Feb 10, 2011

Vladimir Putin Meets Uralvagonzavod Authorities

The balance of the Uralvagonzavod work in 2010 and the results of the corporation Government support at depression were discussed. Denis Manturov, the Chairman of Board of Directors and Oleg Sienko,CEO of the Corporation reported to the RF Prime Minister on the steps taken by the Corporation management to enhance economic efficiency, to widen the range of products, e.g. by designing the fire suppression vehicles for hard-to-reach areas.

Vladimir Putin stated that recently the UVZ situation changed for the better. He asked the corporate head of the efficiency of the Government support rendered to the corporation and of the 2010 Corporation working data. Oleg Sienko informed that the enterprise general liabilities were reduced by 31 bln roubles. “We have neither tax debts, nor delays of wages and payments. By the end of December we have fully repaid the loans against government guaranties”, told the UVZ CEO.

He also reported to the Head of the Government that currently the leading enterprise of the Corporation has the round-the-clock operation. The production line of civil products is loaded fully.

“We have the current stock of orders until 2014 and work as per the schedule. We certainly develop new products as per the business plan and as approved by the Board of Directors. First of all I mean drilling vehicles for the gas-and-oil producing industry. This year we shall supply them to some of our customers. We also develop and diversify the Omsk premises to manufacture civil products, railway car products in particular”, stated Mr. Sienko.

The corporation turnover is about 95 bln roubles, and taking into account its corporates, 117 bln roubles. The corporation has about 54 ths employees.

Vladimir Putin was interested in the average wages. The corporate head reported that at the beginning of 2010 it was 13.5 ths roubles, and at the end it became 25 ths roubles. The plan for 2011 is 26–27 ths roubles.

Denis Manturov, Deputy Minister on Industry and Trade favourably viewed the results of the Government support and the management operation. He told that the management worked efficiently: in two years the production costs were reduced approximately by 50%. Otherenterprisescanhardlyboastofsuchresults.

Mr. Manturov also informed that with regard to the necessity to optimize the Government order for military vehicles in the future and to solve the comprehensive problem of capacity utilization of the Corporation enterprises as instructed by the Head of the Government, the Corporation has prepared a number of offers. One of them is for the RF Emergency Situations Ministry considering the fire hazardous situation in 2010.

We have developed special vehicles to suppress fire in hard-to-reach areas, in forests mainly. We have already refined the design of several modifications and certified the light tracked vehicle manufactured in Rubtsovsk, the UVZ corporate. We have persuaded the RF Emergency Situations Ministry in the necessity of the modification, explained Denis Manturov.

It was emphasized that to implement the plans, additional financing of the purchasing programme of the RF Emergency Situations Ministry is required. In this case the Uralvagonzavodassembly facilities will be charged with work.