The Russian state corporation Rostec announced that the United Aircraft Corporation (UAC), and the fighter manufacturers Sukhoi and Mikoyan-Gurevich, will be merged into a single aircraft building center in Moscow. As a reminder, UAC comprises the brands Ilyushin, Irkut, Tupolev, and Yakovlev. The optimization is expected to save $1.7 billion.
“Structural transformations, a cost optimization program, transformation of the industrial model, research and development block, digital transformation of UAC are aimed at increasing the utilization of production facilities and increasing labor productivity,” according to a statement by Rostec, quoted by TASS. “The reform will be implemented in stages over several years.”
Additionally to the aircraft assembly facility, a Unified Engineering and Design Center in Moscow should regroup all the aircraft design bureaux. The engineering and design personnel should not be affected by the restructuring.
Created in 2006, the United Aircraft Corporation was taken over by Rostec in 2018 in an effort to consolidate Russia’s aviation assets. Rostec regroups over 700 companies organized in 14 holdings: 11 of them are in the defense sector, three in the civilian one.