Implementation of the state policy to support the Altai Krai transport engineering enterprises (a case study of the holding company Barnaultransmash, 1999-2008)

The following article studies the problematic aspects of the implementation of the state policy to support an Altai Krai transport engineering enterprise, the holding company Barnaultransmash (BTM JSC) in 1998-2009. The economic recession of 1998 led to changes in the guidelines of the state policy aimed at the support of Altai Krai mechanical engineering enterprises. The main goal of local governments during the aforementioned period was to develop a complex of measures aimed at regional economy stabilization and creation of circumstances which would favor conversion in industrial sector enterprises. The market crash of 1998 became the leading cause of completion materials price growth; the materials were required by BTM JSC to continue the production of its principal products in 1999. Reduction of state-guaranteed orders, wear and tear of principal production facilities, low production profitability affected negatively security prices of the factory. Starting with the second half of the 1990s and until 2002 there was no concerted conversion strategy among the large shareholders of BTM JSC. Most shares of stock were sold to Samarskaya Obyedin-yonnaya Kompaniya, Ltd. due to the lack of interest in BTM JSC development among the investing public of Altai Krai. In 20002004, the decline of production and manufacturing personnel reduction were registered in BTM JSC. The company had issues with sales of products. The primary objective of the BTM JSC management in 2004-2006 was to stabilize the financial and economic state of the enterprise. The implementation of this objective depended directly on long-term contracts for diesel engines with largest transport engineering companies. Domestic market orientation and partial optimization of the production process allowed to retain the production pace in 2006-2008. During the first half of the 2010s the principal production process was hindered by the lack of a proper control by the Altai Krai local government, poor refinement of the state policy aimed at the support of transport engineering, insufficient legal regulation of stock market accompanied by low standards of managerial work by the factory management during this period. Despite the positive trends in the enterprise operation during the second part of the 2010s the BTM JSC Board of Directors was unable to settle the issue of equipment upgrade, which led to a decrease in production profitability.

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