MOSCOW. May 7 (Interfax-AVN) - At least three new large integrated companies will be established within the Russian Control Systems Agency this year, the agency's deputy director general Sergei Muravyov said on Wednesday.
"Restructuring of the industry continues. Establishment of at least three new integrated companies is planned for this year. The Navytech consortium that brings together developers and producers of navigation assets is at the formation stage. We are setting up the Vega consortium that is specialized in development and production of aerial intelligence assets, and the Kompyuternye Tekhnologii (Computer Technologies) consortium in which we will unite all enterprises related to computer production," Muravyov told Interfax-Military News Agency.
According to him, restructuring will help abolish excessive production facilities and restore cooperative ties, thus boosting the industry's productivity and efficiency.
As the state defense order volume has decreased more than 10 times in the past decade, production facilities of defense industry enterprises are idling, Muravyov said.
"The large integrated companies that we are establishing will determine themselves which facilities they need, what volume of facilities they need, what is excessive, what should be got rid of, and how to unite potentials to efficiently withstand competition on the domestic and foreign markets," he stressed.
Over 10 large integrated companies are already operating in the industry. Among them are Almaz-Antei, Vympel, Leninets, Avtomatika, and Rossiyskaya Elektronika.
According to the agency's press service, the Leninets holding company based in St. Petersburg boosted output by 80 percent in the first quarter of 2003. The industry's average output growth amounted to 14.6 percent.