original on 25 December 2015.
  18. "Оборонка по последней моде". www.rostec.ru. Archived from the original on 2017-04-03.
  19. "How Branding Works — BRICS Business Magazine". bricsmagazine.com. Archived from the original on 2017-03-15. Retrieved 2017-03-15.
  20. "Ukraine-related Sanctions; Publication of Executive Order 13662 Sectoral Sanctions Identifications List". treasury.gov. 16 July 2014.
  21. "Announcement of Treasury Sanctions on Entities Within the Financial Services and Energy Sectors of Russia, Against Arms or Related Materiel Entities, and those Undermining Ukraine's Sovereignty". treasury.gov. 16 July 2014.
  22. Mohammed, Arshad. "U.S. intensifies sanctions on Russia over Ukraine". U.S. Retrieved 2018-07-13.
  23. Editorial, Reuters. "Russian state arms maker to sell plant to bypass Western sanctions". U.S. Retrieved 2018-07-13.
  24. "Rostec :: About :: Rostec strategy". rostec.ru. Archived from the original on 2017-03-12. Retrieved 2017-03-15.
  25. "Rostec :: News :: Rostec's supervisory board has approved the corporation's development strategy through 2025". rostec.ru. Archived from the original on 2017-03-15. Retrieved 2017-03-15.
  26. "Rostec :: About :: Controls". rostec.ru. Retrieved 2018-07-14.
  27. "A Defensive Rebranding Exercise". WSJ.com. Archived from the original on 2016-10-24.
  28. "ДВАДЦАТКА "РОСТЕХНОЛОГИЙ"". Archived from the original on 2013-09-27.
  29. "Содействие трудоустройству работников дочерних обществ ОАО "АВТОВАЗ"". www.trud.samregion.ru. Archived from the original on 2013-09-27.
  30. "Уровень безработицы в Верхней Салде составил менее 1%". Archived from the original on 2013-09-27.
  31. "ANNUAL REPORT The Russian Technologies State Corporationfor 2011" (PDF). Archived (PDF) from the original on 2013-08-06.
  32. Надеемся, что очередей в высокотехнологичные медцентры не будет – зам. гендиректора «Ростехнологий» Николай ВОЛОБУЕВ
  33. "Rostec :: csr :: Rostec to build perinatal centers". rostec.ru. Archived from the original on 2017-02-20. Retrieved 2017-03-15.
  34. "Meeting with CEO of Rostec State Corporation Sergei Chemezov". President of Russia. Archived from the original on 2017-03-16. Retrieved 2017-03-15.
  35. "Rostec and Penza region to join efforts for finishing perinatal center in 2016". penzanews.ru. Archived from the original on 2017-03-16. Retrieved 2017-03-15.
  36. "Университеты - партнеры". www.rostec.ru. Archived from the original on 2017-03-19.
  37. Ростех потратил более миллиарда рублей на жилищную программу в 2015 году. Самые актуальные новости, последние новости России, мира и Украины на Profi-news.ru (in Russian). Retrieved 2018-07-24.
  38. http://rostec.ru/content/files/documents/GODOVOY_OTCHET_2015.pdf
  39. "- "Крылья" без "Ростехнологий" (свободный доступ)". www.63media.ru.
  40. "Болельщики попросили Путина найти спонсоров для Петрова". vstractor.ru. Archived from the original on 2013-10-19.
  41. "Rostec, WorldSkills Russia enter into agreement". www.akm.ru. Archived from the original on 2017-03-16. Retrieved 2017-03-15.
  42. "Rostec :: News :: Rostec and WorldSkills Russia to create a talent pool for the industry". rostec.ru. Archived from the original on 2017-03-17. Retrieved 2017-03-15.
  43. "The Federal Law of the Russian Federation "About the State corporation on assistance to development, production and export in". cis-legislation.com. Archived from the original on 2017-03-16. Retrieved 2017-03-14.
  44. "Holding companies". Rostec. Archived from the original on 29 April 2017. Retrieved 28 April 2017.
  45. "Directly controlled companies". Rostec. Archived from the original on 17 March 2017. Retrieved 28 April 2017.
  46. Дранкина, Екатерина (24 December 2012). "Оборонка по последней моде". p. 35. Archived from the original on 27 September 2013 – via Kommersant.
  47. ""Ростехнологии" сменят образ за $1,5 млн". Vedomosti. 21 December 2012. Archived from the original on 15 August 2014.
  48. "Rostec 2015 annual report" (PDF). Archived (PDF) from the original on 2017-04-19.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.