UEC and Perm region sign a new contract

On December 15 Perm Engine Company managing director Alexey Mikhalyov took part in a working visit with the Perm region government with the acting head of the regional government Mikhail Antonov and the minister for industry, innovation and science, Kseniya Novikova. In the course of the meeting, the Perm government ratified a new agreement on cooperation between the United Engine Corporation and the Perm regional government.

This was the result of a great deal of preparatory work carried out over the preceding months by UEC, representatives of the Perm engine-building sphere, and the regional government. The decision to sign this contract was made by parties in August 2011 at the International Air and Space Salon MAKS-2011, in Zhukovsky. The authorities and the industrial corporation see the ultimate goal of the project as improving quality of life for people — people employed in the enterprise as well as residents of Perm and the Perm region. These improvements can be achieved by developing production, implementing innovative technologies, and incorporating new types of products. The effective realization of these large-scale goals will only be possible through close cooperation between the authorities and companies, through mutual engagement in carrying out joint initiatives.

Alexey Mikhalyov, as the head of United Engine Corporation’s leading enterprise in the region, presented his report on measures already being taken at the factory and about the strategy for development over the coming decade. Speaking about the personnel policies of the Perm Engine Company, Alexey Mikhailyov emphasized, „People have always been and will remain our top priority — they are the base of our value, a strategic resource.” PMZ is actively investing in human capital, conducting professional development programs and systematically increasing wages. In particular, in 2011 PMZ employees’ wages increased by 15%, and now outstrip the average wage in the city of Perm.

PMZ managing director also pointed out a number of key figures from the enterprise’s 2011 work. And so, over the past year within the framework of realizing the aviation part of its production program, the company filled an order for the Department for Presidential Affairs of the Russian Federation for ÏÑ-90À engines for the special crew planning department (SLO) „Russia”. The company also built and delivered the second complement of ÏÑ-90À engines for certification for the ÒÓ-204ÑÌ airplane. Engines were packaged for the ÈË-76ÒÄ-90ÂÄ airplanes owned by Volga-Dnepr Airlines and the ÈË-96-400Ò planes belonging to Polyot Airlines. ÏÑ-90À engines were delivered for the ÈË-96-300 planes as ordered by the United Aircraft Corporation.

In October 2011, Perm Engine Company became the first enterprise within United Engine Corporation to fully fulfill a state defense contract to repair and rebuild the Ä-30 engine.

The company is working actively with customers on questions of operation and servicing of engines. In October it held its usual conference with users of the ÏÑ-90À aviation engine. The airlines were highly appreciative of the work that PMZ has done to improve efficiency in its repair workshops, which should bring down engine repair times from 242 to 120 days in 2012 (and for „leading” engines, the company has already managed to bring the time down to 109 days this year). In November, Perm Engine Company received permission from Rosaviatsia to replace modular high-pressure turbines on the ÏÑ-90À engine in operation.

The company has achieved substantial success in its program of production of terrestrial equipment. In July, PMZ celebrated the delivery of their 600th gas turbine unit. In March, 2.5 mW GTUs produced by PMZ surpassed 3 million working hours. In December the ÃÒÓ-16Ï at Gazprom Transgaz Yugork’s Purovskaya-2 compressor station passed the 40,000 hour mark of running without repairs.

In 2011, Perm Engine Company completed the gas turbine units for the first phase of the Nord Stream gas pipeline. GTUs are also being delivered for the Bavanenkovo-Ukhta and SRTO-Torzhok gas pipelines.

Alexey Mikhalyov also mentioned that in 2011, the company’s future also took on a clear direction. In July, Perm Engine Company’s development program — Strategy 2020 — was presented. It lays out the large projects for the next nine years — „Turbine blade production”, „Combustion chamber and body production”, "Turbine rotor and compressor production","‘Development of repair work„, and „Creating and assembly and testing facility”.

These programs are essential in order to achieve the company’s strategic goals for creating new types of products — the fifth-generation ÏÄ-14 aviation engine and gas turbine units based on it, and the launch of a modified version of the ÏÑ-90À aviation engine. Thanks to these, the company’s turnover in 2020 should surpass 30 billion rubles.

Another important project developed by the Perm Engine Company in 2011 is Technopark-PM. The management set themselves the goal of optimizing underused industrial capacity, not through sales or liquidation but by attracting small and medium businesses into an industrial cooperative which will create new businesses in attractive conditions of a new industrial park, and have guaranteed orders for residents of Technopark-PM.

According to the new plans, Technopark-PM will be assigned at the southern part of Perm Engine Company’s site. There are more than 15 offices, laboratories, and industrial and warehouse facilities there, all of which have the necessary utilities and sufficient energy capacity. Perm Engine Company is investigating the possibility of working with the Perm regional government administration as a partner on this project, which would be able to introduce a system of tax breaks for Technopark-PM residents.

Commenting on the signing of the agreement of cooperation, Alexey Mikhalyov described the company’s expectations of cooperation with the Perm region administration:

„The leadership and collective of the Perm Engine Corporation are ready to do everything we can to increase our output, develop production and infrastructure on our site, create new jobs, and increase our contributions to the regional budget.

In turn, we would like to see the Perm regional government defending the interests of the Perm Engine Company with federal authorities on issues of participation in targeted federal programs through stimulating projects for the development of the company via tax and tariff mechanisms, and cooperating in working with banking and credit organizations to attract financial resources on attractive terms. We are interested in close cooperation with the regional authorities on programs of professional development and employee retraining, as well as working together on social projects, e.g. providing young specialists with housing by matching the interest rate on mortgage loans.

I am certain that this agreement will become a solid basis for the United Engine Corporation and the Perm region to work together and achieve mutually desirable goals.”

Perm Engine Company (PMZ) mass produces aviation engines for civil and military applications, as well as industrial gas turbine units for power stations and gas transportation.

PMZ is part of the United Engine Corporation, a wholly-owned subsidiary of OBORONPROM specializing in engine-building assets.

OBORONPROM is a multi-faceted machine-building group of companies, founded in 2002. It is part of the Russian Technologies group of companies. Its primary activities are helicopter building (Russian Helicopters) and engine-building (UEC).