Motor Sich to produce 13 helicopters for Ukrainian forces

Ukraine’s Defense Ministry has ordered ten Mi-8MSB helicopters from Motor Sich (MSCIH UK) and the National Guard has ordered three helicopters, the company’s press-service reported on Oct. 15, citing Ukrainian President Petro Poroshenko. Motor Sich is going to supply four helicopters for the Ukrainian army already this year, with the rest of the orders to be delivered in 2015, the Interfax news agency reported on Oct. 16, citing the company’s top official.

According to the same report, Motor Sich is planning to supply smaller Mi-2MSB helicopters for the Ukrainian army in 2H15 after it completes their certification. Mi-8MSB and Mi-2MSB are deeply modernized versions of two most popular models of Soviet helicopters and they mark the first attempt of Motor Sich, the CIS’s biggest aircraft engine producer, to assemble helicopters on its own.

Alexander Paraschiy: This debut state order for Motor Sich’s helicopters will not offer much to Motor Sich’s revenue and bottom line. At the same time, this is the first important step of the Ukrainian government towards supporting the company and promoting its new products. Without orders from its own government, it’s almost impossible for the aerospace producer to promote its helicopters abroad.

While we do not expect that helicopter production will become a core business for Motor Sich in the future, chances have significantly improved that this business will bring sustainable revenue in the mid-term.