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. Last Updated: 07/27/2016

Rolls Royce Announces Deal To Develop Engines in Russia

British car and aircraft engine-maker Rolls Royce has linked up with Russian airplane design bureau Lyulka-Saturn to develop gas turbine engines, Rolls Royce announced.

Lyulka-Saturn formed the equal-partnership joint venture to produce a new engine, the AL31ST, with applications in the oil, gas and electrical power generation markets, Rolls Royce said in a statement Tuesday.

The engine, which in the past has powered Russia's Sukhoi 27 fighter aircraft, will be marketed by the new Moscow-based Lyulka Rolls-Royce for initial sale to domestic customers such as the Russian gas industry.

"This venture will allow the industry, in particular Gazprom, to use Russian engines with Rolls-Royce technology built into them," said Bob Sunerton, managing director of Rolls-Royce Industrial & Marine Power.

Gazprom is Russia's main operator of industrial gas turbines, and "has an urgent need to replace much of its existing fleet of older engines," said Sunerton.

"The new joint venture will combine the latest contemporary developments of Rolls-Royce and Lyulka-Saturn and bring sophisticated brands to the Russian and world markets," said Victor Chepkin, president and chief executive of Lyulka-Saturn.

Rolls Royce is not new in Russia. Since the 1970s, the company has sold more than 60 industrial Avon engines in the country, many of which went to power natural gas pipelines in Siberia.