Motor Sich to deliver first Ai-222-25F engines to China in May

Motor Sich (MSICH UK) plans to deliver its first batch of AI-222-25F engines for Chinese L-15 trainers in May, Interfax reported last Saturday without specifying details of the contract. The second batch of engines will be delivered in summer. Motor Sich is continuing talks with China on further supplies of AI-222-25F engines and other forms of cooperation in manufacturing.

Roman Dmytrenko: The first batch of AI-222-25F engines was supposed to have been supplied back in 2011 but was delayed, likely due to complicated negotiations with the Chinese. We estimate Motor Sich will supply 50 AI-222-25F engines to China this year, which would generate USD 125 mln in revenue for the company. At the same time, extension of the contract and supplies of an additional 200 engines in 2013-2015, as previously expected, does not look like a done deal as it requires production cooperation and increases the risk of China copying the engine technology.