Kalashnikov Concern has begun to produce a series of English language videos detailing their advancements and new products. This video details a modernization kit developed by the company, which aims to update older Kalashnikov-style weapons. Adjustments include the inclusion of Picatinny rails, a new muzzle brake/flash hider, and ergonomically-improved furniture.
The Kalashnikov Concern has introduced their development strategy through the year 2020. The full release can be read below:
Moscow, December 2, 2014
Press Release
Concern Kalashnikov, a subsidiary of the Rostec State Corporation, has introduced a new development strategy till 2020, within its frames it will be planned to increase production activities, expand global sales and grow revenue by a factor of four times. The total investments volume is estimated as more than 4.5 milliards of rubles. The production modernization has been already started within the strategy realization.
The development strategy aims the increasing of the sales level at the nearest years with the benefit growth at the expense of production modernization and management efficiency improvement. By the 2014 overall results Kalashnikov shall be on the breakeven level and deliver to the customers more than 140,000 units of small-arms weapon, that more by a factor of two times than in 2013.
Concern Kalashnikov CEO A. Yu. Krivoruchko said: “The one of priorities of the Concern will be the position reinforcement at the internal market and active promotion of military and civil production to abroad. At the expense of taken actions to 2020 the maximum production facilities of Kalashnikov will be increased by two times (at 100%), and employers work effectiveness – by four times.Besides, the Concern’s revenue from the sales of small arms weapon is expected to be increased by four times. Kalashnikov will support the full life circle of the product from development till utilization and also will provide the scientific-research and experimental-design works for the perspective systems and arms complexes creation”.
The Concern Kalashnikov takes about 95% of small arms weapon production in Russia. At the same time, the 80% of all production does for the export. The one of priority is to search new markets and to expand existing markets. Fifty countries have been detected for this aim which have the biggest potential in the terms of “Kalashnikov” production purchasing. The Concern has already started the new markets development, and at first the Asiatic-Pacific region and Africa. India and Egypt are more perspective. The contracts with Thailand and Indonesia have been concluded recently. The active discussions take place with the Sothern America countries. And the most attention will be planed for CIS countries where the concern production demand is high traditionally.
The important process within the strategy till 2020 is the product line harmonization. After the first marketing studies “Kalashnikov” took off the production the unclaimed models releasing the resources for new weapons production. For today for these aims about 200 engineers of design bureau work on thirty great project for full weapon spectrum – from new sniper rifle to the gun. Closed presentation the first achievements for the Ministry of Defense has been already planned at the beginning of the next year. Also the realization of the complex Russian army rearming will become the one of the work direction including within “Ratnik” military outfit.
To increase production competitiveness and quality the Concern has started up the scaling program of technical rearming. More than 4.5 milliards [billion] of rubles will be provided in 2014-2017 for complex general repair work and new construction. Particularly it will allow to increase the buildings and constructions product life, decrease operating costs. Also it is planned within these resources to renew the machine park at 90%, herewith the average payback period of every machine is from two to three years which is extremely low index in the field. By the modernization completion the one new machine will replace three old and this will allow to optimize the production areas and therefore to reduce the expenses and effect on the environment during continually increased production volumes.
Also new global brand of the Concern is to assist for business development and production promotion as it is an important expansion element to the new markets and sales expansion in the civil sector. New brand will become as the base for promotion campaigns, distributors universally formed areas forming and also for dress line and accessories creation.
The Kalashnikov Concern, a subsidiary of the Rostec State Corporation, is introducing a new brand as part of a new development strategy for the company. Through this strategy, the Kalashnikov Concern is looking to expand global sales, revenue, and production volume. A unified brand portfolio has been developed, which includes the separation of familiar names into three distinct product roles: Kalashnikov for military weapons, Baikal for hunting rifles, and Izhmash for sporting rifles. The original press release in its entirety can be read below:
Moscow, December 2, 2014 – Concern Kalashnikov, a subsidiary of the Rostec State Corporation, has introduced a new brand. Rebranding will play an important role in the implementation of the Concern’s new development strategy, which is aimed at expanding the reach of global sales, growing revenue by a factor of four times, and expanding production volumes to 300,000 units per year.
Rostec CEO Sergey Chemezov noted: “Concern Kalashnikov occupies 95% of the Russian small arms market, and in accordance with the new strategy it will increase production to boost sales worldwide. However, in order to compete with world leaders, we need a clear, strong and recognizable brand.”
During the event, Concern Co-owner and CEO A. Yu. Krivoruchko announced the company’s development strategy through 2020. The main priorities include releasing a wide range of competitive products on the world market, improving the efficiency of production processes, and constructing a modern management infrastructure. The investment program of 4.5 billion rubles makes it possible to replace obsolete machines, which make up to 90% of what the company owns, reduce the production area, reduce costs and increase productivity several-fold. In order to develop the export potential for military products, the Concern identified 50 countries that have the greatest potential to acquire firearms. The Concern will focus on developing an international network of dealers and service centers for its hunting and civilian weapons, and it will also harmonize its product line. Due to restrictions on arms sales to the US, the Concern has made adjustments to its civilian products promotion strategy. It is now focusing primarily on supplying products to the Asia-Pacific region and Africa.The implemented rebranding represents a key element in the Concern’s expansion into new markets and the expansion of sales in the civilian sector. It will form the basis for the creation of a new visual identity and the creation of a consistent look and feel for distributor areas. It will also serve as the basis for a line of clothing and accessories.
As part of the rebranding, a unified brand portfolio architecture was created, including the Kalashnikov corporate brand and the following three product brands: Kalashnikov military weapons, Baikal hunting rifles, and Izhmash sporting rifles. Thus, the Concern’s entire product line has been unified. In addition to new corporate and product designs and brand books, the Concern has managed to develop a naming system for all weapon models that the Concern produces.
The rebranding of Concern Kalashnikov is part of a unified strategy of the Rostec State Corporation to update its image and rename its holdings and subsidiaries in order to strengthen their position on international markets and increase the capitalization of the state corporation over the long run.
