Aviation Equipment, part of Rostec Corporation, presented its new brand Technodinamika on March 11. Technodinamika is planning to enter the world’s top 5 suppliers of aviation systems and units. The overall volume of investments in the holding’s development will exceed 70 billion rubles.
“Technodinamika is experiencing a new stage of its development. In recent years, much work has gone in to overcoming the lingering aircraft-building crisis. And credit rightfully goes to this holding company,” said Sergey Chemezov, CEO of Rostec Corporation. “Taking into account its new development strategy, the holding is planning to increase its revenue threefold by 2020, that is, from 21 to 70 billion rubles, and rank among the world’s top 5 aviation equipment suppliers. The new brand with international potential will help the company to reach the level of global leaders. Forming a really high-quality working brand means opening a gate to commercial success.”
According to its development strategy, by 2020, the holding intends to become a global supplier of 12 aviation systems, including landing gear; aircraft power supply, safety, and life-support systems; power units; and hydraulic and fuel systems. It is expected that consolidated net returns will increase by almost 4 times, up to 6.4 billion rubles.
The holding is also planning to increase its capitalization from 32.6 to 67.4 billion rubles by 2017. The capital gains will be possible first of all through the development of the holding’s product portfolio, enhanced production facilities, and improved management efficiency. Thanks to new management tools alone, the holding will be able to increase its capitalization by 11 billion rubles. The primary focus will be on the management structure, personnel and corporate culture, introduction of a workflow system, improvement of the decision-making system, and organization of the “operational holding” set-up, brand, and communications.
The holding’s product portfolio will improve due to the implementation of over 200 projects aimed at competitive product design. Enhancement of production facilities will be supported by an investment of 28 billion rubles by 2020. These funds will be allocated for the establishment of engineering and production competency centers, automation through ERP system introduction, and the adoption of the AS9100 quality management system. All these efforts will ideally lead to an increase in labor efficiency by 2-3 times and a twofold reduction of overhead costs.
“We are purposefully operating within a strategy of creating an integrated system, a strategy we developed for moving our plants, which comprise the entire aircraft building industry, into a new level of development,” noted Maxim Kuzyuk, CEO of the holding company. “Moreover, we are currently completing a process of corporate organization that is essential for becoming a top-level domestic supplier and declaring ourselves to be a reliable partner. The rebranding of the holding will undoubtedly ensure an increase in revenues and profit by forming favorable conditions for additional investments and will enable us to position ourselves as a modern innovative company moving to a new level of business and capable of entering the world’s top 5 aviation system suppliers.”
The holding has a good foundation for such global plans. In just two years since the adoption of the new strategy, the holding has implemented a number of substantial reforms: a unique center was established for distributed design, pilot projects were started to create centers of engineering and production competences and to introduce an integrated ERP system, and IT services were centralized. Manufacturing facilities are undergoing renovation, and critical production processes are being certified. The holding’s optimized sales portfolio was complemented with new innovative solutions, the volume and geography of sales were enhanced, and contracts with international leaders were signed.
Other leading aircraft builders affirm the holding’s capacities for large-scale transformations, pointing out that the uniqueness of the holding consists in the very high pace and diversity of changes performed. For joint projects, Technodinamika does not offer improvement of an old system, but rather quite the opposite, developing brand-new solutions that are competitive not only in regard to price but also in terms of engineering parameters. This is one of the main factors companies such as Boeing and Airbus consider when choosing avionic equipment suppliers.
Technodinamika is a company engaged in the design, manufacturing, and aftersales service of aircraft systems and units. In addition, the holding produces components and units for such industry branches as oil and gas, the automotive industry, transportation, and power engineering. Technodinamika includes 35 plants scattered throughout the country – in Moscow, Moscow region, Ufa, Samara, Ulyanovsk, Omsk, Arkhangelsk region, and other parts of Russia. The holding is part of Rostec. Key partners and customers of the holding include United Instrument Manufacturing Corporation, Russian Helicopters, and United Engine Corporation, as well as Aeroflot, S7, Utair, and more.
