Irkutsk Aviation Industrial Association
Aviation Plant No.39 im. V.R. Menzhinsky Irkutsk aircraft production association (OJSC "IAPO") IAPO (Irkutsk Aviation Enterprise) Irkutskoye aviatsionnoye PO Irkutsk Aircraft Building Association Novatorov street, 3 664020 Irkutsk, Russia Tel: (3952) 42-1450 Fax: (3952) 45-3089 Teletype: 231121 GROM
The Irkutsk Aviation Production Association is one of the oldest defense enterprises of the Transbaykal region. It was set up in 1932 as Aviation Plant No.39 im. V.R. Menzhinsky by the the Main Department of Aviation Industry of the People's Commissar of the Heavy Industry of the USSR. Vyacheslav Rudol'fovich Menzhinskij (1874-1934) was head of OGPU (secret police) from 1926 to 1934. At the third major show trial in March 1938, it was alleged that NKVD chief Genrikh G. Yagoda had ordered the three doctors to murder the former secret police chief V.R. Menzhinsky, the author Maxim Gorky, and a member of the Politburo, V.V. Kuibyshev.
, builds the Su-27 Flanker and Su-30 and their modifications. , as of the late 1990s the company employed 15,000 people. Most aircraft manufactured at Irkutsk Aviation Production Association were brand new aircraft types, such as Er-2, IL-14, TU-14, AN-12, MIG-27, SU-27, SU-30.
IRKUT produces Sukhoi fighters and civil aircraft. The Be-200 amphibious aircraft are assembled at the workshops of the Irkut research-and-production corporation. Irkut remained de facto a one-product company, namely the Su-30MK fighter and its modifications. This plane makes up 80% of orders, and the company is almost fully dependent on the demand for the aircraft on the foreign market.
IRKUT's net income calculated in accordance with the Russian accounting standards was 344m rubles ($11.1m) in 2002. Sales proceeds were 17.629bn rubles ($568.7m), an increase by almost 150% from 2001. It ranked number one in the Expert 200 rating for revenue growth in 2002. Irkut managed to attain this impressive growth due to a $2-billion contract with India for 164 Su-30MKI fighters and licensed production until 2017. However, in 2003 according to tentative data, Irkut's sales according to US GAAP fell to $493 million.
As of 2002 IAPO`s main stockholders were the FTK Company /19.9%/, the Forpost aviation design bureau /19.86%/, the Sukhoi aircraft building corporation /14.7%/, the Aerokom company /10.18%/ and the Brunswick U.B.S. Warburg Nominees /nominal holder, 25.76%/. By 2007 the United Aircraft Corporation (UAC) controled 50.09% of Irkut stocks, of which 38.2% consisted of private shares in the UAC authorized capital, and 11.89% was owned by the Sukhoi Company.
In April 2004 MDM Bank and Credit Suisse First Boston summed up the public offering of 23.3% of Irkut's stock. Irkut's management owns half the stock issued, while the rest is an additional issue. Investors bought everything the company had to offer and paid a total of $127 million. As a result, Irkut's capitalization now amounts to $545 million. The Public offering of Irkut stock on the Russian market is only the third floatation in the post-1998 crisis period, but the largest in terms of proceeds gained. Before Irkut, RosBusinessConsulting and 36.6 Drugstores ventured to carry out IPOs. However, they were only able to raise $13 million and $14.4 million respectively.
The European Aeronautic Defense and Space Company (EADS) planned in late 2007 to convert its shares in the Irkut aircraft company into United Aircraft Corporation (UAC) shares. In late 2007 Russian authorities decided to transfer 5% of EADS shares owned by VTB Bank (RTS: VTBR) to the UAC, which was established by a government commission for the integration of Russian aviation companies in November 2006.
In mid-2001 Burma's government signed a contract with the Russian Aircraft-building Corporation (RSK) MiG covering its acquisition of 10 MiG-29 fighter aircraft, comprising eight MiG-29Bs and two MiG-29UB trainers. To be drawn from a stock of about 70 aircraft assembled at RSK MIG's plants in the early 1990s and now stored at its Lukhovitsy machine- building plant
On 18 September 2002 the Irkutsk Aircraft-Building Corporation (IAPO) announced its plans to change its name to "Irkut Research and Production Corporation". Company President Alexei Fyodorov said that the decision to change the company name will be made at the next stockholders` meeting set for the end of 2002. Irkut is IAPO`s legal successor and preserved the status of a legal entity based in Irkutsk. Corporation Irkut was established on the base of the Irkutsk aviation association.
The Corporation Irkut took a very active part in the MAKS-2003 air show in Zhukovsky. The corporation represented both the military and the civil aviation at the show, including the Be-200 fire-preventing amphibian aircraft.
In September 2003 it was announced that the new corporation would merge with the Yakovlev design bureau. A joint program with Yakovlev and the Italian firm Aermacchi started in 1993 and lasted six years, during which the Yak/AEM-130 (YA-130) demonstrator was built and flown. Of the 300 YA-130 flights, more than 200 were carried out in Italy. At the end of 1999 the M346 and YA-130 became separate programs. The YA-130 became the basis for Aermacchi's M346 as well as the Yakovlev Yak-130. As of 2004 the Yak-130 trainer aircraft was the new product of Corporation Irkut.
Irkut is also developing a small helicopter. The first aircraft of the new project was ready by the end of 2003. There have been 20 agreements concluded to deliver the new $150,000 worth helicopter.
Irkutsk Aviation Production Association is accomplishing Be-200 multipurpose amphibious aircraft manufacture. This aircraft, designed by the Beriyev Design Bureau in Taganrog, is configured for firefighting and crop dusting but could be converted to either a passenger or transport aircraft. It is a reduced-scale derivative of the military A-40 Albatross seaplane. Irkutsk is one of the partners in a CIS-Swiss joint venture known as Beta Air which is to manufacture and market the Be-200. Under a new venture with Beriev design bureau, IAPO started manufacturing two-engine twin-turboprop Be-200. The company claims that the production capacity is 120 aircraft a year. The company was awarded $1.3 million TACIS technical assistance grant for the research on Be-200 and Be-103.
The first agreements for the production of various A320 components were signed in December 2004, and were worth $200 million over ten years. Airbus Freighter Conversion (AFC) is a joint venture between Russian companies - United Aircraft Corporation (UAC) and Irkut Corp, each with 25 per cent stake- and EADS Elbe Flugzeugwerke GmbH (EFW) 32 per cent and Airbus 18 per cent.
In March 2007 MiG agreed to hand over to the Irkut Research and Production Corporation its production premises at Lukhovitsy, Moscow Region, which Irkut planned to use to convert European Airbus 320 airplanes into cargo aircraft. "The Lukhovitsy plant could be either leased to Irkut following a decision by the United Aircraft Corporation (UAC) or physically transferred from their statement to [our] assets," said Oleg Demchenko, Irkut president. "But this will only be possible after MiG has been incorporated and joins the UAC [which must take place early in 2008]." By mid-2007 the Irkut aircraft manufacturing company had begun the shipment of Airbus À320 components. Some of them had been successfully tested and integrated into A320 batch production in the city of Meaulte, France. Estimated order portfolio may reach $1.9 billion by 2015. As of December 2007, the components will be made of Russian parts.
In 2008, the Irkut research and production corporation planned to relocate production of amphibian airplanes Be-200 from Irkutsk to Taganrog. Press secretary of the corporation, Elena Fedorova, reported that this decision is made because Irkut is busy with the fulfillment of export contracts for the production of the Su-30 multipurpose airplane, as well as with upcoming assembling of the Yak-130 combat training airplanes. According to preliminary estimates, relocation of production of the Be-200 from the Irkutsk aircraft building plant to Taganrog aviation (Tavia) will cost Irkut approximately 400 million rubles.
Since becoming a joint-stock firm it has aggressively sought to expand its civil and consumer product lines while maintaining some aircraft production. Civil products include hang-gliders; ferrous and non-ferrous metals casting and founding; sanitary engineering equipment; cut wood products; equipment for public catering enterprises; numerous types of consumer goods including sports, hunting and camping equipment and dishwashers.
The Irkutsk Oblast is located in south-eastern Siberia in the basins of Angara, Lena and Nizhnaya Tunguska rivers, and occupies an area of 774,000square kilometers (4.6 percent of Russia's territory). The Irkutsk Oblast borders with the Buryat and Tuva Republics in the south and south-west, the Krasnoyarsk Krai in the west, the Sakha (Yakut) Republic in the northeast, and the Chita Oblast in the east. A unique and world-famous lake, Lake Baikal, is located in the southeast of the region. Mechanical engineering and metal working occupies 7 percent of all industrial manufacture in the region. In 1998, the production volume decreased by 9.8 percent, and totalled US$112.6 million. The largest enterprises for mechanical engineering and metal working are: Irkutsk Aircraft Production Plant JSC (produces aircrafts and consumer goods); IrkutskCable JSC (produces cables and wires); UsolMash JSC (produces cranes); VostSibElement JSC (produces batteries, galvanic elements); and IrkutskTyazhMash JSC (produces metallurgical and mining equipment).
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