Aerospace Industrial Development Corp (AIDC, 漢翔航空工業) on Thursday outlined plans to release an estimated NT$2 billion to NT$3 billion (US$63.55 million to US$95.32 million) in potential sales to participants of a supply chain alliance, which now includes members of the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會).
The collaboration is aimed at fulfilling the government’s goals of building a fleet of indigenously developed air force trainer jets, Taichung-based AIDC said in a statement.
With the assistance and consultation provided by AIDC, a number of qualified Taiwanese machine tool companies might be able to tap into the global aerospace market, TAMI chairman Alex Ko (柯拔希) said.
In the past three years, AIDC has sourced about 80 percent of its machine tools from local suppliers that are able to meet its specifications, AIDC spokesperson Lin Nan-chu (林南助) said.
AIDC, the nation’s largest civilian and military aircraft manufacturer, hopes to leverage its dominant position in the aerospace sector and track record with major international clients to elevate the capabilities of its domestic peers through it’s “A-Team 4.0” alliance, an initiative that matches business opportunities with qualified suppliers.
The company also held a celebration event as the 50,000th engine casing for General Electric Co (GE) rolled off its production plant in Taichung.
The engine casing plant was built in two phases, the company said.
The first phase caters to manufacturing larger-sized engine casings for Rolls-Royce Trent XWB engines, while the second phase is designed to build casings for GE’s fuel-efficient LEAP engines, the company said.
AIDC’s sales are projected to post steady growth this year and next year as its capacity expansions begin to bear fruit, according to a report by Capital Investment Management Corp (群益投顧) published on Wednesday.
The company’s sales for this year are expected to grow 2.36 percent annually to NT$27.51 billion, and gain 6.78 percent next year to NT$29.38 billion, as its three plant expansions start production, the report said.
The company’s new expansions include an engine casing plant, a hangar for F-16A/B fighter jet performance upgrades and maintenance, as well as an advanced composite materials plant.
“Revenue contribution from AIDC’s three new plants is expected to start mainly during next year and 2018,” the report said.
The report said that as AIDC’s A-Team 4.0 initiative progresses, the company might increase the proportion of components and materials that are procured domestically, leading to further cost reduction gains.
However, it would take at least one year for these gains to materialize as local suppliers must pass stringent certification by major international clients such as GE, the report said.
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