NPO Saturn: Preliminary results for 2011

December 22, 2011, Rybinsk  2011 saw events which demonstrated NPO Saturns achievements across a broad spectrum. This year saw the launch of commercial operation of the SSJ100 aircraft with SaM146 engines. At the MAKS-2011 aviation salon, Saturn engines bore aloft new models from the Russian aviation industry  the T-50, Su-35, and the SSJ100. This year also saw the first public display of the Indian HJT-36 training aircraft with A-55 engines. There were two important anniversaries this year  the 65th anniversary of Saturns Moscow affiliate the Lyulka Scientific-technical center, and the 95th anniversary of Saturn itself.

2011 was a key year for the SaM146 program. Early in the year the AP- MAK certificate was obtained, giving the company permission for mass production of the SaM146 engine. In April Armavia Airlines launched the first commercial operation of the SSJ100 aircraft. In June Aeroflot  Russian Airlines launched a second one. In July a large volume of work to obtain the certificate for organizing technical servicing and repair of the SaM146 was completed, granting the right to carry out repairs and technical service on the engine for Russian and CIS customers. Upcoming is the acquisition of similar certificates from EASA.

Also in 2011, the  6 large-capacity -110 gas turbine engine for  2 block of the Ivanovsky CCGT (an affiliate of INTER RAO UES) was delivered; the block has a capacity of 325 mW. A second -110 to complete  2 block will be delivered to the customer at the end of this year. The company is carrying out a range of measures aimed at improving the working specifications and operational reliability of the -110, and perfecting systems of aftersales servicing.

Among the other notable events in 2011 was the fulfilment of a contract for overhaul of -30-2 engines for the Russian Defence Ministry. After a number of years of insufficient financing, the state found significant funding to support the airworthiness of military-transport aviation. As a result, in 2011 about 50 engines were repaired at a cost of more than a billion rubles.

2011 was a year of technological improvements at the company. Several projects were launched with government capital investment to create new high-tech production and special participation in the federal targeted program for the military industrial complex.

In 2011 the Saturn design bureau continued to create scientific-technical capacity in planning and manufacturing potential engines for the AFAS. As part of the -14 project to create an engine for the -21 medium-haul aircraft, Saturn confirmed its status as the primary co-creator. Work was wrapped up on creating the E70/8 industrial engine, which has an 8 mW capacity with a duel-fuel combustion chamber, a first for Russia. Work continued on modifications to the SaM146 engine to increase the draught, as well as work on special technical engines.

An important event of the past year was the fleet of -6 engines reaching the milestone of more than 1,000,000 operational hours. The engine is widely used in a variety of climatic conditions and has proven its longevity and reliability.

2011 was a year of transformation for Saturn due to the realization of its anti-crisis program. Most importantly of all, the company mobilized its internal resources  active cooperation with suppliers, searching for new markets, creating centers of competency with the goal of improving production efficiency and continuing to outsource non-core activities. In 2011 the company signed two contracts, for the delivery of 184 -30-2 aviation engines to a Chinese customer and for the delivery of 200 -10 power engines, worth a total of about 1 billion US dollars: fulfilling these orders will require significant reorganization of the company.

Ilya Federov, NPO Saturn managing director and chairman of the Russian Engineering Union, commented: 2011 was both a difficult and an easy year for Saturn. This was the year of a good showing at MAKS, and of the tough time in getting production rolling on the SaM146. A year in which we successfully fulfilled government defence contracts for repairs to the -30-2 engine and rocket mechanisms and also signed large new contracts that well be filling over the next 3-4 years. This was a year that brought Saturn a new structure, to meet the changing structure of orders and the tasks before us.

Today we are forecasting that well be on budget on most things, and Saturn has the background to round up the financial year without a loss. In the plan for 2012 is 30% growth in production volumes and large-scale investment into long-term development. We need to triple our output of SaM146 units and improve the profit margins on this engine. We have a lot of work on our plates with state defence contracts, including a significant increase in engines for winged rockets.

Its very important for Saturn to be a company that is capable of changing to meet the tasks it faces. We now have a very different design bureau. It has started designing to targeted production costs. We are creating and developing centers of competency based on Saturn and continuing to shed assets which are not connected with the production of gas turbine engines. This speaks to Saturns internal structure, but this has changed only in order to meet the work on new contracts and the increased mass production of the SaM146 engine.

NPO Saturn is an engine-building company specializing in the development, production, and aftersales servicing of gas turbine engines for military and civil aviation, electrical generating and gas transport facilities, and military and civil marine vessels. Saturn is part of the United Engine Corporation, itself a subsidiary of OBORONPROM, specializing in managing engine-building assets.

United Industrial Corporation OBORONPROM is a multi-faceted machine-building group founded in 2002. It is part of the Russian Technologies group of companies. Its primary areas of business are helicopters (Russian Helicopters), engine-building (UEC), and other assets. In 2010 the corporations turnover exceeded 170 billion rubles.

Saturn Press Service
Tel: (4855) 296-898
e-mail: press@npo-saturn.ru www.npo-saturn.ru