Motor Sich to modernize five Mi-8 helicopters in 1H12

Motor Sich (MSICH UK) plans to deliver its first five modernized Mi-8 helicopters to an undisclosed foreign customer by the end of June, a company’s representative said yesterday (via Interfax). He also said an additional 13 units would be delivered by the end of 2012. All modernized helicopters are equipped with Motor Sich’s new TV3-117SB MIV engines, while the modernization itself will be carried out at the Sumy Aviakon Helicopter Overhaul Plant. Motor Sich has already invested USD 6.25 mln into the modernization project, while overall investments are estimated at USD 10 mln.

Roman Dmytrenko: The memorandum of cooperation between Aviakon and Motor Sich, signed back in October 2011, with an initial plan to modernize 18 Mi-8 helicopters in 2012 and another 40 units per year after the plant reaches full capacity in 2014. We estimate the announced production targets could secure for Motor Sich USD 23 mln in revenues from engine sales in 2012 (4.5% of the company’s order book for the year) and USD 75 mln per year when Aviakon reaches full production capacity.