Goscomvoyenprom Analyses Implementation of President’s Decree and 2016 Half Year Results

At the collegium meeting, which took place at the 558 Aircraft Repair Plant on 29 July 2016 and was headed by Goscomvoyenprom Chairman Sergei Gurulev, it was noted that Goscomvoyenprom companies had taken into account the requirements of the Belarus President’s Decree No. 78 dated 23 February 2016 “On Measures for Improving the Efficiency of the Belarusian Socio-Economic Complex” in refining the 2016-2020 development plans.
To implement this task, Goscomvoyenprom organised preparation and consideration of refinements to business plans for development for 2016 and plans for the development of companies for 2016-2020.
Additional sections that provide for cost cutting efforts in the production of goods, works and services were included in companies’ plans.
In addition, plans for the development of manufacturing and research and manufacturing companies identified cost reduction targets in accordance with the methodology developed by the Ministry of Economy and approved by the Government of the Republic of Belarus.
An individual approach is taken – cost cutting measures and indicators are determined taking into account the specific character of companies’ business activities and their real capabilities.
The high quality implementation of planned activities will allow the companies to carry out measures for the improvement of production processes, energy saving, import substitution, improvement of raw materials and components procurement, optimisation of companies’ structure and personnel, and reduction of overhead costs.
The greatest success in cost reduction in the first half of 2016 was achieved by 558 Aircraft Repair Plant, 140 Repair Plant, Peleng, AGAT-Control Systems and VOLATAVTO.
On the whole, the plans suggest that in 2016-2020 Goscomvoyenprom companies will achieve a reduction in costs of 5.5-6% relative to 2015.
In his State of the Nation Address, which was delivered on 21 April 2016, Belarusian President Alexander Lukashenko said that reduction of production costs is a strategic area for improving the competitiveness of the economy. He stressed that the government bodies were assigned a task of reducing production costs by 25%.
The Gosсomvoyenprom collegium also analysed the results of companies’ performance in the first half of 2016 and achievement of indicators outlined in development plans.
The most of Gosсomvoyenprom companies achieved indicators of business development plans in January-June 2016.
The growth rate of goods manufactured by the companies amounted to 133.9% against the same period last year, while return on sales stood at 24.3%.
In January-June 2016, Gosсomvoyenprom companies made a net profit of 1.6 trillion rubles
Analysis and evaluation of how the export targets for the first half of 2016 are implemented confirm that, in general, the companies reach the targets. The export target outlined in business plans for the first half of the year was exceeded by 25%.
Minsk Wheel Tractor Plant, Peleng and AGAT- Control Systems succeeded in the high quality implementation of business plans in the first half of 2016.
Implementation in the first half year 2016 of the planned activities in the sphere of military-technical cooperation has ensured maintaining favourable conditions for the Belarusian defence companies to secure a foothold in traditional arms markets and increase their presence there, as well as allowed the companies to make productive efforts in increasing exports of goods and services.
However, the agenda still includes a priority task for special exporters to increase the share of products manufactured by Gosсomvoyenprom organisations and defence companies while reducing the proportion of the Defence Ministry’s property in the total exports of specific goods (works, services) in foreign markets.
As was noted during the meeting, the focus should be placed on joining the efforts of the special exporting companies, designers and manufacturers of military products for the development of export-oriented and competitive products based on industrial cooperation with Gosсomvoyenprom organisations and defence companies, coordinating their efforts in promoting military products in foreign markets, as well as enhancing the competitiveness of Belarusian-made products based on the price to quality ratio.
Projects on the development of weapon systems that are already being implemented by Gosсomvoyenprom companies confirm that the specified approaches are right.
At the same time, the priority of newly developed products (production of new products) is given largely to those companies that have developed stable sectoral expertise (558 Aircraft Repair Plant, Peleng, Minsk Wheel Tractor Plant), which allows them to develop new systems (improve existing ones) and extend the range of marketable products.
The work done both in the course of implementation of state programmes and individual projects using special Gosсomvoyenprom’s funds has laid the foundations for sci-tech, technology and production base and regulatory framework for the development, testing, mass production and use (operation) of advanced unmanned aircraft systems and communication systems.
The Goscomvoyenprom collegium recognised that the Special-Purpose Multi-Role Unmanned Aircraft Systems subprogramme included in the state scientific and technical programme UAS and Technologies had been fully implemented (in terms of research and development work), and further work on unmanned systems is planned to continue in 2016-2020 under the integrated action plan for the development of special-purpose UASs using companies’ own funds. This will allow establishing unified management and control of activities on the part of Goscomvoyenprom, systematising efforts in the interests of specific customers, as well as focusing companies’ efforts on the development of marketable unmanned aircraft systems.
To achieve this goal, it is planned to prepare an integrated action plan for the development of special-purpose UASs, which will identify promising areas in the development of special-purpose UASs, provide for measures to improve the quality of manufactured UASs and upgrade them to improve the specifications, as well as efforts on cooperation and effective interaction with potential developers and manufacturers of UASs, their components and payloads.
In addition, work will continue to organise effective activities of the functional department specialising in UASs, which was established at AGAT-Control Systems.
Production of communication systems is underway within the framework of the state programme approved by the President’s Decree No. 420.
AGAT-SYSTEM was assigned a task of taking effective steps before the end of 2016 to complete research and development work, improve problematic areas and prevent disruption of related projects due to late delivery of communication systems to a customer.
Goscomvoyenprom believes that the groundwork done during January-June 2016 in the implementation of indicators outlined in business plans allows Goscomvoyenprom companies reckon on achieving annual targets and positive dynamics of socio-economic development, and this year’s results will be the basis for planning for 2017.