Umeco forecasts 787 boost to turnover
RESULTS UK-based distribution and logistics specialist Umeco is forecasting growing turnover when the Boeing 787 enters production. The company saw its revenue increase by 19% to £158 million ($300 million) in the first six months of 2006 (see graph). Chief executive Clive Snowdon says: "With the markets in which we operate remaining buoyant, our future prospects remain encouraging." The company's entry strategy for the Chinese market is progressing, he adds, and it is also still on the look-out for bolt-on acquisitions.
Spirit hopes to raise $229 million from IPO
OFFERING Spirit Aerosystems expects to raise about $229 million from a planned initial public offering (IPO) that will see the company created by the purchase of Boeing Wichita issue 10.4 million of its own voting stock shares and a further 41.7 million issued by its stockholders. The funds, which assume a flotation price of $24 a share, will be used to pay about $100 million of debt and around $129 million in pension fund obligation enacted by the IPO. Parent company Onex will still own about 58.3% of Spirit's common stock and hold 92.1% of the company's voting power after the issue. The underwriters, led by Credit Suisse Securities, Goldman Sachs, and Morgan Stanley, can exercise up to an additional 7.8 million shares.
Volvo Aero boosts US capacity
EXPANSION Volvo Aero is expecting to complete expansion work at its Aero-Craft plant in Connecticut, USA in mid-2007. The company began the project last month and is adding 2,500m2 (27,000ft2) to the premises, taking the total floor space to 3,440m2. Volvo's $15.3 million investment in the plant is being partly financed through support from the state of Connecticut and town of Newington. The company expects to add 40 employees to its workforce of 52. The plant expansion forms part of the company's plans to produce fan cases for the General Electric GE90. There are also plans to manufacture fan cases for the GEnx and Rolls-Royce Trent 900 and 1000.
Quest embarks on aerospace venture
MANUFACTURING Bangalore-based engineering services specialist Quest is expanding into aerospace manufacturing with the creation of a new subsidiary, Quest Machining and Manufacturing, which has signed a 10-year strategic agreement with Magellan Aerospace to provide components including landing gear parts for the Boeing 747, 777 and 787 programmes. The company is investing $25 million in setting up infrastructure and machinery over the next three years.
IAI completes purchase of Tiltan share
ACQUISITION Israel Aircraft Industries (IAI) has completed the $6 million purchase of 30% of the share capital of Matrix subsidiary Tiltan following approval by both companies' boards and Israeli antitrust authorities. IAI also gains the option to increase its holding in the military simulation specialist by a further 5% for $1.54 million more. The two companies will work together on joint product development programmes. IAI chief executive Itzhak Nissan, says the move "aims at complementing IAI's existing knowledge base and enabling the expansion of its simulation and command and control offering for military/security applications".
Source: Flight International
