The Swifts and Russian Knights aerobatic teams
The Swifts and Russian Knights aerobatic teams

Russian Defense Company UAC Shareholders Approve Sukhoi and MiG Merger

Shareholders of the Russian state-owned United Aircraft Corporation (UAC) approved the merger of two subsidiary aircraft manufacturing companies, JSC Sukhoi Company and JSC RAC MiG, into UAC. The majority of shareholders voted for the reorganization of UAC in the form of joining Sukhoi and MiG to it during an extraordinary meeting of shareholders held on January 17, 2022. The issue of reorganization was submitted to shareholders for consideration by the Board of Directors of UAC in November 2021, UAC said in a statement. The merger with Sukhoi and MiG is part of the ongoing corporate transformation of UAC, which was approved by the Rostec State Corporation. The changes are designed to reduce the number of management levels, simplify the corporate structure, eliminate duplicating administrative functions, and reduce general business costs.

The centralization of the management of the Sukhoi and MiG companies was started earlier: the functions of the sole executive body (SEO) of MiG were in Sukhoi, and the functions of the sole executive body of Sukhoi were in the UAC. After going through a series of procedures within a few months, these three companies will become one organization. As a result, UAC will become not only a corporate center, but also an operating company that directly manages production and design offices, implements aviation programs and develops advanced equipment. Thus, the planned transition from a three- to a two-level corporate governance structure in a corporation has been launched. At the same time, the strong and world-famous Sukhoi and MiG brands will remain, and authoritative design schools will continue to develop.

At the same time, it is planned to develop corporate-wide competence and service centers, expand cooperation between production sites for more efficient implementation of aircraft building programs. Along with other measures, this should ensure an increase in the financial stability and investment attractiveness of UAC as a whole. Consolidation and centralization of management are also taking place in other areas of UAC activity. Thus, in November 2021, the accession to the Voronezh aircraft plant VASO, the Ulyanovsk enterprise Aviastar-SP and the Moscow region EMZ named after A.I. Myasishchev. The powers of the CEO in relation to PJSC “Il” itself were transferred to the UAC. The Corporation also has such powers in relation to the center of the strategic aviation division of Tupolev PJSC, which includes, in addition to the design bureau of the same name in Moscow, the Kazan Aviation Plant named after. S.P. Gorbunov.

The PJSC United Aircraft Corporation (UAC, Obyedinyonnaya Aviastroitelnaya Korporatsiya) is a Russian aerospace and defense corporation. With a majority stake belonging to the Russian government, it consolidates Russian private and state-owned aircraft manufacturing companies and assets engaged in the manufacture, design and sale of military, civilian, transport, and unmanned aircraft. Its headquarters are in Krasnoselsky District, Central Administrative Okrug, Moscow. Many of the corporation’s assets are located in various regions in Russia, with joint-ventures with foreign partners in Italy, India and China. On 25 October 2018, a deal was approved by Russian President Vladimir Putin for the UAC to be acquired from the Federal Agency for State Property Management by Russian state-owned conglomerate Rostec with a turnover cost in excess of one billion rubles (US$15 million). This would result in the entire national aviation assets being put in the hands of Rostec, as Rostec also owns the helicopter monopoly Russian Helicopters and the engine monopoly United Engine Corporation.

Mikoyan MiG-29 fighter jets of theSwifts and Sukhoi Su-27 fighter jets of the Russian Knights aerobatic teams