Composite Technology Research Malaysia (CTRM) has opted against bidding for 7E7 work to keep up with increasing demand from primary customer Airbus, writes Brendan Sobie.
The government-owned company, which supplies wing panels for A320s and A380s, is leaving open the possibility of working with Boeing in the future, but says for the next two years it must focus on completing the work it is already contracted to supply.
"We were thinking of submitting proposals [for the 7E7], but are putting that on hold," says chief executive Rosdi Mahmud.
Industry sources say problems encountered in keeping up with this year's increase in A320 production to one shipset a day, plus funding issues and capacity constraints, factored into CTRM's decision to not bid for 7E7 work.
A320 work is already driving an expected 240% increase in revenues this year from 40 million ringgit ($11 million) to 136 million ringgit.
Rosdi says another step-up in A320 production plus the start of high-rate A380 and A400M production is projected to drive another 93% spike in revenues next year to 262 million ringgit.
CTRM projects a long-term annual revenue stream of 300 million ringgit. To prepare for next year's production increase, CTRM will move into an additional 9,290m2 (100,000ft2) factory at its Malacca headquarters next May. The current business is housed in a single 20,400m2 facility.
Industry sources still expect Malaysia's Asian Composites Manufacturing (ACM), which is partly owned by Boeing and Hexcel, to win 7E7 subcontract work. Sourcing a piece of the 7E7 in Malaysia could help Boeing persuade Malaysia Airlines to order the aircraft.
Source: Flight International
