Engineering
|
Russia has had important engineering and manufacturing industries since the late 18th Century, particularly with cannons, ships and railways.
Engineering and electricity production were priorities for the communists (see Infrastructure for more on electricity). We discuss the demand for oil, gas, mining and chemical production here: Oil, gas and chemicals. From the production of manganese steel to welding titanium for aeroplanes, metallurgy has been a Russian engineering strength. Despite the virtual disappearance of civil aerospace production (after once being the second largest producer in the world), Russia retains an aerospace industry and is investing in new, less fuel hungry models to rebuild its position. Russia builds the world's largest cargo carrying aircraft and has shares in Airbus – something that demonstrates their strategic positioning. |
Since the Russian ruble collapsed to about a fifth of its previous value against the pound in 1997, it has been severely undervalued. Local production is quite competitive in terms of price and since 2004, and particularly since 2011, manufacturing has been a larger driver of the Russian economy, than oil production. Russia is now one of the fastest growing manufacturing economies in the world, with only China, India and Germany ahead. However, because of the huge economic dislocations during the 1990's, Russian companies did not invest in new products. Although the quality of Russian products has improved significantly, the design and technology are often very 1970's.
It's important to note that besides the large scale infrastructure development by the government and utility companies, major Russian companies are planning to build six large automotive plants, rebuild the aircraft industry, and build upon strengths in the substantial opto-electronics industry. |
Manufacture of transport and automotive equipment
|
With manufacturing everything from space craft to dump trucks for open cast mining, Russia has a substantial transport manufacturing industry. At 3 million units a year, automotive sales of locally produced and imported vehicles, are second only to Germany.
Local production takes place in factories owned by by people overseas, and by subcontract in Russian owned factories. There are many assembly plants owned by foreigners in Kaluga (not far from Moscow), whilst the Volga region is home to many Russian owned components factories. Directive 166 allows manufacturers from oversees with at least 3000,000 vehicles to import components duty free, if they source 60% locally. Directive 566 offers the same for Tier One suppliers. Volga Trader can assist components suppliers to set up operations in Russia, particularly in the Volga region. Saratov (where we are based), is a major supplier of electrical equipment (Bosch), automotive glass, lead acid batteries and bearings to the automobile industry. |
Vehicle types include:
Russia has a substantial electrical vehicle manufacturing industry that produces trams and trolley buses. This thriving industry creates an opportunity for new battery technology, super-capacitors and composite materials for body shells. In order to revive the Russian aeronautical industry, the government is investing heavily in medium-range passenger aircraft design. Suppliers from across the world are very welcome. Investment in local facilities, like GE, is particularly appreciated. |
Advanced Materials and systems
|
Metallurgy is Russia's greatest strength and there has been considerable investment in new production. Plastic production is Russia's weakness, but smaller, newer firms have invested in the industry.
|
Local adhesives production is weak, and it offers a good opportunity for importers. The redesign of transport vehicles with composites, also presents itself as a great opportunity.
|
Machine building and factory automation
|
Russia has a strong base in laser technology but weak commercial products. This leaves many small, skilled laser firms in a good position to act as distributors for importers with better new products.
|
Electronics and optoelectronics
|
The production of semiconductor products and the assembly of circuit boards are not major industries in Russia, which presents numerous opportunities to importers of modern production equipment.
Near the Skolkovo innovation centre outside Moscow, there is a cluster of heavily subsidised companies that produce products mainly for military and other government applications. Radio technology, especially at microwave frequencies, is very well developed. GLONASS the Russian global positioning system, is being widely adopted by government agencies in countries that want greater reliability than the US GPS, which is |
can be disabled during invasion campaigns. Yet, Russia does have a need to import silicon electronics and standard software, to support the gallium arsenide skills it has at microwave frequencies. The gallium arsenide opto-electronics semiconductor technology industry is much healthier than the silicon semiconductor electronics sector. A lot of original research was done in semiconductor lasers and diodes (the first blue semiconductor laser), and Russia has an industry that demands process and other manufacturing equipment.
Russia also has a good base in a wide range of display technologies. |
For more information, click here: Services