Boeing has finalised a contract with China's Chengdu Aircraft Industrial (CAC) for the production of 787 rudders, while Korea Aerospace Industries (KAI) has been tapped to build the new twinjet's fixed trailing edge.
In June last year Boeing signed a memorandum of understanding (MoU) with China Aviation Industries (AVIC) I and II covering the rudder and other to-be-determined 787 components. Industry sources say negotiations with AVIC I subsidiary CAC have been completed and a contract will be signed on 8 March.
AVIC II subsidiary Hafei Aviation Industries (HAIC) is also in line to receive workshare as part of last year's MoU. Industry sources say Hafei is bidding for three work packages covering cowlings, ducts and fairings and will be awarded at least one of these by year-end.
Meanwhile, KAI has signed an agreement to supply 787 fixed trailing edges. But unlike the Chinese deals – which were negotiated directly with Boeing – the KAI contract is under first-tier supplier Japan Aircraft Development. Korean Air (KAL) Aerospace is also bidding for several 787 subsupplier contracts.
Sources say Vietnam is the fourth Asian country in line to receive 787 work. Government-owned companies in Vietnam will likely initially be contracted to build non-structural items such as interiors, but over the long-term Boeing is interested in also using Vietnamese composite shops.
Malaysia's Asian Composite Manufacturing (ACM) and Taiwan's Aerospace Industrial Development Corporation (AIDC) are additional possible suppliers for the 787. But ACM is instead now focusing on meeting a new contract for 737 ailerons, previously supplied by Boeing's Australian company Hawker de Havilland.
Both Airbus and Boeing are trying to increase their use of Asian, especially Chinese, manufacturers as part of an effort to reduce production costs and convince the region's government-owned carriers to order new aircraft. Sources say Airbus and AVIC I are now discussing a 5% risk-sharing stake in the new A350 while AVIC II subsidiaries HAIC and Hongdu Aviation Industry are bidding for A320 components.
HAIC and Hongdu do not manufacture any commercial aircraft components, but parent AVIC II is looking to diversify from its traditional defence and general aviation businesses. CAC and two other AVIC I subsidiaries, Shenyang Aircraft (SAC) and Xian Aircraft (XAC), are already suppliers for both Airbus and Boeing. SAC and XAC may still receive a part of the 787 as part of a subcontract from JADC and expect to be the main beneficiaries of the anticipated AVIC I A350 deal.
BRENDAN SOBIE SINGAPORE
Source: Flight International
