Motor Sich delays Dubne plant opening until spring

Motor Sich (MSICH) will not open its Dubne plant for engine servicing until April-May 2010, according to Interfax, which cited company sources yesterday. The delay was reportedly due to the financial crisis. Motor Sich previously announced in August that the plant’s opening, originally slated for this summer was off track. Motor Sich estimated its total projected investments into the plant at USD 80 mln over a four-year period. Yegor Samusenko: Motor Sich has made announcements about progress in building the engine servicing plant in Dubne several times. These announcements appear to have coincided with strains in the Russian-Ukrainian cooperation in aviation and when Russia announces plans to create its own production facilities for helicopter engines instead of purchasing them from Motor Sich. Now, Russian-Ukrainian cooperation in the aviation industry is back on track, thus there is less pressure on Motor Sich to launch its new servicing plant in Dubne. We do not believe this news will have any effect on the stock.