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.