Lukashenko orders Orsha plant stake sale to Motor Sich
11 January 2012
The Belarusian government plans to sell a 59.5% stake in the Orsha Aircraft Overhaul Plant to Ukraine’s Motor Sich (MSICH UK) for a cash consideration of USD 1.1 mln, Interfax reported yesterday, citing a presidential directive. In total, Belarus plans to sell 99.2% of the Orsha plant, with another 39.6% going to Belarus’ Investment and Innovation Systems for an undisclosed amount. The buyers pledged to invest at least USD 12 mln to modernize the plant’s production facilities, create over 300 jobs in the next five years, and spend USD 2.5 mln on the social and economic development of Orsha region. The Orsha plant is licensed to overhaul Mi-8/17 and Mi-24 helicopters. A Belarusian Transport Ministry official announced the potential sale of a stake in the Orsha plant to Motor Sich back in November 2011.
Roman Dmytrenko: Though we estimate potential Belarusian demand for helicopter modernization at only 100 units, the Orsha’s plant proximity to Russia make it a potential springboard to the Russian market. We estimate the Orsha plant could modernize 10-15 helicopters this year, which would add up to USD 15 mln to Motor Sich’s sales for 2012 (2% of total revenue).
