Russia intends to bring its main aeronautical companies together in a single organization in order to reduce costs and increase the productivity of the UAC group. Among them are the traditional MiG and Sukhoi combat aircraft design bureaus.
The announcement was made by technology company Rostec, which called the new organization a “single corporate aircraft manufacturing center” to be located in Moscow.
“We are forming in Moscow a unified management organization and a unified center of design competencies for all UAC companies. Systemic reforms should improve the structure of the company and solve the issues of its financial stability, increase the competitiveness of domestic civil aircraft and cover the significant needs of Russia in modern aircraft for passenger transportation,” said Sergei Chemezov, head of Rostec.
In addition to MiG and Sukhoi, Tupolev, Ilyushin and Irkut also integrate the new center. Despite this, Rostec said that “design schools” will remain independent and will “receive new opportunities for development, as well as improved working conditions in the format of the Unified Engineering and Design Center”.
The Russian government, however, has not given a deadline for this transformation to be completed, although it recognizes it will take several years and will be implemented in stages.
The Russian aviation industry still preserves traces of the Soviet Union, when the structure of aircraft design and production was divided among several specialized bureaus. While the fighter planes were in charge of Sukhoi and MiG, the bombers were the responsibility of Tupolev. Transport aircraft belonged to Ilyushin and Antonov, now a Ukrainian company.
Unlike in the United States, where military projects are disputed by several companies (despite some being specialists in certain areas) in Russia there is no such competition after all the main manufacturers are controlled by the government.
Rostec believes that the merger between these offices will generate savings of around $1.75 billion and will not involve a reduction in staff.