United Instrument Manufacturing Corporation

Background

The governmental program of the Russian Federation “Development of Electronic and Radioelectronic Industry for 2013 – 2025” defined that “strategic, large and R&D organizations participating in cooperation chains will be most efficient in the radioelectronic sector”.

The program launched the process of integrating industrial enterprises and R&D organizations into large holdings. The example is holding Russian Electronics (Roselectronica) which was merged with Rostechnologia; and now it consists of about 100 enterprises of radio and electronic industry ^[8]. Another case was Concern “Radioelectronic Technologies”, established in 2009 within State Corporation Rostechnologii, which consists of over 90 industries ^[9]. The next phase of merging the existing holdings took place in 2012-2013, when a number of large enterprises were transferred to their auspices ^[10][11]. Founding one more large research and production company, United Instrument Manufacturing Corporation, should finalize the process of restructuring the sector. On May 8, 2013, an order was issued by the President of Russia Vladimir Putin, No. Pr-1056, “Establishment of a United Holding in the Area of Radioelectronics”. The next step was the order by the President of Russia “Asset Contribution of Russia to State Corporation Rostechnologii” and Amendments to the List of Strategic Enterprises” of January 14, 2014” No 20. In accordance with the Order, State Corporation Rostechnologii (Rostec) received 100 percent of the shares of some open joint-stock companies from the Russian Federation, including "Radio Manufacturing Concern Vega (Moscow), "Concern ”Sozvezdie” (Voronezh), and “Control Systems” (Moscow) that belong to the state. Federal State Unitary Enterprise, Central Research Institute of Economics, Informatics and Control Systems, was reorganized and became an open joint-stock company. Its shares were also handed over to Rostec. The same order excluded the enterprises transferred to Rostec from the List of strategic companies and strategic joint-stock companies^[13]. All relevant changes were approved by the Statute of the Government of the Russian Federation of April 21, 2014, No 365.

On approval of the Supervisory Board of Rostec, concerns Sozvezdie and Vega, company Control Systems and Central Research Institute of Economics, Informatics and Control Systems joined United Instrument Manufacturing Corporation.

Objectives

When commenting on the new holding, the head of Rostec Corporation Sergei Chemesov noted that uniting the enterprises of the sector and creating of so-called vertically integrated units would allow completing the reforms and enhance the efficiency of the whole radioelectronic sector of defense industry. Rostec will have to concentrate intellectual and technological resources of different organizations working in the area of communication and computerized control systems thus bringing them to a new level.

Rostec announced that the new holding would allow comprehensive transfer of the Armed Forces of Russia to digital communication systems and computerized control and radioelectronic warfare systems. It will also supply the newest radioelectronic equipment to the Armed Forces of Russia and make its share 79% by 2020.

The Head of United Instrument Manufacturing Corporation Alexander Yakunin highlighted that in order to “enhance the efficiency of the holding, close cooperation with other industries of radioelectronic sector of Russia would be established, and a unified control system would be developed” ^[17]. He noted that there had been no cooperation of this kind, what resulted in overlapping competences (for instance, each concern had its own telecommunication solutions, radioelectronic hardware, computerized control systems and cyber security units), given almost no exchange of technologies. According to Mr. Yakunin, the holding will help to reduce the key threats to Russian information systems. In particular, he means preventing Russia from the access to advanced information technologies, pressing Russian manufacturers from computer, telecommunication and communication markets etc. Besides, the holding will work on information, password and key security, as well as on combating cyberterrorism, cybercrime, and malware inflicting damage to information systems.

Among all the objectives of United Instrument Manufacturing Corporation, Alexander Yakunin mentioned enhancing cost-effectiveness of enterprises and competitiveness of products, as well as increase of the share of civilian goods up to 40 percent. In 2013, this figure made from 3 to 18% in different holdings. The enterprises of the holding have been mainly concentrating on the needs of defense industry.

Rostec noted that the united corporation should optimize the operation of low-profit (9 units) and loss-making (6 units) companies. One of the priorities of the corporation is State Defense Order, whereas some of the enterprises of United Instrument Manufacturing Corporation used to have troubles with it.

In 2014, United Instrument Manufacturing Corporation fulfilled over a thousand contracts and associate agreements in the framework of State Defense order for the total sum of about 100 billion RUB. The holding supplied almost 60% of all communication equipment, computerized control systems and radioelectronic warfare hardware for the Russian Army and other military and security forces.

Key projects

“We procure advanced hardware and establish production facilities allowing so-called „clean room” or vacuum productions, said the Director General of the corporation Alexander Yakunin in summer 2014. “For example, such a project is being implemented by Moscow Radio Technical Institute under Russian Academy of Science, which is part of concern Vega, and which has establishing mass production of 3D microsystems for the first time ever in Russia. They manufacture high-density compact electronics of the new generation that allows reducing the size and weight of different devices retaining their quality”^[22]. According to mass media, the new process line will be commissioned in 2016.

In 2014, United Instrument Manufacturing Corporation also confirmed that it was developing Russian central processors Baikal for advanced computing equipment together with a group of companies “Т-Platform” and Rosnano. A representative of the company announced that UIMC would produce telecommunication and computing hardware with those processors^[24].

The same year, the corporation informed about a project on developing “intellect” for groups of robots. The representative of the company told the technology would be capable of helping an operator to control a group of different robots on land, in the air or in the sea. At the same time, the software can replace the operator, and the robots would arrange resources within a group all by themselves^[25]. The interim results of the project were demonstrated to the Chairman of the Government of Russia Dmitry Medvedev at the exhibition Russia Arms Expo in Nizhnii Tagil late 2013, and to the President of Russia Vladimir Putin at the meeting of Advanced Research Fund in Tula^[26] early 2014.

In July 2014, the solution was showcased at Innoprom exhibition in Ekaterinburg, where robots with the advanced software demonstrated the capability of independent interactions at the battlefield, independent selection of positions, identification of different objects (helicopter, tank, other machinery), evaluation of the threat from the targets and prioritizing attacks^[27].

Enterprises of the corporation are directly involved in implementing the key projects on developing advanced military machinery. In particular, such Russian armored vehicles as tank Armata, infantry combat vehicle and troop carrier Kurganets-25», troop carrier Boomerang, and armored car Typhoon have software developed by concern Sozvezdie. New communication, navigation and control hardware allows the crews seeing the tactical environment on-line and interacting with the command centers and other units within a unified battle control system^[28]. Nizhnii Novgorod Research and Production Enterprise Polet has developed communication system for the 5th generation fighter Т-50, which is superior to modern foreign peers in some respect. For example, the system is capable of transmitting huge bulks of data via radio channels (voice, video, monitoring, and reconnaissance information) in real-time mode with the speed of up to 34,3 Mbit/s. “The software consists of modules,” told Alexander Yakunin. “We can fine tune it virtually to all types of aerial vehicles. Besides fighters, the software can be installed in transport and long-range aviation, UAVs of all classes, as well as helicopters, including the multiple purpose Ка-62»^[22].

In 2014, the corporation started supplying the Russian Army with such advanced radioelectronic warfare hardware as jamming systems “Borisoglebsk 2”. “Radioelectronic warfare equipment is being upgraded on a large scale for the first time ever during the last 20-25 years,” said Deputy Director General of United Instrument Manufacturing Corporation Sergey Skokov. “Recent times, our concern Sozvezdie has developed and supplied jamming stations predominantly working autonomously. In 2014 – 2015, we supplied over a dozen of such systems to the military, from Blagoveshensk and up to Kaliningrad.”

“Borisoglebsk 2” is the core of radioelectronic warfare equipment. It is intended for radio reconnaissance and jamming short and ultrashort wave land and airborne communication systems, subscriber voice terminals for mobile and trunked communication at tactical and field control levels. The system is based on three types of jamming stations and a control station mounted on armored vehicles MT-LBu, conventional vehicle for land-based radioelectronic warfare hardware. Each system includes up to nine machines^[29].

Major projects of United Instrument Manufacturing Corporation include 6th generation military communication systems^[30], computerized tactical control systems, and modern communication systems for aviation and the Navy^[31][32], as well as development of up-to-date radar systems for reconnaissance and monitoring, including long-range airborne radars А-50U and А-100^[33].

Joint-stock company "Radio manufacturing concern Vega"

· Profile: reconnaissance and airborne surveillance systems; space radars for land surveillance; systems with UAVs; air balloons for different purposes; air traffic, navigation and landing systems; medical equipment and hardware etc.

· Number of enterprises and organizations in the company: 21

· Employees, total: 11,5 thousand^[34].

· Total returns (2013): 24 billion RUB

· Net income (2013): 445 billion RUB

Joint-stock company "Concern Sozvezdie (Voronezh)

· Profile: development and production of intellectual control and communication systems for radioelectronic warfare, special-purpose machinery, civilian and telecommunication products.

· Number of enterprises and organizations in the company: 21

· Employees, total: 17,3 thousand^[35]

· Total returns (2013 г.): 36,3 billion RUB

· Net income (2013 г.): 1,75 billion RUB

Joint-stock company ”Control Systems” (Moscow)

· Profile: development, production, repairs, and maintenance of computerized governmental, army, and military service control systems.

· Number of enterprises and organizations in the company: 15

· Employees, total: 10 thousand^[36]

· Total returns (2013 г.): 17,2 billion RUB

· Net income (2013 г.): 631 million RUB

Joint-stock company ”Central Research Institute of Economics, Informatics and Control Systems” (Moscow)

· Profile: system-wide institute for information, process, economic and analytic research, which has worked for defense industry for 45 years. The institute is a leading R&D unit involved in the key projects on updating, modernizing, and developing technical solutions for control and communication systems in defense industry^[37].

· Employees, total: about 800

· Total returns (2013 г.): 5,6 billion RUB

· Net income (2013 г.): 766 million RUB

Joint-stock company "Moscow Design Bureau “Compass”

· Profile: development and manufacturing of navigation equipment for civilian and military airborne vehicles and space crafts.

Joint-stock company "Research and Production Facility “Radiosvyaz”

· Profile: development and production of satellite and tropospheric communication stations, satellite navigation hardware GLONASS/GPS; development and production of phase navigation systems.

Joint-stock company “Solnechnogorsk Instrument Manufacturing Plant”

Radio manufacturing concern Vega

Management structure of the holding:

· JSC "Concern Vega (Moscow)

· JSC"Research Institute “Kulon” (Moscow)

· JSC"Design Bureau “Luch” (Rybinsk, Yaroslavl region)

· JSC“Rybinsk Instrument Manufacturing Plant” (Yaroslavl region)

· JSC"Research and Production Enterprise “Rubin” (Penza)

· JSC"Chelyabinsk Radio Manufacturing Factory “Polet”

· JSC"Engineering and Marketing Center of Concern Vega (Moscow)

· JSC"All-Russian Research Institute “Etalon” (Moscow)

· JSC“Moscow Research Institute of Communications”

· JSC"Research Institute Vector (St. Petersburg)

· JSC"Pilot Plant “Integral” (St. Petersburg)

· JSC"Plant “Energy” (St. Petersburg)

· JSC”Dolgoprudnoye Design Bureau of Automation” (Dolgoprudny, Moscow region)

· JSC“Moscow Radio Technical Research Institute”, winner of Red Banner of Labor award

· JSC“Moscow Radio Technical Institute of Russian Academy of Science

· JSC“Research Institute of Industrial Technologies and Automation” (Zelenograd, Moscow)

· JSC“Kaluga Research Institute of Telemechanic Systems

· JSCResearch Institute “Argon” (Moscow)

· JSC"Special Design Bureau “TOPAZ”(Moscow)

· JSC“Research Center of Electronic Computing Equipment (Moscow)

· JSC"Research Coordination Center “New Technologies” (Moscow)

Concern “Sozvezdie”

Management structure of the holding:

· JSC"Concern “Sozvezdie” (Voronezh)

· JSC“Almaz”(Rostov on Don)

· JSC"Voronezh Research Institute Vega

· JSC"Voronezh Central Design Bureau “Polus”

· JSC"Plant “Tambovapparat” (Tambov)

· JSC“Development Office” (Moscow)

· JSC"Design Bureau “Selena” (Krasnodar)

· JSC“Krasnodar Instrument Manufacturing Plant “Kaskad”

· JSC“Research Institute of Communication and Control Systems” (Moscow)

· FSUE Research Institute of Electronic Equipment (Voronezh)

· JSC"Research and Production Enterprise “Volna” (Moscow)

· JSC" Research and Production Enterprise “Start” (Veliky Novgorod)

· JSC“Ryazan Radio Manufacturing Plant”

· JSC"Tambov Plant “October”

· JSC"Tambov Plant “Revtrud”

· JSC"Tambov Research Institute of Radio Equipment “EFIR”

· JSC“Yantar” (Vladikavkaz)

· JSC“Electrosignal” (Voronezh)

· JSC"Plant “Luch” (Ostashkov, Tver region)

· JSC“Slavgorod Radio Equipment Plant” (Slavgorod, Altai region)

· JSC“Yaroslavl Radio Manufacturing Plant (Yaroslavl)

Vertically integrated unit Control Systems

Enterprises of the vertically integrated unit:

· JSC“Control Systems” (Moscow)

· JSC ”Research Institute of Automatics named after Academician Semenikhin, winner of the Red Banner of Labor award (Moscow)

· JSC"Concern “Systemprom” (Moscow)

· JSC"Research and Production Enterprise “Polet” (Nizhny Novgorod)

· JSC"Research and Production Association “Impulse” (St. Petersburg)

· JSC“Information Telecommunication Technologies” (St. Petersburg)

· JSC“Research institute of Information Technologies” (Tver)

· JSC"Federal Research and Production Association “Mars” (Ulyanovsk)

· JSC“Kimovskii Radioelectromekhanichesky Zavod” (Tula region)

· JSC"Research and Production Center “Vigstar” (Moscow)

· JSC"Research Institute “Masshtab” (St. Petersburg)

· JSC" Research Institute “Rubin” (St. Petersburg)

· JSC“Institute of Electronic Control Machines named after I.Bruck” (Moscow)

· JSC"Research Institute of Computerized Systems and Communication Complexes “Neptun” (St. Petersburg)

· JSC"Research and Production Complex “Krasnaya Zarya” (St. Petersburg)

Expansion of the corporation

Management of Rostec have also made a decision to hand over three enterprises of Rostec to the direct management of United Instrument Manufacturing Corporation: JSCMKB “Compass”, Research and Production Enterprise “Radiosvuaz”, and OAO “Solnechnogorsk Instrument Manufacturing Plant”. Rostec highlighted that other enterprises can be included in the holding.