P&W sells stakes in Russian engine firms

Moscow
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Pratt & Whitney has sold its shareholdings in Russian major civil engine manufacturer Perm Motors, and its affiliated design bureau Aviadvigatel, to Oboronprom.

Since 1997, the United Technologies subsidiary had owned blocking stakes of around 25% in each of the two enterprises.

But the firm's representative in Moscow said both assets had been acquired "on the agreed terms" by the state conglomerate Oboronprom which is seeking to consolidate Russian engine making industry.

Following the deal, Perm Motors and Aviadvigatel have come into the fold of Oboronprom's designated unit, United Engines Corporation, which is expected to merge them into a single company.

A spokesman for Oboronprom said both enterprises had gained valuable experience while working jointly with Pratt & Whitney on developing the PS-90A engine family.

He suggested their co-operation could continue within the framework of other projects, such as the PD-14 turbofan for United Aircraft's MS-21 medium-range twinjet.