MC-21 production drives engine investment

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United Engine Corporation, part of Russia’s Rostec State Corporation, announced plans to upgrade its production facilities between 2017-2025 to prepare for mass production of PD-14 engine. The company intends to invest 21.9 billion rubles. Rostec reports one of the upgrade program pieces is defined as “re-equipment of production with modern machinery” — essentially universal machining centers intended for manufacturing complex parts. For this, 4.6 billion rubles was allocated; funding is made via a corporate bonded loan.

Another 14.3 billion rubles will be spent on the creation of an after-sales service system: including the establishment of repair facilities, training center, spare parts distribution network and maintenance and repair centers. The project will be implemented using funds from the Russian federal budget.  A production line designed to produce at least 50 engines per year will be organized for PD-14 assembly. During 2017-2025, 2.95 billion rubles of own and borrowed funds of UEC will be invested in the project.

United Engine Corporation expects to complete the upgrade of the aircraft engines testing stand this year. The launch of the new stand is planned for the third quarter of 2017. Investment in the project is estimated at 96.2 million rubles.  The total cost of work on preparation for the PD-14 engine for serial production in 2017-2025 will be 21.9 billion rubles.  The PD-14 engine is created in the framework of a development program for a family of engines with 12.5 to 18 tonnes (26k pounds to 40k pounds) thrust for passenger and cargo aircraft, for the MS-21 airliner developed by Irkut Corporation.

In 2017, UEC plans to register an bonds exchange program. Currently, four issues of UEC classic bonds for a total amount of 33.213 billion rubles are in flotation.

© 2017, Addison Schonland. All rights reserved.

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