Overseas Exhibition Services Ltd

Malaysia Wins Major Aerospace Subcontract Work

Spirit AeroSystems (Europe) has signed two deals with Malaysian aerospace companies that will see Malaysia accounting for nearly 40% of the subcontract value on the Airbus A350.

 

Kuala Lumpur, Malaysia -- (SBWIRE) -- 01/20/2010 -- Spirit AeroSystems (Europe) signed an agreement with SME Aerospace, with Prime Minister of Malaysia Dato' Sri Mohd Najib bin Tun Abdul Razak in attendance.

Later the same day, a second signing ceremony also attended by the Prime Minister included an agreement between Spirit and Malacca-based Composite Technology Research Malaysia (CTRM) covering the extension of contracts for the A320 and A321 and a new contract for the A350.

Neil McManus, managing director of Spirit AeroSystems (Europe) said that together Malaysian and Indonesian companies will account for 40% of the subcontract value of the A350 – the vast majority of this coming from Malaysia. Some 80% of the A350 work is being subcontracted out.

“Malaysia and Indonesia have cost-efficient manufacturing, a high skill base and great capabilities and capacity,” commented McManus. Airbus has been working with companies in the region since 2000 he points out, so has plenty of experience.

The agreement between Spirit and SMEA includes:

Airbus A320 (contract extension)
Seven years contract extension of existing programme from 2011 to 2017 to manufacturer the Airbus A320 machined and sheet metal details parts and assemblies.

Boeing 777 (contract extension)
Five years contract extension of existing programme from 2010 to 2014 to manufacture the Boeing 777 machined and sheet metal details parts and assemblies.

Airbus A350 (new programme)
Contract vehicle to begin with two work packages to enable the addition of other work packages to supply Airbus A350 machined and sheet metal detail parts.

The agreement between Spirit and CTRM is valued at over RM1 billion and comes on the back of a strategic alliance forged nearly a decade ago.

As well as extending the existing A320 and A321 contracts, there is a new contract covering the manufacture of wing composite components for the A350.

Other additional contracts include the manufacture and supply of top cover panels for the A320 and A321. Spirit also signed a component supply contract with Indonesian Aerospace (IAe) at LIMA on Monday.

SMEA also signed an agreement with Vought Aircraft Industries yesterday, covering machined and sheet metal detail parts for the Boeing 747-8 and Boeing 767.

The agreement also covers machined and metal parts for two US commercial aerospace companies

The aerospace subcontracting industry meets annually at the MTA Malaysia exhibition when further announcements are expected. This exhibition of machine tools, precision engineering and metalworking technology exhibition returns to Kuala Lumpur from 5 - 9 May 2010 and is expected to see in excess of 20,000 visitors.

Further information on the exhibition and the international suppliers exhibiting at it are available from project manager Andrew Todd at atodd@oesallworld.com or via the web site at http://www.allworldexhibitions.com/metal