Russian company Almaz-Antey to invest $1,7 billion to build new facilities TASS 33003163

Posted On
Defence & Security News - Almaz-Antey
 
Russian company Almaz-Antey to invest $1,7 billion to build new facilities
The Almaz-Antey Corporation’s investment in building new facilities in Nizhny Novgorod, Kirov and St. Petersburg have totaled around 120 billion rubles ($1.7 billion), the corporation’s director general, Yan Novikov, told journalists on Wednesday.
     
Russian company Almaz Antey to invest 1 7 billion to build new facilities 640 001Nizhny Novgorod Machine Building Plant Almaz-Antey (Photo: www.klmgroup.ru)
     
"The corporation has been running a large-scale investment program since 2012. The program covers the construction of the Nizhny Novgorod Plant named after the 70th Anniversary of the Victory [in the Great Patriotic War], Kirov Machinebuilding plant and Northwest Regional Center in St. Petersburg. The work on these investment projects has been almost completed. The overall investment in the three facility has accounted for around 120 billion rubles, of which 104 billion rubles ($1.5 billion) the corporation has paid out of pocket," Novikov said.

Last fall, Almaz-Antey reported that its total investment in the companies in Kirov and Nizhny Novgorod and the technological park in St. Petersburg amounted to approximately 74 billion rubles ($1 billion).

Novikov said the new factory in Nizhny Novgorod has employed 1,300 personnel, with their number to grow to 2,500 by year-end. The estimated personnel strength is 3,000 and is due by early 2017, the director general said.

The 30% personnel optimization planned by Almaz-Antey does not provide for cutting every third worker at once, Novikov said.

"This is not a dumb firing of every third worker of the ‘head office’. Although there will be cuts for sure, they will mostly boil down to self-contained business entities branching out from the parent company," Novikov said in an interview published by the Rossiiskaya Gazeta daily.

As was reported in the press, Almaz-Antey plans to slash 30% of its workforce in the second quarter of this year to reduce costs.

According to him, the company will be cutting costs through optimizing its procurement system as well. Selling some of its non-core real estate is being looked into.

Almaz-Antey’s austerity plan has been caused by the growing interest expense and the costs of its managers and launching production by its new facilities, the director general added.
     
© Copyright 2016 TASS. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.