Local aviation industry gets boost

Local aircraft-component makers should see a significant jump in business this week after executives and officials cemented plans to establish an aerospace maintenance and supply management center in Taoyuan and made a rash of supply deals with Snecma Group.

The government signed a memorandum of understanding yesterday with US transportation logistics giant Ryder System Inc that will see it help the firm establish a Asia-Pacific Logistic Support Center for Aviation Components and MRO (maintenance, repair, overhall) in Taiwan.

David Chu (祝如竹), director of the government's Committee for Aviation and Space Industry Development, told the Taipei Times that he had signed the memorandum with William Lai, regional vice president of Ryder, on the sidelines of the Asian Aerospace exhibition in Singapore.

Chu said that manufacturers have been forced to look for cheaper component makers in Asia since the airlines industry slumped in the wake of the Sept. 11 attacks in the US.

"Ryder wants to use Taiwan as a bridge to China and the rest of Asia," Chu said.

He added that under the memorandum the government agreed to help Ryder locate its logistics center at the "Sky City" aviation industrial area in Taoyuan and to help it find local partners.

Lai told government officials when he visited Taiwan last week that there is no logistic center for the aerospace industry in the Asia-Pacific region and that Taiwan's industry fundamentals and location would make it a good partner for his company.

"Taiwan has a solid manufacturing base ... [and] with the advantage of outstanding manpower quality, geographical location, sound IT infrastructure and shared culture with China, Taiwan is well positioned to attract Ryder," Lai said.

Ryder, whose clients include GE Aircraft Engines, Lockheed Martin and Raytheon, plans to have the center coordinate supply management and the overall repair and maintenance needs of local and regional airlines.

The government-linked Aerospace Industrial Development Corp (漢翔航空) also scored big in Singapore yesterday, signing a letter of intent with US jet maker Gulf-stream that will eventually authorize the corporation to establish a regional maintenance center for the mid-sized G100 jet.

In a written statement sent from Singapore, Chu Tai-hua (朱泰樺), an Aerospace Industrial official, said that apart from servicing Gulfstream's G100 jet, the company also hopes the center could act as a regional service center for that class of jet.

The maintenance center is expected to be up and running within two years, the statement said.

Aerospace Industrial is also scheduled to sign an agreement with European plane-engine-maker Snecma, which specializes in manufacturing propulsion systems and landing equipment.

Snecma, whose clients include aviation giants Airbus, Arianespace, Boeing, Dassault Aviation and Eurocopter, will subcontract the supply of engine components for commercial aircraft to Aerospace Industrial for an undisclosed sum, according to Chu.

Messier-Dowty, a subsidiary of Snecma, will also sign a supply deal with local firm Gongin Precision Industrial Co (公準精密), according to Chu.

"Gongin hopes that the deal will help Taiwan become a major center for the manufacture of landing gear," Chu said.

Gongin will provide the components for three to four different types of landing gear used on smaller regional and business jets, he added.