Russian companies make their mark

18 Nov 2002

The laser industry in Russia is gaining momentum as a report shows that annual exports now exceed $100m.

The technical expertise of the former Soviet Union in the lasers and optics field has never been in question. But turning that expertise into wealth is a different matter.

The hangover of Communism, with its associated emphasis on secrecy and bureaucracy, coupled with the political and economic turmoil of the early 1990s, is yet to fully clear. But there are signs that the Russian laser industry is putting itself on the map.

In July, the Russian Laser Association (LAS) held its annual gathering in Moscow. Despite attracting over 100 exhibiting companies, the show - LIC Russia - went largely unnoticed in the West. Apart from a sprinkling of German companies, all of the exhibitors were based in the former Soviet Union.

A report compiled by Arnold Mayer of the Swiss market analyst Optech Consulting suggests that Russian manufacturers are catching up with the West. "The companies know their market and the position of their products in international competition. Some companies now export over half of their production to western Europe, Japan and North America" says Mayer's report.

And according to the LAS, exports of laser technology have reached USD 100 million per annum. An impressive figure given that export tax is set at 20%. Although the majority of exports go to other former Soviet states, China and Eastern Europe, Mayer says that there is also an upward trend in exports to the West.

Imports of laser technology from the West are also rising, but generally confined to larger companies, contends Mayer. "Large companies have the necessary financial resources to buy from the West, but high capital costs make it virtually impossible for smaller Russian companies to invest in laser equipment."

Today, the leading domestic market for laser companies in Russia is materials processing. Probably the best-known laser-company to come out of Russia is the IRE-Polus group, which manufactures high-power fibre lasers. With production sites in the US and Germany, this company sets a fine example for other Russian firms to follow.

However, lack of overseas investment is a problem: "Laser companies in Russia are mainly owned by Russian investors, their management, or the scientific organizations from which they have developed. So far there are hardly any western investors," claims Mayer. "Investment conditions in Russia are still considered difficult, with bureaucracy the principal obstacle."

Another problem, says Mayer, is the lack of production and organization expertise, which has hindered the transition from custom-built products to serial production.

Despite this, Mayer believes that the growth potential of the Russian market must not be overlooked, with clear opportunities for suppliers to exploit. One of Russia's biggest assets is its supply of talented junior scientists. According to Mayer, many students gain industrial experience by working several days a week at laser companies spun out by research institutes, before moving on to full-time employment after completing their studies.

Author
Michael Hatcher is technology editor of Opto and Laser Europe magazine.