the Russian metallurgical industrial complexes annually spend for purchase of the equipment and spare parts to it about $1,5 billion However money pass by pockets of the Russian machine engineers: to 85 % of sales metoborudovanija in Russia it is necessary on the western companies, and there is no time grandiose metmash the countries as a matter of fact has died. About 40 % of the enterprises of the Russian metallurgical mechanical engineering are now unprofitable, and, apparently, this figure will grow only. giants of different destiny
the History of the Russian metallurgical mechanical engineering is sad, as well as history of all heavy mechanical engineering in Russia as a whole. The branch and could not recover after crisis 1990 - h years which she worried after disintegration of the USSR. In the Union there were some tens the enterprises which were letting out the equipment for metallurgists, but many of them have gone bankrupt and have disappeared so quickly that any of today`s participants of the market and could not answer, how many factories were primary.
two factories - " were unconditional leaders of branch; an Uralmash (now enters into Open Society Incorporated machine-building factories OMZ) and New Kramatorsky machine-building factory (NKMZ) in Ukraine. They let out the fullest ruler of technics: rolling mills, domain, forge - pressovoe the equipment, aglomeratsionnoe, cars of continuous moulding of preparations (MNLZ), furnaces - ladles and many other things. In branch rather large enterprises with narrow specialisation worked also. In particular, Izhora factory (also enters in OMZ, lets out the equipment for blast furnaces), JUzhuralmash (Nowadays ORMETO - JUUMZ, MNLZ, aglomeratsionnoe and the warehouse equipment), Electrostalsky factory of heavy mechanical engineering (EZTM, the equipment for the trumpet industry), Ufalejsky factory of heavy mechanical engineering (UZTM, the equipment for repair metzavodov) and a number of others.
in 1990 - h years all these factories remained without orders as metkombinaty did not care of updating of capacities and were not spent for equipment updating. Metmash, appeared on the verge of bankruptcy, survived basically at the expense of deliveries of spare parts to already working equipment, and also sales of the so-called replaceable equipment which wears out faster the core (for example, valkov for rolling mills). But it has not rescued branch. According to Minpromenergo, today in it about 40 % of the enterprises (the others, according to participants of the market, are on the verge of profitability) are unprofitable. Middle age of the equipment in metmashe makes 20 years. It is updated in four - five times more slowly, than leaves (for 2005 of the enterprise metmasha have enclosed in updating of capacities of $25 million that, according to representatives of Minpromenergo, it is obviously not enough). Russian metmash lags behind in development of technologies and engineering.
on - the present capable in branch on space of the CIS still had only one factory - NKMZ, and, according to in the market, thanks to lobbist efforts of the permanent head of the deputy of the Supreme Rada George Skudarja. In 1994 the Supreme Rada has entered prohibitive duties (80-100 %) for import to Ukraine metoborudovanija, having given NKMZ hothouse working conditions. Then the factory has accepted the ten years` investment program in which frameworks has enclosed in the development about $300 million, and as speak in the market, the considerable part of these means has had on the grant of the Ukrainian budget (on NKMZ it deny). As a result gain NKMZ in 2005 has made about $300 million, and for 2006 is planned in $400 million
Destiny of other leader - an Uralmash - has developed exactly the opposite. Having endured re-structuring, in 2003 it has definitively turned to the outsider metmasha, having sold the companies Severstalmash (SSM, entered in Severstal - groups ) The division which was engaged in base engineering metoborudovanija, OMZ - the Metallurgical equipment . The main competitor NKMZ the ordinary industrial platform taking orders for manufacturing of the equipment for metallurgy under another`s drawings From this point on became no time. By informal estimations, a gain an Uralmash from this activity does not exceed $40-50 million
It is no wonder that when in the beginning 2000 - h years on Russian metkombinatah scale modernisation of capacities started, the Russian manufacturers metoborudovanija have appeared to it are not ready. Magnitogorsk metkombinat since 2001 has enclosed in modernisation more than $1 mlrd, New Lipetsk metkombinat (since 2000) - $1,4 mlrd, and as the director on scientifically - to technical development OMZ Yury Utochkin marks, on level of investments Russian metkombinaty have come nearer to foreign competitors. In world steel branch the norm of investments into reequipment considers where - that $30 on ton of a melted steel. In Russia at large metkombinatov this indicator makes $20-25 - mister Utochkin speaks. Now, by its estimations, metkombinaty spend for technical reequipment of an order $1,3-1,5 mlrd in a year (interview to Yury Utochkinym see).
However the Russian factories receive no more than 10-15 % of this sum, and the remained share of the market is supervised by the western suppliers of the equipment. By estimations of branch experts, the share Austrian Voest - Alpine in the Russian market makes 30 %, SMS Demag - 12 %, Danieli - 7 %, NKMZ - 12 %. For comparison: share ORMETO - JUUMZ does not exceed 4 %, an Uralmash - 2,5 %, OMZ - the Metallurgical equipment - 2,5 %.
According to one of participants of the market, hardly probable not the main problem of the Russian machine engineers is the superfluous quantity of the personnel at the enterprises. For example, on ORMETO - JUUMZ works more than 5 thousand persons, - interlocutor BG marks. - Taking into account scanty volumes of output and sales labour productivity on the average on branch does not exceed $20 thousand on the person in a year. At the western manufacturers the similar indicator reaches $250 thousand .
branch experts, the Russian manufacturers metoborudovanija Besides, mark are absolutely not capable to finance the sales. For SMS Demag or Voest - Alpine not a problem to sell metkombinatu the equipment with instalments till ten years, say, under 4 % of the annual. Domestic factories cannot allow themselves of it. To involve the Russian leasing companies for financing of sales senselessly: their rates average 15 %.
the Situation for large manufacturers becomes complicated also that on their market the small manufacturers who earlier were not concerning to metmashu began to leave. According to general director ORMETO - JUUMZ Nikolay Mirsky, a price hike on a steel in 2004 and, as consequence, increase in orders from outside metkombinatov have led to that a number of the small enterprises which earlier have been not connected with metmashem was reorientated to deliveries metoborudovanija. Sale of separate kinds of the equipment metkombinatam was engaged in Open Society Bumprom specialising on the equipment for tselljulozno - the paper industry, - the mister Wordly marks. - There were two small manufactures in Volgodonsk - factory metallurgical and the power equipment and Marketing, technologies, management .
Thus as one of participants of the market confirms, the small companies - manufacturers are more profitable the large. at them small staff and narrow specialisation, - explains interlocutor BG. - Here in Ekaterinburg there is a firm Date - the Center with number of the personnel of 300 persons. It became in time independent, having allocated from structure Uralmash, and now sells various systems of automation metproizvodstva which quite correspond to world level. A similar example - the Cherepovets Nordinkraft which are letting out the equipment for diagnostics of metal products. But all of them cannot compete seriously with Voest - Alpine and SMS Demag. The turn of such firms is measured tens millions dollars .
Dark corners of industrial parks
According to Yury Utochkina, the push to development Russian metmasha can give partnership with foreign competitors. In particular, an Uralmash could make the equipment for metkombinatov on the western engineering. Already it is a lot of examples of such cooperation. As Nikolay Mirsky when SMS Demag has concluded the contract with " tells; the Ural steel On delivery MNLZ, in manufacture of all metal-consuming component of these cars was engaged ORMETO - JUUMZ, and from Europe were imported only nou - hau and separate accessories. According to the mister Wordly, on such contracts in 2006 ORMETO - JUUMZ will earn approximately 15 % of a gain which is planned at $114 million level (we will notice that more than 50 % of a gain of concern on - former sale of the replaceable equipment provides).
cooperation with foreigners - a question disputable is how much defensible. According to one of the former employees of company SSM, the economic aspect of manufacturing of the equipment on the western engineering is doubtful: SSM has refused such contracts. Taking into account expenses for the salary, the electric power, and also social deductions and a miscellaneous cost the company worked to itself at a loss. Small firms to Estonia which has been not burdened unlike us with the big shops and huge staff, carried out orders for manufacturing kranovogo the equipment in one and a half time more cheaply - taking into account its delivery to Russia . According to interlocutor BG, Russian metmash will rescue only direct investments of foreigners in branch, but it is not clear, what for it is necessary for western concerns.
joint venture creation could be other variant of cooperation with foreigners. Successful examples of such cooperation were. In 2002 SSM has founded the joint venture Fuksmetmash with German company Fuchs (it is under control Voest - Alpine) which was engaged in manufacture of furnaces - ladles and electric furnaces. According to participants of the project, productivity of the joint venture made $150 thousand on the person in a year (at the enterprise 50 persons worked nearby). But also this project has failed. Fuksmetmash began to turn off gradually the activity since 2004, that is after Severstal - groups has abolished company SSM. Concern ORMETO - JUUMZ also had an idea of creation of the joint venture (with SMS Demag) but while the parties were limited only to the agreement on strategic partnership. In its frameworks at the Russian enterprise expert SMS Demag who is engaged in development of recommendations about reduction of costs and manufacture optimisation works.
it is indicative that the most viable example of cooperation with foreign manufacturers of the equipment was shown not by the Russian machine engineers, and metallurgists. In 2004 of Open Society Russian aluminium (Rusal) has created on the empty areas of Krasnoyarsk aluminium factory (enters in Rusal) prompark and has invited the suppliers of the equipment to localise there manufacture. The offer was accepted by five companies - Dutch Hencon (the processing technics for the aluminium industry), English Mechatherm International Ltd. (The foundry equipment), American Pyrotek (fire-resistant materials for elektrolizerov and foundry cars), French NKM Noell (the manufacturer of cranes) and Canadian Lefebvre Freres Ltd. (The manufacturer of separate parts elektrolizera). Manufacture localisation has lowered cost of the equipment for Rusala. Besides, suppliers began to communicate with engineers of factories of the company that has allowed to adapt faster the equipment under technologies of the Russian manufacture directly.
however, and at promparka there are reefs. To begin that at its creation of Rusal has incurred all formalities (legal registration, accounting, personnel employment): foreigners did not want to bear these risks. Under the informal data, the company even tried to achieve tax privileges for promparka, but unsuccessfully. But the main thing, prompark the risk of monopolisation of relations of Rusala with suppliers has created. We should change much at factories under the equipment of the several concrete manufacturers working for us in promparke, - speak in the company. - there is a risk to appear in excessive dependence on these deliveries .
Rusal expected to exclude monopolisation of relations by means of creation of the joint venture with the companies promparka - through a share in the property he wanted to supervise the price for the equipment. However this variant has been rejected. The matter is that to 60 % of cost of the equipment makes engineering, and participants promparka spend him at the foreign factories. Rusal did not know engineering cost, and the joint venture would not give it control over the final price of the equipment. Then it has been decided to make contracts with manufacturers promparka under the scheme kost - plus . The average cost price of release of the equipment, and also the fixed margin of the manufacturer registers In its frameworks for some years forward. But without knowing engineering cost, the real cost price of manufacture of the equipment of Rusal could not estimate. As a result the risk of monopolisation of relations for Rusala on - former remains. However, in the company assert that it is minimum, as participants promparka do not have exclusive contracts with Rusalom and to it nothing prevents to involve other suppliers.
the EXIT ONE - COOPERATION With FOREIGN COMPETITORS
BUSINESS GUIDE: What requirements of the Russian metallurgists for the equipment?
YURY UTOCHKIN: very considerable, taking into account almost 60 % of deterioration of fixed capital metzavodov. First of all it is necessary to expect the further growth of demand for modern super-power electrosteel-smelting furnaces in a tandem with units of extraoven processing (the furnace - ladles, vakuumatorami). Electrometallurgy in Russia as to the most progressive and dynamically developing way of manufacture of qualitative metal, still it is necessary to overcome where - that 20 - summer backlog from world branch. All over the world the share of the steel melted in electric furnaces, comes nearer to 40 %, and in some countries exceeds 60 %. Russia only last year left on an indicator approximately in 20 % - 14 million t and while at us the martin manufacture which has become outdated in every respect makes 20 %. Besides, demand for cars of continuous moulding of preparations will grow in the Russian steel branch (MNLZ), of course. In the advanced metallurgical world on MNLZ 96-98 % of a steel, in Russia - hardly more than 60 % spread. Worse us on this indicator from the large countries Ukraine looks only.
at last, in Russia start to be under construction mini - factories. These are electrosteel-smelting complexes, very effective, with the minimum set of the equipment and the extremely simply built metallurgical cycle: the electric furnace-installation the furnace - a ladle-mnlz-ready hire. A minimum of workers, a minimum of harmful emissions in atmosphere, a power consumption minimum at the maximum mobility, productivity and prisposobljaemosti to the market. On large Russian metkombinatah thousand people till now work. On mini - factories as capacity to 1,5-2 million t steels in a year can work no more than 120-150 persons. In Germany there is such factory BSE, it does to 40 and more swimming trunks a day, that is practically one fusion for half an hour. For comparison: in martin to shop fusion goes till ten o`clock. Thus to construct mini - factory costs much more cheaply: Its cost will make $250-300 for capacity ton whereas the traditional factory with a full cycle will manage not less than in $600-700 for each ton of a melted steel.
summing up, the cores Orders of the Russian metallurgists today and in the future is a reconstruction of existing martin shops, building instead of them electrosteel-smelting, installation new MNLZ and rolling mills, and further and litejno - the rolling complexes new mini - factories on a turn-key basis . The similar enterprises already are under construction, for example, in Revda, Serove, Vyksa.
BG: In what condition there is a domestic metallurgical mechanical engineering? Whether there were in Russia competitive manufacturers?
JU. U: If to speak about enterprises OMZ it is Izhora factory and an Uralmash . an Uralmash in general was under construction as the supplier of the equipment for ferrous metallurgy and not without reason carried the name factory of factories . With its participation tens metallurgical enterprises in the USSR and many foreign countries have been constructed. an Uralmash It is capable to let out rolling mills, MNLZ, large forge - pressovoe the equipment. Besides, and an Uralmash and Izhora factory make the equipment for blast furnaces. Besides OMZ in the Russian market such manufacturer, as " is known; Sibelektroterm . It specialises on release of electric furnaces, can do installations the furnace - a ladle. Also are appreciable ORMETO - JUUMZ, elektrostaltjazhmash the Volgodonsk factory of the metallurgical and power equipment which make details of the furnaces, separate parts MNLZ and other equipment.
BG: And what it is possible to tell about the enterprises of the former USSR which have appeared outside of Russia in the CIS countries?
JU. U: the Serious competition to Russians is made by the Ukrainian New Kramatorsky machine-building factory which works successfully enough, invests in development of the enterprise much and has set as an object to let out a full spectrum of the metallurgical equipment: electric furnaces, installations the furnace - a ladle, vakuumatory. But now any enterprise in the CIS does not let out a full ruler metoborudovanija and is not capable to undertake building of the same mini - factory on a turn-key basis . The main backlog of machine engineers of Russia and the CIS consists In it from the western competitors. As a result the share of home producers metoborudovanija in home market makes no more than 10-12 %.
BG: whether There is a possibility for the Russian manufacturers to increase the share of the market?
JU. U: Possibility one - cooperation with the foreign companies which constantly search for subcontractors in Russia. Certainly, at SMS Demag or Danieli in Europe there are own perfectly equipped capacities, but taking into account expenses for energy carriers and labour at these factories there is no sense to let out large metal-consuming production, and then to be spent for its delivery to Russia. In Europe foreigners do only a stuffing on technologies which they do not want to transfer anybody. And here they can involve us on subpodrjade for manufacture of all of the rest. For example, OMZ - the Crane participates together with Danieli in the civil-engineering design of an electrosteel-smelting complex near Vyksa for needs of the Incorporated metallurgical company. We deliver large metallurgical cranes, that is that part which is metal-consuming and which is more favourable for making in Russia. All question in, whether the Russian manufacturers can fulfil rigid enough requirements of foreigners. The most rigid requirements concern not so much quality of the made equipment, how many terms of its execution. If this or that metkombinat, for example, changes the car of moulding of preparations it accurately plans when will stop the old car and what is the time installation new will occupy. Each delayed week manages serious losses. So the most rigid requirements at foreign suppliers of the equipment concern terms, and correspond to them can not all.
BG: As OMZ is going to develop metallurgical mechanical engineering if in due time the company has sold this business to affiliated structure Severstal - Severstalmashu ?
JU. U: We have sold Severstal base engineering in face of the firm an Uralmash - the metallurgical equipment having left itself working engineering. In other words, we have sold working out and equipment designing, having kept division which is engaged in operational development of ready drawings under concrete orders. Today it is clear that the decision on sale of base engineering has been dictated flowing, instead of strategic problems an Uralmash . And in OMZ the decision on revival of base engineering metoborudovanija is accepted. In what kind it will occur, is not clear yet, but ways two - or to redeem it back, or to create own engineering from zero. Now we discuss with administration of Sverdlovsk area development strategy an Uralmash and its considerable part is devoted manufacture of the metallurgical equipment and development of base engineering. For 2005, according to plans, a manufacture share metoborudovanija in manufacture total amount an Uralmash should make 56 %, however real volumes have appeared more low. At the same time we hope that in due course on release metoborudovanija on an Uralmash 60-70 % of manufacture will have.
BG: But whether there is a sense to revive this direction, considering, what about 90 % of the market metoborudovanija foreigners hold?
JU. U: the Question difficult. One I can tell: if an Uralmash it will not be loaded by manufacture metoborudovanija I do not see possibility on - to the present to load it something another though the factory lets out both large mountain, and the nuclear equipment. I will repeat that the enterprise was created first of all as the supplier for the metallurgy enterprises. I think, if we revive this direction, at us will be more possibilities both for independent activity, and for cooperation with the foreign companies in rather attractive market of the metallurgical equipment.
interview took Dmitry BELIKOV