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WHYWEDI D FORGETHOW TO CONSTRUCT PLANTS Ol gaRuban Pr e pa r e dwi t he xpe r ts uppo r to f Wewoul dl i ket obr i ngt oyourat t e nt i onSpe c i al Re por tof“Expe r t ”Magazi neonEngi ne e r i ngand I ndus t r i alDe ve l opme nti nRus s i a Managi ngpar t ne rofSpe c t r um Gr oupof Compani e sMr .Vl adi mi rI vanovf e at ur e s i nt hi sRe por tase xt e r nale xpe r t
Thi si sa na br i dge dve r s i onoft hea r t i c l e , t or e a dt hef ul lt e xtpl e a s ef ol l ow t hel i nk: ht t p: //e xpe r t . r u/e xpe r t /2 0 1 3 /1 1 /vs ya na de z hda na i nt e gr a t or ov/
La unc hofne we ngi ne e r i ngpl a nt s ,me t a l l ur gi c a la nd c he mi c a lf a c t or i e s ,oi l r e f i ni ng c ompl e xe s ,powe r pl a nt sa nd ot he ri ndus t r i a l f a c i l i t i e si snotf r e que nti nne w Rus s i a nhi s t or y. Suc he ve nt sa r ea l mos tuni que .Me a nwhi l e , l os s e sofi ndus t r i a lc a pi t a l i z a t i onha ver e a c he d c r i t i c a l7 5 %. Wha ta r et her e a s onsofc hr oni cunde ve l opme nt ? Wea s ke dt hema i npl a ye r s ,c r e a t or sofi ndus t r i a la s s e t s : c l i e nt swhode s pi t eofa l lunc e r t a i nt i e sr i s k t o i nve s ti nt o ne w e nt e r pr i s e s ; c ont r a c t or s who unde r go s e ve r er i s ks a nd f ul f i l lbus i ne s si de a si ns t e e la a ndc onc r e t e . St r a nge l ye nough,noonei sr e a dyf orc ons i s t e ntde ve l opme nti nmode r nRus s i a . Thepr oc e s sofuni nt e r r upt e dr e pl e ni s hme ntof i ndus t r i a lc a pi t a l i z a t i on wa sa bor t e d ba c ki n 1 9 8 0 s ,a nd e nt i r e ge ne r a t i on di d notbui l d a nyt hi ng.Pe opl e ha ve l os tc our a ge t os t a r t ma j or ,c ha l l e ngi ngpr oj e c t s .Ski l l sofma s s i ve , f r e que nta nd pr of e s s i ona lc ons t r uc t i on ha ve va ni s he d.Thema j or i t yofma r ke tpa r t i c i pa nt s ope r a t ebe yondt hec ompe t i t i vef i e l d,wa s t i ng t he i rr e s our c e si ne f f i c i e nt l y,a nddoe snotl ook f ort hef i na lr e s ul t . I ti snow whe nt hebr e a kt hr oughi sc ons t r uc t i oni sa tt hedoor .Ane r aofunf i ni s he dc ons t r uc t i ons e e mst obeove r . Ma j orpl a ye r sha veac ha nc et oge ta dva nt a ge one xpe c t e dde ma ndpe a k, a ndt ot ur nnotonl y i nt oi nt e gr a t or sofc ompl e t ec yc l ea ndde ve l op t he i rown bus i ne s sbr a nc he s ,butt oc r e a t ea bus i ne s s ne t wor k, be c ome l a ndma r ks a nd c r e a t eas e pa r a t edi vi s i ont of a c et hec ha l l e nge s t oge t he rwi t ht hec ount r y.
Wi l lt heRus s i a nc ompa ni e sda r et ot a ket ha t l e a p?Ors ha l lwel e a vet hi sc r uc i a le c onomi c s e c t orf ort hef or e i gne ngi ne e r i ngc ompa ni e sa nd putup wi t ht he i rs upr e ma c yf oral ongt i me ? Thi si st hema i ni nt r i gueoft hec omi ngde c a de . Whe ns l i c e sa r et oos ma l l Pr e hi s t or y of mi s e r a bl e Rus s i a n br a nc h of i ndus t r i a lde s i gn a nd c ons t r uc t i on ha vegr e a t a c hi e ve me nt s . USSRl ove dgr e a t ,gi ga nt i cpr oj e c t s :hundr e dsof c ompl e xt e c hnol ogi c a l pr oj e c t s we r ei mpl e me nt e d, ma nyoft he m we r euni que . Al l r e qui r e d c ompe t e nc e swe r ede ve l ope d–f r om de s i gnt o c ons t r uc t i ona nds t a r t upope r a t i ons . Howe ve ri n t hef i r s tha l fof1 9 9 0 st hi spowe r f uls ys t e m of i ndus t r i a lc ons t r uc t i on wa s de s t r oye d.Onl y s omes ma l lbi t sa ndpi e c e soft ha ts ys t e m we r e us e df orRus s i a nc ons t r uc t i onbr a nc h. Unl i ket he we s t e r nc ount r i e swhe r ema j ore ngi ne e r i ngc ompa ni e shol dt heke yc ompe t e nc e s ,i nUSSRs uc h c ompe t e nc e swe r ehe l di nr e s e a r c h,de s i gna nd e ngi ne e r i ng or ga ni z a t i ons . Cons t r i c t i ona s s e mbl y gr oups we r es e pa r a t e e nt i t i e sf orde ve l opme ntofne ws t r uc t ur e s .The whol ec ha i nwa sc ont r ol l e dbyt hemi ni s t r i e sa nd t he i rl oc a lde pa r t me nt sofc a pi t a lc ons t r uc t i on. The ya l s oc ont r ol l e dt hepr oj e c t sf r om t hes t a r tt o l a unc h. Whe n pl a nne de c onomy wa sc a nc e l l e d,t he whol es ys t e mc ol l a ps e di nt of r a gme nt s .Pr i va t i z a t i on ha ve c ompl e t e dt he de s t r uc t i on,a nd c l us t e r soft hos ef r a gme nt sha vebe e nt a ke nby di f f e r e ntpe opl e . The yha ddi f f e r e ntde s t i ny. The ha r de s tdoom wa sl a i donr e s e a r c ha ndde s i gn i ns t i t ut e s–t he ydi dnotf i ndt he i rpl a c ea tt he ma r ke ta ndha ves unk.Cons t r uc t i onc a pa c i t i e s
Sc enar i oofdevel opmentofRus s i anengi neer i ngc ompany Spec t r um Gr oupofCompani es
Spe c t r um ha sde ve l ope df r om t hej oi ntRus s i a nUSA ve nt ur ePe r e s t r oyka , whi c hi n1 9 8 8 – 1 9 9 7r e c ons t r uc t e da dmi ni s t r a t i vebui l di ngs i nMos c ow — r e ne we dut i l i t i e s , i ns t a l l e dmode r ne ngi ne e r i nge qui pme nt , e t c . Spe c t r um f ounde r sl e a r ne dt hewe s t e r na ppr oa c he sa nds t a nda r dsof e ngi ne e r i ngbus i ne s sa ndpr oj e c tma na ge me nt .I n1 9 9 8Rus s i a npa r t ofPe r e s t r oykave nt ur ec r e a t e dt he i rownc ompa ny,a ndt he yf ound i twa smor ec omf or t a bl et oc oope r a t ewi t ht hef or e i gn,notRus s i a n c l i e nt s . Spe c t r um s i gne df i r s tc ont r a c ti n2 0 0 0wi t hAvt of r a mos , j oi nt ve nt ur eofRe na ul tAut omobi l eConc e r na ndMos c ow Gove r nme nt , t oc ons t r uc ta s s e mbl yl i nef orRe na ul tCl i oi nRus s i a . Cur r e nt l yt he c ompa ny of f e r sc ompl e t e pa c ka ge ofs e r vi c e sf or de s i gnofi ndus t r i a lf a c i l i t i e s . Thi si sa na br i dge dve r s i onoft hea r t i c l e , t or e a dt hef ul lt e xtpl e a s ef ol l ow t hel i nk: ht t p: //e xpe r t . r u/e xpe r t /2 0 1 3 /1 1 /vs ya na de z hda na i nt e gr a t or ov/
Thi si sa na br i dge dve r s i onoft hea r t i c l e , t or e a dt hef ul lt e xtpl e a s ef ol l ow t hel i nk: ht t p: //e xpe r t . r u/e xpe r t /2 0 1 3 /1 1 /vs ya na de z hda na i nt e gr a t or ov/
ha ve a l s o di mi ni s he d.Ma j or c ons t r uc t i ona s s e mbl y gr oups ha ve va ni s he d,a nd t he i r wr e c ka ges t i l lf l oa t e di nt hema r ke t–s c a t t e r e d, t i nya ndnonqua l i f i e dpl a ye r s .The r e f or e ,t he ma j or i t y ofne w Rus s i a ne c onomi cbr a nc he s ha dnoma j ora s s e t s , whi c hc oul dnour i s hgr e a t na t i ona lpl a ye r si nt hea r e aofi ndus t r i a lde ve l opme nta nd c ons t r uc t i on ( e xc e ptf orna t ur a l monopol i e s -a t omi c powe re ngi ne e r i ng, r a i l wa ysa nd ot he rs phe r e swhi c ha l s o ha ve t he i rownhe a da c he ) . Wewi l lbef a c i ng t hec ons e que nc e soft ha t c ol l a ps ef oral ongt i me :e ve nnow,a f t e rt wo de c a de s ,Rus s i as t i l lha sne gl i gi bl enumbe rof ma j orpr of e s s i ona lc ompa ni e s ,de ve l ope r sof ne wi ndus t r i a lf a c i l i t i e s . Ros e si ns c r a pya r d Ea r l y2 0 0 0 sma ybet a ke na sar e f e r e nc epoi nt : c ons t r uc t i on de ve l opme nt ma r ke d ha s e me r ge di nRus s i a .Thef i r s tt ot hr ow de ma nd s ur pl us e si nt ot he ope n ma r ke twe r er a w ma t e r i a lc ompa ni e s ,pr i ma r i l yoi lc ompa ni e s . Af t e rt hewor l doi lpr oc e s sha vej umpe df r om 2 5t o1 0 0USD pe rba r r e l ,oi lc ompa ni e sha d f undsa nd ne e dsf orma j ori nve s t me nt si nt o ne wc a pi t a lpr oj e c t s .Che mi c a lc ompa ni e s ,oi l pr oc e s s or s ,i nc r e a s e dt he i ra c t i vi t ya f t e rpe t r ol e um one s .Me c ha ni c a le ngi ne e r i ngc ompa ni e s wokeupi nt hes e c ondha l fofde c a de–t he y ne e de dne w pl a nt swi t hmode r nt e c hnol ogi e s . Ma s s i vei ndus t r i a lc ons t r uc t i oni ni t i a t e dbyt he f or e i gnc ompa ni e sha sa l s oma t c he dt hepe r i od. Af t e r1 9 9 8i tha sbe c omepr of i t a bl et oc r e a t e ma nuf a c t ur i ngpl a nt si nRus s i a .Thema j or i t y ofpot e nt i a lc l i e nt sha dnoe ngi ne e r i ngc a pa c i t i e s . The i rde ma ndha st r i gge dope nma r ke tof
i ndus t r i a l de s i gn a nd c ons t r uc t i on. Thec or r e s pondi ngs e r vi c e sha vea l r e a dybe e n a va i l a bl ea tt hemome nt .Howe ve rt hema j or i t y ofc ont r a c t or s ,s e r vi c e ss uppl i e r swe r et oos ma l l . Thos eyoungf i s he sha vebe e ngr owi ngf ort wo de c a de s , butt hede ma ndsofpot e nt i a lc l i e nt sa r e s t i l lgr e a t e r . « I n Rus s i a weha vegr e a tnumbe rofs ma l l e r e ngi ne e r i ngc ompa ni e s , wi t hs t a f ff r om 1 0t o1 0 0 pe opl e .The ywi l ls l owl ye vol ve .Wi t hi ns ome t we nt yye a r ss omeoft he m wi l lgr ow upc ompe t e nc e sa ndi nc r e a s es t a f ft o1 0 0 0pe opl e .Thos e c ompa ni e swi l lbea bl et oc l a i mf oras e gme ntof s ma l l e rpr oj e c t swi t hc os tf r om 1 0 0t o3 0 0mi l l i on RUR, — be l i e ve sSe r ge yMi s hi n. — Butt he ywi l l ha r dl ybea bl et obr e a ki nt ot hel a r ge rpr oj e c t s s e gme nt ,ove rbi l l i onRUR.The yl a c kr e s our c e s t ot a ket ha tl e a p» . The r ea r e n’ tma nyma j orc ont r a c t or si nRus s i a . Buta sar ul et he ya l s odonotha vet hec ompl e t e s e tofc ompe t e nc e sc ommonf orc l a s s i ce ngi ne e r i ng c ompa ni e s .Howe ve r ,t he r ea r e“ r i ght ” pl a ye r sa mongt hi si nc ohe r e ntpubl i c— pr of e s s i ona lc ont r a c t or s ,wi t hc l e a r unde r s t a ndi ng how t oobt a i nt hemi s s i ngc ompe t e nc e s .The y ha vedi s t i nc t l yhi ghs e r vi c equa l i t ya ndbus i ne s s s t a nda r dsc ha r a c t e r i s t i cofc i vi l i z e dma r ke t s . Whos es i de ? Wha tc a nwee xpe c ti nt hef ut ur e ?I ta l lde pe nds ont hema r ke ta l i gnme nt–whe t he rt her i ghtbe a bl et odomi na t eove rt hes wa mp. Ther i ghtone s a r es t i l lve r yf e wf orgr e a ta nd unde ve l ope d Rus s i a .The ys t i l ldonotha vepr of e s s i ona lc ommuni t y,t he ydonote ve nknow e a c hot he r .Wi l l t hos equa l i f i e d,e ne r ge t i cbuts c a t t e r e d pl a ye r s ove r c omet hes i t ua t i on, ori nc ompe t e nc es wa mp
Spec t r um’ sexper i enc ei ni ndus t r i alc ons t r uc t i on Spe c t r um de s i gne dc ons t r uc t i onoff l oats he e tgl as spl antPi l ki ngt onGl as s anddai r ypl antDanonei nMos c ow r e gi on;e l e c t r i c alpr oduc t spl antf or Fr e nc hc ompanySc hne i de rEl e c t r i ci nLe ni ngr adr e gi on, andot he rf ac i l i t i e s . Maj orc l i e nt sar ef or e i gnc ompani e sl ooki ngt ohavepr oduc t i onc apac i t i e s i nRus s i a.“Weonl yde alwi t hpr of e s s i onalc l i e nt swhounde r s t andwhat t he ywantt opr oduc ei nRus s i a,whi c ht e c hnol ogyt he yl ookt oi mpl e me nt . Ac c or di ng t o Rus s i an s t andar dswede s i gn abui l di ng f ort he m whi c h Danonepl anti nMos c ow r e gi on e nc l os e st he i rt e c hnol ogi c all i neand de ve l op al lt her e qui r e d ut i l i t i e s– t r ans f or me rs ubs t at i ons ,t r e at me ntpl ant s ,r oads ,e t c .–e xpl ai nsVl adi mi r I vanov, f ounde randmanagi ngpar t ne roft hec ompany. –Spe c t r um par t i c i pat e di nc ons t r uc t i onofmor et hant hi r t yi ndus t r i alf ac i l i t i e s . ” I ndus t r i alde s i gnbr i ngst hec ompanyne ar l y5mi l l i onUSD aye ar .The e xe c ut i ve sl ookt oi nc r e as et hepac ebygr adualt r ans f or mat i onofs pe c t r um i nt oac ompl e t ec yc l ee ngi ne e r i ngc ompany.Spe c t r um hasal r e adyt ake na s hotasan i nt e gr at ori nt hepr oj e c t swi t ht r us t e dc l i e nt s .Thec ompany mas t e r smi s s i ngc ompe t e nc e sandge t se xpe r i e nc ei nc ompl e t epr oj e c tmanSc hne i de rEl e c t r i cpl ant age me nt ,t i l lt hef ac i l i t yac c e pt anc e . i nLe ni ngr adr e gi on
Thi si sa na br i dge dve r s i onoft hea r t i c l e , t or e a dt hef ul lt e xtpl e a s ef ol l ow t hel i nk: ht t p: //e xpe r t . r u/e xpe r t /2 0 1 3 /1 1 /vs ya na de z hda na i nt e gr a t or ov/
s uppr e s s e st he m a nd t he y woul ds e l lt he i r a s s e t st ot hef or e i gne r s ? Ther i ghtone sde f i ni t e l yha vegut s . The ys t r i ve t o obt a i nt hemi s s i ng c ompe t e nc e s .Someof t he ma r er e a la c e si nt hea r e a–t he yhi r ef or e i gn ma j ore ngi ne e r i ng c ompa ni e sa ss ubc ont r a c t or s .Thi si st hes hor t e s ta nd s t e e pe s tpa t hs pos s i bl e , whi c hl e a dst opr of e s s i ona lpe a k–f ul l c yc l ei nt e gr a t or s . I ti sgoi ng t o be a gr e a tbur s t .Ana l ys i sof i nve s t me ntpr ogr a msofma j orc ompa ni e sa nd s t a t epr ogr a msofmode r ni z a t i ona ndde ve l opme nts howst ha tc a pi t a li nve s t me nt si nt opr oduc t i on, pr i ma r y pr oc e s s i ng a nd t r a ns por t a t i onofoi la ndga s( i nc l .ga sl i que f a c t i on)s ha l lr e a c h1 7 . 6t r i l l i onRUR t o2 0 2 0( i n 2 0 1 1pr i c e s ) .I noi la ndga sbr a nc hi nve s t me nt pr oj e c ti nt hea mountof0 . 7t r i l l i onRUR a r e pl a nne df ort hes a mepe r i od.He a tl i ne se xpe c t 8 . 6t r i l l i onRUR. I ft he r i ghtone swi l lbe a bl et o uni t ea nd de ve l opc ommons t r a t e gybyt hemome ntt ha t wa vec ome s ,t he ywi l lbea bl et oi nf l ue nc et he ne w de ma nd. Att hes a met i met he ywi l lha vee xpa nde df i e l d f ort he i ra c t i ons :ne wc l i e nt si nc r e a s ema r ke t s pa c e a va i l a bl e f or i nde pe nde nt
pl a ye r s–f r om 2 5 3 0now t o4 0 5 0 %.Ther i ght onewi l lf e e lt ha tt he ya r ene e de d,wi l ls e et he gr owt hpe r s pe c t i ve s ,wi l lf e e las t r ongdr i vef or de ve l opme nt ,a ndt hes wa mpwi l lha venot hi ng t odobutt or e t r e a t . Thi si st hemos tf a vor a bl es c e na r i o. Butones ha l l r e me mbe rt ha ta pa r tf r om t hes wa mpt he r ea r e a tl e a s tt oot he rf or c e swhol ookt oc ha nget he ma r ke ti nt ot he i rf a vor . Thef i r s tonewhos ha ke s t he t r e e oft he r i ghtc ompa ni e si st he s t a t e . “ We r e a l l y wor r yt ha tt he e nt i r e Rus s i a n e c onomyma ybe c omes t a t e owne d.Andi ndus t r i a lc ons t r uc t i onma r ke twi l lbes e r vi c e se i t he r byt hes t a t e ,ors t a t e c ont r ol l e dc ompa ni e s .Thi s t e nde nc yc oul d bec l e a r l ys e e n wi t hi nl a s t1 2 ye a r s–s a ysVl a di mi rI va novf r om Spe c t r um.– I nt hi sc a s ewewi l lha veat i l yf i e l df orour bus i ne s sa ndwewi l ldi e ” . Theot he rt hr e a tf ort her i ghti si n oppos i t i on wi t ht hema j orf or e i gn e ngi ne e r i ngc ompa ni e s whoha vebe e nl e a r ni ngt owor ki nt heRus s i a n ma r ke tf or2 9ye a r s . I t ’ sha r dt of or e s e ehow a c t i vet her i ghtone sc a n be a nd how f a s tbot h bl a c k hor s ec a nr un. Anywa y,t heout c omei sne a r :wes ha l lknow whowi l lda r et ode ve l opRus s i ai nt hene a r e s t de c a de s .
“Weonl yde alwi t hpr of e s s i onalc l i e nt swho unde r s t and whatt he y wantt o pr oduc ei n Rus s i a,whi c ht e c hnol ogyt he yl ookt oi mpl e me nt .Ac c or di ng t o Rus s i an s t andar dswe de s i gn abui l di ng f ort he m whi c he nc l os e s t he i rt e c hnol ogi c all i neand de ve l op al lt he r e qui r e d ut i l i t i e s–t r ans f or me rs ubs t at i ons , t r e at me ntpl ant s , r oads , e t c . Spe c t r um par t i c i pat e di nc ons t r uc t i on ofmor et han t hi r t y i ndus t r i alf ac i l i t i e s . ” Vl adi mi rI vanov,f ounde randmanagi ng par t ne rofSpe c t r um Gr oupofCompani e s
Thi si sa na br i dge dve r s i onoft hea r t i c l e , t or e a dt hef ul lt e xtpl e a s ef ol l ow t hel i nk: ht t p: //e xpe r t . r u/e xpe r t /2 0 1 3 /1 1 /vs ya na de z hda na i nt e gr a t or ov/