China Aerospace - Business Structure and Market Opportunities. Nigel Gibbons UKTI Aerospace Supply Chain Project

Transcription

1 China Aerospace - Business Structure and Market Opportunities Nigel Gibbons UKTI Aerospace Supply Chain Project

2 TOPICS Aerospace Market Overview Aerospace Sector Aircraft Programmes Opportunities

3 AEROSPACE MARKET OVERVIEW Commercial Aviation Averaged double-digit growth for past 30years Domestic air travel forecast to grow by 11% p.a. to 2020 Air Passengers almost 20% rise in Domestic passengers in H % of USA today 50% by 2026 Airlines 40 Domestic Airlines (10 State Owned) Consolidating Airlines

4 AEROSPACE MARKET OVERVIEW Boeing China to triple its fleet by ,770 new aircraft required AVIC predicts 3,815 new aircraft 2,822 large aircraft (>150 seat) 993 regional aircraft 3,000 civil helicopters (<200 today) 243 new aircraft deliveries in 2009 largest of any one country!

5 AEROSPACE SECTOR The main goal is to upgrade the countries industrial structure in order to make China an Innovation- Driven economy by 2020 China s Outline of National Medium and Long Term Science and Technology Development Plan ( ). China s 11 th Five Year Plan (Until 2010). Civil Aerospace Investment = $29 billion

6 AEROSPACE SECTOR Commercial Aircraft Corporation of China Ltd (COMAC) ABC Airbus, Boeing, COMAC Established 2008 Capital 19 Billion RMB ($2.8 billion) Stakeholders: Asset Supervision and Administration Commission, Shanghai Guo Steel Group, AVIC, Bao Steel Company, China Aluminium, and Sinochem. Focus: Aircraft Development; Systems Integration; Marketing; Customer Service; Certification. Building Three Centres in Shanghai: R&D Centre (5000 employees), Final Assembly (15000 employees); Customer Service AVIC I Commercial Aircraft Company (ACAC) Shanghai Aero-Engine Manufacturing Plant Shanghai Aircraft Manufacturing Factory (SAMF) Shanghai Aircraft Research Institute (SARI)

7 AEROSPACE SECTOR Chinese Aviation Industry Corporation (AVIC) Companies Sale Revenue $22 billion Employees: >430, Large/Medium Sized Companies 34 Research Institutes Capital 64 Billion RMB ($9.5 Billion) 10 Business Groups Chengdu Aircraft Design Institute (CADI) Chengdu Aircraft Industries Group (CAC) China Air-to-Air Missile Research Institute China Flight Test Establishment (CFTE) China Gas Turbine Establishment Guizhou Aviation Industries Group Co (GAIGC) Shanghai Aero-Engine Manufacturing Plant Shenyang Aero-Engine Research Institute Shenyang Aircraft Industries Group (SAC) Shenyang Liming Engine Manufacturing Corporation (LM) Xian Aero-Engine Corporation (XAE) Xian Aircraft Design and Research Institute (XADRI) Xian Aircraft Industries Group (XAC) Baoding Propeller Factory Chengdu Aircraft Industries Group (CHAIG) Changzhou Aero-Engine Factory (CAE) Chengdu Engine Company (CEC) Chinese Helicopter Research and Development Institute (CHRDI) Dongan Engine Company (WJ5/DEC) Harbin Aircraft Industries Group (HAC) Hongdu Aviation Industries Group (HAIG) Shaanxi Aircraft Industries Group (SAC) Shijiazhuang Aircraft Industry Corporation (SAIC) South Aero-Engine Company Zhuzhou Aviation Power Plant Research Institute

8 AEROSPACE SECTOR Harbin Aircraft Industries Group Shenyang Aircraft Corporation; Shenyang Liming Aeroengine Group A320 FALC Xian XAC; XAE; Quingan; AECC COMAC; GE Chengdu CAC; Sichuan Chengfa Hongdu Aviation Industries; Changhe Aircraft; China South Aviation TAECO; GE GAMECO; HAESL Guizhou Aviation Industry Group

9 AEROSPACE SECTOR Foreign companies: AIRBUS A320 FALC in Tianjin - 1 st assembled A320 rolled in May09 11 deliveries in 2009 A320 full wing equipping & testing by AVIC XAC (Xian) 5% of A350 aerostructure in China $200M procurement expected in 2010 & $450M by 2015 BOEING China supplies to all Boeing models B787 Rudder, wing-to-body fairings & fin leading edge panels Active contracts valued at over $2.5B

10 AEROSPACE SECTOR Foreign companies: ROLLS-ROYCE 40yrs in China Close relations with CAAC, other Govt Ministries & AVIC JV s Xi an Aero-components (XRA) & Hong Kong Aero-Engine Services (HAESL) Jt research with Chinese Academy of Science (CAS) GE AVIATION GE Aviation & Unison in Suzhou Structural components; actuation; composites; engine components MRO facilities in Xiamen

11 AIRCRAFT PROGRAMMES C919 Large Jet (156 seat, 168 seat, and 180 seat) First test flight in In service by Investment $8 Billion. 2,000 aircraft over 20yrs Domestic Fuselage Supplier Selected include; Shenyang, Chengdu, Xian, and Hongdu Aircraft Companies 1st Tier Suppliers of Airborne Systems and Power will be from Overseas. 1 st Tier RFI Sent Out 26/2/09 2 nd and 3 rd Tier Selection Next Year.

12 AIRCRAFT PROGRAMMES ARJ Seat Twin Turbofan. First Flight - November 2008 in Service 2010/11 Certification Assisted by Alenia 211 Jets Ordered

13 AIRCRAFT PROGRAMMES

14 OPPORTUNITIES 1 st Tier Systems Selection late 2009 CFM International (GE- Safran JV) Leap-X engine chosen for C919 Value - $10bn Agreed to setup Assembly plant in China 2 nd and 3 rd Tier Systems - Included on the Catalogue COMAC R&D Department

15 OPPORTUNITIES C919 - Selection Process and Criteria:- Foreign suppliers should have a long term view of collaboration with a Chinese Firm. Bid for work as a JV/Cooperation with Chinese Partner (AVIC Company). COMAC will sign major systems and sub-system contracts with 1 st and 2 nd Tier only. Suppliers on ARJ21 will have an advantage

16 OPPORTUNITIES AVIC companies:- keen for further subcontract work from international customers welcome partners to develop product quality, approvals & management systems sourcing problems for aerospace grade materials, fastners etc. provide opportunity for UK suppliers Shaanxi Aircraft company welcome partners to work on improving their cockpit design capability for regional transport aircraft Guizhou Aviation Industry Group want partners on design & development of General Aviation Aircraft

17 Thank you!