Motor Sich To Form Corporation With Design Bureau

According to the Director of Motor Sich (MSICH: BUY), Vyacheslav Boguslaev, on Friday the company signed an agreement with the design bureau Progress, uniting the two companies in what is to be called the Ivchenko Corporation.According to the agreement, the companies will remain separate legal entities, but their production processes will be integrated. Olha Pankiv: The integration of the two companies’ production processes will benefit both by slightly lowering costs, however, the changes will be minor as the two companies have been working in close cooperation since their founding. We do not believe this will interfere in any way with the company’s plan to join a Russian aircraft holding or its plans to hold a possible IPO for a 3-5% stake.