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. Last Updated: 07/27/2016

IMZ-Ural Splits Into 3 Companies

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The management of IMZ-Ural — the sole domestic manufacturer of heavy motorcycles — has resolved to split the enterprise's business into three separate companies.

IMZ-Ural, based in the city of Irbit in the Sverdlovsk region, will retain its principal orientation — namely motorcycle assembly. But parts-production responsibilities are to be transferred to Mashinostroitelniye Komponenty.

Power-generating facilities and networks have already been transferred from the factory's books to power utility Irbitenergo. The administration of the city of Irbit has a controlling stake in the utility.

Vadim Tryapichkin, executive director of IMZ-Ural, said Tuesday at a news conference that the parts-production company would be entirely independent of the factory.

He said Mashinostroitelniye Komponenty will continue to manufacture parts for the Ural motorcycles produced by IMZ-Ural, but will also actively seek orders with other vehicle manufacturers. A special team will be brought in for this purpose, he said.

The company's parts-production facility will be transferred to a separate joint-stock company that will seek out orders on the market independently. It could therefore be sold to outside investors.

This year IMZ-Ural is set to produce 1,800 motorcycles — almost the same number as last year.

Viktor Zhuravlyov, head of marketing with moped maker Degtyarev, located in the city of Kovrov in the Vladimir region, said the lack of specialized enterprises manufacturing motorcycle parts is a serious problem for motorcycle manufacturers.

"If such factories existed we would come running for their services," he said.

The IMZ-Ural factory was established on the ruins of the bankrupted Uralmoto company. IMZ-Ural is affiliated with United Machine Building Factories of the Uralmash-Izhora group headed by Kakha Bendukidze.

Tryapichkin said that after separating its energy and parts arms IMZ-Ural will be in a position to concentrate on developing new models and improve the quality of its present range.

He said he plans to increase production more than seven times to 15,000 motorcycles per year within five years. By 2003 the factory intends to release "completely new models," he added.

However, over the next three months the factory will be mothballed.

Output was reduced in October due to problems with fuel and energy supplies.

Another reason given by the factory is the seasonal fall in demand for motorcycles. The practice of downing tools in off-peak months has its origin in the West.

German motorcycle maker BMW shuts down in August and the company's employees go on vacation, said Vladimir Vidulov, manager of BMW Russland Trading.

The annual output plan must be fulfilled by August, however, and during the month, preparation for the following season gets underway, Vidulov said.