Irkut Plans US$5b Malaysian OEM Plant

25 April 2010

Aircraft component (photo : motoriperkins)

Russia's Irkut Corp has pledged an investment of US$5 billion (RM16.5 billion) to establish a full-fledged and diversified original equipment manufacturing (OEM) facility in Sungkai, Perak, soon.

Sungkai is slated to be established as the Malaysian Defence Security Technology Park by year-end.

Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said the facility would encompass research and development; design; manufacture of components and parts; and maintenance, repair and overhaul (MRO) services for the defence and aerospace industries.

"In total, Irkut has entered into 28 memoranda of agreement with various local parties to produce locally, under licence, an array of parts and components not only for the Malaysian market but also for global requirements."
Zahid said the three main areas of cooperation, through smart partnerships and transfer of technology, were:

- the supply of OEM spares for their principal manufacturers through the MRO;

- weaponry system assembly plants; and,

- the supply of components for the aerospace industries involved in the manufacture of Sukhoi and MiG fighter jets and the Yakolev transport aeroplane.

"Irkut's participation will be a tremendous boost for the local defence, security and aerospace market and help spur the growth of the industries here," he said yesterday at the close of the Defence Services Asia 2010 exhibition at the Putra World Trade Centre.

Irkut is one of Russia's foremost industries, famed for the Sukhoi Su-30 multi-role combat aircraft, and is the prime contractor for the Indian Air Force's Su-30MKI fighters.Irkut also manufactures the Beriev Be-200 multipurpose amphibious planes, Yakolev Yak-130 combat training aircraft, unmanned aerial vehicles, components for Airbus passenger airliners and the MC-21 passenger airliner.

With Irkut's investment plans, Zahid said the total value of deals inked at DSA 2010 would exceed RM25 billion, following the RM10.355 billion signings announced on Tuesday.

Zahid commended foreign partners for providing a sustainable platform for defence and security technology manufacturers and vendors to meet face-to-face with their potential customers.

This, he said, allowed them to discuss the various options available to match their inividual nations' upgrading and modernisation programmes.

"On our part, I wish to reiterate the government's commitment towards enhancing the industry. We will ensure the delivery of technology on a timely and orderly basis." -- NST

(Business Times)