Overblog Suivre ce blog
Editer l'article Administration Créer mon blog
26 septembre 2013 4 26 /09 /septembre /2013 07:40
NYT: Russia Sells Stake in Maker of AK-47s to Investors

25.09.2013 rostec.ru

 

A government-owned conglomerate announced plans to sell to two private investors 49% of the Kalashnikov Group

 

A Russian government-owned conglomerate announced plans on Monday to sell to two private investors just under half of the company that makes Kalashnikov assault rifles.

 

The company, Izhevsk Machine Works, has made AK-47s, which are the world’s most distributed firearm, since shortly after World War II. And despite years of deep financial crisis, the company has been seen as a crown jewel of Russia’s military industrial complex.
Izhevsk returned to profitability in recent years in large part because of robust sales to American civilians.

The government had been searching for investors to share the burden of modernizing the sprawling machine shops and integrating the business, known as Izhmash, with other small arms makers as part of a broader overhaul of military enterprises, an important sector in the Russian economy.

In the deal announced Monday, the two Russian investors are buying 49 percent of Izhmash and four related enterprises that make pistols, cartridge cases and machine tools for the firearms industry for 2.5 billion rubles ($78 million). The investors are Aleksei Krivoruchko, a part owner of suburban trains linking Moscow to its airports, and Andrei Bokarev, who has a background in Siberian coal mining.

The controlling stake of 51 percent will remain with the state-owned conglomerate, Russian Technologies, an umbrella organization President Vladimir V. Putin established in 2007 to revive the military industry, in part by attracting investors.
“Private and state partnerships are an effective model to reform enterprises,” Sergei V. Chemezov, the Russian Technologies chief executive, said in a statement Monday.

The sale culminates the transformation of a Russian military enterprise that adapted to a civilian clientele, and also testifies to the money to be made in the gun market in the United States, where ownership laws are more lenient than in many other countries. Because China and former members of the Soviet Union make so many bootlegs of Kalashnikov assault rifles, producing the gun of choice for a broad spectrum of people who carry firearms was never good business for Izhmash until sales to relatively wealthy American buyers picked up.

Kalashnikov-pattern rifles are colloquially known as AK-47s — a name derived from the Russian word for automatic and the surname of the inventor, Gen. Mikhail T. Kalashnikov, as well as the year the first prototype appeared.

In an interview in 2012, the former factory director, Maksim Kuzyuk,described sales in the United States as integral to the business. About 40 percent of the factory’s output went to gun buyers there, about the same number as bought by the Russian military. The United States is the world’s largest importer of small arms, bringing in about $1.2 billion worth of guns in 2011, according to the Small Arms Survey, a standard reference of weapons trading globally.

Under a business plan announced along with the sale on Monday, the gun maker said it expected to quadruple its annual profit to $770 million, from about $193 million last year, and to triple output to 1.9 million guns annually by 2020.

In the deal, the government bundled five firearms manufacturers and related companies including Izhmash into a new structure that will be called Kontsern Kalashnikov, or the Kalashnikov Concern. These include Izhmekh, a pistol maker, as well as Koshkina, an engineering company making cartridge cases and machine tools for the food canning industry.

Government sales in Russia are also expected to rise. The American civilian rifle sales helped Izhmash to retool its factory for a new version for the Russian military, called the AK-12, which will be available next year.

Source: The New York Times

Partager cet article

Repost 0

commentaires

Présentation

  • : RP Defense
  • RP Defense
  • : Web review defence industry - Revue du web industrie de défense - company information - news in France, Europe and elsewhere ...
  • Contact

Recherche

Articles Récents

  • News review for Industry - European Defence Agency
    source European Defence Agency If you want to subscribe to the News Review, or if you want to stop receiving the News review: News4Ind@eda.europa.eu News of the News EDA Study on the Impact of REACH & CLP European Chemical Regulations on the Defence Sector:...
  • Chronique culturelle - 13 Février 2017
    13 février 1960 explosion de la première bombe atomique française 13.02.2017 source JFP 13 février 1692 : massacre du clan Mac Donald dans la Glencoe (Ecosse).Le protestant Guillaume d’Orange ayant mis en fuite le catholique Jacques II, les chefs de clans...
  • Le PGHM et le GAM s’entraînent ensemble au secours en montagne
    Equipement de passage en neige - photo GAM Armée de Terre 07.02.2016 source 27e BIM Le lundi 13 février 2017 se déroulera un entraînement conjoint entre le peloton de gendarmerie de haute montagne (PGHM) et le groupement d’aguerrissement montagne (GAM)...
  • ITW SDBR : général Vincent Desportes, Professeur des Universités associé à Sciences Po Paris, Ancien directeur de l’Ecole de Guerre
    23.01.2017 par Alain Establier - SECURITY DEFENSE Business Review N°164 SDBR : Quel regard portez-vous sur la Défense de la France ? Vincent Desportes* : A l'issue de cette mandature, nous voyons un empilement d'actions réactives, à vocations plus politiciennes...
  • Chronique culturelle 9 Janvier
    Hussards du régiment de Bercheny en 1776 09.01.2017 source JFP 9 janvier 1778 : mort du créateur des régiments de Hussards (Luzancy – près de Meaux). Emigré hongrois et excellent capitaine au service de la France, Ladislas Ignace de Bercheny , obtient...
  • Chronique culturelle 04 Jan.
    Insigne général des Troupes de Forteresse de la Ligne Maginot 04.01.2016 source JFP 4 janvier 1894 : signature de l’alliance franco-russe. Préparée par de nombreuses activités bilatérales dans les années précédentes, une convention militaire secrète est...
  • Chronique culturelle 03 Jan.
    Napoléon en Egypte par Jean-Léon Gérome 03.01.2017 source JFP 3 janvier : Sainte Geneviève, patronne de la gendarmerie. Issue de la noblesse gallo-romaine du IVe siècle, elle convainc les habitants de Lutèce de ne pas livrer leur ville à Attila, roi des...
  • Au Levant, contre Daech avec les Forces Spéciales
    photo Thomas Goisque www.thomasgoisque-photo.com Depuis plus de deux ans, les hommes du C.O.S (Commandement des Opérations Spéciales) sont déployés au Levant et mènent, en toute discrétion, des opérations contre l’Etat islamisque.Au nord de l’Irak, ils...
  • Les blessés en Opérations extérieures ne prennent pas de vacances !
    Source CTSA Pendant la période des fêtes de fin d'années, le nombre de donneurs diminue dangereusement. Le site de Clamart du Centre de transfusion sanguine des armées (CTSA) invite fortement les donneurs des communes proches à profiter des vacances de...
  • Interview SDBR de Gaël-Georges Moullec, Historien
    photo SDBR 20.12.2016 par Alain Establier - « SECURITY DEFENSE Business Review » n°162 SDBR: Comment va la Russie aujourd’hui? Gaël-Georges Moullec * : Il n’y a plus d’ascenseur social dans la Russie d’aujourd’hui, ce qui est un problème moins connu,...

Categories