Atommash

ZAO Energomash–Atommash

Company type	Private
Industry	Nuclear engineering
Founded	1973 (1973)
Headquarters	Volgodonsk , Russia
Products	Equipment for nuclear power plants, electrical distribution, electric motors, energy, gas, locomotives, oil, space
Number of employees	21,000 (1989) 2,900 (2009)
Website	www.atommash.ru

ZAO Energomash–Atommash (Template:Lang-ru) is an engineering company located in Volgodonsk, Rostov Oblast, Russia. Established in 1973 as Atommash, it was a nuclear engineering flagship of the USSR. After bankrupcy in 1995 it was restructured and resurrected as EMK-Atommash before becoming part of Energomash, a major diversified engineering company.

History

Soviet period: 1975-1991

1977, builders of the future industrial giant

In 1973 the Political Bureau of the Central Committee of the Communist Party of the Soviet Union made a decision to establish a major nuclear engineering enterprise in Volgodonsk (Rostov Region). There were several reasons for choosing Volgodonsk as the site for the construction of the enterprise, and above all, the town's proximity to the country's southern deposits of iron and steel. Equally important was the opportunity to utilize the Volga-Don Canal for shipping raw materials, components, assemblies to the enterprise and delivery of finished goods to customers. The water canal made transportation of heavy and bulky items to the regions of the country and the world through the Sea of Azov, the Black and Caspian seas easier and cheaper. Roads, railways and an airport were created in order to support he industrial activities of the enterprise. Capacity utilization planning of the nuclear industry giant revealed that electricity generated by three hydropower stations of Volgodonsk is not enough. Therefore, it was decided on the highest political level to build the Rostov Nuclear Power Plant. In November 1974, the USSR Council of Ministers approved the technical design of the first stage of the industrial complex, which was originally called "The Volgodonsk Heavy Machinery Plant" (VZTM). Main tasks for the construction of VZTM (later renamed to "Atommash") for the period from 1976 to 1980 were determined.

Construction of Atommash started in 1975, the first factory building started operating in 1976 and already in 1981 it started producing equipment of its specialty. The enterprise was designed and constructed for manufacturing of complete equipment for NPPs (Nuclear Power Plants). The Chernobyl disaster and the Dissolution of the Soviet Union affected the future of the enterprise. The number of orders for the NPP equipment declined, and the enterprise had to expand the assortment of produced goods greatly.

First years of the post-Soviet period: 1991-1994

Like most Russian industrial enterprises, Atommash suffered greatly from the collapse of the Soviet Union. Russia as a state, being the key customer of the goods produced by Atommash, wasn't capable of providing sufficient demand.

In 1991 the enterprise found itself in on the brink of ruin: there were not enough funds to pay salaries to the 20,000-man staff of the unique enterprise. The Chernobyl disaster impacted it as well, leaving the manufacturer without orders for equipment for the NPPs. Orders for nuclear equipment dropped to 15 percent of the Soviet era volume. Difficult tasks faced the Russian Ministry of Atomic Energy and the enterprise itself. The enterprise had two options for survival: find customers outside Russia and/or adopt manufacturing of a broader scope of goods.

Bankruptcy of 1995-1999

The so-called "Plan of instituting external management for financial recovery of Atommash OJSC for the period of November 29th 1995 – May 29th 1997", introduced as of November 29, 1995 by the decision of the arbitrary court brought no results. Jobs were declining and social tensions on the plant and in Volgodonsk city were increasing. The Russian Ministry of Atomic Energy proposed the following measures to save the enterprise, but the measures were not taken:

• Write off the debt on loans of Atommash OJSC owed to the Ministry of Finance of Russia (22 billion rubles), as well as respective interest and penalties as of 01.09.1996.
• Release Atommash OJSC from paying all kinds of taxes to the federal and local budgets from 01.09.1996 to 31.12.1997.
• Offer an installment plan (layaway) from 01.01.1998 to 31.12.2000 for the current accruals to the budgets of all levels.
• Sell the unsold 30% shares of Atommash OJSC to private shareholders under investment conditions.

The enterprise was formally liquidated on November 25, 1999. Its assets were taken over by Energomash.

Modern period (2000-2012)

In the framework of market economy Atommash becomes multidisciplinary. The enterprise starts manufacturing technical equipment which is currently in demand, opening the doors for single, one-of-a-kind items. For example, a 140-ton vehicle for lifting the rocket and putting it on a launcher for the Sea Launch project was manufactured on Atommash.

The footing for a reactor at Bushehr was manufactured at Atommash in 2001 and successfully shipped to Iran.

Since 2002 the facilities of the bankrupted Atommash are utilized for mass production of gas turbines for small capacity CHP plants (up to 36 MW). By 2003, the number of employees on the enterprise shrunk to 4,300 with the volume of output of 1.4 billion rubles. In 2004, the company's management announced a four-fold reduction in output for the nuclear energy and the orientation of the main production to consumers in the gas industry. In 2009 Atommash re-initiated the manufacturing of equipment for NPPs. Currently the enterprise is Russia's monopolist for manufacturing of melt localization devices for NPPs.

Volume of production and # of employees / Year	1989	1997	2003	2006	2007	2008	2009
Volume of production, mln. rub.	-	-	-	3137,3	3666,4	3451,8	3800,0
Number of employees	21000	5109	4300	2732	2733	2885	2900

Ownership

Atommash was a joint-stock company; 30% of the shares were controlled by the State. The remaining 70% interest belonged to individuals and companies. Concern YACONTO JSC (an industrial conglomerate headquartered in Moscow) was the second largest shareholder of Atommash OJSC after the State itself, holding 28.5% shares as of 1997. The Annual General Meeting of shareholders, responsible for making key decisions on the Company’s activities, was the supreme governing body of Atommash OJSC. Between the Meetings, Atommash was operated by the Board of Directors (9 members in total) headed by the Chairman of the Board. The chief executive of Atommash OJSC was the General Director.

Manufacturing

1982, Treatment of the interior part of a VVER-1000 reactor frame.

Being one of Russia's biggest industrial complexes and having 6 million m² of production facilities, Atommash was equipped with unique imported modern equipment, over 80% of which was purchased in Germany, Japan, France, UK, Italy, Austria, Sweden, USA and other countries, from concerns like Italimpianti, ESAB, Varian Associates, Mannesmann AG. In addition to nuclear machinery equipment, the quality of which has been confirmed by an international certificate granted by ASME (American Society of Mechanical Engineers), Atommash was capable of producing over 1000 kinds of products, utilizing modern foreign and domestic technologies. Those types of products included, but were not limited to: non-standard metal equipment of large sizes, various metal containers for energy systems (heat-, hydro-, wind power), metallurgical, mining, oil and gas production and processing systems, including ready for use plants for deep processing of oil and its residual fractions on the basis of cleaner technologies and processes, compact mini oil refineries with a capacity of 50 to 500 thousand tons per year, and mini-factories for recycling and processing of by-products and waste oil, equipment for the construction industry, including equipment for launch pads for missiles and spacecraft, for sea water desalination plants, containers for transportation and disposal of nuclear waste, railroad tank cars for transportation of liquid gas, etc.

Atommash was capable of producing equipment and products with a wall thickness of 1 to 400 mm, diameter up to 22 meters, length up to 80 meters and weight up to 1000 tons of highest quality. Atommash practiced electron beam welding, automatic welding in narrow cutting, automatic welding of nozzles, welding of large-sized products with wall thickness up to 600 mm. It possessed high-end equipment for heat treatment, welding, non-destructive testing (NDT), laboratories for exceptionally complex material testing and test facilities for finished products.

Atommash had a considerable experience of exporting its production abroad, to countries like Germany, USA, France, China, Japan, India, Singapore, Bulgaria, Greece, Turkey, Iran, Cuba, Indonesia to name a few. The enterprise has its own heavy duty mooring berth on Tsimlyansk Reservoir, which allowed shipping bulky and heavy products to Caspian, Azov, Black and Mediterranean seas, which used to be a natural advantage of Atommash over its domestic competition.

Gallery

Works on the enterprise

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  1989