FAR EASTERN SHIPBUILDING AND SHIP REPAIR CENTER

Far Eastern Shipbuilding and Ship Repair Center, JSC (FESRC, JSC) is a

subsidiary enterprise of the United Shipbuilding Corporation, JSC (USC,

JSC).

At present FESRC deals with the challenges of national importance that are

related to the maintenance and development of the scientific and

production potential of the military-industrial complex, and concentration of

intellectual, production and financial resources in the construction of

vessels and offshore structures for the development of the Russian

continental shelf.

THE MAJOR COMPANIES OF FESRC:

FAR EASTERN YARD ZVEZDA, JSC

DALZAVOD SHIP REPAIR CENTER, JSC

KHABAROVSK SHIPBUILDING YARD, JSC

AMUR SHIPBUILDING YARD, JSC

NORTH EASTERN SHIP REPAIR CENTER, JSC

GENERAL INFORMATION

The business activities of Far Eastern Shipbuilding and Ship Repair Center

are based on the existing strategy for the development of the Russian

shipbuilding industry. The main objectives of FESRC are to consolidate

efforts of the Far Eastern shipbuilding and ship repair yards within a single

structure, to enhance competitiveness and performance efficiency, and to

conduct a responsible policy as of a partner of the Russian government.

CURRENTS TASKS:

Modernization of the yards’ production facilities and their specialization

by product types

Implementation of investment projects in the construction of a modern

shipbuilding complex in southern Primorye

Improvement of management efficiency, creation of new jobs and

establishment of a new personnel training system in cooperation with

Far Eastern Federal University

Ensuring competitiveness and profitability of the yards in both the

Russian and foreign markets

Participation in the projects related to the development of the Russian

continental shelf

DEVELOPMENT STRATEGY

Developing naval ship repair and maintaining full-scale combat readiness of

the Russian Pacific Navy is a core activity of Far Eastern Shipbuilding and

Ship Repair Center.

Historically, the founding of Vladivostok was related to the formation of a

major Pacific Navy base complete with the required ship repair and

shipbuilding infrastructure. The city has not lost its strategic significance,

and up to now it hosts the headquarters and many service branches of the

Russian Pacific Navy, being also the base for Russian Pacific Navy ships

and location of many facilities of national importance.

GOALS FOR THE NAVAL SHIP REPAIR AND SHIPBUILDING:

Maintenance and further development of the scientific and production

potential of the military-industrial complex

Improvement of the quality of construction and repair services for naval

surface ships and submarines

Advancement of work practices in the companies fulfilling state

defense orders by means of employing new management techniques

to facilitate the companies’ efficient functioning and development

NAVAL SHIP REPAIR AND SHIPBUILDING

A new ship repair center was established on the site of Dalzavod, the

oldest ship repair yard of the Russian Far East. The center also includes

the united facilities of a few numbered yards. The upgrade of the facilities

and optimization of the working processes with the exclusion of the

redundant facilities are in progress.

Dalzavod Ship Repair Center is the main repair facility for the surface

ships and diesel-electric submarines of the Russian Pacific Navy. Now the

Repair Center has around 2,500 employees, and its facilities are utilized

by 100% to fulfill the navy and commercial orders.

As part of upgrading Dalzavod Ship Repair Center it is planned to upgrade

its dry dock, to establish a repair base for the Varshavyanka type diesel

submarines and to construct a repair quay for Mistral helicopter carriers.

OBJECTIVES OF DALZAVOD SHIP REPAIR CENTER:

Comprehensive repair and modernization of surface ships, diesel

submarines and vessels of any types

Provision of full-service dry docking

Servicing of ships and vessels of the Russian Pacific Navy

DALZAVOD SHIP REPAIR CENTER

One of the major strategic tasks of FESRC is to implement projects in the

construction of modern vessels and marine facilities for the development

of the continental shelf and establishment of the company’s presence in

the global shipping market.

Over the past years, the companies of Far Eastern Shipbuilding and Ship

Repair Center have delivered more than 300 vessels of different types to

domestic as well as foreign customers.

The FESRC’s companies specialize in the construction, repair, renovation

and modernization of various vessels.

At present, the production facilities of the FESCR’s companies allow them

to construct marine and river vessels with a maximum deadweight of

10,000 tons, a maximum length of 150 meters, and a maximum breadth of

19 meters.

TYPES OF VESSELS BEING CONSTRUCTED BY FESRC’S

COMPANIES:

Displacement ships of all types

Hydrofoil vessels

Hovercrafts

Offshore structures for the development of the Russian sea shelf

COMMERCIAL SHIPBUILDING

One of the most advanced shipyards of Russia is currently being built in

Bolshoi Kamen Bay. On completion of the construction project, Zvezda

Shipbuilding Complex will be able to build tankers with the deadweight of up

to 350 thousand tons, LNG carriers, ice class vessels, specialized vessels,

offshore platform units and other types of vessels and marine facilities.

PROJECT PHASES:

PHASE I Hull fabrication workshop and painting workshops (including

open outfitting platform);

Bolshoi Kamen Bay, Primorsky Krai

PHASE II Dry dock and outfitting workshops;

Bolshoi Kamen Bay, Primorsky Krai

PHASE III Workshops and dry dock;

Mysovoy Community, Pyat Okhotnikov (Five Hunters’) Bay,

Primorsky Krai

PROJECT DURATION: 2010 – 2018

PROJECT DETAILS:

Employment opportunities: up to 6,500 people

The total annual processing capacity is estimated at 328,000 TONS of hull’s

steel plates and sections for the two-shift operation following the start-up of

all phases.

ZVEZDA SHIPBUILDING COMPLEX

ZVEZDA SHIPBUILDING COMPLEX

1ST PHASE

HULL FABRICATION WORKSHOP AND PAINTING

WORKSHOPS (INCLUDING OPEN OUTFITTING PLATFORM)

Bolshoi Kamen Bay, Primorsky Krai

CONSTRUCTION PERIOD 2011 – 2015

SPECIFICATIONS

Hull fabrication workshop

Dimensions: 315 х 192 х 36 m

Size: 55,890 m2

Open outfitting platform

Dimensions: 485 х 230 m

Goliath crane capacity: 1,200 t

Gantry cranes capacity: 320 t

PRODUCTIVITY

45,000 t of steel per year from 2015

90,000 t of steel per year from 2018

FESRC has a number of challenges related to implementing the social policy

that will facilitate the attraction and retaining of the needed personnel by

FESRC’s companies, and to building up an efficient system of selection,

training, and result-oriented education of the required staff.

SOCIAL PROJECTS IMPLEMENTED BY FESRC:

Overhaul of Far Eastern Shipbuilding College in Bolshoi Kamen

Partnership program with the FEFU regional campus in Bolshoi Kamen

Engineering Center construction project on Russki Island

Camp for the accommodation of 1,000 workers in Bolshoi Kamen

Residential area for shipbuilders with 2,500 units

Reshaping of dining areas: upgrade of cafeterias with a seating capacity

of 6,000 people

Upgrading of first-aid posts

All-around effort to heighten workplace safety awareness

SOCIAL POLICY OBJECTIVES:

Personnel retention, mentorship guidance and career building,

improvement of the motivation systems at the FESRC’s companies

Provision of personnel with high-quality accommodation through

development and implementation of housing programs interlinked with

the social infrastructure development programs

Ensuring psychological comfort and high morale for the FESRC’s

employees and improvement of the employer’s image

SOCIAL POLICY

Development and consolidation of production facilities requires, first of all, highly qualified professionals, and engineering and management staff. To address the challenge, the training policy of the companies integrated into FESRC structure is formulated on the principles of a continuous learning system.

SECONDARY EDUCATION Occupational guidance of students is provided to improve the industry’s image and includes worksite tours, occupational guidance seminars, meetings with parents of final year students, participation in career fairs and in-house days.

VOCATIONAL EDUCATION FESRC, JSC closely cooperated with a shipbuilding college in Bolshoi Kamen and a college in Komsomolsk-on-Amur in the following areas: internship for students at the FEY Zvezda and Amur Ship Repair Yard, employment opportunities for third-year students with subsequent qualification for a grade, amendments to the educational institution plans to fit the companies’ needs, and continuing education for employees.

HIGHER EDUCATION-SPECIALIZED EDUCATION In cooperation with FEFU (a regional campus in Bolshoi Kamen City) FESRC provides evening classes for the company’s employees who don’t have higher education; cooperates with the marine engineering and technology department, with preparation of a graduate thesis on the FEY Zvezda, and participates in the Presidential program on engineering education, joint programs for education and training of engineers for the shipbuilding companies within the Far Eastern Federal District.

TRAINING PROGRAMS

EMPLOYEE TRAINING AND EDUCATION FESRC arranges, on an ongoing basis, work placements for its professionals to study foreign experience in cooperation with the leading shipbuilding companies of IMG (Germany), the Great Britain, and South Korea’s shipyards—with Samsung, DSME, and STX, the short-term training programs and on the job training.

One of the core values of JSC FESRC is teamwork. People are our

greatest asset. Our team is our major driving force.

We aspire to provide maximum work safety for all of our employees and

subcontractors working at the premises of the enterprises integrated into

FESRC.

We are guided by global best practices, and continuous improvement of our

products and service quality is our major objective.

FESRC is an environmentally friendly and socially responsible company.

By implementing projects of regional significance, we make our own

contribution to the development of Primorsky Krai, the shipbuilding industry

in the Far Eastern region and the Russian Federation as a whole.

QUALITY MANANAGMENT OBJECTIVES:

Implementation of an integrated system of standards and procedures

in all of the company’s subsidiaries

Improvement of transparency and manageability of the organizational

structure, business processes and functions

Application of technically sound state-of-the-art engineering solutions

Enhancement of the production efficiency by means of optimizing the

management structure and improving the product quality

Continuous improvement of the production control through

implementation of advanced technologies and improvement of

production standards

Continuous improvement of the specialists and workers’ expertise in

the field of quality assurance

CORPORATE POLICY