Rostec Increases Exports of Electronic Components Amid COVID-19 Pandemic

Rostec Increases Exports of Electronic Components Amid COVID-19 Pandemic

The Ruselectronics holding of Rostec State Corporation will increase exports of magnetically operated sealed contacts (reed switches). Supplies abroad are set to increase by 35% over the quarter. The demand for such products increased due to Chinese enterprises restarting after lockdown, as well as production stopping in other countries due to the COVID-19 pandemic.

In April, Rostec shipped 16 million reed switches to foreign customers, in May deliveries to other countries will increase to 18 million pieces. The Ryazan Metal Ceramics Instrumentation Plant (RMCIP), part of Ruselectronics, is engaged in production of reed switches. The company is one of the three largest manufacturers of reed switches in the world, with a market share of about 14%.

“In April, we received a large volume of orders from Chinese businesses returning to work after being locked down due to the coronavirus pandemic. China is one of our main markets, about 80% of our exports go to the "world’s factory". Demand is also growing in connection with the news of ceasing American production of reed switches in the Philippines. We have organized employees’ work in compliance with all sanitary requirements, including on weekends. As a result, we were able to fully meet the needs of the market. The plant has fully provided production orders for the first half of the year and is forming a portfolio of contracts till the end of the year,” said RMCIP General Director Arkady Orlov.

Reed switches are electronic components that are widely used in household appliances, automotive, medical and telecommunications equipment, automation and security systems.