Russian metallurgy and chemicals still 98% dependent on foreign software
Business3 October 2024, 06:31 PM
Companies in these sectors continue to use foreign software in 98% of their projects. Around 80% use IT solutions from Germany's Siemens, while another 18% rely on other foreign products. This software is primarily used in automated process control systems (APCS), which include both software and hardware components.
Following the exit of companies like Siemens, France's Schneider Electric, Japan's Yokogawa, and U.S. firms Honeywell and Emerson, the Russian Ministry of Industry and Trade formed a working group to develop domestic alternatives.
The development was assigned to companies including Severstal, Gazprom Neft, Transneft, EuroChem, Rosatom, and R&D association KIS, among others.
According to the ministry's plan, by the end of 2024, companies were expected to start testing prototypes of open APCS components for local control systems. However, a survey by Severstal showed that only 10% of companies have decided on an import substitution strategy for APCS, while around 60% are still exploring options.
One-third of the enterprises have chosen vendors but foresee various risks in implementing their projects.
In the power sector (generation and grids), foreign solutions accounted for 30-50% of use, and in oil transportation, no more than 30%. However, in the chemical, oil refining, and pulp and paper industries, dependency ranged from 80% to 97%, in metallurgy 90%, and in other sectors from 70% to 95%.