Kalashnikov signals further expansion of MIM technology usage following acquisition of Sintez

October 16, 2014

In Spring 2014 it was announced that firearms producer Kalashnikov Concern, part of the Russian state corporation Rostec, was to purchase 51% of the shares in Russian Metal Injection Moulding (MIM) parts producer Sintez (Synthesis-PD). Kalashnikov has recently re-stated its commitment to adopt MIM technology as part of a major capacity expansion and efficiency drive.

The cost of the deal announced earlier this year, reported to be financed from Kalashnikov’s own capital, is more than RUR 250 million (US$ 7.1 million).

Kalashnikov Concern’s CEO Aleksey Krivoruchko commented at the time of the announcement, “Partnering with Synthesis-PD is an important step in the modernisation of the entire enterprise’s production. Currently, 90% of parts are produced and refined manually, using old technologies that require significant time and effort. Thanks to the experience of Synthesis-PD, we will be able to cut the time required to manufacture parts in half and reduce production costs by more than 40%, as well as improve quality and increase production rates.”

This acquisition is just one part of a modernisation strategy incorporating new technology that is designed to reduce costs and increase profits. Almost RUR 5 billion ($126 million) is to be invested in modernising the Kalashnikov Concern by 2017, according to Rostec’s Sergei Chemezov.

Recent reports stated that Kalashnikov has already launched a modernisation program at its factory in Izhevsk, Udmurtia, 750 miles east of Moscow. Kalashnikov’s plans include a significant focus on MIM technology.

The investments will enable a tripling of small arms production to 1.9 million guns per year. The company anticipates more than RUR 9 billion ($226.7 million) in revenue in 2014, compared to over RUR 2 billion ($50.4 million) in 2013.

 

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