Apr 13, 2014

The Board of Directors summing up 5-year performance of UVZ

April 10, a meeting of the Board of Directors of OJSC “RESEARCH AND PRODUCTION CORPORATION "URALVAGONZAVOD" on the performance of the Corporation for the period from 2010 to 2013, was held in Moscow. Oleg Sienko, who five years ago on April 10, 2009 was appointed to the position of CEO of OJSC “RPC “URALVAGONZAVOD” gave a report on the performance of the Corporation for the period under review.

According to the head of the Corporation, one of the most important achievements is the creation of a powerful and efficient structure, which in the last five years has shown outstanding results. Most facilities that are now part of the UVZ Corporation, in 2009 were in a grip of crisis together with social tensions. The facilities have had multibillion debts, they operated at a loss. Top priority was repaying losses of previous years in the amount of more than 13 billion rubles in shortest time, becoming profitable, providing new jobs, and more importantly saving tank-building as an industry. In the three-year period from 2010 to 2012 UVZ doubled the key figures - revenue, EBITDA, net profit. Total revenue for the five years has exceeded 414 billion rubles, while total net income was more than 28 billion. Internal cooperation has increased by 900% in 2013 and exceeded 21 billion rubles.

When speaking about the division of special equipment, Oleg Sienko said that in the five years corporation has become a world leader in the production of tanks and other armament. During this time, UVZ has tooled up and mastered the production of more than twenty models of weapons and military equipment, about 1800 of final samples which were supplied to the domestic and foreign markets, has rolled off the production line. State Defense Order has increased 2.5 times and amounted to 56.7 billion rubles.

UVZ has shown impressive performance in the production of railway rolling stock. The Corporation ranks first in the world market of freight railway car building. In the period from 2009 to 2013 UVZ produced and sold 103 336 railway cars worth 189.7 billion rubles, which is an absolute production record. In 2010 the Corporation equaled USSR record for production of railway cars by releasing 20 000 units. In 2011 was set a world record - 25 000 cars and tanks, in 2012 - a new world record – 28 000 units, and in 2013, despite the downturn in market demand, production figures remain at the level of 20,500 railway cars and tank cars.

For the first time in Russia was created a hopper railway car fully made of composition materials for mineral fertilizers. In total in 2013, the company introduced seven new models of railway cars of a new generation of composition materials. This was made possible due to increased funding of R&D. Oleg Sienko highlighted in his report, that the corporation actively promotes light rail transport. It is planned to produce 100 tram cars in 2014, compared to 38 that were built in 2009. A contract with city of Moscow for the supply of 120 modern trams in 2014-2015 was implemented. Until the end of the year Moscow will receive 70 trams. The Corporation will present a prototype of a new generation modular low-floor tram car model R1 of its own design at the leading Russian industrial exhibition "Innoprom 2014".

The report said that UVZ managed to keep the number of employees and raise wages from 13 102 rubles in 2009 to 30 254 rubles in 2013. The Corporation fulfills its social obligations, maintains a number of social facilities: sports venues, cultural and educational establishments. Construction of social housing for employees has started. A 63-apartment building and hospitals with the most modern equipment are under construction in Nizhny Tagil. In the same year UVZ plans to lay the foundation stone for another house for 400 apartments and a year-round children's camp. In conclusion, CEO stressed that the Russian Federation Presidential Decree form Vladimir Putin concerning OJSC “RPC “URALVAGONZAVOD” has been fully implemented.

Today the Corporation is quoted in the international rankings of the armaments and military equipment manufacturers, as it showed the fastest growth among the Russian defense enterprises. Oleg Sienko thanked the staff of industrial enterprises for their dedicated work and professionalism. The Board of directors of the Corporation highly appreciated the five-year work, defining it as success. The Chairman Evgeniy Shkolov suggested to take into account the report and the decision was taken unanimously.