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UEC, the Yaroslavl Region, and VTB will create a Factory of the Future

Site news 18.07.2017

Zhukovsky, July 18, 2017
Press-release

Within the framework of the International Airshow MAKS-2017 in Zhukovsky, United Engine Corporation, VTB Bank, and the Government of the Yaroslavl Region have entered into a collaboration agreement in order to implement the project Production-type test site Saturn Smart factory.

The National Technology Initiative started in Russia in 2014. It is aimed at the development of strategically important industries and the shaping of markets of the future. In 2015 there were organized some working groups for the establishment and development of such markets and a single cross-market group for the development of advanced industrial technologies – “TechNet” (with the involvement of UEC-Saturn). In July 2015 the ASI (Agency for Strategic Initiatives) Expert Council chaired by V. Putin, President of the RF, recommended the project “Factories of the Future” for implementation. One of the objectives of this project is to form an infrastructure for the development of a complex of key competences in order to launch “Factories of the Future” aimed to work out advanced cross-industry solutions on the basis of “TechNet” test sites.

Within the framework of the project there is a plan to launch two first test sites (St. Petersburg Polytechnic University and Saturn), to form an infrastructure supporting and developing “Factories of the Future” on their basis and to ensure the establishment of seven “factories” by 2025.

The agreement signed by Alexander Artyukhov, UEC Chief Executive Officer, Andrei Kostin, President - Chairman of Board, VTB, and Dmitry Mironov, Acting Governor of the Yaroslavl Region, during MAKS-2017 specifies the underlying principles of further development of cooperation and coordination between the corporation, the bank, and the region within the framework of implementation of the “Factories of the Future” project at Saturn. Among them: creation of the required production and social infrastructure for the successful implementation of the project; arrangement of conditions of the most favourable tax treatment for the project (due to its significance both for the Yaroslavl Region and for the Russian Federation as a whole); introduction of state-of-the-art technologies of management and coordination between regional authorities, the financial sector, and R&D and production activities.

In accordance with the agreement UEC shall provide intellectual and labour resources as well as consider the possibility of allotting a territory with the required infrastructure. The Government of the Yaroslavl Region shall grant a package of tax privileges, ensure communication with federal executive bodies in order to get necessary resources and shall contribute to the creation of a social infrastructure around the involved production facilities. According to the terms of the agreement VTB shall consider the possibility to allot credit resources and advanced tools of VTB Group transaction and investment business within the framework of implementation of the project. If needed, the bank will also participate in the financial appraisal and examination of project as well as will render UEC consultation services as related to its organization.

 “The three-party agreement signed today is a significant step on the way to the creation of “Saturn Smart Factory”, – says Alexander Artyukhov, UEC CEO. – This project is of great importance not only for United Engine Corporation, but for all Russian industry because the adoption of the latest technologies, training in advanced production organization methods are necessary conditions of competitiveness at the world level. Together with our partners we will do our best to have a “Smart Factory” test site in such a multi-business and innovative company as UEC-Saturn in the near future.

During the ceremony of signing, Andrei Kostin, President - Chairman of Board, VTB, pointed out that the agreement would promote the introduction of innovative solutions into Russian industry, thus developing the competitive base of domestic technological products.

“The agreement signed today and the establishment of “Saturn Smart Factory” in Rybinsk on the premises of UEC-Saturn is of strategic importance not only for the Yaroslavl Region but for the country as a whole, – pointed out Dmitry Mironov, Acting Governor of the Yaroslavl Region. – This project is aimed at the development of digital economics in Russia, long-term competitive recovery of the country and the Yaroslavl Region, the formation of a new production setup. The outcome of the project will be the organization of “smart” production, the development of competences and technological solutions in order to spread around ”Smart factories” able to compete worthily on the world market. Thus we are following the tasks set by Vladimir Putin, President of the Russian Federation, who defines the National Technology Initiative as one of the priorities of the state policy, a basis for breakthrough development of Russian companies”.

UEC-Saturn (PJSC) is an engine-manufacturing company specialized in the design and development, production and after-market support of gas turbine engines for military and commercial aviation, power generation and gas compression as well as for ships and vessels. UEC-Saturn PJSC is a part of United Engine Corporation (JSC) and is the leader of the Commercial Engines division, a business unit of UEC.
UEC-Saturn PJSC is a member of the all-Russian industrial association of employers “Russian Engineering Union”, the Yaroslavl regional office of the all-Russian public organization “Russian Engineering Union” is headed by V.Polyakov, Managing Director of UEC-Saturn PJSC.

United Engine Corporation (JSC) (a Rostec State Corporation company) is an integrated organization specialized in the design and development, serial production and after-market support of engines for military and commercial aviation, space programs, the Navy as well as for the oil and gas industry and power generation. One of UEC’s prioritized fields of activity is the implementation of comprehensive programs of development of the industry’s companies by introducing new technologies meeting the world-class standards.

Rostec State Corporation is a Russian corporation established in 2007 in order to facilitate the development, manufacturing and export of high-technology industrial products of military and commercial application. The corporation comprises more than 700 companies, which form 11 defense-industrial and 3 civil industry holdings as well as more than 80 direct control companies. The Rostec portfolio spans such renowned brands as AVTOVAZ, KAMAZ, Kalashnikov Group, Russian Helicopters, VSMPO-AVISMA, Uralvagonzavod and others. Rostec’s subsidiaries are located in 60 regions of Russia and deliver their products to over 70 countries worldwide.  Rostec' s consolidated revenue in 2016 reached 1 trillion 266 billion rubles, the consolidated net profit — 88 bln rubles, and EBITDA — 268 bln rubles. The average salary of the Corporation in 2016 amounted to 44 000 rubles. Following Rostec's new strategy, the major objective of the Corporation is to ensure the technological advantage of Russia on competitive world markets. One of Rostec’s key tasks is the introduction of a new technological structure and digitalization of Russian economy.


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