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05 November 2015

The purchase was carried out to implement the Holding’s strategy and to acquire the expertise required for the development and production of electric drives – a key direction in the aircraft control system and in building a more electric aircraft. Today Technodinamika Holding  signed a deal for the purchase of 59.33% of the stock of PJSC “ELECTROPRIVOD”, based in Kirov. As a result of the deal, the Holding has established control over the enterprise by consolidating 84.34% of the stock. The value of the deal has not been disclosed. The deal was financed by the Holding and by borrowed funds.

"We are completely satisfied with the results of the deal. This asset is strategically important for implementing the Holding's long-term development strategy. The enterprise has unique engineering capabilities and produces world-class products," points out Vladimir Artyakov, the First Deputy CEO of Rostec State Corporation. "This purchase is completely in line with our plans for developing sectoral expertise in Technodinamika and strengthening its market positions."

ELECTROPRIVOD is presently the only developer and manufacturer of the high lift devices control system and actuators with electric drives for most domestically-made aircraft and helicopters in military, civil and transport aviation in Russia (including Tu-214, Tu-204SM, IL-76MD-90A, MiG-29K, Su-27, the Kamov family of helicopters, etc.). It also develops electric starters for gas-turbine engines used in the gas industry and servo drives controlling the position of graphite rods in high-power channel-type reactors. "The demand for electric drives will grow with the development of more electric systems and, in particular, a more electric aircraft," adds Maxim Kuzyuk.

The enterprise also develops electromechanical devices for advanced PD-14 engines for МS-21.

The enterprise's revenue in 2014 amounted to RUB 505 mln (of which 70% came from aviation and 25% from the gas and nuclear industries), with a net profit of RUB 22 mln.

The existing capacities of ELECTROPRIVOD ensure fulfillment of the assigned plans. At the same time, since 2010, over RUB 145 mln has been invested in production modernization and technology upgrading. Increasing the enterprise's capacities requires fulfillment of the technology upgrade program in the amount of RUB 80 mln, which will provide a 30% estimated increase in revenue. In addition, an investment project valued at RUB 250 mln has been prepared for the production of the PD-14 engine components.

The enterprise takes part in the Import Substitution Program for aeronautical equipment accessories and expects to launch the production of six new items in 2016.

"We expect the asset value to grow by at least 80% by 2020," states Victoria Kulik, Deputy CEO for Strategy and Marketing. "After the purchase, we expect the enterprise to be loaded with work on new aircraft for the United Aircraft Corporation, with a revenue of over RUB 1 bln by 2020." According to Kulik, the asset value can be increased, in particular, by augmenting management and production. At present, the labor productivity at ELECTROPRIVOD is 40% below the Holding average and the overhead costs are about twice the Holding average. The Holding has already elaborated a set of measures aimed at increasing the labor productivity and reducing the overhead costs for the enterprise.