Concern "Kalashnikov" is buying up companies

The concern acquires a controlling stake in the Kingisepp Machine-Building Plant.
Concern "Kalashnikov" plans to acquire a controlling stake in the group of companies of the Kingisepp Machine-Building Plant (KMZ). The enterprise is engaged in the production and repair of diesel engines and gas turbine units, including mastering the service of turbines produced in Ukraine. According to "Kommersant", with this purchase, "Kalashnikov" expects not only to expand its shipbuilding cluster, but also to arrange the production of engines for ships.

About Kalashnikov's decision to buy out a controlling stake in the KMZ group of companies (including Dieselgipservice LLC and Kingisepp Machine-Building Plant LLC) told Kommersant a source in the shipbuilding industry. The transaction is still underway, but the clearance is already under way, the interlocutor says, refusing, however, to name its amount. In Kalashnikov, the fact of negotiations with Kommersant has been officially confirmed: "This is part of our strategy and the expansion of competencies in the service - including, it is a question of synergy in shipbuilding."

KMZ is engaged in the production, repair and supply of diesel, gas-turbine and deck equipment of dual purpose. He acts as the lead contractor of a number of contracts under the state defense order, and also works in cooperation: for example, he delivered the anchor and mooring equipment for the large landing ship of the project 11711 (Ivan Gren) to the Baltic shipyard Yantar (Kaliningrad) and the oceanographic research vessel project 22010 ( code "Crew"). In addition to manufacturing its own products, KMZ repairs and maintains domestic and foreign ship gas turbine and diesel engines, including from Ukraine (produced by Zorya-Mashproekt). And in the autumn of 2017 the plant underwent a comprehensive audit, confirming the possibility of manufacturing marine diesel engines of the M-50 and M-500 families for the needs of the Russian Navy and the FSB border service. Note that the repair of the same engines is going to deal with the Feodosia ship-mechanical plant (see "Kommersant" on December 7, 2017). The industry source says that it will be a question of "division of labor": a Crimean enterprise will repair diesel engines for the Black Sea Fleet, and the rest of the order can be taken back by a St. Petersburg company. The main issue is the repair of engines that are already in operation in the Russian Navy, the source said.

As Kommersant's source in the defense industry noted, the purchase of KMZ is related to the concern of the concern "to develop a new line of business". Another source of Kommersant emphasized that in this case it is a matter of developing a Kalashnikov shipbuilding cluster, but with an emphasis on the full cycle. Recall that in 2016-2017 the concern received the Rybinsk shipyard and the SZ Vympel, buys the Nobel Brothers Shipyard, is negotiating on the Sosnovsky Shipyard. In addition, it is expected to enter the state corporation "Rostekh" (with further transfer to the management of "Kalashnikov") Feodosia plant "More".

Director of the Center for Analysis of Strategies and Technologies Ruslan Pukhov believes that the current state of the shipbuilding industry plays into the hands of the Kalashnikov concern and its management. "The efficiency of the United Shipbuilding Corporation is now low, which causes discontent among all customers, including the Defense Ministry," the expert said, noting that in such a situation, private players have a real chance to gain a foothold in the market.