The civil division of Motovilikhinskie Zavody, managed by RT-Capital of Rostec State Corporation, has increased the volume of metallurgical exports to Europe more than fivefold since the beginning of 2021, having shipped 900 tons of various steel grades. The amount of export contracts totaled 720 million rubles.

According to the company's data, Finland and Germany are the major importers of steel billets. Their share in the total European exports of Motovilikha is 90%. Since the beginning of the year, the plant has signed contracts with European companies for the delivery of over 2 thousand tons of billets of various steel grades, mainly for the machine-building industry.

"We have set a course to expand the volume of export deliveries as an additional mechanism for stabilizing the company's financial position. In 2021, we resumed exporting Motovilikha products to Germany. We have signed contracts worth 720 million rubles in the first five months. By the end of the year, we plan to boost the company's export earnings to 1 billion rubles. The company's total revenue for the year will be about 8 billion rubles," said Kirill Fedorov, General Director of RT-Capital.

In addition, Motovilikha has increased its presence in the CIS market. Over 75% of the plant's supplies are to Kazakhstan, Uzbekistan and the Republic of Belarus. These countries actively purchase drill pipes, pump rods and railroad axles.

"We have analyzed market conditions for railway axles, used in railcar wheel sets production, and made a decision to increase production of our own axle billets for the needs of Russian and foreign companies. In five months of 2021, for example, the factory has increased production of this type of product for shipment to the Republic of Kazakhstan by one third," Sergei Dyadkin, Director of Motovilikha Civil Machine Engineering, added.

At the moment Motovilikha Plants is in bankruptcy proceedings. The authorities of the Perm Krai point out that the region provides comprehensive assistance to the company in diversifying defense production and participating in industrial cooperation. According to Dmitry Makhonin, head of the region, the peak of difficult times for the enterprise has passed.

"Now the plant is mastering the production of new items of civilian products, expanding the markets and there are new developments of the military direction. We are glad that the present management understands well the development strategy and has clear plans on what has to be done for the company to break even. The civilian division ended two years in a row with a profit, which is a good indicator. All this shows that the plant has a future," he said.

Made in Russia // Made in Russia

Author: Karina Kamalova