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Wichita, Kan.-based Spirit Aerosystems (NYSE: SPR ) is cashing out of its Russian joint venture.
On Thursday, the airplane parts maker announced that, after collaborating with Russian aerospace group of companies "Progresstech" since 2007, it's time to call it quits on the joint venture. Accordingly, Spirit will sell its 50% interest in the JV to one of Progresstech's member companies. Spirit did not reveal the price at which it will sell its interest in the JV.
Money may or may not be an object of the deal. According to Spirit, though, exiting the Russian business "is part of [Spirit's] previously announced strategic review intended to better align resources across the company to meet customer demands."
From Progresstech's perspective, Spirit's decision to exit the JV gives Progresstech a chance to implement its "assets consolidation initiative," to more efficiently serve key customers such as Russia's Sukhoi Civil Aircraft and the Russian Ministry of Transport. At the same time, consolidation should strengthen the company's ability to expand its business internationally, as it continues to work with both Spirit, and airplane manufacturing giant Boeing.