Aerospace Opportunities

An Expert's View about Aerospace in Russia

Last updated: 22 Feb 2011

Aerospace is one of the Russia's highest value adding manufacturing sectors, with between 275 and 300 aerospace companies, including 108 industrial producers, and 111 R&D and design bureaus. The Russian aerospace industry is one of several key business sectors kept under constant review and scrutiny by the Russian Government.

Sector briefing Aerospace opportunities in Russia Why Russia? Aerospace is one of the Russia's highest value adding manufacturing sectors, with between 275 and 300 aerospace companies, including 108 industrial producers, and 111 R&D and design bureaus. The Russian aerospace industry is one of several key business sectors kept under constant review and scrutiny by the Russian Government. It is estimated by the Federal Target Programme ?The Development of Civil Aviation Engineering in Russia for 2002-2010 and to 2015? to spend $6.3 billion for the support and development of the ?Russia expects to become aviation industry as Russia is looking towards the the world?s third largest hi-tech sector as a source of its future growth. It has aircraft manufacturer by been stated that Russia expects to become the world?s third largest aircraft manufacturer by 2015. 2015? Find general information on the Russian market conditions on UKTI?s website. The Doing Business Guide for Russia gives an overview of Russia?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Aerospace opportunities in Russia Significant share of Russian manufacturers Opportunities including the Aerospace companies need to The global aerospace industry has been upgrade their manufacturing technologies focused on Russia due to the huge growth and equipment. For example, a number of potential in the Russian market as Samara-based aerospace manufacturers of manufacturers replace and upgrade equipment carrier rockets, jet propulsions, aviation and look for modern materials, components, engines and different components for them, and technologies for their products. bearings for aerospace industry, etc., look for state-of-the-art machine-tools and tolling. Key government organisations Regional administrations launch machine tool representing 80% of the Russian modernisation programmes in their regions, Aerospace: * with recent initiatives in Samara, Ulyanovsk, United Aircraft Corporation (UAC), $3.81 bn . A and the Sverdlovsk Region. holding consisting of the leading Russian aircraft design and manufacturing companies, Seaplane production is fast developing and focused on the country's aircraft output and international business partners are sought for improving efficiency. * Un design, marketing, supply of propellers and ited Engine-building Corporation, $1.8bn UEC consolidates over 80% assets in Russia?s other components. engine-building sector. Was established as Oboronprom affiliate to control design and Advanced Composites manufactoring of series production of engines New projects emerging in the Russian for aerospace, energetic and transport. Aerospace sector envisage the use of advanced * Helicopters of Russia Holding, $0.9bn . The composite materials. UAC has announced a managing body of the consolidated Russian new $100m JV to manufacture composite wing helicopter industry, incorporates 14 helicopter components in the city of Kazan, Tatarstan. At companies, setting new standards of the inception phase, the JV would import raw competitiveness, efficiency, technology, and material for composite components. profitability. Rostekhnologii was established to promote the ?Aerocomposite?Ltd., created by UAC, deals development, production and export of high- with design, testing, manufacturing and tech industrial products. realisation of composite parts, aggregates and components of civil aircraft. It is currently Cooperation with the UK cooperating with British companies e.g. Memorandum Of Understanding was signed at ?Instron?, ?SciTech? and is eager to find new partners. the Farnborough International Airshow 2010 between the United Aircraft Corporation and Sukhoi, one of Russia?s premier aircraft A|D|S UK. The Russian Association of Aircraft designers, is already designing, producing and Engine Manufacturers also signed a similar MoU testing parts and units built from polymer and with A|D|S. Aerospace is likely to be a composite materials. The new production line particularly fruitful sector for collaboration, will be set up at Kazan?s Gorbunov KAPO with Russia set to develop Europe?s largest aircraft-building factory. Initial production, aerospace market by 2013. scheduled to begin in the Q1 of 2013, will be for Sukhoi?s commercial airliner, the SuperJet OPPORTUNITY AREAS IN TRADE 100, and Sukhoi?s MS-21 aircraft where composite components will account for at least Parts/Products/Platforms 30-40%. UAC requires a number of parts for existing aircraft and is also to be prime contractor on NB: Russian industry representatives will also major upgrade programmes. The wider range participate in International Composite of required products includes engines, control Exchange Programme in March 2011, UK. drives, power supply units for airfields, frequency converters, avionics, communication systems, navigation systems, on-ground electronic equipment, seals, emergency equipment, interior, fasteners, paints, lacquers. Aircraft Projects * Revenue in 2009 UK Trade & Investment Sector briefing: Aerospace opportunities in Russia A number of indigenous aircraft programmes show the second prototype to potential are underway or being planned that present customers in 2011, with batch production at opportunities for companies with contract the Kazan Helicopter Plant scheduled for 2013. research and/or consultancy capabilities - SSJ 100; MS-21; Tu-204 SM. Ulyanovsk Special Economic Port Zone ? SSJ-100 Creation of Special Economic Port Zone (SEPZ) A medium-haul passenger aircraft. Production cab of interest for companies who wish to version first flight was made in November manufacture close to their client or localize in 2010. The Superjet 100 is undergoing the Russia. The Ulyanovsk region ranks 1st in certification process in 2010. SSJ-100 is Russia in civil aircraft manufacturing. Investor supplied richly by international companies, but support and international cooperation is no commercial orders for the aircraft itself welcomed now for the new project-creation of have been fulfilled yet. SEPZ. Ulyanovsk region ? MS-21 The conception SEPZ include: A twin-engine medium-range single aisle ? aircraft maintenance and repairing passenger jetliner. The initial design is to complex; aircraft coversion include 33% of composite materials, manufacturing increasing to 40-45% provided a composite ? secondary activities: handling, shipping wing is added in 2015. The project is supported maintenance, cargo transportation, by numerous internat profiled consulting and legal support ional and particularly Brit Benefits from SEPZ: ish suppliers and the certification of the ? Exemption from customs duties, VAT aircraft is planned for 2016, so new and excise taxes; property tax for 5 international partners could be engaged. years; land tax for 5 years ? VAT refund for goods/equipment placed ? Tu 204SM in SEPZ An enhanced reduced-weight version of the Tu- ? Profit tax rate reduction to 15.5% 204-100, with improved systems. Around 18% of the current production Tu-204 is composite SPACE opportunities (a separate Sector by structural weight, and this will increase to Report on Space to follow in 2011) 22-25% on the revised design. Russia intends to create a brand new Deliveries are scheduled to start in 2011. Spaceport ? Vostochny. The project will be For now Tupolev is ready to cooperate with implemented in stages, with construction due new partners and suppliers of equipment to to begin in 2011. In 2015 the first unmanned assembly and service centers. launch will take place, and the launch of the space shuttle is planned for 2018. The Helicopters Vostochny is likely to launch Russia?s first Russian Helicopters is the leading Russian full- manned mission to Mars. The construction of cycle designer and manufacturer of helicopters Vostochny will require an investment of for civilian and defence markets. The holding $11.5bn and it is going to become Russia?s actively works with international suppliers and major spaceport, with most launches to be seeks new partners in the following areas: made from there. - Safety, medical, search and rescue and fire protection equipment for helicopters If you have any questions on the opportunities - Avionics above, contact the UKTI contacts named in this - Navigation and connection systems report. Business opportunities aimed - Fasteners specifically at UK companies are added daily to - External equipment UKTI?s website. These leads are sourced by our - Tools and materials staff overseas in British Embassies, High - Helicopter market analysis and Commissions and Consulates, across all sectors specialized Mass Media and in over 100 markets. Russian Helicopters have a number of projects You can be alerted to business opportunities on like ?i-171?, ??-32?11BC, ??-62, ?i-38, ?i- a regular basis by registering on the UKTI 26?2, Ansat, ??-226?, ?i-34?1 which are in website. Find out more on UKTI?s business progress now as well as new-generation Mi-38 opportunities service on the UKTI website. utility transport helicopters, production to start in 2013. The Mil plant in Moscow is planning to UK Trade & Investment Sector briefing: Aerospace opportunities in Russia Major events and activities UKTI contacts MAKS-2011 Elena Pashina Contact: www.aviasalon.com/maks Trade & Investment Adviser Time: August 16-21, 2011 British Embassy Moscow Tel: +7 495 956 7229 HELIRUSSIA-2011 Email: Elena.Pashina@fco.gov.uk Contact: www.helirussia.ru www.ukti.gov.uk Time: May 19-21, 2011 Olga Makarchuk Major Russian Aerospace companies are Team Leader always represented at international British Consulate General airshows: St.Petersburg Tel: +7 812 320 3223 Paris Air Show (Le Bourget) Email: olga.makarchuk@fco.gov.uk Contact: www.paris-air-show.com www.ukti.gov.uk Time: June 2011 Farnborough (UK) Contact: www.farnborough.com Time: 2012 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Aerospace opportunities in Russia Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Russian market are advised to you to meet contacts and promote your undertake as much market research and company in the Russian market planning as possible in the UK. UKTI?s team in Russia with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Russian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Aerospace opportunities in Russia
Posted: 20 January 2011, last updated 22 February 2011

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