MIAMI – According to Rostec, United Aircraft Corporation (UAC), Sukhoi and Mikoyan-Gurevich will merge into a single aircraft manufacturing hub in Moscow.

UAC includes famous names such as Ilyushin, Irkut, Tupolev, and Yakovlev. According to Rostec, around US$1.7bn is planned to be saved as a result of the big merger.

“Structural transformations, a cost optimization program, transformation of the industrial model, research and development block, digital transformation of UAC are aimed at increasing the utilization of production facilities and increasing labor productivity,” according to a statement by Russian State Corporation Rostec and quoted by TASS.

The announcement also states that the merger will be implemented in stages over several years.

Rostec stand in Dubai Airshow. Photo: Rostec

One Aircraft Design Hub

A Unified Engineering and Design Center in Moscow, in addition to the aircraft assembly facility, could bring together all of the aircraft design bureaus. Moreover, the restructuring should have no impact on engineering and design staff.

In 2018, Rostec purchased the United Aircraft Company, which was established in 2006, as part of a strategy to improve Russia’s aviation capabilities. Rostec also has over 700 companies organized into 14 holdings, 11 of which are in the defense industry and three in the civilian market.

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