The Volga-Kama waterway, being one of the main trade and transport arteries of Russia, faced the need for modernization and the transition to steam vessels in the 19th century. This requirement of the time became the catalyst for the establishment in Saint Petersburg on March 8, 1849, of the "Nizhny Novgorod Machine Factory and Volga Tugboat and Freight Shipping Company." The founders of the company were influential figures of their time: Lev Viktorovich Kochubey, son of the chairman of the State Council, adjutant to the imperial suite Vladimir Alexandrovich Menshikov, son of the head of the Naval Department, and industrial-financial magnate Dmitry Egorovich Benardaki.

Since its founding, the "Krasnoe Sormovo" factory has become an important part of Russian industry, regularly changing owners and adapting to the demands of the time. In the pre-revolutionary period, the factory produced 489 vessels, which indicates its significant contribution to shipbuilding. In 1887, fulfilling an order from the oil company "Nobel Brothers Oil Production Partnership," the factory built the first sea tanker, marking an important milestone in the development of the oil industry.

In 1896, during the All-Russian Exhibition in Nizhny Novgorod, the factory presented the two-deck paddle passenger steamers "Emperor Nicholas II" and "Empress Alexandra," which were the first to be equipped with electric lighting, a groundbreaking step in shipbuilding. In the early 20th century, the factory also became a pioneer in creating the world's first motor ships. In 1903 and 1904, diesel-electric ships "Vandal" and "Sarmatian" were built for the "Nobel Brothers Partnership," marking the beginning of a new era in shipbuilding.

The "Krasnoe Sormovo" factory also excelled in the production of steam engines. In 1902, two of the largest steam engines of that time in Russia were built for the cruiser "Ochakov." In the following years, the factory expanded production, releasing steamships, ferries, and the first marine diesel tanker in Russia. In 1910, under the guidance of engineer Boris Sergeevich Malakhovsky, the first locomotive of the series S, known as "Sormovsky," was built, which gained recognition as the best passenger locomotive in pre-revolutionary Russia.

However, the history of the factory was not without its challenges. On January 18, 1970, a radiation accident occurred at the factory during the construction of the Project 670 "Skat" nuclear submarine. During the testing of the VM-4-1 reactor, an unauthorized launch occurred, leading to its partial destruction and radioactive release. This tragic event became one of the most serious accidents in the factory's history.

With the development of technologies and changes in the economic situation, the factory continued to adapt, maintaining its significance in Russian industry. In 1994, it became a public joint-stock company, and since 2015, it has held the status of a public joint-stock company. Today, "Krasnoe Sormovo" remains one of the largest shipbuilding enterprises in Russia, specializing in the production of river vessels, river-sea type ships, as well as equipment for drilling rigs and agricultural machines.