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Saab aerospace will increase sourcing from India
Swedish aerospace and defence company Saab said it would grow its sourcing business in India, and it had become necessary to do so.
Kjell Johnsson, head of Saab Aerostructures, said India was an emerging market for Airbus and Boeing and companies like Saab, which are tier-1 suppliers to these aircraft majors, had to support them with establishments here.
For Airbus and Boeing, the order backlogs are mostly in this region (Asia, Middle East), but only 7% of their supply chain is here, he said.
Johnsson was in Belgaum on Thursday for the launch of a new facility dedicated to the manufacture and supply of aerostructure assemblies for the commercial aerospace market. The facility, which is a joint venture with Bangalore-based Quest Global Manufacturing and which is located in Quest Globals 300-acre SEZ here, has started production of two components of the Airbus 380′s wing the D-nose assembly, a part that lends rigidity to the wing, and one of the skin panels (the outer covering ). The joint venture has committed $10 million in the facility, of which $7 million has already been invested.
Low cost is another reason why the $3.67-billion Saab will source more from India. Johnsson said he expected the Belgaum facility to eventually offer 30-35 % lower cost compared to the facility in Sweden from where the work is being moved. Currently, the Belgaum facility is assembling imported components, but the plan is to quickly indigenize also the machining and surface treatment of these components .
What we are doing now is only for our learning (establish capability). We will do a lot more. We are also bidding for more projects from Airbus and Boeing, and some of that will move here, Johnsson said.
Quest already has a machining facility in the SEZ, it has a surface treatment facility in a joint venture with Magellan Aerospace of Canada, and it is in the process of establishing a forging facility in a joint venture with two French companies, Albert & Duval and Setforge. We have already invested $50 million in the SEZ, said Arvind Melligeri , co-founder and CEO of Quest Global Manufacturing. We want to bring more capabilities to the SEZ so that customers can have a simplified, one-stop solution, he said.
Aerospace component manufacturing is witnessing a resurgence in Karnataka, partly on account of the states traditional strengths in the segment thanks to the presence of PSUs like HAL and NAL the low costs compared to developed market locations , and the offset obligations imposed on overseas vendors who have won defence and civilian contracts from the government. Offsets oblige vendors to procure materials and services from within India equivalent to 30% to 50% of the contract value.
GROWING TIEUP
The facility is located in Quest Globals 300-acre SEZ in Belgaum It has started production of two components of the Airbus 380′s wing the D-nose assembly , a part that lends rigidity to the wing, and one of the skin panels (the outer covering ) Belgaum facility is expected to offer 30-35 % lower cost compared to the facility in Sweden from where the work is being moved.
Link - Saab aerospace will increase sourcing from India | idrw.org
Swedish aerospace and defence company Saab said it would grow its sourcing business in India, and it had become necessary to do so.
Kjell Johnsson, head of Saab Aerostructures, said India was an emerging market for Airbus and Boeing and companies like Saab, which are tier-1 suppliers to these aircraft majors, had to support them with establishments here.
For Airbus and Boeing, the order backlogs are mostly in this region (Asia, Middle East), but only 7% of their supply chain is here, he said.
Johnsson was in Belgaum on Thursday for the launch of a new facility dedicated to the manufacture and supply of aerostructure assemblies for the commercial aerospace market. The facility, which is a joint venture with Bangalore-based Quest Global Manufacturing and which is located in Quest Globals 300-acre SEZ here, has started production of two components of the Airbus 380′s wing the D-nose assembly, a part that lends rigidity to the wing, and one of the skin panels (the outer covering ). The joint venture has committed $10 million in the facility, of which $7 million has already been invested.
Low cost is another reason why the $3.67-billion Saab will source more from India. Johnsson said he expected the Belgaum facility to eventually offer 30-35 % lower cost compared to the facility in Sweden from where the work is being moved. Currently, the Belgaum facility is assembling imported components, but the plan is to quickly indigenize also the machining and surface treatment of these components .
What we are doing now is only for our learning (establish capability). We will do a lot more. We are also bidding for more projects from Airbus and Boeing, and some of that will move here, Johnsson said.
Quest already has a machining facility in the SEZ, it has a surface treatment facility in a joint venture with Magellan Aerospace of Canada, and it is in the process of establishing a forging facility in a joint venture with two French companies, Albert & Duval and Setforge. We have already invested $50 million in the SEZ, said Arvind Melligeri , co-founder and CEO of Quest Global Manufacturing. We want to bring more capabilities to the SEZ so that customers can have a simplified, one-stop solution, he said.
Aerospace component manufacturing is witnessing a resurgence in Karnataka, partly on account of the states traditional strengths in the segment thanks to the presence of PSUs like HAL and NAL the low costs compared to developed market locations , and the offset obligations imposed on overseas vendors who have won defence and civilian contracts from the government. Offsets oblige vendors to procure materials and services from within India equivalent to 30% to 50% of the contract value.
GROWING TIEUP
The facility is located in Quest Globals 300-acre SEZ in Belgaum It has started production of two components of the Airbus 380′s wing the D-nose assembly , a part that lends rigidity to the wing, and one of the skin panels (the outer covering ) Belgaum facility is expected to offer 30-35 % lower cost compared to the facility in Sweden from where the work is being moved.
Link - Saab aerospace will increase sourcing from India | idrw.org
