The All-Russia Central Executive Committee and RSFSR Government decided on economic and cultural development for the Far Eastern Territory in 1930. The decision on the construction of a shipbuilding plant on the Amur bank followed in August 1931.
A Government commission visited the taiga village of Permskoye on the left Amur bank in January 1932, and chose it as the site of the Amur Shipbuilding Plant. A site was chosen simultaneously for an aircraft-building plant near the Nanai village of Dzyomgi.
June 12, 1932, is considered the official beginning of Komsomolsk-on-Amur's history.
Today, it is the third-largest city of the Far Eastern Federal District, with a population of 270,700 and an area of 325 sq km.
The city is situated at the crossing of the region's principal transport routes-the Baikal-Amur and Trans-Siberian railways, and highways leading to Vladivostok and the northern part of the Russian Far East. It has three railway stations, a river port and two airports.
The economy is dominated by engineering, metal processing, aircraft manufacturing, shipbuilding, transportation, technological equipment, steel production and petro chemistry.
The city possesses a developed research and production complex. High tech industries (avionics, shipbuilding, offshore oil and gas derricks, etc) account for 70% of production. Industrial output and the volume of services have increased by 19% in the last three years.
The revenue of large and medium industrial companies for 2008 amounted to 66.6 billion roubles, according to preliminary estimates-or 118.3% over 2007 in comparable prices.
Living standards had been steadily improving before the financial and economic crisis set in toward the end of 2008. Though the city maintained its basic macroeconomic indices, engineering output fell in the 4th quarter of 2008 by 34% against the same period 2007.
Industry
- The Yury Gagarin Aircraft Production Association (OAO KnAAPO) manufactures civil and military aircraft.
Production in 2008 was 63.8% of the 2007 output-primarily because the company started research and development for mass production of new makes.
1,169 employees are working part-time, and the company intends to reduce redundant personnel.
- The Amur Shipbuilding Plant (OAO ASZ) manufactures civil and military vessels, offshore oil derricks and equipment.
- ОАО Open joint-stock company Amurmetall manufactures steel and sheet steel and cast iron products.
Production increased by 50% in 2008. However, company losses amount to 1.5 billion roubles because of slumping demand for metal in Russia and abroad.
The company has suspended production through May 11. 2,500 employees are on mandatory leave.
The enumerated companies are entitled to federal support. They are on the list of 295 strategic enterprises to receive Government aid during the crisis.
Investment
Komsomolsk-on-Amur accounts for 19.5% of overall investments in the Khabarovsk Territory. Corporate money made up 92% of 2008 financing.
Budget allocations were 8.6% of total investments-broken down as: federal 2.5%, territorial 2% and local 4.1%.
According to financial crisis-related forecasts, investment will fall in 2009 by 40% against 2008 in comparable prices. Permanent investment is expected to be approximately 7.5 billion roubles.
Labour Market
Unemployment was at 2.9% on May 1, 2009, with more than 4,500 registered unemployed. It has grown by 45.9% since the start of the year, and 80 companies have announced the pending dismissal of another 2,800.
To reduce labour market tensions, a regional programme is being implemented on 189 million rouble federal Government allocations. Industrial companies are encouraged to make new labour contracts.
The programme is bringing its first fruit. The number of dismissals was reduced in the previous weeks to 15-20 a week against 80-90 in January and February.