Russia, Moscow, VDNH, Pavilion 75
02 March 2020

Mass media found out Dom.RF’s plans to cover demand for all elevators in Russia

The state-owned company increases capacities of the existing plant, plans to build a new plant as well as has acquired the rights of claim to PJSC Karacharovsky Mechanical Plant and Siblift Ltd. In future, Dom.RF could fully meet the demand of the market.

Dom.RF plans to expand manufacture of elevators. When this process is completed, the production could cover all demand in elevators of the Russian market. The Vedomosti periodical reports on that referring to representatives of the state-owned company and its documents.

At the present time, JSC Shcherbinsky Elevator Plant (SEP) – the largest in Russia and a part of Dom.RF - undergoes modernization. After the upgrades it will be able to increase production capacity from 8,400 (in 2019) up to 14,000 elevators a year, the periodical reports.

Besides, the state-owned company discusses construction of a new plant. This is said in a letter by SEP General Director Anton Artemiev sent to Rospotrebnadzor. The new plant, which could be placed in New Moscow, would manufacture production separately but under the SEP brand. Its area will be about 88,500 sq.m., while the highest in Russia tower for testing new elevators (135 m) is planned to place in the territory of Dom.RF’s territory. The plant’s production capacity could be of 40,000 elevators a year.

Early 2020, Dom.RF acquired the right of claim to PJSC Karacharovsky Mechanical Plant (KMZ, the second largest elevators manufacturer in Russia) and Siblift Ltd., which became subsidiaries of Dom.RF. The periodical reports that the debt of the first one is RUB 5,2 billion and the second one has the debt of RUB 2 billion.

In 2019, KMZ released about 5,000 elevators and Siblift released about 1,000 elevators.

According to Vedomosti information, Dom.RF also considers a possibility of buying Serpuhov Elevator Factory which production capacity could be 4,000 elevators a year.

The periodical calculates that if Dom’RF new plant produces 40,000 elevators a year, as planned, the state-owned company could fully meet the demand of Russia in elevators (the 2019 market capacity was 48,000 elevators).

Market participants criticize Dom.RF plans to consolidate productions in such volume. President NP Russian Elevator Association Sergey Chernyshov said the future elevator holding would exceed the market demand and destroy investments of the last ten years. It would be more reasonable to master production of high-level components for all plants in the elevators market which are not produced in Russia now, thinks General Director of Chelyabinsk plant Vitchel Igor Ivanov.

Last February, following the results of the meeting, Prime Minister Dmitry Medvedev gave an instruction to revise “the measures on consolidation of production capacities of elevator plants and stimulation of demand for competitive Russian elevator equipment in the internal market”. VEB.RF and its subsidiary Dom.RF were identified among performers of the instruction.