THE ECONOMIC EFFICIENCY OF TITANIUM PRODUCTS WITH A HIGH DEGREE OF READINESS (FOR EXAMPLE, VSMPO-AVISMA)

L. A. Kostygova, A. A. Hotinsky and D. Yu. Sannikov

Russian Journal of Industrial Economics, 2015, issue 2

Abstract: The paper shows that management of such vertically integrated structure of regional importance as VSMPOAVISMA Corporation should be characterized not only by a profit indicator, but also by that of an added cost value.It is made clear that the increased efficiency of vertical integration and added cost value in this case of titanium production is accompanied by the reduced intermediate consumption of raw and indirect materials, the increased labor productivity and added cost share in labor payment (1.9 times), profit share of the added cost (2 times), capital productivity (1.5 times).The calculations, of which the results are presented in this paper, testify to the efficiency of vertical integration process. They made it possible to study the vertical integration mechanism on the basis of added cost formation, to use it for forecasting the production program development scenarios, to substantiate a development strategy from the point of its contribution to Total Regional Product and Gross National Product.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:355

DOI: 10.17073/2072-1633-2011-2-73-76

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