In 2014, United Instrument Manufacturing Corporation augmented production by almost 25%. Overall gains of the enterprises of the holding made over 110 billion RUB. It took the company, established within State Corporation Rostec, less than a year to reach almost 100% implementation of the State Defense Order and to prove that it was a key player on the Russian market of radio electronics.

Foundation of UIMC in March last year marked the completion of restructuring radio electronics sector, which had been going on for several years. It was the President Vladimir Putin, who gave the order on establishing a new holding in May 2013. By the statute of the government, the corporation included the leading research and industrial facilities, such as concerns Vega, Sozvezdie, Control Systems, and some other enterprises and research institutes.

“As of today, the corporation incorporates 61 enterprise,” told the Director General of United Instrument Manufacturing Corporation Alexander Yakunin. “All enterprises are different, and they have their own traditions, achievements and problems. First of all, we had to switch them to unified standards of the State Corporation Rostec. The standards cover corporate and financial management, budgeting, production etc. We have built a unified system for management, business processes, and reporting; we’ve conducted process and staffing audit, and analyzed possibilities for technological development and models for optimal cooperation within the holding. In that way, we launched the development of an effective system, which would allow fulfilling the tasks set forth by the government.”

In 2014, the production increased primarily due to large-scale State Defense Order projects. The increase took place in all key areas of operation of UIMC, i.e. communication means and systems, automated control systems, radioelectronic warfare systems, and systems for radioelectronic reconnaissance. Over 40% of the total production are innovative products, such as results of R&D and high-tech projects.

“We succeeded in almost fulfilling the State Defense Order for 2014, since 98,6% of the works planned were complete. We had to adjust the schedule for some projects involving R&D; however, it made no impact on the overall situation, and there were no failures,” commented Deputy Director General of UIMC Sergei Skokov. “At the same time, the legacy we had got was tough, as we became responsible for over 30 problematic projects with delayed schedules and no outputs. We managed to improve the situation drastically in less than a year. One of our key achievements in 2014 was reaching almost 100% in fulfilling the State Defense Order. This is the major strategic goal of the corporation.”

Large UIMC projects included mass production and supplies of the advanced radioelectronic warfare system Borisoglebsk-2. Each system consists of 9 units that secure radio jamming of all modern radio communication equipment of the potential enemy. A project was completed on developing computerized communication centers Antaeus for the highest command units of the Armed Forces of Russia. There hadn’t been such developments in the country since 1980s. Communication systems for the air force and navy with no peers in Russia (and sometimes abroad) were developed, including S-111 for the 5th generation fighter T-50, and S-403-1 for Ka-52 Alligator helicopter, as well as systems Buran and Uragan for the modern submarines and ships of the Russian Navy. New equipment is based on modern hardware, and it provides totally new speed of transmitting data almost fully preventing mistakes made by people. Besides, the corporation completed supplying a unique airborne surveillance system Open Skies to the air force of Russia in 2014. Two aircrafts, manufactured against the order of the Ministry of Defense, were equipped with the most advanced hardware for surveillance flights in the framework of the international agreement on open skies signed by over 30 countries of the world.

Another large-scale project is meant for upgrading Russian airfields, i.e. new generation equipment is installed instead of obsolescent navigation systems. As of today, advanced radar stations have been supplied to about 30 airfields. In 2015, new equipment will be delivered to the airfields in Komsomolsk-on-Amur, Ust-Kut and Neryungri. Besides, the corporation will manufacture hardware for the international airport Kursk, airports Vostochnyi and Borisoglebskoye of Irkutsk and Kazan aircraft factories.

One of the advanced areas developed by UIMC is robotics, including unmanned aerial vehicles. Last summer, the corporation showcased a model of a unique drone Chirok at Innoprom exhibition. The UAV is capable of taking off from virtually any surface and without a landing. At the moment, a full-size prototype is being manufactured. At the same time, the enterprises of the corporation located in the city of Rybinsk, Yaroslavl region, are producing smaller drones Corsair at the full scale. The first phase of technical upgrade of production facilities was completed in 2014, and the second phase aimed at establishing mass production will commence this year. By the end of 2016, the corporation intends to introduce Corsair to the market. This is the first project of the kind in Russia.

“The corporation has set a goal to considerably increase the share of civilian products, and we have launched the implementation already,” said Alexander Yakunin. “Large foreign companies with equal shares of defense and non-defense production are a reference for us. By 2020, we are planning to reach the figure of 15%, and it should become 25% by 2025. We increased civilian production significantly last year. In 2013, civilian products were delivered for the sum of 5,7 billion RUB, and in 2014 the shipments were 7,5 billion RUB worth, i.e. the increase made almost 50 percent.”

UIMC has been successful in substituting imports, including non-defense goods, communication hardware, computerized control systems and medical equipment. A number of projects aimed at substituting imports for telecommunication equipment for corporate clients and for governmental organizations is under implementation.

“This is one of the key tasks given to us by the government, and we expect a breakthrough as early as this year already,” told the Director of a department of UIMC Alexander Kalinin. “At present, this market is almost fully occupied by large foreign companies. For instance, the share of Russian brand equipment in the segment of corporate networks is not bigger than 10%, but the share of foreign components is large. All this causes serious risks for protecting information that we should get rid of. Together with other Russian companies we are getting ready for introducing a range of telecommunication and computing solutions with Russian software and hardware to the market in 2015. The equipment should solve the issues of information protection that are so urgent for governmental and corporate facilities today.”

When working on that, the corporation negotiates with European and Asian companies on getting relevant technologies and locating telecommunication production in Russia, given transfer of all necessary documentation, software with initial codes, and training of Russian experts. All this will provide for further independent upgrade and development of the newly obtained technologies at Russian factories.

In 2014, United Instrument Manufacturing Corporation was active on foreign markets not only in the capacity of a buyer, but as a supplier as well. The enterprises of the holding increased exports to a large extent, and the returns from the exported goods totaled to 107 million USD (90,5 million USD in 2013). Airborne and land-based communication systems, radar stations and navigation equipment made the main share of exports. The partners included the countries of CIS, Africa, Asia, and Latin America. By 2025, the corporation is planning to raise exports by 15 times. This is stipulated in the Key Strategies of UIMC development that were approved by the Commission for Investments, Innovations and Modernization of State Corporation Rostec late last year. The document had been developed by the experts of UIMC together with analysts of one of the leading research institutes of the sector, Central Research Institute Electronics, and it contains detailed analysis of the situation at the enterprises of the corporation, trends at foreign and domestic markets, ambitious plans of the company, and forecasts for 2025 that envisage growth in all key areas of operation of UIMC.

“Despite the current economic trends, the corporation makes positive forecasts for 2015,” highlighted Alexander Yakunin. “We are forecasting over 120 billion RUB returns. Taking into account the high level of our competencies, developments and production capacities, we will be continuously strengthening our positions. By 2020, we expect to gain over 200 billion RUB and to take up to 50-70 percent of certain domestic markets. By 2020, we intend to become number 50 in manufacturing radioelectronic products in the world, and number 30 by the year 2025.”