Goscomvoyenprom Collegium Analyses Implementation of Short-Term Development Plans and Sets Planning Tasks for 2017

A meeting of the Goscomvoyenprom collegium took place on 12 October 2016 under the chairmanship of Goscomvoyenprom Chairman Sergei Gurulev. The meeting was attended by heads of Goscomvoyenprom’s departments, directors of Goscomvoyenprom companies, and their deputies for production, economy and foreign trade (chief economists).
Opening the meeting, Goscomvoyenprom Chairman Sergei Gurulev introduced new director of 2566 Radioelectronic Armament Repair Plant Valery Shatilo, who was elected to the post by the decision of the supervisory board in early October.
Sergei Gurulev wished Valery Shatilo success in his new position, implementation of tasks on dynamic development of the company, competitiveness in providing services in all areas of specialisation for the short- and medium-term, further development of cross-sectoral ties, effective marketing strategy to create favourable environment for export diversification, as well as maintaining positions in traditional markets.
The focus of the collegium’s attention was the results of work carried out in 2016 on the implementation of the Defence Sector and Goscomvoyenprom Development Programme till 2020 (hereinafter referred to as “the Programme”).
It is worth noting that the main task of Goscomvoyenprom’s development in 2016 was the implementation of policy documents for organising activities of Goscomvoyenprom and the defence sector till 2020, creation of conditions for improving the competitiveness of the defence sector and its capabilities to produce advanced weapon systems and military and special equipment that ensure national defence and security at the required level, as well as development of the defence sector and military-technical cooperation in order to achieve this goal.
Projects on the development of weapon systems that are being implemented by Gosсomvoyenprom companies confirm that the specified approaches are right.
In their speeches the participants emphasised that the most important line of the defence sector’s development was to continue reequipment of companies with advanced scientific and industrial equipment. The 2016 budget provided funds amounting to about BYN 230 thousand for the purchase of scientific equipment for AGAT-Control Systems, KB Radar, Display Design Bureau, MNIIRM and VOLATAVTO.
As a result of Goscomvoyenprom’s efforts, the amount of contributions to the national development fund has been reduced, allowing for released resources, including the net income received by the companies in 2016, to be used for the development and productionising of new weapons and military equipment, as well as for the upgrade of the companies’ facilities.
In Q2 2016, 558 Aircraft Repair Plant, Peleng and Minsk Wheel Tractor Plant entered the top 10 most profitable Belarusian joint stock companies.
Attention was drawn to the need to expand the use of the results of fundamental and applied researches. This is what lies at the heart of innovative development, that is, creation and development of new technologies and, as a result, serial production of globally competitive products and sales of these products.
Most of the industrial companies show a positive trend in output increase in the first nine months of 2016. During January–September 2016, industrial companies of Coscomvoyenprom produced goods worth BYN 587.2 million. The growth rate in current prices amounted to 146% compared to the same period last year and the return on sales was 24.9%.
During the meeting, the collegium noted that the established legal framework of cooperation between Belarus and key partners in military-technical sphere met the needs of the parties. Agreements on military-technical cooperation are signed with 28 countries. Commissions (committees) on military-technical cooperation are established and functioning under the agreements.
In January–September 2016, the growth rate of total exports of goods and services by Goscomvoyenprom companies was 75.5%; a positive balance was USD 116.9 million.
Providing positive dynamics of companies’ development at year-end 2016 is the basis for their further development, the main focus of which should be the introduction of new high value-added technologies, creation of new products and growth in export sales.
There are still three months for Goscomvoyenprom companies to regroup and show the relevant positive results.
Given the global arms market requirements to the quality of products, particular attention was given to this issue. In particular, it was noted that the quality of products was among the most important indicators of company’s activities. Improving the product quality largely determines its survival and success in the market, pace of technological progress and innovation, increase in production efficiency, as well as saving all kinds of resources used.
The collegium indicated that one of the ways to ensure the quality of products was to conduct their certification, which allows protecting consumers from unscrupulous manufacturers.
In Europe and America the main criterion when choosing a product is the ISO certificate, which is the best advertisement for a manufacturer.
The resolution of the collegium on the key issue gives a number of instructions and guidelines, specifies dates and officials responsible for eliminating the shortcomings.
In particular, the collegium sets the task of further developing important and promising areas and quite good programmes in robotics, unmanned aircraft systems and the Soldier – Combat Systems equipment, as well as introducing elements of the National Satellite Communication and Broadcasting System in the country and commercialising the project. In addition, the 8th international arms and military equipment exhibition MILEX 2017 and the Independence Day military parade should see not mock-ups but finished examples of light armoured vehicles manufactured at Goscomvoyenprom companies.
In general, it was noted that the available scientific-technical and industrial-technological potential of Goscomvoyenprom organisations and defence sector companies and their close cooperation with scientific organisations and higher education institutions enabled the quick and efficient implementation of integrated projects specified under the Programme.
However, without the development of new high quality and competitive products, there will be no implementation or modernisation and, consequently, development. And this is impossible without an appropriate system that is provided with human resources. The basis of this system should be chief and general designers, design bureaus, research companies. Goscomvoyenprom alone includes eleven such organisations.
In early October, Belarusian President Alexander Lukashenko signed the decree No. 358 “On Priorities of Belarusian Socio-Economic Development for 2017”.
The President set a task of building a complete matrix of personalised quarterly objectives for 2017 that mobilise the entire vertical of power to achieve specific results. The government and regional executive committees are tasked to organise work of leaders at all levels, aiming them at increasing the efficiency of production of goods and services, lowering costs, increasing and diversifying exports, creating new jobs, attracting foreign direct investment, as well as addressing other priorities of socio-economic development of the country.
On this basis, the collegium took necessary decisions to bring key performance indicators to the notice of the companies and identified tasks for the companies on drawing up their development plans in 2017.
The main target of socio-economic development of Goscomvoyenprom companies for next year will be the stepping up of sustainable economic growth factors through the implementation of key priorities (lines), identified in companies’ development plans for 2016–2020.
Taking into account the key objective, the companies should focus on ensuring intensive growth rates of exports of goods (works and services) that significantly outstrip the rate of imports, taking concerted efforts to diversify foreign markets, as well as maintaining the relation between salary growth and labour efficiency increase at a level that provides outstripping labour efficiency growth rate.
In addition, there are plans to increase the profitability of sales in the industry and improve the financial condition of companies, including by reducing finished product stocks and overdue receivables.
The results of the order portfolio formed in 2016 for each company have shown that at Goscomvoyenprom the relevant work is being done energetically and aims for an optimistic plan for 2017.

Translated by Olga Klevko