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01.12.2001 Our correspondent Oleg Nekhai addressed Sergey Khomitsky with a number of questions regarding the creation of the Electroprominvest holding in the Russian power energy industry. Sergey Vladislavovich Khomitsky is the Executive Director of the electrotechnical holding Electroprominvest. He graduated from the Moscow Power Energy Institute where today he teaches at the department of relay protection. — Sergey Vladislavovich, in what projects is Electroprominvest active today? What were you able to achieve in the Russian electrotechnical market over the last year? — Today we are actively implementing projects both inside the holding as well as in the market. Our internal activities are focused on fine-tuning the operations of the holding’s structures and intensive increase in the level of management. We hold regular monthly meetings of the directors, managers undergo intensive training at every member company, financial accounting is changed in line with GAAP standards and a lot more. On top of that the holding’s companies continue to successfully work on their markets, we also have begun to witness the effects of synergy. First of all, this includes complex projects:
In the area of energy-saving technologies we have carried out extensive supplies of block-unit modules for heating stations for the utilities companies of Khanty-Mansiisk, performed energy audits of the Sintez chemical plant in Dzerzhinsk, a plant in Surgut. We provided heat supplies on the basis of heat pumps to the village of Sosnovka (Cheboksary), we completed the turnkey construction of substations in Mosenergo and Bashkirenergo. We are in the final stages of creating a new complex of programming devices for automated technological process control systems. Soon we will enter the market with a new-generation KROSS controller and the TRASSA device system that will further develop the category of the legendary Remikont series controllers. — The member companies of the holding differ in their level of development. By the end of the year the level of the least developed companies has increased significantly. How do relations within the holding develop? — First of all, you shouldn’t say “least developed”. They are actively catching up. Small-size enterprises cannot act the same way as large-size companies. The solution is in integration of efforts. This has been proven by world practice. Management levels increase to match the best standard. I could name ZEiM, ABB Automation, VNIIR as the best examples. We have gained unique experience in restructuring enterprises and created a good management school. Second of all, we adhere to a management policy on a commercial basis. If we are talking about anti-crisis programs at enterprises, then we finance those who deserve support on favorable terms. Very often financing has a zero interest rate. We allocate funds for the enterprise to develop, to pay out old debts, purchase equipment, etc. After the company stabilizes its operations it begins to repay the allocated funds and invest it in common projects. On the other hand, member companies of the holding are able to earn money by ordering products and services from each other. That is one of the ways of achieving integration and creating a technological chain. As a result the price of each product is lower than if we were to buy it in the open market. This, as you understand, leads to cost reduction of end products and increases its competitiveness in the market. Nevertheless, the holding’s main principle is maximum autonomy in business. What is the use of hard-line management from the top if people locally know what to do anyway? Such an approach allows us to control the development of business in every area most effectively. We manage the consolidated business activities on the level of the holding itself. But nothing comes effortlessly. That is why the role of the managing company as a strategic center is growing constantly. — Today the electrotechnical industry is experiencing a growth in activities, investments for development and for solving the problem of excessive employment are being secured. How does that reflect on your activities? — I would like to point out two main trends in this area: the decrease in employees where new technologies and more effective production organization principles are implemented, on one hand, and additional jobs created to increase production volume and output that is related to the growth of the number of orders, on the other hand. Today we have a number of orders that require additional personnel in some of the holding’s companies. One of the members of the holding is the unique all-Russian Scientific and Research Institute of Relay Protection and production base located in the city of Cheboksary in Chuvashia. Even in times of the Soviet Union the institute determined and influenced the development of relay protection and anti-emergency automation in the country and abroad. It has concentrated all Russian experience and today it actively implements foreign production technologies. Today VNIIR focuses its attention on scientific and research projects and the production of devices that can compete with Western analogues. It has a most diverse patent file that contains more than 230,000 descriptions. And they upgrade their inventions. The products enjoy a high reputation abroad, let alone Russia. Today export is mostly oriented toward Korea, Indonesia, Greece, Slovakia and CIS countries. The main goal of our management today is to provide a decent salary to employees that will reflect the actual input of high-quality professionals. The modernization of electrotechnics demands the implementation of modern inventions and breakthroughs. We attract young and prospective employees to work at our enterprises. According to statistics, the salary levels at some of our companies are the highest in the region and we have one of the best compensation packages. We strive to strengthen this tendency. The second “jewel” of the holding is the Electronics and Mechanics Plant. This plant underwent restructurization earlier than the others. ZEiM’s experience was analyzed by Russian and foreign specialists and is recommended for wide use. Today the plant not only produces automated technological process control systems but is a diversified holding in itself able to provide complex solutions to clients. It produces the famous P-130 controller. By the way, in late 90’s the plant was twice named the Best Russian Exporter and its general director was named the Best Manager in Russia. The plant is actively developing, attracting the best scientific resources, implementing energy-saving technologies and projects. It has expanded its product line. One of the best examples is the production of trans-sonic jet-injector devices and heating units based on them. Already today the holding provides not only the development and manufacturing of products but also offers a whole complex of engineering services in the field of energy-saving and automation. The holding also includes specialized companies such as Energoprom-Engineering, the engineering, construction and installation company Stroienergoservis and other. The portfolio of orders is growing. — There is a heated discussion about reforming RAO UES. What is your position? — We do see our role in the program for RAO restructuring that was adopted by the government. We have technologies and developments in the field of automation, energy-saving, integrated automation systems. We are talking about automation means for generating companies, about dispatch and control systems for power energy networks and power energy sales operations. We are ready to offer technologies for commercial metering of power energy and a system for controlling power energy consumption. A number of RAO UES companies, for example, Mosenergo, are among our constant clients. Stroienergoservis, a member company of the holding, enjoys a good reputation in turnkey construction of power energy stations. Mosenergo already had a chance to evaluate the quality short time frame of construction. We have good hopes for cooperation based on the results of negotiations with RAO UES engineering center. The holding is ready to supply equipment to RAO UES and provide engineering services on a long-term basis. At the same time we would like to stress the development of cooperation in new areas. Such as, for example, the supply of diagnostic equipment that could lead to considerable savings given that in RAO UES and the power energy sector as a whole the main production means are highly depreciated. In one word, we will be active participants of the reform process. — How does your sales network operate? — It is growing. ZEiM has the most developed service and sales network. It was used as the basis for further development. Business offices, production centers, dealer outlets operate in Moscow, St. Petersburg, Cheboksary, Perm, Tomsk, Samara, Lipetsk, Novosibirsk, Kiev, Minsk and Riga. We are in the process of opening representative offices abroad. Already now the Novie Technologie company works in Eastern Europe, offices have opened in Cyprus and the USA. — Let me congratulate you with the Power Energy Workers Day and wish you and your company new successes in business! — In turn, our holding congratulates all power energy workers and wishes the whole industry success in solving a very tough problem — to become a stable and competitive industry by completing a restructurization process. Sodruzhestvo Newspaper ¹ 17 (53), December 2001 / Oleg Nekhai | ||||||||
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