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Arsenyev Aviation Company "Progress"

Arsenyevskoye Aviatsionnoye Proizvodstvennoye 
Predpriyatie Imeni N I Sazykina 
Arsenyev Aviation Production Enterprise 
'Progress' named for N I Sazykin 

AAK Progress im. N.I. Sazykina OAO 
AAK Progress OAO
AAC Progress JSC
Arsen'yevskaya aviatsionnaya kompaniya Progress im. N.I. Sazykina OAO
Arseniev Aircraft Company Progress in honor of N.I. Sazykin JSC 
Arsenyev Aviation Company (AAC) 
Arsenyev Aviation Company "Progress"
OAO Arsenev Aviation Co
Progress Aircraft Manufacturer (PAM)
Progress, OAO Arsenevskaya aviaczionnaya 
kompaniya im.N.I.Sazykina

1 ul.Kalininskaya
Arsenev, Primorski Krai 
Telephone: 0007 - (742) 361-24945  
Area of production plant - 290 000m2 
Personnel - 4000 

Established in 1936 as an aircraft repair plant and originally designated GAZ 116, under the long tenure of Director Nikolay Sazykin, the plant became an important component of the Soviet aviation industry. It built UT-2 trainer and began manufacture of missiles in 1958. Arsenyev plant previously built the Mil Mi-24/25/35 series of combat helicopters, in parallel with Rostvertol, and was also manufacturer of the Yak-55 aerobatic lightplane; a modified version of the last-mentioned, the Technoavia SP-55, was nominally returned to production in 1999. Arsenyev is responsible for the Kamov Ka-50, Ka-52 and Mil Mi-34 helicopters, the repair of the Mi-24 helicopter, as well as Moskit missiles. Overhaul facilities for Mi-24 are available. It was reportedly assigned the new Kamov Ka-60, but that program was finally reallocated to RSK 'MiG'. Russian government shareholding is 51 percent.

N. I. Sazykin Arsenev Aviation Company Progress (Arsenev, Primorskiy Krai, in Russia's Far East) cooperates with such world famous design bureaus as Yakoviev, Antonov, Mil, Kamov, Tupolev and "Raduga". The plant is famous for its combat helicopters Ka-50 "Black Shark" and Ka-52 "Alligator", which are made for the Russian Ministry of Defence by DB Kamov.

In the field of light sport aircraft, the Progress Company produced Antonov planes and sport planes Yak-18, Yak-55 and Yak-55M. "Progress" re-established manufacturing of Yak-54 two seat sport and acrobatic aircraft. It can be used in acrobatic flight training and in competition. "Progess" also produces light civil multi-purpose helicopter MI-34 focused on arcobatics, transport, police patrolling, leisure and sports. In the nearest future "Progress" starts manufacturing of heavy transport helicopter Ka-62.

The An-14 Pchelka" (The Little Bee) was designed to fulfill similar function as An-2 biplane. Production started at 'Progress' works (Arsenev, Eastern Siberia) and in Summer 1965 the An-14 was demonstrated at Vnukovo airshow. Two years later An-14 appeared in military colors at Domodedovo airshow.

Primorye's defense industry consists of 16 producers working in the areas of ship building and repair, mechanical engineering and aircraft construction. The defense contractors account for some 13% of annual production in the krai. Ship repair's share of the total is approximately 33%. The number of defense orders handled by Primorye contractors has been declining steadily since 1989. Whereas in 1988, military orders accounted for 80% of the sector's output, their share was just 56% in 1993. Some of the lost volume has been recovered by a increased number of non-military orders. As part of its conversion to peacetime production. Progress Aviation Company (Arsenev) has begun producing a medium-size passenger and cargo aircraft, the AN-74.

In late October 1995 it was reported that the Russian government withdrew intentions to seek a buyer for a 50% plus one share interest in state-owned Progress Aircraft Manufacturer (PAM). In October 1995, the Russian government disclosed that it was seeking a buyer for a 50% plus one share interest in state-owned PAM.

The management of the Progress aviation plant in Arsenyev recommended in late 1995 that the plant sell new Kamov Ka-50 and Ka-52 attack helicopters overseas instead of to the Russian armed forces, in order to receive the funding necessary to begin series production. Already in a long-standing debt crisis, Progress was on the verge of shutting down altogether after local heat and power enterprises threatened to cutoff services until their arrears of about 20 billion rubles were paid. Progress itself was owed that amount by the Ministry of Defence for orders filled in 1994,and the ministry indicated that it will not pay for this year's orders until 1996. Half of Progress's 8,000 employees were on enforced leave.

The main projects at the plant, which formerly manufactured Mil Mi-24 helicopters, are currently the Ka-50 and the Moskit anti-shipping missile. At current levels of financing, however, the plant was only capable of producing one Ka-50 a year. Mismanagement at the plant has also contributed to its crisis. Former General Director Viktor Manoilenko, fired in 1995, spent several billion rubles on an abortive attempt to manufacture the Antonov An-74 at Progress. Sixty per cent of the funding was allocated to paying wages, and the attempt pushed the plant to the edge of bankruptcy. An-74 production was switched to the Omsk aircraftfactory after it became clear that conversion at Progress was impractical. Progress's new general director, Yury Bodnya, hoped to profit from another conversion venture, manufacturing the new Mil Mi-34 business-class helicopter.

In 1998 the Progress aircraft production factory at Arsenyev began the refurbish and upgrade of Mil Mi-24 Hind helicopters which had originally been built by the plant during the 1970s and 1980s. The first helicopters for upgrade were delivered to the plant just before the New Year 1999 from a Russian Army air regiment in the Chernigov District, Pomorye Region. After being stripped, repaired and refurbished, the helicopters would be good for another 10- 15 years service. In addition to refurbish of Mi-24s for the Russia military, Progress anticipates additional sales of upgraded Hinds to foreign customers.

By 1999 the airframe life of the Mi-24 combat helicopter was approaching its end and the type was due to be replaced by the Ka-50/52 and Mi-28, however the Russian Army did not have sufficient resources to completely re-equip with more modern machines. Consequently there was growing interest among the management at both the Khabarovsk and Ural Aviation Repair Plants in a proposal, submitted by the Progress aviation plant based in Arsenev (where the Mi-24 was built) to create a Far Eastern Upgrade and Repair Center for the Mi-24.

Ka-50 deliveries to Russian Air Forces were expected to begin with three helicopters in 2005, but these were still on the production line in mid-2006. These three were reported to be the most complete of 17 Ka-50s present in various stages of assembly. The first Ka-52 was reported under construction in July 2007.

On 01 July 2008, the general manager of Arsenevskaya aviation company "Progress" Yury Denisenko said that serial production of attack helicopters Ka-52 "Alligator" will begin in Arsenev (Primorskiy Kray) at the end of 2008. According to him, the first official flight of the serial Ka-52 helicopter was planned for after the completion of the development work in September 2008 in Arsenev. The general director of OAO "Helicopters of Russia' Andrei Shibitov, said that Ka-52 was a priority for the helicopter construction holding as a machine designed for the needs of the Defense Ministry of Russia.

In August 2008 OAO OPK Oboronprom, a Russian state-owned Rosoboronexport Federal State Unitary Entrp subsidiary, acquired a 50% interest plus one share, in a state-owned OAO Arsenev Aviation Co Progress Sazykin, an Arsenev-based manufacturer of helicopters and engine spare parts.

An official ceremony dedicated to the opening of the series production line of the Ka-52 combat helicopter Alligator took place on 29 October 2008 in the town of Arsenyev (Maritime Territory). An air show including a demonstration of the helicopter's combat characteristics will take place as part of this event," says a statement by the open joint-stock N.I. Sazykin Progress AAC, which reached Interfax-AVN on 13 October 2008. "The launch of production of the Ka-52 helicopter is an example of a breakthrough in the national machine-building sector on the account of science-intensive technologies, which has become possible thanks to coordinated actions by federal bodies of power and the heads of holding companies and Russia's industrial enterprises," the press release says.

The JSC Arseniev Aircraft Company “Progress” is a modern enterprise equipped with up-to-date machinery and using advanced technologies, some of which are without parallel in the rest of Russia or in other CIS countries. Teamed up with some of the world-famous aircraft design outfits, the company manufactures flying machines not a bit inferior to the world’s best models. Efficient after-sale maintenance services extend the life of the company’s aircraft to between 20 and 30 years.

“Progress” is not focused on products for the military-industrial complex. Recently, it has launched civilian product lines, such as furniture and complex home appliances, provides a range of services for the local fuel and energy complex, and fills orders from businesses and private individuals.

Foreign customers are particularly eager to buy Mi-24 helicopter gunships, light Mi-34S civil helicopters, and Yak-55, Yak-55M and SP-55 sports planes dubbed air acrobats that have won numerous awards at various championships. Domestic and foreign specialists show enormous interest in the winged supersonic homing anti-ship missile, a part of the “Moskit” complex, and the unique Ka-50 helicopter gunship, better known as the Black Shark, from N.I. Kamov’s design office, and its Ka-52 modification (Alligator). These helicopters have unique performance characteristics and combat capabilities. Besides, they are the world’s only helicopters to be equipped with rocket-fired pilot ejection systems. They are designed for both individual and group combat missions.

In 1997 workers at Progress, the ailing Arsenyev factory famed for producing Black Shark helicopters, demanded that its board of director fire Director Yuri Bodnya. Company debts totaled 57 billion rubles ($9.8 million) for over 15 months, the firm had reported. The Federal Accounting Department was checking whether Bodnya misused funds from Moscow intended for the plant and its workers.

Arsenyev plant previously built the Mil Mi-24/25/35 series of combat helicopters, in parallel with Rostvertol, and was also manufacturer of the Yak-55 aerobatic lightplane; a modified version of the last-mentioned, the Technoavia SP-55, was returned to production in 1999, in an initial batch of five, two of which delivered to Technoavia by October 2000. Civil production has been already started at the enterprise. The first batch of sporting airplanes Yak-54 is being assembled there.

Arsenyev was responsible for Mil Mi-34 helicopters, as well as Moskit missiles. It has been assigned the new Kamov Ka-60. Russian government shareholding is 51 per cent. A government decree of 31 December 1997 authorised the Arsenyev plant to offer the Ka-50 for export and supply spares and support for existing Mi-24/25/35 helicopters. Overseas delivery of P-15U, P-20, P-21 and P-22 cruise missiles is also covered.

Mil Moscow Helicopter Plant, JSC (MMHP) developed in 1986 the Mi-34 light sports helicopter unprecedented in its handling qualities. It is possible to perform overall aerobatic figures including the barrel-roll and the loop. Unfortunately the economic depression delayed the Mi-34 programs, altered the order- and project financing system, broke the production ties and as a result the commenced series manufacture assimilation of the light aircraft required by our country was stopped. The manufacture was limited by production of small initial batch of Mi-34 helicopters by means of “Progress” Arsenyev Aviation Company named after N.I. Sazykin.

In August 2001 Progress Arsenyev concluded a contract to build 15 helicopters for Ukraine in a 2001-2002 production run. The Progress plant will manufacture MI-34 helicopters capable of lifting and carrying cargoes and passengers for an unidentified Ukrainian firm. The contract, the biggest in the plant's post-Soviet history, will require that more workers be hired. The company's second largest order was the current contract with the Moscow-based company, Tekhnoavia, for the production of 10 choppers for Nigeria.

In early 1999 the Progress aircraft production factory at Arsenyev began the refurbish and upgrade of Mil Mi-24 Hind helicopters which had originally been built by the plant during the 1970s and 1980s. The first helicopters for upgrade were delivered to the plant just before the New Year from a Russian Army air regiment in the Chernigov District, Pomorye Region. After being stripped, repaired and refurbished, the helicopters should be good for another 10- 15 years service. In addition to refurbish of Mi-24s for the Russia military, Progress anticipated additional sales of upgraded Hinds to foreign customers.

Arsenyev was responsible for the Kamov Ka-50 (including, if ordered, the Ka-50-2 export version). In August 1994, the Ka-50 was included in the Russian Army inventory by Presidential decree, judged winner of the fly-off against Mi-28. The Mi-28 was nominally terminated on 5 October 1994 but the competition continued. The preproduction V-80Sh-1 s (014 and 015) were first to be built at Arsenyev. Further three for continued development work comprised 018 (first flown at Arsenyev 22 May 1991), 020 'Werewolf' and 021 'Black Shark'. (Export marketing name was originally Werewolf, but changed to Black Shark by 1996.) Further army evaluation followed when first two of four production Ka-50s were funded in 1994 and officially accepted on 28 August 1995; third and fourth received in 1996; these four numbered 20 to 23 (prompting pre-series 021 to be renumbered 024 to avoid confusion). Arsenyev production was to have increased to one per month during 1997, but this did not occur.

In a surprise announcement of December 2003, C-in-C of Russian Air Forces revealed plans for delivery of 12 Ka-52s (and some Mil Mi-28s) to begin in early 2004. One year later, the target had been changed to three delivered in 2005 and two in 2006, all from 'Progress' plant at Arsenyev. During 2004, Yemen was mentioned as a possible customer for 12 Ka-52s.

In mid-2006, Russia's Deputy Prime Minister and Defense Minister Sergei Ivanov said the State Armaments Program called for buying 12 Ka-50 helicopters in addition to the three operational Ka-50s by 2015. In late 2006, wire services said the Arsenyev-based Progress Central Specialized Design Bureau in Russia's Maritime Territory had resumed tests of the famous Kamov Ka-50 Hokum (Black Shark) helicopter gunship. Production of this unique helicopter, which had stopped in the mid-1990s, has now resumed completely, a Progress spokesman told RIA Novosti. "This made it possible to involve about 3,000 workers in this state contract. We plan to build four Ka-50s for the Russian Armed Forces in 2007," he said.

In February 2007 production of the Ka-50 ‘Black Shark’ helicopters has been recommenced in Russia’s Far East. In the late 1990s when Russia experienced a default, the production was suspended as finance appropriated for armament was not enough at that time. Now, ‘Black Shark’ is ready for serial production again. Soon after it begins, assembly of the Ka-52 ‘Alligator’ is to be started at the Progress enterprise in the town of Arsenyev, Russia’s Far East.

Placement of the Defense Ministry’s order at the enterprise Progress in the town of Arsenyev has breathed new life into the place. Bankers open new banks there, and the whole of the town hopes that steady production at Progress will change the life of citizens for the better. In February 2008 the extraordinary meeting of shareholders of "Progress" (Arsenyev) approved the credit deal with Sberbank worth 3,15 billion RUB. The credit will be used for fulfilling the contracts with the Ministry of Defense. "Progress" announced it begins a technical upgrade project to be done within the federal program «Development of the military-industrial complex for 2007-2010 and till 2015».

The "Progress" enterprise in Arsenyev, is town forming as "Askold" enterprise. The city was built and its infrastructure was made round these enterprises. The Askold and Progress Works constitute the basis of the city’s economy. Besides, the primary product, the Askold and Progress produces sport and training aircraft, laundry machines, electric equipment, diverse aggregates for poultry farms, and household appliances. The city of Arsenyev is located on the banks of Arsenyevka River at the junction of Varfolomeyevka-Sibirtsevo (names of settlements) Railway and Trans-Siberian Railroad. This industrial city, in the heart of Primorsky Region, has been developed from the small village of Semenovka. On the Uvalnaya Hill in the city vicinity there is a Statue of Vladimir K. Arsenyevs (a scientist, prominent explorer of the Russian Far East, and a distinctive writer) which is about 4 meters high.

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Page last modified: 30-01-2016 19:10:14 ZULU