Non-Subscriber Extract
Oboronprom targets Ukrainian company as helicopter consolidation continues
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| 23 August 2006 |
By Ben Vogel Editor of Janes.com
Russia is poised to take another step towards centralisation of its military aviation industry with the announcement that Oboronprom plans to buy a controlling stake in Ukrainian company Motor Sich.
An agreement would unite Russian military helicopter airframe and engine production and would see Motor Sich incorporated into a holding of helicopter manufacturers, which would operate under the aegis of Oboronprom.
Motor Sich inherited most of the former Soviet Union's aero engine manufacturing capabilities. It produces turbofan, turboprop and rotary-wing turboshaft engines that power aircraft in Russian service such as Mi- and Ka-series military helicopters.
Jane's Aero-Engines states that the company's annual export revenue since 2000 has averaged about USD200 million.
The acquisition of Motor Sich is unique in being the first made by Oboronprom outside the Russian Federation, but it dovetails with Moscow's helicopter manufacturing strategy, which aims to establish an umbrella group of engine producers by the end of the year.
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© 2006 Jane's Information Group
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