Proletarsky Zavod Plant To Join USC Processing Chain

31.10.2011 President of United Shipbuilding Corporation (USC) Roman Trotsenko along with financial experts on Oct 27 visited JSC Proletarsky Zavod plant in St. Petersburg.

Representatives of the Russia's largest shipbuilding corporation visited several workshops and production lines, talked to workers and engineers. Attending the operations meeting with participation of USC managers, representatives of Ministry of Trade and Industry, and the plant's director general Aram Arutunian, the participants outlined high priority measures to pay wages, current accountings on utility bills, and discussed prompt inclusion of Proletarsky Zavod plant into USC processing chain.

Reference On Oct 11, 2011 Vice Premier Dmitry Kozak met with Proletarsky Zavod staff told that the government ordered to hand over the pre-bankrupted enterprise under control of state-led United Shipbuilding Corporation (USC). That became possible when the Central Bank holding the plant's majority stake lent on pawn by United Industrial Corporation (UIC) transferred it under USC's trust management. United Shipbuilding Corporation was tasked to arrange payment of wages and draw the plant's anti-crisis program.

On Oct 21, 2011 the government ordered USC to purchase 52.75% authorized capital of JSC Proletarsky Zavod (St. Petersburg). That was decided on the next day after the visit of Vladimir Putin to the plant. Direct interference of Russian prime minister was needed in order to relieve the Russia's largest supplier of shipboard and power-generating equipment which was brought to the brink of collapse by the previous owner.

Putin's visit was preceded by two meetings held by Dmitry Kozak; it was decided to transfer the plant's majority stake under control of Western Shipbuilding Center, USC subsidiary. Meeting with Proletarsky Zavod workers, Vladimir Putin announced share transfer to USC and tasked the corporation to pay wages, prevent the plant's bankruptcy, and "add one billion rubles to the plant's backlog of orders". USC has already declared plans to draw up inventory at the plant and submit its anti-crisis and technical improvement program for governmental consideration.

JSC Proletarsky Zavod is one of Russia's leading plants producing shipboard equipment as well as a wide range of power engineering hardware. The company cooperates with Gazprom, Rosenergoatom, Transneft, and numerous machine-building enterprises. Previous owner – East Europe Financial Corporation – is presently under bankruptcy procedure. The corporation's financial commitments were handed over to Deposit Insurance Agency which claimed for the plant's bankruptcy in Apr 2011.

JSC United Shipbuilding Corporation is Russia's largest shipbuilding company established in 2007 with 100% shares in federal ownership. The holding comprises Western, Northern, and Far East shipbuilding centers coordinating activities of more than 50 shipbuilding enterprises (core national shipyards – Sevmash, Zvezdochka, Admiralteyskie Verfi, and leading design bureaus – Rubin, Severnoye, Almaz, Malakhit). At present, USC consolidates about 70% of national shipbuilding industry. Russian market is a top priority for the state-led corporation, although it exports production to 20 foreign countries.