Kaskol looks a better candidate (420 words)

Published: 4/18/2001

The reports that Aviastar has identified a strategic investor, have led to reports that Boeing may soon take a stake in Aviastar SP, the production subsidiary of OAO Tupolev and currently 73.75 % owned by the state controlled holding company with Aviastar (25.4%) and three other shareholders. According to reports of comments made by sources within the company 25% of the company may be sold. It is unclear if this will be from existing holdings, but newspaper reports quoting Vitaly Zotov Chairman of Aviastar and Igor Shevchuk General Designer of OAO Tupolev have suggested that stock issuance is on the agenda for a strategic investor. Although the identity of the investor, already confirmed by the regional government to be in negotiation, is unclear. It seems unlikely to be Boeing given that sources have described the investor as “ a Russian company that already owns aircraft production”. The latter statement limits the field to two candidates Siberian Aluminium (SibAl), currently owner of Aviakor and industrial holding company Kaskol that has a number of interests in the aerospace industry including Rosvertol and Sokol. Both companies however, have been quick to deny the rumours leaving observers somewhat baffled. Despite these denials it seems likely that Kaskol will be the most probable investor given that SibAl experience at Aviakor has been a disaster and the holding company already has close links with Aviastar through its 16% holding in Volga Dnepr and previous dealings in An-124s through a defunct air cargo business. It is also interesting to note that chnages in the plant's management, with the unexpected retirement of Gnerla Director Gennady Korotnev, occured prior to the introduction of the new investor suggesting some familiarity with the Ulyanovsk plant's current short comings. Aviastar's need for capital is pressing for the production of Tu-204s and the funding of the rumoured transfer of the An-70 from Aviakor in addition to the debts of the plant. Other requirements have also become evident with the efforts of Tupolev to transfer serial production of the Tu-334, from cash strapped RSK MiG to Aviastar. This would require however, a substantial investment of at least $30m, which Tupolev currently does not have, but privately owned Kaskol does have access too. Kaskol has also made it plain that it sees aerospace as one of it core areas of development, with investments and participation in a wide range of aerospace concerns including landing gear producer Gidromash, making it difficult to ignore the opportunity to take a holding in the most modern of Russia's civilian plants. It appears from the reports that confirmation of the investor may come in the next few days.

Article ID: 2498