The history of the Izhevsk Engineering Plant (Izhmash) dates back to 1807. Mining engineer Andrei Deryabin was charged with building a new enterprise on the Izh River.
He made several far-sighted decisions that offered key strategic advantages: the munitions factory was coupled with an iron works, so that it never had any problems with raw materials. The plant had a heavy concentration of production capacity.
The first weapon, seven-line smooth-bore muzzle-loaded flintlock "No.15" rifles (17.7 mm calibre) were produced in the autumn of 1807. By the beginning of the war against Napoleon in 1812 the factory was operating full blast, producing firearms and bladed weapons for the Russian army. The Izhevsk plant had already acquired the status of one of Russia's main arsenals.
Increased arms production required the construction of a large warehouse instead of the small auxiliary premises. The Arsenal, built for this purpose in 1823-1825 to a design by architect Semyon Dudin, now houses the National Museum of Udmurtia.
The quality of weapons was improving year in and year out, thanks to improved equipment and development of iron production. The Izhevsk plant managed to do what even foreigners thought unrealistic at the time, i.e. to achieve interchangeability of weapons parts. The future Emperor Alexander II, who visited Izhevsk in 1837, was amazed when 11 rifles were taken apart, the parts were mixed up and then the rifles were reassembled in front of his eyes.
The plant is unique, as shown by the following data: during World War II it produced 11.3 million rifles and carbines, more than all the German factories during the same period (10.3 million). Mass production was launched of anti-tank rifles, aviation machine-guns, aviation cannon, pistols and revolvers. During the war Izhmash produced enough weapons in a single day to fully equip one infantry and one air force division.
The post-war period saw the launching of the production of AK-47 (Kalashnikov) automatic rifle, which in various modified forms is used by the armies and special forces of 106 countries.
At present, Izhmash is the largest diversified engineering enterprise, a holding which comprises two subholdings: Arms and Military Equipment (under the managing company Izhmash Concern) and the Civilian Subholding (under the managing company Izhmash-Holding).
The government-owned shares of the enterprise have been transferred to the Rostekhnologii state corporation as the property contribution of the Russian Federation.
The holding produces automatic small arms, a range of hunting and sports weapons, pneumatic rifles as well as turning lathes, specialised machine tools, other tools and technological equipment. In addition, it produces high-precision guided artillery shells; fire-control systems for guided weapons; new models of motorcycles and small cars.
In 2009 the Izhmash Group enterprises produced 4,907.1 million roubles worth of goods, the same amount as in 2008. Output in the first quarter of this year was 857.6 million roubles, i.e. 33.3% down on the same period of 2009. The enterprise employed 7,652 workers in 2009. The number dropped slightly to 7,193 in the first quarter of this year. The average monthly wage last year was 12,648 roubles, and in the first quarter of this year 11,915 roubles.
Izhmash accounts for more than 90% of combat automatic small arms supplied to the country's army and security forces. Its share in the Russian market of various modifications of sniper weapons is about 95%, and 36% of civilian (smooth bore) weapons.
Izhmash Concern has designed and implemented a comprehensive programme for introducing innovations in production of civilian, service and combat weapons. The programme won the 2007 State Prize of the Republic of Udmurtia for Science and Technology. Izhmash's project for mass production of extra-strong springs got the support of the ROSNANO state corporation.
As part of renewing its plant and improving technology of arms production, the Izhevsk Munitions Plant recently acquired modern technology from Germany, Switzerland and Italy worth more than 400 million roubles. As part of the state programme of support for the corporation, Izhmash Concern signed an investment contract in 2008 that grants tax exemptions for property acquired to implement the investment project Creation of Effective Production of Small Arms Command Details.