During the international ChinaAirshow-2014, representatives of Rostec and its holding companies signed a number of key agreements in the radio-electronics, aviation, and space technology industries, demonstrating the dynamic development and expansion of cooperation between the two powers.
A total of four agreements were signed with Aviation Industry Corporation of China (AVIC), China Aerospace Science & Industry Corporation (CASIC), and two subsidiaries of China Electronics Technology Group Corporation, namely CETC International (CETCI) and Nanjing LES Information Technology (LES).
“We have reached a new level of cooperation with Chinese partners in the construction of airplanes, helicopters, and engines, as well as other aircraft materials, such as avionics and aerospace products,” said Nikolai Volobuev, Rostec Deputy CEO. “Partnering with Chinese corporations means mutual assistance in the development, production, and export of high-tech industrial products, trade, and investment. This opens up a wide range of possibilities for Rostec enterprises and also promotes confidence as we expand to new international markets.”
The signed agreements are mostly of a practical nature. For example, the Rostec Corporation holding company Ruselectronics and LES agreed on the participation of the subsidiary Azimut and the Chinese company in a joint project to equip civil and military airports. The partnership will facilitate the production of instrument landing systems, automatic direction finders, rangefinder navigation systems, radio beacons, and data transmission systems in China. The agreement may also lead to the production of radiolocation systems in Russia that would allow both pilots in the air and controllers on the ground to “see” aircraft traffic with greater accuracy.
Another agreement between Ruselectronics and CETCI outlines cooperation in developing, manufacturing, and distributing special power supply and electronic component base products. Currently, around $15 million dollars of products manufactured by Ruselectronics enterprises are exported to China, primarily finished EKB products: reed switches, communication products, X-ray tubes, transistors, and more. Primarily raw materials are imported into Russia.
An agreement with China Aerospace Science & Industry Corporation (CASIC) focuses on cooperation in the fields of electronics, optoelectronic devices, integrated systems for “Smart City” safety management, engine construction, composite materials, and other promising high-tech fields. As previously noted by Deputy Prime Minister Dmitry Rogozin, plans are underway to implement a joint project for developing satellite navigation technologies, integrating the capabilities of the GLONASS and Chinese BeiDou systems.
Finally, Rostec Corporation and AVIC signed a strategic cooperation agreement for producing helicopters, aircraft engines, and other aircraft materials, such as avionics and other radio-electronics systems. Possible areas of work include the preparation and implementation of joint projects in Russia, China, and other countries, as well as providing additional benefits for warranty and post-warranty service.
A number of Rostec Corporation subsidiaries are already partnering with AVIC enterprises, including in the creation of a heavy helicopter, sales of titanium and aluminum prefab materials, and the development of new avionics. The Chinese partners have also expressed interest in cooperating with Russian colleagues in the research and production of special glass for high-speed trains and passenger airplanes.
Rostec Corporation is a Russian corporation established in 2007 to promote the development, production, and export of high-tech industrial products for civil and military use. The corporation unites approximately 700 enterprises through 9 defense industry holding companies and 5 civilian industry holding companies. Rostec subsidiaries, which can be found in 60 regions of the Russian Federation, export products to markets of more than 70 countries. In 2013, Rostec earned 1.04 trillion rubles in revenue, with 40 billion rubles of net profit. Tax payments to the budgets of all federal levels exceeded 138 billion rubles.
Ruselectronics was formed in 2009 from an eponymous state holding company, which was established in 1997 by a decree of the President of Russia to consolidate radio-electronics industries and develop a unified science and technologies policy, as well as to grow and recover financial assets. In accordance with the decision of the Russian government, all shares of Ruselectronics were transferred to Rostec Corporation. Ruselectronics is part of a strategic bloc of companies within Rostec Corporation that produce both civilian and military products. Currently, as a holding and managing company, Ruselectronics oversees 123 subsidiaries in the electronics industry that specialize in developing and manufacturing electronics; materials and equipment used in the production of electronics; microwave and semiconductor devices; subsystems and other technical means of communication; and automation and information systems.
Azimut, a group of companies within Ruselectronics, is one of the main developers and suppliers of communication, navigation, landing, and automated technology for air traffic control as part of the modernization of the Unified Air Traffic Management System. Azimut equipment has been successfully installed and utilized in more than 150 civil aerodromes.
CETC unites 47 state research institutes and 1 international trading company. Founded in 1962 and based in Beijing, China, the corporation offers integrated products and services in a range of industries, including electronic medical equipment, transportation electronics and equipment, light industry, agriculture, environmental conservation, meteorology, construction, energy, mining, engineering, and electronics.
AVIC is China’s leader in the aviation industry, as well as one of the top companies in the global aviation industry. The corporation maintains strong partnerships with leading aviation companies worldwide and is ranked by the journal Fortune in 178th place among the world’s 500 largest companies. AVIC manufactures advanced aviation products, including the MA and Yun-12 series of turboprop regional passenger aircraft and the AC313 and AC311 helicopters.
CASIC is China’s largest designer and manufacturer of missile weapons, electronics, information systems, and communication systems for military and civil purposes, as well as aerospace products, including spacecraft, satellite equipment, and radar stations.
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