Rostec to invest 21.9 billion rubles

United Engine Corporation, part of Rostec State Corporation, plans to upgrade its production facilities in 2017-2025 to prepare for mass production of PD-14 aircraft engine. The company intends to invest 21.9 billion rubles into it.

One of the upgrade program directions is defined as re-equipment of production with modern machinery — universal machining centers intended for manufacturing complex parts. For this, 4.6 billion rubles was allocated; funding is made via the corporate bonded loan.

Another 14.3 billion rubles will be spent on creation of after-sales service system: establishment of repair facilities, training centre, spare parts distribution network and maintenance and repair centers. The project will be implemented using funds from federal budget.

Production line designed to produce at least 50 sets of equipment per year will be organized for PD-14 aircraft engines assembly. During 2017-2025, 2.95 billion rubles of own and borrowed funds of UEC will be invested in the project.

United Engine Corporation expects to complete the upgrade of the stand for aircraft engines testing this year. The launch of the new stand is planned for the third quarter of 2017. Investment in the project is estimated at 96.2 million rubles.

The total cost of works on preparation of PD-14 aircraft engine for serial production in 2017-2025 will be 21.9 billion rubles.

PD-14 engine is created in the framework of development program for a family of engines with 12.5 to 18 tonnes thrust for passenger and cargo aircraft, including for prospective MS-21 airliner developed by Irkut Corporation.

In 2017, UEC plans to register exchange bonds program. Currently, four issues of UEC classic bonds for a total amount of 33.213 billion rubles are in flotation.

RostecRostec is a Russian corporation, created in 2007 to promote development, production and export of high-tech industrial products for civil and military purposes. It is comprised of over 700 organizations, which form 9 holding companies in the military-industrial complex and 6 in civilian industries, as well as 32 organizations under direct management. Rostec portfolio includes such well-known brands as AvtoVAZ, KAMAZ, Concern Kalashnikov, Russian Helicopters, VSMPO-AVISMA and others. Rostec organizations supply to and operate in over 70 countries. Consolidated revenues of Rostec companies in 2015 exceeded 1.14 trillion rubles (over 19 billion USD). According to the new Rostec strategy, the main objective of the corporation is to provide a technological advantage to Russia in highly competitive global markets. The planned investment volume for the development program until 2025 is over 4.3 trillion rubles (over 70 billion USD).