Motor Sich to begin making engines for Ansat copter in 2010

Motor Sich (MSICH) CEO Vyacheslav Boguslayev said in an interview with Kommersant this morning that his company plans to begin making MC-500V engines for the Ansat light helicopter, designed by Russia’s Oboronprom. Motor Sich has already begun preparatory work on serial production of the engines. The Ansat helicopter had been designed to utilize Pratt & Whitney PW-207 engines. Yegor Samusenko: The Ansat order would add ~USD 45 mln (~10% sales) to Motor Sich’s revenue beginning in 2011. The substitution of Pratt & Whitney engines for Motor Sich models in Russia could lead to the same effect on other markets. We view Asia as the most probable new market for Motor Sich helicopter engines since the company already has aggressively marketing and several aircraft engine contracts there. From the customer side, Motor Sich engines are cheaper than those from western-producers. We expect a positive reaction by the market to this news.