MOSCOW. Dec 18 (Interfax-AVN) - Defense products account for two thirds of the overall output of the Applied Mechanics Research and Production Association (NPO PM), based in Zheleznogorsk, the Krasnoyarsk Territory, NPO PM Designer Genera/Director General Nikolai Testoyedov said.
"We have a sufficient workload, worth about 8 billion Russian rubles ($303 million) for 2007. Last year it amounted to 3.2 billion rubles ($121.2 million), and this year it totals 4.6 billion rubles ($174.3 million). We still put the emphasis on defense contracts in the domestic market. At the present time such contracts account for two thirds of the overall output," Testoyedov said in an interview, published on the official web site of the Russian Federal Space Agency.
According to him, defense customers finance the entire research and development cycle, including development of specification requirements, design, design documentation, and ground prototype refinement. "Commercial customers are not interested in development, they are interested in the end-product. Thus, even given the tough pressure of military economic services and tough requirements, defense contracts are more profitable economically wise," Testoyedov said.
In addition to that, according to him, such contracts are comprehensive - they start from specification requirements and end with after-sales services.
"Thus, we believe that as far as the domestic market is concerned, our positions are primarily based on defense contracts. And we will continue developing them," Testoyedov said.
He pointed out that NPO PM, operating in the international market, would continue attracting western partners as sub-contractors for manufacturing satellite hardware and participating in tenders jointly with NPO PM.
"We have signed a memorandum with Alcatel Alenia Space on promoting the Space Bus 4000 platform satellite in the domestic market. Alcatel also proposes that the same platform mount separate Russian components," Testoyedov said.
According to him, at the moment NPO PM does not face great prospects in the international market. "However, if we manage to develop and loft the Express-1000 and the Express-2000 platforms within the next three years, we will stand a chance of increasing our prospects," Testoyedov said.
He noted that in 2004-2006 the enterprise fielded 110 new systems, including machine tools, instruments, and devices, worth 277 million rubles ($10.5 million). NPO PM allocated only 68 million rubles ($2.5 million), while the rest was provided by the Russian Federal Space Agency or the customer.
According to Testoyedov, NPO PM expects to procure about 400 million rubles' ($15.15 million) worth of hardware by 2015.