Aviation Equipment holding company will launch production of components for Sukhoi SuperJet 100 aircraft - RUSSIAN AVIATION

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Aviation Equipment holding company will launch production of components for Sukhoi SuperJet 100 aircraft

Russian Aviaton » Thursday February 27, 2014 18:45 MSK

Aviation Equipment holding company (part of Rostec State Corporation) plans to start deliveries of components for Boeing aircraft systems in 2017, press-service of Rostec reports with reference to the holding’s CEO, Maxim Kuzyuk.

"According to the Aviation Equipment, the steps taken will help increase the share of after-sales service in the holding’s total revenues from 2% to 14% by 2020. At that the revenues from production of components and systems for foreign-produced aircraft will reach 9 billion rubles", - the press-service noted.

Another top-priority area is after-sales service and development of components and systems for foreign-produced aircraft. The size of this market (about 460 billion rubles) is 17 times as much as the potential of Russian market, where Aviation Equipment has a share of 46%. In the network of holding’s development strategy it plans to start deliveries of components for Boeing aircraft systems in 2016-2017.

«In order to improve the holding’s production efficiency its purchasing system will be reviewed for the purpose of decreasing the cost of purchased goods and services. The administrative expenses will be cut, a comprehensive quality management system will be established by means of certifying the products and manufacturing processes in accordance with international standards, and a technical doctrine will be implemented», - the press-service noted.

Aviation Equipment started the development of Enterprise Resource Planning (ERP) system in 2014 (such systems are used by the world’s leading aviation enterprises in order to integrate manufacturing processes and manage the company’s finances and assets). ERP is one of the key factors for the holding’s development as a transparent company for both investors and international partners. Thus the holding’s value may be increased by 40%, while the company’s purchasing and management systems will become more efficient for the holding, its enterprises and its partners.

Significant funds (about 7% of the holding’s revenues) will be allocated annually for research and development activities. The total amount of investments in research and development projects will exceed 29 billion rubles by 2020.

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