Tbilisi Aircraft Factory Looks for Private Management

One of the most successful and profitable Georgian enterprises the TbilAviaMsheni (TAM) is announcing a tender on transferring its management to a private company. TAM is the only Georgian company to have ISO 9001 Quality Management Certificate, recognizing the high quality of its production.

The company is producing four modifications of the Su 25 battle support aircraft. The most modern modification is Su 25 “Scorpio”, designed in cooperation with Israeli Elbit Systems company.

TbilAviaMsheni is the only company, which operates full assembly line of the Su 25 aircraft, owning a complete package of the blueprints of the aircraft. At the moment along with the military jets, the company also produces small-size hydro power stations and heating equipment.

Conditions of the tender to be announced in March have been already drafted. The winner, will receive the company for management for 10 years, should sustain the primary profile of the company, while doubling number of the employees and their salaries and increasing production by at least 40% in total and by 20% in the first five years.

Currently the company has initial capital of up to USD 25.2 million and is 100% state owned.

“Our strategy is orientation towards Western partners and therefore we must announce the tender, since foreign companies hesitate to cooperate with the state-owned enterprise,” Tordia said.

At the moment the company holds talks regarding the production of an American “Maverick” personal jet aircraft. The process will end in May. The company’s management believes that announcement of tender would promote successful talks and TbilAviaMsheni will start production of Maverick aircraft as well.

Vazha Tordia, Chairman of the Supervising Board of the company said that announcement of the tender does not mean that the company will be privatized.

“It is shown clearly in the tender requirements that we are looking for partner and not for the owner,” Tordia told Civil Georgia.

Any company, which has at least 15 years experience of designing or producing aircraft, including Su-25, may participate in the tender.  Vazha Tordia said that only TbilAviaMsheni and several Russian companies have such experience, however he does not expect any Russian company to show interest to this tender.

“Russians are not so eager to cooperate with us, since they have their own problems in the same field,” Tordia said.

It has been revealed that current management of the company will participate in the tender too. Tordia said that this is very normal and acceptable for TbilAviaMsheni.

“Announcing a tender does not necessarily mean that the company must be transferred to a foreign entity. It is quite likely that winner of the tender would be a Georgian company,” Tordia said.

Deadline of submission of applications for the tender is March 17. The tender will be conducted by the Ministry of State Property Management.

By Tea Gularidze, Civil Georgia