* Rostec head says investment would be $100 million
* Plans to collaborate on Q400 medium-range aircraft
* Russia seen as key growth market for plane makers
By Gleb Stolyarov
MOSCOW, Feb 15 Russia's Rostec is in talks with
Bombardier over a possible multimillion-dollar joint
venture to build the Canadian plane maker's Q400 aircraft in
Russia, the head of the state-owned technology company told
The industrial and defense conglomerate formerly known as
Russian Technologies hopes to break into the medium-range
aircraft market in Russia, which international manufacturers
such as Boeing, Airbus and Bombardier view as an
important growth market.
Boeing has predicted that Russia and its neighboring states
will take delivery of 1,140 new aircraft over the next 20 years,
valued at $130 billion.
"We proposed creating a joint venture with Bombardier to
produce aircraft," Rostec's Sergei Chemezov said in an
interview. "We estimate investment in the project would be about
"Today, no legally binding documents have been signed, so I
can't say anything further, but most likely it will be a 50-50
Chemezov, who was a KGB agent in 1980s East Germany but has
been head of the conglomerate since it was a state arms trader
called Rosoboronexport, said that Rostec would initially produce
part of the turboprop plane's airframe but could ultimately help
to make the engines.
Rostec's VSMPO-AVISMA already operates a titanium joint
venture with Boeing in Russia. The business supplies more
than a quarter of the world's titanium and has long-term
contracts with aircraft manufacturers.
Bombardier declined to comment on the nature of its
"discussions with entities located around the world", but said
it did not plan to transfer production of its Q400 aircraft away
The Q400, which seats 70 to 80 passengers and is designed to
operate in extreme low temperatures, could serve as a
replacement for the obsolete AN-24 and is a direct competitor of
the ATR 72 that operates all over the former Soviet Union.
The territory of the former Soviet Union requires about
300-400 regional aircraft to replace the manual AN-24, said
Boris Rybak, of the consultancy Infomost.
ATR is jointly owned by Airbus parent EADS and
Russian media reported in November that Bombardier was
interested in assembling its Q400 passenger planes at Samara's
Aviacor, a division of billionaire Oleg Deripaska's Russian
Machines. Deripaska's company declined to comment at the time.