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|АО Концерн Калашников|
|Corporate group (Concern)|
|Founder||Tsar Alexander I|
|Headquarters||Izhevsk, Udmurtia, Russia|
|Revenue||US$ 135,3 million (2015)|
Private investors (49%)
Number of employees
|5 116 (2015)|
|Subsidiaries||Euroyachting Rybinsk Shipyard
Kalashnikov Concern (Izhevsk Machinebuilding Plant until 2013; Russian: Ижевский машиностроительный Завод) or IZHMASH (ИЖМАШ) is the largest arms manufacturer in Russia headquartered in both Izhevsk (Udmurtia, Russia) and Moscow that produces a wide range civilian and military weapons including assault and sniper rifles, guided artillery projectiles and a wide range of other precision weapons. The majority of civilian products includes hunting shotguns, sporting rifles, various machines and tools.
The Concern produces about 95% of all small arms in Russia and supplying to more than 27 countries around the world. The Concern contains three brands: "Kalashnikov" (combat and civilian weapons)", "Baikal" (hunting and civilian guns), and "Izhmash" (sporting rifles). The Concern is developing new business lines that include remote weapon stations, unmanned aerial vehicles and multi-functional special-purpose boats.
In May 2014 a deal to transfer 49% of the company’s shares to private investors (Andrey Bokarev and Alexey Krivoruchko) was completed, a majority – 51% – remained within the state-owned corporation Rostec. At the same time, by agreement of shareholders, the control over the management of the Concern always stays with the private shareholders. Therefore, although the state has remained a controlling stake owner, the management structure of Kalashnikov today is of a private company.
Andrey Deryabin, mining engineer, was responsible for the construction and site picking. The place (the bank of the Izh river) was chosen due to the proximity of iron works, which immediately solved all the raw material supply problems.
Now Deryabin is widely known as Izh-town founder, since the factory managing Arms Office opening became a great impulse for the whole town development.
Deryabin employed Russian and Udmurtian ploughmen living in the neighbourhood. At that time ploughmen were to migrate to plants and work there. Far settlements were released from these responsibilities but had to provide works with wagons, horses and harnessing. It also was Deryabin that hired foreign specialists to guide Russian craftsmen.
Ten stone plants, several wooden constructions and a towered main building were erected in 1811-1816.
First weapons were produced in autumn of 1807. It was the #15 17.7 mm smoothbore muzzle-loaders for soldiers. The plant supplied the Kutuzov Army with over 6 thousand #15s.
Russian smooth-bore 17.7 mm gun made in 1808 was mass-produced for infantry equipping. There also were grapeshot-loading ranger, uhlan and horse-guard short rifles, cuirassier and hussar carabines, dragoon musquets, flint blunder buss made in 1809.
The venture also produced pistols and gun parts and remelted trophy weapons.
After a while the plant started producing uhlan, horse-guard, cuirassier and dragoon rifles aside from infantry arms.
In the 1830-1840s the works manufactured Gartung short rifles, Phalis breech-loading shoulder-weapons and boarding guns for the Baltic fleet aside from infantry pistols and cuirasses.
In 1844 the decision to upgrade current guns into more rapid firing percussion muskets was made. Cap lock gun production started in 1845.
During the Crimean War, Izhevsk supplied the Army with 130 thousand rifles and a third of them were grooved.
The first guns employed by the Russian Army were Luttich short rifles for infantry battalions made in 1843.
During the 50 years of the plant’s operations over 670 thousand of flint guns and pistols, over 220 thousand percussion muskets and pistols, over 58 thousand rifle guns and impressive number of cold weapon were produced.
As for the cold steels, the venture manufactured knives with scabbards, cuirassier backswords, dragoon sables, short brown bills and lances. In 1835 the plant decided to transfer cold weapon production to Zlatoust and focus on fire-arms manufacturing.
In 1867 Izhevsk gunsmiths got a kind of manumission and the enterprise was leased to private management. In 1884 the plant was returned to the state and became Izhevsk Gun and Steel Factories (IGSF). Berdan four-port rifle (produced in 1874-1890) was the most popular gun of the plant. It allowed Russia to approach the European industrial empires’ level of armaments.
1885 started manufacturing of hunting weapons. Later, in 1922, the first state hunting gun factory was opened on the enterprise‘s premises.
During the First World War the plant supplied army with over 1.4 million of new rifles and approximately 188 thousand of remelted shoulder weapons. By 1917 the works employed over 34 thousand people.
In the 1920s the venture manufactured various types of civil goods including the railway buffers, acid ammonium molibdate, emery sticks, etc. The town’s chemical industry commenced with the establishment of works for Berezol effective cement power production. In spring, 1925 the plant started manufacturing crankshafts and aircraft engines and first Soviet motorcycles in 1929. In 1930 IGSF organized a machine-building insourcing. In 1933 a motor-plant was founded in Izhevsk and some specialists and equipment from Izhevsk Gun and Steel Factories were transferred there.
Mosin dragoon rifle, produced mainly by the plant, was upgraded in 1930. The three-port Mosin rifle made in 1891/1930 was employed by Russian Army and Navy. The first sniper gun was based on the Mosin rifle and produced in 1931.
The works also designed the aircraft machinegun, aircraft gun and antitank weapon producing technology.
In 1939 Plant № 180 was diversified into metallurgic Plant № 71 and engineering Plant № 74, which also manufactured weapons.
During the Second World War the works released 11.3 million rifles and carbines, which exceeded all the German plants’ output (10.3 million). Over 15 thousand aircraft guns and over 130 thousand antitank weapons were produced. Besides, mass production of antitank weapons, aircraft guns and machineguns, pistols and revolvers was set up. It took 24 hours for the works to supply one rifle and one air divisions.
In 1941 the plant set up Degtyarev antitank gun production in less than a month. Simonov antitank gun was ordered in November, 1941 and already released in 1942. Berezin aircraft machineguns (UB-12.7) production was mastered in a short term, TT pistol and Nagant revolver production was aligned. In 1942 manufacturing of 37 mm Shpitalny and Nudelman-Suranov NS-37 aircraft guns and sniper rifles with optic sights commenced.
On July 20, 1942 Plant № 622 (future Izhevsk Mechanical Plant) was segregated from Plant № 74. Part of the equipment was transferred from Izhevsk Engineering works, a part was obtained at evacuated Tula and Podolsk mechanical plants. During the war, Plant № 622 produced Degtyarev-Simonov antitank guns, TT pistols, Nagant revolvers, flare guns, ignition case primers.
During the postwar period the plant started to release a wide range of civil goods like agricultural equipment, furniture and other. At the end of the 40s main civil products were hunting weapons. In 1945 Izh motorbikes manufacturing was resumed.
At the end of the 50s the plant was involved in cosmic exploration and created first S-325-B launch vehicle for the Earth atmosphere scanning and gaining data on near space characteristics. At the beginning of the 70s M-100B and M-120 were designed, vacuum devices (magnetrons) for modern aircraft and missile early detection systems were produced.
Sporting variants of hunting guns were designed. TSSV-1 and S-49 target sporting rifles, TSV-50 and MTSV-50 free rifles for 7.62 and 5.6 mm cartridges were produced. Evgeniy Dragunov commenced and headed upgrading the target rifles in 1955.
Hunting models were also being improved. In 1960 the Bars rifle appeared, in 1961 Madved was constructed and in 1964 Los was released.
The development of sniper weapons continued. Dragunov headed 1891/1930 sniper rifle improvement in 1948 and created new model, MS-74. Testing showed advantages of the gun to Simonov rifle. 7.62 mm Kalashnikov assault rifle was also designed in 1948 and mass-produced in 1949. On July 3, 1963 7.62 mm Dragunov self-loading sniper rifle was employed by the Soviet Army.
In 1942-1952 the plant’s design bureau had a team of 16 German gunsmiths-designers including Hugo Schmeisser, the inventor of StG 44, Gustlof Werke, chief designer Karl Bartnicke and his assistant Oskar Schink, Werner Gruner and Kurt Horn, the developers of MG42.
In 1975 Izhevsk engineering plant became IZHMASH Industrial Association.
In 1984 the plant started production of artillery shells (Krasnopol, Kitolov, etc.)
In 1993 Viktor Kalashnikov and Aleksey Dragunov developed PP-19 Bizon submachine weapon. In 1994 Russian Army employed AN-94 Abakan Nikonov automatic rifle produced by IZHMASH.
Hunting carabines based on Kalashnikov’s Saiga were gaining wide popularity. The series development started with Saiga for 7.62х39 cartridges release in 1992. Later other weapons of the series appeared (Sobol, Tigr, Los, Volk).
IZHMASH expanded its production and commenced manufacturing the GP-34 grenade launcher and UAV.
After the plant was amalgamated by Rostekhnologii State Corporation in 2008 IZHMASH became a parent company of the close combat weapon systems’ holding.
The holding ventures produce ammunition, high-precise weapon, UAV, automatic small arms including automatic guns, submachine weapons, pistols, shooting-grenade launchers and sniper weapons, develop technologies and manufacture special equipment for production.
In the Russian military-industrial complex system, Kalashnikov relates to the "Conventional Arms Industry". The State Corporation "Rostec" holds 51% of the shares of the Concern, and private investors own the remaining 49%.
On 13 August 2013, Izhmash and Izhevsk Mechanical Plant have been merged and formally renamed Kalashnikov Concern. Kalashnikov Concern holding 51% of Rostec shares and 49% retained by private investors. Kalashnikov Concern is also now Russia’s largest and most important manufacturer of combat automatic and sniper’s weapons, guided projectiles and a wide range of civil products, including shotguns, sporting rifles, machines and tools.
In 2017 the sale of the Kalashnikov Group shares to Andrey Bokarev and Alexey Krivoruchko was put forward to the consideration of the Supervisory Board with the approval of the Management Board of the State Corporation Rostec.
It is noted that the quantity of the securities to be sold is 26% minus one share.
“In case the process is approved, the share of private investors in the Kalashnikov Group share capital will increase to 75% minus one share. The State Corporation will reserve a blocking stake of 25% plus one share”, said the CEO of the State Corporation Rostec Sergey Chemezov.
According to the representatives of the State Corporation, the Rostec development strategy 2025 envisages that the private investors will be attracted to various assets. The State Corporation currently owns 51% of the Kalashnikov shares. Bokarev and the Kalashnikov Group CEO Krivoruchko retain 49% of shares bought in 2014 for 1.3 billion rubles.
In November 2012 Dmitry Rogozin proposed to merge Izhmash with Izhevsk Mechanical Plant (Izhmekh) under the new name "Kalashnikov". In a meeting with the Russian president, Mr. Rogozin has said "Izhmash and Izhmekh, with due respect, are not brands. "Kalashnikov" is a brand." Vladimir Putin supported the idea. The merger was concluded on 13 August 2013. A new company logo was created as a combination of both mechanical plants. "Иж⏃маш", the arrow inside of the triangle is Izhevsk's notorious factory icon, and Ижмаш is Cyrillic (Russian) for Izhmash.
Concern "Kalashnikov" was created on the basis of NGO "Izhmash" and is the parent company of Rostec’s small arms holding.
In 2013, based on the decision of the State Corporation Rostec Kalashnikov Concern (NGO "Izhmash") was renamed into Concern "Kalashnikov"; and that same year Rostec leadership decided to transfer 49% of the "Kalashnikov" to private investors. A group of private investors (shareholders) are represented by Alexey Krivoruchko and co-owner of "Kuzbassrazrezuglja" and "Transmashholding" Andrei Bokarev.
To implement the transaction Rostec issued additional stock, so that investments were made directly into the share capital of the Kalashnikov and went to the company’s development right away. Today, the main goal – to increase capitalization and profitability of the enterprise, to ensure the sales growth.
In May 2014 a deal to transfer 49% of the company’s shares to private investors (Alexey Krivorucko) Andrey Bokarev and Iskander Makhmudov was completed, a majority – 51% – remained within the Rostec.
At the same time, by agreement of shareholders, the control over the management of the Concern always stays with the private shareholders.
Therefore, although the state has remained a controlling stake owner, the management structure of Concern "Kalashnikov" today is of a private company.
"We are currently discussing a repurchase of additional 2% of the shares from Rostec and receiving a controlling stake in JSC "Kalashnikov Concern" by private shareholders, – Kalashnikov’s CEO Alexey Krivoruchko said. – The model of public – private partnership is one of the most effective for the management of industrial enterprises and it allows us to implement large-scale projects.
Within the framework of our rebranding, which was done in December 2014, a new corporate brand of Kalashnikov was presented, as well as updated product brands for the combat Kalashnikov weapons, Baikal hunting weapons, and sports line – Izhmash, which are now part of brand portfolio.
As part of strategy plan of widening the product line of the group, the company purchased a 49 percent stake in Euroyachting Rybinskaya Shipyard Group that produces high-tech landing craft, search and rescue and pleasure launches. Also, it acquired a controlling stake of 51 percent of ZALA Aero, a developer of unmanned aerial systems.
Despite the sanctions at the end of 2014 Kalashnikov almost doubled the production of small arms and in 2015 plans to further increase it by at least 20-25%.
The sanctions affected not only the Concern, but also foreign buyers of its products. Kalashnikov hopes that the sanctions will be lifted and the Concern will be able to return to the US market. Especially since now there are new products that were announced: the balanced automatic carbine Saiga-107, carbine Saiga-9 and self-loading shotgun Saiga-12, which evoked great interest among American consumers.
In 2014 Concern "Kalashnikov" has presented a strategy for technical re-equipment and production modernization. When implemented, the project will qualitatively improve production technology and greatly reduce running costs and energy consumption while also improving working conditions and overall productivity.
Today Concern is focused on developing the following product lines:
The Concern’s list of the prospective development lines includes:
Since its founding in 1807, the Izhevsk Mechanical Plant (today the Concern "Kalashnikov") has been supplying the Russian army with firearms and melee weapons. From the days of the Patriotic War of 1812, every significant military victory that Russia has scored was attributable to the efforts of the Izhevsk gunsmiths.
At the present time, the design center is working on more than 50 advanced projects being developed for the military and Special Forces units of the Russian Federation and for civilian customers. Such projects include the development of pistols, assault rifles, self-loading sniper rifles and automatic grenade launchers.
Its products are currently in use in a wide variety of countries, ranging from well-established countries such as the United Kingdom, Germany and France to the developing countries of Asia, Africa and Latin America. The factory produces the famous Kalashnikov series of rifles for the Russian military and for export. Mikhail Kalashnikov, the rifle's designer, worked at the factory. Variants produced at Izhmash include the AK-100 series of rifles, the Saiga sporting line of rifles and shotguns.
In particular, the Saiga line of rifles has been a success for the concern, being popular with sportsmen in countries such as the United States. In 2012 about 70 percent of the factory’s output was civilian rifles, up from 50 percent in 2010. Of the civilian arms, about 40 percent are exported to the United States.."
In 2014 Kalashnikov Concern exhibited several new models of its firearms at the Eurostatory 2014 Exhibition in Paris. Based on military weapons, the new rifles and carbines have been adapted for the civilian market and are part of a drive by the company to carve out a niche in the market for hunting and sporting weapons.
The production of three new models of the firearm was announced during the Eurostatory Land and Air-Land Defense and Security Exhibition in Paris. The models in question are the Saiga-MK107, Saiga-9 and Saiga-12 model 340 weapons.
The first series of Saiga-12 model 340 entered production in 2015. And in September 2015 for the first time within the World Championship (IPSC) all the sportsmen-participants of the Kalashnikov's teams were shooting with the newest shotguns "Saiga-12", version 340, which have come into the retail market in 2015.
The concern has already produced several sophisticated Saiga-MK107 models. The company is planning to create a carbine that would meet NATO's standards (7.62 x 51 caliber), as well as those of Russian ammunition, whose caliber is 7.62 x 39 and 5.45 x 39 millimeters.
Its product line includes over 50 base models, 200 variants and over 1,500 possible configurations.
The mass production of the hunting shotguns began in the middle of the 20thcentury. The model range then was not as wide as today including only of over and under shotguns, and single-barreled guns.
The dissolution of the USSR brought changes into legislation, and firearms became accessible to amateur hunters. As a result, both conversion weapons such as "Saiga" or "Tiger", and hunting rifles like "Los" or "Bars" became available on the market, and all continue to be manufactured by the Concern Kalashnikov (previously known as "Izhmash").
Izhevsk Mechanical Plant (or IZHMEKH) played an equally important role. It has expanded the basic product line by offering models that use more powerful Magnum cartridges and combination guns. Also it started to develop absolutely new models – like self-loading and pump-action shotguns.
In the nearest future, it is planned to upgrade the МР-155 model (its ergonomics, bolt carrier reliability, wear-resistant properties, etc.), the МР-43 model (new stock, ejector, improved firing mechanism, safety, and swivel), МР-27 model (new stock, better appearance), "Los-7" (new covering of metal parts, ergonomic stock, more reliable magazine fixing, changes in inclination of the grooves), "Bars-4" (same improvements as in "Los-7", introducing new calibers).
The upgraded shotguns and carbines will be gradually substituted or updated with new advanced developments, such as the МР-144/142, and the МР-234.
Working on various concepts is another significant activity area. Throughout history, there have been developed many concepts, but few of them have ever been launched into batch production. This is best illustrated in the example with the first version of the "Maral" rifle that was developed in the 1990s. Today, the testing sample is undergoing trials that may result in modifications and batch production.
"Baikal" is another brand that is supposed to cover all the hunting guns produced in Izhevsk. Further, the product line will include associated goods, such as thermal underwear and hunting outfit.
Some of the latest trials held in Kamchatka, was related to the "Maral" prototype, fall outfit for hunters, and two models of thermal underwear.
Sporting weapons for biathletes in Russia are produced by Concern Kalashnikov under the brand IZHMASH.
IZHMASH brand sporting rifles and carbines are based on military weapons made by Concern Kalashnikov.
The designer Evgeniy Fedorovich Dragunov is the forefather of modern types of sporting weaponry. In 1949, a sporting rifle was created under his leadership.
In 1960, when the biathlon was included into the Winter Olympics, this sport was, so to say, paramilitary. Sportsmen used rifles based on army magazine carbines, distance to targets was 150–200 m, and to hit the targets heavy 7.62 and 6.5 cartridges were used. The 6,5x54R was the wildcat of the 7,62x54R, and may soon be back in production.
The first Soviet biathlon rifle was created by engineer Shestryakov on the basis of the Mosin-Nagant rifle. It was called Biathlon-95 rifle and was produced by Izhevsk Machine building Plant. The rifle made its debut at the 8th Winter Olympics in Squaw Valley (USA), where Alexander Privalov won bronze in the 20 km individual.
Changes were made in 1977: a standard weapon in biathlon would become a small-bore rifle 5.6 mm rimfire cartridge, widely known as .22LR or .22 LongRifle. Izhevsk engineers quickly responded to the new rules, and within the same year released BI-6 rifle for rimfire cartridges.
In the 80-s, when the ban on rapid-reload rifles was lifted, Izhmash took the lead producing the BI-7 rifle.
The BI-7-2 is, probably, the most famous rifle of that series. Its key difference from any previous models was the barrel locking system, which increased the firing rate of the rifle to the self-loading level, which improved the results of biathletes dramatically.
The BI-7-2 became a basis for the creation of new rifles in the Biathlon series, BI-7-3 and BI-7-4, which were used by sportsmen in the 90-s. BI-7-4 with some structural modifications is currently used at Sochi 2014 Olympics.
One of the latest variants is BI-7-4 rifle, version 9, produced under the order of the Russian Biathlon Union. It differs significantly from the serial BI-7-4. The rifle has a new stock, which can be almost fully adjusted to a specific sportsman. Apart from that, it has an Anschutz diopter sight and an adjustable ring sight. The barrel and the receiver are chromium-plated, which increases its service life by significantly enhancing the rust protection.
BI-7-4, ver. 11 was developed with involvement of Russian biathlon team sportsmen. At their wish, the triggering and locking mechanisms, and sighting system were improved. In addition, the accuracy of hits was enhanced. Ergonomic characteristics were also updated, including a significant reduction in the weight.
For national team sportsmen, the Concern produces rifles individually according to the sportsman’s requirements. For example, recently a rifle was made for the Absolute Champion of the World in Biathlon Uliana Kaisheva, considering her wishes and anthropometric parameters.
The Concern also produces rifle modifications for left-handed biathletes. The design of the first national sporting rifle for left-handed biathletes was presented by the Concern last year.[when?]
The number of national team sportsmen, who use the updated Biathlon rifle, is increasing. Today it is used by Olga Vilukhina, Yana Romanova, Ekaterina Glazyrina, Olga Podchufarova, Evgeny Garanichev and Alexey Slepov.
Apart from the national biathlon union, BI-7 has been long and with interest observed by the Norwegian Biathlon Association. BI-7-3 Cadet rifle for training beginner sportsmen has already been designed under their order.
The biathlon rifles include the 7-2, 7-3/7-3A youth/women's models as well as the 7-4 and 7-4A men's model. They have been used in Europe and the USA.
At the most recent Winter Olympic Games, held in Sochi, many biathletes still used modified versions of the BI-7-4. Specifically:
– BI-7-4 Mod. 9, manufactured under order by the Russian Biathletes’ Union. The stock of this rifle is adjusted for each specific athlete, the barrel comes with a dioptric Anschutz scope and an adjustable ring front barrel sight. The chrome finish makes the firearm more durable, protecting it from corrosion;
– BI-7-4 Mod. 11, created in cooperation with athletes on the Russian national team. Following their wishes, the manufacturer has refined the trigger and lock mechanisms, as well as the aim, to improve bullet spread further. In addition, the weapon ergonomics have been improved, and the rifle became lighter;
In 2015 Kalashnikov Concern declared that it expands business to drones and military boats as part of the company's new strategy for corporate development through 2020. The move, announced at the opening of the IDEX show in February, 2015, and it is the first expansion for the Russian giant.
Kalashnikov plans to develop and manufacture drones capable of air surveillance in hot zones and crisis locations, The company also purchased a 51 percent stake in Euroyachting Rybinskaya Shipyard Group that produces high-tech landing craft, search and rescue and pleasure launches.
In 2015 Kalashnikov presented: the new assault boats showcased for the first time at the International Maritime Defense Show (IMDS 2015) in St. Petersburg, giving attendees the chance to come aboard and check out the new vessels.
Visitors were able to see a BK-10 assault landing boat, a BK-9 assault support boat and a BK-16 multipurpose amphibious boat up close.
Kalashnikov Concern demonstrated the BK-16, which is a multipurpose amphibious landing boat with a remote-controlled combat module and light reconnaissance Unmanned Aerial Vehicles (UAVs) on board. It has been designed for coastal landing operations or assault support.
The BK-10 assault landing boat was designed to carry squads of up to 10 soldiers and can conduct coastal landing operations and provide fire support.
The final BK-9 craft is a smaller assault support boat that is equipped with additional armor plates for more protection while landing a squad.
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