First, let's dot the i's and cross the t's: such statements should be considered in the context of the ongoing work on “import substitution”. Among other things, it aims to bring the “superjet” out of the scope of US legislation to restrict the export of sensitive technologies to countries that the US considers to be its adversaries. Then it will open up the possibility of shipping commodity samples to those states where the aircraft in its current form (with a large number of American components and technologies) cannot be sold because of Washington’s position. In addition, a decrease in the number of American components is necessary in the event of a tightening of the regime of economic sanctions against Russia itself and its military-industrial complex.
Last spring, Sukhoi Civil Aircraft CJSC (SCAC) announced the creation of the SSJ100R option for Iranian airlines with a share of US components in the total cost of the aircraft below 10%, which removes it from the scope of the EAR600 document. According to him, the White House requires all local and foreign aircraft manufacturers that produce finished products with a share of US components of more than 10% to obtain special permission to export them to “rogue countries”. The relevant licenses are issued by the Office of Foreign Assets Control (OFAC).
Meanwhile, according to the estimates of the European participants in the SSJ100 project, their contribution to the complete set of the final product is “more than sixty percent”. This figure in the spring of last year was confirmed by representatives of the SCAC. The implementation of the SSJ100R project is not possible without large state investments, primarily in the area of localisation of component production. And the treasury, as you know, is not rubber. So the officials responsible in the government for the aviation industry have to look for arguments “for” the allocation of the corresponding budget allocations.
First, let's dot the i's and cross the t's: such statements should be considered in the context of the ongoing work on “import substitution”. Among other things, it aims to bring the “superjet” out of the scope of US legislation to restrict the export of sensitive technologies to countries that the US considers to be its adversaries. Then it will open up the possibility of shipping commodity samples to those states where the aircraft in its current form (with a large number of American components and technologies) cannot be sold because of Washington’s position. In addition, a decrease in the number of American components is necessary in the event of a tightening of the regime of economic sanctions against Russia itself and its military-industrial complex.
Last spring, Sukhoi Civil Aircraft CJSC (SCAC) announced the creation of the SSJ100R option for Iranian airlines with a share of US components in the total cost of the aircraft below 10%, which removes it from the scope of the EAR600 document. According to him, the White House requires all local and foreign aircraft manufacturers that produce finished products with a share of US components of more than 10% to obtain special permission to export them to “rogue countries”. The relevant licenses are issued by the Office of Foreign Assets Control (OFAC).
Meanwhile, according to the estimates of the European participants in the SSJ100 project, their contribution to the complete set of the final product is “more than sixty percent”. This figure in the spring of last year was confirmed by representatives of the SCAC. The implementation of the SSJ100R project is not possible without large state investments, primarily in the area of localisation of component production. And the treasury, as you know, is not rubber. So the officials responsible in the government for the aviation industry have to look for arguments “for” the allocation of the corresponding budget allocations.
Domestic power plant
If we consider the issues of developing new versions of the “superjet” in the context of the policy of “import substitution”, and taking into account the prospect of toughening American sanctions, it begs the decision to equip them with a power plant of domestic origin. As you know, today the serial SSJ100 are equipped with SaM.146 engines. They are produced jointly by PowerJet, established by UEC-Saturn (from UEC) and the French Safran. But the trouble is: there are no engines of suitable dimension in the current product line of the United Engine Corporation. Perm engine manufacturers have long been proposing the development of the PD-10 with increased (up to 9-10 tons) traction for installation on the extended SSJ130 and PD-7 as a direct replacement for the existing SaM.146 on the base SSJ100. The issue rests on financing: industry does not have enough funds, and the state is in no hurry to allocate them.
The need for finance can be reduced by using an advanced “cold part” of the SaM.146 engine (compressor and low-pressure turbine) developed in the framework of Russian-French cooperation by fish engineers in a promising engine (hypothetical PD-8 in the 8-thrust class). As you know, the “hot part” of this engine is a (modified) gas generator DEM.21, created at the end of the last century by Snecma specialists. Russia can independently develop its replacement on the basis of technologies obtained during the implementation of the PD-14 project (a domestic engine for the promising long-range airliner MC-21). An alternative way is to increase, by agreement with French partners, the Russian share in the production of DEM.21 with the aim of reducing the cost of the latter, as well as replacing American parts and US-patented technologies with domestic ones.
Here, as they say, the “most interesting” begins. Statements and ambitions are one thing, real scientific, technical and production capabilities are another. To develop components for engines that would not be inferior to the American in technological level, but would be cheaper in mass production is an arduous task. For decades, the United States has invested heavily in the development of promising technologies and the creation of high-performance industries. Across the ocean, the achievements of the defence industry are actively used (without forgetting, at the same time, to ensure their protection against unauthorised copying) to increase the competitiveness of the civilian sector of the national economy.
Equal partnership
The SaM.146 program so far remains the only example of equal partnership between Russia and the West in the development and production of an aircraft engine for civil aviation. At the same time, for several years the parties have been negotiating to increase the level of engine localisation in the Russian Federation, at the first stage - up to 55%, the second - up to 80%. Since 2017, French partners have repeatedly stated their readiness to increase the Russian share in the “hot part” by organising advanced foundry production in our country. PowerJet President Mark Sorel told reporters at the La Bourget salon in 2017: "We have already begun to look for partners in Russia who would supply us with additional engine components."
Sources in the domestic aviation industry assure: the French manufacturer is ready to cooperate with Moscow to create a competitive alternative to the structural components of aircraft engines that are difficult to manufacture in order to break the monopoly of individual suppliers from the United States. If the domestic industry copes with the task, Safran promises to place large orders here for the supply of appropriate components, not only for SaM.146. In particular, we are talking about the latest engine for long-haul airliners - LEAP-1, which is selected for installation on the Airbus A320neo, Boeing 737MAX and COMAC C-919.
In relation to SaM.146, the topic was actively discussed during last year’s negotiations between the SCAC, UEC and Safran on ways to increase the rate of production of this type of engine. This, in particular, was described at the New Year's meeting with reporters by the then head of the GSS, Alexander Rubtsov. A strong motive for the negotiators was the radically changed situation regarding the prospects of deliveries of SSJ100 to Persian airlines. It arose in the light of Donald Trump’s decision to unilaterally withdraw from the “nuclear deal” with Tehran and impose serious restrictions on trade with the Islamic Republic. Including, a complete ban was imposed on the supply to this country of any aviation equipment, including European, provided that it uses American technology and components.
Moscow and its key European Superjet 100 partners have consulted on how to move it beyond the scope of US law. They were united by a desire to find ways to offer Persian aviators a decent batch of Russian-made aircraft. Since then, the severity of the problem of finding "alternative suppliers" under the SAM.146 program has only intensified.
Especially - after a series of breakdowns of serial engines in operation with Russian airlines. In fact, the service life of the motors turned out to be shorter than the declared PowerJet, since some elements of the hot part of the outage were premature. The operating organisations were advised to set up a schedule of inspections of the motors located on the wing in order to find out which of them required urgent repair in the factory. Soon, however, it became clear to the organisers of this action: the industry was not in a position to promptly accept the order and fulfil it due to the insufficient capacity of the maintenance and repair centres and the lack of necessary spare parts. Then the SCAC and the UEC decided to form a pool of replacement engines in order to maintain high availability and raids on the active fleet of aircraft of the SSJ100 family by reducing the rate of supply of new aircraft from the plant. The shortage of engines led to the fact that about twenty newly assembled and thoroughly repaired aircraft were idle on the ground in anticipation of their turn to complete with power plants.
Low pace
Despite the efforts made, PowerJet has so far not been able to increase the annual release rate of the new SaM.146 over sixty units, mainly due to the shortage of individual US components. As you know, PCC Structurals, TECT Corp., Chromalloy, Carpenter, Cannon Muskegon and Hayes International are the key US suppliers of the program.
Based in Portland, Oregon, PCC Structurals calls itself “the world leader in foundry products for aluminum, titanium and composite alloys (superalloy).” In particular, she has mastered advanced investment casting methods. The position of this company in the global market strengthened after its acquisition in 2015 by the well-known American investor and entrepreneur Warren Buffett, operating through Precision Castparts Corp PCP.N. A situation arose in which PCC Structurals actually took a monopoly position in the world in the market for the supply of complex titanium parts. That is, taking advantage of its position, the company not only sets high prices for its products, but also has the ability to influence the production of aircraft engines both globally and by individual manufacturers.
With the help of serious financial injections from Buffett, American scientists and engineers managed to develop and introduce advanced casting methods, so far inaccessible to other world manufacturers. Thanks to them, PCC Structurals, in particular, won the tender for the supply of the so-called "intermediate engine support" SaM.146 and to this day remains its sole supplier.
Although President Trump’s administration and the US Congress have imposed numerous sanctions on the Russian military-industrial complex, they have not yet touched on the supply of components for SAM.146. Accordingly, the topic of the shortage of this product does not lie on the political plane, but purely commercial. The manufacturer agrees to increase the production of required parts only on condition of a large guaranteed order with prepayment, as long as its implementation is fraught with the need for large investments in expanding existing capacities. However, the pace of SAM.146 release, both current and future, is too slow to satisfy PCC Structurals ambitions. For its part, PowerJet and GSS are not able to ensure the implementation of final products at a level comparable to the volumes of LEAP-1 and other products.
Realistic scenario
A series of consultations between Powerjet, its co-founder Safran, and Moscow showed that the only realistic scenario is to involve Russian scientists and practitioners who have accumulated vast experience in the field of materials science. The aim of their work will be the creation of technically advanced industries for the production of complex products from titanium and other advanced structural materials. Production will be set up at the leading enterprises of the military-industrial complex, capable of fulfilling the task of achieving parity with the United States in this area of technology.
Note that the defence industry is the pride of our country. Currently, his key enterprises carry out large volumes of work on state defence orders and military-technical cooperation lines with foreign countries. Therefore, it is difficult for them to meet civilian customers, such as PowerJet and SCAC. This will require permission from the very top.
Sources we interviewed who are directly familiar with the situation claim that the French negotiators repeatedly raised the topic at meetings with Russian partners. For their part, they promise support through placing orders for Russian products, provided it is of high quality and good price performance. At the same time, Moscow should bear the initial costs of R&D and production. If domestic factories will master the production of parts of complex shape from titanium and other advanced structural materials, the French are ready to buy them in large quantities, not only through PowerJet, but also CFM International.
It is known that in the UEC system the main enterprise on this topic is the Ufa MPO. Noting the merits of this enterprise, the experts interviewed by us, however, doubt that it can cope alone, especially given the need to attract large financial investments. At the same time, experts note the high scientific potential of Russia and the presence of powerful specialised scientific centres in this area: TsIAM and VIAM.
Due to the high complexity of the task, its solution can be found by involving a number of industrial enterprises historically specialising in naval issues. Do not forget that a number of critical technologies accumulated by the shipbuilding industry are classified as secrecy, and their use in the interests of civilian programs requires appropriate decisions at the level of the country's top political leadership. Recall that in 1970, domestic shipbuilders handed over to the fleet a submarine K-222 of project 661, which received the nickname "Golden Fish" for the enormous cost of development and production. Since then, the Russian Navy has received dozens of submarines, as well as subversive submarines and research deep-sea vehicles, with titanium hulls. But the technology for their manufacture is still unavailable for commercial use.
Strategic partnership
Since the late nineties, some domestic enterprises have been manufacturing components for foreign engines, mainly the CFM.56 family. However, next year this model is finally discontinued. We turned to the Safran press service with a request to clarify its readiness to engage domestic plants in other projects, in particular LEAP. We were told that Volgaero and VSMPO were already involved in the global production system of this engine family.
Further, the response says: “We continue to look for ways for Russian industry to expand its participation in our global supply chain, not only within the SaM.146 production, but also through other programs, including the CFM56 and LEAP motors. A long-term partnership is developing with UEC's key company, Saturn, which began producing components for CFM.56 at the end of the last century. The next example is the growing business of Volgaero, a joint venture with equal shares of the parties. We are ready to increase the number of Russian suppliers, provided that they meet all the requirements for the technical level, production capacity and competitiveness.”
At the same time, French partners note the stability of SaM.146 production over the last couple of years and express a desire to maintain a high level of relations with SCAC and airlines operating Superjet aircraft, including full satisfaction of engine supply requests for both newly assembled aircraft and those located in operation. To this end, regular meetings are held with the leadership of the SCAC and the Ministry of Industry and Trade of the Russian Federation, at which the needs for commercial products are discussed. “We constantly reaffirm our desire to adapt previously drawn up production plans to changing solvent demand,” Safran emphasises.
The French side did not give us a direct answer to the question whether PCC Structurals, Precision Castparts Corp. and other American suppliers from the Buffett Empire by any preferences in the supply of components for SAM.146 and LEAP. At the same time, however, the Safran press service notes: “Today, the stressful state of the global supply chain is clearly observed in terms of meeting the needs for complex forged and molded products, which is reflected in the position of stakeholders involved in the production of aerospace technology. “We are considering various options for integrating into our supplier chain an additional number of companies that meet the technical, manufacturing and price requirements.”
"Road map"
When asked if the French side is ready to consider Russian products as a possible alternative to American components, a positive answer is also given: “The state-owned corporation Rostec is Safran's strategic partner in Russia. A road map has been agreed between us for the further development of the partnership. In particular, a list has been compiled of the components we need with prioritisation and certification requirements for new partners in Russia have been identified.” Further, Safran confirms the high appreciation of Russian industry and its capabilities, as well as the lack of doubts among French partners in the ability and desire of Russian enterprises to “fully comply with the requirements, including production, technological and certification.
To a request to confirm or deny the existence of a common “road map” with Safran, the Russian partner gave the following answer: “A program to expand the business related to the machining of titanium products is operating at Rostec enterprises. The program provides for both expanding the range of manufactured products, including complex and round products for engine building, and deepening the machining itself, right up to the finishing, for some types of products.”
Despite the difficult geopolitical situation, Rostec considers it possible to develop cooperation with Western manufacturers of aircraft and power plants in the supply of Russian parts with high added value made of titanium and other structural materials used in aircraft construction. “Moreover, foreign partners regularly hold consultations on the possibilities of developing cooperative ties with Russian enterprises,” the representative of the state corporation notes, “UEC enterprises are currently working on mastering the technology for manufacturing parts of complex shapes from titanium alloys for gas turbine engines. After completion of development, UEC is ready to participate in international cooperation projects as a supplier of parts and assemblies manufactured using this technology.”
At the same time, the commercial use of new structural materials with high properties, created as part of the development of military products, stumbles upon the well-known conservatism of large Western aircraft manufacturers. It is noted that Rolls Royce, General Electric, Boeing and Airbus "prefer to work with alloys already tested by time, the properties and characteristics of which are well studied." At the same time, with a significant increase in characteristics, some Western partners express their willingness to take risks.“From the point of view of potential, in the framework of international commercial projects in the engine industry, heat-resistant nickel-based alloys are of more interest, the All-Russian Institute of Light Alloys (VILS), a subsidiary of the State Corporation Rostec, is actively researching and developing it. Promising alloys developed by VILS have significant potential for commercialization, both in Russian and in international projects,” concluded the source.
