Lancelot wrote:It all sounds fine and dandy until you realize a company like Zvezda isn't flush with cash to begin with. They have been bankrupt before. They are the only supplier. And the client needs these gears for serially produced ships for a state defense order. This is not the first time Zvezda are making gears for Project 22350 either. So the client knows they can deliver the product, and the time and cost to make it is well established. They should have a proper long term contract for series production instead of trying to penny pinch and order in single units like this. Long lead items, this is claimed to take 19 months to make, also should be ordered well in advance.
I agree for the need of long term contracts, but if the company is in so dire need of cash it is also possible it has serious management and investment problems, especially with all the products requested by the russian navy (i.e. among the rest, high speed diesels for the 22800 missile corvettes and reduction gears for 22350). The problem is that probably after privatisation in the 90s the production capabilities were never improved, new models were not developed and technical personnel was probably underpaid.
So the only thing they could really build was the very old soviet engines from the 1950s, and at a snail's pace.
Then after finally Russian navy started finding the money to order new ships, probably Zvezda Management oversold their capabilities in order to win the contracts.
I do not know why there are problems in the 22350 reduction gears production rates, but since they do not want or are not able to improve their capabilities, they should just give back the company to the state or at least to a serious new owner who will need to guarantee important investments to ensure new production lines, new diesel engine design and production rates which satisfy the navy's demands.
The state should not fix their problems if it remains a privately owned company. Better in that case properly bankrupt them and start over.
GarryB wrote:Paying money upfront almost never solves any problems, and runs the risk of corruption... especially with privately owned companies that are in the red.
Nationalise them and then fix them.
Wish the west would hurry up and steal Russias assets abroad... then they can just sweep through and seize the assets and shares of westerners that are holding Russian companies hostage...
Yeah, sometimes nationalising industries is not the ideal way, especially if governmental crooks are sent there to "manage" them, but if it is a strategic industry and the managers are incompetent (furthermore if it is a former state industry which was "privatised" in the 90s) then there is no alternative.
And hopefully national industries nowadays are better managed than in the past.
If it was a privately created industry from the inventive and effort of its founder, and which encountered difficulties because of external factors, then I would say that the state could (and should) help it via providing long term loans with little or no interest.
But since Zvezda was a state owned company founded in 1932 in soviet union (and stolen in the 90s) and now probably just owned (at least partially) by either incompetent people or by crooks who are only descendants or friends of the people who stole it 30 years ago, I would say that there are enough reason to expropriate it. The owners can be paid the same amount of money that was used to "buy" it in the 90s and sell it to the state, or end up in prison for compromising a strategic industry in semi-war times.
To clarify: Stealing a state company is not not private entrepreneurship.
by the way, here below some data I found in Wikipedia, I do not know if the ownership changed after 2011.
(Data as of April 18, 2011 and taken from the official website)
Among the major shareholders of the Company:
OJSC "Hermes Company" (St. Petersburg) - 27.06%
CJSC Depository and Clearing Company (nominee holder) - 45.29%