Motor Sich strikes deal to make gas turbines in Russia

Motor Sich (MSICH) signed an agreement with the local government in Saratov region (Russia) to build gas turbine equipment in the region, Interfax reported on Friday. The production facility will reportedly cost RUR 3.7 bln (about USD 122 mln) over six years. The deal also provides for the repair and servicing of Motor Sich-build engines at the Saratov plant. Yegor Samusenko: We see this news as neutral for Motor Sich’s stock as the conclusion of the agreement does not imply that the start of construction on a new plant is imminent or indeed a done deal. Motor Sich already has one plant under construction in Russia, in Dubne, whose launch has been delayed until the end of 2009.