Pratt & Whitney and Perm continue to develop their relationship

Published: 5/26/1999

According to Russian news reports, Pratt & Whitney (PW) and the Perm Motor Plant are continuing to develop a joint venture, International Commercial Motors (ICM), which will be based at the facilities of Perm Motors and Aviadvigatel. ICM will be primarily involved in promoting power units for domestic and international markets. These units are being manufactured as part of the PW/Perm co-operation project. The power units are to be installed on passenger aircraft, gas-compressor plants and electric power stations. In 1998, PW is reported to have invested more than $200 million on projects with Perm. The joint venture, which has been discussed between the various parties for some time, will ultimately be divided among share holders as follows: Perm Motors (49%), the financial and industrial group, Interros (26%), and PW (25%). Concise Aerospace is aware that Interros, the holding company of the Oneximbank group, controlled by Mr Viktor Potanin, also controls the Perm holding company for Perm Motors. As such, the arrangement seems to be much more of a deal between PW and Interros. PW is by far the most enthusiastic of western aerospace companies in Russia. It is currently involved in another joint venture, within Russian aerospace, for the production of rocket engines, with NPO Energomash.

Article ID: 537