MAPO reorganised and renamed, but the problems remain the same

Published: 12/14/1999

The renaming of VPK MAPO as RSK MiG has been accompanied by the third major reorganisation of the design and manufacturing group since 1995, which still leaves the group with some pressing problems. As expected, under a decree of 9th December, MAPO will shed a number of businesses. These include helicopter designer, Kamov - part of the MAPO since 1996 - which will now potentially absorb the Arsenyev helicopter facility, its primary manufacturer, along with the plant at Kumertau, in order to create Kamov Helicopters. The engine companies within VPK MAPO: design bureaux Klimov and Tushino Machine Building design bureau ‘ Soyuz", and the Chernyshov plant will become a new integrated engine company. St Petersburg based-avionics company, Electroavtomatika, becomes independent in a new entity jointly owned by MiG and a new avionics concern. Radar producer, Ryazan State Instrument Plant, stays outside the group, as does the group"s bank Aviabank. MAPO"s recently disputed strategy moves appear to be consolidated in leaving the Kubinka aircraft upgrade and maintenance plant outside of the group. The Mikoyan design bureau will be at the heart of the new venture. It will include the Voronin Production Plant and Lukhovitsy Machine Building Plant (LMZ), both responsible for the MiG-29 and the Il-103, in the case of LMZ. It will also include component producer, Krasny Oktyabar, Pribor, Aviatest and Perm Instruments. These changes in structure are taking place against intense debate within the aerospace industry over which direction General Director Nikitin, currently accused of abandoning MiG"s military business, will choose. While stressing the importance of civilian programmes, such as the Tu-334, to the future of the company, he has also reassured the market of his military commitment and announced a MiG-29 order for the Indian Navy. MAPO has suffered from the resignation of key military designers, complaining of stalled projects, at a time when the company has argued that it is entitled to the upgrade contract for the Russian Air Force"s MiG-29s. This contract currently rests with Russkaya Avionics, a private company headed by former GD Mikhail Korzhuyev. Nikitin claims that the contract was issued to the private company when Korzhuyez was in charge of both companies and undertook to find a way around MAPO"s bank accounts, which were frozen at that point. MAPO may also find additional competition from a rumoured new upgrade company, allegedly being planned with both military and government support.

Article ID: 1224