Zvezda invests in engine production

The range, jointly developed with Austrian company AVL, will offer power outputs ranging from 400kW to 1,700kW. Production is anticipated to begin in the third quarter of 2015, with 1,000-1,800 units to be built each year initially.

The engines, to be marketed under the Zvezda Pulsar brand, will be sold in both Russian and foreign markets, and will allow Russia to reduce its reliance on imported engines. The latter point is crucial since the Ukrainian government ceased shipbuilding cooperation with Russia as a result of the Crimea crisis.

The initiative is part of Russian government plans to increase the share of domestic diesel engines used by Russian companies to 70% by 2020, a spokesman for the Ministry of Trade and Industry said.

Other manufacturers are also set to establish diesel engine production in Russia, the spokesman said. Among them are NPO Saturn, NGO Aurora and Kolomensky Zavod.

The Russian government is also encouraging manufacturers to increase the production of other equipment, including steerable propellers, thrusters, anchor-mooring equipment, crane equipment, as well as ventilation and air conditioning units.