A partial flotation of state-owned Russian Helicopters on the London and Moscow stock markets was postponed last week after potential investors failed to subscribe. The joint stock company’s major shareholder, Oboronprom, was offering new and existing shares exceeding $500 million, implying a total value for the company of between $1.8 billion and $2.4 billion. This was the first such offer of a company in Russia’s defense industry.
Ulan-Ude Aviation Plant
Russian Helicopters last month announced it has consolidated “control stock of all of Russia’s rotorcraft-building enterprises,” as it has increased its stake in Rostvertol from 23 percent to 75 percent.
Looking beyond the current financial picture, the Russian aviation industry plans to increase helicopter production in the coming years, according to Andrei Reus, director general of Oboronprom. In fact, the Russian helicopter manufacturing industry aims to capture 15 percent of the world’s helicopter market by 2015.
Operators of Mil helicopters meeting at Russia’s Ulan-Ude Aviation Plant (UUAP) in late July heard how the Mil-171 led rescue operations for victims of the recent earthquake in China’s Sichuan province. Of the 137 Russian, Chinese, French and U.S. helicopters involved in the effort, 74 were Mi-171s, and these were responsible for rescuing more than 37,000 people (of a total of around 60,000).
Russia’s helicopter business received a boost with an announcement by the country’s vice premier, Sergey Ivanov, that production rates for both civil and military models should be increased. Next January, the government is due to issue draft plans that will call for almost $6.4 billion of fresh investment in the industry through 2015, with half of the sum to come from the private sector.
Russian President Vladimir Putin’s recent Middle East tour triggered the signing of a $25 million contract to supply six Kamov Ka-226 light helicopters to Jordan over the next two years. The deal is a breakthrough for Russian helicopter manufacturers as Jordan previously bought only Western-built rotorcraft.