Two UK aerospace companies are increasing their focus on China in a bid to take advantage of low-cost manufacturing and gain a commercial edge in a booming civil aerospace market.
Smiths Aerospace is considering doubling its presence in Suzhou, China through facilities for manufacturing actuation equipment and electronic components for commercial aircraft including the Airbus A380 and Boeing 787.
The company already has a 13,000m2 (140,000ft2) factory at the site that manufactures engine components for GE, as well as composite and structured materials for Airbus and Boeing aircraft.
Jon White, Smiths’ regional marketing director for the Far East, says the company could make a decision on the project by mid-way through the year, with construction work beginning at the site towards the end of 2006 if it gets the go-ahead, and manufacturing work starting between a year and 18 months later.
The Suzhou site’s workforce of around 160 could grow up to 350 as work increases. “China is strategically important for us, and the support of our equipment in-country is also a priority for us. We are looking at options for increasing service provision,” White adds.
UK-based Umeco is also boosting its presence in China through its components division by setting up a component logistics and distribution operation to support Western aerospace manufacturers establishing themselves in China as well as the Chinese manufacturers hoping to supply them. The company is awaiting approval from Chinese authorities for the memorandum of understanding it signed last week.
This is expected in April, and building work at the new logistics company’s site in Xian should be completed by May, Umeco components chief executive Jason Crabtree says.
Ulogistics (Xian) Trading will have an initial workforce of 15-20, which will grow depending on the volume of work it attracts. “We are in the final planning stages of the expansion and would hope to have Ulogistics (Xian) Trading fully operational in the next six to nine months,” says Crabtree.
Umeco is expecting to be able to serve the whole of mainland China from the site in Xian, working principally with Airbus, Boeing, Goodrich and Rolls-Royce as well as Xian Aircraft and Xian Aero Engine.
HELEN MASSY-BERESFORD / LONDON
Source: Flight International
