Khrunichev Space Center Restructuring

, Four Russian launch vehicle and spacecraft component manufacturers were consolidated under the control of Khrunichev Space Center this month by presidential decree. 
 
On Feb. 3, 2007, the President of the Russian Federation Vladimir Putin signed Decree #127, on the Federal State Unitary Enterprise “The M.V. Khrunichev Space Research & Production Center.” 
 
Under the decree, four state-run rocket and space enterprises will become branches of the Khrunichev Space Center. These are the Voronezh Mechanical Plant, A.M. Isaev Chemical Engineering Design Bureau (also known as “Khimmash,” in Korolev, Moscow Region), Moscow Enterprise for Equipment Configuration “Dlina” and Production Association “Polyot” (in Omsk). 
 
Russia is consolidating its major industries into a few vertically integrated corporations to ensure quality control and to make the products more competitive in the global market. 
 
The rocket and space industry is a major pillar of the economy and Russia's international status. Therefore the shaping of a new industry image is clearly an important government action with far-reaching prospects. 
 
In July 2006, the Russian Government reviewed and approved a strategy for the rocket and space industry through the year 2015. The strategy calls for the establishment of 10 integrated entities in the Russian rocket and space industry. By 2015 those entities will be further consolidated into three or four large corporations that will encompass the entire industry. 
 
Khrunichev was chosen to be one of these core entities of the industry. Under the federal program, it is responsible for the development, production and operation of small and heavy-lift launch vehicles, as well as development and manufacturing of space systems for remote sensing and telecommunications, and modules for manned space stations. 
 
The consolidation will accomplish the following goals:  
 
1. Production of competitive products and retention of a leading role for the Proton M/Breeze M launch vehicles in the international launch services market, which provides financial and economic benefits;  
 
2. Preservation of the existing production potential and expertise and fulfillment of federal orders under the State Weapons Program and Federal Space Program until 2015 and GLONASS Federal Target Program, with respect to provision of Proton launch services for military and dual-purpose satellites, as well as for satellites to support civilian social and economic programs, and the development of the Angara space rocket complex, as well as fulfillment of other government orders; and  
 
3. Implementation of inter-governmental cooperation agreements on the development and operation of rocket and space technology, including the Republic of Kazakhstan with reference to the construction of the Baiterek space rocket complex at Baikonur that will use an environmentally friendly heavy-lift launch vehicle. 
 
It is projected that such restructuring will strengthen the financial structure of Khrunichev and the entities that are joining it as affiliated branches. Financial and economic projections indicate that revenues from sales by Khrunichev and the four affiliated enterprises will enhance opportunities for gradually building an investment program, expanding the employee base and enabling it to carry out social programs. 
 
The current restructuring will make it possible to ensure high quality and efficient production to accommodate new orders for rocket, space and aviation technology. Khrunichev will now have more oversight and control of the manufacturing of the entire Proton Breeze M vehicle, among other programs.