KATE SARSFIELD / LONDON
Nearly a year after it took over the aerostructures and light maintenance business of bankrupt Reims Aviation, the newly created Reims Aerospace is driving through a host of major changes to help it compete in an increasingly volatile market.
The birth of Reims Aerospace followed an order by a French commercial court in January to break Reims Aviation into two. The F406 special mission aircraft manufacturing activities were sold to French financial group Green Recovery. The company operates under the Reims Aerospace Industries banner.
Ernst Lemberger, co-owner of Reims Aerospace's Austrian parent Ventana, and president of the medium-sized aerostructures company, which undertakes subcontract work for Airbus, Bombardier, Dassault Aviation, Embraer and EADS Socata, says the company has reached the bottom of a long economic cycle that has culminated in dwindling contracts and plunging profits.
Dassault last year accounted for half of Reims Aerospace's subassembly work, falling to only a third this year, because of dwindling demand for business jets. The weak US dollar has also pounded the fortunes of the Reims, Prunay-based company. "As half of our turnover is paid in dollars this will be responsible for a 17% drop in turnover this year, which is expected to be around €13 million [$15 million]," says Lemberger.
Lemberger remains sanguine, however, and says Ventana will build Reims Aerospace into a leading European supplier of aerostructures with sales well in excess of €50 million within three years.
To achieve this target Reims has begun to reorganise the company and implement lean and efficient manufacturing and working practices and expand its engineering capabilities. "Industrial reorganisation is only possible when business is slow," Lemberger admits, and Reims employees are having to adjust to a new working culture. Reims has maintained the 248 staff it inherited from the previous owner. "We want to build on the core competence of our highly skilled work force to produce airframe parts in top quality, just in time and at a very competitive cost." To do this, Lemberger says Reims employees are undergoing an intensive 18-month training programme. "We will cut out work which doesn't add value, such as putting the spare parts closer to the production line."
Secondly, Reims plans to switch from being a second tier to first tier manufacturing facility. "We want to design and engineer parts for the airframers," including Dassault and Airbus," Lemberger says. To achieve this it plans to establish an engineering and design department equipped with state-of-the-art design software.
Vienna-based Ventana's goal is to expand its aerospace portfolio and achieve annual sales of €100 million by the end of 2005 through external growth. "This money will be re-invested in our aerospace companies to improve service," says Lemberger. Ventana is eyeing ventures in France, Germany and Spain and plans to acquire a parts and airframe manufacturer in eastern Europe.
Source: Flight International
