Corporate Strategy

The strategic goal is to establish a diversified company operating at a global level in knowledge intensive sectors of industry and high technologies. OBORONPROM's highest priority is to transform poorly structured but strategically important sectors of industry into effective businesses.

Consolidation of Russia’s helicopter manufacturing sector

OBORONPROM Corporation has completed the task assigned to it by the State to establish an integrated structure for helicopter manufacturing.

In the five years that have passed since the launch of the reform of the Russian helicopter industry, the OBORONPROM Corporation has achieved the following key objectives:

  • the company has developed a modern helicopter product range; it has designed and rolled out the mechanism of supporting its helicopters throughout their entire life cycle, and obtained financing for several key projects
  • it has launched international collaboration projects, including the joint venture with Italy’s AgustaWestland, which will assemble the AW139 helicopters in Russia
  • it has developed a program of innovation-oriented development and set up several project teams that will manage various business projects
  • it is implementing a well-balanced and market-oriented development strategy which aims to achieve a threefold increase in Russian Helicopters output and win a bigger share of the international market for Russian-made helicopters
  • it has launched programs to set up several competence centers, build a new structure of the Russian helicopter industry with a high level of corporate, industry-wide and international cooperation, and introduce a world-standard system of quality management.

As part of a radical rethink of its corporate management system, OBORONPROM Corporation has completed the process of integrating its helicopter-making assets within the Russian Helicopters subsidiary.

Consolidation of Russia's engine industry

OBORONPROM Corporation is the integration centre of Russian engine manufacturing. It has consolidated over 80 per cent of the country's aircraft engine making assets.

On the engine-making side of its business, OBORONPROM Corporation has:

  • stepped up its efforts to rationalize its subsidiaries’ business models, cut costs, restructure and develop its assets and clear up the debts of some of its subsidiaries using government support
  • rolled out a program of innovation-oriented development, launched several “breakthrough” engine projects (a new family of engines with 8-19 tonnes thrust, a new engine for the PAK FA fifth-generation fighter, a new engine for a future high-speed helicopter, and new gas-turbine power plans for non-aircraft applications)
  • reached a number of important framework agreements with key customers and business partners (United Aircraft Corporation, Russian Helicopters, Gazprom, energy companies, etc) on coordinated development of high-priority joint projects and cross-industry technology platforms
  • launched public-private partnership programs for several promising engine projects and obtained financial support for these projects.

A wholly-owned subsidiary of OBORNOPROM Corporation called United Engine-Building Corporation (ODK) has been set up to manage those assets.

Solving the problem of internal competition

The creation of integrated structures for helicopter manufacturing and engine building solves the problem of non-productive internal competition for budgetary outlays and the dissipation of limited investment resources across a large number of enterprises and programs.

  • The centralization of marketing policy has enabled an impressive broadening of the market for the group’s products

New management practices

  • Introduction of a modern management system based on program and project management. Design and implementation of corporate project management standards, including the so-called gate process
  • Implementation of lean production practices over the period of 2009-2011, with the cost savings target set at 15 per cent
  • Implementation of coordinated technology policies, specialization and concentration of production facilities, development of cooperation and expertise centres
  • Cooperation with technological leaders. Building alliances on the world's regional markets
  • Diversification of business and extending the area of application of its core technological expertise (such as the joint unmanned aerial vehicle project with Israel's IAI)
  • Creationofafter-sales worldwide service system  and its international certification
  • Implementation of a knowledge management system, creation of a corporate university, continuous education and training, development and implementation of professional standards, formation of a personnel reserve