06 February 2018

We need to develop the success of the specialized machine industry

Feb. 5, Moscow - Over 200 people took part in the conference "Development of construction and road machinery industry in Russia". The management of Rosspetsmash Association, the heads of the Ministry of Industry and Trade of Russia, the representatives of the Federation Council of Russia, directors of the leading producers of road-building and utility machinery, and mass-media representatives were among the participants.

 

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The participants discussed the results of the industry development in 2017 and the plans for 2018, the concept of development strategy for road-building machinery industry until 2030, the state support measures, the competition with foreign producers, the problem of counterfeit products and other issues.

The conference was opened by Konstantin Babkin, President of Rosspetsmash Association. According to him, in 2017, the Russian manufacturers of road-building, utility, airfield, towing, forestry and fire fighting machinery delivered their products to the domestic market for a total amount of RUB 72 billion, while in 2016 the delivery amounted to RUB 66 billion.

These successes were courtesy of the 170 companies in the industry and effective mechanisms of state support provided by the Ministry of Industry and Trade.

Also, for three preceding years, the companies have invested in RUB 945.5 M in R&D and brought more than 15 new mobile machines to market.

 

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Rosspetsmash Association suggested a number of mechanisms to create equal conditions of competition among the Russian and foreign manufacturers. They include the need to raise customs duty rate to the tariff permitted under WTO commitments, to introduce a recycling fee for semitrailers weighing over 10 tons, to tighten the requirements of the Government Decree No. 719 by adding asphalters, asphalt plants, concrete mixing plants, and pipe layers to the list.

Rosspetsmash Association also suggests making amendments to the Government Decree No. 656 that would prevent the suppliers from abusing leasing to bypass the ban on the admission of certain types of foreign equipment to participate in public procurement for state and municipal needs.

Yevgeny Korchevoi, the Director of the Department of agricultural, food, construction and road machinery of the Ministry of Industry and Trade of Russia, noted that the state support enabled industry to make a great step forward, "Such programmes as the subsidising of leasing of road construction machinery and subsidies for the production of pilot batches of products were introduced just in 2017. A whole set of measures for export development was implemented".

Yevgeny Korchevoi informed that the Ministry was elaborating such mechanisms of state support as subsidies on loans for the purchase of road-building and utility machinery so that the rate did not exceed 5 per cent.

He stated that further development of the industry requires not only winning the domestic market, but also increasing exports. Also, the R&D needs a significant boost.

 

 

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Oleg Tsepkin, a member of the Committee on Constitutional Legislation and State Construction of the Federation Council, a representative of the Legislative Assembly of the Chelyabinsk region, noted the importance of amending the Technical Regulations of the Customs Union "On safety of wheeled vehicles" to introduce the obligatory certification for the construction and road machinery products.

He supported the proposal on introduction of utilization fee on semitrailers and the ban on using budget funds to purchase foreign machinery by the regions.

During the conference, a concept of development strategy for production of construction, road, utility, forestry, fire-fighting and airfield ground equipment in Russia was presented. Vyacheslav Pronin, an assistant to the President of Rosspetsmash Association, told about the main challenges faced by the machine engineers, the main indicators outlined in the document, basic principles and priority actions of the strategy.

After discussion, the concept was unanimously approved.

 

 

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Furthermore, Rosspetsmash Association presented DEMOSTROY-2018, the international specialized exhibition of construction and road machinery. Its unique character is in the fact that one space will be used to organize test drives and demonstration of machines made by the leading manufacturers in the industries of construction, municipal, airfield, forest and other machinery.

The management of the plants took an active part in the discussion on each issue, suggested their proposals and thanked the the Ministry for its support, which indeed contributes to development, and thanked Rosspetsmash Association for defending the interests of domestic producers.