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Russia’s state-owned Rostec Corp. has approved a strategy to develop an aviation cluster

Russian Aviaton » Tuesday February 7, 2017 17:12 MSK

Russia’s state-owned Rostec Corp. has approved a strategy to develop an aviation cluster—comprising manufacturers of engines, helicopters, avionics and accessories—to increase their global market share to 5% and Russian aircraft market share to 75% by 2025, ATWonline reported.

According to Rostec, the strategy expects revenue from cluster members to grow 11.9% per year through 2025, to RUB1.5 trillion ($25.5 billion).

Rostec works in the military and civil sectors, which have a 90% and 10% market share, respectively. Rostec wants to increase the volume of civil aviation products to 30%-40% by 2025.

Rostec aviation companies aim to increase component delivery to foreign aircraft manufacturers as well as to Russian manufacturer United Aircraft Corp.

As the program develops, Rostec intends to create a one-stop, after-sale support system for its output; the after-sale support should more than double revenue through 2025.

Rostec is a state-owned corporation that comprises 700 companies representing military and civil industries. Rostec’s portfolio includes such brands as Russian Helicopters, VSMPO-AVISMA and Perm Engine Co.

In 2015, Rostec’s consolidated revenue topped RUB1.1 trillion. Planned investments through 2025 are RUB4.3 trillion.