The story of how engineers from Chelyabinsk "METRAN" could hit American business giant Emerson and not to be his production of screwdriver
In a recent interview with Steve Sonnenberg, president of Emerson Process Management, the parent company "METRAN", said: "Corruption — this is a problem in Russia, but not a barrier for us, as we are not involved in this. I know that in this way we lose part of orders in Russia, but we do not participate in such transactions. " In the conditions of the Russian business climate killer application. In the memory is still fresh story with a Swedish IKEA, always declare full transparency: the domestic practice of bribery broke her managers about the knee.
The idea is alien to Russian model full transparency was to bring "Metranu" big problems. However, he successfully developed, leading market instrument across Russia. The Americans brought in Chelyabinsk companies another alien element of the Russian mentality — a system of long-term planning. As the general director of the industry group, Alexander Glazyrin, management now sees clearly in 2015, and roughly — and 2025-th: "We are all calculated. We are now working five days a week in one shift. Reserve capacity is. If necessary, we will work in one and a half, two, three shifts. "
"Metran" to Emerson
The history of "METRAN" began in 1992. Then a group of experts Chelyabinsk plant "Device" and the Moscow Research Institute "Teplopribor" belonging to the military-industrial complex of the country, has decided to open a research and production company. The spirit of the era: in the early 90's, many talented engineers GUPov or SRI trying to start a business in a wild market. The main product, which is planned to produce and sell "Metran" were to be pressure sensors of its own design. The name of the company amounted to two English words — measuring transmitter (transmitter).
From the very beginning, "Metranu" managed to stake out a place in the market. The company has offered the market is unique for Russia nizkopredelny pressure sensor and metrology equipment — high-pressure standards. Due to the lack of its own production facilities manufacture the first production batch of sensors offered a defense company NPO "Electromechanics" (Miass). September 17, 1992 the first was released the first production unit.
In just three months in the "Metrane" creates a new direction — development and production of equipment for heat. And then — as on the thumb: the company opened branches in other cities, in a year, "grows" to the branch in Moscow in 1994, has been cooperating with the five plants and two research institutes, and then converted to a manufacturing concern.
— The success of "METRAN" in the early 90's to provide a combination of two factors — says Alexander Glazyrin today. — The first — to the development of the equipment from the very beginning were attracted talented, highly skilled engineers. This allowed the original design and tech products. The second factor — the progressive business thinking of the founding fathers of the company. This consisted of a quick orientation to the changing environment, the ability to quickly explore new areas. The creators of "METRAN" were not rooted in the Soviet methodology of production planning, not initially tried to follow the set course. They quickly found its resources, new applications quickly and "poured" niche. In the segment of pressure transducers after the development of the metallurgical industry, the company managed to reach the oil and gas industry. There are consumers in the energy sector, including in such areas of her prim as nuclear. "Metran" due to the mobility of thinking of its leadership became rich, multi-product company. And such remains. (For Emerson, by the way, this is a unique case. Americans organize the production of product principle: each production site (in Emerson referred to as sites) produces one or at most — two specific products.
We — several times more.)
And then there was defaulted 98th, sinking a lot of companies. "Metranu" he helped to escape to a leading position in the Russian market. The ruble has become cheaper, international corporations, who sold the goods for dollars then, immediately lost any competitive edge. Chelyabinsk companies that collect their instruments at the time of exclusively domestic components, managed otest a significant chunk of their shares.
Early 2000s to "METRAN" can be called revolutionary. It drew the attention of venture fund EBRD. As a result, the fund has become one of the largest shareholders of Chelyabinsk enterprise, and it received investments for development.
At the same time, "Metran" enters the international market. Starts cooperation with the Chinese, Czech and Bulgarian companies.
The apogee of interaction with international business was the sale of American industrial giant Emerson (the first company in the world in the segment instrumentation and automation of the enterprises, the third in the world in the electronics market after General Electric and Samsung).
— Contact with Emerson began at "METRAN" long before the purchase, in 1996, — says Alexander Glazyrin. — Then the Americans were making their first steps on the Russian market (an Emerson appeared in Moscow in 1992). They were looking for additional channels to promote their products. Plus, they were interested in space, which could help in the localization and adaptation of their development under the Russian specifics. All this they saw in "Metrane." However, the path of investment in it has been a long — ten years. In 1996, "Metran" has not held those positions that would enable Emerson to be fully confident in the prospects of the company.
Purchase of a 76% stake in 2004 was preceded by entry into the Russian market pressure sensor "Metran-100." Without exaggeration, it created a sensation. Americans could not understand how small, by their standards, Chelyabinsk company was able to develop and produce high-quality device as close as possible to the western counterparts. It seems that this fact was crucial in the decision to purchase "METRAN."
The deal apparently was mutually beneficial. Before the two businesses in the mid-2000s, had the task of further development in Russia. Emerson has wanted to get a production and research platform in the best cost country to reduce costs ("Metran" still remains its sole asset in Russia), as well as a broad distribution network in Russia and the CIS. Leaders' METRAN "was aware that the consequences of the crisis of '98 were eliminated, and sooner rather than later, they will face stiff competition from the same Emerson, Siemens and Endress + Hauser.
— Management "METRAN" understood that in such conditions, with manufacturing capabilities, developments and technologies based on the Soviet legacy, we will be able to take a certain niche in the market, — says Alexander Glazyrin. — But leadership is lost. It will be taken away by those who came from the outside, because they can offer the products completely different level, are able to anticipate customer requirements and thus successfully fight for it. What to say if Emerson at the beginning of the two thousandth only on R &D spending of about $ 500 million a year. The "METRAN" the budget was smaller by orders of magnitude. Emerson — huge structure of 250 companies (140 of them — engineering and production centers) with revenues of $ 22 billion a year, employing 150 thousand people. Compete with it in the open market it would be futile.
ing "Metran" fundamentally changed. Everything has changed — from the investment policy and methodology of financial management to the equipment. Modernization has been associated with the transfer of technologies and the setting on the production of Emerson.
However, the Americans did not go to Russia on the usual way. "Metran" did not turn into an assembly production Emerson. So far, 70% of the proceeds from Chelyabinsk bring the production and sale of equipment under the brand name "Metran." Besides being the capital of the Southern Urals, based on the existing development center established the Global Engineering Center Emerson.
— This is the true meaning of localization, — Alexander Glazyrin. — Emerson did not arrive in Russia, as in Germany or China, where he built a manufacturing or rented space and began to produce the same products as worldwide. Our Global Engineering Center consists of 130 people. 70% of those with R'n'D-offices in the United States is not on the local and the global market. For example, now we have to modernize our core pressure sensor Emerson Rosemount-2051. 60% of the project work is done here, 40% — in the States, plus because of our limited capacity to test draws India. In general, in Chelyabinsk, we use a global platform to achieve, technology is only Emerson, produce equipment developed in our engineering center and is intended for the market of Russia and CIS. The most telling example — pressure "Metran-150." It is designed by our engineers, but one of the main components, the global sensor, — the achievement of American developers. In this case, many of the components we get from domestic suppliers. And this is one of the key policy of containment.
Ambition "METRAN" with the sale remained the same — leadership in serving customers in Russia and the CIS. Policy Emerson — lack of cannibalism. Internal competition between enterprises Corporation (either by product or by region) are not allowed.
In 2009, "Metran" became a 100 percent subsidiary of Emerson.
Innovative U.S. policy rests on three pillars: government support, private sector investment and University Science
The clear science
In our opinion, one of the most competitive strengths "METRAN" — frames. He draws them mostly in YUZHNOURALSKY State University. Even when the company is not owned by Americans, it has close relations with the university as a whole, and instrument-making faculty in particular. And when he came to Emerson, the possibility of university science became the subject of attention for its senior management, says Alexander Glazyrin. No wonder, when the chairman of the board of directors of the American company, David Farr first came in 2004 in Chelyabinsk, South Ural State University, he visited it. The second visit of Emerson held this year and ended with the signing of a tripartite agreement between the South Ural State University, the company and the Government of the Chelyabinsk region to support the research. Its main components — the development of the field of research, training and upgrading of facilities.
The practice of interaction and Emerson High School was built in the best American tradition. There is a program of grants (in 2011 they have about 20) for undergraduate students, graduate students and young scientists who perform their own research papers on topics close Emerson.
— But grants — it's too easy — continues Alexander Glazyrin. — The main thing is that we are working with South Ural State University in teaching students. Emerson, investing 400 million dollars, has created a lab at the University of intelligent instrumentation. In her modeling tool integrated processes across the enterprise. The laboratory we tell students about how our system as applied technology, deliver lectures on specialized departments.
"Metran" every year takes 60 — 100 students at practice. Best get the job done. Other "give" domestic instrument. For next year has already been approved internship program: Students will gain a temporary job. This is a unique experience for the Urals.
Furthermore, "Metran" moved to SUSU part of research (and pays for their conduct). This opportunity arose after buying university supercomputer today, for example, simulates the movement of flows of liquids and gases for the development of vortex flowmeters.
"Metran" eating a university conducting research. So, now in the South Ural State University are studying the possibility of non-contact measurements.
— All U.S. innovation policy is based on three pillars: government support, private sector investment and university science — said Alexander Glazyrin. — Emerson same model tries to lay here. As a result, we get rid of the main diseases of the Russian innovation system — the lack of demand for scientific research. We get an effective tool for the commercialization of research and development. Because here it is — business, ready to use their results. On the world market wins is not the one who has autonomously existing basic science, and not the one who makes the opening, and the one who develop most rapidly transformed into a commodity. Now in Russia fatal lack the tools commercialization of research and development. To do this, there is no infrastructure.
Another component of innovation "METRAN" — support for small manufacturing businesses, their suppliers. This is also the localization of the American model to support innovative small companies. In the U.S., they are considered the most efficient and competitive generators of high-tech products. Calculated that the cost effectiveness of R &D in small companies is 24 times higher than in a large, patents and one specialist — 16 times more.
In Russia, the sad state of most small businesses and innovative companies due to the lack of legal and economic infrastructure to support them effectively dead. Alexander Glazyrin:
— Most of our Russian suppliers — small companies. It is useless to attempt to terms acceptable to us to place orders for large enterprises, for which our contract will be a drop in the ocean. A small company to quickly adapt to our needs, are flexible pricing. We have identified several local suppliers that are interested in growth, the introduction of innovation, willing to invest in research and development and to adapt to our harsh demands. For them, we provide training, help with the improvement of technological processes, organize a series of courses on lean manufacturing. The result is a quality supplier, and small businesses — the opportunity to grow and develop.