CEO: Rostec, United Aircraft ‘could probably’ merge - RUSSIAN AVIATION

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CEO: Rostec, United Aircraft ‘could probably’ merge

Russian Aviaton » Wednesday March 15, 2017 17:43 MSK

A merger between Russia’s state-owned Rostec and United Aircraft Corp. (UAC) “could probably be appropriate, but not today,” Rostec CEO Sergey Chemezov told Russia 24 TV channel March 14, ATWonline reported.

Chemezov added that UAC now buys 60%-70% of components for civil and military aircraft from Rostec factories. “These include engines, avionics, radio-electronic defenses, and missiles—a lot of things. UAC mainly does the assembling,” he said.

Earlier this year, Rostec approved a strategy to develop an aviation cluster—made up of manufacturers of engines, helicopters, avionics and accessories—to increase their global market share to 5% and Russian aircraft market share to 75% by 2025. According to the plan, Rostec expects revenue from cluster members to grow 11.9% per year through 2025 to RUB1.5 trillion ($25.5 billion).

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