WORLD LEADING HELICOPTER MANUFACTURER PLANS NEW EGYPTIAN SERVICE CENTER TO OPEN IN 2017
Cairo, Egypt 11 June 2015 - Russian Helicopters - the world’s 4th largest helicopter maker - is negotiating new deals and expanding horizons. Egypt and Russia are currently discussing large-scale cooperation projects resulting from the“Trade and Industrial Dialogue – ‘Russia-Egypt’”, which was recently held in Cairo. At the closing press conference, Russian Helicopters CEO Alexander Mikheev discussed the importance of cooperation with Egypt in terms of sales, as well as the potential for manufacturing and assembly of helicopters in Egypt:
“There are about 108 helicopters that are already operating in Egypt, most of which are used by the Egyptian army. Russia intends to work with Egypt to expand its helicopter fleet for the civilian market. This includes helicopters for hospitals, rescue units, as well as helicopters for passenger flights,” Mr. Mikheev said.
In addition, Mr. Mikheev also expressed the company's readiness to deal with the private sector in Egypt, to provide helicopters that could help transport workers and equipment weighing up to 20 tons in rugged mountainous terrain and to remote locations.
“We can work with the Egyptian side through the private equity fund that will be created for Russian investments in Egypt. We are also looking into expanding our service center capabilities, as we all are anticipating opening one soon here in Egypt,” Mr. Mikheev added.
The CEO also mentioned that Russian Helicopters is a holding company that unites some 25 enterprises and 15 factories, and employs approximately 46,000 people involved in the research and design of helicopters for various uses. “There are currently more than 8,000 of our helicopters in operation in over 70 countries,” he said.
Mr. Mikheev stressed that there are ongoing consultations with Egypt and that the company is ready to cooperate in a number of projects that include local assembly operations. He added that the Egyptian government is interested in the Russian helicopters, which are durable and can withstand Egypt’s hot climate.
Globally, Russian Helicopters has an ambitious goal to reach a 20% share of the world-wide helicopter market by 2020. Currently, more than 14% of all helicopters produced worldwide are made by the Russian company. Traditionally, the highest demand for the Russian-made helicopters is in the Middle East, Africa, Southern Pacific, Latin America, in Russia itself and in the Commonwealth of Independent States. Last year, more than 40 helicopters were contracted by various Latin American countries. In 2013, deliveries to China and Europe doubled.
In April, Russian Helicopters reported its year-end earnings for 2014, with revenue increasing 23% and profit up 119%. The company reported revenue of RUB169.8 billion (USD3.3 billion) for 2014, up from RUB138.2 billion in 2013. Profit reached RUB20.7 billion compared to RUB9.5 billion the year before.
Overall, Russian Helicopters delivered 271 helicopters in 2014, similar to the previous year’s figure of 275. Russian Helicopters is also rapidly developing its global network of service centers. In 2017, a service center for Mi-8/17 helicopters will open in Egypt. In 2016 – a center for the Mi-35M in Brazil, the Mi-171Sh in Peru, and in 2018 an aircraft repair plant in India that repairs Mi-17V-5 helicopters will be completed.
In November 2014, the very last batch of Mi 17B-5 helicopters was delivered to Afghanistan, based on a contract with the US Department of Defense. The Russian side has an obligation to service those helicopters under warranty. India has recently approved the purchase of 197 Ka-226T light utility helicopters in May.
Russian Helicopters has obtained the government’s “license to repair”, which means that the company now has the rights for international sales activities in regards to the products of military use, which includes servicing and repairs, providing spare parts, technical documentation and staff training. Helicopters sold to foreign clients will no longer travel to Russia for repairs; now they can be repaired in the same countries where they are being used.
As of today, there are more than 10 authorized service centers for both military and civilian Russian-made aircraft operating around the world. These centers are located in Spain, the Republic of Korea, Kazakhstan, Slovenia, Bulgaria, Czech Republic, and the UAE, among others.
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Russian Helicopters, JSC is a subsidiary of UIC Oboronprom, which in turn is a part of State Corporation Rostec. It is one of the global leaders in helicopter production and the only helicopter design and production powerhouse in Russia. Russian Helicopters is headquartered in Moscow. The company comprises five helicopter production facilities, two design bureaus, a spare parts production and repair facility, as well as an aftersale service branch responsible for maintenance and repair in Russia and all over the world. Its helicopters are popular among Russian ministries and state authorities (Ministry of Defense, Ministry of Internal Affairs, Emergency Control Ministry), operators (Gazpromavia, UTair), major Russian corporations. Over 8,000 helicopters of Soviet/Russian make are operated in 110 countries worldwide. Traditionally the demand is highest in the Middle East, Africa, Asia-Pacific, Latin America, Russia, and CIS countries. Russian Helicopters was established in 2007. In 2013 its IFRS revenues increased 10% to RUB 138.3 billion. Deliveries reached 275 helicopters.
