Chris Jasper/LONDON
BAE Systems is to merge its UK-and US-based aerostructures businesses to form a new division with total sales of £300 million ($440 million). The UK company has also merged its Avrotech regional jet repair arm into its Airbus equivalent as part of the new Aviation Services group - a business ultimately due to refocus on large aircraft 'special projects'.
The enlarged Aerostructures group will combine four UK sites with Precision Aerostructures of Wellington, Kansas. Based in Chadderton, Manchester, UK, it will have 3,000 staff and orders worth £1.4 billion over five years.
"The operations are being combined because they are carrying out the same work and many of their customers are the same," says BAE, which claims "significant synergy savings" from the move.
BAE admits that a year ago the future of its aerostructures business was in doubt. Its Prestwick site near Glasgow was most at risk, but was rescued by two deals - one for production of Boeing 767 leading wing edges, the other with Airbus, guaranteeing lifetime production of A320 family leading and trailing edges. The Airbus deal used to be renegotiated every few years.
Prestwick also has a contract to produce fixed leading edge sets for the Boeing 777 and one with Raytheon for corporate jet parts, and aims to "develop a design element".
Chadderton is to become a "centre of excellence for spares and repairs" for Jaguar, Tornado and Harrier combat aircraft. It also produces components for Avro regional jets and the Boeing 737 classic. A third site at Salmesbury specialises in carbon fibre composites for Airbus, while a fourth site at Brough supplies parts for Avro.
Precision Aerospace, inherited when BAE bought GEC's Marconi Electronic Systems division in 1999, works on a range of US projects. It supplies Lockheed Martin P-3C components and vertical spars and stringers to Vought Aircraft, a contractor on Boeing's C-17. On the civil side it is a designated supplier of Boeing extrusion spares and has signed as a supplier for the Cessna Sovereign.
BAE's new Aviation Services group was formed via the merger of the former group of the same name, of Filton, Bristol, with Regional Aircraft, sited at Wood-ford, Manchester, where the new group is based. The restructured business combines BAE commercial aviation activities left outside the Airbus Integrated Company.
Of its three divisions, Operations, based at Woodford, makes the Avro RJ/RJX, but has also been designated BAE's "large aircraft centre", and is key to it remaining engaged in large aircraft manufacture after Airbus' restructuring.
Woodford already assembles upgraded Nimrods, and is the base for BAE's bid with Boeing to win the UK future tanker contract with converted 767s. The two contracts are key to Woodford's future, BAE says: "The recognition is there that the RJ is a mature programme, and we are looking to the future with a large aircraft capability."
The new group's aviation services division will merge a Filton operation offering repairs to Airbus aircraft and Boeing 757s with Woodford-based RJ repair specialist Avrotech, which loses its name. The regional aircraft in-service support and asset management business will still market used aircraft.
Source: Flight International
