BOOKMARKS www.sevmash.ru «PO «Sevmash» is the largest ship-building complex
RUSSIA INDIA REPORT
05
in Russia
http://shipbuilding.ru/eng Russian shipbuilding informational resource
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
www.crist.ru/eng Research Institute of Shipbuilding Technology THE ECONOMIC TIMES WEDNESDAY_MARCH 18_2009 Shipbuilding
Interview Vladimir Pakhomov, President of the United Shipbuilding Corporation, talks about his ambitions for the state-
TU leader
initiated project; he wants to exchange expertise with foreign countries and sees India as a long-term partner
at shipyard
Raising the standards
wins mayor
post
Local elections took place in
Russia in early March. Mikhail
of the shipbuilding industry
Gmyrin became the mayor of
northern city of Severodvinsk,
where submarines are built
and repaired, and major
surface ships are modernised
too.
Established at the behest of
ALEXANDER SMOLENTSEV
Vladimir Putin in 2007, the
RIR
United Shipbuilding
Corporation (USC) is not to be The newly elected city chief
confused with other Russian building used to head up the trade
state corporations. It is an ships for civil union committee at the
open joint stock company, use – ice-breaker “Zvezdochka” ship repair
although 100% of shares are tankers and liquefi ed yard.
state-owned. gas carriers. This is what The crews of four Indian
we badly need. Navy submarines that were
ALEXANDER YEMELYANENKOV
being repaired and modern-
RIR By happy coincidence, the mem- ised in Severodvinsk have
FROM PERSONAL ARCHIVES
orandum was signed at the same had meetings with this man.
The idea of creating the USC has Vladimir Pakhomov, President time as the opening of a liquefied Gmyrin always took interest
been around for a long time in the of the United Shipbuilding Cor- gas production facility on the is- in how the work was organ-
corridors of Russian power. How poration land of Sakhalin, attended by the ised for the “Indian orders”
did it come about? leaders of Russia and Japan. and did a lot to ensure that
Shipbuilding in Russia is Yes, that was no coincidence. the sailors seconded to Rus-
the kind of industry where RIR Dossier: USC Our countries need reliable sia, and their families, feel
the majority of facilities are ways of transporting gas, so well so far away from home.
state property, so it’s very On 21 March 2007, then- that is a field for mutually Severodvinsk is where the
dependent on direct support President Vladimir Putin benefi cial co-operation. For aircraft carrier Vikramaditya
of the state – all the more so signed a decree creating an the South Koreans, the fact is being repaired for the Indi-
in the present economic cri- open joint stock company, the that 100% of the USC’s shares an Navy. The Sevmash ship-
sis. Shipbuilding faces some United Shipbuilding Corpora- are held by the state provides Bringing the giant aircraft carrier through the dock yard previously built two die-
huge challenges: rapid and tion (USC). Three sub-hold- a strong guarantee that the gates demanded extremely fine handling sel-electric submarines for
far-reaching modernisation ings were created as daugh- partner relationship between India. The neighbouring
of production capabilities, ter companies: the Western the two sides is secure.
MAKSIM VORKUNKOV
“Zvezdochka” yard carried
technological improvements Shipbuilding Centre (compris- out repair work on four older
and optimisation of eco- ing 8 companies), the North- Let’s get back to co-operation on submarines. Repairs on the
nomic processes. ern Shipbuilding and Ship Re- defence equipment. Where does It’s planned to complete re- fi rst one, the Sinduvir, were
pair Centre (13 companies) India fit into your plans? pairs and refi t by 2010, but a completed in 1999, and on the
If this had not been done, would and the Far Eastern Shipbuild- India has always been a long-
The ship is afloat, but its
further two years will be second, the Sinduratna, in
it have spelt the end of Russia’s ing and Ship Repair Centre (5 term partner for us. Our best needed to carry out trials – 2002. Next was the diesel-
right to be called a maritime companies). Another 8 compa- shipyards and design bu- mainly to perfect the ship’s electric submarine Sindug-
power? nies fall under the USC. reaux – Rubin, Malakhit, the
price is being discussed
air operations. osh. In 2008, the fourth sub-
It’s not about names or titles – It was decided to privatise Neva design bureau, the Ad- The renovated Vikramadit- marine, the Sinduvijay, set
it’s about securing future de- everything, including defence miralteyskiy organisation (in Negotiations between India structure to allow the ship to huge number of workers and ya’s emergence from dry dock sail for its permanent base. A
velopment and maintaining yards and design bureaux that St Petersburg), Sevmash and and Russia concerning the be stationed in the Indian additional expense. The orig- was timed to coincide with fifth submarine, the Sin-
our competitive position. The were still state enterprises: the Zvezdochka (in Severod- cost and schedule for Ocean. inal schedule shifted, which India’s Navy Day. Speaking durakshak, will probably ar-
USC was set up precisely in Sevmash and Admiralteyskiy vinsk), and the Yantar facility completion of the aircraft The overall value of the con- understandably left the cus- at that time in Severodvinsk, rive from India for repairs in
order to preserve and develop yards, and the Almaz, Rubin in Kaliningrad – are working carrier Vikramaditya are tract was not made public, tomer dissatisfied. It got to Commodore Madhusudan- the near future.
-
Russian shipbuilding’s scien- and Malakhit design bureaux. on contracts we signed with being held in both countries. but it was announced that the point where Sevmash an, leader of the monitoring
tifi c and production potential. India in recent years. Russia's delegation, led by the work would be complet- was in a stalemate situation: group, stated, “An important
It’s a giant holding, designed Alexander Fomin, recently ed to a very tight deadline, work was at its most intense stage in the refit has been Who’s who
to bring together dozens of The Yantar yard is building three visited Delhi. the end of 2008. Initial fore- but the fi nance, due to come completed. There is no doubt
state-owned production fa- tic waters and northern river frigates for the Indian Navy: how casts, however, were defeated in separate instalments, had that the aircraft carrier will
cilities, design bureaux and estuaries – these are our is the work going?
ALEXEY SMIRNOV
by reality: so much had to be dried up. become the fl agship of the In-
research institutes. areas. We are already putting I don’t see any serious RIR dismantled, rebuilt and refi t- According to Sevmash’s gen- dian fl eet.”
a few deals together and grounds for concern. Any is- ted that at times it seemed eral director Nikolay Kalis- For this to happen in 2012, as
How is the relationship be- hope to secure some fi rm or- sues that arise are being re- The people directly respon- quicker and cheaper to build tratov, recently the fi rm has specifi ed in the revised time-
tween naval and civil shipbuild- ders. I’m sure we’ll fi nd part- solved in a businesslike sible took part in these talks: a new one. been covering the costs of table, India must ensure
ing seen? ners in other countries too; manner.
-
Nikolay Kalistratov, general “Our shipbuilders ran up modernising the ship from its there is sufficient finance,
There needs to be a sensible as recently as mid-February, director of the Sevmash ship- against a whole pile of things own internal reserves and by the general director of Sev-
balance. Alongside develop- we signed a memorandum yard, and head of pricing that were new to them,” said taking loans. But that cannot mash stated on his return
ing defence programmes, we on co-operation with Sam- Tatyana Arkhipova. They Anatoliy Isaykin, head of continue indefinitely, espe- from India. As far as the jus-
will build high-tech ships sung Heavy Industries Co. RIR Dossier: industry had the opportunity to ex- Rosoboroneksport, Russia’s cially in times of crisis. tification for the expendi- FROM PERSONAL ARCHIVES
for the civil sector. We won’t Ltd in South Korea. plain their position on all state defence export agency. Three months ago, after in- ture is concerned, the ship-
be trying to build every- The industry comprises contentious issues in direct Explaining why this hap- tensive work on the hull, the yard is ready for this. Ac- Vladimir Nikitin, general direc-
thing, but we’ll be selective And what does that give you? 168 companies, employing dialogue with their Indian pened, he said: “The fact the aircraft carrier was taken out cording to Kalistratov, the tor of the “Zvezdochka” ship
in where we see a promising The document enables us to 160,000 people in more than customers. aircraft carrier would have to of dry dock and now it’s afl oat fi rst 3,000 pages of accounts repair centre, recently vis-
niche for ourselves that isn’t share experience and take 100 ship-repairing enterpris- Five years ago, Moscow and be virtually rebuilt was not again in Sevmash’s fi nishing have already been delivered ited Mumbai to participate in
already covered. part in projects aimed at de- es and about 2,000 subcon- Delhi concluded a deal for taken into consideration.” yard. From the outside, the to the customer. the discussions on how to de-
veloping shipbuilding in tractors. In 2008, total sales the Russian cruiser Admiral Moreover, the Indian Navy’s ship looks completely fresh “The Russian side has ex- velop co-operation on military
For example? both countries, and to im- exceeded 150 bn roubles. To Gorshkov to be repaired and inspection group was moni- and ready for action, but as pressed its position on price equipment between India and
Tankers, gas carriers and prove economic, technical increase the industry’s com- refi tted as the aircraft carrier toring work on the ship al- far as the “innards” are con- according to the contract,” Russia. He was appointed to
cruise liners are areas where and production co-opera- petitive edge, the Russian gov- Vikramaditya for the Indian most round the clock, and cerned, there’s still a great Tatyana Arkhipova added on this post 18 months ago.
leading shipbuilders are al- tion on issues related to de- ernment adopted the “Strat- Navy, and at the same time 16 every time a dilemma arose, deal of work to do. her own behalf. “In addition, As before, the “Zvezdochka”
ready long established. I’m veloping and introducing egy for Industry Development naval aircraft would be sup- to retain an old feature or to “The finishing yard will be agreement has been reached yard will provide guarantees
not going to waste time on the latest technologies in until 2020,” which will bring plied for it. Russia also un- replace it with something installing large-scale equip- with the customer on ad- for Indian submarines that un-
these. But technical and aux- modern ship design and together Russia’s key ship- dertook to train the carrier’s new, it insisted on replace- ment and doing internal in- vance payments to continue dergo repair and modernisa-
iliary ships, oil and gas plat- construction. This Korean builders under the USC. Indian crew – about 1,500 ment. Obviously, this also stallation and fi nishing,” the the work underway at Sev- tion in its facilities.
forms, ice-breakers for Arc- fi rm actually specialises in strong – and create the infra- took time and required a company told us. mash.”
-
Industry Despite the financial crisis, producers of high-tech naval weaponry will still find foreign business
of weapons and equipment
for their navies.
Russian shipbuilders can weather the fiscal storm
In 2009, Vietnam, supported
by Russia, launched licensed
construction of Project 12418
Molnia missile boats with
Uran-E shipborne missile
The Russian shipbuilding moil threatens to aggravate Co-operation with India is a tender for seven 17A frigates systems. Besides, the Algeria
industry has a number of the situation in the Russian top priority for Russian ship- (with six of them built in and Libya markets still offer
distinctive features; it is shipbuilding industry, as its builders. The two countries India under a licence) com- good opportunities for sale of
dominated by a naval focus. commercial market is shrink- are likely to soon sign an missioned by the Indian Russia’s naval armaments.
This tradition began under ing and the Russian bank agreement for India to ear- Navy. Russia’s tender bid As for submarine shipbuild-
Peter the Great (early 18th credit system has almost mark an extra $1.1 bn for fur- presents the Project 22350 ing, Russia might soon sign
century), running through the ground to a halt. To survive, ther overhaul of the Admiral frigate, which has been built its long delayed contracts
Russian Empire and Soviet the industry will need the Gorshkov, a Russian-made by Severnaya Verf for the with Venezuela and Indone-
Union to shape many aspects lifebelt of the state-fi nanced aircraft carrier, into the INS Russian Navy since 2006. sia, who intend to commis-
of the industry’s development. military orders, which will Vikramaditya. Even though China prefers to sion Project 636 diesel-elec-
mean several more years of Another important contract build its own warships (albe- tric submarines (three for
MIKHAIL BARABANOV
defence orientation. is the agreement for con- it designed in co-operation Venezuela and two for Indo-
EXPERT Russian shipbuilders must
struction of the second with Russian engineers and nesia). Venezuela and other
pin their hopes on domestic Project 971 submarine, In- partially equipped with Rus- countries also plan to buy
For instance, in 2008, 70% of and foreign demand for mili- dia’s order to the Russian sian weapons), it may choose next generation Project 677
the industry’s total output ALEXEY DANICHEV_RIA-NOVOSTI tary products. Despite the Amur Shipbuilding Plant. to purchase a number of submarines in the future.
was naval ships, allocated Corvette of project 20382 «Stereguschiy» implements the newest achievements with regard to design crisis, they have good reason Additionally, Russia still has “niche” units – several new- Russia has also been very ac-
both for the Russian army of hull and upperworks structure, weapons and equipment. The corvette, designed using stealth tech- for optimism: many nations a chance of securing Indian generation Project 677 (the tive in export promotion of
and exports. nology, marks a new epoch in the Russian shipbuilding. which benefi tted from the re- contracts for construction of Lada-class) non-nuclear the Stereguschiy, its brand-
Thanks to cutting edge tech- cent economic upswing con- three new Talwar class frig- submarines or Project 12322 new stealth corvette Project
nology, Russian naval ship- tinue rearmament pro- ates, also known as Project Zubr air cushion landing 20380, which has already
builders design and con- Russian civil shipbuilders yards are lagging far behind market of sea-river vessels grammes to build up military 11356 (three of such frigates craft – from Russia. Russia’s sparked interest in such po-
struct all types of war ships lose ground to foreign com- their more cost-effective Jap- and riverboats or by building and political status. These were already built for India most efficient strategy of mil- tential buyers as Algeria,
and nuclear-powered sub- petitors. Despite Russia’s anese, South Korean and Chi- custom-made high-tech sea countries, including India, by the Baltiysky Zavod ship- itary co-operation with India Libya and Indonesia.
-
marines. leadership in the military ship nese counterparts. crafts (ice-class tankers, ice- China, Vietnam and Algeria, yard and three more are now and China would be the
Yet this technological ad- market, which is ready to pay This is why the Russian civil breakers, oil and gas explo- have been major buyers of under construction in the transfer of licences and tech- Mikhail Barabanov works at
vancement has its downside: a higher price for state-of- shipbuilders are trying to ration vessels, etc.). Russian naval weaponry over Yantar shipyard in Kalinin- nologies to these two coun- the Centre for Analysis of
high production costs mean the-art vessels, its civil ship- survive by tapping into the The current economic tur- the last 20 years. grad), as well as winning the tries and continued supplies Strategies and Technologies
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