INTEGRATION MANAGEMENT AT PRODUCTION OF HIGH READINESS (FOR EXAMPLE, CREATE A CLUSTER VSMPO-AVISMA)

Abstract

The paper shows that organizing manufacture of titanium products with high degree of readiness is possible in two cases, of which the one is creating vertically and horizontally integrated titanium cluster, while the other is forming traditional vertically integrated structure presented by SMPO-AVISMA Corporation.

The paper compares both cases. It has been found, that the added cost value is 60% higher in the case of a new vertical-and-horizontal structure than in the case of a traditional vertical integration.

Creation of a titanium cluster increases a share of this added cost value in Total Regional Product of the Sverdlovsk area (32%) and in Gross National Product (0.7%), stimulates additional demand for titanium products at the expense of localizing titanium process stage inside this country trough creation of joint ventures.