Ukrainian Motor Sich to get controlling interest in Orsha Aircraft Overhaul Plant

VITEBSK, 9 January (BelTA) – Shares of the Belarusian open joint-stock company Orsha Aircraft Overhaul Plant have been sold to strategic investors, namely the Belarusian company Innovations and Investment Systems and the Ukrainian company Motor Sich. President of Belarus Alexander Lukashenko signed the relevant ordinance on equity carve-out on 30 December 2011, BelTA learned from Vladimir Troitsky, Director of OAO Orsha Aircraft Overhaul Plant. The government owns 99.2% of the shares in Orsha Aircraft Overhaul Plant, with the company employees owning 0.8%. The Belarusian company ZAO Innovations and Investment Systems will get 1,488,171 shares while the Ukrainian company Motor Sich will get 2,232,256 shares (about 60%). The investors will pour at least $12 million into modernization of the enterprise in 2012-2016, with over 300 jobs to be created. Within two years after signing the investment contract the new owners will have to overhaul two halls of residence of the company and will have to channel about Br20 billion into social and economic development of the town of Bolbasovo within five years. The Belarusian company Innovations and Investment Systems will have to present a comprehensive concept for creating a logistics center using the Orsha airfield to the Council of Ministers by April 2012. The Council of Ministers has been authorized to sign the sale agreement and the investment agreement between the Belarusian Transport and Communications Ministry, ZAO Innovations and Investment Systems and the Ukrainian company Motor Sich. Vladimir Troitsky said that the arrival of Motor Sich, a major manufacturer of aircraft engines, will allow Orsha Aircraft Overhaul Plant to improve its helicopter repair capacity and to stabilize its financial and economic status. Orsha Aircraft Overhaul Plant was founded in 1941. The company was incorporated as an open joint-stock company in late 2009. In 2011 the company’s output growth rate was 113% in comparable prices. The growth rate of proceeds in comparable prices was 130%. The company managed to achieve breakeven operation. Motor Sich is one of the world’s largest manufacturers of engines for aircraft and industrial gas turbines. The company delivers its products to 106 countries across the globe. Russia accounts for about 30% of its export. The company satisfies over 80% of Russia’s demand for helicopter engines.

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