Rosoboronexport Director General Sergey Chemezov has suggested creating an association of industrial explosives producers to unite six biggest firms.
Photo: Dmitry Kostyukov
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Rosoboronexport to Unite Explosives Producers
State-owned arms exporter Rosoboronexport is to make a move into ammunition and explosives production after acquiring stakes in automobile, titanium and steel enterprises. The company’s head Sergey Chemezov has suggested creating an association of industrial explosives producers to unite six biggest firms.
Sergey Chemezov suggested in letter to the Industry Agency Director Boris Aleshin, that Rosoboronexport take part in a nonprofit partnership of six major plants producing explosives and ammunition. The companies sell their products to the Defense Ministry, Rosoboronexport and ore mining enterprises.
Boris Aleshin said in an interview with Kommersant that Rosoboronexport would create a nonprofit partnership rather than a holding. “It’s good when there is also somebody out there to control explosives producers apart from the state,” Mr. Aleshin said. The proposed association will be able to run joint management and pricing, according to the chief of the Industry Agency.
Russian industry experts call ammunition and explosives “the most depressive sector of the defense industry” due to paltry export contracts and state orders. But the deal itself proves that Rosoboronexport is set to consolidate enterprises in different industries – lucrative and struggling alike.
www.kommersant.com
All the Article in Russian as of May 25, 2007
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