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The Deputies of the State Duma and Members of the Federation Council of the Russian Federation visited NPO Saturn and highly appreciated scientific and production achievements of the company and carrying-out of the SaM146 engine program for SSJ.

Site news 6.06.2008
June 6, 2008, Rybinsk. At NPO Saturn headquarters in Rybinsk a discussion of carrying-out the program to create the SSJ aircraft with the SaM146 engines took place.
The Deputies of the State Duma representatives of the Traffic Committee, Committee on Industry and Budget Committee, Interfractional Deputies Group Aviation and Cosmonautics and Members of the Federation Council got acquainted in detail with modernization of production at NPO Saturn, application of state-of-the-art technologies, unique test facilities, up-to-date level of the biggest in Russia design bureau in the sphere of gas-turbine engine building and took part in a meeting with participation of Yaroslavl Region, NPO Saturn and Sukhoi Civil Aircraft Company leaders.

The following issues have been discussed:
- status, expected future development and legislative provision of development of the domestic aircraft industry (by the example of Sukhoi SuperJet100 regional aircraft project and the SaM146 engine);
- status, expected future development and legislative provision of innovation economic development (by the example of aircraft engine building and NPO Saturn);
- legislative provision of structural transformations in the defense industry complex and development of defense industries
(by the example of aircraft engine building);
- status, expected future development and legislative provision of policy to attract and hold personnel in the defense industry complex (by the example of aircraft engine building).
 
Sergei Vakhrukov, Governor of Yaroslavl Region, to the results of the parliament members and senators visit to NPO Saturn, remarked that the strategic project to create the SSJ aircraft with the SaM146 engines had been profoundly analyzed. Being supported by the State, the project had already given first results. The State Duma Committee Members have come
to see how the project is being implemented and what is already done. From our todays discussion it is clear that everybody is satisfied with what they have seen and appreciate the work that has been carried out. And the most important thing is that everybody understands that to produce the SaM146 propulsion system for the Sukhoi SuperJet100 aircraft it is necessary to make additional joint efforts and the State shall continue to support the project.
Much of the discussed today is to the great extent connected with preparation of serial production and additional financial resources, supposed to be allocated from the State Budget to the Federal Program, will just be spent on it. Today we have discussed this amount - more than 8 bln rubles in addition to the Federal Program for serial production of the SSJ aircraft and the SaM146 engine before 2011, and the same amount will be allocated by the participating companies. (Currently the procedure to allocate federal money makes provision for co-financing. If any Russian company participates in the tender for financing an international project, it is obliged to contribute the amount more than or equal to the one that is contributed by the Budget).
The main thing is that in the near future the proposals that have been discussed today will have to be implemented as particular financial resources allocated to the Federal Target Program in order to launch serial production of the propulsion system for SSJ SaM146 by joint efforts here, in Yaroslavl Region.
 
Vladimir Klimenko, the State Duma Traffic Committee Chairman First Deputy, expressed mutual sincere admiration of NPO Saturn achievements:
We gratefully accepted the invitation of the Region leaders and NPO Saturn top management to visit the company and see what has been done during the recent years to create and bring up in the air the first really unique aircraft - Sukhoi SuperJet100. On behalf of the delegation members I must say that we are really impressed with the level of production, service and design approach, which we have seen. In fact it is a great achievement of the personnel, as everything has been done during very hard years. Certainly, it is an extremely important project, as well as the company operation on the whole is particularly important for the State.
We discussed not only the achievements. As for the achievements, we applauded them. But we also speak about the existing problems to be solved in order to launch serial production and be on time to take the niche at the international market. We supported the idea of making this process more dynamic and we will do our best to help in solving these problems by law. During the meeting we also discussed rather specific problems, which we, being the members of the legislative body, can and must solve. Their solution depends on support from budgetary funds and decision to create mechanisms of partnership between the State and private sector. We only start this process so far, and we still have many problems to be solved. We need to balance the interests of the State and private company so as not to be stuck in bureaucratic procedures, and to propose the mechanism of quick solution of the problems to launch serial production more dynamically. Therefore, we will have many things to do when we are back in Moscow to help the company solve these problems.
On the whole, we are delighted at the processes that have taken place at NPO Saturn lately. It is necessary to support and help such breakthrough projects.
 
Anatoly Lisitsyn, Chairman of the Air Transport Sub-Committee of the State Duma Traffic Committee remarked:
When I occupied the position of the Governor of Yaroslavl Region, I could see what took place at NPO Saturn, thus the SuperJet project in particular was under my inspection and draw much of my attention. When I started working in the State Duma and when the first aircraft was brought up in the air, the project became feasible and the problem to launch serial production of the aircraft arose. I am familiar with problems of the Russian aviation market: lack of specialists, lack of technically sound projects, lack of qualified personnel, floorspace, technologies, quality. All that creates additional problems that obstruct implementation of the project in due time.
Today this project is not only technical and industrial. It gains in political importance, because now Japanese and Chinese companies become active competitors of this aircraft. In 2010, they plan to produce a similar regional aircraft. In order to be able to produce 60 aircraft per year, we need to make more efforts than these companies. That is why today it is necessary to have advance financing and control from the State. At one of the State Duma Committees, the Traffic Committee, I made a proposal to compose a delegation of members of the relevant Committees: the Budget Committee and the Committee on Industry, come to NPO Saturn, organize a business meeting here, get acquainted with all problems of Rybinsk and Komsomolsk-on-Amur, where the aircraft is manufactured, and take measures to address the Government in order to realize the project when due, and thus by 2010 to be able to compete with Japanese and Chinese companies.
I suggested that the project should be taken under control by the Supreme Council of the United Russia Party. This decision will be taken after the trip to Rybinsk at the next sitting of the Traffic Committee in the State Duma of the Russian Federation.
And on the part of the State Duma we will promote this project, get it to be controlled by the United Russia Party, because the project becomes highly important from the political point of view. It is a breakthrough project in the sphere of aviation and related production branches.
What is the guests reaction? I understood that they would be surprised, because this region is a province from the point of view of the Muscovites, but has production capacities with the up-to-date approach. Now the Russian industry problems are very pressing, because currently wages and salary leave labor productivity far behind. Today labor productivity is a scourge of our industry. Today those who have not managed to renovate production to European standards for the last 15 years will merely perish. Hence, this is the main task.
Everybody is surprised at and impressed with what have been done here, how advanced and perfect the aircraft engine building is in Rybinsk.
 
 Sergei Shtogrin, Deputy Chairman of the Russian Federation State Duma Budget and Tax Committee:
During the trip I was mainly interested how our federal money was spent and used. In contrast to road-building companies, which used about 70% of the allocated money last year, NPO Saturn uses it with high efficiency. I myself made sure of that, these are exactly the projects to invest budget money in. Later the money is not only well-spent, it also has cumulative effect, leading the way for other branches and other companies, creating a wide tax base and bringing income to the budget of Yaroslavl Region.
We have been confronted with a whole number of questions, concerning the competence of the Budget Committee. Having formulated certain ideas, we need to move further, to make the result of our visit useful for Russian companies. The questions you raise can also be related to other companies and organizations, which try to develop the countrys economy and their own production, but cannot make the State Duma or the Ministry of Finance pay attention to them. The solutions of the questions will help not only NPO Saturn, but other companies as well.
 
 Yuri Lastochkin, NPO Saturn General Director said:
The present day is very important for us. The Senators and the State Duma deputies could see how we spend the money, appropriated from the budget by the State for the SSJ project with the SaM146 engines. The budget is approved by the chambers of the Legislative Assembly, and we showed what is done.
We consider this project to be innovation, when the aircraft and engine are created to the best world techniques. Certainly, the project is not simple, it requires a great quantity of resources - technological, personnel, financial. The project is financed by the states from the budget of the French Republic and the budget of the Russian Federation, and by the participating companies - French Snecma and Russian NPO Saturn. This project is sure to have many problems and questions connected with the Customs, with participation of Ministries and Executive Departments that supervise the project, the State Duma relevant Committees that deal with the budget.
A lot of different issues have been discussed today, and the discussion will be continued at the sitting of the State Duma Committee. We hope that our proposals and the initiatives of Sukhoi Company, our senior partner within the project, will be considered and appropriate decisions will be taken.   
Concerning the current status of the Sukhoi SuperJet100 aircraft program with the SaM146 engines, Yuri Lastochkin remarked: the project is very well controlled by the Government, and the State participation is just unprecedented. The State finances the project very well. It is very punctual when making payments in accordance with the contract terms and conditions and can be compared with the Swiss watch. 
The necessity to enhance the State participation and support of the SSJ program, according to NPO Saturn General Director opinion, is connected with the question where Russia wants to go with this project, i.e. the new aircraft and the engine.  70-75 per cent shall be exported, that is the project shall develop according to the world market laws. The world market is a highly competitive environment with all implied consequences. Entering this market, we must be well prepared to stay here and win. To manufacture such product as the new aircraft and the engine only for the domestic market with its small scope is not promising. Like all other countries, we must manufacture such products for the whole world. That is the difference between this project and others, which existed in this sphere before.
 
In the course of the visit the delegation of the parliament members and senators of the Russian Federation went to see the Rybinsk State Academy of Aviation Technology named after P.A. Solovyov  (RSAAT), where at present 7 000 students study at 7 faculties. Valery Poletaev, Rector of the Academy, acquainted the deputies with the results of program of cooperation with the engine-building company, within which NPO Saturn had already invested 100 million rubles to improve the quality of students training and technological base only during the last three years. Most of the Academy graduates traditionally start working with NPO Saturn, that is why the whole educational program shall meet high qualification requirements of the company, implementing advanced programs to create up-to-date gas-turbine engines.
 
For reference
The SaM146 program built upon the principles of strategic partnership between Russian NPO Saturn and French Snecma (Snecma, SAFRAN Group) is one of the most remarkable examples of cooperation between Russian and European industry.
The SaM146 engine was chosen to be installed on the Sukhoi SuperJet100 regional aircraft by Sukhoi Civil Aircraft Company in April 2003. The SaM146 is the only integrated propulsion system specially developed to be used on new generation regional aircraft.
The SaM146 engine has the most up-to-date design developed on the basis of previous programs experience and competitive products analysis to achieve desired reliability and economic parameters. The distinguished features of the SaM146 engine are high reliability level, low maintenance cost, low fuel consumption, and also entire conformity to the ICAO current and advanced emission requirements.
In 2004, in order to support the SaM146 program management, including development, manufacture, marketing and sales, and also after-sales customer servicing, NPO Saturn and Snecma set up PowerJet Joint Venture Company. 
Certification of the propulsion system and aircraft will be carried out to the Russian, European and American aviation regulations that will allow using the Sukhoi SuperJet100 aircraft without restrictions in all countries.
 
NPO SATURN is a leading aircraft building company specializing in development, manufacture and after-sales servicing of gas-turbine engines for military and civil aviation, Navy ships, power generating and gas-pumping units.
 
NPO Saturn Press Office:
Tel: (495) 787-14-63, E-mail: press@npo-saturn.ru



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