UEC confident it can sustain production without imported components
MOSCOW. April 25 (Interfax) - United Engine Corporation (UEC), a division of Russian state corporation Rostec, is capable of sustaining production of its model line on its own, without imported components, the CEO of UEC Engineering, Andrei Vorobyov told reporters.
"We can make everything ourselves, virtually 100%, with domestic components. In general, UEC gas turbine sets, if we're talking about the main equipment, are completely Russian made. Auxiliary systems, instrumentation and control systems, sensors, our industry is perfectly capable of replacing all this. Outfitting units with imported components is a vestige of globalization. Now what's important is a general tone of support for the domestic producer and confidence in the components that our producers have, plus we need to agree on price policy," Vorobyov said.
"Perhaps for some assemblies we haven't reached those strength characteristics and the quality that the alternatives that were used until now have, but with time we can localize everything. This includes improving the quality of those assemblies that are now problematic for us," he said.
"This model is not very good for business in general, because we, like the rest of the world, need to strive to increase efficiency, concentrate on the most research-intensive, exclusive products. We should produce only that which is exclusive, what we anchor the customer with. The rest is a matter of outsourcing. We cannot develop in this paradigm right now, unfortunately, we need to solve operational problems. But this is not forever. In the short term, in the current circumstances the company must concentrate on more mass products," Vorobyov said.
"Right now in the stress scenario we need to switch to fewer products with the maximum production efficiency, more serial production, eliminate high assortment by standardizing approaches. Such an approach can weed out the line to the simplest, most profitable product. We need to take a tougher approach, fold up some long-term initiatives, do a very parched investment program, leave only that which is needed to increase efficiency at the moment," Vorobyov said.
"At the same time, one must understand that engine manufacturing is an industry with a very long lead to the product. The average timespan for putting an engine into serial production is eight years, although new technologies accelerate the launch of serial production. If we stop right now in the development of equipment or services, it will throw us out of the competitive environment. We can't relax in the sanctions situation, we must be ready for market competition both in Russia and on the foreign market," Vorobyov said.