MOSCOW, December 24, 2015 /PRNewswire/ --
Rostec's Supervisory Board has approved the Corporation's Development Strategy until 2025. The primary objective of the strategy is to transform the Russian economic model: diversifying economy and increasing the proportion of high-technology civilian products and non-raw-commodity exports.
The revenue structure of the Corporation will have a material change by 2025. The percentage of arms will decline from 20% in 2014 to 13% in 2025 and the share of aircraft components and after-sales services will be reduced from 19% to 12%. However, Rostec has no plans whatsoever to cut back on the volume production and supplies of arms, aircraft components and after-sales services - the reduction is expected to result from a significant growth of revenue in the other segments, primarily in the electronics cluster segments. The share of telecommunications equipment will grow from 4% to 12% by 2015.
"The implementation of Rostec's Development Strategy will help reshape the structure of Russian economy, stressed Rostec's CEO Sergei Chemezov. We have aspirations to catch up with global competitors, such as GE, Siemens and others, by 2035. The key strategic imperative is to drive the growth of ruble-denominated revenue by expanding the presence in the traditional markets and expanding into emerging fast-growing markets. By 2015, the amount of the investment program will be as high as USD 64.3 bn."
"Rostec's new strategy targeting a 17% annual growth is an extremely ambitious undertaking that would require some strenuous efforts of the State Corporation's executive management. However, I believe this target to be feasible since Rostec is one of the key players in Russian industry and is equal to the task, commented on the situation Russian Minister of Industry and Trade Denis Manturov. As one of the key priorities, the new strategy will be built around high technologies that will enable the State Corporation to capture global markets by progress in this area. The adopted strategy will secure for the State Corporation a rapid growth, the status of a global player in world markets and also a leadership in at least two to three segments."
The new strategy has provided the framework for developing implementation initiatives that are segmented into six blocks. Subsequently, the strategies for six industrial clusters will be formulated altering the strategies of holding companies to align them with the parent company's strategy and giving birth to functional strategies.