United Engine Corp to invest almost 340 bln rubles in development to 2025 - CEO
MOSCOW. Dec 4 (Interfax) - The strategic development of United Engine Corporation (UEC), a division of Russian state corporation Rostec, in the period to 2025 calls for overall investment of more than 338 billion rubles, UEC chief executive Vladislav Masalov said on Thursday.
"Total requirements for financing of measures for the strategic development of UEC amount to 338.9 billion rubles. About 60% of this will be spent on expansion of existing production capacity and technology updates, and about 40% on financing of research and development work," Masalov said at a presentation of the strategy.
He said the company plans to diversify its order portfolio and services by expanding its presence in the market for civil aircraft engines.
Masalov said the target model of UEC's development strategy to 2025 is diversification while maintaining leading positions on the global and Russian markets for military products, expanding production and sales of civilian airplane and helicopter engines, energy and gas pumping units, and marine and rocket engines.
There are also plans to enter the "global market as a supplier of second-fourth level components," he said.
He said key steps toward achieving the company's strategic goals will be developing cooperation, specializing production, expanding outsourcing, and centralizing R&D within the UEC Engineering Center. UEC's management structure will be transformed on the principles of a program system of management.
The strategy provides for the achievement of objectives in stages. The first stage, 2014-2017, provides for financial recover of the company, and implementation of new standards for the management of operations and development of new products.
The second phase, 2018-2021, will be devoted to restructuring the corporation, launching promising products, including the PD-14 engine for the MC-21 passenger airliner, a future engine for a fifth generation fighter jet, as well as bringing the RD-33MK and AI-222-25 engines up to western technical characteristics.
The third stage, 2022-2025, is expected to see the completion of the transformation and transition to efficient and transparent organization of UEC's operations.
Masalov said UEC is currently working on six major R&D projects, including three in military aviation, and one each in the areas of civilian airplane engines, helicopter engines and gas turbine units.
"The holding's new strategy has determined elements with an emphasis on which the company will continue its development within the context of a vertically integrated business model. We will realize the most possibilities in those segments of production where we have undisputed advantages. This is development and construction of military aviation engines. We will also expand our involvement in the foreign and domestic markets for civilian products. By 2025, UEC will not only become steadily profitable, but will also have sufficient resources for innovation and investment," Masalov said.