Rybinsk management leads new company(364 words)

Published: 7/9/2001

The process of merging aero engine producer Rybinsk Motors and the Lyulka-Saturn design bureau appears to have reached its conclusion with a meeting on the 5th of July between the two companies. Shareholders gave the approval for the merger in late April giving the state 37% of the new venture NPO Saturn despite the fact that its previous holdings in Lyulka-Saturn were less than 2%. Reflecting that the state's importance to the new company given its focus on the Al-31, used in the Su-27 family, the new engine for the fifth generation fighter and the desire on the part of the Russian government to retain a significant say in the development of what are seen as key assets. The appointment of Yuri Lastochkin as head of the new company, has suggested that as former General Director of Rybinsk Motors, the Rybinsk management team will dominate the new entity. NPO Saturn is scheduled to incorprate Ufa based UMPO by the year-end, giving the state 50% of Saturn. The two parties were awarded the contract earlier his year to develop the new Al-41F for the fifth generation fighter. The strategy for the new business according to Lastochkin, will focus on continuing developments of its existing products, the most prominent of which is the Al-31 with both military and civil applications, that latter being in the provision of turbines for oil and gas industry. The continued maintenance of the D-30-series engines used on the Il-76, Tu-154M and the Il-62M. Developments of the turbine business is of key importance to the company that now has 50% of its revenues from non aerospace sources and has recently been demanding that Perm Motors shares production documentation for the PS-90 with support from the Ministry of State Property, so that it can produce the industrial derivative of the PS-90 for gas giant Gazprom. Recent announcements have also suggested a closer relationship with SNECMA, with the announcement of the recent EADS commitments, being accompanied by agreements on the production of a reported 20% of the CFM-56s on 36 A-320s for Russia. The latter order, although widely acknowledged as a possibility, is yet to be confirmed by its purported buyer Aeroflot.

Article ID: 2629