Rostec considers the launch of licensed production of ammunition in Indonesia

Sergey Abramov, Industrial director of Rostec weapons cluster, commenting on the cluster strategy adopted in the beginning of April 2017, states that Techmash (part of Rostec) is considering the possibility of launching licensed production of ammunition in Indonesia.

In the state corporation contour, Techmash (part of weapons cluster) is the concern that works in the field of special chemistry and ammunition production. The concern’s enterprises produce goods for governmental needs and fulfill state defense order.

Besides, Techmash is actively expanding its military and technical cooperation.Techmash is currently considering the question of launching licensed production of ammunition in Indonesia, meaning the production of ammunition for heavy armored vehicles purchased in the Russian Federation, particularly of the 30 mm and 100 mm caliber artillery shells.

Techmash has successful experience of launching licensed production of ammunition abroad. For example, in 2014 Techmash together with Rosoboronexport signed an agreement for the transfer of license on the production of Mango armor-piercing discarding sabots.

We would like to remind that on April 5, 2017, the Board of the Rostec State Corporation adopted the weapons cluster strategy that includes the development of the key Russian military enterprises. The main target is the growth of the profit of the holdings and enterprises of the cluster with the average annual increment by 12.1% (from 2015 to 2025 without new assets transferred into the cluster). In terms of entering the smart markets, the cluster aims at aggressive growth of civilian products and the increase of export. If the strategy is realized successfully, the cluster’s revenue will, in monetary terms, be around 700 billion rubles, and net profit will be more than 50 billion rubles.

State corporation Rostec is a Russian corporation established in 2007 to promote development, production and export of hi-tech industrial products for civil and defense sectors. It brings together over 700 entities which currently form 9 holding companies that operate in the defense-industry complex and 6 that are involved in civil sectors, as well as 32 direct management organizations. Rostec portfolion includes such famous brands as AVTOVAZ, KAMAZ, Kalashnikov Concern, Russian Helicopters, VSMPO-AVISMA etc. Rostec’s organizations are located in 60 constituents of the Russian Federation and supply goods to over 70 countries worldwide. Rostec’s consolidated revenues in 2015 reached 1 trillion 140 billion rubles. Average salary in the Corporation in 2015 was 41 000 rubles, the Corporation’s tax payments to all budgets were over 160 billion rubles. According to the new Rostec strategy, the main aim of the Corporation is to provide Russia’s technological advantage on the highly competitive world markets. The amount of investments planned for the development up to 2025 is 4.3 trillion rubles.

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