VSMPO-AVISMA Corporation
Since 1933
Russia
Ural Federal District of the Russian Federation
Yekaterinburg
+7 (34345) 6-23-66
Owners
VSMPO-AVISMA Corporation is a Russian metallurgical company producing titanium and products from it, part of the Rostec state corporation. It is the only titanium company in the world that carries out a full production cycle - from processing raw materials to the production of final products.
VSMPO-AVISMA Corporation is deeply integrated into the global aerospace industry and is a strategic supplier of titanium products for many companies. In addition to titanium, the corporation produces pressed large-sized products from aluminum alloys, semi-finished products from alloyed steels and nickel-based heat-resistant alloys.
Aktivs
The main production of the company is located in the Sverdlovsk region (the city of Verkhnyaya Salda).
The structure also includes the Bereznikovsky titanium-magnesium plant Avisma, the world's largest producer of titanium sponge, the raw material for titanium production.
AVISMA branch of VSMPO-AVISMA Corporation OJSC is a chemical and metallurgical enterprise engaged in the production of sponge titanium and titanium powders, magnesium metal and alloys based on it, products from magnesium alloys made by injection molding, as well as chemical products - titanium tetrachloride, vanadium pentoxide, vanadium oxychloride, copper chloride modifier, barium fluid.
In the global production of titanium sponge "AVISMA" occupies the largest sector - about 30%. Sponge titanium produced at the enterprise is used as a semi-finished product for the manufacture of titanium products of deeper processing - sheets, profiles, forging, stamping.
AVISMA is Russia's largest producer of magnesium metal and alloys based on it. Magnesium and its alloys are supplied to automotive and aerospace parts companies, marine vessels and oil and gas pipelines. Before the liquidation of the injection molding site (the main production site No. 6 of workshop No. 31) in 2011., AVISMA was the only enterprise in the Russian Federation that produced products from magnesium and aluminum alloys made using injection molding technology with subsequent machining. The average number of employees of the AVISMA branch as of July 1, 2011 is 5559 people.
VSMPO-AVISMA Corporation has more than 300 international certificates for the quality management system, production and control methods, certain types of products made of titanium and other materials
Performance indicators
2023: Revenue growth by 25.4% to RUB 121.48 billion
The revenue of VSMPO-Avisma in 2023 reached 121.48 billion rubles against 96.85 billion rubles (an increase of 25.4%). During this time, the company's net profit increased 3.3 times - from 7.61 billion to 24.85 billion rubles. Such data under IFRS were published by a Russian titanium manufacturer at the end of April 2024.
According to Interfax, citing materials from VSMPO-Avisma, in 2023 the company earned 119.23 billion rubles on the sale of goods (+ 25.5% compared to 2022) and 1.98 billion rubles on the provision of services (an increase of 10%).
The company's cost of sales in 2023 increased by 33.5% compared to 2022 and exceeded 76.15 billion rubles. Gross profit increased by 13.9% (to 45.32 billion rubles), profit from operating activities - by 33% (to 24.29 billion rubles), profit before tax - 2.2 times (to 27.9 billion rubles).
VSMPO-Avisma's short-term liabilities in 2023 increased by 21.1% compared to the volume of one year ago - to 124.9 billion rubles. The total amount of liabilities increased by 14.2% - to 216.8 billion rubles.
The reporting of VSMPO-Avisma under RAS reports that in 2023 the value of net assets amounted to 278.67 billion rubles against 101.18 billion rubles a year earlier. In 2023, revenues from the sale of products of goods, works and services amounted to 101.99 billion rubles, which is 25.8% more than in the previous year.
Other revenues of the company in 2023 increased 2.2 times - from 20.34 billion rubles in 2022 to 44.122 billion rubles. Other group expenses in 2023 increased 1.7 times, from 20.91 billion rubles to 35.24 billion rubles.
VSMPO-Avisma develops a full technological cycle of titanium production: from processing raw materials to the production of finished products with a high degree of mechanical processing. By April 2024, there is no information about the company's shareholders.[1]
History
2023: Dmitry Trifonov's appointment as CEO
On July 17, 2023, the world's largest titanium producer VSMPO-Avisma announced the appointment of Dmitry Trifonov as the new general director. The employment contract with him was concluded for three years. Read more here.
2022: Rolls-Royce's rejection of Russian titanium
Rolls-Royce stops purchasing Russian titanium for aircraft engines amid the start of the Russian military operation in Ukraine. The CEO of the company, Warren East, announced this on February 24, 2022. Read more here.
2020
Increased supply of raw materials for dental implants
As it became known on November 17, 2020, the world's largest titanium manufacturer VSMPO-Avisma began to supply more raw materials for dental implants after falling orders from customers in the aircraft industry, including Boeing and Airbus. The company also increased shipments to manufacturers of welded pipes. Read more here.
Criminal case against ex-general director Mikhail Voevodin
In August 2020, investigators opened a criminal case against the former general director of the VSMPO-Avisma corporation, Mikhail Voevodin, who left his post ahead of schedule in early May.
The board of directors of VSMPO-Avisma was at that time headed by the head of Rostec, Sergei Chemezov. State corporation Rostec owns 25% plus 1 share.
Reduced production plans and new management
In mid-April 2020, the corporation announced a change in the production program due to COVID-19, reduced the plan for the production of titanium commodity products in 2020 from 39 thousand tons to 26.5 thousand tons, sponge titanium - from 44 thousand tons to 35 thousand tons. The company introduced new top managers and specialists in anti-crisis management into the management.
2007: The world's leading aircraft manufacturers use the company's products
The partners of VSMPO-AVISMA corporation are the leading foreign aircraft manufacturers: Boeing, Airbus, SNECMA, Rolls Royce, Pratt & Whitney and others (in total - more than 300 companies in 48 countries of the world).
For 2007, the company is the leading supplier of aviation titanium for Airbus and the second for Boeing.
70% of products are exported. The corporation provides up to 40% of Boeing's titanium needs, 60% of EADS's needs, 100% of Embraer's.
In addition, VSMPO-AVISMA supplies titanium and aluminum (and products from them) for other sectors of the economy, and also produces consumer goods, including forged wheels. VSMPO is one of three Russian companies with Nadcap international accreditation for manufacturers in the aerospace and military industries.
2006: 23.9 thousand tons of titanium products produced
The company in 2006 produced 23,900 tons of titanium products (in 2005 - 21,000 tons)
2004: Establishment of VSMPO-AVISMA Corporation
On September 21, 2004, at an extraordinary general meeting of shareholders in the city of Verkhnyaya Salda, a resolution was made and the Agreement "on reorganization in the form of the merger of OJSC AVISMA (OJSC AVISMA Titanium-Magnesium Plant) with OJSC VSMPO (OJSC Verkhnesaldinskoye Metallurgical Production Association)" was approved with the transfer of all rights and obligations of OJSC AVISMA to OJSC VSMPO. December 28, 2004 by the decision of the joint general meeting of shareholders in the city of Verkhnyaya Salda - the Company was renamed the Open Joint Stock Company "VSMPO-AVISMA Corporation."
In early 2008, it was announced the signing of a long-term contract with the French company Safran SA, which brought VSMPO-AVISMA to the position of the main supplier of titanium to a group of international manufacturers. Contract amount over $300 million.
1990s: Crisis and privatization
In the early 90s of the XX century, the collapse of the USSR led to an almost complete cessation of orders from the state for aircraft and defense equipment. This led to a sharp decrease in demand from domestic consumers for AVISMA and VSMPO products, a drop in production volumes, and put enterprises on the verge of bankruptcy. In 1992, the production of titanium sponge at AVISMA decreased by 14%, and in 9 months of 1993 it fell by another 30%. One of the ways out in this situation was the privatization of both enterprises. On February 18, 1993, VSMPO was transformed into a joint-stock company.
On July 17, 1992, a working commission was created to privatize the Bereznikovsky Titanium-Magnesium Plant (BTMK) under the chairmanship of General Director E. D. Samusik. On October 1, 1992, the commission prepared and submitted to the regional property management committee a plan for the privatization of the plant, an act of property valuation and a charter of the joint-stock company. On November 10, 1992, the state registration of AVISMA joint-stock company (AVISMA JSC) took place. In 1993, Menatep Bank received control over the enterprise. In November 1993, the first meeting of shareholders of AVISMA JSC was held, at which Mikhail Khodorkovsky, one of the founders and owners of Menatep Bank, was elected the first chairman of the Board of Directors of AVISMA JSC. In 1994, at the investment competition, Mayak, controlled by Menatep Bank, acquired a 10% stake in AVISMA JSC from the state under guarantees of investments in the plant in the amount of $36 million, but never fulfilled its obligations. In 1999, the Russian Federal Property Fund accused buyers of not fulfilling the investment program and began litigation for returning 10% of the plant's shares to state ownership. The judiciary decided to return the shares to the state, however, it was not possible to do this, at that time Mayak was liquidated. In 1997, ROSPROM CJSC, a company managing stakes in enterprises owned by Menatep Bank, sold a 70% stake in AVISMA JSC through the Russian representative office (CJSC IC Kreditanstalt-Grant) of the Austrian investment bank Kreditanstalt Investment Bank (Kreditanstalt) to the American billionaire Kenneth Darth. In 1998, Kenneth Darth and his partners exchanged with the owners of VSMPO OJSC, 70% of the shares of AVISMA OJSC for 28% of the shares of VSMPO OJSC. Soon, the owners of VSMPO OJSC Vyacheslav Bresht and Vladislav Tetyukhin bought out this block of shares.
In 1994, AVISMA became a member of the International Magnesium Association. Until January 24, 2005, the company was called the "Open Joint Stock Company" Verkhnesaldinsky Metallurgical Production Association '. "
1950s: Development
In the 1950s of the XX century, the rapid development of aviation and rocket technology began in the USSR, the creation of a domestic submarine fleet and the nuclear industry. All this required the use of new materials that met strict performance requirements, one of these materials was titanium. By the decision of the Council of Ministers of the USSR of June 21, 1956, the plant in Verkhnyaya Salda was tasked with starting large-scale production of ingots and semi-finished products from titanium alloys. On the basis of the Bereznikovsky Magnesium Plant (BMZ), it was planned to build a new titanium-magnesium plant with the production of 8 thousand tons of titanium in ingots per year.
In 1956, at Plant No. 95, the development of technology for the production of stamping and forging from titanium alloys, and pressing titanium profiles began. On February 17, 1957, the first titanium ingot of the BT 1-1 alloy weighing 4 kg and a diameter of 100 mm was melted. On February 25, 1957, Plant No. 95 merged with the Factory of Rolled Goods from Heavy Non-Ferrous Metals and Alloys (Plant No. 519) with the assignment of the combined plant number - No. 95, Gavriil Dmitrievich Agarkov, who headed Plant No. 95 since 1952, was appointed director of the combined enterprise. Since 1958, the company began full-scale production of primary titanium, since 1959 - stamped and pressed products from titanium alloys, and in 1960 a technology for the production of high-grade (70%) ferrotitane was developed and introduced. On June 29, 1961, Plant No. 95 was renamed the Verkhnesaldinsky Metalworking Plant (VSMOZ).
On February 8, 1960, the first block of sponge titanium was obtained at the Bereznikovsky Titanium-Magnesium Plant (BTMK).
From 1957 to 1990, VSMPO was the only supplier of titanium for the Soviet aerospace and military industries. In 1989, the company smelted more than 100 thousand tons of titanium ingots, which is 30% more than other titanium producers in the world. In 1991, the volume of titanium ingots smelted at VSMPO exceeded the total production of titanium ingots in the USA, Europe and Japan combined by 50%, at the same time, up to 55% of the titanium produced went to the needs of the aviation of the Soviet Union, 15% - for space development and rocket technology, up to 25% - for the fleet, the rest - for the basic sectors of the economy.
1941: Creation of a backup plant in the Urals
After the first bombing of Plant No. 95 in July 1941, a decision was made to create a backup plant in the Urals in the city of Verkhnyaya Salda, the plant was assigned the number - No. 491. On October 8, 1941, the complete evacuation of Plant No. 95 from the Moscow Region to the city of Verkhnyaya Salda, Sverdlovsk Region, begins. On November 19, 1941, Backup Plant No. 491 merged with the evacuated plant near Moscow, the new company was assigned the number - No. 95. From 1941 to 1944, Plant No. 95 was the only supplier of semi-finished products from aluminum and magnesium alloys for the needs of the USSR aviation and fleet.
With the outbreak of World War II, significant changes were made to the initial design for the construction of BMZ, which concerned the technological scheme (refusal to transfer chlorine), production capacity and the master plan of the plant. On January 16, 1942, a simplified project for the construction of BMZ was approved, developed by the general designer of BMZ - the Leningrad Institute "Giproaluminiy." On June 5, 1942, the State Defense Committee (GKO) decided to build the first stage of BMZ, designed for production capacity - 3.3 thousand tons of magnesium per year. On June 22, 1943, the first ingot (rubbish) of magnesium was obtained at the Bereznikovsky Magnesium Plant (BMZ), which was cast by the bathtubs of the electrolysis shop Porfiry Barmak and Vasily Dziuba. This day is considered the birthday of the Berezniki branch of the Corporation - "AVISMA."
For selfless work during the Great Patriotic War, on September 16, 1945, Plant No. 95 in Verkhnyaya Salda was awarded the Highest State Award of the USSR - the Order of Lenin, and on April 16, 1946, the Red Banner of the State Defense Committee (GKO) was transferred to the museum of the enterprise for eternal storage.
1929: Plant construction begins
In February 1929, the construction of a plant for the production of semi-finished products from aluminum and magnesium alloys began at the Setun station in the Moscow Region. On July 1, 1933, the enterprise was put into operation. It was the first specialized plant in the Soviet Union for the production of semi-finished products from aluminum and magnesium alloys for aircraft and aircraft engines. In January 1934, the plant was transferred from Glavtsvetmetprocessing to Glavaviaprom. The plant is assigned the number - No. 95.
In the late 30s of the XX century, when the war with Nazi Germany had already swept half of Europe, the Soviet Union was in a hurry to strengthen its defense capability. The capacities of traditional magnesium producers - Dnepropetrovsk and Solikamsk plants - were clearly not enough. In 1939, the Economic Council of the USSR decided to create another magnesium plant in the city of Berezniki, Perm Region (from March 8, 1940 to October 2, 1957 - Molotov Region.). On October 11, 1940, the decision of the Central Committee of the All-Union Communist Party of Bolsheviks and the government of the Soviet Union "On the construction of a magnesium plant in the city of Berezniki, Molotov Region" was published. In April 1941, the technical project and the general estimate for the construction of the Bereznikovsky Magnesium Plant (BMZ), which became the founder of AVISMA, were approved. The project provided for a colossal productivity for that time - 11 thousand tons per year of finished magnesium products and a technological scheme that ensures the transfer of 50% of chlorine produced to third-party consumers. In addition, the scheme of supplying BMZ with electricity from its own thermal power plant was considered.
Notes
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