Russia continues to consolidate its defence and now aeronautics industry around its largest public defence company, Rostec. The incorporation of United Aircraft Corporation will enable Rostec's aviation division to increase its turnover to around 15 billion euros, propelling the state-owned company among the world's leading aircraft manufacturers.
UAC incorporated in Rostec Group
Russia pursue consolidation of its defence and now aeronautics industry around Rostec, its largest public defence company. According to the latter, UAC’s incorporation will enable Rostec’s aviation branch to benefit from a turnover of around 15 millions of euros, propelling the state-owned company among the world's leading aircraft manufacturers. Now, with UAC under Rostec control, the entire aircraft production chain has been combined into a single entity, which should strengthen production cooperation between aircraft manufacturers and parts suppliers.
Rostec control 92% of UAC shares
After Vladimir Putin declaration in October 2018, Rostec wanted to buy 92% of UAC shares. The transfer of the remaining stake has been slowed down, and the Covid-2019 crisis has most likely slowed the transaction.UAC is the centerpiece of Rostec, which today controls the majority of Russian aviation assets : company controls Russian Helicopters, United Engine Corporation and about 750 component suppliers who works with UAC.
Towards an international player in the aeronautics market
Efforts to transform UAC’s activities continue. The company has stepped up its efforts to better consolidate its varied activities under a single structure, with the goal to transform the company into an international player in the aviation market. The most recent decision was to rename Sukhoi Civil Aircraft Company. This new division has been combined with the UAC-Integration Center and now forms the Commercial Aviation Division in Irkut. The responsibilities of the new division include the MC-21 and SSJ-100. Future projects such as the Sino-Russian CR929 long-haul aircraft and the re-launch of the Il-114-300 Ilyushin turboprop engines will also be under the auspices of the division. The company expects the new structure to boost productivity, reduce costs and avoid layoffs. In addition, the decision could facilitate the separation of civilian operations from military units, which have previously been subject to Western sanctions.