Creation of a single legal entity Sukhoi will give a new impetus to the development of its productive capacity, and the Russian aerospace industry as a whole

Moscow, January 14. JSC Sukhoi Company completed all the stages of merger of three subsidiaries – JSC Sukhoi Design Bureau, JSC Y.A.Gagarin KnAAPO and JSC V.P.Chkalov NAPO and received a notice of termination as from January 1, 2013 of the listed companies as separate legal entities. The structure of a single legal entity – Sukhoi Company - now includes as affiliates – V.P.Chkalov Novosibirsk Aircraft Plant, Y.A.Gagarin Komsomolsk-on-Amur Aircraft Plant, Sukhoi Design Bureau as well as representative offices in the Republic of India, Vietnam and China.

Consolidation of business and transition to design and functional organizational management structure of a single legal entity ensures a long-term strategic development of Sukhoi Company. Creation of a single legal entity will allow formation of a complete vertically integrated company, streamlining corporate structure to increase efficiency, creation of a single decision-making center of operational activities. Centralized management of investment decisions will maximize return on investments; the quality of corporate governance will improve. The costs will reduce due to diminishing of the transaction costs between the structural units of the Company; the size of the company will optimize. The domestic production cooperation will actively develop, the efficiency of interaction with subcontractors will increase, which will favorably affect the cost of production and the timing of orders for production and delivery of aircraft. The implementation of high technology, long-term R & D in the field of military and civil aviation will be more effective.

Creation of a single Sukhoi Company will give a new global impetus to the development of not only its production capacity, but also the Russian aerospace industry as a whole. It will allow domestic military and civil aircraft to take its rightful place in the global market. The United Aircraft Corporation will receive a single performer across the range of products and services that will greatly improve the planning and implementation of the State Defense Order and civil aircraft production.