New Dynamics (formerly Rostov Transmission Plant)

LLC New Dynamics (until May 2022 - Rostov Transmission Plant) is one of the enterprises of Rostselmash, and specializes in the high-tech production of automatic and mechanical transmissions, bridges and gearboxes.

History

2024: Co-owner of Rostselmash: The plant built for billions of rubles is meaningless, cheaper to buy in China

Co-owner of the Rostselmash group of companies Konstantin Babkin at the end of June 2024 said that the New Dynamics transmission plant in Rostov-on-Don, in which more than 10 billion rubles were invested, does not make commercial sense. According to him, the company is more profitable to purchase components in China due to the significantly lower cost of the metal.

Babkin noted that they worked on the project for about five years, but the produced gearbox turned out to be more expensive than analogues that were previously purchased in Japan, and are now available in China.

source = Rostselmash

Babkin called the main reason for the unprofitability of production the high cost of metal billet in Russia, which is 3.5 times higher than Chinese prices. Despite attempts to optimize production processes, the difference in the cost of raw materials makes the product uncompetitive.

The problem of localization of production, according to Babkin, affects not only Rostselmash, but also other industries of mechanical engineering. He stressed that current economic policy forces manufacturers to localize production "through violence," which contradicts economic logic.

To solve the problem of localization, machine builders proposed a number of measures, including increasing subsidies, introducing protective duties for domestic manufacturers and reducing taxes for manufacturing workers.

In particular, it is proposed to allocate at least 10 billion rubles annually in the form of grants for the development of the production of components for special equipment, as well as to introduce a refund of 6% of personal income tax paid to manufacturing workers with an annual income of up to 600 thousand rubles.

We must forge technological independence. But the cost of metal, the cost of loans, the amount of taxes lead to the fact that localization occurs through violence.[1]

Notes