Amur Shipbuilding Plant
Amursky Sudostroitelny Zavod
Zavod imeni Leninskogo Komsomola
Shipyard No. 199
1, Aileya Truda Str, Komsomolsk-on-Amur, Russia Teletype- 295155 "Utyos" Fax (42172)4-38-58 Phone (42172)4-50-22
The Amur Shipbuilding Plant, a member of the United Shipbuilding Corporation JSC, is the largest shipbuilder in Russia’s Far East. This is a well-equipped, full cycle shipbuilding facility, boasting a firm business in manufacturing a wide range of marine and general engineering products. The plant has a required production capacity and technologies to build ships and vessels with a displacement of up to 25,000t for the navy and civil market.
The company was created and developed as the main shipbuilding base of the Far East for the construction of submarines and combat surface ships for the Navy, as well as ships of various classes and purposes. It is the only enterprise in the Far East that has the base for building ships for the Navy with both conventional and nuclear power plant.
The Amur shipbuilding plant, founded in 1932, built 270 vessels for the Soviet Union's Pacific fleet, specialising in nuclear and diesel submarines. The Pacific Fleet Yankee II (Nalin variant) submarines were built in Komsomolsk-na-Amur. The yard also built a variety of conventional submarines as well as the Project 659 Echo-I and Project 675 Echo-II class nuclear powered cruise missile submarines, and the Victor-III and Project 971 Akula nuclear attack submarines. During the Soviet era the Amur Shipbuilding Yard facility was known as the Zavod imeni Leninskogo Komsomola and Shipyard No. 199.
- nuclear submarines - 58 units;
- diesel-electric submarines - 41 units;
- combat surface ships - 56 units;
- sea icebreakers of the project 576 of the “Lomonosov” type - 15 units;
- transport docks (various projects) - 13 units;
- floating technical bases for recharging reactors - 4 units;
- vessel for processing LRW “Lily of the Valley” - 1 unit;
- other vessels (dry cargo ships, timber carrying vessels, fishing trawlers, diesel electric locomotives) - more than 120 units:
The experience gained in the construction of complex warships allows the plant to successfully compete in the international market in the implementation of export orders. Since 1936, hundreds of civilian vessels of various types were built on the stocks of the Amur Shipbuilding Plant.
- Environmental monitoring vessel. Project 21232
- Chemical tanker. Project 18500
- Multi-purpose Tug and Rescue "Hopper". Project 16570
- Transport and towing vessel. Project UT-722.
- Seismic survey vessel
- Vagis Project 1710.
- Self-propelled scow "Slavyanka". Project 21100
- Fishing bot. Project 21230.
- Auxiliary ship. Project 21750
- Fishing boat. Project 21710 (PBS-10)
- Fishing boat. Project 21260
- Supply vessel Project 22420.
- Fishing bot. Project 70451 TM
- Cargo ship. Project 19610
- Timber bag Project 17340.
- Floating complex for processing liquid radioactive waste "Lily of the Valley"
- Transport and launch docks
- Diesel-electric. Project 728P
The Russian government cancelled all orders for nuclear submarines in 1992, and refused to pay for those that had just been delivered. Most of the first eight Akula class submarines were built in Komsomol'sk until activities there ceased in 1993. The remaining submarines have been built or are under construction at the Sevmash Shipyard in Severodvinsk. Once the pride of Russia's far eastern military-industrial complex, the Amur Shipbuilding Plant employed 20,000 workers a the end of the Cold War. By the mid-1990s the workforce had shrunk to 10,000, and the company was heavily in debt.
The Russian Navy planned to commission two multipurpose submarines in 1999. As of August 1998 one of the subs at Komsomolsk-on-Amur was 82% complete, while the other sub in shipyards in Severodvinsk was at about the same stage of readiness. The Yard is cooperating with "Rossvooruzhenie" to find orders for construction of the "Kilo" class (877 EKM type) submarines. The yard produces a multi-purpose, 5,500-ton river-sea type freighter "Volga", a seagoing salvage tug, 135-ton displacement fishing boats, and hang-gliders.
Apparently two additional Akula-Is remained undelivered at Komsomol'sk-na-Amur. Funds were provided in January 2000 for further work on the 82%-85%-finished Modified Akula-I-class Nerpa, laid down in 1986. The 25%-50%-complete Kaban, begun in 1992, may also eventually be completed. As of October 2000 the Amur shipyard had been trying to complete one multi-purpose Bars-class submarine for more than five years. Though construction of the submarine was 85 percent complete, Russia doesn't have the money to complete the job. The shipyard plant received 5 million rubles ($182,000) from the Defense Ministry in 2000. But to keep the construction hangar at the right temperature, the shipyard spends 70 million rubles a year. Maintaining the hangar temperature is essential, since in 1997 the submarine's reactor was started, and a stable temperature is required in the hangar to avoid accidents. It would cost more to dismantle the submarine and treat the radioactive reactor than to complete construction. Meanwhile, another submarine remained only half built at the shipyard.
In 1996, the enterprise began work with McDermott Shipbuilding, Inc. for construction of a floating liquid RAD wastes processing facility. The plant was the first Khabarovsk enterprise to participate the Sakhalin-2 offshore oil and gas project. It was subcontracted to build a spacer for Moliqkpaq drilling station. The company has plans to expand its participation in Sakhalin projects, as well as develop production of construction materials, furniture, and other consumer goods.
In January 1996, the Babcock & Wilcox Nuclear Environmental Services, an operating unit of McDermott International, Inc. and Tomen Corp., a major Japanese trading company, were awarded a nearly $25 million ten-month contract to construct a liquid radioactive waste treatment plant in the Russian Far East. The barge-mounted facility, 65 by 23.5 meters (213 by 77 feet) long with a draft of 6.6 meters (22 feet), was designed in Russia and fabricated at the Amur shipyard in Komsomolsk-na-Amur, Russia, which formerly built nuclear submarines. On-site management was provided by McAmur Construction Services, a joint venture between McDermott and JSC Amur Shipbuilding Plant. The liquid waste processing system and auxiliary systems were purchased from other U.S. firms by B&W NESI and installed at the shipyard. Much of the work was performed in cooperation with the Russian State Committee for Defense Industries and the Russian Ministry of Atomic Energy.
In November 1996 Sakhalin Energy Investment Company Ltd. awarded a $35-million contract to the Amur Shipbuilding Plant for construction of a steel base (spacer) required for the first phase of development of the Piltun-Astokhskoye (PA) oil field offshore Sakhalin Island in the Russian Far East Region. The construction of the spacer unit led to the creation of approximately 1,000-1,500 jobs. A mobile drilling platform called a Molikpaq, previously deployed in Alaska, was to be moved to the deeper waters off the Sakhalin coast. The 17,000 tonne steel island known as a "spacer" -- resistant to icebergs, storms and earthquakes -- would serve as a base for the platform.
The yard also produces a multi-purpose river-sea type freighter "Volga" of 5,500 ton displacement, a seagoing salvage tug, and hang-gliders. Amursky and Mitsui (Japan) designed a USD27 million project on the reconstruction of the yard to participate as one of the local suppliers of Sakhalin oil projects.
The company is included in the list of strategic enterprises and organizations. PJSC "AES" has all the necessary licenses and certificates that allow to perform both military and civil orders under the rules and regulations of the Russian and foreign (Lloyd, ABC, DNV) classification societies. The plant is equipped with all types of production and has all the necessary licenses, allowing to perform the whole complex of works on the construction and repair of warships, submarines and ships, both with nuclear and with traditional power plant.
Production facilities, technical equipment of the enterprise provide the opportunity to build submarines, ships and ships with a launch weight of up to 10,000 tons, up to 150 meters long and up to 15 meters wide, to carry out medium repairs of submarines of projects 971, 877.
In its composition, the plant has a landing complex consisting of closed heated slipways, including: - 9 docks, equipped with shipborne equipment; crane equipment with a lifting capacity of 30, 50, 100 ts, which allows forming the hull of a ship from structures weighing up to 180 tons. The docks are equipped with stationary scaffolding with a complete set of energy supply, allowing for assembly, welding, installation, painting and commissioning works. The presence of shipboard equipment allows using the transport and traction system to move structures from the dock to the dock weighing up to 1600 tons; - bulk pool and water area with mooring outfitting walls, equipped with means of power supply, portal cranes with a carrying capacity of 10 and 32 thousand tons, floating crane with a lifting capacity of 100 thousand tons.
The main types of products of PJSC "AES" in different years were: - nuclear and diesel submarines and surface warships; - dry cargo carriers, timber-carriers, packs of the river-sea class; - sea rescue tugs, sea and river barges; - floating transport and launch docks, dock-pontoons, floating piers; - floating complex with a plant for processing liquid radioactive waste; - large-scale offshore facilities, metal structures, technological modules for oil production platforms; - tanks and storage tanks for diesel fuel and hydrocarbon solutions; - fishing vessels and small size fleet.
The RF government will allocate $565m for Amur Shipyard in Khabarovsk Region, Russian Prime Minister Vladimir Putin said 11 May 2009. The funds will be reportedly wired in several tranches by 2014. According to Mr. Putin, the first $63m tranche will be released by the year end. The prime minister also announced a transfer of Amur Shipyard’s 60% stake to United Shipbuilding Corporation (USC).
Prime Minister Vladimir Putin promised to solve the problems of the Amur Shipbuilding Plant, which is in dire financial straits. “The fact that the decision will be made on the plant now is obvious,” he said during a visit to this enterprise in Komsomolsk-on-Amur, where a meeting on the development of the shipbuilding industry in the Far Eastern region will be held.
Putin noted that in order to “clear up the situation” in production, it is necessary to solve the problem of accounts payable, which amounts to 36 billion rubles, of which 13.9 billion rubles - only to Sberbank. "The second, which is no less important, needs to be resolved with the property and the owners (of the plant), who have not shown themselves effective in recent years," the premier said. He added that it was necessary to determine the orders for the plant - both with the military and civilians. “In principle, the potential is good, and in order to solve this, we will meet here today,” Putin said.
United Shipbuilding Corporation (USC) received a 59.12% stake in Komsomolsk-on-Amur’s Amur Shipyard, currently held in government control. Thus USC was now reportedly holding a total of 77% of the Khabarovsk regional company. The RF government made the decision to buy the factory’s controlling stake for a symbolic price in May 2009. Amur Shipyard had serious liquidity problems and as of May was $1.2bn in debt. As Marchmont reported earlier, the RF decided in December to raise a $567m bail-out package for the factory over the next five years. Amur Shipyard emerged from bankruptcy in 2014. One of the largest banks in Russia, Sberbank, prevented the bankruptcy of the Amur Shipyard.
The Deputy Chairman of the Government of the Russian Federation on the issues of the defense-industrial complex Yury Borisov visited the Amur Shipbuilding Plant on a working visit in February 2019. He was accompanied by the governor of the Khabarovsk Territory, ministers and officials of the regional government, representatives of federal executive bodies, as well as representatives of the board of the Military-Industrial Commission of the Russian Federation.
The main issue for discussion was still the difficult financial situation at the Amur Shipbuilding Plant. The need to quickly solve the problems of the NEA related to the lack of funds for building orders due to the heavy burden of debt obligations on previously taken loans, as well as the need to increase the company's load, the Deputy Prime Minister Alexey Rakhmanov and Director General of the JEA Vladimir Kulakov reported to the Deputy Prime Minister.
“The USC with understanding met the proposal of the Amur Plant about the need for financial support for the plant on the part of the state, the amount of which, according to preliminary estimates, should be about 14 billion rubles. The required package of documents prepared by the company is now being reviewed by the management of the corporation. In matters of loading the production areas of the plant, there are also moments that require our direct participation, and in this regard we are working more closely than ever with the management of the plant, ” said Alexei Rakhmanov.
The need to recapitalize the Amur Shipbuilding Plant, the company management said a few years ago. Thus, according to the financial recovery plan, the PES, taking into account the additional infusions in 2016, would go to a break-even production as early as 2022. However, no decisions were made on the financial assistance to the plant. “It is necessary to change the pricing conditions for our products. Now the ships that we produce do not bring us profit. We need preferences as a Far Eastern shipyard operating under special conditions, ”said Vladimir Kulakov, General Director of the plant.
On 11 February 2019, in the framework of his working visit to Komsomolsk-on-Amur, the Amur Shipbuilding Plant was visited by the Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District Yury Trutnev. Vladimir Kulakov, the Director General of the plant, reported to the plenipotentiary about the problems of the enterprise’s loading, one of which is to delay the resolution of questions about the frozen facilities belonging to the Ministry of Defense and occupying construction docks. No less acute at the plant is the issue of commercial risks associated with the construction of orders, as a rule, they are expressed in an increase in the price of products and the timing of contracts. “In today's business model, unfortunately, all the risks associated with the release of a new product by an enterprise are on the customer. In such a situation, no one will order products at the enterprise, because the customer understands that he will face, firstly, the excess of price in relation to those enterprises where this product is already being produced, and secondly, the deadline. If we want to compete with the shipbuilding companies of Korea or China, we must understand that commercial risks must be taken not by the enterprise and not by the customer, but by the government represented by the government and the ministry of industry. This mechanism needs to be worked out. Here we are now ordered ferries. Including in order to support the enterprise, but as a result, these ferries will wait a year longer for the residents who need them. This is a bad job. After all, we should not have given these orders to foreign companies - this is unacceptable. Therefore, with regard to the construction of ferries, decisions are needed both on additional construction terms and on additional financing ”- concludedYuri Trutnev .
Komsomolsk is a Soviet-era planned city with wide tree-lined boulevards, set against the broad Amur River. It is set in the middle of vast, hilly forestland, and is miles away from any settlements but small villages. Komsomolsk-on-Amur was founded in 1932 as an industrial base for the Soviet defense industry. Its largest plants produced aircraft and ocean-going vessels. With its population of 294,500 people, it is the third largest city in the Russian Far East (RFE) after Vladivostok and Khabarovsk. The city economy is based on manufacturing, which accounts for 74 percent of the total output and 38 percent of employment.
A tough 5-hour drive from Khabarovsk, Komsomolsk-on-Amur is one of the most inaccessible, least visited major cities in the Russian Far East. The Federal "Conversion" Program approved in 1995 proposed to provide defense plants with funds to arrange production and marketing of consumer goods. The Program received only 15 percent of its proposed financing, and was abandoned. Though the city is in a profound economic slump, its aging defense and machine-building factories were beginning to attract contracts to support the immense off-shore oil and gas projects on nearby Sakhalin island.
In mid-1997 the Russian Ministry of Defense closed a training center for Russian Navy submarine crewmembers, established 17 years ago in Komsomolsk-na-Amur, Russia. The center trained Pacific Fleet personnel and with the closing, laid off 200 employees.
In September 1996 two servicemen were killed at an air defense missile complex near Komsomolsk-na-Amur when a missile warhead exploded as they were trying to take it apart to get to the precious metal components inside.
Khabarovsky Krai is the most industrialized territory of the Far East of Russia, producing 30% of the total industrial products in the Far Eastern Economic Region. The machine construction industry consists primarily of a highly developed military-industrial complex comprised of large scale aircraft and ship building enterprises.
Khabarovsky Krai is washed by the Sea of Okhotsk and the Sea of Japan. The marshy Middle-Amur Plain is situated on both sides of the Amur River, which is one of the longest rivers in Russia. Its total length is 4,440 km including 1,000 km within Khabarovsky Krai. The population of Khabarovsky Krai numbers about 1.6 million people. The cities of Khabarovsk and Komsomolsk-na-Amur in Khabarovsky Krai rank the second and third largest cities in the Russian Far East after Vladivostok.
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