FACC

nvestment of 55 million Euro at the Kazan location
• Production of composite components for civil aircraft

Moscow/Ried - FACC AG and Aerocomposit, a subsidiary of the Russian aircraft group, United Aircraft Corporation, located in Moscow, today announced the foundation of a joint venture for the construction of a production plant at the Kazan location. In accordance with the agreement, FACC will initially have a share of 24 per cent in the joint venture, which will be increased to 40 per cent after respective government approvals have been received. In addition to Aerocomposit, which will hold 51 per cent of shares in the joint venture, the Republic of Tatarstan will have a 9 per cent holding in the company.

In the initial phase the company will produce various composite components for the wings and tail unit of the Russian regional aircraft, Sukhoi Superjet 100. These involve components which FACC is currently developing in cooperation with Aerocomposit and will produce at the Austrian location from March 2012 until initiation of the new plant in Kazan. In addition to the components specified, the joint venture will also handle production of composite components for future Russian aircraft such as the MS-21 or derivates of the SSJ100. The investment volume for the planned plant amounts to 55 million Euro. Start of construction is planned for end 2011. Start of production is in mid 2013.

„Aerocomposit is an ideal joint venture partner and we have been working together with them in development for several years. The decision to build a new production facility shows we are investing in our future in Russia and wish to participate in the strong growth recorded in the Russian market", says Walter Stephan, Chairman of the Board at FACC AG. „It is an important strategic step for us to create additional production capacity and to be less affected by currency fluctuations. "

In the second phase the joint venture is to produce components for aircraft of western manufacturers. FACC is seeking to win orders from the aircraft manufacturers Airbus, Boeing, Bombardier and Embraer and to subcontract this work to the Kazan plant. Russian airlines are important customers of western aircraft manufacturers today. The newly formed joint venture provides Russian airlines with the opportunity of fulfilling offset obligations arising from aircraft sales on the Russian market.