OREANDA-NEWS. Tallying up the results of the expiring year 2013, a conclusion can be drawn that NPO Saturn will have fully honored its annual production program.

The current year budget provides for a 20% increase in the volume of production and sales in comparison to the previous period and doubling following the results of 2012-2013 compared to 2011. The preliminary data shows that the 2013 budget has been fulfilled while the secured portfolio of orders allows to forecast a further steady increase in the production volume over 2014-2015.

The secured production volume required heavy investing in the company's working capital, production engineering, extensive deployment of shop-floor operators as well as in the redesign of the NPO Saturn planning and capacity management system.

In 2013 the company managed to make a formidable step towards the outsourcing and industrial work-sharing. A list of parts and subassemblies not requiring high qualification and technological edge was established and will be outsourced in 2014 to different suppliers in order to free up some of Saturn's facilities thus allowing the company to fully focus on its primary, value-added gas turbine engine building competences.

In 2013 the newly adopted approach based on the product divisions and industrial competence centers already brought in some tangible results. The use of modern management techniques including Lean and Supply Chain Management allows balancing effectively the internal and external resources through simulations and fulfilling the production planning in order to ensure the best customer satisfaction.

NPO Saturn continues early fulfillment of a D-30KP-2 engine delivery contract. In 2013 the foreign-based customer was delivered 5 sets of new engines. The MRO contract for the D-30 series engines for the Ministry of Defense of the RF was fulfilled on time and in full scope. The small-sized engine production program was also fully respected. The needs of SCAC in serial SaM146 engines were fully satisfied.

Speaking of the SaM146 engine project, it's worth to note that the expiring year was marked by the beginning of operating the SSJ100 aircraft powered by the SaM146 engines by foreign airlines and the delivery of the first extended-range SSJ100 fitted with the 1S18 modification of the SaM146 engine to its first customer - Gazpromavia. The work continued on the performance improvement of the SaM146 engine program and expanding the collaboration scope with Snecma including the initiation of a number of new joint projects.

NPO Saturn is actively developing its production infrastructure which translates into “building a practically new company” capitalizing on its engine-building skills. In 2013 as a result of the federal target program, the new facilities such as the gas-circulation coating application area in workshop 4 and electronic beam welding area in workshop 57 were put into operation. The work also continues on the reconstruction of the production facility 119 specialized in compressor blade electrochemical machining and construction of the casting production facility 140, and also on the engineering of a new production unit (facility 100). The new, state-of-the-art machine tools are in preparation phase, new production processes are being devised and implemented. The volume of the company's direct investments in construction and technical re-equipment throughout 2013 will have exceeded 4 billion rubles.

Consistently improving its financial and economic performance, NPO Saturn tries to take the best care of its employees' well-being: it creates modern work places while implementing social programs unprecedented for the present-day industry. The year-on-year growth of salary amounted to approximately 16 percent.

Particular attention is given by the company to the creation of the research and technology backlog that can be used in the development of new, competitive products which will come to replace the engines approaching the end of their life-cycle. The NPO Saturn design office is actively working towards that end.

According to Yuriy Shmotin, NPO Saturn head of design, “the completion of development of the prospective small-sized gas turbine engine was the most significant event for the company in 2013. For the first time Russia saw the creation of a completely “electric” gas turbine engine surpassing any existing analogs. A certificate of completion of the state bench tests was signed by the customer and officially delivered on 12 December 2013, which means that the engine is ready to enter its serial production phase.”

I would also like to emphasize the completion of tests by NPO Saturn of a high-pressure compressor powering the prospective engine, and equally the completion of the AL-55I engine R&D phase. Pursuant to the existing contract, the completion of our part on the AL-55I engine program allows UEC represented by UMPO to commence license manufacturing of this engine at the foreign-based customer's facilities.”

NPO Saturn continues developing the 'Gas turbine machinery and power engineering' innovation cluster policy whose primary objective is to ensure profitability of the territory and create high-tech work places through the development of the small-to-medium-sized businesses, scientific and learning institutions all linked together into an integral research and industrial chain.

In 2014 NPO Saturn will continue its work on managing UEC's 'Civil engine division' which has encompassed a plethora of companies, firstly Aviadvigatel and PMZ. That will allow to realize the SaM146, PD-14, PS-90A and some other civil engine programs more efficiently.

According to Ilya Fedorov, NPO Saturn chief executive officer, “Saturn is faced with an important volume of work related to further fulfillment of contractual obligations before its customers among which are the state order, the military-technical collaboration line and civil product deliveries.

I'm sure that the share of the latter in the company's revenue will be increasing and that will allow us to diversify our business in a better way while steadily increasing sustainability and competitiveness of NPO Saturn in the global market of gas turbine engineering.

I'd like to note that the collaboration with our strategic partner Snecma has led Saturn to a new level of designing and manufacturing of any engine configurations whether civil or military. Working together on the principles of parity and setting up partnerships in a civilized way constitute a modern trend in the worldwide aerospace market, and this has become an inalienable part of Saturn's life.

I wish to extend my gratitude to the entire NPO Saturn team and thank them for the well coordinated and meaningful effort; I have no doubt that the looming year will become a year of new achievements and enhancement of our company's financial standing.”

NPO Saturn Research and Production Association (OJSC) is an engine-building company specialized in the design and development, production and after-market support of gas turbine engines for military and civil aviation, Navy boats and power-generating plants and gas-pumping units. The association is part of the All-Russian public organization The Union of mechanical engineers of Russia whereby the regional branch is headed by I. N. Fedorov, NPO Saturn CEO.

NPO Saturn is part of United Engine Corporation (OJSC) and acts as the leader of the Civil Engines Division, a business unit of the UEC founded on 09.10.2012 as a result of integration of the following companies: NPO Saturn (OJSC), Aviadvigatel (OJSC), PMZ (OJSC), Metallist-PM (CJSC), Energetik-PM (OJSC), REMOS-PM (CJSC), Motoservis-PM (CJSC) and Zheleznodorozhnik-PM (CJSC).

United Engine Corporation (OJSC) is a subsidiary of OBORONPROM UIC (OJSC). The UEC structure integrates over 85% of Russia's leading companies specialized in the design and development, serial production and after-market support of gas turbine machinery, as well as the key enterprises - the industry's integral players. One of the UEC's prioritized fields of activity is the implementation of comprehensive programs of development of the companies in the industry by introducing the world-class new technologies.

OBORONPROM United Industrial Corporation (OJSC) is a multi-field machine-building group created in 2002. It is part of Rostec. The main fields of activity are helicopter building (the Russian Helicopters holding), engine building (the UEC holding) and other assets.

Rostekhnologii State Corporation (Rostec) is a Russian corporation established in 2007 in order to facilitate the development, manufacturing and export of high-technology industrial products of military and civil purposes. Today it comprises over 663 companies, which form 8 military-industrial and 5 civil industry holdings. Rostec's subsidiaries are located in 60 regions of Russia and supply their products to over 70 countries worldwide. In 2012 revenues of the Corporation amounted to RUB 931 billion, net profits were RUB 38.5 billion and total taxation exceeded RUB 109 billion.