Metalworking equipment suppliers starting to open production facilities in Russia - expert

CHELYABINSK. June 8 (Interfax) - The trend towards the transition of companies from the purely trading sector to the manufacturing sector is notable in the Russian metalworking equipment market, Vitaly Shegurov, deputy president of the Stankoinstrument association, and director and co-owner of the PromArsenal Company in Chelyabinsk, said during an online speech at the Second "From Import Substitution to Technological Sovereignty" All-Russian Forum in Chelyabinsk on Thursday.

"We are members of the National Union of Manufacturers and Suppliers of Metalworking Equipment. There are about 60 participating companies, of which 5-6 already have their own production. This is a very important key point: companies that are engaged in commerce, the sale of equipment and tools, are moving to the production sector, because they feel that it can be very interesting," Shegurov said.

"Working within the framework of Decree 719 [The Decree of the Government of the Russian Federation dated July 17, 2015 N719 "On confirmation of the production of industrial products on the territory of the Russian Federation"] allows you to get a certain advantage with regard to shipments," he added.

PromArsenal is engaged in the supply of metal-cutting tools and equipment, and in the fall of 2021, with the help of a loan from the Industry Development Fund, launched its own production of small-sized tools for various industries, Shegurov said.

Shegurov explained to Interfax that this type of business model, where a company simultaneously produces and supplies metalworking tools, is effective, but only in certain market segments.

"We, as they say, can feel the market "with our fingertips:" what needs to be produced, which items are profitable to produce. For example, in the field of standard tools, we do not compete with Chinese manufacturers, as there is very little added value. Our forte is the production of semi-specialized and specialized tools, and their design," he said.

As reported, PromArsenal, with the help of a preferential loan from the Industrial Development Fund, put into operation the import-substituting production of small-sized tools with a capacity of 25,000 pieces per year. Investments in the creation of a new workshop totaled 174 million rubles, of which 80 million rubles was the preferential loan, issued under the Machine Tool Building program and spent on the purchase of equipment. In particular, PromArsenal intended to replace up to 7% of imports of these instruments into Russia within two years from the start of mass production, and up to 20% within five years.