Motor Sich ink contract with Chinese for engine supply
It is reported that Motor Sich has signed a contract with Chinese HAIC to supply AI-222-25F turbofan engines for its L-15 jet trainer. The deal was closed in spring and the first dozen of engines will be shipped in 2011.
According to Mr Oleksiy Gorovyy Millennium Capital analyst “The news is POSITIVE for Motor Sich. Although, the volumes and shipment schedule are uncertain, the agreement itself is critically important to sustain the revenue momentum at the company which now officially becomes the exclusive engine supplier for the program. The program will also help Motor Sich to reduce its dependence on the Russian customers to some extent.”
He said “A single engine for L-15 is worth USD 2 million an each plane will need at least two of those, leaving MSICH with over USD 4 million in immediate sales per each aircraft produced and some potential for aftermarket revenues. Our forecast is now for 300 planes produced over the entire lifespan of the program, yet we look forward to hearing more details to be comfortable with shipments and schedule.”