U.S. helicopter manufacturer Bell is teaming up with Russia's Ural Works of Civil Aviation (UWCA) to cut costs by assembling one of the U.S. firm's production lines' locally, a company statement said Tuesday.
Foreign helicopter firms have struggled to implement localized production deals with Russian manufacturers. According to experts cited by newspaper Kommersant on Monday, every potential project to date has fallen apart during negotiations.
"This is a key milestone for Bell Helicopter that we expect will lead to further opportunities within the Russian market," a Bell press release quoted Patrick Moulay, Bell's vice president of global sales and marketing, as saying.
Under the deal, UWCA agreed to purchase the components for several of Bell's new 407GXP helicopters. The helicopters will be delivered by the end of the year to UWCA's manufacturing center in Yekaterinburg for final assembly.
UWCA head Vadim Badekha said his company could invest up to 500-600 million rubles ($10-12 million) in the Bell production line, and that localized production of the 407GXP could shave 17 percent off the vehicle's $5 million price tag, Kommersant reported Monday.
Though Russia has a strong helicopter industry, it is geared heavily toward medium and large helicopters designed for military use. Western firms such as Bell and France's Airbus dominate the light civilian helicopter market in Russia.
UWCA is part of the state corporation Oboronprom, which is in turn a holding of state-owned defense and technology giant Rostec, which was sanctioned by the United States last year over Moscow's hand in the Ukraine crisis.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
