Uralskaya Kuznitsa and Elektroprivod named the best Perm Engine Company suppliers for 2012

Perm/December 12, 2012. On December 5-6, Perm Engine Company held its annual meeting with large suppliers of raw materials, blanks, and components

The meeting was attended by representatives from 19 Russian companies, including the VSMPO-Avisma Corporation, Star, All-Russian Institute of Light Alloys (VILS), Uralskaya Kuznitsa, Elektroprivod, and others. In the course of the meeting they discussed strategies for the long-term cooperation, issues of intensifying production of blanks and components needed by the Perm Engine Company to satisfy primary production demands, and the transition to long-term contractual relationships.

Perm Engine Company leaders highlighted prospective developments for the company in the context of implementing innovative technologies, which would allow PMZ to get out from under single-source cooperation with monopolistic suppliers, and meet its own needs in various types of production by expanding its own manufacturing capacity. Plans were also announced for the coming year that envisage expanding production of PS-90A aviation engine in various versions, and of industrial gas turbine units based on this engine, as well as intensifying work on the fifth-generation gas turbine engine. These large-scale tasks that the state has set the Perm Engine Company are aimed at the long term, which means that they demand the establishment of long-term relationships with all companies involved in the cycle of high-tech production at PMZ, and also give the opportunity to seek different, mutually convenient ways of paying for deliveries.

Particular attention was paid in the meeting to the quality of materials and parts delivered to PMZ. It was emphasized that Perm Engine Companys requirements on quality will remain at the highest levels, and that each supplier must acknowledge their responsibility to meet all the established standards, since so much depends directly on the reliability of PMZs end products the safety of air travel, the stable functioning of gas transportation and electrical energy units the lives and health of many thousands of people.

The preliminary results of joint work in 2012 and key targets for cooperation in 2013 were stipulated in the meeting minutes. The best suppliers for Perm Engine Company in the preceding period also were determined. This honor went to Uralskaya Kuznitsa and Elektroprivod.

Alexei Mikhalev, Managing Director of Perm Engine Company:

Thoroughly addressing all issues of supply and component supply for Perm Engine Company is essential in order to establish with our suppliers the best conditions for cooperation, which are mutually beneficial to both parties in terms of cost, deadlines, meeting obligations, and the quality of the products. Perm Engine Company faces the task of increasing production volumes and establishing future production: increase in orders from Gazprom for production of gas turbine units of 16 and 25 mW capacity, increase in orders under the state program to equip the first two Il-76MD-90A airplanes with the fourth-generation PS-90A-76 engines that are to come online in 2014, and from 2016 the fifth-generation PD-14 aviation engine should already be in mass production. The goal for each link in this long chain of production is to ensure the full performance of these strategic state orders.

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 a part of the Russian Technologies Group of Companies. Its primary activities include helicopter building (Russian Helicopters), and engine-building (UEC).