Publications in Media

'In 2012 the company showed the best growth in deliveries among the three leaders'

20.08.2013 / Aviastroyeniye (Aircraft Building), supplement to Kommersant / Denis Popov

It recently came to light that Dmitry Petrov, Russian Helicopters CEO, was to resign fr om his post on the decision of the shareholders. However, he will remain on the company's board of directors to act on behalf of Oboronprom, part of Rostec State Corporation, and will have an influence on the helicopter holding company's strategy. He spoke about this and potential developments in the industry in one of his last interviews as the company's CEO.

To what extent did the company meet its targets in terms of production volumes and financial results for 2012?

In 2012 the company delivered 290 helicopters, equal to a 10% growth in production volumes compared to 2011. Russian Helicopters' IFRS (International Financial Reporting Standards) revenue recognition was RUB 125.7 billion, 21% higher than in 2011.

What are the production and financial forecasts for 2013?

Stable growth in deliveries and revenues over the last few years means that we are confidently positioned among the world's leading helicopter manufacturers. As for our plans for 2013, we anticipate a further increase in deliveries of over 300 helicopters, as well as a 15-20% increase in revenue.

What modifications have been carried out at the holding's companies, and what modifications are currently underway?

Russian Helicopters has been involved in projects to upgrade the equipment at its companies since 2009. Specifically, at the Progress Arsenyev Aviation Company, our production facilities in Primorsky Krai, modern foundry and magnesium production facilities have been installed, improving the quality of castings. At Kazan Helicopters, modern machining equipment has been installed. This has increased labour productivity 2-2.5 times. The process of updating our other production facilities is in full swing. For example, at Ulan-Ude Aviation Plant work has been carried out to develop and implement modern methods of designing and manufacturing the assembly parts for the new Mi-171A2. At Rostvertol in the last few years a new laboratory for dynamic testing has been set up and an anodizing process has been introduced. Technical re-equipping is underway at Reductor-PM, wh ere helicopter gearboxes and transmissions are produced, serviced and repaired. The company is currently involved in projects to modernize machining and its own chemical heat treatment shop is being set up. This is unique not only in Russia, but also globally.

What are the volumes of current and planned investment in the development of civilian and military helicopters?

Investments in production capacity in 2012 amounted to RUB 7 billion. The modernization of Russian Helicopters's production capacity and the development of new products is actively supported at the state level. In 2012 over 50% of capital investments in research and development and experimental design work was funded by the state as part of the federal programme to develop the defence industry from 2011 to 2020. We are continuing to develop our innovation potential. In the mid and long term, total capital expenses will amount to around 3.5-4.5% of the holding's revenue.

How satisfied are you with your work with foreign partners on current projects and do you plan to widen your cooperation with foreign manufacturers to other potential projects?

Russian Helicopters plays an active part in the system of international cooperation, following current trends in the economy. Overall we are pleased with the results of this cooperation, but we do not think that we have reached any sort of optimal level and are continuing to work towards this.

Cooperation in new helicopter projects is going well, for example with French companies such as Turbomeca and Aerazur. Specifically, Turbomeca engines are fitted to the Ka-226T light multi-purpose helicopter and they will also be fitted to the new Ka-62. The Ka-62 will be equipped with gears from the Austrian company Zoerkler.

Our partnership with AgustaWestland is developing. On a parity basis with the Italian company we have set up HeliVert, a joint enterprise, at the National Helicopter Building Centre in the Moscow suburb of Tomilino. We plan to produce at least 15 AW139 helicopters there per year. In addition, a year ago we announced the commencement of work on a new joint project - the creation of a light 2.5 tonne helicopter. As for future partnership developments, we are actively working on this.

What new developments and products can Russia's military expect from Russian Helicopters?

At present we supply Russia's Ministry of Defence with all types of helicopters necessary for carrying out military missions. These include the Ka-226 and Ansat light helicopters, transport helicopters of the Mi-8 type, the Mi-26 heavy transport helicopter and, of course, the Mi-28NE Night Hunter military helicopter and the Ka-52 Alligator. We are carrying out further modifications to meet the needs of the military, developing a naval version of the Ka-52K, trialling the heavy Mi-26T2 and are carrying out other work together with the Ministry of Defence to diversify the military product range.

Military helicopters produced by the companies in the holding are in demand not only in Russia, but all around the world. Our helicopters are reliable, safe, effective and easy to service.

How would you assess the company's results over the last five years?

Russian Helicopters holds a worthy position among other leaders in the global helicopter industry. In five years helicopter production has increased three fold. In 2012 we demonstrated the greatest rise in sales volumes among the three companies Russian Helicopters, Eurocopter and Sikorsky. Financial indicators have significantly improved. Today, Russian Helicopters is one of the most stable Russian companies, successfully representing the interests of the country and the industry on the global market. The holding company is regularly included in the influential international ratings of the world's largest defence companies. In particular, Russian Helicopters is in the SPIRI's (Stockholm International Peace Research Institute) top 100 of the largest global arms manufacturers for sales volumes of military products in 2011. The holding has significantly worked its way up the rating of the Defense News Top 100 largest defence companies for 2012 for volumes of sales of military equipment, moving into 24th place up from 39th in the previous year. This is linked to the growth in the supply of military helicopters on the domestic market for the Ministry of Defence as part of its state orders, as well as to the increase in demand for Russian military helicopters on the global markets.

As part of preparations for its IPO, the holding has become financially transparent. It operates like a public company, prepares financial accounts in accordance with IFRS and has been given a high international rating. The board of directors includes independent directors and representatives of international companies.

There have been reports in the press recently about your move to a new position in Oboronprom. What will your role be in the corporation?

For me this is not an entirely new position. My professional career has been connected with helicopter building for many years. Before coming to Russian Helicopters, I had already served as a vice president at Oboronprom, managing this particular area and participating in the process of consolidating helicopter assets. My field of responsibility in the corporation will be determined by the industry's and Rostec's management when the corporate procedure for my transfer has been completed. However, I am sure that it will have something to do with helicopters, one way or another. In addition, I will still be on Russian Helicopters' board of directors and will focus my attention on strategic issues concerning the holding company's development. 

Russian helicopters magazine
Issue #1 (36) 2019
2019 year