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Informative Interview
Course To Global Presence. Rosatom enterprises have a lot to boast on global market
Course To Global Presence. Rosatom enterprises have a lot to boast on global market
9.06.2013 05:07 | Vestnik Atomproma, #5, 2013
- You are the head of JSC Rusatom Overseas for almost a year. What have been achieved?
- The main thing I’d like to mention is that the organization structure of the company has been established. We’ve formed an efficient management team which includes both experienced staff from nuclear industry and active business leaders from completely different business areas. The management model of the company has been elaborated, main business areas determined, decision making toolkit tuned. We have completed a great job to increase our global presence by establishing marketing offices of Rosatom in six countries: Ukraine, Czech Republic, Hungary, Slovak Republic, South Africa and Singapore. These offices operate under the direct supervision of Rusatom Overseas as its representative offices or branches.
- What tasks has the company to accomplish?
- Firstly we will focus on activities to achieve global technological leadership of Russian nuclear industry and to increase global presence of Rosatom. Surely, Rusatom Overseas will not be able to fulfill these ambitious tasks on its own, but we are to set the vector for sustainable development and to direct the efforts. One more important detail not to forget is that Rusatom Overseas is a business organization and we have to implement economically viable projects. In short term perspective we intend to achieve the break-even point and after 5-7 years to generate profit on a regular basis.
- How would you describe the main business areas of the company? Are you focusing on NPPs construction projects or have a broader perspective?
- The key business area for us is the management of Rosatom products portfolio outside of Russia. Thus our main product in a broad view is Russian nuclear technologies. Speaking about nuclear technologies I bear in mind mostly power generation although our range of activities is much wider. That is why we take part in tenders for NPP construction also in the role of project developer for built-own-operate projects. Step by step, the projects in Czech Republic, Turkey, Jordan that had started before Rusatom Overseas was established are being transferred into our area of responsibility; we step into ongoing negotiations in Asia and South America as the key player. A global company is known for ability to diversify activities following the varying market conditions. In case a client demonstrates interest in alternative sources of generation we are ready to participate in such projects as well. Rosatom vast technological and production resources enable us to provide services in practically every industry branch. This includes a wide range equipment supply and turn-key contracts implementation. Moreover we want to participate not only in contracts for generation but also in electricity sales projects. Proactive development of energy trading is envisaged in our plans.
- What are the distinctive features of Rosatom’s products?
- We have a unique product for the global market –Rosatom complex offer in nuclear energy. The gist is the integration of separate solutions, products and services in one offer, which enables to create an efficient and reliable nuclear industry in a certain country from scratch.
- Do you have plans to develop nuclear technology projects outside generation sector?
- These plans are part of Rosatom radiation technology programme. The commercial potential of this sector is obvious – at present the world market of radiation technology equals to 20 bln USD while growing 10% per year. Rusatom Overseas include these technologies in the products line for such areas as nuclear medicine, irradiation centers, and ecology. As a developer for the product we will start with analysis of demands at the foreign markets, and then proceed with the analysis of capabilities of Russian companies to meet those demands. Coupling the results of analysis will result in revisions and/or upgrades to finalize the product for customers.
- Are revisions required for non-energy products?
- I’d like to point the fact that many products and services in radiation technology application sector require significant upgrade and commercial efforts which in turn create certain risks. And from here one more of our activities begins, namely start up and coordination of venture projects at Rosatom enterprises.
- You’ve mentioned that JSC Rusatom Overseas has established 6 foreign offices over the world. What tasks do they face?
- In our view marketing offices of Rosatom will serve as a major tool for global promotion of Rosatom technologies to the world market. The logic of marketing offices operation is based on their proactive position. The task for managers and employees of the representative offices and branches is to seek for, evaluate and initiate regional business development projects with the participation of Rosatom enterprises. One other important task is to look for partners and investors capable to become members of our global supply chain. And surely local offices should interact with wide range of stakeholders, government bodies and media.
- On which markets are you the most active now?
- Being a business oriented company we consider the profitability as the key factor. So we could say that the whole world is in the field of our interests. Clearly, Rosatom products and services contribute to solving problems which to a certain extent all countries are facing, and thus our presence should be global.
- But there are regions where Rosatom has traditionally strong positions.
- Surely, for example four out of six Rosatom offices are located in Central and Eastern Europe. Here our technologies are well known and enjoy a well-deserved respect. Besides that active social and technological development of this region results in turning it into maximum attractive place for main rivals competition. That is why whatever strong position we have in the region now we still have to increase our marketing efforts in the future.
- What are the advantages of Asian market?
- We have opened our office in Singapore – one of the biggest economic centers in Asia. This part of the world is taking the lead in the increase of energy consumption and where according to the forecast the growth of total installed generating capacities will be the highest. Also we look at Africa with an interest – the heavy deficit of energy is reported there and, in our view, there is a room for wide application of radiation technologies. We also start opening South America for our business. I’d like to add that Rosatom products are capable to earn their shares on the matured markets in Western Europe and North America, and we are actively working there.
- What is your view on the competition on the global nuclear technologies market? What advantages will make it possible for you to gain and maintain leading positions?
- Although there is a fierce competition in nuclear technologies the present situation on the global market is likely to be favorable for us. For example, in the area of NPP construction the VVER-1200 design project is not only the most up-to-date and safe but also has such key competitive advantage as referentiality. Our rivals have not achieved it yet.
- What is unique and what are the advantages of Russian technologies?
- Rusatom Overseas has in its background more than 250 Russian nuclear enterprises which provide us with an opportunity to offer complex solutions in power industry –from uranium mining to grid development. And finally we have certain unique technologies including those in radiation technology. But our rivals also benefit from integration processes, they are creating powerful strategic alliances and diversify their business. It is becoming obvious that just having advantages is not enough for achieving success. It’s necessary to use these advantages and convert them into cash flow. And to achieve this we have to think globally and market-orientedly, making the right decisions quickly.
I expect this time will be no different.