Motor Sich (MSICH) signed a contract with Russia’s Kazan Helicopter Plant to manufacture engines for its new “Ansat” light multi-purpose helicopter, Delo reported. The Ansat was originally designed and tested in 1999-2001 to use Canadian Pratt & Whitney model engines, while the newspaper reports Motor Sich will supply its own MS-500 model engine for the project.

Alexander Paraschiy: The news looks encouraging for Motor Sich, but it is somewhat expected as the company has been negotiating for the Ansat contract for the last couple of years. The MS-500 engine is comparable operationally to Pratt & Whitney’s PW207K, but it is less expensive and preferable for Russia from a strategic point of view as Russian engine producers have a good chance to be involved in its production. We estimate the new project will bring additional annual revenue of US$ 4-6mn for Motor Sich, or below 2% of total sales.