Chemezov: “KAMAZ's indicators will be lower than planned, taking into account large investment programme”
About the auto giant of Naberezhnye Chelny
KAMAZ may end the year 2020 with financial results lower than planned, head of Rostec state corporation (it owns 47,1% of KAMAZ) Sergey Chemezov told reporters on 7 December. He explained deviations from the results by the large-scale investment programme of the plant.
“It is obvious that taking into account large investment programme, KAMAZ's indicators will be lower than planned. Maybe, we will reduce the investment programme, if it is very difficult. If indicators for the year are acceptable, we will leave as planned," Chemezov said.
The initial business plan of KAMAZ for 2020 provided for the sale of 35,709 thousand cars, of which 29 thousand were planned to be sold on the Russian market, the rest — on the foreign market. Investments in the development of production for this year were planned for the amount of 14,1 billion rubles. Net profit was expected to reach 288 million rubles with a revenue of 204 billion rubles.
The company did not report on the adjustment of the business plan in terms of sales in connection with the “coronavirus” crisis, Interfax reports. Moreover, Director General of KAMAZ Sergey Kogogin previously said that the company was above the plan for the first half of the year. However, after that, he said that the investment programme for 2020 would be reduced by a third, to 8-10 billion rubles.
Chemezov also spoke about the situation with sales of cars of the K-5 line, developed jointly with Daimler AG (the German auto giant owns 15% of KAMAZ). “There were plans to sell 1 thousand cars, while we are reaching 700, the market in the class of these trucks has fallen by 30%, so it is difficult now," he said. When asked if Daimler had offered to buy a stake in KAMAZ, Chemezov said no.
A different dynamic is observed at another large automobile enterprise of Rostec — the manufacturer of passenger cars of AvtoVAZ. Chemezov expects that the company, despite all the hardships of the “coronavirus” year 2020, will finish the year with a profit. Chemezov decided not to assess this profit, calling it “minimal”. In 2019, AvtoVAZ received a net profit under Russian Accounting Standards of 385 million rubles.
“In the summer, due to the support of the state — there was a state contract for 16 thousand cars — AvtoVAZ rose. Since July, their sales have been growing every month, which partially compensates for the spring losses. We expect that the year will be profitable, but, of course, the company is unlikely to achieve the same profit as in 2019, as sales are going to fall by about 7%. That is, there will be some profit, but minimal," Chemezov said.
Rostec owns a 33,8% stake in AvtoVAZ through the Dutch Alliance Rostec Auto B.V., and Renault owns 66,2%. In June 2019, it was reported that Rostec would reduce its stake in the joint venture to 25%, selling part of the Renault stake, and invest the proceeds in the development of AvtoVAZ. Now, as Chemezov said, Renault is asking to postpone the issue of selling the share to next year, but “this matter can only begin to move forward when the company moves to Russia”, that is, the parent company will change its registration from Dutch to Russian.
Chemezov also noted that the issue of moving is related to the company's old debts of 20 billion rubles. Ten billion rubles that AvtoVAZ owes to OAT (the largest manufacturer of components, part of Rostec), Chemezov offered to actually “forgive” the automaker.
Rostec expects that the Sukhoi Superjet New — an import-substituted version of the short-haul Sukhoi Superjet 100 with a domestic engine and components — will appear in 2024. According to Chemezov, the development of the aircraft will cost a total of 120 billion rubles, and possibly less. In the new aircraft, about 97% of foreign components will be replaced with Russian ones. The best option, in his opinion, will be an airliner with a capacity of about 100 passengers.
At the same time, Chemezov assured: Rostec continues to work with Western suppliers of components for civil aircraft, and no Russian aircraft manufacturer has received notifications about the termination of cooperation due to sanctions. Earlier, the refusal of Western companies to supply systems for Russian civil aircraft was reported in the ministry of industry and trade of the Russian Federation — however, without specifying which aircraft are in question.
As for military aviation, the first serial Su-57 fighter with the first stage engine will be handed over to the Russian defence ministry by the end of the year. Now, according to Chemezov, the first 10 aircraft of the experimental batch have already been supplied.
Besides, Rostec is actively working on the concept of a promising single-engine aircraft in light and medium classes, which can be made in manned and unmanned versions. The defence ministry has not yet placed an order for it, but Chemezov said that he is convinced of the feasibility of such development — possibly for export promotion.
About other military technologies
UAVs belonging to Rostec concern, Kalashnikov, have been successfully tested in Syria. “They have proven themselves well, and the defence ministry is happy to purchase them. And not only intelligence, but also combat ones," Chemezov said.
At the moment, we know about several combat robots developed for the Russian army, Interfax notes. Among them — Uran-6 sapper robot, Uran-9, Nerekhta, Soratnik, Platform-M and Argo combat robots. According to the Russian defence ministry, the Uran-6 and Uran-9 robots were used during the Russian military operation in Syria.
At the same time, Chemezov acknowledged a problem with the battery for the Sotnik combat exoskeletons, which may become part of the military's combat equipment in the future.
“They are working on this issue. Maybe we will buy something more," he said. “The customer has not yet approved the official requirements, so all these works are now of an initiative nature. I want to agree with you that there is a problem with the battery. Although in the version in which this model is created today, it helps the soldier a lot," Chemezov said.
Such exoskeletons should allow a soldier to carry up to 60 kg of cargo, reduce energy costs when running and walking by 15%, and reduce the load on the musculoskeletal system by 50%. The accuracy of a soldier with such an exoskeleton increases by 20%, Chemezov said.
About pharmaceutical industry
Rostec intends to sell its 32,4% stake in Sintez, one of the largest pharmaceutical companies in Russia, Chemezov said. The buyer will be AFK Sistema, which has the main stake (56,2%). The portfolio of Sintez includes about 300 kinds of products.
Chemezov also announced his intention to buy a controlling stake in the company Fort, which produces flu vaccines. Now Rostec owns a 25,01% stake in Fort. 50,01% of Fort belongs to the structure of Marathon Group PLC, MF-Fort, 24,9% — to Megard Group of Anton Katlinsky.
“It (Fort company — editor's note) is now on the rise as the main manufacturer of the four-valent flu vaccine, the demand for which is increasing every year," said Chemezov.