Middle East a vital market for Russia's Rostec, says CEO

Rostec CEO Sergey Chemezov says state-owned corporation will offer regional customers the tools necessary for 'smart' cities
Middle East a vital market for Russia's Rostec, says CEO
The Middle East market is of “extreme importance” to Russian state corporation Rostec, according to CEO Sergey Chemezov.
By Bernd Debusmann Jr
Sun 12 Nov 2017 11:59 AM

The Middle East market is of “extreme importance” to Russian state corporation Rostec, according to CEO Sergey Chemezov.

In an interview with Arabian Business, Chemezov said that existing confidence in Rostec-manufacturered weapons in the region gives the company confidence that “the production of the Russian defense industry does not lag behind its competitors, and even overcomes them by certain parameters.”

Aside from the machinery, weapons and equipment for which the company is known, Chemezov said that an “an important element” of Rostec’s development strategy in the region are IT-solutions that it can offer countries in the region.

“In particular, we offer services of digitisation and unification of control processes in the defence and civil spheres for the partner countries intelligences services,” he said.

“We plan to efficiently increase the share of the 'smart' civil products in the corporation’s portfolio, on the account of complex products and sophisticatedly integrated projects. We intend to reach this by gradually reducing single machine shipments.”

He added: “Our strategy envisages a shift from metal to intelligence, with an aggressive growth and movement towards new fast growing markets.” 

Chemezov noted that Rostec is currently working on a number of “ecosystem projects” focused on supporting smart cities, digital healthcare, data storage, and industrial Internet of Things systems, as well as systems designed to intercept unmanned aerial vehicles.

Additionally, Chemezov said that the state-owned Rostec will increasingly look towards private partnerships that will enable the company to “attract additional investments, necessary competencies, both technological and managerial, as well as expand our access to the market.”

“Private investments promote increasing the competitiveness of our products in the global high-tech industry markets,” he added.

“The selection of private investors for the corporation’s holdings and companies is performed on a competitive basis.”

Partnerships between the state and private capital, Chemezov added, are “an efficient way of reforming [Russia’s] national industry” and enable the financing needed for the implementation of long-term investment programs and the financial results envisaged by Rostec.

Chemezov also noted that, despite a “low level” of relations between Russia and the United States, Rostec remains “interested in building mutually profitable partnerships [with American companies] in the civil industry segment.”

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