US-Russian JV signed first investment contract with Russian government

The agreement was reached between the country’s Ministry of Industry and Trade and Hamilton Standard – Nauka, which produces heat exchangers for aircraft (NPO Nauka)

On March 15, a special investment contract was signed between Russia’s Ministry of Industry and Trade and Hamilton Standard – Nauka (HS-Nauka), marking the first such agreement in the history of Russian aviation industry. HS-Nauka is a joint venture between the US company UTC Aerospace Systems and Russian NPO Nauka, which produces heat exchangers for aircraft air conditioning systems. The contract implies further expansion of HS-Nauka’s production site in Kimry, Russia’s Tver Region.

The second heat exchanger assembly line in Kimry was launched in October 2017, with the aim of boosting production output as well as expanding the manufacturer’s capability list, including equipment for the prospective Boeing 777X airliners. The company invested some 300 million rubles ($52 million) in the facility, and was counting on raising an additional 800 million rubles for extra work. Now that the special investment contract has been signed, the manufacturer will be able to get access to investment funds in excess of 800 million rubles, which it will direct toward purchasing innovative equipment, adopting new technologies, and having its personnel trained for the job.

“Special investment contracts are a relatively new way of supporting manufacturers and attracting investment, but they have already proven their worth,” says HS-Nauka CEO Roman Chichelov. “The signing of the agreement is proof that our project is important to Russia; it also indicates that the government is interested in its implementation.”

The first production capacitt at Kimry became operational in October 2011. It is currently operating at full capacity, producing about 550 pieces of equipment per month.