Three weapons companies Sukhoi, MiG and UAC merged into one

The UAC press service said: “The relevant records were filed on June 1 at the Federal Register of Legal Persons. The UAC Board of Directors approved the merger in November 2021 and shareholders of the three companies supported it in January 2022.

“The completed restructuring has ended an important phase in UAC’s business transformation, especially the transition from a three- to two-tier governance system within the group. Sukhoi brands and the MiG, powerful and famous all over the world, will still be in production.” Rostec CEO Sergey Chemezov said.

Earlier, Russia Beyond reported that decades of commercial competition between the companies had resulted in the dismissal of Sukhoi CEO Igor Ozar. The position of head of his company was given to MiG CEO, Ilya Tarasenko.

Under the leadership of Ozar, Sukhoi signed and implemented major contracts for the supply of Su-34 bombers and Su-35 multirole fighter aircraft. The company has also completed the project of the fifth generation fighter Su-57 and is preparing for mass production.

Ozar has been the head of Sukhoi since 2011 and by 2017 the company became the most profitable enterprise among Russian aircraft manufacturers.

In 2018, Sukhoi’s revenue reached 114.5 billion rubles (about 1.5 billion USD), generating a net profit of 4.08 billion rubles (about 55 million USD). Meanwhile, MIG’s revenue in 2018 was about 89.5 billion rubles ($1.2 billion) and its net profit was about 3.5 billion rubles ($50 million).

Russia Beyond quoted UAC’s press service as saying: “Consolidation of the main research and production capabilities of the military aircraft industry will allow Russia to more effectively implement existing programs and develop promising projects.”

“Modern Russia does not need as many fighters as it did in the Soviet era. So, one of the main reasons for the merger was the need to reduce the country’s spending on military aviation and turn existing projects into ones that are commercially attractive to the market. foreign”, Mr. Litovkin added.

However, Russian experts assess that there will be no drastic changes to Russia’s military aviation production.

“The new company will focus on perfecting existing projects (such as ‘Hunter’ drones, Su-57 and MiG-35 fighters and PAK DA strategic bombers) and continue research and development. a new interceptor to replace the MiG-31. Today’s goal is to increase sales and offer foreign customers the most attractive options on the military aviation market. They will focus on the Southeast Asian and Latin American aviation markets.”Viktor Murahovsky, Editor-in-Chief of “Homeland Arsenal” magazine.