“PECHORA-2M” IS THE CORE COMPETENCE OF “DEFENSE SYSTEMS”"Military-Industrial Courier", 17.08.2005
BASIC COMPONENTS OF UPGRADED AIR DEFENSE SYSTEM MEET THE LATEST REQUIREMENTS
Correspondent of “Military-Industrial Courier” interviews Andrei Romanov, General Director of “Defense Systems” (“Oboronitelnye Sistemy”)
- Andrei Borisovich, it is almost nine months since you have become General Director of the “Defense Systems” and the company was integrated into the “Oboronprom” holding. Though, it is not a short term, can we talk about some results?
- Over the past nine months, in my opinion, there was much work done. In the first place, with direct participation of the “Rosoboronexport” state enterprise promotion concept of our main production (“Pechora-2M” air defense system) was reviewed – it is to be aimed for foreign market now. Previously, “Defense Systems” participated in tenders on upgrading the “Pechora” systems that were in the inventory of different countries, but now we market “Pechors-2M” as new system designed on the basis of S-125 air defense system, which gives opportunity to widen the range of potential buyers by mean of attracting countries that have no S-125 in the inventory.
As a result, in the first half of year 2005 “Rosoboronexport” made two new contracts on procurement of “Pechora-2M” air defense system. Thus, our “Pechora” stock of orders amounts to 25 units. In July during firing exercises we demonstrated capabilities of “Pechora-2M” to several foreign delegations. The target was hit with 100% accuracy with the first missile. In March we successfully performed tests of EMI shielding system. This system can drive enemy’s missiles homing at radiation of antenna post to a safe distance. Usage of this system several times increases combat survivability of the “Pechora-2M”.
Following the results of the last year the “Defense Systems” holding showed good financial results: revenue exceeded RUR 3.2 bln, profit amounted to RUR 404m.
PERSONAL FILE
Andrei Borisovich ROMANOV
Andrei ROMANOV, General Director of the “Defense Systems” JSC
Was born in 1969. In 1993 he graduated from the Faculty of Economics, the Moscow State University. In 1986-87 he worked as programmer at the Design Bureau of the “Moscow Radio-Technical Plant”. From 1993 till 2001 headed RCM group of companies. From 2000 till 2005 he was a Board member of the “Tupolev aviation sci-tech complex” JSC. From 2001 till 2003 – Deputy Head of the “Gosinkor” state enterprise. From 2003 till November 2004 – General Director of the “Moscow radio-technical plant” R&D company. From November 17, 2004 he became the Chairman of Board of Directors of the “Moscow Radio-Technical Plant” R&D company.
- What place does the “Defense Systems” occupy in the structure of the “OPK “Oboronprom”, which at the same time is the managing company of helicopter holding?
- The “Oboronprom” is a diversified multi-sector corporation. One of its lines of activity is creation of integrated structure in helicopter industry. Within the structure of the “Oboronprom”, the “Defense Systems” represents the line associated with production of electronic systems, in particular, air defense systems. We are planning to extend our presence in this business.
- Are you talking about creation of electronic warfare holding on the basis of the “Defense Systems” company?
- Yes, this area is also included. In our opinion, this business has good perspectives. Given changing warfare conditions, sophisticated electronics quickly find its market in different countries. That is why we should offer potential customers an adequate Russian product.
We have developed and are about to start the program of restructuring and technical upgrading of Moscow Radio-Technical Plant (MRTP) that is incorporated into the “Defense System”.
Our maximum goal is to increase research intensity and technological effectiveness of production processes. Restructuring program implies amalgamation of similar divisions, replacement of fixed assets by means of high-performance equipment purchase, rationalization of cost value buildup, introduction of norms, registering and control over expenditure of materials, depreciation of fixed assets, usage of energy resources, etc.
Moreover, in our opinion, this program includes innovative proposals that are not widely applied in defense industry, equipment leasing, for example.
In the long run, we are planning to have effective diversified production dealing successful with both military and civil projects.
- And what are relations of the “Defense Systems” with the “Almaz-Antei” group, considering the fact that main cooperation of air defense enterprises is concentrated in the latter? Moreover, several enterprises of the “Defense Systems” holding are also incorporated into the “Almaz-Antei”.
- At present, to certain extent there is a system of cross participation and ownership and thus, mutual interest of our companies in coordination of their activities concerning export contracts. It is necessary to mention that top management of the “Oboronprom”, the “Defense Systems” and the “Almaz-Antei” group have effective and fruitful relationships that give opportunity to solve existing problems effectively. By the way, it is a good example of corporate cooperation of large integrated structures that proves the integration effectiveness in defense-industrial complex as well as excludes unfair competition that is present among separate enterprises.
- The “Defense Systems” interstate financial and industrial group is the only example of cooperation among CIS countries in military industry. And how is IFIG now?
- At the moment our group includes 13 Russian and 6 Belarusian enterprises. The “Defense Systems” was established under specific project on upgrading the “Pechora” S-125 system. In cooperation with Belarusian colleagues we have solved this task and now the routine work on this system is underway.
In IFIG framework we are working with CIS countries on creation of joint service centers that will carry out guarantee and after-guarantee maintenance, repair and upgrade of air defense systems that are in the inventory of CIS and non-CIS countries. The process of establishing the “Oboronpromservice”, Russian-Belarusian service center for air defense systems, which is bound with participation of “Rosoboronexport” as well, is at the final stage.
There are plans of extension of the group by means of including certain enterprises of Ukraine. Several enterprises of Kazakhstan and Kirghizia also show interest in working under IFIG.
- What is the “Defense Systems” showing at the “MAKS- 2005” air show?
- First of all, the subject of the “Defense Systems” core competence – the “Pechora-2M” upgraded air defense system that in comparison with the “Pechora” S-125 has 90% of electronics upgraded. Basic component used in 2003 meets all modern requirements beginning from computer processes and ending with color LC air situation displays. Launching device, control unit and antenna station can be placed at much greater distance (instead of former 70 meters), which increases combat survivability of the system. Instead of 4 launching devices, “Pechora-2M” has 8 launching devices. Acquisition range is twice longer in conditions of interference attack and time between failures is five times greater.
Except for “Pechora-2M” the “Defense Systems” will display “Phoenix” IR all-round optic-electronic station that has no peers in the world. This station can be installed on vessels of different types, ground transport vehicles, air defense combat vehicles and immobile posts.
Civil products of our holding are represented by radiographic installation for uncontrolled inspection of carry-on luggage with respect to detection and identification of unauthorized contents (IntroSpect-6371). This unit will be of invaluable help to special services in the process of detection of explosives, narcotic and other substances in airports, at public events.
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