Oboronprom Takes Control of Russia’s Mil Helicopter Plant

Oboronprom Takes Control of Russia’s Mil Helicopter Plant

Russian state-controlled Oboronprom, the core company in the government-led consolidation of the national helicopter industry, announced July 12 it has taken majority ownership of Mil Moscow Helicopter Plant.
A subsidiary of Rosoboronexport, the state arms-trading monopoly, Oboronprom has acquired 25.07 percent of Mil from the Russian Abilis Holdings, according to an Oboronprom press release. Oboronprom already owned 36.35 percent of the Mil plant. Neither company would disclose the amount paid by Oboronprom.
The remaining shares of the Mil plant are spread among U.S. company Sikorsky International Operations (9.39 percent), Russian companies Energia (5.58 percent) and Pentapol (5.11 percent) and more than 4,600 private shareholders.
Created in 2002 and designated in a 2004 decree by President Vladimir Putin as the vehicle for consolidation of Russia’s helicopter-making industry, Oboronprom already controls the Ulan-Ude aviation plant, Vperyod Moscow machine-building plant and Stupino machine-building industrial enterprise.
By the end of 2007, Oboronprom plans to consolidate a controlling stake in two other helicopter producers:
• The Kazan aviation plant. Oboronprom now owns 29.92 percent, while Rosoboronexport has 21 percent. Russia’s TFK company, which is 50 percent-owned by the Kazan Helicopter Plant, holds 11.41 percent, with the remainder spread among more than 10,000 shareholders, including the government of Tatarstan.
• The Kamov plant. Oboronprom currently owns 49.46 percent in Kamov, while the state-owned MiG Corp. manages 49.64 percent.
By early 2008, Oboronprom plans to acquire a blocking stake in the Rostvertol helicopter plant, in which it currently owns 4.22 percent, while the governmental Federal Property Agency owns 3.44 percent. Forty-eight percent of Rostvertol’s shares are floated, and the remaining shares are owned by the company’s management.
In 2006, the enterprises that are slated to become part of the Russian helicopter-production holding rolled out 110 helicopters, earning more than $1.1 billion, according to Oboronprom.