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Russian Defense Business Directory


CHAPTER 9 - SELECTED DEFENSE CONVERSION SUCCESS STORIES

1. ALLIED-SIGNAL JOINT VENTURES IN RUSSIA

a) Allied-Signal (Bendix King) - Cockpit Avionics

Allied-Signal (Bendix King)'s Air Transport Avionics Division has begun a joint venture with the Scientific Research Institute of Aviation Equipment (NIIAO) of Zhukovsky, Russia. It will be providing avionics to the Russian commercial air transport market. Allied-Signal will outfit the Tu-304 regional airliner (Tupolev) and the Yak-112 and Yak-42M (Yakovlev) with integrated Bendix-King cockpit avionics.

b) ARIA - Integrated Avionics

In August 1992, Allied-Signal, a major U.S. aerospace corporation, created the joint venture ARIA with the Scientific Research Institute of Aviation Equipment (NIIAO) to design, develop, and manufacture the next generation of integrated commercial avionics systems. ARIA signed contracts to supply integrated avionics for the Beriyev Design Bureau Be-200 multipurpose amphibian and also with Yak Aircraft Corporation to provide integrated systems for the Yak-242.

c) RUBIX - Wheels and Brakes

In August 1992, Allied-Signal's Aircraft Landing Systems business unit signed a joint venture with Rubin, Russia's largest supplier of wheels and brakes, to design, develop, and manufacture carbon brake systems for commercial aircraft being built in Russia. The joint venture will supply systems to Ilyushin for the Il-96 and to Tupolev for the Tu-204 and its derivatives.

2. ASTRONAUTICS - KEARFOTT - ELECTROAVTOMATIKA "AKE" ENTERPRISE

In November 1993, Kearfott Guidance & Navigation Corp., a subsidiary of Astronautics Corporation of America started a joint venture in St. Petersburg known as "AKE". Kearfott provides a wide range of equipment for various programs including the Space Shuttle, Voyager, Magellan, B-1, B-2, F-14, F-16, and other major programs.

Elektroavtomatika, a Russian aerospace design bureau, designs avionics and flight management systems for Russian commercial and military aircraft (MiG-31, MiG-29, MiG-21, Su-27, Il-96, Tu-334, and Tu-204). It also builds display systems for the Buran Space Shuttle and power units used in satellites.

AKE has won several contracts to supply avionics for the Tu-334 (a 100-passenger commercial airliner built by Tupolev) and for the Tu-204 (similar to the Boeing 757 and Airbus 320 aircraft). Another project will provide throttle angle sensors to provide inputs to control the engines powering the Tu-204 airliner. A contract to supply an airport air traffic control holographic transparent window display system for Moscow airport is scheduled for delivery in 1994.

3. INTERNATIONAL TECHNOLOGY GROUP (ITG) - FIRST OF MAY MACHINE BUILDING FACTORY (PERVOMAYSKIY MASHZAVOD - PMZ), KIROV

In 1993, ITG, a California-based agricultural equipment manufacturer, established business relations with PMZ located in Kirov. PMZ, which formerly produced heavy equipment for the Soviet military, now produces railroad cranes and operates as a private joint stock company employing 3,000 employees.

PMZ, with the help of ITG, is employing its technology and know-how to manufacture components for agricultural machines. PMZ recently shipped to ITG's main plant in the U.S. the first container of Russian-built parts for use in agricultural equipment. ITG has assigned their engineers and managers to work with PMZ plant in Kirov. Over the next four years, ITG hopes to increase Russian production for the export market while concurrently developing a Russian domestic market for its products. ITG has also worked out an arrangement with the International Executive Service Corps to place a volunteer executive familiar with defense conversion and TQM at the Kirov plant to help instill market expertise.

4. ANALYTIC SERVICES, INC. (ANSER)

ANSER has signed a one-year agreement with TsAGI to receive background and contract information on wind tunnels, flight simulators, engine testing facilities, components and materials. The acquired information includes facility locations, operational status and user costs. ANSER, which has set up a Moscow office, has similar agreements with Russian Space Agency, NPO Energiya, and the Russia Academy of Sciences.

5. ASTRONAUTICS CORPORATION OF AMERICA

This manufacturer of navigation and flight instruments, displays, and communications equipment is involved in a joint venture with a Russian electronics company, Elektroavtomatika. The joint company is called AKE, Astronautics Kearfott Elektroavtomatika.

6. ATASCO

This U.S. sales and leasing company has begun a joint venture with Aeroflot St. Petersburg to form a startup Russian airline, ASA.

7. ROCKWELL IN RUSSIA

Rockwell, a diversified high technology company, opened a Science Center in Moscow to conduct research in association with a number of Russian research institutes and production enterprises.

Rockwell's Collins Commercial Avionics Division is working jointly with the State Scientific Research Institute of Aviation Systems [GosNIIAS], employing more than 100 Russian software engineers, to develop the avionics integration package for the new Ilyushin Il-96M commercial jet-liner for which Collins will supply the entire avionics configuration.

Rockwell Collins has provided and integrated avionics for the Il-96M wide-body jet with Pratt & Whitney engines.

Collins Commercial Avionics was awarded a contract by Bravia to supply communications and navigation equipment for the Tu-204 airliner.

Rockwell's Communications Systems Division and GosNIIAS are conducting some engineering feasibility research and studying the market in Russia for air traffic management systems that would utilize both the U.S. Global Positioning Satellite System and GLONASS, the comparable Russian system. They also operate a high-technology design center in Moscow, staffed by more than 20 Russian engineers, involved in algorithm and signal processing design and related software and hardware development.

Rockwell's Space Systems-Division, in a joint development with NPO Energiya, is developing the docking hardware for the ten docking missions planned for the Russian Mir Space Station and the U.S. Space Shuttle.

Rockwell Automotive Division is working with KaMAZ (a heavy truck producer) and with AvtoVaz (a automobile producer in Togliatti) to provide components for the vehicles produced by these companies. The Allen-Bradley Division is participating in the modernization and conversion of Russian industry by supplying automation and control equipment and systems for a wide range of industries.

8. LITTON INDUSTRIES, INC.

Litton Industries is providing inertial navigation systems to Aeroflot Airlines and has been selected to provide equipment for the new Ilyushin Il-96-M and the Tupolev Bravia Tu-204-222 transport aircraft. Litton is also negotiating with Russian authorities to provide air traffic control communications equipment for their airports.

9. LOCKHEED

a) LOCKHEED - KHRUNICHEV - ENERGIYA INC. (LKEI)

The joint venture between Lockheed, a U.S. corporation, and two Russian aerospace companies, Khrunichev Enterprise and Energiya, seeks to provide a wide range of launch services.

b) LOCKHEED MISSILES & SPACE CO.

Lockheed has established an agreement with the Khrunichev Plant to help market the Proton launch vehicle (which Khrunichev manufactures) to the West. NPO Energiya has become a partner in this venture which is named Lockheed-Khrunichev-Energiya Int'l. Lockheed has also signed an agreement with NPO Energiya to cooperate on future space programs.

10. UNITED TECHNOLOGIES CORPORATION

a) PRATT & WHITNEY/ILYUSHIN IL-96 PROGRAM

Pratt & Whitney and other U.S. suppliers have provided the Russian firm Ilyushin with equipment and technical support to manufacture a prototype Il-96M long-range, wide-body aircraft, which is now being flight tested. Full scale production of this aircraft and a cargo version--both of which will receive Russian and U.S. FAA certification--is scheduled to commence in early 1996. The value of the Pratt & Whitney engines and other U.S. content items used in each aircraft will range between $40-$45 million. Ilyushin currently holds Letters of Intent for 30 aircraft. Current market estimates through the year 2005 represent potential export sales for U.S. suppliers of $10 billion.

b) PRATT & WHITNEY/KLIMOV CORP./ENERGOMASH

Pratt & Whitney is providing PW2337 engines for the Il-96M four-engine wide-body jet. It has established an agreement with the Russian rocket engine manufacturer NPO Energomash to market their RD-170, RD-701 and RD-180 engines. Pratt and Whitney Canada has formed a joint venture with Klimov Corp. to develop and manufacture small gas turbine engines for civil applications in Russia and the NIS.

c) PRATT & WHITNEY/NPO ENERGOMASH ROCKET ENGINE PROGRAM

Pratt & Whitney has an agreement with the rocket design company, NPO Energomash, granting Pratt & Whitney access to a vast array of space propulsion products and technologies developed by the Russian firm. A contract to test tri-propellant components at NASA Marshall Space Flight Test Center has been signed.

d) PRATT & WHITNEY JOINT VENTURES IN RUSSIA

Pratt & Whitney has invested $150 million to create joint ventures with two Russian companies--Perm Motors and Aviadvigatel--to make aircraft engines. One of the ventures would design and build commercial aircraft engines. The other venture will develop land-based turbines for gas-pumping stations.

e) HAMILTON STANDARD/NAUKA SCIENCE & PRODUCTION ENTERPRISE

Hamilton Standard has signed a long term collaboration agreement with the Nauka Scientific and Production Enterprise, a large manufacturer of aircraft environmental control systems in Russia, to create a joint stock company in Moscow. This company will design and build these systems for the Tupolev Tu-334 and Tu-204 aircraft.

f) HAMILTON STANDARD/PERM UNIT DESIGN BUREAU

Hamilton Standard and the Perm Unit Design Bureau have agreed to jointly design and produce aircraft engine control systems for the new PS-90P engine being developed for the Ilyushin Il-96 and the Tupolev Tu-204.

g) HAMILTON STANDARD SPACE ACTIVITIES

Hamilton Standard has business agreements with three Russian enterprises: (1) Zvezda - for space suits, portable life supports, ejection seats and pressure suits; (2) Nauka - aircraft and spacecraft environmental and thermal control equipment; and (3) NIIKhimMash - spacecraft regenerable life support systems. Hamilton Standard is evaluating Russian space suits and environmental control systems/life support hardware used on the Mir station for NASA. It is also working on developing a common spacesuit for use during spacewalks on upcoming Shuttle to Mir missions.

11. WESTINGHOUSE ELECTRIC CORPORATION

On March 30, 1994, Westinghouse Electric Corporation signed three business agreements in atomic energy, power generation, and air traffic management. These agreements entail capitalizing on joint Russian/Westinghouse technology investments to enhance key sectors of Russian infrastructure.

The agreement with MINATOM, the Russian Ministry for Atomic Energy, will result in enhanced safety of operating nuclear power plants and incorporating safety technology in the nuclear plants under construction. The business agreement will lead to four partnerships in plant engineering, instrumentation and control, nuclear fuel, and low-level waste management. MINATOM operates 23 civilian nuclear power plants in Russia.

The agreement with the Unified Electric Power System of Russia (YeES), the giant power generation company with 210 megawatts of installed capacity, will concentrate on power plant efficiency and reducing air emissions. The joint ventures will modernize existing turbine generation equipment, repower older stations with state-of-the-art equipment, and develop new projects. YeES operates 51 power plants and owns stock in Russia's 70 regional utility companies.

12. NORDEN - St. PETERSBURG

On November 19, 1993, Norden Systems (now a part of Westinghouse Corp.) and the All-Russian Scientific Research Institute for Radio Equipment (VNIIRA), a Russian manufacturer of air traffic controls and navigational equipment, decided to combine their extensive experience by forming a joint venture known as "Norden-St. Petersburg."

Norden-St. Petersburg initially intends to use Western-built equipment to rapidly upgrade airports in Russia, the Newly Independent States (NIS), and Eastern Europe. This joint venture eventually intends to qualify Russian sources for air traffic control equipment. Future plans include the development and upgrading of existing VNIIRA equipment and manufacture of Western equipment under license. The market for air traffic control equipment in the former Soviet Union is estimated to be $10.5 billion. This joint venture secured its first contract in the last quarter of 1993.

13. THE BOEING COMPANY

Russia's Interstate Aviation Committee (MAK) has certified the Boeing 737 family for ownership and operation by MS airlines. An enormous new market is opening up for Western aircraft, with potential sales of 1,300 jet transports over the next 10 to 12 years. The independent Russian airline, Transaero, is currently leasing two Boeing 737s and is expected to take leasing delivery of two new B-757s in late March 1994. Aeroflot-Russian International Airlines is also leasing two B-767s.

Boeing has opened the Boeing Technical Research Center in Moscow. This will be a center for research projects jointly developed with Russian universities and technical institutes to take advantage of Russian scientific/technological expertise. Potential projects include research and development for computational fluid dynamics and research into stronger metals and alloys.

BOEING DEFENSE & SPACE GROUP has agreed to team up with the Russian company NIIKhimMash in order to jointly develop life-support systems, possibly for NASA's international space station.

15. BROOKE GROUP

This firm is involved in a joint venture with the Mil Design Bureau to market and produce Mil-Brooke helicopters called Mil-Brooke Helicopters, Ltd. Mil-Brooke has selected Danubian Aircraft Company of Hungary to be its official service center for Europe. The joint venture is currently looking for other possible service centers in North America, Latin American and Asia.

16. CFM INT'L (GENERAL ELECTRIC)

This joint venture between General Electric Company and the French company SNECMA has been negotiating a deal to re-engine 20 Il-86s for Ilyushin Design Bureau.

17. DYNAIR TECHNOLOGIES INT'L

DYNAIR was granted $250,000 by the city of St. Petersburg and the U.S. Trade and Development Agency for a feasibility study for an air cargo center at Pulkovo Airport in St. Petersburg. It has recently been awarded the contract to develop the air cargo center and free trade zone around the airport by the St. Petersburg municipal government.

18. ERNST & YOUNG

The U.S. accounting and aviation consulting firm has won a tender offered by the U.S. Trade and Development Agency (TDA) to lead a group of U.S. companies in the development of a business plan for the construction of a major international airport in Novosibirsk, which will become a major transportation hub between Europe, the Far East and S.E. Asia. The project is being financed by a $200,000 grant provided by U.S. TDA. The project at Novosibirsk's Tolmachevo Airport will cost an estimated $1.1 billion and is targeted for completion in 2025. Other firms included in the group are Boeing Aerosystems Int'l., The Austin Co., Dean Witter, Gensler & Associates and P&D Technologies.

19. FAIRCHILD AIRCRAFT

Fairchild has entered a joint venture NORMVEST with a Russian fastener manufacturer, Normal Production Association which combines both companies' capabilities to export quality fasteners to the worldwide aerospace market.

Fairchild has been funded $400,000 by the U.S. Trade & Development Agency for a study on the development of a new small (two to five seat) aircraft by Ilyushin.

20. GULFSTREAM AEROSPACE CORP.

Gulfstream is working with Saturn/Lyulka to develop business aircraft. It is also in a partnership with Sukhoi Design Bureau to develop Su-21 and Su-51 business aircraft with Rolls-Royce engines.

21. HONEYWELL, INC.

Honeywell has provided inertial reference systems and other avionics for the Tu-204 airliner.

22. LEHMAN BROTHERS

This firm has been selected by Russia's Ministry of Transport to head a consortium that will prepare a master plan for the modernization and development of Moscow civil airports. Along with Lehman Brothers are KPMG Peat Marwick, Texas construction firm, Brown Root, and law firm, McGuire, Woods, Battle, Booth. The study will cover the creation of a net air transportation hub in Moscow and the costs of modernizing and expanding the airports.

23. MCDONNELL DOUGLAS AEROSPACE

McDonnell Douglas Aerospace has established a joint research pact with several Russian companies for the development of moon rover vehicles and hopes to benefit from Russian space technology in this project.

McDonnell Douglas is investigating cooperative ties with the Russian Institute of Space Research (IKI), the Iavochkin Association and the Mobile Vehicle Engineering Institute.

24. MENASCO AEROSYSTEMS

Menasco has been negotiating with Gidromash to jointly manufacture aircraft parts.

25. MOTOROLA'S IRIDIUM CORP.

Motorola has cooperated with Khrunichev and will use Russian proton launchers to help launch a commercial satellite from a Russian site.

26. NASA

NASA has signed a $1 million contract with NPO Energiya for Soyuz Docking System Evaluation. In December 1993, it signed an MOU on Cooperation in Fundamental Aeronautical Sciences with the Russian State Committee for Defense Branches of Industry (GOSKOMBORONPROM). Eight project areas have been identified including high temperature composites, environmental concerns in aviation, advanced aerospace materials, hypersonic technologies and experimental test facilities.

27. RUSSIAN AMERICAN FAR EASTERN TRANSPORT COMPANY (RAFETC)

The recently formed U.S.-Russian joint venture has begun work on a project to install ATC systems and construct a terminal at the international airport in the Siberian city of Khabarovsk, a key link between the U.S. and Asia. The Ralph M. Parson Co. has signed an agreement with the Lhabarovsk design institute, Dalaeroproekt, to perform a joint feasibility study for the reconstruction of the airport and the construction of a new freight airport at nearby Vanino. The consortium, headed by Ralph M. Parsons Co., includes these participating U.S. companies: AMR Services Corp., Harris Corp. and Hughes Airport Systems.

28. RUSSIAN-AMERICAN SCIENCE, INC.

This company is the official commercial representative in the U.S. of the Russian Academy of Sciences and offers access to all of the Academy's scientific institutes, research materials and databases. It markets Russian technologies, including the Beriev Taganrog "wing-in-ground-effect" (WIG) amphibious aircraft, in the West.

29. SPACE COMMERCE CORP.

This firm markets goods and services for several Russian space companies and organizations, including Glavcosmos, Zvezda Research, Development & Production Enterprise, Lavachkin Association and Mashinostroenia Scientific & Production Enterprise.

30. TELEDYNE CONTINENTAL MOTORS

Teledyne is currently working on engines for Il-103 wide transport and Yak-112 mid-range aircraft.

31. WESTINGHOUSE ELECTRIC CO.

The lead U.S. company in the Raduga Consortium ("raduga" means "rainbow"), which was formed in 1993 to manage and implement a 15-year project to modernize the air traffic management system of the former Soviet republics. Westinghouse estimates the value of the work to be done for ATC modernization in the NIS range from about $10 to $12 billion. The consortium also consists of the French company Thomson-CSF, the joint venture company Buran (which includes Italy's Alenia), and a number of Russian companies.



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