Magazin "take off" - Issue 25

takeoff
F A C C
C U S T O M E R
M A G A Z I N E
25
01.10
Internationalization:
FACC positions itself as a
global aerospace supplier.
New Owners:
New Project:
Award:
FACC takes off
Composite Components for
A350 XWB Overhead Bins
Embraer honored FACC
as Supplier of the Year
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F A C C
C U S T O M E R
M A G A Z I N E
EDITORIAL
CONTENTS
Welcome readers,
Aviation is one of the branches that are greatly influenced by globalization. On the one hand, per year
there are more than two billion passengers worldwide
who use international airlines for business and leisure
trips. The aviation industry transports people and
products by air quickly and over great distances, provides for commercial and social interaction, connects
peoples, countries and cultures and thus contributes
significantly to international understanding. On the
other hand, air transport is important for the global
economy, creates jobs and opens new markets in regions in which there is high demand. Especially in the
Middle East, China, India and Russia, the growth of
air traffic offers important opportunities. FACC is also
strengthening their activities in these regions in order
to establish a global business and, at the same time,
increase efficiency, productivity and customer satisfaction. One of the focal points here is the consistent
expansion of the worldwide supplier network. In this
issue you can read about goals that FACC is pursuing in their procurement strategy, in which markets
the aviation supplier is expanding its supply chain and
in which projects it has newly begun to cooperate.
We have also talked to our customer Airbus and
asked for details about their outsourcing strategy.
We would like to thank Klaus Richter from Airbus for
making himself available to take off for interview.
FACC has recently taken another significant step
along the road towards a globally positioned company. With the Chinese aviation company XAC as its
strategic majority owner, FACC receives not only the
necessary financial power to be able to implement
their growth plans of the coming years, but also a reliable partner with which FACC can expand their
product portfolio in the direction of larger, more complex structural components. In this issue of take off
we will tell you about the future strategy of the “new”
FACC AG.
Read about these topics plus many more on the
following pages. On behalf of the whole editorial
team, I would like to wish you an enjoyable read with
this issue of take off.
04 New Owners:
FACC takes off
08 Supply Chain:
FACC Is Expanding Global
Supplier Pool
11 FACC und TATA are
Working Together
on the Production of Engine
Components
12 STRATA
impliments technology from FACC
14 Key Technology:
FACC Has Its Very Own
RTM Produktion
16 New Project:
Composite Components for A350 XWB
Overhead Bins
17 FACC receives the Embraer
Supplier of the Year 2009 Award
18 Boeing 787 Dreamliner
Completes First Flight
16 EXPO 2010 in Shanghai:
Austria Is There
Andrea Schachinger
Editor
PS.: We welcome your ideas and comments.
takeoff@facc.at
Published by: FACC AG, Fischerstraße 9, A-4910 Ried/Austria. Editorial Staff: (verantwortlich)
Walter Stephan, Bernhard Matzner, Andrea Schachinger. Photos: Manfred Lang Klagenfurt, Airbus
Toulouse, Mubadala Abu Dhabi, Pointecker Mehrnbach, FACC Ried, Embraer São José dos Campos,
Boeing Seattle, EXPO Office Austria Vienna.
Design and Composition: Oskar Pointecker, 4941 Mehrnbach.
F A C C
C U S T O M E R
M A G A Z I N E
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The Innovation Imperative
>> In 2009, in addition to the
changes in ownership structure
(see the following pages), one topic
took precedence for FACC AG and
became a focus of our work: innovation.
Why Innovation?
We are pressing ahead with innovation in order to constantly improve
the competitiveness of both FACC
and that of our customers. Innovation
serves its purpose when it enhances
product performance and help to
fulfil objectives better and at lower
cost. For FACC, innovation does not
mean developing something new
just for the sake of something new.
Rather, new technologies must fulfil
certain requirements to be considered truly innovative. A good example
is the spoiler FACC has developed
that weighs 30% less and is considerably less complicated to install
due to a new integrated composite
fitting. Only innovations that offer a
clearly recognizable use for the customer, satisfy the highest demands
of quality and reliability and make
economical sense satisfy the requirements for practical application.
Why Focus on Innovation at This
Point?
Due to current economical conditions
with stagnating turnover and the
resulting wish of customers to
consolidate suppliers, innovation
has become more important than
ever before, especially for a relatively
small but strongly growth-oriented
company like FACC. For this reason
innovation is a central factor for us in
our quest for successful profitable
growth in the future. Today’s innovation is meant to ensure that FACC
can continue to see strong growth in
the coming years, in spite of stagnation in the aviation industry. We have
always been able to achieve this in
past recessions - in 1994 as well
as in 2002. This makes us optimistic
that we can cope with the current
downturn.
Innovation or Technological Revolution?
The aviation industry is currently in a
phase in which a technological revolution is taking place where a rather
high percentage of the total weight
of an airplane is of fiber composite
materials. 50% and more of modern
airplanes such as a Boeing 787 or
Airbus A350XWB consist of fiber
composite materials. The economical
success of these planes will ultimately prove whether this technological
revolution will be able to retain the
status of “innovative” in the coming
years. FACC is currently working on
making fiber composite materials
more “affordable”. This should be
taken care of with new production
technologies such as the RTM process, as well as new material developments. In addition, the efforts of
FACC to increasingly involve low
wage countries in the procurement
process help increase customers’
benefits and our competitiveness.
The combination of the application
of new technologies and materials
with FACC’s expertise gained from
existing programs is ideal fertile
ground for product ideas and prepares us for sophisticated development and production tasks in the
coming years.
Innovation and Networks
In order to ensure that we remain
leaders in innovation in the area of
composites, we reorganized our
research area in mid 2009 and created an additional profit center called
“FACC Solutions” to complement
the existing Aerostructures, Engine
& Nacelles and Interiors profit centers. FACC Solutions, headed by Jo-
hannes Noisternig,
combines the engineering offices of
Vienna and Bratislava and the R&D
department of Ried
and
cooperates
closely with the
product development departments
of the three profit
centers. In addition
to direct development activities, the
development center in Ried will
above all deal with new research
tasks in the area of primary structures.
We are implementing innovation
by identifying and analyzing the
requirements and wishes of our customers. In doing so we are working
in a network in order to achieve more
in cooperation with important partners, be it in the purchasing of raw
materials and hardware or the development of advanced production
processes. Cooperation with domestic and international universities
will also be increased. We want to
actively effect changes. We often
take chances to be able to achieve
these changes and to create innovation for us and our customers. The
technical innovations that we are
implementing today will enable us to
be a qualified partner for the development and production of primary
structures or creative complete
solutions for interiors for our customers’ future generations of narrow
body jets.
Walter A. Stephan
Chairman of the Board
FACC AG
<<
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F A C C
C U S T O M E R
M A G A Z I N E
New Owners:
FACC takes off
The Chinese aerospace company XAC has acquired the majority of shares of the leading Austrian aviation supplier FACC. The new strategic owner and the management of
FACC want to introduce their strategy for the future and are confident about the company’s further growth.
>> The acquisition of the majority of
FACC AG by the international aerospace company Xi’an Aircraft Industry (Group) Company Ltd. (XAC) and
the private equity company Advanced Treasure Limited (ATL), announced in October, was finalised on
December 3, 2009: XAC and ATL are
now formally the majority owners of
FACC AG. Through a Chinese and
an Austrian ownership association
they own 91.25% of the shares of
the leading Austrian aviation supplier, of which XAC owns 90% and
ATL 10%. 5% remain in the possession of the Austrian holding company ACC Kooperationen und
Beteiligungen GmbH and 3.75% are
owned by Stephan GmbH.
Growth Strategy
The new owner will reinforce the
successful international growth
strategy that FACC pursued under
the former owners and provide the
company access to new capital as
well as to the fast growing markets
of China and the Asia-Pacific region.
“We are confident that FACC will be
able to take advantage of its huge
growth chances,” said Geng
Ruguang, Vice President of XAC’s
parent company AVIC. “The rapid
development of the Chinese aerospace industry offers FACC many
opportunities and it is important for
us to integrate ourselves in the
world. The transaction will bring
positive results for both parties as
well as a positive future. The increase in capital that stems from our
industrial group gives the company
the necessary financial strength to
New Ownership Structure of FACC AG
China Aviation
Investment
Holding Co. Ltd
14,09 %
AVIC
84,92 %
Xi'an Aircraft Corporation
Strategic Investor
90 %
China Cinda Asset
Management
Cooperation
0,99 %
Advanced Treasure Limited
Private Equity / Hongkong
10 %
Future International Aviation Investment
Company Limited
Special Purpose Vehicle / Hongkong
100 %
Stephan GmbH
Salzburg
3,75 %
Aerospace Innovation
Investment GmbH
Special Purpose
Vehicle / Vienna
91,25 %
ACC Beteiligungen
und Kooperationen
GmbH / Linz
5%
FACC AG
Status of Dec. 3, 2009 transaction closing
The Chinese Xi’an Aircraft Industry Company, subsidiary of the AVIC concern, is the new majority owner and strategic partner of FACC AG. The
ownership association, founded by XAC in Hong Kong and Vienna, owns
91.25% of FACC. Of this association, XAC holds 90% and the financial investor Advanced Treasure Limited holds 10% of the shares.
be able to encounter possible risks,
such as a volatile market.” FACC will
remain a stand-alone independent
corporate entity with the current
management team under the leadership of CEO Walter Stephan. The
headquarters in Ried im Innkreis and
the other Austrian and international
locations with a workforce of 1,560
people will be retained. “When the
economic situation in the aviation
branch has improved, we will even
be needing new skilled workers,”
Geng Ruguang added.
F A C C
Management committed to
new ownership
The management of FACC is fully
committed to the new ownership
structure and the opportunities it
presents for future business development. Walter Stephan, CEO of
FACC AG, will remain invested in the
company and says: "In the past
years, FACC has achieved impressive
development.
XAC
will
strengthen our position as an internationally successful development
and systems supplier to the OEMs
and first tiers in the aviation industry.
This is a unique opportunity to step
up the growth path, supported by
the new owner. XAC has a long-term
strategic interest in the aviation industry, has excellent contacts in the
growth market of China and longterm commitment to FACC and its
customers."
C U S T O M E R
Share Capital Increase
Dr. Bernhard Matzner, CFO of FACC
AG, points out that the partnership
with XAC provides access to the
huge Chinese market and at the
same time offers opportunities to increase the share of USD based manufacturing by outsourcing projects to
China, which will also lead to a better hedge against the ever weakening dollar. In addition, the share capital increase will significantly
strengthen the company's position
among the Tier 1 suppliers.
FACC and XAC combine
their strengths
FACC and XAC enter into this strategic partnership with the goal to provide high-quality, cost effective solutions to the global aviation industry.
The two companies combine their
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individual strengths. On the one hand,
FACC as a Tier 1 supplier has an established global customer base, an
extensive product portfolio - including the new aircraft programs - and a
well-developed supply chain and is
among the market leaders in composite design and manufacturing.
Moreover, FACC is very well represented on the European and American market.
XAC, on the other hand, plans to
make high investments in the aviation sector - both in the form of the
above mentioned share capital increase as well as in new programs
and technologies. The Chinese aviation company offers a favourable
operating cost structure and production capacity in a USD based region. XAC has many years of experience in the manufacture of wings
and side stabilizers. Being located in >>
FACC and XAC together will create powerful synergies
FACC AG and XAC ….
are well positioned to provide high quality, cost-efficient solutions to its customers
• Established global customer base
• World leader in composite design and
manufacture
• Large portfolio of products
• Involvement on most new airplanes
• Tier 1, risk-sharing partner experience
• Well-managed supplier relationships
• Developed engineering capability
• Production system expertise
• Intellectual property protection controls
• Regulatory knowledge and relationships
• European market presence
• Significant financial investment
– capital formation
– new programs
– new technologies
• Favorable operational cost structure
• USD based manufacturing
• Production capacity
• Wing and Fin manufacture experience
• Chinese market presence
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F A C C
C U S T O M E R
About XAC
As part of the AVIC group, XAC is a large, global
industrial group with headquarters in Xi’an, China.
XAC specializes in the development and manufacture of large and medium-sized aircraft. As a
supplier of the fuselage and the wing, the majority-owned subsidiary of XAC, Xi’an Aircraft International Corporation (“XAIC”) is heavily involved
in the Chinese regional jet program ARJ21. XAIC
will also play a significant role in the development
and production of the planned medium-range aircraft C919. Since 1980, XAC has been a supplier
to international customers, including Boeing and
Airbus, for various structural components such as
the A320 wing box and the Boeing 737 vertical
fin. Further information can be found under
www.xac.com.cn.
M A G A Z I N E
the fast-growing Chinese aviation
market, for which in the next 20
years a demand for more than 3,000
new aircraft is projected, offers a
great business potential.
Globally positioned
FACC and XAC are forging a partnership to provide the worldwide
customers in the aerospace market
a wide range of business offerings
that are based on a global network
of engineering, manufacturing and
customer support sites as well as
supply chain partners in Europe,
China, Malaysia, India and Abu
Dhabi. This creates an ideal condition to best meet customer needs
and to provide leading-edge technology for ready-to-install solutions.
FACC wants to be a preferred Tier 1
supplier to OEMs for aerostructures,
engine and nacelle components and
interior furnishings. The objectives of
FACC are to provide turn-key business solutions ranging from risksharing participation through program financing, R&D, engineering, to
industrialization and global sourcing
networks; to expand market share
by emphasizing the research and
engineering resources and to support the specified growth plans by
enlarging the client base. Another
goal is to continuously improve the
production processes in order to
maintain cost leadership. An experienced management and financial
stability ensure that customer expectations are met or exceeded. <<
FACC and XAC together will create powerful synergies
FACC AG and XAC ….
are well positioned to provide high quality, cost-efficient solutions to its customers
Business Architecture
• Risk sharing investments
• Global partnerships with OEM and emerging markets drives market access
• Total supply chain management
• Relations with governments and regulative bodies
• R&D cost sharing
• Technology transfer controls
Proven Technology Leadership
• Full independent design authority
• Parts & assemblies
• Sub sections
• Tier 1 sections
• Leading edge turn key solutions
• Collaborative team design
• R&D, engineering, certification
• New technology pushes performance
Globally Positioned
• Global logistics, engineering, supply chain and
manufacturing network
• Repairs and modifications
• On site engineering and customer support services
• Production capacity in Europe, China
• Production capacity through supply chains in
Malaysia, India and Abu Dhabi
Manufacturing
• State-of-the-art production facilities
• System integration capability including testing
• Full range of RTM, autoclave, press technology
established using lean manufacturing process.
• Strong supply chain management established for
non composite technologies (metal parts, wires and
harness, systems and equipments)
• Product improvement and workflow streamlining
F A C C
“We are confident that FACC
will be able to take advantage
of its huge growth chances. The
rapid development of the Chinese aerospace industry offers
FACC many opportunities and it
is important for us to integrate
ourselves in the world. The
transaction will bring positive
results for both parties as well
as a positive future. The increase in capital that stems
from our industrial group gives
the company the necessary financial strength to be able to
encounter possible risks, such
as a volatile market.”
Geng Ruguang
Vice President, AVIC
C U S T O M E R
“The purchase of 91.25% share
of FACC is the largest business
merger and acquisition of a
Chinese enterprise in central
Europe. It is also the first time
for an Asian aviation manufacturer to acquire a western
aviation company. Therefore the
acquisition is of great significance for the economic and
cultural exchange and cooperation between Eastern and Western countries”.
Meng Xiangkai
President, XAC
"In the past years, FACC has
achieved impressive development. XAC will strengthen our
position as an internationally
successful development and
systems supplier to the OEMs
and first tiers in the aviation industry. This is a unique opportunity to step up the growth
path, supported by the new
owner. XAC has a long-term
strategic interest in the aviation
industry, has excellent contacts
in the growth market of China
and long-term commitment to
FACC and its customers."
Walter Stephan
CEO, FACC AG
FACC has a new owner: Seller Ludwig Scharinger and Hannes Androsch
with XAC President Meng Xiangkai, the new owner, at the contract signing
in Vienna on December 3, 2009.
M A G A Z I N E
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„The partnership with XAC provides access to the huge Chinese market and at the same
time offers opportunities to increase the share of USD based
manufacturing by outsourcing
projects to China, which will
also lead to a better hedge
against the ever weakening dollar.”
Bernhard Matzner
CFO, FACC AG
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F A C C
C U S T O M E R
M A G A Z I N E
Supply Chain:
FACC Is Expanding Global Supplier Pool
Partnerships with suppliers contribute greatly to the success of a business. Global procurement and close links to suppliers are both gaining more and more significance. At
the same time, the up-and-coming Asian growth markets are increasingly developing
into future procurement markets. Also for FACC.
>> Procurement expenditures at
FACC, with a value equalling around
60% of the company’s turnover,
have a central significance and influence business results. A goal-oriented purchasing strategy helps to
strengthen earning power and to
create an edge over the competition.
In order to exhaust all performance
and market potentials as well as to
ensure competitiveness, FACC is
striving to make its supply chain
even more international. In the forefront is the establishment of longterm partnerships, which shows that
around 95% of the procurement volume will be carried out in long-term
contracts. Many partnerships have
existed successfully for years, and
some, such as the manufacturing
partnership with Mubadala in the
Emirates or the TATA in India (see
information on the following pages),
have just recently begun. The goals
underlying these partnerships are
clearly defined and documented in
the FACC company strategy:
Reducing the Risk of the US
Dollar
As is common in the aviation industry, FACC deals with its sales almost
exclusively in US dollars. FACC
wants to purchase even more from
outside of Europe, in order to lessen
the risks that come with the unstable dollar. Thus the share of purchases in US dollars should be kept
at over 90%.
Rudolf Leitner, Head of Purchasing, FACC explains:
“The aim of purchasing is to consistently and continuously utilize
market potentials in order to gain
an edge in competition - not only
in the short term, but in the mid
and long term as well - and to
support company goals. Compe-
titiveness in quality, service and
cost as well as the ability to resolve issues promptly are the fundamental requirements for our
supply chain. Our goal is to develop long-term relationships with
existing and potential partners.”
SUPPLIER
MANAGEMENT MODEL
Data
Management
B2B
Solutions
Processes
ERPSystem
SAP R3
Supplier:
VEMAP
Business
Connector
Supplier
Portal
FACC
Quality
Specification
(FQS, FQI,
Process
Orders, ...)
Human
Resources
Skill and
Qualification
Supplier management at FACC is based on four pillars: data management, B2B solutions with suppliers, a defined process landscape and
qualified employees. In procurement these serve as guarantees that
when the right time, amount, place, the required quality and optimal total costs are all observed and the agreed-upon conditions are met,
company goals will be optimally implemented and a competitive edge
will be generated for FACC.
F A C C
Integration of Growth Markets into the Supply Chain
Asia will gain great significance in
the expansion of the supply chain.
The Asian-Pacific region is an area
with high demand for new civil airplanes and it presents an important
sales market for the aviation supplier. Airplane sales are mostly tied
to the condition that a part of the
wares and services are to be procured from the country of the airplane buyer. FACC, as Tier 1 development and production partner,
supports airplane manufacturers in
their efforts to transfer projects to
these countries. This close cooperation helps not only the OEMs to fulfil counter trade commitments based
on aircraft deliveries, but also helps
FACC to increase its share of procurements in US dollars.
Additional Production Capacity for Composite Components
Part of the procurement strategy of
FACC is to enter long term partnerships with their main suppliers and
C U S T O M E R
to establish cost efficient production
lines specifically tailored to the manufacturing of composite components. An ongoing, streamlined coordination of existing business
processes, the accompaniment in
planning, construction and certification of production facilities, employee training and support in production start-up are the services
with which FACC wants to achieve
an increase in efficiency and cost
savings in the supply chain. This is
also the way to gain access to additional production capacity which can
cover the requirements of future
projects.
Strengthening of the Power
of Innovation
FACC can further its innovation skills
through an active, intensive cooperation with suppliers and customers,
since new developments and solutions for future applications are
worked on together and as a consequence an edge in technology is
achieved. Suppliers are often involved in the development process
already at the start of a project and
M A G A Z I N E
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suggest approaches and ideas that
result in an optimal product as far as
performance, weight and costs are
concerned.
FACC is well aware of the fact
that the long term success of the
company depends on customer satisfaction. In order to guarantee this
satisfaction, functioning company
processes and a successful supply
chain that spans the entire value
added chain are required. In order to
achieve this, FACC considers it essential that the diverse activities of
the participating organizations focus
their efforts on sustaining an efficient
supply chain. Therefore it is a goal
to maximize the profitability of the
entire supply chain, since FACC
sees itself not as an independent entity solely orientated towards competing with other companies in order
to survive on the highly-competitive
market. Rather, the chances and opportunities that arise from an active
integration of the supply chain allow
FACC to concentrate on its own
core competencies to increasingly
perform as an integrator and to
strategically position itself on the
<<
market.
We asked Airbus
About It’s Outsourcing Strategy
>> In the past years there have been
massive unexpected changes in the
aviation industry which are forcing
the companies to face special challenges. The airplane manufacturers
are reducing the number of suppliers
and are massively pressing ahead
with the integration of their supply
chain. Suppliers like FACC have therefore been forced to reposition
themselves. take off has asked a decision maker at Airbus for his opinion
on the topic of globalization, out-
sourcing strategies and the resulting
new roles of the supplier.
An interview with:
Klaus Richter is Head of Procurement at Airbus, a position that he
has held since 2007.
take off: In their strategic program
“Vision 2020”, Airbus has stated that
they want to intensively continue
the globalization of the corporation.
Which markets are interesting for
Airbus as far as procurement goes?
Klaus Richter: Airbus is fundamentally a globally oriented concern
and serves markets all over the
world. In recent years aviation has
seen huge growth, especially in the
Asian markets such as China, India
and the Middle East. These are also
strong sales markets for Airbus.
Since we are interested in maintaining balanced relations with Asia,
this region is also interesting as far
as purchasing goes. But I would like
to emphasize that Airbus runs a >>
Dr.-Ing. Klaus Richter
Executive Vice President
Procurement, Airbus
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F A C C
C U S T O M E R
commercial business; procurement
activities are on principle not influenced by offset commitments. The
Airbus-FACC-Mubadala/Strata deal
happens to be an exception. Another thing that needs to be mentioned: Cooperation with suppliers is
multifaceted and spread in different
regions
worldwide,
whereby
language often plays a role. Our
Spanish branches work a lot with
Mexico, the French with suppliers in
North Africa and the Germans with
Eastern Europe.
take off: What are the reasons for
the expansion of Airbus’ Global
Sourcing Network? Which goals are
being pursued?
Klaus Richter: As the first reason
I should mention the commercial
aspect. We want to take advantage
of cost advantages of a worldwide
procurement chain. A further reason
is currency hedging. Airbus’ entire
turnover is in dollars and therefore
only enters into contracts with its
suppliers in dollars. This way we can
reduce risks attributed to the unsta-
M A G A Z I N E
ble dollar. A third reason is the already mentioned trade balance that
Airbus is striving for. By expanding
its supplier network, the strategies of
reducing the number of tier 1 suppliers and strengthening the cooperation with these strategic suppliers
come to bear. Furthermore, many
smaller companies are working on
Airbus programs. They are subcontracted by the main suppliers to take
over build-to-print projects, a strategy that has been intensified in our
biggest procurement project to date,
the A350 program. For the A350, for
example, from one fourth to one
third of the acquisition value is generated in the Far East.
take off: In the area of aviation,
Austria is neither a growing market
nor a low-wage country. Which roles
can FACC play as a supplier to Airbus?
Klaus Richter: Airbus is banking
on FACC as a strategic partner and
tier 1 supplier. In our cooperation
with FACC, the long term aspect is
what counts, which is also confir-
med by the fact that FACC has been
chosen as a direct supplier partner
for the A350 program.
take off: The Chinese aviation
company XAC, also a supplier to Airbus, is now the majority owner of
FACC. How do you see things?
Does the entrance of this strategic
partner into the picture effect the
customer-supplier relationship between Airbus and FACC?
Klaus Richter: As far as FACC’s
dealings with China are concerned,
I currently see in them the natural
“chaos” of a fundamental change.
However, I assume that FACC will
come soon to an agreement with
their Chinese partner. For Airbus it is
important that in planning any future
collaboration, FACC and XAC will
take our interests into account.
Under these premises, the fact that
XAC has entered the picture can
potentially make FACC a more competitive and more attractive supplier.
take off: Thank you for the
interview.
Airbus Aerostructures Supplier Council:
FACC Hosts Top Suppliers
Participating companies that made the Airbus Aerostructures Supplier Council a success were
Airbus, Aernnova, Aerolia, Alenia Aeronautica, GE Aviation Systems, GKN Aerospace, Latecoere,
Premium Aerotec, Saab, Spirit, Stork Fokker and FACC.
>> On the 29th and 30th of September 2009, Airbus held the sixth Aerostructures Supplier Council at FACC.
On this occasion the decision makers of Airbus procurement explained current developments at Airbus
to their strategic suppliers and delivered insight into the strategy and
goals of global purchasing of the Airbus Global Sourcing Networks.
Klaus Richter, Executive Vice President Procurement at Airbus, emphasized the significance of cost
reduction and performance increase
in the supply chain. In the discussion, various Airbus representatives
and suppliers also dealt with further
topics, such as supply chain development in low cost countries, joint
procurement opportunities, ways to
improve flexibility in a volatile market
<<
and Airbus’s lean journey.
F A C C
C U S T O M E R
M A G A Z I N E
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FACC and TATA Are Working Together
on the Production of Engine Components
FACC and TAML at the signing of the cooperation agreement (l.t.r. Bernhard Schöpf, Program Manager Offload,
FACC; S.K. Shashidar, GM - Finance & Company Secretar, TAML; Lalit Bhardwaj, CEO, TAML and Robert Braunsberger, Vice President Engine & Nacelles, FACC)
>> In September 2009, FACC and
TATA Advanced Materials Limited
(TAML) signed a contract according
to which FACC is planning to offload
the production of various components for Rolls-Royce engines to
TAML. It is also planned that in the
short- to mid-term future TAML will
produce other components for FACC
that are generally rather labour intensive at relative low complexity.
TAML is part of the Indian conglomerate TATA and specializes in the
development and production of
composite components for various
aviation, defense and industry applications. The company has just recently
commissioned a new production facility at the company location in Jigani,
India, in which production of the
engine components for FACC will
begin at the beginning of 2010.
“We are looking forward to an intensive and successful cooperation
with TATA Advanced Materials Ltd,”
Robert Braunsberger, Vice President
Engine & Nacelles for FACC (at right
in the picture), said when the contract was signed. “The enormous
potential of this company, coupled
with its economic stability due to its
affiliation with the TATA concern, is a
basis for long-term expansion of
FACC’s positioning in the emergent
international composite sector of the
aviation industry.” This partnership
with TATA makes it possible for
FACC to establish a new source in a
growing aviation market. This will
also free up capacity in the Austrian
facilities for the production of highly
complex structural components as
well as for the introduction of new
technologies.
Lalit Bhardwaj, CEO of TAML (2nd
f. r. in the picture) emphazises: „Our
long term contract with FACC is of
vital and strategic importance to our
company, since TAML, an emerging
aerospace supplier, would have the
benefit of learning from the technology and process strengths of FACC,
one of the world’s leading aviation
suppliers in the area of composites.
We at TAML seek to synergize and
grow this partnership with FACC,
supporting their customers and
meeting and exceeding their expectations, thereby facilitating FACC
to move up the value chain and succeed in its businesses. We are proud
to be associated with FACC and
look forward to a long and mutually
beneficial relationship.”
<<
11
12
16
TAKEOFF
takeoff
F A C C
C U S T O M E R
M A G A Z I N E
Waleed Ahmed Al Muhairi Mokarrab,
COO of Mubadala; Sheikh Mohammed
bin Zayed, the Crown Prince of Abu
Dhabi and Deputy Supreme Commander of the UAE Armed Forces and
Homaid Al Shemmari, Director Mubadala Aerospace in front of
the FACC Flap Track
Fairing manufactured
for the A380.
STRATA
impliments technology from FACC
FACC provides support to Strata, Mubadala Development Company’s advanced composites aero structures manufacturing facility. Sheikh Mohammed Bin Zayed recently
laid foundation stone for Strata aerostructures manufacturing facility.
>> Mid November 2009, Sheikh Mohammed Bin Zayed Al Nahyan,
Crown Prince of Abu Dhabi and
Deputy Supreme Commander of the
UAE Armed Forces, chaired the construction ceremony of Strata,
Mubadala Development Company's
advanced composites aerostruc-
Waleed Ahmed Al Muhairi Mokarrab, COO of Mubadala; Pier Francesco Guarguaglini, Chairman
and CEO of Finmechanica; Sheikh Mohammed bin Zayed, the Crown Prince of Abu Dhabi and
Deputy Supreme Commander of the UAE Armed Forces; Tom Enders, CEO of Airbus; Khaldoon
al Mubarak, CEO of Mubadala Development; Walter Stephan, CEO of FACC AG and Homaid Al
Shemmari, Director Mubadala Aerospace at the construction ceremony of the new Strata
aerostructures manufacturing facility at the Al Ain airport in the emirate of Abu Dhabi.
tures manufacturing facility, currently
being constructed in Al Ain in the
emirate of Abu Dhabi. Through contracts with Mubadala Development
Company, the development and investment company driving the economic diversification of Abu Dhabi,
FACC is supporting Phase One of
the facility. The inauguration ceremony was attended by representatives from Mubadala, Airbus, Alenia,
EADS and FACC, as well as highranking representatives from Abu
Dhabi and across the UAE.
Strata has won more than US$2
billion in work packages to date from
Airbus, Italy’s Alenia Aeronautica
and FACC of Austria. Strata establishes Abu Dhabi’s aerospace manufacturing industry which is a core
component of Mubadala’s strategy
to make the Emirate a global aerospace hub. The aerospace sector is
a key part of the Emirate’s economic
diversification plans which aims to
create a high-tech, knowledge intensive economy, and provide career
F A C C
C U S T O M E R
opportunities for the current and future UAE workforce.
through to a cost-effective production to the aircraft manufacturers."
“Strata is a major milestone for
Abu Dhabi in its aspirations to become a leading manufacturing base
for the global aerospace industry,”
said Homaid al Shemmari, the associate director of Mubadala Aerospace, at the unveiling in Al Ain.
Mid June 2009, FACC and
Mubadala announced contracts
which support the development of
the Strata facility and will see A330/
A340 Flap Track Fairing work packages manufactured at the facility
from Q3 2010. Strata will reach a
size of 21,600 m2 at the end of the
first construction phase. Construction began in late June 2009. The
production start is planned for the
4th Quarter of 2010. Subsequent
phases of expansion are planned to
provide a total facility in excess of
60,000m² over the next few years.
"The investment in Strata Manufacturing provides an ideal basis for
a long-term industrial cooperation
between Mubadala and FACC," said
Walter Stephan, CEO of FACC AG.
"We recognize the ambitious plans
of Mubadala on the aviation sector.
While our two companies combine
their strengths, we can offer tailormade solutions covering all services
from concept and development
M A G A Z I N E
takeoff
13
Austria. FACC is supporting the
qualification of equipment and
processes, staff training and technical support in the production start
up phase. Subsequently, FACC will
transfer composite aerostructures
work packages for the manufacture
of spoilers and flap track fairings to
the new plant.
<<
The Strata plant will be similar to
the modern production line for
aerostructures in place at FACC in
Russian Aviation
Experts Visit FACC
>> In September 2009, FACC AG
had a visit from a delegation of highranking representatives of the
Russian aviation industry, including
the general director of Sukhoi, Mikhail
A. Pogosyan, as well as the president
of Aerocomposite, Anatoly Gaydanskiy.
The meetings followed the recent
agreement to cooperate in the area
of material and process development of composite components for
future Russian aircraft programs, as
well as contracts for the development and production of composite
components for existing aircraft programs.
A joint UAC/FACC research program
has been created which will deal
with the new developments in airplane primary structures using new
materials and processes. In this joint
cooperation the properties of new materials and processes
will be researched
and tested by applying materials testing,
the production and
testing of sub-components and the manufacturing of prototypes.
On a tour of the facility in Reichersberg the Russian aviation
Furthermore, this agreement commissions FACC AG with the development and manufacturing of the
cargo compartment panelling for the
SS100 regional jet of the Sukhoi
Group. This special program stipulates very short development phases
and the first deliveries are to be in
<<
2010.
experts could get a look at the innovative technologies and
manufacturing processes at FACC: (l. to r.) Yury Lavrov, Design
Engineer, FACC; Thomas Pleli, COO, FACC; Ulina Denisova,
Deputy Director Aviation Programs and Research Department,
United Aircraft Corporation; Irina Kosheleva, Director Foreign
and Legal Affairs, Aerocomposite; Anatoly Gaydanskiy,
President, Aerocomposite; Walter Stephan, CEO, FACC;
Mikhail A. Pogosyan, General Director, Sukhoi Aviation Holding
Company; Julia Gilyarevskaya, Executive Assistant to Director,
Sukhoi Aviation Holding Company; Sergej Kulikov, Chief
Engineer, Aerocomposite and Leonid N. Komm, Director
Aviation Programs and Research Department, United Aircraft
Corporation
14
16
F A C C
TAKEOFF
takeoff
C U S T O M E R
M A G A Z I N E
Key Technology:
FACC Installed New RTM Production
In the summer of 2009, a new kind of RTM and preform production was started up at
FACC. This is the world’s only production machinery for the industrial manufacturing of
aviation-approved RTM components. It will optimally prepare the aviation supplier for
future challenges and keep FACC decisively involved in the newest development trends
in composite production. FACC is thus seen by the aviation industry as the vanguard in
the competition pertaining to RTM technology.
>> RTM (Resin Transfer Moulding) is
a process whereby preforms are
installed into a closed mold, injected
with resin and then cured by applying pressure and heat. In contrast to
the conventional lay-up process of
autoclave technology, the RTM
process makes it possible to produce substantially more complex
geometries. The new process is currently being used at FACC for the
manufacturing of center hinge fittings
(CHF) for the A330/A340 spoiler and
can also be adapted to be used for
other projects, such as the A350
spoiler.
The complexity of the CHF make
it clear how necessary it is to apply
the RTM process. One single CHF
preform consists of 11 different individual components (sub-preforms),
which in turn consist of 35 different
layer packages (books). These in
turn are manufactured from 144 individual plies. In producing a complete
preform, the individual layers are
consolidated into books in compacting steps, whereby the dry fiber material is solidified or stabilized using
vacuum and heat, and subsequently
formed into hard and compact preforms. Constant and sufficient vacuum and temperature ratios are the
two influences that are essential to
achieve satisfactory results and quality when compacting the component.
Although the fitting appears to be
simple at first glance, the manufacturing process shows what complex
technological and logistical applications are all necessary to produce it.
In order to accomplish this as fast
and cost-effectively as possible, the
new RTM process is the best way to
go.
RTM Saves Time and Money
In the conventional production of
preforms, aluminium tools were used
to manufacture them and the tool
and preforms together were put into
an oven or autoclave to be com-
pacted using heat and pressure. To
assure efficient loading of the oven,
a large number of aluminium tools
had to be at hand. This greatly reduced flexibility in the production of
preforms since long lead times, idle
times and process times had to be
taken into consideration. In addition,
the compacting process in the oven
took a lot of time and energy, since a
large number of tools had to be
warmed up and then cooled down
again.
The revolutionary production
method at FACC presents a solution
in which production times and energy costs can be considerably reduced. The new RTM method and
machinery had previously only been
tested under laboratory conditions.
Due to FACC’s spirit of innovation,
the process is being used for the first
time in the industry and makes industrial serial production of preforms
and RTM components possible. In
this innovative process, thin lami-
Each Book gets laid up and fixed onto Subsequently the bagging and the insu- The compacted sub-preform (single The finsihed preform gets laid u
the self heating composite tool.
lation is applied and the cure-cycle gets component) gets removed from the RTM mould tools and prepared f
started.
form giving tool.
injection.
F A C C
nated molds with localized electric
heating structures just under the tool
surface are used. These special
heatable tools are designed to be
used as a production line and
thereby constructed as machinery
that can be used directly where
needed. The temperature is locally
introduced onto the tool, resulting in
a fast and short heating period, saving energy and costs. When this machinery and method are used, time is
no longer wasted on waiting to fully
load the oven or autoclave and on
the heating and cooling of unnecessary large tools. For the first time the
C U S T O M E R
for the after the cure-cycle from the RTM
mould tool.
takeoff
15
production of preforms can be very
flexible and independent.
Increased Automation
As an added feature, the introduction
of the new RTM process made it
possible to improve processes and
automation. Before this, in conventional RTM processes the machinery
had to be cleaned by hand after the
injection process, which led to high
set-up costs and was hazardous for
the workers due to the use of potentially explosive acetone. The cleaning
steps have now been automated and
follow the injection process, making
it safer and faster.
By implementing the new RTM
technology and production method,
FACC has strengthened its pioneer
spirit and international reputation as
a flexible, creative and innovative aviation component manufacturer and
will be actively and significantly involved in the progress and development of fiber composite compo<<
nents.
p onto The finsihed RTM part gets demoulded
M A G A Z I N E
Werner Schnötzinger, Program Manager Aerostructures
A330/340 Spoiler, managed the installation of the RTM
process at FACC.
“The team and every individual involved in the introduction
of the RTM process did exceptionally good work. Once we
solved the initial teething problems of the new production
machinery never before used anywhere in the world, we were
able to ensure a stable and reproductive production of preforms and RTM parts. At FACC there is no other comparable
component besides the center hinge fitting that is produced
in such high complexity and quantities. I would like to mention the constant dedication of the employees concerned
with the production of the CHF and spoilers and thank the
entire team for untiringly working to manufacture such a highquality product."
16
TAKEOFF
takeoff
F A C C
C U S T O M E R
M A G A Z I N E
New Project:
Composite Components for A350 XWB
Overhead Bins
For ten years, Diehl Aircabin and FACC have been
working together successfully on the A380 program. The
commissioning of the development, qualification and
production of parts for the overhead bins for the
A350 XWB will further expand FACC’s partnership with the
German interior specialist.
be defined and determined. Subsequently, the detailed development of
the components will begin.
>> The long-term contract stipulates
that FACC will supply the housings,
bins, spacers and end caps for the
overhead bins of the new long-range
Airbus aircraft.
First delivery of
these main components made of
composite materials is planned for
mid 2010. Until the end of 2009, an
FACC engineering team will work together with Diehl Aircabin on the
pre-development of the components, partly at FACC or on site by
the customer in Laupheim. During
this time, the details for the requirements and interfaces to other structural components and systems will
Gerhard Mörtenhuber, Vice President of Interiors for FACC, points out
the innovation capability of FACC:
“Thanks to our experience gained
from numerous similar projects and
based on years of expertise acquired by our employees, we are able to
develop and select the best possible
technologies and package them into
an optimal total solution.” After having been involved in the two last important new developments of Airbus, the A320 and A380 cabins,
FACC has now been chosen as a
partner for the development, qualification and production of the overhead bins for the A350 XWB. “This
contract reinforces FACC’s position
on the market as one of the leading
partners for the development of
functional components in wide-body
cabins,” Mörtenhuber adds.
The overhead bins of the A350
XWB are designed as so-called “moveable bins”. Compared with conventional bins, they can be installed
higher in the plane interior. The resulting extra ceiling height offers the
passenger a more comfortable,
more open feeling that is especially
welcome on long-range flights.
When the bin door is opened, the
entire bin lowers itself and makes it
easier for the passenger to use. <<
F A C C
C U S T O M E R
M A G A Z I N E
takeoff
17
FACC receives the Embraer
Supplier of the Year 2009 Award
In a ceremony held end November 2009, Embraer awarded FACC with the Supplier of
the Year 2009 Award in the category of "Development Program". By awarding
this trophy, the Brazilian aircraft manufacturer wants to pay tribute to the excellence of
its best suppliers in terms of quality, flexibility, delivery reliability, customer
support and innovation.
>> Walter Stephan, CEO of FACC
AG, accepted the award in São José
dos Campos, Brazil, from Helio
Bambini, Embraer Vice President,
Supply Chain. “High level of innovations with effective interior solutions,
commitment, and technical and
commercial flexibility led our choice
for the 2009 Best Supplier, Programs
under Development, to FACC,” said
Bambini, whilst extending his thanks
to the prize winner.
FACC has been a supplier of Embraer since 2006. Initial orders included various interior components
for the executive jets Phenom 100,
Phenom 300 and Lineage 1000. In
2008, Embraer awarded FACC the
contract for the development and
manufacture of the complete passenger cabin of the executive jet
models Legacy 450 and Legacy 500.
“From the very first, innovation was
one of the key growth drivers at
FACC. We are very proud that our efforts gained recognition with this
award, confirming FACC as the best
development partner of Embraer,”
said Walter Stephan when he accepted the award in São José dos
Campos. “I am grateful for the confidence that Embraer relies upon
FACC and their open, constructive
way of cooperation. I am also proud
of our employees who have earned
this award with their hard work.”
<<
About Embraer
Embraer (Empresa Brasileira de Aeronáutica S.A. - NYSE:
ERJ; BM&FBovespa: EMBR3) is the world’s largest manufacturer of commercial jets up to 120 seats, and one of Brazil’s leading exporters. Embraer’s headquarters are located
in São José dos Campos, São Paulo, and it has offices, industrial operations and customer service facilities in Brazil,
China, France, Portugal, Singapore, and the United States.
Founded in 1969, the Company designs, develops, manufactures and sells aircraft for the commercial aviation, executive aviation, and defense segments. The Company also
provides after sales support and services to customers
worldwide. On September 30, 2009, Embraer had a workforce of 16,986 employees – not counting the employees of
its partly owned subsidiaries – and its firm order backlog totaled US$ 18.6 billion. For more information, please visit
www.embraer.com.
Embraer honours FACC with the Supplier of the Year Award for outstanding quality, flexibility, delivery reliability, customer support and innovation: fltr. Flavio Osanai, Contracts Administrator – New Programs Development, Embraer; Patricia Ferrari, Manager, Procurement and Contract Executive Jets – New Programs, Embraer; Gerhard Mörtenhuber, Vice President Interiors, FACC; Walter Stephan, CEO, FACC; Helio Bambini, Vice President, Supply Chain, Embraer and Celia Bassanello, Contracts Administrator – New Programs Development, Embraer
18
16
F A C C
TAKEOFF
takeoff
C U S T O M E R
M A G A Z I N E
Boeing 787 Dreamliner
Completes First Flight
The all-new Boeing airplane touches down safely after 3-hour mission.
Various FACC components and systems were on board.
>> The Boeing 787 Dreamliner took
to the sky fort he first time on December 15, 2009, ushering a new
era in air travel as it departed before
an estimated crowd of more than
12,000 employees and guests from
Paine Field in Everett, Washington.
On board were various components
and systems developed and produced by FACC using composite
technology. After certification by the
customer and aviation authorities
and after the aircraft passed the
comprehensive ground testing program, the components now fulfilled
all specifications related to flight
testing.
Walter Stephan, CEO of FACC
AG, is pleased about the milestone:
“I want to congratulate Boeing, the
partners who contributed in the program and the FACC team on this
successful first flight. Also, my sincere thanks go to all those on the
FACC staff who have made this important milestone possible with their
untiring, dedicated commitment. We
at FACC are proud that we mastered
the challenge with flying colors with
our various components and systems that are being used on the
787.”
The flight marks the beginning of
a flight test program that will see six
As a composite specialist, FACC is an
important partner in the 787 team and
supplier of the translating sleeves,
spoilers, lower bonded panels and
various Trent 1000 engine components.
airplanes flying nearly around the
clock and around the globe, in the
course of which also the components from FACC will be tested for
their performance and function during flight. The goal of the testing program is the certification of the long
range aircraft by the American and
European aviation authorities for
regular passenger service, so that
the Boeing 787 can be put into service for the first time by All Nippon
Airway. The airplane’s first delivery is
scheduled for fourth quarter 2010.
Since the program started in April
2004, 55 customers have ordered
<<
840 Boeing 787 Dreamliners.
F A C C
C U S T O M E R
M A G A Z I N E
takeoff
EXPO 2010 in Shanghai:
Austria Is There
Austria’s participation in the EXPO 2010 in Shanghai strengthens its long, good relations
to China. This harmony is reflected by diverse Chinese motives which have been integrated into the Austrian pavilion at the EXPO.
>> Austro-Chinese relations go back
a long way. Already in 1781, the Austro-Hungarian monarchy established
the first imperial honorary consulate
in Guangzhou. Today China is one of
Austria’s most important overseas
economic partners after the USA.
That is why Austria has resolved to
put on a good appearance at the
EXPO 2010.
Austria will show itself not only
from its traditional musical side, as it
usually does, but also as an extremely artistically and technologically innovative and future-oriented
nation. Austria’s part in the world’s
fair follows the motto “Better City,
Better Life”, where the harmony between humans, city and nature plays
the central role. The exhibition pavilion reflects this theme in its name
“Austria – Feel the Harmony”. The
dynamic abstract architecture of the
pavilion with its porcelain surface alludes to aspects of Chinese culture.
This elegantly refers to the centuryold tradition of Chinese porcelain exports to Europe. With its pavilion,
Austria is symbolically bringing an
architectural object back to China,
seemingly as porcelain. The red and
white colors of the pavilion stand not
only for the national colors of Austria, but also playfully allude to red as
the traditional Chinese symbol for
luck and happiness.
In five rooms the visitor takes a
trip through the different regions and
landscapes of Austria - an emotional
trip over high mountains, through
forests and meadows, over floodplains and on to the big city. The
modern pavilion offers the opportunity to present the most important
Austrian commercial and cultural
highlights.
Austria’s presence at the world’s
fair is being financed by the Ministry
of Commerce and the Chamber of
Commerce and is seen as an excellent platform for presenting the economical potential of the Austrian
economy and to strengthen good bilateral business relations – in times
when China is interested in the excellent performance of Austrian
companies, in spite of the economic
crisis.
More information at
www.expoaustria.at
<<
19
The first flight of the 787
On Tuesday, December 15, 2009 the Boeing 787 Dreamliner took to the sky for the first time, ushering
a new era in air travel. FACC is proud to have partnered with Boeing and the international 787 supplier team
on this success.
Congratulations to Boeing for the successful
first flight of the Boeing 787 Dreamliner!
FACC AG
A-4910 Ried/Austria, Fischerstraße 9
Tel. +43 / 59 / 616 -0, Fax +43/ 59 / 616 - 81000
e-mail: office@facc.at, www.facc.co.at