Aerospace equipment manufacturer Smiths could consider further expansion into China, as well as look at eastern Europe and India, says aerospace president John Ferrie.
The company is looking at expanding its Suzhou manufacturing facility in Jiang Su, China. “We’ve doubled our facility in China and we’re contemplating doubling it again,” Ferrie says. “We’re going to move on to composite components, more sophisticated aircraft structures, more sophisticated machining and actuation assemblies.”
“If we’re going to expand, it’s unlikely that expansion would be in the UK,” Ferrie says, adding that “the USA is the biggest aerospace market in the world, but there is tremendous cost downpressure causing us to look at where we have our facilities”.
China, Eastern Europe and India “have the capability to do the things we want to do and could have a significant cost advantage”, he says.
Ferrie does not foresee problems with its US business because of Smiths’ increasing presence in the country, particularly as it is currently manufacturing products in China for export. “As long as we observe the rules it’s manageable,” he says.
The company announced new US orders at the show: it will supply $4 million worth of new- generation cockpit voice and data recorders to the US Army this year. It has also received a $5 million contract from the army to install and demonstrate a health and usage monitoring system (HUMS) on Sikorsky UH-60L Black Hawk helicopters.
Elsewhere Safran subsidiary Aircelle has chosen Smiths to provide the thrust reverser actuation system for the SaM-146 engine on the Russian Regional Jet (RRJ). Smiths says potential sales could exceed $35 million over the life of the programme.
Smiths has also been selected to provide the stores management system for Japan’s P-X maritime patrol aircraft.
The contract will be worth over $40 million for the 80 P-X aircraft that will replace the Japanese fleet of P-3s. Production is due to begin in 2008.
Source: Flight International
