Engineering & Mining Journal

OCT 2018

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RUSSIAN REPORT OCTOBER 2018 • E&MJ 57 www.e-mj.com has had some results already in the two years since the first steps in that direction were made, as it negatively affected at least some importers of mining equipment. Several companies confirmed that efforts taken by the government had negatively af- fected their business in the country. "I must admit that the [government] import replacement program brought some negative impact on the position of Caterpillar and Zeppelin in Russia. In particular, some state-owned companies have already announced that they would purchase mining equipment, as well as spare parts, only of the Russian origin," said Vytaly Shornikov, chief engineer for Zeppelin Rusland LLC. "There is no doubt that the import-re- placement campaign has negatively af- fected our company, although at the most important production areas, Russian min- ers still prefer to install imported equip- ment, as long as it is more serviceable and as the rule has a higher production efficiency, as compared to Russian-made machinery," said Nikolay Bazanov, deputy commercial director of Russian division of ASTEC Industries Inc. "It is hard to make any solid conclu- sions about the influence of the import-re- placement campaign on our company's operations in Russia. We may see evidence of a demand reduction for really big ma- chinery, such as the 360-metric ton (mt) haul trucks, and it is possible that this type of equipment was really impacted by the government program. However, we do not have any clear evidence that would confirm that relation," said Ishii Sonosuke, director of Russia and CIS department of the Hitachi Construction Machinery. "The competition on the Russian mar- ket is getting tougher, partly because the government starts actively supporting domestic [mining machinery] manufac- turers. In 2012, Russia imported around 10,000 loading machines from China. Now this figure is significantly lower. De- spite this, in 2017 Shantui accounted for about 25% of all bulldozers imported by Russia and is projected to reach 35% in 2018. The company also plans to increase sales of loading machines in the country," said Sergey Moskalenko, general director of Russian company StroiImportTechnika, a distributor of Shantui in Russia. At the same time, not all companies suffer problems in regard to the import-re- placement program launched by the Rus- sian government. In particular, the press office of Scania reported that its sales of dump trucks to the Russian mines were on the rise in 2017. In total, Scania sold 324 machines to 70 companies in the country, increasing its market share among Euro- pean companies by 3% as compared to the previous year. In the second half of 2018, Scania expects to further strength- en its positions in Russia by launching sales of Scania Heavy Tipper. "Basically, it is believed that import replacement has certain limits in Russia as some equipment, for example dump trucks with the high-carrying capacity and wheel loaders with a 5-m 3 bucket ca- pacity, are not manufactured in Russia at all," Shornikov said. "In addition, some portion of equipment that is produced in Russia is not very competitive against the imported products in terms of the produc- tion effectiveness," he explained. On the other hand, the Russian gov- ernment provided the foreign original equipment manufacturers with a loophole of how to avoid the negative impact of the import-replacement program on their busi- ness in the country. All interested manufac- turers starting from 2017 are free to sign what is called a Special Investment Con- tract (SPIC) with the Russian Economy De- Type of equipment Imports or technology % Shield supports ............................053.6 Combines for coal-face works ........080.1 Tunnelling machine ......................040.0 Loading Machines ........................048.5 Drag-type conveyor .......................006.6 Belt-type Conveyors ......................010.8 Electric locomotives......................065.0 Diesel locomotives........................099.6 Trolleys, creepers (pushers) .............. 0 Chain-and-bucket excavators.........100.0 Shovel excavators .........................040.4 Loaders........................................093.0 Drilling machines .........................053.6 Bulldozers....................................076.1 Technical vehicles with carrying capacity up to 30 mt......072.6 Technical vehicles with carrying capacity from 31 to 180 mt ........100.0 Equipment number Type of equipment or technology Import The in the Russian share maximum Classification of as of import Products by late share Economic Activities 2014 in 2020 28.92.27.114 Automated coal face systems 100% 75% 28.92.27.114 Open pit electric excavators (with a bucket capacity 45 to 60 cubic meters) 100% 30% 28.92 Hydraulic shovels 100% 67% 28.92.12.110 Mobile shaft support with hydraulic drive (shield support) 100% 45% 28.92.12.121 Tunneling machines 025% 00% 28.92 High-performance tunneling systems 100% 67% 28.92 High-performance mining and production complexes for extraction of potash ores 100% 63% 28.92.12.110 Cutter-loaders 096% 56% 28.92 Bucket loaders 100% 73% 28.92 Drilling rigs 100% 15% 28.92 Drilling machines for roller drilling with diesel drive 100% 67% 28.92.17.11 Belt-type conveyor 075% 30% 28.92 Tubing support 080% 35% 28.92 Stackers, reclaimers, stacker/reclaimers, dumping machine, rippers, creepers, blasting leads, crushing and milling machines etc. 070% 43% 28.92.40 Ore-pulverizing and other mils 060% 25% Table 1—Russian import replacement targets on the domestic mining machinery set by the Russian Industry and Trade Ministry. Table 2—The share of imported equipment on the Russian market in 2017. Source: National University of Science and Technology MISiS, analytical agency Informugol.

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