Julian Moxon/PARIS
Snecma has taken a further step towards opening up to outside investors by reorganising into two major divisions under a new holding company.
The company says the move is aimed at creating a "more flexible structure for development of the group through alliances with national or European industries". Snecma is still 97% owned by the French Government, but Snecma president Jean-Paul Béchat recently made it clear that he is "examining the possibilities for opening up the capital" of the company.
The government has yet to support such an idea publicly, however. Defence minister Alain Richard said recently that there is "no imminent plan" to privatise the company. One industry source says that, while Snecma's powerplant commitments to the French military preclude any major sell-off of the propulsion business, there is "nothing to prevent Snecma accepting minority shareholdings from other actors in the business".
The new group will comprise a holding company over two major groups, Snecma Moteurs and Snecma Equipements. The former will include Snecma's main engine activities, its 50% stake in CFM International, Belgium's Techspace Aero, the Snecma Services maintenance operation and rocket engine manufacturer SEP.
The equipment division will bring together Messier-Dowty (landing gear), Messier-Bugatti (brakes), Messier Services, Hispano-Suiza (thrust reversers, transmissions) and Hispano-Suiza Aerostructures. Under Béchat, Snecma has undergone major restructuring, creating in 1997 three major divisions - propulsion, equipment and services - merging Carbone Industries with Messier-Bugatti and SEP with Snecma. Hispano-Suiza Aerostructures was created and the half-share in Messier-Dowty, formerly held by the UK's TI, was bought.
Last year, Snecma Group sales grew 22% to Fr28.1 billion ($4.8 billion), mainly reflecting strong demand for CFM56 engines.
Source: Flight International
