Russian company that builds Proton rocket faces bankruptcy and reorganization
The Russian company that builds Russia’s Proton rocket now faces bankruptcy and reorganization.
By the middle of 2018, due to the dramatically slowed down rate of Proton launches, its manufacturers fell deeper into the red and needed federal funding to stay afloat. According to the official numbers, GKNPTs Khrunichev lost 23 billion rubles in 2017 and asked for a 30-billion infusion of cash from the government.
At the end of June, the Head of Roskosmos Dmitry Rogozin acknowledged an ongoing effort to fix the financial situation at Khrunichev and announced plans to accelerate the switch of the Russian launch operations from the Proton to the Angara family. Ironically, Roskosmos exacerbated the company’s debt with its penalties for missed production deadlines, even though Russian payloads slated to ride those delayed rockets were themselves years behind schedule and GKNPTs Khrunichev had no room to store large rocket components.
In an effort to raise capital, Khrunichev planned to sell a big part of its campus, located in the hyper-valuable real estate area of Moscow, to private developers. In the process, the company would also dramatically reduce its production capacity and cut its personnel in the Russian capital, shifting key manufacturing operations to Omsk, in Western Siberia. In another cost-saving measure, around 200 people were reported to be marked for layoffs at Proton’s launch facilities in Baikonur beginning in the fall of 2018.
The Russian government, rather than allow for competition, is working to prop the company up. So, rather than having new companies appear with new and better ideas, Russia will be saddled with an old company not good at innovating.
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The Russian company that builds Russia’s Proton rocket now faces bankruptcy and reorganization.
By the middle of 2018, due to the dramatically slowed down rate of Proton launches, its manufacturers fell deeper into the red and needed federal funding to stay afloat. According to the official numbers, GKNPTs Khrunichev lost 23 billion rubles in 2017 and asked for a 30-billion infusion of cash from the government.
At the end of June, the Head of Roskosmos Dmitry Rogozin acknowledged an ongoing effort to fix the financial situation at Khrunichev and announced plans to accelerate the switch of the Russian launch operations from the Proton to the Angara family. Ironically, Roskosmos exacerbated the company’s debt with its penalties for missed production deadlines, even though Russian payloads slated to ride those delayed rockets were themselves years behind schedule and GKNPTs Khrunichev had no room to store large rocket components.
In an effort to raise capital, Khrunichev planned to sell a big part of its campus, located in the hyper-valuable real estate area of Moscow, to private developers. In the process, the company would also dramatically reduce its production capacity and cut its personnel in the Russian capital, shifting key manufacturing operations to Omsk, in Western Siberia. In another cost-saving measure, around 200 people were reported to be marked for layoffs at Proton’s launch facilities in Baikonur beginning in the fall of 2018.
The Russian government, rather than allow for competition, is working to prop the company up. So, rather than having new companies appear with new and better ideas, Russia will be saddled with an old company not good at innovating.
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
They should ask Trump for a bailout.