China on purchase of Ukraine’s Motor Sich defense plant: We’ve snatched ‘pearl of engine building’ away from US and Russia

An article has appeared in the Chinese press which claims that the companies Tianjiao Aviation Industry Investment Co (Skyrizon Aircraft) and Xinwei Group (both Chinese) will be acquiring a controlling package of shares in the Ukrainian engine manufacturer Motor Sich.

The deal will involve a package of shares worth around $250 million, the amount that the Chinese firms will “invest” in the factory over the next two years.

Initially Ukraine did not comment on such statements published in the Chinese press. However, the Ukrainian state-owned defense conglomerate UkrOboronProm has now confirmed the sale of more than 50% of Motor Sich’s shares to the Chinese. UkrOboronProm director Aivaras Abromavicius said that the deal has been authorized by the Ukrainian Anti-Monopoly Committee.

Previously the US offered to buy Motor Sich. However, at the time, Ukraine was already negotiating a deal with China, which the US tried to prevent. Russia also laid claim to Motor Sich.

China is now happy to point out that the deal has gone through, adding: “We have managed to snap up from the US and Russia a real pearl of Ukraine’s aircraft engine building”.

China can now significantly speed up work to create an engine for the U-20 transport airplane, a plane which made its first flight in 2013 and is meant to be fitted with four WS-18 engines. China also intends to create a new helicopter engine for its army helicopter fleet.

  Motor Sich, China, Russia