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. Last Updated: 07/27/2016

Computer Production On the Rise

Russian computer manufacturers are enjoying a rise in sales this year, but production is still well short of capacity, industry representatives said Monday.

Alexei Migulya, technology manager at the Moscow-based computer manufacturer IVK, said his company has increased output by three times over a year ago.

The rise was largely due to increased orders from government agencies, he said, and also stood out because 1995 had seen a sharp decline from the previous year.

Overall, computer production in Russia was up 212 percent in the first four months of 1996 compared with the same period in 1995, Interfax reported Monday, citing the State Statistics Committee.

"We always have been working to order," said Viktor Plekhov, chief engineer of the Kvant computer-assembly plant in Zelenograd. "We're simply getting more orders now."

The much-publicized abandonment by IBM of its Russian production line earlier this year -- it cited problems with the Russian tax system for its withdrawal -- has not had a negative effect on output, as orders from domestic companies have picked up, he said.

The factory is now turning out 6,000 to 7,000 units a month for the Russian computer company Vist, against only 9,000 for IBM in all of 1995, he said.

Another 3,000 to 4,000 units a month are produced for IVK, which owns a controlling stake in the Kvant factory, Migulya said. Vist leases some of the production facilities.

Still, Plekhov said Kvant had a total capacity of 15,000 units a day, and that current orders were only taking up 10 percent.

While Kvant is by far the biggest manufacturer, there are more than 300 companies nationwide in the computer assembly business, said Alexander Prokin of the Deiter computer marketing firm. But none produce computers on their own, instead assembling parts imported from Taiwan, Singapore and the United States, he said.

"It was too hard to us to catch on," Prokin said, explaining that production of about 20 models of Russian computers ended a few years ago. "Our computer manufacturing was too outdated and it died a natural death."

Akvarius-Systems Integral, once the second biggest manufacturer in Russia after Kvant, now produces cash machines, Prokin said.