Izhmash healthier and developing: the first year of the crisis management team

In early February 2012 the General Director of JSC "NPO" Izhmash "Maxim Kuzyuk held a press conference for the regional media. The main topic of the meeting with the journalists was summarizing the work of the group of companies "Izhmash" in 2011, as well as lighting plans for the further development of the most important companies in Izhevsk. At the event the attention of journalists was presented a detailed presentation of the new management team, including the results of the analysis of business at the beginning of 2011, short-term and long-term objectives, implemented activities, and development plans for the next few years. Maxim V. detail the issues of reorganization and financial recovery of the company. In early 2011, a group of companies "Izhmash" consisted of 32 legal entities with multi-level control system, redundant functions and high overhead costs (the cost of maintaining only the top management personnel reached 7%). Total liabilities of "Izhmash" at the beginning of 2011 amounted to about 19 billion rubles, the company has many months of delay in payment of wages, worn production assets and the level of loading of modern high-efficiency equipment does not exceed 20%. In 2010, the group had 1.7 billion loss and was on the verge of bankruptcy. In this difficult situation, "Rostekhnologii" demanded that the new management team swift and decisive action, and they were предприняты.Преобразования the company held on 5 key areas: simplification of the corporate structure, reorganization, financial recovery: in a short time managed to establish control over financial flows and normalize the production financing, payment of salaries to employees and service of current payments. Initiated transfer of all manufacturing businesses into one legal entity — JSC "NPO" Izhmash ", which will be completed by March 31, 2012. JSC "NPO" Izhmash "has already received a license to produce and distribute the full range of products manufactured within the group of companies. When the structure was reduced to 25% of the administrative staff, all the jobs for specialists in the production have been saved. Also managed to reduce the overhead of companies: the overall effect of interventions in this area is estimated at 27 million in 2011 savings (reducing overhead costs by 10%). Today the company is no arrears of wages, the average wage for 2011 increased from 12 to 14.5 thousand rubles. Improving the efficiency and modernization of production: in 2011, managed to increase the level of loading of high-performance multi-purpose equipment from 20 to 70% as well as a more compact place all production facilities. Until the end of 2012 we plan to release a total of 150 thousand square meters. meters of space, which has the potential to accommodate a modern industrial park. The overall effect of measures to improve the production efficiency of up to 100 million rubles. Over the past year a program of comprehensive modernization of arms production, which will cover all the basic process stages of production: blanking and stamping, barreled production, machining, casting and thermal, chemical and galvanic paint. Work is underway to create a similar plan, and high-precision machine-tool lines. Expansion of markets: the company’s management has made an emphasis on the development of exports of civilian weapons and it has paid off. In 2011, managed a 50% increase in shipments to the U.S. market, constituting 65% of the global market of sporting and hunting weapons. Proceeds only from this direction was 444.2 million rubles (14.8 million dollars.). Today the products of the factory "Izhmash" comes in 27 countries, including the U.S., Canada, Australia, Germany, the UK, Norway, Kazakhstan, Thailand and South Africa. In all, the effort to expand the markets managed to increase its sales by 40% compared to 2010 (a record for the company). The measures taken were able to increase the output per worker to 616 thousand rubles. up to 1,082 rubles. Creating new products and future developments: in 2011 only to existing products were made 340 different design changes on 70 modifications of civil and military weapons. At the initiative order now developed a prototype of a new AK-12, on a platform in the near term will be developed up to 20 models of weapons for civilian and military purposes. Work has begun on the development of advanced sniper systems — are designed and manufactured pieces for new products. The introduction of innovations launched in three main areas: surface modification, introduction of advanced procurement and use of composite materials. Especially for the direction the company opened the Center of new technologies and work is underway to create a Center for the modification of surfaces. In conjunction with the new system of quality control innovative technology will significantly improve the quality characteristics of the products and their competitiveness on the world market. Also, General Director of JSC "NPO" Izhmash "outlined plans to develop a range of products in 2012. Among the priorities — preparation for state tests of an AK-12, the creation of a prototype sniper rifle and 10 other products, including new sporting rifles "Biathlon" and "Ural" to bring them to market in 2013. The company also plans to focus its efforts on the development of high-precision production. According to preliminary estimates, if all of the planned activities for 2012 updated NGOs "Izhmash" will be able to increase its revenue by 15% compared to 2011, to raise production by 1 employee to 1,200 rubles., Which will increase in 2012 average wages up to 16 thousand rubles. month. Among the positive developments of the past year and Maxim Kuzyuk noted the growing support of the Russian government. "After the arrival DO Rogozin, we have the confidence that we can speed up the implementation of the program of modernization of production at the expense of the state program of development of the defense industry, and increased funding for R & D projects will help us in the development of the design department. " The achieved results show that the policy of the enterprise is correct. This means that the continuation of the work on all selected areas will necessarily lead "Izhmash" to a stable and secure future.

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