On the background of the crisis in the aviation industry Corporation “VSMPO-AVISMA”, which is the largest supplier of titanium, has announced the change of CEO. Instead, longstanding leader Mikhail Voevodin, the company will be headed by his Deputy Maxim Kuzyuk, whose crisis management skills emphasized by the company. Previously, “VSMPO-AVISMA Corporation” announced a large-scale anti-crisis plan with spending cuts, transfer of investment projects and reducing production plans. The news of the resignation of Mikhail Vojvodina was market surprise: in April, his authority was extended for three years.The CEO of the world’s largest manufacturer of titanium “VSMPO-AVISMA” Michael Voevodin has unexpectedly written a resignation, the message of the company. It is said to have held the position of Director since 2009 Mr. Voevodin plans to focus on personal projects. The new acting CEO since may 7, will be a Maxim Kuzyuk, who was Deputy Mikhail Voevodin. The powers of the Lord of Vojvodina, on 13 April, was extended for three years, and the news of the resignation came as a surprise.Mr. Kuzyuk previously headed the group of companies “Izhmash” (later the concern “Kalashnikov”), the technodynamics and OJSC RTI. The company says on its successful experience of crisis management in the “Izhmash” in 2011-2012, where he implemented a plan for extensive reorganization of the group, “which helped to stabilize the problem at the time of the defence asset”.65% of shares of “VSMPO-AVISMA” belongs to management of the company, 25% + 1 share of the state Corporation “rostec”. Revenue under IFRS in 2019 rose 4% to of 105.4 billion rubles, net profit — on 36%, to 20.8 billion rubles crisis in the air industry associated with the pandemic coronavirus, hit the demand for new aircraft and, accordingly, the company is the primary supplier of titanium to the global aerospace industry. So, “VSMPO-AVISMA” provides up to 35% of the titanium used by Boeing, 65% of the demand of the Airbus Group and 100% of Embraer.Because of the crisis, which has led to a decline in demand for new aircraft by 90% and the actual suspension of production at our key customers, the Corporation in April announced a reduction plan for the production of titanium products from 39 thousand tons to 26.5 thousand tons, spongy titanium — 44 thousand tons to 35 thousand tons. It was also announced about the reduction of all non-productive expenditure, the postponement of investment projects and the reduction of the wage Fund in accordance with the production plans. The anti-crisis plan provides for the closure of part of production areas and conservation equipment. “You can certainly stay several months in the same condition and by pretending that the problem does not exist, to live beyond their means,— said Mr. Voevodin.— But then will come momentst when the downsizing will be inevitable”. According to him, if promptly “go to crisis footing”, as in 2009, the company will adequately survive the global economic downturn and further decline of the aerospace market, triggered by the pandemic.Eugene Zainullin
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