Kizlyar electromechanical plant (KEMZ)

KEMZ specializes in development and production of complexes of land control and diagnostics of aircraft, an aircraft equipment and different consumer goods. The enterprise cooperates with the enterprises of the aviation industry of Russia, such as JSC Sukhoi Company, JSC RAC MiG, "NAZ of Chkalov", KNAAZ of Yu.A. Gagarin, NPK "Irkut", etc.

2017: Rostec will create production of the agricultural machinery at defense capacities of the North Caucasus

Rostec will organize in Kaspiysk (Republic of Dagestan) assembly production of farm vehicles of the child plant "Sibselmash Special equipment" which is based in Novosibirsk. Assembly of the equipment will be performed at capacities of the defense "Kizlyar electromechanical plant" (KEMZ) where Rostec owns 25.5% of stocks. The project provides also creation of network of the dealer and service centers for all North Caucasus.

The project is implemented by child structure of Rostec – RT-Proyektnye Technologies company within the Development strategy of Corporation till 2025. It will allow to load free capacities of KEMZ, to diversify production, to increase volumes of civil products and also will provide to North Caucasus region new jobs and inflow of additional tax deductions.

The technological capabilities of KEMZ created for needs of the defense industry allow to make the high-quality equipment. The plant locates the modern metalworking, welding and painting equipment that gives the chance to reduce cost value of the Novosibirsk special equipment by 10-20%. The arrangement of production in Kaspiysk will allow without essential logistic costs to enter the growing market of consumption of the North Caucasus, and in the long term - the countries of the Caspian Basin, Turkey, Georgia and Armenia.

"At the initial stage assembly of the equipment on KEMZ will be performed from the parts supplied by the Sibselmash Special equipment plant. It will allow to start quickly production and to optimize logistics, having excluded need of transportation of the large-size ready equipment from Siberia to agricultural regions of the South of Russia. According to preliminary estimates economy on logistics will make 150-200 thousand rubles counting on each piece of equipment", – the deputy CEO of State Corporation Rostec Alexander Nazarov comments. - The consumer will also get access to territorially approximate dealer, warehouse and service bases. The dealer centers for agricultural producers will create conditions for testing of the equipment by analogy with test drives of cars. On the next stage until the end of 2018 about 60% of production of all component parts on the KEMZ production base are going to localize".