The growth of aircraft - PMi-Media · 6 The growth of aircraft manufacturing in low-wage economies...

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2 The growth of aircraft manufacturing in low-wage economies 2005-2009

The growth of aircraft

manufacturing in low-wage

economies 2005-2009

New challenges to, and opportunities for, industries in

the global aerospace supply chain

PMI Media Limited

www.pmi-media.com

61 Davigdor Road,Hove BN3 1RAUKTel: +44 1273 724 238Fax: +44 1273 720 735December 2009

All right reserved. No part or parts of this study may be reproduced, stored in retrieval systems or transmitted in any formor by any means without the prior permission of the publisher. Infringement of any of the above rights will be liable toprosecution under UK civil or criminal law. While ever care has been taken in the compilation of this publication to ensureits accuracy at the time of going to press the publisher cannot be held responsible for any errors or omissions or any lossarising therefrom.

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3 The growth of aircraft manufacturing in low-wage economies 2005-2009

Contents

Introductions, definitions, methodology and author details …………………….……………....... 5Executive summary ……………………………………………………………………………………………………. 9

Part one – Trends in outsourcing aircraft systems, components and equipment workto low-wage economies

1.1 The growing value of aerospace manufacturing work in low-wage economies ………… 131.2 North American/European manufacturers are retaining their technical and marketdominance of supply chain integration ……………………………………………………………………………. 161.3 The impact of wage differentials and currency fluctuations ……………………………………… 181.4 Sector by sector analysis: airliners, rotorcraft, business aircraft, fast jets and militarytransports ………………………………………………………………………………………………………………….. 23

Part two - current capabilities and relationships

2. Africa and the Middle East2.1 Introduction …………………………………………………………………………………………………………….. 272.2 Egypt ………………………………………………………………………………………………………………………. 272.3 Morocco …………………………………………………………………………………………………………………… 272.4 South Africa ………………………………………………………………………………………………………………. 272.5 Tunisia …………………………………………………………………………………………………………………….. 29

3. Central and Eastern Europe3.1 Czech Republic …………………………………………………………………………………………………………… 303.2 Hungary ……………………………………………………………………………………………………………………. 333.3 Poland ……………………………………………………………………………………………………………………… 333.4 Romania ……………………………………………………………………………………………………………………. 363.5 Russia ……………………………………………………………………………………………………………………….. 373.6 Turkey ………………………………………………………………………………………………………………………. 40

4. Far East4.1 China ……………………………………………………………………………………………………………………….. 444.2 India ………………………………………………………………………………………………………………………… 524.3 Indonesia ………………………………………………………………………………………………………………… 534.4 Korea ……………………………………………………………………………………………………………………….. 544.5 Malaysia ……………………………………………………………………………………………………………………. 574.6 Pakistan ……………………………………………………………………………………………………………………. 584.7 Taiwan …………………………………………………………………………………………………………………….. 584.8 Thailand ……………………………………………………………………………………………………………………. 614.9 Vietnam …………………………………………………………………………………………………………………… 62

5. Latin America5.1 Argentina …………………………………………………………………………………………………………………. 635.2 Brazil ………………………………………………………………………………………………………………………….. 635.3 Mexico ………………………………………………………………………………………………………………………… 65

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Part three – aircraft programmes within low-wage aerospace economies6.1 Argentina6.1.1 Lockheed Martin AT-63 Pampa …………………………………………………………………………………… 72

6.2 Brazil6.2.1 Embraer 170-175/190-195 ………………………………………………………………………………………… 726.2.2 Embraer Phenom 100/300 ………………………………………………………………………………………… 756.2.3 Embraer MSJ/MLJ ……………………………………………………………………………………………………… 806.2.4 Embraer Legacy 450/500/600/Shuttle ………………………………………………………………………. 81

6.3 China6.3.1 Eurocopter/CATIC/ST Aerospace EC 120B Colibri ……………………………………………………… 846.3.2 Eurocopter EC175/ HAIG Z15 …………………………………………………………………………………… 846.3.3 AVIC/Commercial Aircraft Corporation of China (ACACC) ARJ21-700 ……………………… 866.3.4 COMAC C919 …………………………………………………………………………………………………………… 90

6.4 Czech Republic6.4.1 Aero Vodochody L-159 T1 ……………………………………………………………………………………….. 91

6.5 India6.5.1 ADA Light Combat Aircraft-Tejas ……………………………………………………………………………. 93

6.6 Korea6.6.1 Korea Aerospace Industries T-50/A-50 Golden Eagle ……………………………………………. 96

6.7 Russia6.7.1 Sukhoi SU 35/SU 30-MKI ……………………………………………………………………………………… 996.7.2 Antonov AN-148 ………………………………………………………………………………………………….. 1016.7.3 Irkut Corporation MC-21 ………………………………………………………………………………………. 1036.7.4 Sukhoi Superjet 100 ………………………………………………………………………………………………. 1046.7.5 Mil Mi-38 …………………………………………………………………………………………………………….. 1086.7.6 Russian Helicopters Sapsan (Mi-34S2) ……………………………………………………………………. 109

Appendix one – major airframe and engine contract wins, 2005-2009 ………………………….. 110

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Introductions, definitions, methodology and author details

Aerospace has always been a global business but in the last few years the nature of its globalmanufacturing footprint seems to have changed. Airliner manufacturing is no longer confined to itstraditional heartlands of North America and Europe and states of the former Communist bloc; majorBoeing and Airbus structures are now increasingly made in Mexico, Brazil, Poland and China.

Soon, the USA and Europe will no longer have a stranglehold on the large aircraft market (see tableone below). China is rapidly becoming a formidable competitor. In November 2009, the deputycommander of Chinese People’s Liberation Air Force (PLA) Ho Weirong announced that the air forcewould be operating a fifth generation fighter within the next eight to ten years. This was the fifthnew Chinese aerospace programme to be announced in 2009. The COMAC C919 190-seat airlinerwas launched in March 2009; the KJ-2000 AWACS aircraft and Xi’an ASN-207 tactical unmanned airsystem (UAS) were unveiled in October 2009 and a 200-tonne class military airlifter was also due tomake its first appearance before the end of the year.

The process of globalisation has taken some strange twists and turns over the last few months.Countries will little tradition of aircraft manufacturing is starting to become important players in theglobal market. Mexico's aerospace related exports have more than tripled since 2004, from $146.2million to $683.2 million last year. Japanese companies are setting up low-wage manufacturingcentres in Vietnam. Malaysia is becoming a global centre of composite manufacturing excellence. Ifyou follow the money, all roads lead to the Middle East, the recent crisis in Dubai notwithstanding.Countries committed to diversifying industries from oil-based economies are rushing into aerospacemanufacturing.

Table one – large aircraft, the next generation

Programme Country of origin Approximate entry

in service

Sukhoi SuperJet Russia 2010

Boeing 787 USA 2010

COMAC ARJ-21 China 2011

AVIC military transport China 2012

Airbus A350 XWB France, Germany, Spain, UK 2013

Embraer KC-390 Brazil 2015

COMAC C919 China 2016

Irkut MC-21 Russia 2016

Airbus A30X France, Germany, Spain, UK 2019

Boeing 737 replacement USA 2019

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The Abu Dhabi-based Strata Manufacturing aircraft composites factory is due to open in late 2010,producing advanced structures for Airbus and ATR. On 23 September 2009 Emivest AerospaceCorporation (EAC) of San Antonio, Texas, USA delivered its first seven-seat SJ30 business jet. TheSJ30 is the first civil jet aircraft to be built by a company with its roots in the Middle East. The SJ30’soriginal developer Sino Swearingen of the USA was taken over by EAC in June 2008. EAC has itsheadquarters in Texas but is a subsidiary of Dubai’s Emivest, or the Emirates Investment andDevelopment PSC.

But it is the growth of aerospace manufacturing in low-wage economies – such as China and Mexico– that is perhaps the most noticeable characteristic of this new era of aerospace globalisation.

Some context is required. Aerospace manufacturers in North America and Europe may beoutsourcing increasing amounts of high-skilled, labour intensive manufacturing to low-wageeconomies but they are retaining their near-monopoly of complete systems work – engines,avionics, fuel, hydraulics, aircraft controls, landing gear – where the real value in an aircraftprogramme lies. The difference between the value of structures and systems is startling. Chinesecompanies registered around $700 million worth of component and structural work on NorthAmerican and European airliner programmes in 2007. In contrast, Honeywell will earn $23 billionfrom supplying its HTF7500-E engine to Embraer’s new MSJ and MLJ business aircraft.

Money, of course, is not the only reason for outsourcing manufacturing capabilities to othercountries.

“In the past, many companies have set up low-cost-country production for machining, and generallyspeaking, this is not an effective strategy,” said Philip Toy, Managing Director of aerospacemanufacturing consultants AlixPartners, quoted recently in Aerospace America. “Machining ofaerospace components is typically highly automated, and so setting up a machining operation inChina or Mexico typically does not pay, once you factor in the logistics. It is possible to make savingsof between 10% to 20% by moving some work to low-cost country production - if it is correctlymanaged,” said Toy.

Spirit AeroSystems Europe chose Kuala Lumpur for its new 242,000sq ft structures manufacturingfacility but Rolls-Royce decided to expand its overseas manufacturing capacity in Singapore andVirginia, USA – rich in mature aerospace technologies but where the wage bill is also relatively high.

While there are plenty of new low cost manufacturing plants in Mexico there are very few in NorthAfrica. While Chinese factories are ramping up production of Airbus and Boeing structures at a rateof 40% a year, in neighbouring India – where wage levels for skilled workers are a fraction of those inChina – civil airline manufacturing activity is in the doldrums. If the globalization process is not allabout money what is it about? Selling aeroplanes via offset agreements is one answer – movingcloser to the fast moving end-user customer base. But this theory, too, fails the China v India test.And Indian airlines will be buying thousands more aircraft than Mexico.

The answer is that companies in the West are outsourcing work to high-wage and low-wageeconomies for different reasons. The “cluster” effect of Singapore, for example, has proved apowerful magnate for US and European companies wanting to build business in an economy whichhas, until now, been seen as the aerospace centre of the Far East.

The recession has also, it seems, acted as a catalyst to moving labour-intensive manufacturing workto low-wage areas. The dollar-Euro exchange rates had encouraged European manufacturers to setup new plants in Mexico. But by setting up new businesses in low wage areas - such as China inparticular - will European and US aerospace companies help to develop a new generation of

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competitors, skilled in advanced manufacturing methods and with access to a huge domestic aircraftoperating market? Where is the real value in the supply chain? And if low-wage economies learn theskills to develop their own advanced programmes will this pose a threat or an opportunity toWestern suppliers? These are some of the main issues this report seeks to answer.

Definitions

Defining a “low-wage” economy is complex (see section one). But the author has identified thefollowing countries as featuring both an aerospace capability and wage levels which offer (seesection one) a competitive advantage to rates experienced by companies based in Europe and NorthAmerica.

* Africa and the Middle East Egypt, Morocco, South Africa, Tunisia* Central and Eastern Europe Czech Republic, Hungary, Poland, Romania, Russia, Turkey* Far East China, India, Indonesia, Korea, Malaysia, Pakistan, Taiwan, Thailand, Vietnam* Latin America Argentina, Brazil, Mexico.

As table seven shows there are wide differences in the average rate of salaries for qualifiedengineers in these countries, generally with salaries in East and Central Europe being the “mostcompetitive” for skilled engineers.

“Aircraft manufacturing” is defined as the full range of systems, structures, components, assembliesand equipment, including avionics and engine systems, below that of the main airframe and engineintegrators (Airbus, Boeing, and Lockheed Martin).

All aircraft types have been considered, above the size of general aviation aircraft. Small turbopropaircraft have not been included but all jet aircraft, including single-engine jets, have beenincorporated into the study.

The market has been further broken down into:

Airliners (including regional jets)

Military fast jets

Military transports, maritime patrol aircraft, refuellers

Rotorcraft

Business jets

Engines

This report concentrates solely on the aircraft and engine manufacturing sectors. Maintenance,repair and overhaul (MRO), weapon and space systems have not been included.

Methodology

The author has taken a “top-down” and “bottom-up” approach to estimating the size of the aircraftsystems, equipment and structures market. Country profiles relying on, where available, nationalaerospace manufacturing association figures have been collated alongside data collected by PMIMedia on individual contract awards 2005-2009.1 This work tracks the supply chain of every major

1See Aviation Supply Chain Intelligence, www.PMI-Media.com

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aircraft in production today, highlighting each major contract win in terms of value, location andexpertise.

This is an imperfect measure because it does not take into account legacy workloads (that is,contracts won before 2005), accurate predictions of aircraft orders and deliveries or where work ismoved internally within a company from one location to another. However, it is perhaps the mostaccurate way of estimating values because there is enough data within the public domain tounderstand broadly the overall value of work even if actual figures are not given. Thus when there isno value given for a contract award the author has estimated the value of the deal by comparing itto similar work where values have been given.

All relevant data has been sourced.

Author details

Philip Butterworth-Hayes is a consultant and writer on global aviation affairs with a particularinterest in the aircraft manufacturing market. His aviation background includes posts as the directorof communications and strategy at the Civil Aviation Navigation Organization(CANSO) in Amsterdam(2006-2007), the Manager of Jane’s Air Transport Division and lead consultant for Jane’s InformationGroup on civil aviation consultancy studies (1987-1992), founding editor of Jane’s AircraftComponent Manufacturers, Jane's World Airlines and Jane's Airport Review, a former editor ofInteravia Aerospace Review, Airports International, Jane’s Defence Industries, Jane’s Military Aircraftand several unmanned air system publications. He has been an aviation consultant to BBC Televisionand Time-Life books. He currently writes on aviation manufacturing for Wall Street Journalaerospace sponsored supplements. He has also authored the official Airbus publication to celebratethe first flight of the A380 and edited the Farnborough Air Show catalogue for three events.

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Executive summary

During 2009 there has been a substantial increase in the amount of new contracts for aircraftsystems, components and equipment placed with companies based in low-wage economies.

During 2009 an estimated $31,555 million of new business was awarded to the global aviationsupply chain, of which $9,212 million was spent with companies based in low wage economies of theworld. This represents 29.2% of the total market in new systems, components and equipment work,a very steep growth rate over the 6.2% share recorded in 2008. Most of this work takes place in theairliner sector, which is responsible for around 73% of the value of the total aviation supply chain.

But the value of work won by companies in low-wage economies on European and North Americanaircraft programmes is worth approximately the same as the work won by Western suppliers on newaircraft programmes pioneered by companies in low-wage economies (China, Brazil, Korea, Turkeyinter alia). The value to Western suppliers of work on aircraft originating in low wage economiesbetween 2005 and 2009 was $25,325 million, whereas suppliers in low-wage economies won$23,564 million of work over the same period from aircraft manufacturers in North America andEurope over the same time.

Total value of new contracts for aircraft systems, components and equipment

Airliners Rotorcraft Businessaircraft

Fast jets Militarytransports

Totalspend

2005 6,288 176 213.5 859 560 8,096.5

2006 1,735.5 754 898 1,450 1,013 5,850.5

2007 42,280 6,784 1,598 4,450 1,143 56,255

2008 39,223 6,157 13,850 3,240 890 63,360

2009 22,982 4,066 650 2,691 1,166 31,555

Note: All figures in millions of US dollars, valued at the time of contract award.

The number of low-wage economy countries now increasing their share of overall global aerospacespend is too many for it to be an isolated or a local phenomenon. Countries where the growth trend- in terms of turnover and employment is particularly strong – include:

Poland

Turkey

India

Malaysia

Pakistan

Vietnam

Brazil

Mexico

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This list does not include China, which is growing its aerospace turnover at around 40% a year butrestructuring its manufacturing industry to more closely align new production plants with markets.The workforce is currently being reduced from around 400,000 as workers involved in non-coreaerospace activities are being reassigned.

But there are few signs that low-wage economy companies are starting to move their expertise upthe supply chain. Until now the real value in the supply chain has been with systems integrators -such as fuel, pneumatic, electrical and environmental control systems, markets which are stilldominated by the US majors Goodrich, General Electric and Parker, inter alia.

Chinese companies registered around $700 million worth of component and structural work onNorth American and European airliner programmes in 2007. In contrast, Honeywell will earn $23billion from supplying its HTF7500-E engine to Embraer’s new MSJ and MLJ business aircraft.

The setting up of operations in low-wage economies has both a positive and negative impact onmanufacturing operations in traditional aerospace countries which, from the result of this study atleast, suggests they tend to cancel each other out. In terms of money, at least, the loss ofmanufacturing work in Europe and North America to countries such as Brazil and China is balancedby the new work created on aircraft programmes emanating from these countries.

The value to Western companies of work on aircraft programmes originating in low-wageeconomies

Brazil Embraer Total value 2005-2009

Regional airliners 12,973 87

Business jets 45,060 24,863

China COMAC

Airliners 16,885 350

Czech Republic Aero Vodochody

L-159 1,384 -

India HAL

Tejas 5,148 -

Russia Airliners 6,020 3,969

Helicopters 25 25

Note – values in US million

It is unlikely that the next generation of large aircraft being introduced into the market by companiesbased in low wage economies will feature systems integrated by indigenous suppliers of avionics,fuel systems, flight management systems etc. Or, at least, if they do they will struggle to develop anaircraft which will be competitive with Airbus and Boeing types.

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The barriers to entry for newcomers into the “whole aircraft systems” market are large and growingdaily. The next generation of airliners will require not just new engine concepts such as gearedturbofans and open-rotors – offering 15% to 20% improvements in fuel burn over current types –but all-electric actuation systems and substantially lighter but more powerful and reliable airconditioning, fuel, lighting, electrical generating systems.

The technology behind these systems will be available to only a handful of Western suppliers whoare heavily involved in the final stages of pre-competitive research studies with national andinternational research authorities.

The wage differentials between the richest and poorest nations of the world are in a state ofconstant flux as the strength or weakness of the dollar (particularly against the Euro) can be as muchof a decisive competitive factor as the pay and conditions of local employees. Mexico has become afavoured destination for start-up and relocating aerospace companies because the savings peremploys over US rates can be in excess of US$30,0002. According to French aerospace companySAFRAN every time the dollar falls a cent against the Euro it costs the company EUR22 million. In themiddle of 2009 SAFRAN was reportedly paying its Mexican workers US$560 a month and itsengineers between $925 and $1,390 a month.

The aviation systems, structures and components market 2005-2009 for airliners

Total spend Low wagemanufacturing

Low wage manufacturingas a percentage

2005 6,288 1,047 16.6

2006 1,735.5 427 24.6

2007 42,280 1,657 3.9

2008 39,223 3,720 9.5

2009 22,982 8,060 35.0

In the 2009 airliner systems, structures and components market the new programmes beingdeveloped in China and Russia probably explained much of this rise in work-share from low-wagecompanies but there were other factors, too.

On programmes originating in the West, low-wage companies featured the following programmewins

The A350 XWB - Airbus signed a contract with Chinese partners to create a joint venture tomake carbon composite parts in China for its A350 XWB and A320 aircraft. Airbus's Chinesebusiness will hold a 20% stake in the joint venture, based in Harbin, and China's HarbinAircraft Industry Group will hold a further 50% stake, while other local players HAI, AviChinaand HELI will each own 10%. Fokker Elmo has set up a plant in China to build wiring for theTrent XWB. Esterline has a new facility in Mexico supplying vanes to the Trent XWB.

Bombardier CSeries – wiring Will be made in China by Fokker Elmo for the project.

2Source: MexicoNow, Mexico’s Aeronautical Industry, June 2009

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Airbus and Bombardier airliners - Composites Technology Research Malaysia (CTRM) hassigned a 3.5 billion ringgit, $1.03 billion for 20 years with Goodrich to produce nacellecomponents for a range of airliners.

Boeing 737 – flaps will be made by MHIVA Aerospace Vietnam Co., Ltd. (MHIVA) of Hanoi, asubsidiary of Mitsubishi Heavy Industries, Ltd. (MHI) The new plant is situated at the ThangLong Industrial Park (TLIP) approximately 16 kilometres northwest of central Hanoi andoccupies 4,500 square meters (m2) in floor area within the 19,100sq m plant. Initially, theflaps for the Boeing 737 will be shipped to MHI's Nagoya Aerospace Systems Works forpainting and final inspection, and then delivered to the Renton, US site. Once productiongathers momentum, MHIVA will deliver the flaps to the US directly, according to thecompany.

Mitsubishi MRJ70/90 - Aerospace Industrial Development Corporation (AIDC) of Taiwan ismaking slats, flaps, belly fairings, rudders as well as horizontal stabiliser rotating blades forthe aircraft.

There has been substantial investment by companies in low-wage economies into new aerospacestructures and materials, especially composites. Brazil, the Czech Republic, China, Malaysia, Mexicoand Turkey all have advanced composite manufacturing facilities.

The most successful of these are companies who have been able to combine development of anindigenous composite manufacturing capability with a national strategic approach to accessing themarket.

Thus Turkey has obtained more than $3 billion worth of structures work on the F-35, with TAIopening a new 74,000sq ft facility to make at least 400 composite subassemblies in the low rateinitial production (LRIP) phases of the programme.

And Malaysia’s government investment on Composites Technology Research Malaysia (CTRM)Incorporated has seen the company develop substantial business from Airbus, Boeing and Goodrich

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1. Trends in outsourcing aircraft systems, components and equipment work to low-wageeconomies

1.1 The growing value of aerospace manufacturing work in low-wage economies

During 2009 there has been a substantial increase in the amount of new contracts for aircraftsystems, components and equipment placed with companies based in low-wage economies.

During 2009 an estimated $31,555 million of new business was awarded to the global aviationsupply chain (see table two), of which $9,212 million was spent with companies based in low wageeconomies of the world (see table three). This represents 29.2% of the total market in new systems,components and equipment work, a very steep growth rate over the 6.2% share recorded in 2008(see table four). Most of this work takes place in the airliner sector, which is responsible for around73% of the value of the total aviation supply chain.

Was this jump in outsourcing work the result of a statistical quirk or does it signify a more generaltrend of increased aerospace manufacturing work in low-wage economies? The statistical picture isconfusing because of the widely-fluctuating amounts of work being assigned to low wage economycountries (see table three) over the last few years and the fact that one or two major contracts (suchas the JSF work assigned to Turkey) can distort the overall picture.

This study, however, suggests there has yet to be a fundamental shift within the market which couldspell a substantial change to the entire dynamics of the global aerospace supply chain. There are anumber of factors to suggest this.

The value of work won by companies in low-wage economies on European and North Americanaircraft programmes is worth approximately the same as the work won by Western suppliers on newaircraft programmes pioneered by companies in low-wage economies (China, Brazil, Korea, Turkeyinter alia). The value to Western suppliers of work on aircraft originating in low wage economiesbetween 2005 and 2009 was $25,325 million (see table six), whereas suppliers in low-wageeconomies won $23,564 million of work over the same period from aircraft manufacturers in NorthAmerica and Europe over the same time(see table five).

Table two: Total value of new contracts for aircraft systems, components and equipment

Airliners Rotorcraft Businessaircraft

Fast jets Militarytransports

Totalspend

2005 6,288 176 213.5 859 560 8,096.5

2006 1,735.5 754 898 1,450 1,013 5,850.5

2007 42,280 6,784 1,598 4,450 1,143 56,255

2008 39,223 6,157 13,850 3,240 890 63,360

2009 22,982 4,066 650 2,691 1,166 31,555

Note: All figures in millions of US dollars, valued at the time of contract award.

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But low-wage manufacturing companies are now starting to invest in high-wage areas. For example,at the end of July 2008 Brazil’s Embraer said it would invest EUR148 million in two new plants inPortugal to make wings and tailpieces for export. The two plants will be based in Evora in the southof the country. One, which will cost EUR100 million, will build large metallic parts for aircraft, such aswings, while the other will work with composite materials for tailpieces. The wing production plantshould start producing in 2011, and the second plant would become operational in 2012.

It is true that the number of low-wage economy countries now increasing their share of overallglobal aerospace spend is too many for it to be an isolated or a local phenomenon. Countries wherethe growth trend - in terms of turnover and employment is particularly strong – include:

Poland

Turkey

India

Malaysia

Pakistan

Vietnam

Brazil

Mexico

This list does not include China, which is growing its aerospace turnover at around 40% a year butrestructuring its manufacturing industry to more closely align new production plants with markets.The workforce is currently being reduced from around 400,000 as workers involved in non-coreaerospace activities are being reassigned.

But there are few signs that low-wage economy companies are starting to move their expertise upthe supply chain. Until now the real value in the supply chain has been with systems integrators -such as fuel, pneumatic, electrical and environmental control systems, markets which are stilldominated by the US majors Goodrich, General Electric and Parker, inter alia.

As noted in the introduction, Chinese companies registered around $700 million worth ofcomponent and structural work on North American and European airliner programmes in 2007. Incontrast, Honeywell will earn $23 billion from supplying its HTF7500-E engine to Embraer’s new MSJand MLJ business aircraft.

Table three: Total value of new contracts placed in low-wage economies for aircraft systems,components and equipment

Airliners Rotorcraft Businessaircraft

Fast jets Militarytransports

Totalspend

2005 1,047 - - - - 1,047

2006 427 - 1.9 - - 428.9

2007 1,657 3,600 700 3,000 - 8,957

2008 3,720 160 40 - - 3,920

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2009 8,060 1,110 - 42 - 9,212

Note: All figures in millions of US dollars, valued at the time of contract award.

Table four: Aircraft systems, components and equipment manufacturing in low-wage economies

Totalspend

Low wagemanufacturing

Percentage spendof the market

2005 8,096.5 1,047 12.9

2006 5,850.5 428.9 7.3

2007 55,555 8,257 15.9

2008 63,360 8,100 6.2

2009 31,555 9,212 29.2

Note: All figures in millions of US dollars, valued at the time of contract award.

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1.2 North American/European manufacturers are retaining their technical and market dominanceof supply chain integration

It is unlikely that the next generation of large aircraft being introduced into the market by companiesbased in low wage economies (see table one) will feature systems integrated by indigenous suppliersof avionics, fuel systems, flight management systems etc. Or, at least, if they do they will struggle todevelop an aircraft which will be competitive with Airbus and Boeing types.

The barriers to entry for newcomers into the “whole aircraft systems” market are large and growingdaily. The next generation of airliners will require not just new engine concepts such as gearedturbofans and open-rotors – offering 15% to 20% improvements in fuel burn over current types –but all-electric actuation systems and substantially lighter but more powerful and reliable airconditioning, fuel, lighting, electrical generating systems.

The technology behind these systems will be available to only a handful of Western suppliers whoare heavily involved in the final stages of pre-competitive research studies with national andinternational research authorities.

NASA, for example, suggests that by implementing technologies to replace heavy hydraulic flightcontrol systems with light electric units will cut the fuel bill by 9%. According to some manufacturers'figures, by using distributed power systems, the number of electrical components can be cut by 35%;wire segments by 40%; weight can be reduced by 40%; installation time reduced by 60%; andreliability improved by 20%.. According to Hamilton Sundstrand “The benefits (of distributedelectrical power management system)...will be seen across a number of areas with estimatedreductions in take-off weight (3%), life cycle-costs (4%) and maintenance (5%).”

Replacing separate power generation/storage systems - batteries, emergency power, tank and cargobay inerting systems, APUs - with new technology fuel cells will reduce engine off-take requirementsby around 3% of fuel burn in the cruise, according to Airbus.

“On average, gas turbine APUs are 15% efficient at converting jet fuel into electricity. In contrast,fuel cell APUs will be 60% efficient, which will reduce by three quarters the amount of fuel anairplane uses to generate ground power,” says Boeing.

It is difficult to see how companies entering this market now will have the time, resources ortechnical expertise to catch up with the West in the next 10 years in these domains. China, with300,000 highly skilled engineers entering the market every year, might come close, however.

Boeing has had an uneven experience of outsourcing large amounts of its supply chain to partnersoutside North America and now both Boeing and Airbus want to deal with fewer, but larger andmore capable, partners. This militates again towards Western integrators playing larger roles inmanaging systems integration work, and in particular US companies. The large amount of workobtained by US suppliers on the Airbus A350 XWB (see section 1.4) is in some large measure downthe dominance of these manufacturers in technology and management of suppliers, especially as aresult of the experience these manufacturers have gained in developing lighter but more efficientsystems for the Boeing 787.

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Table five: Aircraft systems manufacturing contract win values by companies based in low-wageeconomies

2005 2006 2007 2008 2009 Total

Mexico - - 200 - - 200

Brazil - 1.9 - - - 1.9

China 600 397 800 2,950 4,090 8,837

Russia 200 20 - 118 2,810 3,148

Poland - - 600 160 - 760

Korea 200 - - - - 200

Turkey 47 - 6,000 - 42 6,0893

Thailand - 10 - - - 10

Czech Rep - - 57 - - 57

Malaysia - - - 650 1,030 1,680

Indonesia - - - 42 - 42

Vietnam - - - - 290 290

Taiwan - - - - 450 450

India - - 700 - 500 1,200

Total 1,047 428.9 8,357 3,920 9,212 22,864.9

There has been substantial investment by companies in low-wage economies into new aerospacestructures and materials, especially composites. Brazil, the Czech Republic, China, Malaysia, Mexicoand Turkey all have advanced composite manufacturing facilities.

The most successful of these are companies who have been able to combine development of anindigenous composite manufacturing capability with a national strategic approach to accessing themarket.

Thus Turkey has obtained more than $3 billion worth of structures work on the F-35, with TAIopening a new 74,000sq ft facility to make at least 400 composite subassemblies in the low rateinitial production (LRIP) phases of the programme.

And Malaysia’s government investment on Composites Technology Research Malaysia (CTRM)Incorporated has seen the company develop substantial business from Airbus, Boeing and Goodrich.

3Includes $3,000 million of licensed assembly contracts

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1.3 The impact of wage differentials and currency fluctuations

There are broadly three types of country offering new low-wage opportunities to the globalaerospace supply chain:

Former Communist countries with substantial experience in developing and producingaircraft in large numbers, now restructuring their industries to exploit global marketopportunities while, in some cases, re-building indigenous military capabilities with networkenabled capabilities (China, Russia and the countries of central and eastern Europe)

Countries which have an established tradition of aerospace industry, mainly through thelicensed assembly of Western products or having set up joint ventures with Westerncompanies, are now seeking to expand their capabilities further within the global market(Turkey, Korea, and South Africa).

Countries with little or no aerospace tradition but whose governments are promoting newaerospace manufacturing initiatives (Mexico, Malaysia, and Vietnam) mainly thoughattracting new investment from established companies.

For countries wanting to access the market for the first time the strategic route of entry is normally:

Begin system assembly under a licence agreement with foreign companies and develop asupport MRO capability to maintain civil and military aircraft bought from Westernmanufacturers

Begin airframe parts manufacturing and subassemblies

Start sub-assembly development

Start system development by indigenous capabilities.

However, the road is not always straight. Indonesia developed a strong indigenous capability toassemble aircraft in the 1990s, but since then economic problems have forced a cut-back in itsstrategy. The amount of government funding required to build a competitive edge in this business issubstantial and needs to be applied consistently over 10 to 15 years – relying on low wages is simplyno longer enough.

Anyway, the wage differentials between the richest and poorest nations of the world are in a stateof constant flux as the strength or weakness of the dollar (particularly against the Euro) can be asmuch of a decisive competitive factor as the pay and conditions of local employees. Mexico hasbecome a favoured destination for start-up and relocating aerospace companies because the savingsper employs over US rates can be in excess of US$30,0004. According to French aerospace companySAFRAN every time the dollar falls a cent against the Euro it costs the company EUR22 million. In themiddle of 2009 SAFRAN was reportedly paying its Mexican workers US$560 a month and itsengineers between $925 and $1,390 a month.

When the first major A350 XWB contracts were being awarded at the start of 2008 Airbusmanufacturing managers were keen to mitigate the problem of a strong Euro. As Ake Svensson,then president of the European AeroSpace and Defence industries’ association (ASD Europe)highlighted at the association’s July 2008 AGM… .“the current situation to leading to a loss of skilled

4Source: MexicoNow, Mexico’s Aeronautical Industry, June 2009

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employment in Europe and destroying future job opportunities…Despite efforts to develop newproduction strategies and encourage greater productivity, each 10 cents devaluation of the USdollar against the euro produces a loss of margin of €1 billion to majors such as Airbus, withproportional losses being inflicted throughout the supply chain of at least another half billion.”

While Airbus retained the most valuable integration and final assembly work in Europe it lookedincreasingly outside Europe for sub-systems and structural work. In January 2009 Airbus and agroup of Chinese companies established a joint venture manufacturing centre in Harbin, China tomanufacture Airbus A350 XWB composite parts.

Does one new job in Mexico or China created by Boeing or Airbus mean one lost job in Seattle orToulouse?

Not necessarily.

When Cessna, based in Wichita, Kansas, opened a 62,000sq ft wire assembly in Mexico in 2006 itgave its employees retraining opportunities and offered relocation packages. It actually expandedoverall its US workforce during the year. Creating new jobs in low-cost economies argue somecompanies, allows the organisation to become more competitive and retain workforce levels in high-wage areas of the world.

The setting up of operations in low-wage economies has both a positive and negative impact onmanufacturing operations in traditional aerospace countries which, from the result of this study atleast, suggests they tend to cancel each other out. In terms of money, at least, the loss ofmanufacturing work in Europe and North America to countries such as Brazil and China is balancedby the new work created on aircraft programmes emanating from these countries.

Table six: The value to Western companies of work on aircraft programmes originating in low-wage economies

Brazil Embraer Total value 2005-2009

Regional airliners 12,973 87

Business jets 45,060 24,863

China COMAC

Airliners 16,885 350

Czech Republic Aero Vodochody

L-159 1,384 -

India HAL

Tejas 5,148 -

Russia Airliners 6,020 3,969

Helicopters 25 25

Note – this does not take into account joint venture programmes such as the Lockheed Martin AT-63Pampa, Eurocopter EC175/ HAIG Z15 etc

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The evidence of this study at least seems to suggest that North American and European countriesare retaining the high-value programme work and exporting the lower-value structure andcomponents work to organisations on low wage economies and that this process, probably as aresult of the financial recession, accelerated rapidly in 2009.

Table seven: comparing engineering salaries worldwide5

Country NetMonthlyIncomeconstant2005 US$[a] [d]

Notes andsources

Compulsorydeductions

WeeklyHours

U.S.

average

salary

PPP $

4,710

$

4,710

Chemical engineer, Full-time and part-time employees,

2005. U.S. Department of Labor,

24% 40.0

Taiwan

average

income

PPP $

4,070

$

2,179

Full-time and part-time employees, 2004. Petroleum and

natural gas engineer. National Statistics Republic of China,

13% 41.4

UK median

salary

PPP $

3,832

$

4,225

Chemical engineer, April 2004. UK Employment

Department,

30% 36.8

Brazil

average

income

PPP $

3,687

$

1,481

Employees, petroleum and natural gas engineer, Dec 2004.

Ministerial do Trabalho e da Previdência Social,

20% 44.0

Australia

average

income

PPP $

3,375

$

3,312

Chemical engineer, May 2004. Normal hours from collective

agreements. Australian Bureau of Statistics.

25% 38.9

Germany

average

salary

PPP $

3,146

$

3,397

Chemical engineer, Minimum per month, 2005, normal

hours of work. Federal Statistical Office of Germany,

35% 37.5

Canada

average

income

PPP $

2,967

$

2,965

Power distribution and transmission engineer, 2005.

Statistics Canada,

36% 31.5

Korea

average

salary

PPP $

2,762

$

2,190

Excl. overtime and bonus, June 2005. All engineers. Korea

Ministry of Labour,.

11% 39.8

Portugal

average

salary

PPP $

2,594

$

2,080

Chemical engineers, 2003. Instituto Nacional de Estatística, 27% 38.7

Peru

average

PPP $ $ Employees, power distribution and transmission engineer,

June 2005. Men only. Instituto Nacional de Estadística e

24%

5Source: http://www.worldsalaries.org/engineer.shtml

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salary 2,560 1,176 Informatica,

Finland

average

salary

PPP $

2,544

$

3,038

Chemical engineer, normal hours of work, 2004. Men only.

Women make 3,540 euros per month. Statistics Finland,

36% 37.9

Thailand

average

salary

PPP $

2,369

$ 756 Chemical engineer. Men employees, 2005. Women make

30,000 bahts per month. Thailand National Statistical Office,

7% 48.0

Italy

average

salary

PPP $

2,332

$

2,518

Power distribution and transmission engineer, normal hours

of work, 2005. Istituto Nazionale di Statistica

36% 38.0

Japan

average

salary

PPP $

2,152

$

2,530

Excl. overtime and bonus, 2005. System engineer. Men

only; women: 293,000 yens/month. Private establishments

with 10 or more regular employees. Japan Statistical

Yearbook

17%

Kuwait

average

income

PPP $

2,104

$

2,627

Power distribution and transmission engineer. Men

employees, 2004. Kuwait Ministry of Planning,

0% 42.0

Hungary

average

salary

PPP $

2,055

$

1,304

Chemical engineers, May 2005. Hungarian Central Statistical

Office,

45%

Singapore

average

salary

PPP $

1,889

$

1,731

Chemical engineer, employees, private sector, 2004.

Ministry of Manpower,

22%

Austria

average

salary

PPP $

1,882

$

1,499

Chemical engineer, 2001. Men only. Austrian Central

Statistical Office (ÖSTAT),

32% 38.0

Philippines

average

salary

PPP $

1,827

$ 406 Employees, chemical engineer, 2004. National Statistics

Office,

21%

Mexico

average

income

PPP $

1,562

$

1,081

Employees, chemical engineer, 2002. Instituto Nacional de

Estadística, Geografía e Informatica (INEGI),

16% 51.0

Czech

Republic

average

income

PPP $

1,540

$

1,006

Chemical engineer, Excl. bonuses, 2005. Czech Statistical

Office,

29% 36.9

Latvia

average

income

PPP $

1,397

$ 621 Chemical engineer, adult full-time and part-time

employees, 2005. Central Statistical Bureau of Latvia,

29% 39.7

Slovakia

average

PPP $ $ 699 Employees, chemical engineer, 2004. Štatistický úrad 22% 32.6

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income 1,359 Slovenskej republiky,

Poland

average

income

PPP $

1,240

$ 664 Employees, power distribution and transmission engineer,

2004. Poland Central Statistical Office,

35% 41.0

China

average

salary

PPP $

1,076

$ 252 Employees, power distribution and transmission engineer,

2005. National Bureau of Statistics of China,

8%

Lithuania

average

salary

PPP $

1,012

$ 385 Employees, power distribution and transmission engineer,

men, 2002. Statistics Lithuania,

29%

Russia

average

salary

PPP $

813

$ 325 Employees, petroleum and natural gas engineer, men, 2004.

Federal State Statistics Office,.

13% 40.0

Romania

average

salary

PPP $

712

$ 365 Chemical engineer. Men employees, 2005. Women make

1,384 new lei per month. Romania National Institute of

Statistics,

30% 38.8

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1.4 Sector by sector analysis: airliners, rotorcraft, business aircraft, fast jets and militarytransports

The extraordinary rise in the value of contracts awarded to companies in low-wage economies in2009 compared with 2008 can partly be explained by the emergence of new programmes fromChina and Russia.

In terms of aircraft systems, structures and components contract awards, 2007 was the year of A350XWB and the Boeing 787 (see appendix one), 2008 the year of the A350 XWB, Bombardier CSeriesand Mitsubishi MJ 70/90 and 2009 was dominated (still) by A350 XWB and Bombardier CSeriescontract awards supplemented by COMAC C919 and Irkut MC-21 work.

Table eight: The aviation systems, structures and components market 2005-2009 for airliners

Total spend Low wagemanufacturing

Low wage manufacturingas a percentage

2005 6,288 1,047 16.6

2006 1,735.5 427 24.6

2007 42,280 1,657 3.9

2008 39,223 3,720 9.5

2009 22,982 8,060 35.0

The new programmes from China and Russia probably explained much of this rise in work-sharefrom low-wage companies but there were other factors, too.

On programmes originating in the West, low-wage companies featured the following programmewins

The A350 XWB - Airbus signed a contract with Chinese partners to create a joint venture tomake carbon composite parts in China for its A350 XWB and A320 aircraft. Airbus's Chinesebusiness will hold a 20% stake in the joint venture, based in Harbin, and China's HarbinAircraft Industry Group will hold a further 50% stake, while other local players HAI, AviChinaand HELI will each own 10%. Fokker Elmo has set up a plant in China to build wiring for theTrent XWB . Esterline has a new facility in Mexico supplying vanes to the Trent XWB.

Bombardier CSeries – wiring will be made in China by Fokker Elmo for the project.

Airbus and Bombardier airliners - Composites Technology Research Malaysia (CTRM) hassigned a 3.5 billion ringgit, $1.03 billion for 20 years with Goodrich to produce nacellecomponents for a range of airliners.

Boeing 737 – flaps will be made by MHIVA Aerospace Vietnam Co., Ltd. (MHIVA) of Hanoi, asubsidiary of Mitsubishi Heavy Industries, Ltd. (MHI) The new plant is situated at the ThangLong Industrial Park (TLIP) approximately 16 kilometers northwest of central Hanoi andoccupies 4,500 square meters (m2) in floor area within the 19,100sq m plant. Initially, theflaps for the Boeing 737 will be shipped to MHI's Nagoya Aerospace Systems Works forpainting and final inspection, and then delivered to the Renton, US site. Once production

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gathers momentum, MHIVA will deliver the flaps to the US directly, according to thecompany.

Mitsubishi MRJ70/90 - Aerospace Industrial Development Corporation (AIDC) of Taiwan ismaking slats, flaps, belly fairings, rudders as well as horizontal stabiliser rotating blades forthe aircraft.

During 2009 there has also been a dramatic increase in the amount of work on rotorcraftprogrammes being undertaken by low-wage aerospace companies. While the launch of the RussianHelicopters Sapsan (Mi-34S2) accounts for some of this increase Sikorsky has outsourcedconsiderable amounts of structural work to central European suppliers and others. In 2009 India’sTata Advanced Systems and Sikorsky signed an agreement for the Indian enterprise to build cabinsfor the S-92 helicopter at a greenfield site in Hyderabad, and is due to begin deliveries from late2010. This follows on from earlier agreements with Aero Vodochody to produce S-76 structures(more than 30 % out of a total of 8,500 parts of the helicopter assembly are produced by themanufacturer, with the rest, around 200, being sourced mainly by US and Canadian subcontractors)and Poland’s PZL Mielec. The first Black Hawk cabin produced at the Mielec facility was rolled out inMarch 2009. The first cabin was built for the S-70i while the second will be assembled into a USArmy UH-60M. Delivery of the first S-70i helicopter from Mielec is expected to occur by the end of2011. Production is expected to ramp up to as many as 36 S-70i helicopters per year.

Poland has become a centre of excellence for helicopter structures from Western suppliers followingdecades of producing helicopters for Warsaw Pact countries. PZL-Swidnik and AgustaWestland havebeen co-operating for over 10 years with production of the AgustaWestland Grand, A119 Koala,A109 Power, A109 LUH and AW139 airframes all being carried out in Poland, with over 1000 jobs atits Swidnik plant being supported by AgustaWestland programmes.

Table nine: The aviation systems, structures and components market 2005-2009 for rotorcraft

Total spend Low wagemanufacturing

Low wage manufacturingas a percentage

2005 176 - 0

2006 754 - 0

2007 6,784 3,600 53

2008 6,157 160 2.6

2009 4,066 1,110 27

In the business jet market most of the activity underway by companies based in low wageeconomies is centred on Brazil’s Embraer and associated Brazilian concerns alongside US business jetmanufacturers who have relocated to Mexico. China, Russia and the countries of the formerCommunist bloc have made little headway in this market – perhaps understandable given the lack ofa business aircraft tradition and the current volatility of the market. However, this could soonchange, given the relatively low barriers of entry into the personal and very light jet market in termsof technology and financing, and new entrants from the Far East into this market should be expectedonce the current depressed economic conditions improve.

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Table ten: The aviation systems, structures and components market 2005-2009 for businessaircraft

Total spend Low wagemanufacturing

Low wage manufacturing asa percentage

2005 213.5 - 0

2006 898 1.9 0.2

2007 1,598 700 43.8

2008 13,850 40 0.3

2009 650 - 0

The drive by India, Brazil, Argentina, Korea and Taiwan to develop an indigenous fast-jet capabilityhas provided plenty of work for Western manufacturers – joint-programmes between nationalaerospace champions in low-wage economies with legacy suppliers in the West have, in general,produced aircraft closer to the original specifications and budgets than projects built aroundindigenous engines, avionics and weapon systems. China’s development of a robust third-generationfighter with the performance approximating an early F-16 suggests an impressive leap in capabilitiesand, for the first time, genuine competition in export markets beyond legacy suppliers withinEurope, North America and Russia.

Table eleven: The aviation systems, structures and components market 2005-2009 for fast jets

Total spend Low wagemanufacturing

Low wage manufacturing asa percentage

2005 859 - 0

2006 1,450 - 0

2007 4,450 3,000 67

2008 3,240 - 0

2009 2,691 42 0.1

Companies have yet to make an impact on the global military transport market – outside thelicensed built assembly of small transports now obsolete in the West. However, this will change withthe development of an indigenous 200-tonne Chinese military transport – due to fly before the endof 2009 and a potential new military programme in Brazil.

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Table twelve: The aviation systems, structures and components market 2005-2009 for militarytransports

Total spend Low wagemanufacturing

Low wage manufacturing asa percentage

2005 560 - 0

2006 1,013 - 0

2007 1,143 - 0

2008 890 - 0

2009 1,166 - 0

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2. Africa and the Middle East

2.1 Introduction

North Africa combines low labour costs, a skilled workforce and a Francophone population withclose proximity to major European manufacturing centres. French structures company Latecoere willbe employing 700 skilled staff by the end of 2009 in its manufacturing plant near Tunis, whileSnecma Morocco Engine Services (SMES), a joint venture between SAFRAN and Royal Air Maroc, isalso growing rapidly.

Links across the Mediterranean have been boosted recently by the July 2008 formation of ”TheUnion for the Mediterranean”, an initiative by French president Nicolas Sarkozy to strengtheneconomic ties between 43 member nations surrounding the sea.

Abu Dhabi, Dubai and Saudi Arabia are rapidly developing aerospace businesses to support new civiland military aircraft fleets and developing their own indigenous aerospace manufacturingcapabilities. But they cannot be regarded as “low-wage” manufacturing centres.

2.2 Egypt

Egypt’s major aerospace manufacturer is the Arab Organization for Industrialization (AOI), acompany, whose core business is military systems, including the construction and assembly ofarmoured vehicles. The AOI subsidiary Arab British Helicopter Company (ABHCO) is an Anglo-Italian-Egyptian joint venture which manufactures the Westland Gazelle under licence in Egypt.AgustaWestland controls half of the company.

2.3 Morocco

Morocco is vying with Tunisia to become a new low-wage aerospace manufacturing centre in muchthe same way Mexico become a favoured base for North American suppliers. SAFRAN has set upSnecma Morocco Engine Services (SMES), a joint venture between Snecma Services (with 51%) andRoyal Air Maroc (49%), to handle the CFM56-7 engine tests and repairs.

Probably the largest manufacturer is Atlas Productions of Tangier, a supplier of position sensors andbrake measurement units. In 2009 Atlas was acquired by CIRCOR Aerospace Products of the USAwhich bought all operating units Groupe BMP, which previously owned Atlas Productions.

2.4 South Africa

South African aerospace companies have considerable expertise in the design, development andproduction of military aircraft. Denel Aviation is primarily focused on maintenance, repair andoverhaul of both rotary and fixed wing aircraft in operation with the South African Air Force.

The purchase of 26 Saab JAS39 Gripen fighters has propelled South African companies into theglobal aerospace supply chain. BAE Systems and its partner Saab are delivering US$8.7 billion inIndustrial Participation benefits to South Africa through investments and other stimulation of thecountry's mining and manufacturing sector as a result of the purchase of the aircraft. Saab hastransferred manufacturing of the Gripen main landing gear unit fuselage section to Denel. SouthAfrica’s Avitronics – now part of Saab Avitronics - is supplying helicopter electronic warfare toSwitzerland, also as a consequence of the Saab-Denel tie-up.

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Table thirteen: Aircraft systems, structures and equipment contract awards 2005-2009 by SouthAfrican companies

Contractor Supplier Workpackage

Value Comment

Saab JAS39 Gripen

Saab Denel Structures Around$240million

Products include the rear fuselage section, the main landing gearfuselage unit and the pylons for carrying missiles, bombs, andreconnaissance sensors. Saab and Denel have set up a jointcompany, based in South Africa to undertake aero-structures workglobally.

Saab Grintek Audiomanagementsystem

R56million; $10million

The system comprises an audio management unit and an audiocontrol panel. The suite is based on the South African-developedGrintek GUS 1000 system. The AMS is a fully digital system allowingaudio and radio communications to become highly integrated to theGripen avionics. Saab has a 21.2% stake in the company.

Agusta A109 LUH, the A109 Power and the A119 Koala

AgustaWestland Denel

Licensedproduction

In 2002 Agusta SpA and South Africa’s Denel Group, signed anagreement for license production and marketing of the Agusta A109LUH, the A109 Power and the A119 Koala helicopters in SouthAfrica. The helicopters are built at Denel Aviation’s manufacturingfacilities in Kempton Park, South Africa. The license productionagreement allows Denel to both manufacture and market the A109and A119 Koala helicopters in specified countries around the world,including South East Asia, the Middle East, South America andAfrica. The Agusta and Denel partnership dates back to the ProductSupply Agreement for the A109 Light Utility Helicopter programmesigned in 1999. The agreement provides for a phased multiple yearprogramme for the manufacturing of the complete A109 LUHairframe and systems installation in South Africa. Denel is involvedin the integration of subsystems, manufacture, final assembly,customisation engineering and flight-testing of the SAAF’shelicopters.

Super Lynx 300/AW159

AgustaWestland Denel Saab Steels andcomponents

Under the National Industrial Participation (NIP) agreement drawnup by the South African government Denel is participating in theupgrade of Lynx platforms for the RAF and is exporting componentsfor the Lynx Refit programme. According to the agreement:“Denel'scurrent structural work for the Lynx would be extended to includeall AW159 programmes. Denel will attain the higher profileinternationally by supply contracts. Export of Special Steels for useby GKN Group, from Iskor and proposed new Speciality Steel Mill(Agusta). Under this initiative, GKN would commit to purchasing25% of its steel requirements from South Africa, provided the supplycriteria are met.”

Denel-Saab has acquired extensive capabilities in the defence aerospace market, with a particularfocus on helicopter systems manufacturing. As well as gaining knowledge through the developmentof the Rooivalk attack helicopter the company also assembled 23 Agusta A109 LUHs in South Africaunder a 2000 contract. The company became a credited supplier dynamic helicopter part assembliesfor the civil and military market (main rotor blades and main rotor heads) and structural assemblies(such as fuselages and tail booms).

As part of a company restructuring announced in 2006 Denel is seeking to expand its commercialaerospace portfolio, its Turbomeca Africa has continued to grow its profits year-on-year and DenelAviation has become Africa’s first accredited Lockheed Martin service centre. Denel is seeking tobuild on its established joint ventures - Carl Zeiss Optronics South Africa, Denel Saab Aerostructures

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and Rheinmetall Denel Munitions - with particular expertise in military markets. Denel SaabAerostructures is a designer and manufacturer of complex metallic and composite aerostructuresfor the military and commercial aviation industry. It supplies these aerostructures to OEM’s andother aerostructure suppliers in cooperation with aircraft manufacturers, such as Airbus,AgustaWestland, Boeing and Saab. This business specialises in manufacturing aircraft detailcomponents and aerostructure sub-assemblies. It designs and builds elements of the Airbus A400Mmilitary transport aircraft, the Gripen advanced fighter, the SAAF's Agusta A109 LUH helicopter andparts for Boeing commercial airliners.

2.5 Tunisia

SEA-LATelec, a wholly-owned subsidiary of French wiring company LATelec, opened a second factorywas opened in June 2005.

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3. Central and Eastern Europe

3.1 Czech RepublicThe Czech Republic’s aerospace turnover is currently around €300 million6; it employs around 10,000staff. The country’s aerospace technical heritage including over 6 600 jet trainers designed,developed, manufactured and marketed and over 3 600 MiG fighter jets produced under licence.

The major companies active in the global marketplace are Aero Vodochody, Letov and other,primarily engineering, firms such as Walter, PBS, Jihlavan, Strojcar, Frencken, SEKOedm and Fimes.Joint ventures, according to the trade association CzechInvest, have been signed with EADS,Honeywell, S.A.B.C.A., Israel Aircraft Industries, Cyclone, Turkish Aircraft Industries, Vought AircraftIndustries, BAE Systems, Boeing, Piaggio Aero, SAAB, Rolls-Royce and others. Airbus is currentlyoutsourcing its engineering services to the Czech Republic in work worth EUR 14 million per year.Key global players are listed below:

Moravan Aviation

Moravan Aviation is 100% owned by the Irish investment company QucomHaps Holding. Thecompany makes ejection seats and ejection-seat rocket motors, parachute components,undercarriages, brakes, wheels and parts for the Czech L-410 transport aircraft and Polish M28aircraft manufactured by PZL Mielec.

LET Aircraft Industries

The company has a 6,090 sq m assembly hall and three other halls for shaping and machining largemetal components, welding and riveting, and chemical and heat surface treatment, and a 2,470 m2hall for final painting.

Letov

Letov is an aerostructures manufacturer focusing on assembly of passenger, service and cargo doors,door mechanism and composite parts for door structure for Airbus, Boeing, Dassault and Embraeraircraft. Part of the Latecoere Group.

Aero Vodochody

AERO is the largest aviation technology producer in the Czech Republic and historically the largest jettraining aircraft producer in the world. 100 % of the shares of Aero are owned by the private equitygroup Penta. Aero has agreements with Sikorsky Aircraft Corporation (S-76C helicopter), AleniaAeronautica (C-27J Spartan center wing box), Latecoere (Embraer 170/190 subassemblies), Saab(JAS-39 Gripen pylons), Spirit Aerosystems (B767 fixed leading edge kits), EADS (A320/340subassemblies), etc. It manufactures the L-159 jet trainer. AERO Vodochody is a 100% holder of theshares of Technometra Radotín, a producer of landing gears and other assemblies, and LetištěVodochody (Vodochody Airport), a private international airport. In recent years Aero has built up itscomposite manufacturing technology expertise. In October 2009 Rotortech Aero Composites Limited(Rotortech), part of Aero Vodochody, announced today a threefold expansion of its manufacturingcapacity at its site based near Cambridge, UK.

6Source: www.dlr.de/aeronautics-conference/Speeches/Session1_Ruzicka.pdf

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Walter Engines

Walter Engines manufactures high precision machined parts for the aviation industry with customersworldwide. The company and its sister company Prague Casting Services employ together about 520employees. In 2007, General Electric Company entered into an agreement to acquire certain assetsof Walter Engines and Prague Casting Services. Walter Engines manufactures various parts andsubassemblies of turbine aircraft engines and other high technology engineering products.

PBS Velká Bíteš

PBS’s production plant covers an area of 183,996sq m and makes APUs, air-conditioning systems(ECS), air starters, components for aircraft and helicopter systems such as turbo-cooling units, heatexchangers, water separators, special fittings and parts for pneumatic regulation, actuators, shut-offvalves, high-speed gearboxes, helium expansion turbines used in the gas-liquefaction process andcold compressor unit for aspiration of helium vapours in superconductive arrangements.

TL elektronic

TL elektronic in involved in the design and development of aircraft instruments and onboard aircraftsystems.

MESIT Instruments

MESIT Instruments customers include Let Kunovice, Moravan Otrokovice and Aero Vodochody. Thecompany supplies 20 components for the M601 aircraft engine produced by the Czech companyWalter Engines and replacement avionics for Czech L-39 and L-410 aircraft operating in Russia andAsia.

Ray Service

Ray Service provides wire harnesses and cable components.

Quittner & Schimek

Quittner & Schimek (QS) is a supplier of interconnections.

Jihostroj

Hydraulic and fuel systems. Jihostroj has cooperated with Parker Hannifi n on development andproduction of complete hydraulic systems for end producers of aircraft.

Jihlavan

The company develops and produces components for rudder and elevator hydraulic controlmechanisms, hydraulic power control, hydraulic valves, hydraulic cylinders, brake-systemcomponents, landing-gear control, etc. The company is involved in cooperative programmes withLetov/Latecoere (door components for Airbus aircraft) and has cooperated closely with GE since2000.

LA Composite

Production of composite and sandwich parts

CompoTech

Produces structural composite tubes

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Frencken Brno

Supplies precision mechanical parts and mechanical assemblies.

Table fourteen: Aircraft systems, structures and equipment contract awards 2005-2009 by Czechcompanies

Contractor Supplier Workpackage

Value Comment

Saab JAS39 Gripen

Saab Jihlavan as Hydraulicactuators

Gripen International has committed to generate offset andindustrial cooperation with the Czech government to a value of130% of the aircraft lease agreement. The offset agreementrequires a minimum of direct offset equalling 20% of the offsetagreement’s value to support and develop the Czech aerospace anddefence industry. The offset programme will be fulfilled by 2014, 10years from the contract signature.

Saab Jihlavan as Airbrake andscoopactuators

A follow-on order for Gripen airbrake and scoop actuators wasawarded in 2002. This follows successful completion of an initialcontract to manufacture five sets, placed in June 1999. Jihlavan isnow the sole supplier of airbrake and scoop actuators for Gripen.

Volvo Mora

Aerospace as

Aero engine

components

including

combustion

chamber sub-

assemblies

Contract signed March 2001

Volvo Walter as Castings and

manufacture

d aero engine

parts

Contract signed March 2001

Boeing F/A-18

Boeing Aero Gun bay doors Aero has been producing gun-bay doors for the F/A-18 since 2001lincluding part fabrication, special processes and painting. On January12 2007 the company completed the first unit for the F/A-18Gversion.

Sikorsky S-76

Sikorsky AeroVodochody

The SikorskyS-76helicopterframeexcludingdynamic partsand finalinteriorinstallations.

After completion, the helicopter assembly is taken by road toBremerhaven, Germany and then is by ship to Stratford,Connecticut where Sikorsky undertakes the final integrations andcompletions. The S-76 is Aero Vodochody largest airframeprogramme and is responsible for around 75 % of the total revenueof the company. The first S-76 was completed by Aero Vodochodyon December 21, 2000. More than 30 % out of a total of 8,500 partsof the helicopter assembly are produced by the manufacturers, withthe rest, around 200, being sourced mainly by US and Canadiansubcontractors.

3.2 Hungary

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The Hungarian aerospace industry comprises over 130 companies (80 MRO concerns)7 and employsabout 2,300 people. While most of these are involved in the general aviation sector there are somelarger companies producing parts and assemblies for the global aerospace market, namelyElektrometall Paks Ltd (suppliers of wire harnesses to Airbus), Hungarotech (turbine parts), Alcoa-Kofem Nemenesvamous (fasteners).

Table fifteen: Aircraft systems, structures and equipment contract awards 2005-2009 byHungarian companies

Contractor Supplier Workpackage

Value Comment

Saab JAS39 Gripen

Saab DanubeAerospace

Fuselagecomponents

In November 2007 the Hungarian Offset Committee approvedfurther offset agreements worth SEK 251million (Euro 27.1million),of which SEK 12 million (Euro 1.3million) cover investments and SEK239 million (Euro 25.8million) represent exports.

3.3 Poland

There has been a recent surge in opening up new aerospace businesses in Poland. Traditionalaerospace niche products have centred on general aviation aircraft, helicopters, gliders and aircraftcomponents. There are 55 aerospace companies operating in Poland8 employing 16,000 people.Most are clustered in the Polish ‘aviation valley’, in the south-western part of Poland, where over75% of all national aviation products are manufactured. Companies based here include:

WSK Rzeszów (engines)

PZL Świdnik (helicopters)

PZL Mielec (general aviation aircraft, aerostructures and aircraft components forinternational industrial cooperation programme)

Pratt & Whitney Kalisz (engine parts)

Wytwórnia Zespołów Kooperacyjnych (doors for Boeing aircraft)

Stamet Zakład Mechaniczny S. Stachura (components)

PZL-Swidnik has made fuselages for both the AgustaWestland A109 Power and A 119 Koala, cockpitmodules for the Dassault Mirage 2000-5, components for Ratier-Figeac and passenger doors for theAirbus A319/A320/A321 family. In October 2001 EADS CASA took a 51% share in PZL Ockie as part ofa contract to supply eight C-295M transports to the Polish air force. The company makes wings,loading doors, seats, and electric harnesses for the CASA C-295 and is developing the PZL-130 TC-IIORLIC advanced trainer. Meanwhile, PZL-Polskie Zaklady Lotnicze undertakes subcontract work onthe BAE Systems Hawk and for GKN, Saab, and Pratt & Whitney.

In recent years new civil aircraft manufacturing components business has emerged through a seriesof joint ventures. The following companies have set up joint venture manufacturing businesses:

7Source: http://www.haif.org/index.html

8Source: http://www.poland.gov.pl/Aerospace,industry,7477.html

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Pratt & Whitney

General Electric

EADS

BAE Systems

Lockheed Martin

Boeing

R&D Precision

Table sixteen: Aircraft systems, structures and equipment contract awards 2005-2009 by Polishcompanies

Contractor Supplier Workpackage

Value Comment

Airbus A318/A319/A319CJ/A320/A321

Airbus ZKM Forging Airframecomponents

Airbus A380

Airbus Goodrich Landing gear Theprogrammehas thepotential togeneratetotalrevenues inthe rangeof $2-$3billion overa 20-yearperioddependingon thenumber ofaircraftordered.

Goodrich provides both the main body and wing landing gearsystems for the A380. achieved a major milestone when the firstAirbus A380 body and wing landing gears were shipped from itsfacility in Oakville, Ontario, Canada to the Airbus test facility inBristol, UK. The gear will be installed in Airbus' landing system testrig. At 18 1/2-feet tall, a single A380 body landing gear supportsapproximately 167 tons. In addition to the original equipment,Goodrich will also provide spare parts and gear packages directly tothe operators of the A380 aircraft. The components for the landinggear system are produced by Goodrich's Landing Gear division andinvolve manufacturing facilities at Oakville, Ontario, Canada;Cleveland, Ohio; Tullahoma, Tennessee; and Krosno, Poland. Thefinal gear integration takes place at the Goodrich facility inToulouse, France before delivery to Airbus' final assembly line.Contract signed March 2001.

Boeing 747-8

Boeing Goodrich Landing gear Goodrich Corporation signed a long-term agreement with theBoeing Company under which Goodrich will continue as theexclusive supplier of original equipment and aftermarket landinggear for the 737, 747, 767 and 777 Commercial Airplanesprogrammes. The agreement extends supply arrangements through2012. The company’s US landing gear manufacturing facilities arelocated in Ohio, Tennessee, Washington, as well as Ontario, Canadaand Poland. Contract signed July 2007

Boeing 767-200/-300/-400ER

Boeing Goodrich Landing gear Goodrich Corporation signed a long-term agreement with theBoeing Company under which Goodrich will continue as theexclusive supplier of original equipment and aftermarket landinggear for the 737, 747, 767 and 777 Commercial Airplanesprogrammes. The agreement extends supply arrangements through2012. The company’s landing gear manufacturing facilities arelocated in Ohio, Tennessee, Washington, as well as Ontario, Canadaand Poland. Contract signed July 2007

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Boeing 777

Boeing Goodrich Landing gear The semi-levered landing gear allows the 777-300ER to lift its noseearly during takeoff by shifting the centre of rotation from the mainaxle to aft axle of the three-axle landing gear truck. Goodrich is alsoproviding the aircraft with wheels and carbon brakes. Thecompany’s landing gear manufacturing facilities are located in Ohio,Tennessee, Washington, as well as Ontario, Canada and Poland.

Boeing WytworniaZespolowKooperacyjnych

Structures The five year contract is to manufacture hardware for all new 777aircraft. WZK is manufacturing the Krueger Flap, a hinged surface onthe leading edge of the wing. In 2005 Boeing awarded WZK acontract to manufacture the spare door parts for the fleet of Boeing757s in operation worldwide. WZK produced all the passenger doorsfor the 757 from late 1992 to 2005. Contract signed June 2007.

Boeing 787

Cessna Goodrich Fullyintegratedlanding gearsystem

The system includes main and nose landing gear, wheels and carbonbrakes, and electronic control and steering systems. This is the firstfull landing gear system the company has supplied to Cessna.Goodrich's Landing Gear companies will provide overall systemintegration, fully dressed main and nose landing gear assemblies,actuation, control and steering systems and final assembly.Hardware deliveries to support rig testing are expected by mid2009. The company’s landing gear manufacturing facilities arelocated in Ohio, Tennessee, Washington, as well as Ontario, Canadaand Poland. Contract signed August 2008.

BAE Systems Hawk 127/128 LIFT

BAE Systems PZL-Mielec Fuselage

structures

Poland's state-run company started producing parts for the Hawk

aircraft in 1999.

Saab JAS 39 Gripen

Saab PZL Mielec Tailcone sub-

assemblies

The company provides machined metal sub-assemblies

AgustaWestland AW 109 Power/LUH/Grand

AgustaWestland PZL Swidnik Fuselage PZL-Swidnik and AgustaWestland have been co-operating for over10 years with production of the AgustaWestland Grand, A119 Koala,A109 Power, A109 LUH and AW139 airframes all being carried out inPoland, with over 1000 jobs at its Swidnik plant being supported byAgustaWestland programmes. In 1997 PZL-Swidnik started fuselageproduction of the A109 Power with a dedicated workforce ofaround 60 employees. In 2008 PZL-Swidnik is responsible forfuselage production of five AgustaWestland helicopter types in PZL-Swidnik (A109 Power, A109 LUH, A119 Koala, AW139 and Grand).After celebrating the delivery of the 500th fuselage toAgustaWestland in June 2006, PZL-Swidnik has now delivered morethan 560 fuselages to date at with production running at a rate of12 fuselages per month now. The consolidated turnover for PZL-Swidnik from AgustaWestland is today well in excess of US$25million and the co-operation accounts for almost 25% of thecompany’s annual revenues.

AgustaWestland AW 119 Koala/Ke

AgustaWestland PZL Swidnik Fuselage and

tail booms

ZL Swidnik is responsible for the production of fuselages and tailbooms for all A119 Koala airframes. These are shipped to the finallyassembly line located at AgustaWestland’s Philadelphia plant in theUSA.

AgustaWestland AW 139

AgustaWestland PZL Swidnik Fuselage In 2001 PZL started the production of the fuselage for the AW139.

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Sikorsky S-70i/UH60M

Sikorsky PZL Mielec Cabins The first Black Hawk cabin produced at the Mielec facility was rolledout in March 2009. The first cabin was built for the S-70i while thesecond will be assembled into a US Army UH-60M. Delivery of thefirst S-70i helicopter from Mielec is expected to occur by the end of2011. Production is expected to ramp up to as many as 36 S-70ihelicopters per year.

3.4 Romania

Romania employs around 7,000 staff in aviation product manufacturing.9 The main companies are:

Aerostar

Mainly involved in MRO work. AEROSTAR is an EASA, IR Part 145 approved organization for line andbase (light and heavy) civil aircraft maintenance and production of aerostructures and componentsas an approved subcontractor under JAR-21 subpart G and EASA, IR Part 21G. Programmes arecurrently under way for providing maintenance and/or modification of BAe ATP, SAAB 340, Boeing737 aircraft types, classic and new generation).

Avione SA Craiova

The company has produced ground attack aircraft, the IAR-93 and the IAR-99 SOIM.

IAR Brasov

Carries out co-operation programmes, including the provision of tooling, subassemblies and parts fordifferent aircraft IAR S.A. Brasov has manufactured and delivered more than 160 Puma helicopters,of which 57 helicopters have been exported to France, Pakistan, UAE; 104 off delivered to theMinistry of National Defence.

Romaero

The company is an integrated facility for aircraft manufacturing, aerostructures, detailed parts, jigs &tools. The company has a strategic partnership with Lockheed Martin and Derco for maintenanceand modernization of Romanian Ministry of Defence C-130 Hercules Fleet.

Parts manufacturing includes

BAE Systems ATP - cargo door, kits A109 Agusta Power - tail boom assembly Airbus A380 -tooling,skins,doublers and stringers lower center fairing BAE Systems MRA4 Nimrod -tooling skins,detailed parts Airbus A330/340 - tailcone skins,detail parts Boeing B767, B777 - fixed leading edge polished skins Airbus A320, inlet ducts Gulfstream G-200, aft fuselage-WP-40 Britten and Norman - BN-2 Islander, aircraft Bombardier CL415 floats and cabin Hawker parts and components

9Source: http://www.opiar.ro/history.html

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Turbomecanica

Turbomecanica is a manufacturing and repair company involved in the following areas - aeroengines(repair of Viper 632, Turmo IV, Allison 501, etc), gearboxes and rotorheads for helicopters,accessories and equipment.

Table seventeen: Aircraft systems, structures and equipment contract awards 2005-2009 byRomanian companies

Contractor Supplier Workpackage

Value Comment

Airbus A318/A319/A319CJ/A320/A321

Airbus Romaero Section 14passengerfloor

Airbus Romaero Inlet ducts

Airbus A330/A340

Airbus Romaero Tailconeskins, detailparts

Boeing 767-200/-300/-400ER

Boeing Romaero Fixed leadingedge polishedskins

3.5 Russia

Russia is in the last phase of a transformation process which has seen it evolve from a mass producerof airliners and militart aircraft to meet the demand of the Soviet bloc to an integrated member ofthe global aerospace industry.

The final phase of transformation has been outlined in the 2006 report of the GovernmentCommission for Integration of Aircraft Building Enterprises in the Russian Federation, charged bythen president Putin to set out a strategy to revitalise the aerospace sector. One of the maindecisions from the report was to develop a “joint stock” company to consolidate many of the state-owned aerospace companies under a single entity, the United Aircraft Corporation (UAC). Russia’shelicopter industry has also been consolidated within the OPK Oboronprom’s Helicopter Group – thegovernment has a 51% share in the enterprise.

UAC has been structured in four divisions: Military Aviation, Transport and Specialized Aviation, CivilAviation, and Parts and Components.

Since then, Russia’s aerospace sector has developed new civil projects in combination withcompanies in Europe and the USA and redeveloped military aircraft to aim them at the exportmarket. The Sukhoi SuperJet 100 is being produced by Sukhoi Civil Aircraft with partners includingBoeing, Goodrich, Ilyushin, Powerjet (a 50/50 engine joint venture of NPK Saturn and Snecma), andothers. Alenia Aeronautica is providing sales and after sales product support in Western Europe,

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North America and South America. Other new civil programmes (the Antonov AN-148 and MC-21 –see section six) also include a wide number of new partnerships.

The following is a list of recent agreements, identified by the US Department of Commerce, 10

UAC and Alcoa International have signed a memorandum of understanding (MoU) covering“supply of advanced metallic materials, modern structural components and manufacturingtechnologies.” The MoU covers development of an Alcoa Aerospace Technology Center inRussia.

European Aeronautic and Defense Space Company (EADS) and UAC have signed fouragreements- a five percent partnership in the Airbus A350XWB programme for UAC forairframe component design and construction in Russia; establishment freighter conversioncenters for the Airbus A320 family both in Dresden and at Lukhovitsy near Moscow, a jointstudy of the transport aircraft market and a shareholder exchange in EADS’ EngineeringCenter Airbus Russia (ECAR).

Vneshtorgbank (VTB), Russia’s second-largest state owned bank, purchased a five percentstake in EADS in 2006.

Honeywell Corporation has an agreement to “westernize” Mi-8/Mi-17 military helicoptersfor use outside Russia

Rolls-Royce Corporation (North America) provides an engine for the Kamov KA-226 lightmultipurpose helicopter.

While sales of fighters to export customers - such as the SU-30s and its derivatives to India, Algeriaand elswhere - have been brisk in recent years, the domestic military market is also starting to pickup. According to Russian Prime Minister Putin speaking at the August 2009 MAKS air show, 48 Su-35s, twelve Su-27SMs and four Su-30Ms were sold at the show.

But the industry still needed an injection of funds at the end of 2009 to keep research anddevelopment plans in place.

UAC is still transforming – from 100,000 employees now to 50,000 within the next 15 years – froman 80/20 military/civil split to 50/50 in the medium term.

Table eighteen: Aircraft systems, structures and equipment contract awards 2005-2009 by Russiancompanies

Contractor Supplier Workpackage

Value Comment

Airbus A318/A319/A319CJ/A320/A321

10www.trade.gov/static/aero_rpt_russian_industry_consolidation.pdf

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Airbus Kaskol See comment In 2003, Airbus and the Kaskol Group jointly created an Airbusengineering centre in Russia, ECAR. It mainly performs work indisciplines such as fuselage structure, stress, systems installationand design work.

Airbus Irkut ScientificProduction

Tank panels $200million

Following from a 2004 cooperative agreement, IRKUT's contractawarded in December 2005 comprises wall panels for the A320family auxiliary centre tank, A330/A340 family wing ribs and flap-track roller beams, plus other major components for the A320,A330/A340, and A380 aircraft. In December 2004, IRKUT won Airbuswork packages worth $200 million over ten years. A320 familycomponents are made at its facility in Irkutsk. In December 2005IRKUT sold ten percent of its shares to EADS.

Airbus VoronezhAircraftProduction

Engine pyloncomponents

$200million

Airbus Rosaviakosmos See comment The co-operationprogrammewillgenerate aturnover ofmore than$800million over10 years forRussia.

A wide co-operation programme has been signed by EADS (Airbus'major shareholder) and Rosaviakosmos, covering numerousresearch and technology projects, design work, materialprocurement, product manufacturing and component delivery, aswell as extensive co-operation in the certification field. VerkhnayaSalda Metallurgical Production Association continues to supply morethan half of all Airbus titanium.

Airbus VSMPO-Avisma Titanium The company supplies around 60% of Airbus’ titanium materials.Airbus and its parent company EADS have secured long-termtitanium supplies from VSMPO for 2007 to 2012.

Airbus A330/A340

Airbus Kaskol Design andstructuralsub-assemblies

In 2003, Airbus and the Kaskol Group jointly created an Airbusengineering centre in Russia, ECAR. It mainly performs work indisciplines such as fuselage structure, stress, systems installationand design work.

Airbus Irkut ScientificProduction

Structuresandcomponents

$200million

Following from a 2004 cooperative agreement, IRKUT's contractawarded in December 2005 comprises wall panels for the A320family auxiliary centre tank, A330/A340 family wing ribs and flap-track roller beams, plus other major components for the A320,A330/A340, and A380 aircraft. In December 2004, IRKUT won Airbuswork packages worth $200 million over ten years. A320 familycomponents are made at its facility in Irkutsk. In December 2005IRKUT sold ten percent of its shares to EADS.

Airbus VoronezhAircraftProduction

Engine pyloncomponents

$200million

Airbus Rosaviakosmos Design andprocurement

The co-operationprogrammewillgenerate aturnover ofmore than$800million over10 years forRussia.

A wide co-operation programme has been signed by EADS (Airbus'major shareholder) and Rosaviakosmos, covering numerousresearch and technology projects, design work, materialprocurement, product manufacturing and component delivery, aswell as extensive co-operation in the certification field. VerkhnayaSalda Metallurgical Production Association continues to supply morethan half of all Airbus titanium.

Airbus A380

Airbus Irkut Scientific Structuresand

$200 Following from a 2004 cooperative agreement, IRKUT's contractawarded in December 2005 comprises wall panels for the A320

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Production components million family auxiliary centre tank, A330/A340 family wing ribs and flap-track roller beams, plus other major components for the A320,A330/A340, and A380 aircraft. In December 2004, IRKUT won Airbuswork packages worth $200 million over ten years. A320 familycomponents are made at its facility in Irkutsk. In December 2005IRKUT sold ten percent of its shares to EADS.

AgustaWestland AW 139

AgustaWestland Oboronprom Finalassembly

The two companies agreed on a joint venture for the assembly ofAW 139 helicopters in Russia.

Boeing – all models

Boeing VSMPO-Avisma

Raw materials The company supplies around 30% of Airbus’ titanium materials.Boeing’s joint venture with VSMPO to build a titanium-forgingfactory in 2008 will ensure adequate supplies for the 787 aircraftbetween 2008 and 2013. Boeing also has a larger, 30-year deal withVSMPO for supplies worth a reported $18 billion

Boeing 787

Boeing GKNAerospace

Slat skinwing-to-bodyfittings/wing-to-nacellefittings

The long term agreement is for the supply of 13 complex titaniumfittings for the aircraft, comprising structural wing-to-body andwing-to-nacelle fittings. They are being manufactured in 5553advanced grade titanium. GKN Aerospace rough machines andfinishes the titanium forgings supplied by VSMPO-Avisma of Russiaat its St Louis, Missouri facility. GKN Aerospace is delivering directlyto Boeing's partner companies on the 787 programme, MHI and FHI.

3.6 Turkey

Turkeys’ aerospace expertise is centered on Turkish Aerospace Industries, Inc (TAI), which has atotal of 3,000 staff.

The company’s aviation manufacturing experience includes co-production of F-16 fighters, CN-235light transport/maritime patrol/surveillance aircraft, SF-260 trainers, Cougar AS-532 general purposehelicopters and design and development of unmanned aerial vehicles. TAI is the prime contractor ofthe indigenous Turkish Unmanned Aerial Vehicle (MALE) and the Turkish Armed Forces AttackHelicopter production programme. It is also engaged in design and development of Primary & BasicTrainer (HÜRKUŞ) Aircraft.

TAI is the prime contractor of the C-130E/B Avionics Modernization (Erciyes) Programme, whichcovers the modernization of 13 TuAF C-130 aircraft. (7 C-130E and 6 C-130B) and other businessareas include modernization, modification and systems integration programmes and after salessupport of both fixed and rotary wing military and commercial aircraft.

TAI is also engaged in aerostructures manufacturing business for fixed and rotary wing, military andcommercial aircraft for worldwide customers; it is a supplier to AgustaWestland, Airbus, Boeing, CASA-EADS,Eurocopter, Lockheed Martin, Northrop Grumman, MDHI, Sikorsky and many more. TAI participates, as apartner, in the global scale Joint Strike Fighter (JSF) and A400M design and development programmes. TAI hasalso become a full risk-sharing partner of Airbus in the A350XWB programme for the aileron work package.

Alp Aviation manufactures a large variety of parts and assemblies including;

Dynamic Motor Components, Tail Rotor Drive Shaft & Flight Control Assemblies for SikorskyHelicopters.

Engine Rotating & Structural parts and accesories

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Landing Gear Subassemblies

Customers include: Fixed wing

F-35 Lightning II Joint Strike Fighter F-22 Raptor Boeing 737 Boeing 787 Dreamliner Airbus A380 Airbus A320 KT-1T

Helicopters

Black Hawk & Seahawk S-92, S-76 & CH-53

Engines

Pratt & Whitney F135 & F100 PW150, PW305, PW530, PW535 & PW545

Other major aerospace manufacturing companies in Turkey include Aselsan (avionics and weaponsystems) and TEI – a joint venture between General Electric and a number of Turkish aerospacecompanies.

Table nineteen: Aircraft systems, structures and equipment contract awards 2005-2009 by Turkishcompanies

Contractor Supplier Workpackage

Value Comment

Airbus A318/A319/A319CJ/A320/A321

Airbus TAI Section 18fuselage panels

Boeing TAI Wing tips andflight deckpanels, wireharnessassemblies andother sub-assemblies

Boeing 747-8

Boeing TAI Nose landinggear doors

Boeing 767-200/-300/-400ER

Boeing TAI Sub-assemblies

Boeing 787

Boeing PFW Metallictubing/ducting

This agreement includes the design and manufacture of tubesresponsible for the fluid supply of the hydraulic systems. PFW willalso design and manufacture tubes responsible for the supply offuel to the engines and the auxiliary power unit as well as the

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nitrogen generation system, which ensures an inert atmospherein the fuel tanks. It will also provide tubes for the integratedcooling system and the power electronics cooling system.

Lockheed Martin F-35 Joint Strike Fighter

LockheedMartin/NorthropGrumman/JSFprogrammeoffice

TAI Centre fuselage $3 billionplus

Under the Letter of Intent (LOI), signed in February 2007, TAIbecomes the second source for the F-35 Lightning II center fuselage.The number of center fuselages to be produced by TAI will bedetermined depending on the number of F-35s Turkey will procureand the number of F-35s to be produced worldwide. In November2008 TAI opened a new 74,000sq ft facility to make at least 400composite subassemblies in the low rate initial production (LRIP)phases of the programme.

Lockheed Martin F-35 Joint Strike Fighter

Goodrich Alp Aviation Landing gearcomponentsand assemblies

The agreement covers deliveries through December 31, 2015. Underthe agreement, Alp Aviation will supply machined componentsranging from aluminium parts to high strength steel componentsand assemblies. These components will be delivered to GoodrichLanding Gear's final assembly facility in Cleveland, Ohio. Agreementsigned July 2009

L-3 DisplaySystems

Aydin Yazilimve ElektronikSanayii

IPDTcomponents

Pratt & Whitney Alp Aviation Fan rear hub The contract follows on from the signing of the June 2005 industrialpartnership between Pratt & Whitney and Alp Aviation. Agreementsigned September 2005.

Pratt & Whitney KaleKalip F135 highcompressorshrouds sets

Agreement signed September 2005.

GeneralElectric/Rolls-Royce

Tusas EngineIndustries Inc(TEI)

F136 designengineeringservices

TEI produces key rotating components for F136 development andtest engines at its manufacturing facility in Eskisehir. Agreementsigned July 2006.

Agusta A129 Attack and Tactical reconnaissance (ATAK)

AgustaWestland TAI Licenceassembly

The dealisreportedto beworth $3billion

Turkey placed an order for 51 A129 ATAKs; Tusas AerospaceIndustries (TAI) is responsible for final assembly of the helicopter, tobe designated T129. AgustaWestland and Aselsan are the mainsubcontractors. In May 2009 AgustaWestland opened its new T129facility in Cascina Costa, Italy. The new facility, staffed by more than70 Turkish and AgustaWestland integrated team technicians,comprises an assembly area for the T129 prototypes as well as officespace for the T129 team members. The licensed assembly deal wassigned in September 2007

AgustaWestland AW 139

AgustaWestland TAI Fuselages

Eurocopter EC 135 T2i/P2i/EC635

Eurocopter TAI Rear doors andengine cowlings

Eurocopter TAI Engine cowlings

Sikorsky S-76D

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Sikorsky TAI Horizontalstabilisers

Sikorsky S-70A/MH-60

Sikorsky TAI Horizontalstabilizers, tailrotor pylonsand tail booms

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4. Far East

4.1 China

The size of China’s domestic market has provided a powerful magnet to Western civil aircraftmanufacturers for many years. But most of this work has been limited to structural assembliesrather than systems and integration packages. However, until now China has not yet made the leapfrom supplying structures to supplying major aircraft subsystems such as fuel, pneumatic, electricaland environmental control systems, markets which are still dominated by the US majors Goodrich,General Electric and Parker, inter alia. While these companies have recently started to source somecomponents from China there are, as yet, few signs that Chinese companies will in the near futurebe able to shift through the gears to become major integrators of these systems, where the majorvalue lies, at least in the civil market.

To put the value of this work in context, Chinese companies registered around $700 million worth ofcomponent and structural work on North American and European airliner programmes in 2007; incontrast, Parker won business estimated at $3.5 billion in July 2008 for the single contract to supplyBombardier with a fly-by-wire control system on the new CSeries airliner. To put this further intocontext this $700 million is still far less than the value to US suppliers of contract work on the newAVIC regional jet.

However, Chinese expertise in developing systems capability is increasing rapidly, as evidenced by itsaim to develop a fifth generation fighter within eight years and its achievements in creating the J-10and JF-17 aircraft with performances understood to be at early F-16 generation levels.

There is also a significant lack of Chinese work within the business jet segment, a major area ofconsistent growth, for the moment at least, within the global aerospace manufacturing sector. ButChina’s prospects for further major inroads into the global aerospace competitive marketplace,beyond the Airbus A350XWB, will no longer depend on winning business with Airbus and Boeing.The COMACC919 which is being developed as a competitor to the Airbus A320/Boeing 737 andsuccessor programmes offers Chinese companies a step-change in developing capabilities fromstructures suppliers to systems integrators.

The success of this programme will depend on a number of factors including:

The ability of COMAC to develop an aircraft which is 15-20% cheaper to operate, in terms ofdirect operating costs, than the current A320/B737 types. This process will be helped by theavailability of new engine types, such as the geared turbofan, which could provide at least a10% improvement over current designs in fuel burn.

The timing of the A320/B737 replacement launch - the COMAC C919 would ideally belaunched some years before the A320/B737 replacements are ready.

The country is not immune to the same fluctuating price impacts of raw materials and oil that haveplayed such havoc with aircraft builders and operators in the West, but a more pressing issue is thatthe number of major new aircraft programmes is likely to be much smaller in the 2009-2012timeframe than the past few years, when the Airbus A350XWB, Bombardier CSeries, Boeing 747-8have all offered Chinese companies new opportunities.

Second, China appears to be slowly losing at least part of its competitive edge in low-wagemanufacturing markets. It is likely that the next few years will therefore see a gradual slowdown inthe rapid rate of subcontract work within China to major US and European airliner programmes.

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Over the past two years aircraft manufacturers in the West have dramatically increased theirmanufacturing footprint in China. It is not hard to understand why. Over the next 20 years China willneed 3,400 airliners according to Boeing. Some regional airliners will be produced by the country’sown aircraft manufacturers – but the larger aircraft will need to be imported. According to Airbus’September 2009 Global Market Forecast China's aviation market will see an annual increase of 7.9percent in the next 20 years, becoming the world's second-fastest growing market after India. TheAsia Pacific market, including China and India, is forecast to account for 31 percent of demand by2027, followed by Europe at 25 percent and North America at 10 percent over the next two decades,the report said.

The potential of China’s domestic market has provided a powerful magnet to Western civil aircraftmanufacturers for many years. In 1985, a licence agreement was signed by McDonnell DouglasCorporation (MDC) to assemble MD-80-series airplanes in Shanghai. The aircraft were assembledfrom kits and 35 aircraft produced between 1985 and 1994. A follow-on contract which substantiallyincreased Chinese content was signed in 1992 to produce 40 MD-80/MD-90 aircraft. The contractwas amended in 1994 to produce 40 MD-90s (20 in Long Beach, 20 in China) and again in 1998,when MDC merged with Boeing, to reduce the number of China produced MD-90's from 20 to justtwo.

Chinese manufacturers have also been involved in making parts for Bombardier's Q100, Q200, Q300and Q400 models.

But most of this work has been limited to structural assemblies rather than systems and integrationpackages. There have also been strict embargoes on North American and European companiesexporting technologies which could be used for military purposes, a sometimes limiting factor on theexport of computing devices, for example. But the last few years has seen a marked change in theattitude to China by Western companies as Chinese companies re-organised themselves with newskill sets.

The Chinese government has been actively building up the country’s civil aircraft manufacturingcapabilities, first with the development of ARJ21 regional jet and MA60 regional turboprop and morerecently with the COMAC C919. In its Eleventh Five-Year Programme, the government has laid out amedium-term goal of developing its helicopter manufacturing capability so that by 2010 it will havethe capacity to manufacture 80-100 helicopters annually.

The country’s indigenous skill set has been developed on the back of an increasing presence of USand European aerospace companies in the country.

Boeing has a marginally larger civil aircraft manufacturing footprint in China than Airbus, but Airbusis developing new ranges of other aviation services with new Chinese partners. The Chinesegovernment is committed to increasing the size and scope of its aircraft manufacturing sector;building a new range of regional jets and helicopters while developing new manufacturing facilitiessuch as the Tianjin Aviation Town being developed on a 102 square kilometer plot west of Beijing. In2006 Chinese aircraft manufacturers realised a turnover of nearly US$400 million, a year-on-yearincrease of about 45%. Following a major June 2007 package of manufacturing contract work withBoeing (see below),

Strategic agreements between Chinese companies and Western aircraft manufacturers

Airbus has entered into a framework agreement with Harbin Aircraft Industry Group Co Ltd (HAIG),part of AVIC, on a joint venture to produce A320 and A350 XWB composite parts, setting up amanufacturing centre in early 2009 in Harbin, capital of northeastern China's Heilongjiang province.The Airbus (Beijing) Engineering Technology Center began work in July 2008, a joint venture

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between Airbus Hafei Aviation Industry, Jiangxi Hongdu Aviation Industry and the former ChinaAviation Industry Corporation I (AVIC1 ), to provide design services.

By 2010 Airbus expects to be spending around $120 million of its procurement budget in China.Airbus China opened its Beijing office in 1990; the Airbus Beijing training centre was set up jointlywith the China Aviation Supplies Import & Export Corporation in 1998 while nearby Airbus has setup a customer support centre, which stocks some 25,000 spare parts.

In June 2007 Boeing contracted a package of work for on its range of Boeing 737NG, Boeing 747-8and Boeing 787 aircraft valued at about US$500 million. Chinese companies, for the first time, arebuilding flaps, ailerons and spoilers for Boeing aircraft. According to the company “Boeing supplierpartners have active supplier contracts with China aviation industry valued at well over US$2.5billion.”

Boeing is one of the main partners, with Hexcel and AVIC , in BHA Aero Composites Co, Ltd, inTianjin, producing secondary composite structures and interior parts. First deliveries started in 2002.BHA customers include Boeing, Hexcel, Fisher and Goodrich. It has over 570 employees.

According to Boeing, its suppliers’ Chinese aerospace business includes the following activities:

General Electric procurement from Harbin, Shanghai, Xi'an, Sichuan, Suzhou, Guizhou,Shenyang.

Goodrich CF34 fan cowl (at BHA, 2003). Contracted in 2008 with Hongdu Aviation inNanchang to build 787 part kits for the 787 nacelle.

Parker Hannifan, machining with Jincheng Corp., Shanghai Qi Yi Automotive, SichuanGolden Dragon Machine.

Pratt & Whitney, engine components, from Xi'an and Chengdu.

Primus International in Suzhou, factory ground-breaking 2004, airplane components.

Rolls-Royce, procurement from several locations including Xi'an, Shenyang.

Snecma, CFM56 engine blades, joint venture in Guiyang.

General Electric, Suzhou; makes engine parts and flight controls.

Meanwhile Bombardier’s new CSeries is being developed in conjunction with Shenyang AircraftCompany, which will supply the fuselage, centre wing box and doors. During the 2007 Paris Air Showthe former AVIC 1 signed a risk and revenue sharing deal with Bombardier to develop the ARJ21-900,a 105 seat regional jet. Bombardier plans to invest $100 million in the ARJ21-900 project and providetechnical assistance towards the development of the aircraft. According to Bombardier “In pursuit ofits goal to become a major international tier one structural supplier, AVIC I plans to invest $400million US for research and development, construction of new facilities and equipment for theCSeries aircraft programme….”

The former AVIC I and Bombardier Aerospace have a long standing strategic agreement whichincludes AVIC I’s Xian unit manufacturing components for the Bombardier 415 and ShenyangAircraft Corporation unit supplying components for the Q-Series aircraft..

In October 2004 the French and Chinese presidents were present at the signing of a CooperationFramework Agreement between AVIC II and Eurocopter for a joint helicopter venture. Eurocopter

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and the former AVIC II have been cooperating for more than 25 years, in particular with the Z9, aDauphin made in China and the EC120 also manufactured in China by Harbin Aircraft Industries.

In 2003, EADS, Eurocopter’s parent company, took a 5 % share in the newly created AviChinaenterprise.

And the former AVIC II, through its subsidiaries Changhe Aircraft Industries Corporation andShanghai Xinshen Aviation Industry Investment and Development Company recently joinedShanghai Sikorsky as a shareholder. The company was established in 2003 by Sikorsky and ShanghaiLittle Eagle to build civil helicopter sales and support in China.

The Harbin aerospace cluster houses the only assembly plant for the Embraer ERJ-145; Embraermoved ERJ-145 production to Harbin as part of a joint venture with AVIC II in 2004 and has orders tokeep the production line busy for at least another three years.

During the September 2009 Asian Aerospace show Safran signed a framework agreement with AVICfor work on the aircraft as did Nexcelle - a joint venture company created by GE's Middle RiverAircraft Systems and Aircelle, a Safran group company to supply nacelles. According to AVIC: “AVICAircraft and Nexcelle will consider a broad range of nacelle and components manufacturing anddesign opportunities, including current production programmes and for new aircraft. Categoriescould range from business jets to large airliners.”

In late 2008 the Chinese government announced the re-merger of AVIC I and AVIC II, previouslyseparated in 1999, creating a huge organisation with more than 420,000 employees spread acrossmore than 100 companies. AVIC I tended to make larger aircraft and engines – it had 47manufacturing companies, 31 research institutes and 22 other aviation support companies. In 2008AVIC 1 employed around 230,000 people and assets exceeded $20 billion US. Products includedfighter aircraft, turbofan engines, air-to air missiles and the ARJ 21and the 50-seater turbopropMA60 airliner. AVIC II was the country's only manufacturer of military and commercial helicopters. Italso manufactured the 50-seater ERJ 145. AVIC II delivered 132 airplanes in 2007 – 30 aircraft morethan in 2006 – while sales revenue reached 10.32 billion yuan, up 30.1% over the previous year.

During 2009 AVIC set up a number of semi-independent subsidiaries - a defence branch was set up inBeijing to develop new capabilities in areas such as unmanned air systems (UAS) and to export J-10,JF-15 and L-15 Falcon military jets. The division owns 10 assembly plants and research institutesacross China.

Civil aircraft manufacturing has been devolved to the Commercial Aircraft Corporation of China(COMAC), based in Shanghai, to manage the development of the C919 190-seat airliner and the ARJ-21 regional jet. COMAC businesses include AVIC 1 Commercial Aircraft (ACAC), Shanghai Aircraft(SAC) and First Aircraft Institute (FAI).

An AVIC helicopter company has been set up in Tianjin Binhai New Area. A new aviation enginecompany has been launched in an aerospace cluster zone near Beijing Capital International Airport.An airborne systems division has been established in the Zhongguancun Aviation Science Park ofHaidian district, in northwest Beijing.

In the last two to three year’s Chinese companies have succeeded in winning contracts forincreasingly complex aero-structures. The new BHA plant operated in conjunction with Hexcel andBoeing has given Chinese industry an entree into the world complex composite panels and parts, forinterior and exterior structures. This expertise has allowed Chinese concerns to widen their contractbase from aircraft programme OEMs (Airbus, Boeing, Bombardier and Sikorsky) to prime contractorssuch as Spirit and Fokker-Elmo.

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Table twenty: Aircraft systems, structures and equipment contract awards 2005-2009 by Chinesecompanies

Contractor Supplier Workpackage

Value Comment

Airbus A318/A319/A319CJ/A320/A321

Airbus See comment Carbonstructures

Airbus has signed a contract in January 2009 with Chinese partnersto create a joint venture to make carbon composite parts in Chinafor its A350 XWB and A320 aircraft. Airbus's Chinese business willhold a 20% stake in the joint venture, based in Harbin, and China'sHarbin Aircraft Industry Group will hold a further 50% stake, whileother local players HAI, AviChina and HELI will each own 10%. A newplant should be ready for operations by the end of 2010. Airbus saidthe value of its partnership with the Chinese aviation industry isexpected to be near $200 million per year in 2010 and $450 millionin 2015.

Airbus ChengduAircraftCorporation

Rearpassengerdoor andnose sectionparts

Airbus The Hong YuanAviation Forging& Casting(HYFC)

Titaniumforging partsto mountengines on towings.

Airbus Messier-Bugatti Wheels andcarbonbrakes,landing gearextension andretractionsystem, nose-wheelsteeringsystem,brakingsystem,wheels andbrakesmonitoringsystem

Messier-Dowty is responsible for the design, manufacture andsupport of the main and nose landing gears for the A320 family.production at the start of 2008 stood at 30 ship sets per month andhas led to new procurement and manufacturing processes, such asthe use of articulating assembly rigs, ‘superkits’ of purchased partsand through the implementation of lean initiatives, reducingassembly and manufacturing lead times. The A320 family landinggear is Messier-Dowty’s largest production programme, withmanufacturing activities split between the company’s Bidos(France), Gloucester (UK), Montreal (Canada) and Suzhou (China)facilities.

Airbus X’ian AircraftCorporation

Access doors

Airbus A330/A340

Airbus X’ian AircraftCompany

Electronic baydoors, wingfixed trailingedges

The Xi’an Aircraft Company produces electronic bay doors for theA320 and A330/A340 families, as well the fixed trailing edges onwings for the A320 family and the brake blades and medium airducts for the A330/A340 family. will soon be manufactured in China.By 2010 Airbus expects to be spending around $120 million of itsprocurement budget in China.

Airbus ChengduAircraftCorporation

Rearpassengerdoor andnose sectionparts

Airbus The Hong YuanAviation Forging& Casting(HYFC)

Titaniumforging partsto mountengines on towings.

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Airbus A350 XWB

Airbus See comment Carbonstructures

Airbus has signed a contract in January 2009 with Chinese partnersto create a joint venture to make carbon composite parts in Chinafor its A350 XWB and A320 aircraft. Airbus's Chinese business willhold a 20% stake in the joint venture, based in Harbin, and China'sHarbin Aircraft Industry Group will hold a further 50% stake, whileother local players HAI, AviChina and HELI will each own 10 %. Anew plant should be ready for operations by the end of 2010. Airbuswill build 5% of the A350 XWB airframe in China. Airbus said thevalue of its partnership with the Chinese aviation industry isexpected to be near $200 million per year in 2010 and $450 millionin 2015.

Airbus Harbin AircraftIndustry Group

Compositematerial partsandcomponents.

The two companies are establishing a manufacturing centre, whichwill be set up in early 2009, will be an equity joint ventureenterprise, with HAIG holding 80 per cent stake and Airbus Chinaowning 20 per cent stake. According to the contract, themanufacturing centre will manufacture composite materials partsand components for the Airbus A320 family and participate in theindustrialisation and serial production of Airbus A350 XWB work-packages.

Airbus MessierBugatti/

Messier Dowty

Main landinggear

Airbus has chosen in December 2007 to use a single supplier for allthe ATA32 systems of the A350 XWB: landing gear extension /retraction system, braking management, ground steeringmanagement and tire pressure, brake temperature and suspensionpressure surveillance management. The first landing gear delivery tothe Airbus final assembly line in Toulouse is scheduled for early2011.The main landing gear for the -800 and -900 versions includesa four-wheel bogie and dual side stay which reduces loading on theA350XWB’s composite wing. For the -1000 variant, in addition tothe dual side stay, the MLG features a six wheel bogie to reduceloading on the tarmac. The main landing gear design also includesthe increased use of advanced materials, specifically titanium, whichoffers weight savings and corrosion resistance. The A350XWB mainlanding gear will also be chrome and cadmium-free, using surfacetreatments such as HVOF and MCAC coatings, which areenvironmentally responsible solutions. Messier-Dowty will managethe A350 main landing gear programme. The contract incorporatesfeatures such as the “brake to vacate” system, which enablesbraking to be calculated according to the programmed turn-off onthe landing runway, and the “heading control” function enablingautomatic steering of the nose wheel according to a pre-programmed path for the aircraft on the ground. Manufacturingactivities are split between the company’s Bidos (France),Gloucester (UK), Montreal (Canada) and Suzhou (China) facilities.

ATR 42-500/72-500/600

ATR X’ian AircraftCorporation

Fuselagesection 16

Boeing 737-600,-700,-800,-900

Boeing BHA AeroComposites

Compositepanels andparts

Flight deck, close out panels, dorsal fin, wing-to-body fairing, coverpanels, wing fixed trailing edge, wing fixed leading edge, interiorpanels).

Vought andSpirit

ChengduCommercialAircraft

Forwardentry doors

Contracted in 2005. From 2008 the contract is with Spirit.

Vought andSpirit

ChengduCommercialAircraft

Over-wingexit doors

Contracted in 2005. From 2008 the contract is with Spirit.

Boeing andSpirit

ShenyangCommercialAircraft

Aft fuselagesub-assemblies

Originally contracted for 1996/2001, expanded to include “TexasStar” (November 2004), contracted with Spirit, expanded to full aftsection 48 (2007)

Boeing Fokker Compositeinterior

Fokker-Elmo, working with Boeing Electrical System ResponsibilityCenter, delivers 99 part numbers to the Boeing 737-600,-700,-800,-

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panels 900 programmes. This work is accomplished in the facility inLangfang, Hebei Province where it has 504 employees working onBoeing, Pratt and Whitney and other company's electrical products.

Boeing ShanghaiAviationManufacturing

Horizontalstabilisers

Contract signed in 1995

KoreanAerospaceIndustries

SAIC, XAC andBHA

Parts forvertical fin,horizontalstabilizer

Boeing Xi'an AircraftIndustrialCompany (XAIC)

Vertical fin

Boeing 747-8

Boeing Hong Yuan(HYFC) inSanyuan,

Titaniumforgings

There are 12 forgings for each for each Boeing 747. Deliveries beganin 1984.

Boeing BHA AeroComposites

Compositepanels, doorliners, fixedtrailing edge

Boeing ChengduCommercialAircraft

Aileron andspoilers

Contracted in 2007. First delivery 2009

Vought ChengduCommercialAircraft

Horizontalstabilizer andsub-assemblies

Contracted in 2007

Boeing Xi'an AircraftIndustrialCompany (XAIC)

Fixed trailingedge wingribs

Contract signed in 2007, first delivery 2008 and inboard flapscontracted in 2007, first delivery in 2009.

Boeing 767

Boeing BHA AeroComposites

Wing fixedtrailing edgesand dry baybarriers,empennagepanels

Boeing 777-all types

Boeing BHA AeroComposites

Wing fixedtrailing edgesand dry baybarriers,empennagepanels, flightdeck interiorpanels

Boeing Fokker Compositeinteriorpanels

Fokker-Elmo, working with Boeing Electrical System ResponsibilityCenter, delivers 142 part numbers to the 777 airplane programmes.This work is accomplished in the facility in Langfang, Hebei Provincewhere the company has 504 employees working on Boeing, Prattand Whitney and other company's electrical products.

Boeing 787

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Boeing ChengduAircraftIndustrial(Group) Co. Ltd

Compositerudder

Part of a $600 million contract announced in June 2005 by Boeing toa group of Chinese suppliers..

Boeing Hafei Wing-to-bodyfairing panels

Part of the$600million deal(see“Chengduentryabove).

The company is affiliated to the Chengdu Aircraft Industrial Groupbased in Sichuan Province, China. Hafei's capabilities includecomposite and sheet metal manufacturing, numerically controlledmachining, tooling design and production, and complex structureassembly and integration. Contract signed 2005

Bombardier C Series

Bombardier Fokker Elmo Electricalwiringinterconnetion system

Theassociateddesign andproductionwork isexpected torepresent avalue ofapproximately $300million,spread overa 15 to 20multi yearperiod.

Fokker Elmo is also providing all the design and production of allFlight Test and Instrumentation wiring required during thecertification of the CSeries aircraft. Papendrecht, the Netherlands.Most design and development effort will take place on-site atBombardier in Montreal, manufacturing of development and flighttest wiring systems will be performed at Fokker Elmo Netherlands,while the serial production is scheduled to be executed at FokkerElmo China. Contract signed March 2009.

Bombardier ShenyangAircraftCorporation

See comment SAC is a risk sharing partner in the design, manufacturing,assembling and testing of the aircraft’s fuselage. The contractfollows a June 2007 memorandum of understanding on the CSeries.Just over 10 per cent of the CSeries aircraft will be manufactured inChina by Shenyang Aircraft Corporation. Shenyang also supplies theempennage, as well as the aft and forward fuselage sections forBombardier's Q400 turboprop airliner.

Bombardier Dash 8 Q400

Bombardier ShenyangAircraftCorporation

See comment Shenyang supplies the empennage, as well as the aft and forwardfuselage sections. In July 2006, Bombardier entered an agreementthat stipulated SAC would manufacture certain structural aircraftcomponents for the Q400 aircraft that were previously sourcedfrom Mitsubishi Heavy Industry.

Gulfstream G450/G500/G550

Stork Fokker ShenyangAircraftCorporation

Variouscomponents

Less thanEuro 1million

Shenyang Aircraft Corporation (part of AVIC-I) and Stork Aerospacehave signed a contract in 2005 for the machining of components forthe Gulfstream G450, the G500 and the G550. The order relates tocomponents for the aircraft which were formerly producedelsewhere..

Sikorsky S-76C++

Sikorsky ChangheAircraftIndustries Corp

Airframes Changhe Aircraft Industries Corp is supplying S-76 helicopterairframes as part of a Memorandum of Understanding (MOU)signed June 1, 2006, by Sikorsky and China Aviation Industry Corp. II(AVIC II), parent company of Changhe. Changhe is building anddelivering S-76C++ helicopter airframes for Sikorsky alongside thoseof Aero Vodochody.

Sikorsky S-92A

Sikorsky ChangheAircraftIndustriesCorp/Jingdezhen HelicopterGroup

Tail pylonsand tail plane

The company is a 2% risk sharing partner in the aircraft programme.

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4.2 India

Most of the country’s aerospace manufacturing expertise has been centralised on HindustanAeronautics Limited (HAL). HAL has 19 manufacturing plants and nine research and design centresin India. Its largest programmes are:

Dhruv Advanced Light Helicopter (ALH) Tejas Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades.

HAL has formed the following Joint Ventures (JVs) :

BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma HAL Aerospace Pvt Ltd SAMTEL HAL Display System Limited HALBIT Avionics Pvt Ltd HAL-Edgewood Technologies Pvt Ltd INFOTECH HAL Ltd

Some of the work packages for international customers include :-

Airbus A320 forward passenger doors Boeing 757 over wing exit doors Boeing 777 uplock box assembly Boeing 767 bulk cargo doors Boeing 737 freighter conversion kits BAE Systems – Tornado pylons Fokker Aerostructures – F50 horizontal stablizers Boeing -3D-modelling / digitisation of drawings Israel Aircraft Industries (IAI) - rear fuselage for the Gulfstream G-150

Another major manufacturer is Tata Advanced Systems. In 2009 it set up a joint venture withSikorsky Aircraft to assemble Sikorsky S-92 helicopter cabins. Tata Advanced Systems is building afacility in Hyderabad, where the helicopter cabins will be assembled from 2010.

Table twenty-one: Aircraft systems, structures and equipment contract awards 2005-2009 byIndian companies

Contractor Supplier Workpackage

Value Comment

Airbus A318/A319/A319CJ/A320/A321

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Airbus HindustanAeronautics Ltd

Forwardpassengerdoors

Gulfstream G-150

Israeli AircraftIndustries

HindustanAeronautics Ltd

Aft fuselages The contract for producing 200 ship-sets of G-150 fuselages wassigned in 2007. The

Boeing 767-200/-300/300ER

MitsubishiHeavyIndustries

HindustanAeronautics

Cargo door

Boeing 777 – all types

Boeing HindustanAeronautics

Uplockassembly

Boeing 787

MagellanAerospace

QuestMachining andManufacturing

Landing gearcomponentparts

Bombardier Global 5000/Express XRS

Bombardier Goodrich Hella Interior andexteriorlighting

The interior lights are based on Light Emitting Diode (LED)technology. Locations in Lippstadt, Germany, Bangalore, India andTampa, Florida, USA

Sikorsky S-92

Sikorsky Tata Advanced

Systems

Cabins Tata Advanced Systems and Sikorsky signed an agreement in June

2009 for the Indian enterprise to build cabins for the S-92 helicopter

at a greenfield site in Hyderabad, and is due to begin deliveries from

late 2010.

4.3 Indonesia

PT Dirgantara Indonesia/Indonesian Aerospace (IAe) has delivered more than 300 fixed wingaircraft and helicopters. It now concentrates on support and manufacturing components to the CN-235 aircraft produced under licence in-house, having cut its workforce from 9,670 a few years ago to3,720 today.

Table twenty-two: Aircraft systems, structures and equipment contract awards 2005-2009 byIndonesian companies

Contractor Supplier Workpackage

Value Comment

Bell 412

Bell Helicopter IPTN Licensed A licence agreement was signed with IPTN in November 1982 forthe partial manufacture and complete assembly of 100 plus Bell

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Textron manufacture 412s. The first of these flew in April 1986. Among the customers areIndonesian armed forces and private operators.

Super Puma EC225/2Mark

Eurocopter PTDI Localassembly

$42 millionover a 10year period

The two companies have signed an agreement to set up a localassembly line to manufacture airframes for Super Puma MKIIhelicopters, with operations of serial production starting in 2011.Contract signed October 2008

4.4 Korea

Around 80% of the country’s aerospace manufacturing output is dedicated to military products.Over the past few years revenue has increased at an average annual rate of 7.2%, with 70% ofrevenues coming from the domestic market and 30% from exports. In 2007 aerospace sales turnoverwas $1.5 billion.

There are more than 40 companies in Korea involved in aerospace manufacturing and support, witha workforce of 7,000.

Apart from its aircraft manufacturing programme ( F-5, SB427 and UH-60 licensed production; KF-16KT-1, T-50 indigenous development; KHP co-development) Korean aerospace companies supplyvarious fuselage and wing packages to companies such as Boeing, Airbus, Bombardier, LockheedMartin and Vought.

Korean aerospace manufacturers

Korea Aerospace IndustriesManufacturer of aircraft - KF-16, KT-1, T-50, UAV, KMH, KLH, SB427 – and supplier to the globalindustry. Employs 2,724.

Samsung TechwinEngine parts manufacturer.

Korean AirParts manufacturer - B717 nose, A330/340 and ERJ-170/190 body structure, KT-1 mid and rear part,B737/747/777 wing parts.

Nex1FutureElectronic controls.

Hanhwa CorporationAircraft hydraulic parts, fuel and control systems.

STX Engine Co., LtdRadar and electronic systems

Seojin Instech Co., Ltd.Aircraft generators

Korea Bell Helicopter Co.Window consolidation, repair, and modification

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Samsung ThalesPhotoelectron communication equipment, electronic communications.

Wia CorporationAircraft parts, landing gear.

Aerospace Technology of Korea Inc.Aircraft stringer, body structure parts

Soosung Airframe Ltd.Aircraft body parts.

Kyongju Aerospace Electrical Systems Co., Ltd.Aircraft parts

Korea Lost-Wax Co., Ltd.Gas turbine engines, blade, and vanes.

Hankuk FiberHelicopter fairings, wing tips, engine covers, body structure, canopies.

Bowon Light Metal Co., Ltd.Aluminum extrusions.

Chunji Co.Impellers, housing, gear box, supporting parts

Firstec Co., LtdWiring harnesses, engine hydraulic system and altitude control systems

Aerospace production

2004 2005 2006 2007

Finished products 518 577 637 679

Airframes (fuselages) 235 261 317 388

Engines 287 64 405 517

Avionics 37 38 51 84

Machinery 53 74 71 83

Materials 3 3 3 2

(US$ millions)

Aerospace exports

2003 2004 2005 2006

Exports 574 523 643 892

(US$ millions)

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Table twenty-three: Aircraft systems, structures and equipment contract awards 2005-2009 byKorean companies

Contractor Supplier Work package Value Comment

Airbus A380

Airbus Korea AerospaceIndustries

Bottom wing panel 5

Rolls-Royce Samsung Techwin Components

Boeing 787

Boeing Korean Air LinesAerospace Division

Wing tips The raked wing tips areapproximately 17 feet inlength and provideaerodynamic efficiency forlong-haul routes. Thecompany particates as a tier2 supplier and also makesthe fixed trailing edge andcentre wing box.

Vought AircraftIndustries

Korean Air Lines(KAL) AerospaceDivision

Complete aft bodystructural assembly,nose wheel assemblies

Gulfstream G550

Vought Korea AerospaceIndustries

Wing leading edges

Bell 427

Bell HelicopterTextron

Korean AerospaceIndustries

Fuselage and tail-boom The joint developmentwork between KoreanAerospace Industries andBell Helicopter Textron onthe programme is reportedto be worth $300 millionfor 740 units up to 2013

KAI is responsible formarketing the SB427 inKorea, and the PeoplesRepublic of China and SouthEast Asia, with final assemblyfacilities at its Sacheon Plantfor SB427 sold in thesemarket. SB427 is thedesignation for KAIassembled and sold BELL427,which was designed by BellHelicopter through apartnership with KAI. Undera license agreement, KAI isalso the sole- sourcemanufacturer for allBELL427/SB427 cabins andtailbooms.

Bell 429

Bell HelicopterTextron

Korean AerospaceIndustries

Fuselage and tail-boom The agreement wasprojected to cover all Bell429 airframes for the next10 years, which isestimated to be over $150million.

Bell and KAI are due tocomplete the 429 helicopterdevelopment programme bythe end of 2008. KAI is solesource supplier of thefuselage for the world'smarket and has productionand sales right for completehelicopters for the Koreanand Chinese markets.

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4.5 Malaysia

There are three major suppliers to the global aerospace industry in Malaysia.

Asian Composites Manufacturing Sdn Bhd is a strategic alliance between Sime Darby Berhad andNaluri Berhad of Malaysia and Boeing and Hexcel Corporation of the USA. ACM produces advancedcomposite structures for the wings of all Boeing jetliners in production. The ACM facility, located inBukit Kayu Hitam, commenced production in June 2001 and employs more than 310 Malaysians,along with an all-Malaysian management team.

Composites Technology Research Malaysia (CTRM) Incorporated was established in 1990; CTRM'sprincipal shareholder is Malaysia's finance ministry with the company's primary role to develop ahigh technology-based industry in aerospace and composites. Clients now include

Goodrich - CTRM has been awarded the Best Certified Supplier by Goodrich Aero Structures(USA) for the V2500 programme. More recently, CTRM sealed a 3.5 billion ringgit (1.03billion dollar) deal, which will see CTRM provide nacelle components to Goodrich. CTRM saidthe Goodrich contract will increase the company's book order from 3 billion ringgit to 6.5billion ringgit.

Airbus - On the A320 programme the company is the largest composite component supplierfor the Airbus A320 wing, covering 20% of the wing surface. On the Airbus A380 thecompany produces the Inboard Outer Fixed Leading Edge (IOFLE), Fixed Leading Edge LowerPanels (FLELP) and Inner Inboard Fixed Leading Edge (IIFLE). On the A400M the companymakes Tail Plane Leading Edge Panels, Wing Trailing Edge Panels, Tail Plan Trailing EdgePanels & Actuator Fittings, Nacelle Extension Fairing & Fuel Pump Fairing, Main Landing GearDoor. On the A350XWB the company makes the aft cascade ring.

Boeing - On the 787 the company makes the aft bulkhead, inner barrel back skin, 360 degreeinner barrel panel. On the 737NG it makes the saddle fairing. On the 777 it manufacturesother structures.

Spirit AeroSystems Malaysia Sdn Bhd, a 242,000 sq ft plant based on a 75-acre site adjacent to therunway at Subang Airport near Kuala Lumpur, became operational early in 2009. The facility,employing over 400 staff, provides a variety of manufacturing, engineering and support functions;initial work will include the production of a number of composite subassemblies, principally on theAirbus single aisle range of aircraft.

Table twenty-four: Aircraft systems, structures and equipment contract awards 2005-2009 byMalaysian companies

Contractor Supplier Workpackage

Value Comment

Airbus A350

Airbus Spirit AeroSystems

Fuselagesection 15

The section 15 centre fuselage frame section is a compositestructure approximately 65ft long, 20 ft wide, it weighs nearly9000 lb. The company will build a new facility in Lenoir County,North Carolina. It will initially employ 500 people, with plans to

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grow to 1,000 when all phases of development are complete.The new plant should be ready by 2010. Portions of A350 XWBwork will also take place in the company’ s Wichita plant andthe Spirit factory in Malaysia. The company is also building thecomposite front spar at Kinston; composite sub-assemblies willbe made in Malaysia. Contract signed May 2008

Boeing 737-600,-700,-800,-900

Boeing AsianCompositeManufacturingSdn Bhd (ACM)

Aileronpanels

Work takes place in Kuala Lumpur, Malaysia

Boeing 747-8

Boeing AsianCompositeManufacturingSdn Bhd (ACM)

Compositedetails

The supplies composite details for the 747-8 with compositepanels and the new composite bullnose.

Boeing 777 – all types

Boeing AsianCompositeManufacturingSdn Bhd (ACM)

Machinedhoneycombcore

Hawker de Havilland (HdH), a Boeing subsidiary, headquarteredin Port Melbourne, Victoria, Australia, is the Boeing integratorfor the 777 elevator and rudder. Contract signed November2008.

4.6 Pakistan

Aerospace manufacturing activies centre on the Pakistan Aeronautical Complex (PAC). There, theKarakoram-8 (K-8), basic/advanced jet trainer, is being co-developed by Aircraft ManufacturingFactory (AMF), Kamra, and China National Aero-Technology Import & Export Corporation (CATIC).PAC formally opened its JF-17 production facility at PAC Kamra factory in April 2005. The JF-17 is acombined Chinese-Pakistan third-generation fighter programme.

4.7 Taiwan

The largest aerospace manufacturing concern in the country is Aerospace Industrial DevelopmentCorporation (AIDC), which has manufactures the IDF C/D Hsiang Sheng fighter. The company is alsoinvolved in a wide range of collaborative civil programmes. These include:

The co-development programme of CL-300 business jet empennage with Bombardier Inc. The co-development programme of S-92 helicopter with Sikorsky Aircraft United

Technologies Corp. The co-production programme of B-737/747 pressurized door with Boeing Company. The co-production programme of 601K turbojet engine with Allison Company. The co-production programme of ASE120 turbojet engine and AS907 turbofan engine with

Honeywell International Inc. The co-development programme of CT7 turboshaft engine with General Electric Company. The co-production programme of Falcon 900/2000 commercial jet's rudder. The co-production programme of Airbus A321/#16A Barrel with Airbus Company. The co-production programme of EC-120 helicopter with Singapore Technologies Aerospace. The co-production programme of C-27J cargo tail with Alenia.

Other significant aerospace manufacturing companies based in Taiwan comprise:

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Hiwin TechnologiesBallscrews, Linear Bearings, Linear Guideway, Aerospace Parts, Linear Motors, Linear ActuatorsMagnetic Strip.

Chen-Tech Taiwan IndustriesForged Engine and Airframe Components

Chenfeng Machinery and EnterpriseStructural Parts, Engine Parts, Sub-assembly, Hydraulic Components

Aero Win Technology CorpTurbine Engine Hot Section Sheet Metal Components, Aluminum Sheet Metal Components forAircraft Structures, Precision Mschining of Compressor Blades, Shrouds and Accessories.

Kolik EnterpriseAircraft Ratchet Buckles, Buckles Hardware Fittings For Aircraft Cargo Nets.

Jiawoei Precision Machinery CooAerospace Parts.

Ta Yih Industrial CoAircraft interior lights

Centre for Aviation and Space TechnologyStructures and Aircraft Interior Components

Gongin Precision Industry CoEngine Sheet Metal, Combustion Liners, Hula Seals, Cap Cowls, Collars, Vane, Seal & Casing, HighPrecision Hydraulic System Components, Valves, Transition Liner, IC Mold and Progressive Dies

National Aerospace FastenersAerospace Fasteners.

Drewloong Precision IncAerospace Components and Sheet Metal, Aerospace Engine Parts, Semi-conductor SealingEquipment Parts

Chaheng Precision CoAerospace Products

Taiwan AvionicsAvionics

NFT Technology CoFerrous / Non-ferrous alloy investment casting

Table twenty-five: Aircraft systems, structures and equipment contract awards 2005-2009 byTaiwanese companies

Contractor Supplier Work Value Comment

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package

Airbus A318/A319/A319CJ/A320/A321

Airbus AerospaceIndustrialDevelopmentCorporation(AIDC)

Wing trailingedges

Airbus UK AIDC Structures AIDC was commissioned in 2003 by Airbus UK to make the 16Abarrel of the A321 Business Jet.

Boeing 737-600,-700,-800,-900

Boeing AIDC Structures AIDC was commissioned in 2005 by Boeing to make pressuriseddoors on the Boeing 737 and 747 range of aircraft. Thecompany was commissioned in 2003 to make the main landinggear doors of the Boeing 737 range.

Boeing 747-8

Boeing AIDC S Structures AIDC was commissioned in 2005 by Boeing to make pressuriseddoors on the Boeing 737 and 747 range of aircraft.

Mitsubishi MRJ70/90

MitsubishiAircraft

AIDC Slats, flaps,

belly fairings,

rudders as

well as

horizontal

stabiliser

rotating

blades.

Contract signed January 2009

Bombardier Challenger 300

Bombardier AIDC Rear fuselageand tail unit

Honeywell AIDC AS907turbofanassembly

Sikorsky S-92

Sikorsky AIDC Flight deck

4.8 Thailand

Asian Aerospace - Thailand is the country’s largest indignous aerospace business, with its main linesof business in airline MRO and business/general aviation support – especially of Diamond Aircraft.

Thailand has a small but growing aerospace manufacturing footprint, based on the development ofEuropean and US manufacturing plants in the country.

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In 2002 GE Elano Asia Ltd, a division of the General Electric Company (GE) announced that it hascommitted to invest more than Bht 3,000 million (approximately US$ 69 million) over the next eightyears in a three-phase project to set up in Thailand Asia's largest aerospace tubing, ducting andconfiguration components manufacturing and servicing facility. The facility is located at the EasternSeaboard Industrial Estate, Rayong province.

Ducommun Incorporated opened its Ducommun Technologies, Inc. (DTI) Thailand subsidiary in2006. Initial production supports DTI's commercial microwave switches. The facility is located inSaraburi, approximately two hours north of Bangkok.

Weston EU -a supplier of aero-engine parts - has a wholly owned subsidiary company, Weston SEA,which is located in Chonburi province, Thailand. It has a ten-year agreement with Rolls-Royce for thesupply of compressor aerofoils; Weston SEA will produce compressor aerofoils for the V2500 enginein Thailand. Production targets for 2009 have been set at 180,000 pieces, increasing to 250,000pieces in 2010. Weston SEA will assume responsibility for a significant proportion of the V2500 totalengine programme, with market values in the range of $15 million per year for phase one alone.

Benchmark Electronics, Inc has set up a manufacturing plant in Ayudhaya, Thailand.

Table twenty-six: Aircraft systems, structures and equipment contract awards 2005-2009 by Thaicompanies

Contractor Supplier Workpackage

Value Comment

Boeing 787

HamiltonSundstrand

DucommunIncorporated

Mechanicalenclosuresand wireharnesses

$15 million Engineering and first article development will be performed atDTI’s Phoenix, Arizona facility with production starting in 2008at DTI’s facility in Thailand. Contract signed June 2006

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4.9 Vietnam

Vietnam is starting to see an influx of Japanese aerospace manufacturers.

Mitsubishi Heavy Industries (MHI) has set up MHI Aerospace Vietnam Co., Ltd. (MHIVA) to producecommercial aircraft components in Hanoi, Vietnam. MHI is shifting part of its metal componentassembly work to Vietnam. Plans are for MHIVA to begin production of Boeing 737 flap assemblies,with other operations to follow. In 2009 and 2010, MHIVA will assemble flaps for 2-8 aircraft everymonth, and for 10 aircraft per month starting in 2011. MHIVA, capitalized at US$7 million, will startwith 50 employees, to be expanded to about 200 people when the plant reaches maximumproduction capacity.

Meanwhile Nikkiso is establishing a manufacturing facility in the suburb of Hanoi (Nikkiso VietnamInc.) The facility is currently under construction and is due to start operations at the end of the year.

Table twenty-seven: Aircraft systems, structures and equipment contract awards 2005-2009 byVietnamese companies

Contractor Supplier Workpackage

Value Comment

Boeing 737-600,-700,-800,-900

Boeing MHI AerospaceVietnam Co

Flaps MHI Aerospace Vietnam Co., Ltd. (MHIVA) of Hanoi is asubsidiary of Mitsubishi Heavy Industries, Ltd. (MHI) completedthe manufacture of a component production plant inSeptember 2009. MHIVA, capitalized at US$7 million, wasestablished in December 2007 as a wholly owned subsidiary ofMHI to assemble commercial aircraft component structures.The new plant is situated at the Thang Long Industrial Park(TLIP) approximately 16 kilometres northwest of central Hanoiand occupies 4,500 square meters (m2) in floor area within the19,100 m2 plant. Initially, the flaps for the Boeing 737 will beshipped to MHI's Nagoya Aerospace Systems Works for paintingand final inspection, and then delivered to the Renton, US site.Once production gathers momentum, MHIVA will deliver theflaps to the US directly, according to the company. Contractsigned September 2009

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5. Latin America

5.1 Argentina

The largest aerospace concern in Argentina is Lockheed Martin Aircraft Argentina S.A. (LMAASA),based in Cordoba, with the main business focusing on regional aircraft maintenance andmodifications.

5.2 Brazil

Brazil’s aerospace sector has a turnover of around $8 billion and employs around 27,000 staff11

2005 2006 2007 2008

Annual turnover* 4.3 4.3 6.2 7.55

Exports* 3.7 3.9 5.6 6.74

Aeronautics 87.3% 90.8% 91.3% 89.13%

Defence 9.29% 5.78% 6.6% 8.79%

Space 0.24% 0.41% 0.4% 0.57%

Exports 90% 90.5% 90.8% 90.5%

Employment 19,800 22,000 25,200 27,100

(*In US$ billions)Source: AIAB

Although the aerospace industry is developed mainly around Embraer there is a growing number ofother Brazilian companies working on Embraer and other aircraft programmes. Embraer is now oneof the largest aircraft manufacturers in the world and was Brazil’s largest exporter from 1999 to2001 and the second largest in 2002, 2003 and 2004. It currently employs more than 16,946 people,94.7% based in Brazil. Since 1996, Embraer has produced and delivered more than 1000 ERJs tomore than 37 airlines in 24 countries. The success of the Legacy 600 since its entry into service in2002 was followed by the Phenom 100, Phenom 300, Legacy 450, Legacy 500, Legacy 600, andLineage 1000 executive jets. The company is also active in the defence field, with trainers and AWACaircraft. Defence is likely to take a larger share of the future market with the country’s acquisition ofnew fighters – which will involve considerable Brazilian manufacturing and technology input – andthe proposed development of a new military transport aircaft.

Other significant Brazilian aerospace manufacturing companies.

Aeroeletrônica LtdaAvionic systems

Aeromot Aeronaves e Motores S/AAircraft components, structures, equipment – engine systems

Akaer Engenharia S/C LtdaAkaer, based in São José dos Campos, is heading a consortium of Brazilian companies - comprisingFriuli, Winnstal, Minoica and Imbra Aerospace – to provide systems and assemblies to the Gripen NGprogramme.

11Source: http://www.aiab.org.br/english/index.php?option=com_content&task=view&id=17&Itemid=31

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Avibrás Indústria Aeroespacial S/AAircraft components, structures, equipment

Cenic Engenharia Indústria e Comércio LtdaAircraft components, structures, equipment

Imbra AerospaceAircraft components, structures, equipment

Helicópteros do Brasil S/A - HELIBRASHelicopter components, structures, equipment

Sobraer LtdaAircraft components, structures, equipment

To support Embraer activities Western manufacturers have set up a number of joint-ventures andBrazilian-based operations.

Aernovva do Brasil ELEB - Embraer Liebherr Equipamentos do Brasil S/A GE Celma Ltda GKN Aerospace Transparency Systems Latecoere do Brasil Indústria Aeronáutica Ltda Parker Hannifin Ind. e Com. Ltda Pratt & Whitney Canadá do Brasil Ltda Rolls-Royce Brasil Ltda Turbomeca do Brasil Ltda

Table twenty-eight: Aircraft systems, structures and equipment contract awards 2005-2009 byBrazilian companies

Contractor Supplier Workpackage

Value Comment

Airbus A320

Airbus Aernnova Compositeparts

MLG doors and elevators. Fuselage and other parts made fromsheet metal. Spain’s Aernnova has a facility in Sao Jose Dos Campos,Brazil

Airbus Sonaca Panels, wingcomponents,fuselageassembly

Sonaca, through the BELAIRBUS consortium has been an Airbuspartner for 25 years. It develops, manufactures, assembles and teststhe wing leading edge slats and associated de-icing system for theAirbus A320 and A340 families (including the A340-500/600) andthe new A380 wide body aircraft. The Sonaca Group also carries outA320 family Frame 1 assembly. This task is performed in Brazil, bySOBRAER.vThe Brazilian companies of the Group, SOPEÇAERO andPESOLA, also manufacture parts for the Airbus A320 and A340-500/600 programmes.

Airbus A330/A340

Airbus Sonaca Panels, wingcomponents,fuselageassembly

Sonaca, through the BELAIRBUS consortium has been an Airbuspartner for 25 years . It develops, manufactures, assembles andtests the wing leading edge slats and associated de-icing system forthe Airbus A320 and A340 families (including the A340-500/600)and the new A380 wide body aircraft. The Brazilian companies ofthe Group, SOPEÇAERO and PESOLA, also manufacture parts for the

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Airbus A320 and A340-500/600 programmes.

Airbus Aernnova Compositeparts

Elevator skins, HS ribs. Spain’s Aernnova has a facility in Sao JoseDos Campos, Brazil

Boeing 777

Boeing Embraer Structures

Saab JAS39 Gripen

Saab Akear See comment Akaer, based in São José dos Campos, is heading a consortium ofBrazilian companies - comprising Friuli, Winnstal, Minoica andImbra Aerospace – to provide systems and assemblies to the GripenNG programme. Further integration will be dependent on Brazilselecting the aircraft for the F-X2 project. Contract awardedSeptember 2009.

Sikorsky S-92

Sikorsky Embraer Sponsons andfuel systems

5.3 Mexico

Mexico has long been seen as an attractive low-wage economy for aerospace manufacturers.According to the United States’ International Trade Commission’s Aaron Miller12, speaking in May2009, Mexico’s advantages cen be summed up as:

Existing human capital resources

Proximity to the U.S.

Economic integration

20% cost savings on labour

Strong IPR protections

No military aircraft restrictions

Liberal investment regime

Another key component for Mexico’s success has been the BASA (Bilateral Aviation SafetyAgreement) federal government project which allows the certification of aerospace designs andcomponents made in Mexico, in accordance with U.S. standards and complying with FAA regulatoryissues, to be recognised in the USA - avoiding re-certifications or second reviews by US Government.

In the past five years more than 190 aerospace companies have relocated or set themselves up inMexico. While most of these are relatively labour-intensive, structural parts and MRO organisationsit is possible13 that by 2011 Cessna will be assembling aircraft in Mexico; Bombardier will start

12Source: www.business.utep.edu/Faculty/PDF/symposium09/miller.ppt

13Source: “Mexico’s Aeronautical Industry” published by MexicoNow, June 2009 – www.mexico-now.com.

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building its Learjet 85 in 2012 and both Bell and MD Helicopters are considering opening assemblylines there.

Figures for turnover and growth differ. According to the Mexican aerospace industry tradeassociation FEMIA 14 the aerospace industry exported $US3,400 million of aeronautical products in2008, expecting to reach over $4,000 million by the end of 2009 - a 28% increase over 2008. Importswere $2,425 million in 2008 and predicted to be $2,840 million in 2009. Other figures (see tablebelow), suggest a more modest turnover.

Mexico’s aerospace turnover

2007 2008 2009 2012

Employment (000s) 16.5 21 (E) 27 (E) 37.5 (E)

Annual investment (US$ million) 450 900 (E) 1000 (E) 1,900 (E)

Annual exports (US$ million) 600 1,000 (E) 2,000 (E) 6,000 (E)

Total number of plants 150 190 (E) 220 (E) 310

Source: MexicoNow research

14Source: http://www.femia.com.mx/ingles/cifras.html

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Aguascalientes

MDM

Texas Instruments

Baja California

Aerospace Coating International

American Plating Company

Ascotech

BAE Systems

BCM

Bourns

C&D Zodiac

Chromalloy Aerospace

Cobham Defence Electronic Systems

Craig Tools International

Crissair

Cubic

Delphi

Eaton

Electromech

Empresas LM

Esterline

Fluidmaster

GKN

Goodrich

Gulfstream

Hartwell Dzus

Honeywell

HST

Hutchinson

Jonathan Engineered Solutions

Leach

LISI Aerospace

LMI Aerospace

Lockheed Martin

MAHETSA

Mexmil

Next-Tech Aerospace

Northrop Grumman

Orcon Corp

Pacmin

Parker

Pratt & Whitney

Rockwell Collins

Seacon Global

Suntron

TDI

Thayer Aerospace

Tyco Electronics

Volare

Chihuahua

Bell Helicopter

Cambrian Industries

Capsonic Group

Cessna

CN

Electro Switch Corp

FMC Technologies

Hawker Beechcraft

Hitco

Honeywell

Jabil

Labinal

Lockheed Martin

Manoir Industries

Murphy

Nordam

AE Petsche

Stork

Zodiac

Coahuila

Alcoa

General Electric

GSC

Ketema

Parkway Products

Saltillo Jet Center

SEI

Senior Aerospace

Unison

Guerrero

Turbinas de Zihuatanejo

Jalisco

AVNTK

Competitive Global de Mexico

Global Vantage

Hydra

Interplex Industries

Sanmina SCI

Mexico City

Eurocopter

Mexicana

Nueovo Leon

Aerodiesel Engines

Aztek Technologies

Bodycoat

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Corporacion EG

Doncasters

EZI Metals

Frisia Wyman Gordon

General Electric

Grupo Protexa

Honeywell

Maquinados Programados

Moneterrey Jet Center

Moneterrey Metal Prodicts

Pratt & Whitney

Technologico de Monterrey

Tecmaq

Schoeller, Bleckmann, Edelstahlrohr

SNECMA

UANL

Puebla

Aritex

Crouzet

LUK

Queretaro

Aernova

Bombardier Aerospace

CIATEQ

CIDESI

ELIMCO

Ellison Surface Technologies

General Electric IQ

Ketema

Messier Services

AE Petsche

ITR

Meggitt

SEI

SNECMA Propulsion Solide

SNECMA Services

San Luis Potosi

Bonanza

General Electric

GKN

Hitchiner

HITCO

TJR

Sonora

Amphenol

Arrow

BAE Systems

ChemResearch

Daher

D.A.M. Industries

Ducommun

ESCO

GS Precision

Goodrich

Harco

Integrated Magnetics

ITT

Molex

Novacap

OVISO

Paradigm Precision

Parker

Precision Aerospace

Sargent

SAVI

SEMCO

Sigmex

Williams International

Vermillion

State of Mexico

Avemex

EADS

Navair

Raytheon

Tampaulipas

Ametek

Cinch

Nova/Link

Porta Systems

RBC Bearings

Zacatecas

Triumph Group

Yucatan

Air Temp

General Electric

Precision Castparts

SMP

.

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According to Secretary of Economy figures, there are 194 aerospace companies operating in thecountry, 79% of these are in the manufacturing and assembly, 10% in engineering services and R&D,and 11% are involved in MRO activities.

Raytheon moved its wire harness production to a supplier in Mexico in 2003 but the surge inaerospace business relocation and start-ups really began in 2007. Bombardier relocated its Quebecmanufafturing plant to Queretaro in 2007 as part of the manufacturing strategy for the GlobalExpress; in 2006 parts manufacturing for the company had already been transferred to Mexico fromWichita, Japan and Northern Ireland. Cessna and Hawker Beechcraft set up plants in Chihuahua;Cessna’s 62,000-square-foot wire assembly and sheet metal facility opened in the first quarter of2006. Goodrich chose Mexicali for its Boeing 787 work and SAFRAN now employs more than 3,500Mexican workers in Queretaro and Chihuahua states.

The impact of the setting up of the European and North American companies on the Mexicaneconomy is not yet fully understood – though Eaton Aerospace has estimated it will be sourcing 30%of supplies from local providers.

Mexico has also developed effective “cluster” activities. Most of the relocated companies arelocated in the Mexicali-Tecate-Tijuana corridor. One particulararly successful cluster operation is inBaja California which now employs more than 12,000 people in aerospace activities.

Table twenty-nine: Aircraft systems, structures and equipment contract awards 2005-2009 byMexican companies

Contractor Supplier Workpackage

Value Comment

Airbus A350 XWB

Rolls-Royce EsterlineCorporation

Engine

sensors

Approximately $500million overthe lifetimeof theprogramme

The contract covers the supply of approximately 30 separatecomponents in the sensors package. The first Esterline-suppliedTrent XWB components are scheduled for delivery to Rolls-Royce inearly 2010. Contract signed April 2009. At least 75% of thesecomponents will be produced in-house at the company’s AdvancedSensors facilities, including the UK-based Weston Aerospaceoperation, France-based Auxitrol operation, US -based NorwichAero operation, and a new facility in Mexico.

Boeing 777-300ER

General Electric Labinal Engine wiringwithin theGE90-115B

The work takes place in Pryor, Oklahoma, Corinth, Texas andChihuahua, Mexico.

Boeing 787

Boeing GKN Aerospace Titaniummetal matrixcomposite(TMMC)thrust links

The work takes place in Mexicali, Mexico According to GKN thisrepresents the first use of TMMC in a commercial application;TMMC offers major weight savings of 25% to 40% over traditionalsteel or inconel thrust links and increased temperature toleranceover monolithic titanium. GKN Aerospace is partnered with FMWComposite Systems Inc on the programme. “GKN Aerospace andFMW will partner on this contract and in seeking other teamingopportunities for TMMC in the aerospace sector,” said GKN. TheBoeing 787 thrust link comprises an FMW manufactured TMMCcentre tube, which GKN Aerospace plasma-welds to two machinedtitanium end lugs. Contract signed October 2007

Gulfstream 550

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Gulfstream Gulfstream Wireharnesses

Wire parts and harnesses are assembled at Gulfstream’s plant in ElCentro, Mexico for assembly and placement into kits which are usedin just-in-time (JIT) operations.

MD 500, 520, 600N

MD Helicopters MDHI/MDM Fuselage

manufacture

MD Helicopters' new production facility in Monterrey, Mexico,(MDM) delivered its first single-engine fuselage in January 2007. MDHelicopters Inc uses the facility for production of fuselages for itssingle-engine helicopters and subassemblies. Dedicated in August2006 the production facility houses a climate-controlledmanufacturing operation that includes capabilities such as detailpart processing, welding, bonding, and mylar reproduction. Workingwith fuselages from Monterrey, and other components from variousproviders, MD 500s and MD 600s are assembled in Mesa andcompleted at MDHI subsidiary Hertiage Aviation in Texas, or inMesa, depending on the requirements.

Bombardier Learjet 85

Bombardier Bombardier See comment All primary structural components of the all-composite aircraft willbe built in Mexico at new facilities in Querétaro, about 130 milesnorth of Mexico City. New facilities have also been developed atBombardier’s main Montreal site and in Wichita, where finalassembly of the 85 will take place. The composite structure will bebased on a metal skeleton. Wiring harnesses are assembled andinstalled in Mexico before shipment to Wichita.

Bombardier Challenger 605

General Electric TeleflexAerospaceGroup

Blades The blades are made in San Luis Potosi, Mexico

Hawker Beechcraft Premier 1

HawkerBeechcraftCorporation(formerlyRaytheonAircraft)

Labinal Inc/Aerotec deMexico, S.A. deC.V

Wire harnessassemblies

Labinal Inc is a North American subsidiary of Labinal, a SnecmaGroup company. The contract is for a long term agreement for theoutsourcing of wire harness assembly for all Raytheon (now HawkerBeechcraft) commercial aircraft. Work takes place in Chihuahua,Mexico. Contract signed June 2003

Hawker Beechcraft 400XP

HawkerBeechcraftCorporation(formerlyRaytheonAircraft)

Labinal Inc/Aerotec deMexico, S.A. deC.V

Wire harnessassemblies

Labinal Inc is a North American subsidiary of Labinal, a SnecmaGroup company. The contract is for a long term agreement for theoutsourcing of wire harness assembly for all Raytheon (now HawkerBeechcraft) commercial aircraft. Work takes place in Chihuahua,Mexico. Contract signed June 2003

Hawker Beechcraft 850/900XP

HawkerBeechcraftCorporation(formerlyRaytheonAircraft)

Labinal Inc/Aerotec deMexico, S.A. deC.V

Wire harnessassemblies

Labinal Inc is a North American subsidiary of Labinal, a SnecmaGroup company. The contract is for a long term agreement for theoutsourcing of wire harness assembly for all Raytheon (now HawkerBeechcraft) commercial aircraft. Work takes place in Chihuahua,Mexico. Contract signed June 2003

Hawker Beechcraft 4000 Horizon

HawkerBeechcraftCorporation(formerlyRaytheonAircraft)

Labinal Inc/Aerotec deMexico, S.A. deC.V

Wire harnessassemblies

Labinal Inc is a North American subsidiary of Labinal, a SnecmaGroup company. The contract is for a long term agreement for theoutsourcing of wire harness assembly for all Raytheon (now HawkerBeechcraft) commercial aircraft. Work takes place in Chihuahua,Mexico. Contract signed June 2003

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Part two – Supply chain of aircraft programmes within low-wage aerospace economies

6.1 Argentina

6.1.1 Lockheed Martin AT-63 Pampa

Purchaser Supplier Work package Value Comment

Lockheed

Martin

Aircraft

Lockheed Martin

Aircraft Argentina

Assembly The aircraft is assembled at the Lockheed MartinAircraft Argentina plant. The Pampa programmewas re-started in February 2004 with the twofive-year contracts awarded by the ArgentineGovernment to Lockheed Martin AircraftArgentina. The first contract comprises theupgrade of 12 existing aircraft to AT-63 standard,plus a forth contract to build 12 AT-63 Pampajets, six for the Argentine Air Force with the restfor international sales.

Lockheed

Martin

Aircraft

Honeywell

Aerospace

Engine The aircraft features a Honeywell TFE-731-2Cturbofan engine with 3,500 pounds of thrust. Thenew engine features FADEC control andimproved mean time between failures.

Lockheed

Martin

Aircraft

Elbit Avionics The avionics suite comprises a digital cockpit witha heads-up display in the forward cockpit.Features inclide a 1553B data bus, laser ringINS/GPS navigation system, mission computerand an integrated weapons system. In 2001, ElbitSystems signed a contract with Lockheed MartinAircraft Argentina S.A. for the avionics upgrade of24 AT-63 Pampa aircraft for the Argentinean AirForce.

Lockheed

Martin

Aircraft

Messier-Bugatti Brakes Wheels and hydraulic disk brakes

Lockheed

Martin

Aircraft

Lockheed Martin Radar APG-67 multi-mode radar

6.2 Brazil

6.2.1 Embraer 170-175/190-195

Purchaser Supplier Work package Value Comment

Embraer Embraer Structures At the end of July 2008 Embraer said it would investEUR148 million in two new plants in Portugal to makewings and tailpieces for export. The two plants will bebased in Evora in the south of the country. One, whichwill cost EUR100 million, will build large metallic partsfor aircraft, such as wings, while the other will workwith composite materials for tailpieces. The wingproduction plant should start producing in 2011, andthe second plant would become operational in 2012.

Embraer Aernnova

(formerly Gamesa)

Structures The company is a single source risk-sharing partnerwith Embraer, responsible for design, prototypes,certification and manufacture of empennages (verticaland horizontal stabilizers), rudder and elevators. Thecompany also makes the rear fuselage (includingpressure bulkhead).

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Embraer Aernnova

(formerly Gamesa)

Composite parts Rudder and elevators ,empennage spars and ribs

Embraer Aernnova

(formerly Gamesa)

Composite/sheetmetal parts

Wing skins. Frames, stringers.

Embraer Meggitt AircraftBraking Systems

Carbon brakes

Embraer General Electric Engines The Embraer 170-175 is powered by two GE CF34-8Ejet engines fitted with FADEC. The Embraer 190-195 isfitted with GE 34-8E-10s.

Embraer Messier-Bugatti Landing gearextension andretractionsystem,nosewheel steeringsystem,brakingsystem.

Embraer Latecoere Structures Passenger doors, emergency exit door and forward andaft barrel section

Embraer Messier Dowty Landing gear

Embraer PPG Aerospace Windhshieldtransparencies

Embraer Sagem DéfenseSécurité

Cockpit controls.aircraft conditionmonitoringsystem (ACMS).

Embraer Sonaca Structures The Sonaca Group develops, manufactures, assemblesand tests the wing leading edge slats and produces thefuselage panels (CFII) and sub-assemblies - includingthe keel beam - and the wing skin panels for theEmbraer 170-190 and related programmes (Embraer175/195). These are produced at Gosselies, in Belgium.The EMB 170/190 wing skin panels are manufacturedby SONACA NMF CANADA and SONACA NMF AMERICA.SOBRAER, a Brazilian subsidiary of the Group,assembles the EMBRAER 170/190 lower rear andforward panels and associated kits. It is also in chargeof finishing the EMB 170/190 upper and side panelsand of the CFIII stuffing. The parts required forassembly are partly manufactured by SONACAGosselies (Belgium) and partly by two other Braziliansubsidiaries, SOPEÇAERO and PESOLA.

Embraer Sofrance Air and oil filters,hydraulic filters

Embraer Technofan Fans

Embraer Nord Micro Cabin pressuresystem

Embraer Technical AirborneComponents

control, structuraland system rods

Embraer ASCO Leading edge highlift mechanisms

Embraer Liebherr Aerospace Nose landinggear, mainlanding gear

Landing gear supplied via the Eleb consortium,

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Embraer Kawaskai HeavyIndustries

Structures andcomponents

Kawasaki Heavy Industries, Ltd. participates in thedevelopment of Embraer 170/190 jet transport familyas a partner. Kawasaki is responsible for thedevelopment of the wing structural components. Inaddition to the wing stub (center wing) and mobilewings such as flaps, ailerons and spoilers, whichKawasaki has been producing under contract for theEmbraer 170/175, Kawasaki has added the wing box toits lineup; the company now develops andmanufactures the entire wing of the Embraer 190/195.In late 2003 Kawasaki Aeronáutica do Brasil Indústria,ltda. (KAB), a subsidiary of Kawasaki completed theconstruction of a new plant to assemble the main wingcomponents of the Embraer 190/195, which has beenjointly designed and developed by Embraer andKawasaki. Embraer constructed an aircraft assemblyplant in the city of Gavião Peixoto, 300km northwest ofSão Paulo, complete with 5km runway andaircraft assembly hangar.

Embraer Structil Pastes andstructural films

The pastes and films are produced under a LoctiteAerospace licence to ensure metal/metal andmetal/composite bondings

Embraer Goodrich AircraftLighting Systems

External andinternal lights

Embraer Daher Sub-assemblies The renewable five year contracts started in May 2008and are for composite-based sub-assemblies.

Embraer Microtechnica Actuation controlsystem

Embraer Harco Thermo-couplingsystems

Embraer Akaer Structures (seecomment)

The company is responsible for the center fuselage II(CFII) including aft and rear plugs for the Embraer190/195 and wing to fuselage fairing (WFF) includingventral speed brakes for the170-175. The companyalso provided full design and engineering services(structure and system installation) to implement theSpin Recovery Parachute System (Tailchute) forthe170/190 prototypes’ tail cone, for flight- testcampaign purposes.

Latecoere Aero Vodochody Door structuresand hinges

CZK onebillion

The contract comprises exclusive deliveries of hingesand inner structure of doors for the aircraft Embraer170/190. Czech landing gear manufacturerTechnometra Radotin, a subsidiary company of Aero,has joined the Latecoere programme. Aero hasdeveloped a new production line, with parts suppliesto start in February 2009.

GeneralElectric

Aircelle GE CF34-8E thrustreversers andnacelles

GeneralElectric

WoodwardGovernor

GE CF34-8 fuelmetering unit

GeneralElectric

Techspace Aero Enginecompressor

Techspace Aero is responsible for the design,development and the production of the low pressurecompressor and forward sump, which represents9,3actuators of the CF34-10 programme.

GeneralElectric

Aermacchi GE CF34-8Enacelle

Aermacchi is working with General Electric, throughthe Joint Venture MHD, for the complete nacelleincluding the EBU.

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General

Electric

Woodward

Governor

CF34-10 AMVactuator

General

Electric

Middle River

Aircraft Systems

CF34-10E thrustreverser

Middle River

Aircraft

Systems

General Electric Thrust reverseractuation system

Latécoère Akaer The CenterFuselage I (CFI)module

The company has also been subcontracted byLatécoère to perform part of the package of CenterFuselage III (CFIII) for both Embraer 170-175/190-195versions.

6.2.2 Embraer Phenom 100/300

Contractor Supplier Work package Value Comment Awarded

Embraer Embraer Final assembly Embraer announced that it plansto invest an estimated US$ 50million for the establishment of a150,000-square-foot facility tohouse a final assembly line,capable of producing both thePhenom 100 and Phenom 300executive jet models, as well as apaint shop and a delivery andcustomer design center, atMelbourne International Airport,in Melbourne, Florida. Embraerexpects to create approximately200 skilled positions by 2011. Atthe start of September 2009Embraer started construction ofa 161,000-sq-ft facility at Evora inPortugal which will manufacturecomplex composite airframestructures and components forthe company’s business aircraftand airliners.

May 2008

Embraer Meggitt

Aircraft BrakingSystems

Wheels, brakesand brakingsystems

Over thelife of theprogramme, thecontractvalue isestimatedto be wortharound$250million.

Lightweight aluminium alloywheels with long life steel brakes.

May 2006

Embraer Alcoa Fasteners The company’s UAB™ Blind Bolthas been approved by Embraerfor use on the Phenom 300. Eachaircraft will use approximately3,700 UAB Blind Bolts in themanufacture of compositeempennage and flaps, says Alcoa.

October 2006

Embraer Avionics Services Seats Avionics/Geven will supply theseats and will provide all thesupport for the whole lifetime ofthe fleet.

April 2006

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Embraer BMW GroupDesignworks, USA

Interior andcockpit design

The interior features a privatelavatory and refreshment centre,executive table, entertainmentand digital communications,suite. It incorporates Embraer’sOval LiteTM design. The Phenom100 can be configured to carryfour passengers in a typicalconfiguration. The Phenom 300jet can accommodate nineoccupants, plus luggage.

Embraer Daher Sub-assemblies The renewable five yearcontracts started in May 2008and are for composite-based sub-assemblies.

March 2008

Embraer Meggitt AircraftBraking Systems

Wheels, brakesand brakingsystems (-300)

Thecontract isexpected tobe worth$100million overthe life ofthe aircraft.

The award covers main and nosewheels, steel brakes and a brake-by-wire control system, includingan emergency park brake andanti-skid system.

April 2006

Embraer Eaton Thrust control,landing gearcontrol lever, andlanding gearhydrauliccomponents.

The valueof theaward isestimatedat $20million overthe 10-yearlife of theprogramme.

See above October 2005

Embraer Eaton Thrust control,landing gearcontrol lever, andlanding gearhydrauliccomponents andflap actuators

Therevenuesfrom theseaerospacecontractawards areestimatedat $70million overthe life oftheprogramme.

See above October 2005

Embraer Garmin Integratedavionics suite

The flight deck suite called“ProdigyTM” and features threeinterchangeable 12-inch displays– two primary flight displays(PFD) and one multi-functiondisplay (MFD). The systemintegrates all primary flight,navigation, communication,terrain, traffic, weather, engineinstrumentation, and crew-alerting system data andpresents the compositeinformation on three high-definition displays

November 2005

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Embraer General Electric Bleed air and anti-ice subsystems

First delivery August 2007. Thesubsystems will be manufacturedat Smiths' facility – now GeneralElectric - in Rockford, Illinois.General Electric/SmithsAerospace systems packageconsists of the bleed air systemcontroller, the pressureregulating and shutoff valves(PRSOVs), fan air valves, crossbleed valve, wing and horizontalstabilizer anti-ice valves, and theengine reverse flow check valves.The controller manages the bleedair valves, anti-ice valves andbleed air leak detection sub-systems. In addition to the aboveunits, GE/Smiths will performsystem level performance testingin their test facility on the entirebleed air and anti-ice systems toinclude Embraer supplied engineanti-ice valves, pre-cooler heatexchanger, system ducting,temperature sensors, and piccolotubes.

October 2006.

Embraer Goodrich Air data system The awardis expectedto generateapproximately $20million inoriginalequipmentandaftermarket revenuesover thelife of theprogramme

Goodrich will provide theSmartProbe(TM) Air Data Systemfor the Phenom 300. The systemwill provide all primary air datainformation required by theaircraft.

December 2006

Embraer Honeywell Cabin pressurecontrol andmonitoringsystem(CPCMSTM)

This system provides both cabinpressure control and cabinaltitude monitoring functions.Controls and sensors aremounted remotely from theflight deck to maximize flightdeck panel space, according toHoneywell and the systemarchitecture is designed tointerface directly with theaircraft’s avionics to provide fullyautomated cabin pressurecontrol with no flight crewinteraction during normaloperation. The overall systemincludes an electronic controland monitoring unit (ECMU), anoutflow valve (OFV), and positiveand negative pressure reliefvalves. Via the avionics, thesystem receives aircraft altitudeinformation from the air datacomputer (ADC), destinationlanding altitude from the flightmanagement system (FMS), andengine power setting directlyfrom the throttle.

October 2006

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Embraer Intertechnique Fuel systemincluding fuelcirculationequipment, fuelquantityindication system,fuel managementsystem

Embraer LuminescentSystems Inc

Exterior lightingsystem

In October 2006 AstronicsCorporation, the parent companyof Luminescent Systems Inc,announced it had been selectedto provide exterior lighting forthe Phenom 100 and would workwith Embraer on the certificationprocess to design a completeexterior lighting system, whichuses LED (light emitting diode)and HID (high intensity discharge)lighting technology. Astronics isalso supplying flood lighting andlighting controllers for thecockpit.

October 2006

Embraer Parker Hannifin Flight control sub-systems

Parker Hannifin will supply fourflight control subsystems on thePhenom 300. Parker’s ControlSystems Division will design andproduce the aircraft’s fly-by-wirespoiler system andelectromechanical pitch trimsystem, yaw and roll trimactuation, and flap system, aswell as a centralised electroniccontroller.

September 2007

Embraer Pratt Pratt &Whitney Canada

Engines PW617F turbofan engines forPhenom 100; PW535E turbofanengines for Phenom 300

May 2005

Embraer PPG Transparencies Accordingto PPGAerospaceexpectedproductionlife is morethan 1,000aircraft,whichcould putthe value ofthecontract atmore than$35 million

PPG Aerospace-Transparencieshas been awarded a sole-sourcecontract to develop and producecockpit windows for the Phenom100 and 300. The aircraft will beEmbraer's first to be certifiedwith the PPG Surface Seal rain-repellent coating as the primarywindshield rain removal system,with no windshield wipers.

June 2007

Embraer Tactair Select controlsystems forbrakes, secondaryflight and doors

Tactair Fluid Controls Inc isproviding select controls forwheel brake, secondary flightcontrol, and door controlapplications for the Phenom100/300. On the Phenom 100,Tactair will provide theemergency/park brake controlsystem and passenger doordamper. On the Phenom 300,Tactair will provide the landinggear control valves, stick pusheractuator, rudder spring actuatorand passenger door damper.

June 2007

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Embraer Thales IntegratedElectronicStandbyInstrument (IESI)

Thales announced it will providethe IESI, incorporating the ActiveMatrix Liquid Crystal Display(AMLCD) in a 3 ATI instrumentformat.

May 2006

Embraer Safe FlightInstrumentCorporation

AoA sensor Safe Flight’s AoA sensor provideslocal angle-of-attack informationto the dual channel digital SWPScomputer. The computersupplies stall warning and lowairspeed awareness cues to theintegrated avionics suite as wellas outputs to drive the stickpusher for stall protection.

May 2008

Embraer MTI Global Thermal andacousticinsulation

Productionis expectedto ramp-upin 1Q 2009for bothprogrammes, withestimatedtotalrevenueexpected toexceed$3.8 millionover thelife of thecontracts

MTI-PolyFab has been selectedby Embraer to supply thermaland acoustic insulation for a subsystem of the new Phenom100/Phenom 300 aircraft.

May 2008

AdvancedIndustries, Inc.

Starter generatorand generatorcontrol unit

The company is supplying itsrange of 325 Amp startergenerator systems to thePhenom 100/300 family.

MeggittAerospace

DoncastersPrecision Forgings

Brake torque tube According to Doncasters: “Thetorque tube is an essential partof the brake which encloses thedrive shaft used to absorb theresultant torque (twisting,turning force) from the shaft.Doncasters Precision Forgings inSheffield, UK, will manufacturethe torque tubes from stainlesssteel using the site's four tonneclosed die forging hammer.”

February 2007

General Electric(formerly Smiths)

Bleed air & anti-ice subsystems,

The contract includes the supplyof controller, pressure regulatingand shutoff valves, fan air valves,cross-bleed valve, wing &horizontal stabilizer anti-icevalves, engine reverse flow checkvalves (all on 300 model)

October 2006

Embraer IndústriaAeronáutica Neiva

Sub-assemblies Embraer has contractedassociate company Neiva toproduce sub-assemblies andcomponents for the Phenom100/300 family.

Lee Products Ltd Fluid controlcomponents

No further information currentlyavailable

Meggitt SafetySystems Inc

Engine firedetection systems

No further information currentlyavailable

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Meggitt ThermalSystems

Engine inlet anti-ice system

The company won the order inJanuary 2006 to supply thenacelle anti-ice system for thePhenom 100 engine

January 2006

MeggittAerospace

Senior AerospaceMetal Bellows

Accumulators The units are manufactured atSenior Aerospace Metal Bellowsfacility in Sharon, Massachusettswith deliveries beginning in early2007.

Saint-GobainPerformancePlastics

Radomes

6.2.3 Embraer MSJ/MLJ

Contractor Supplier Work Package Value Comment Awarded

Embraer Rockwell Collins Avionics Both aircraft will feature the Pro LineFusionTM avionics suite. Some of thestandard features on the MSJ and MLJflight deck include: four high-resolution15-inch diagonal Liquid Crystal Displays(LCD) with synthetic vision depiction ofterrain and obstacles; Integrated FlightInformation Systems (IFIS) withelectronic charts and enhanced maps;Advanced Flight Management Systems(FMS) with Wide Area AugmentationSystem that supports LocalizerPerformance with Vertical guidanceapproaches (WAAS/LPV) and RequiredNavigation Performance (RNP)capabilities; Advanced human-machineinterface including graphical flightplanning capability; a TrafficSurveillance System with AutomaticDependent Surveillance Broadcast(ADS-B) capabilities; full-flight regimenauto throttles; and an InformationManagement System (IMS) to managedatabases and facilitate wirelessinteractivity with the groundinfrastructure. Optional featuresinclude graphical weather overlays,paperless cockpit provisions,MultiScan™ weather radar withpredictive windshear; Controller-PilotData Link Communication (CPDLC);surface management system; andenhanced vision display.

April 2008

Embraer Honeywell Engines Thecontract isvalued atmore than$23 billionincludingaftermarket over thelife of theagreement.

Honeywell is providing its HTF7000turbofan propulsion system family forEmbraer's MSJ and MLJ businessaircraft.

April 2008

Embraer Honeywell APU The 36-150 unit has been specified April 2008

Embraer BMWDesignworks

Interior design April 2008

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USA

Honeywell

GKN Nacelles $750million plus

The contract covers the designadaptation of the nacelle, itsmanufacture and full integration withthe engine, with GKN Aerospacedelivering the complete HTF7500Epropulsion system podded into thenacelle direct to the customer'sassembly line. Work will largely becarried out at the Company's Cowes,Isle of Wight facility in the UK.

July 2008

6.2.4 Embraer Legacy 450/500/600/Shuttle

Contractor Supplier Work Package Value Comment Awarded

Embraer B/EAerospace

Water water system The $150millionorderencompasses theBombardierLearjet 85,DassaultFalcon 7X,EmbraerLegacy 450and Legacy500.

Volume production starts in 2011. April 2009

Embraer Embraer Final assembly Final assembly of the Legacy, systemsintegration and testing are carried outat Embraer's aircraft manufacturingfacilities in Sao Paulo. The aircraft isbased on the ERJ 135/135 but withadditional winglets, fuselage strakes,underbelly and cargo compartmenttanks. In July 1992 Embraer signed risk-sharing partnerships on the ERJ-135programme (the basis for theLegacy/Shuttle design) Sonaca, ENEAR,Gamesa, C&D Interiors and Gamesa. Atthe start of September 2009 Embraerstarted construction of a 161,000-sq-ftfacility at Evora in Portugal which willmanufacture complex compositeairframe structures and components forthe company’s business aircraft andairliners.

Embraer DucommunAeroStructures

Ailerons and spoilers $50 millionplus

DAS has been awarded the design andbuild contract for the ailerons andspoilers. Ducommun will develop theparts from concept throughcertification, preliminary engineering,and detailed designs, drawings andspecifications jointly with Embraer. TheDucommun-led engineering team willwork in close collaboration withEmbraer's engineering offices located inBrazil.

February2009

Embraer Meggitt FluidControls

Pneumatic bleed airsystem

The pneumatic bleed air systemscomprise two regulating and sevenshut-off valves and a pneumatic systemcontroller. The systems manage thebleed air from the engines' high and lowpressure outputs for temperature andpressure control and maintain anti-ice

September2008

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systems and the aircraft's cargo, cabinand cockpit environments.

Embraer MeggittAircraftBrakingSystems

Wheel, carbon brake,and brake controlsystems.

The contract is for the 14' main wheel,two-pair carbon brake, six-inch nosewheel and brake-by-wire brake controlsystem. MABS is already a partner onthe Embraer Phenom 100 and 300aircraft and, with Liebherr-Aerospace,on the Embraer 170/175 and 190/195regional jets and the Lineage 1000ultra-large business jet.

Embraer ENAER Fin, tail-plane andelevators

Embraer Gamesa Wings, nacelles,wing/fuselage fairings,main landing gear doorsand leading edges

Embraer SONACA Rear and centre sectionof the fuselage, leadingedges, main door, rearfuselage, engine pylonsand baggage door

SOBRAER, a Brazilian subsidiary of theSonaca Group, is in charge ofassembling the Legacy fuselage sectionsand engine pylons.The parts required for assembly arepartly manufactured by SonacaGosselies (Belgium) and partly by twoother Brazilian subsidiaries, SOPEÇAEROand PESOLA.

Embraer Nordam Radome Nordam has opened a new facility,Nordam Brazil, close to the Embraerplant.

Embraer NordamBrazil

Cabinetry The initial delivery will consist of aLegacy 600 aft baggage bulkhead,vanity, lavatory, and two closets.

Embraer Honeywell Avionics The aircraft features the HoneywellPrimus 1000 digital avionics suite and adual flight management system (DFMS).The suite is integrated with dual digitalair data computers, dual attitude,heading and reference system (AHRS), aTCAS II traffic alert and collisionavoidance system and an enhancedground proximity warning system(EGPWS).

Embraer Avos-Eros Oxygen system

Embraer HamitonSundstrand

Air conditioning system

Embraer Honeywell Air conditioning andtemperature controlsystem

The Legacy’s air- conditioning systemwill use bleed air from either theHoneywell 36-150 auxiliary power unitor the Honeywell HTF7000 engines tocool the cabin.

Embraer Honeywell Engines Both aircraft are powered by HoneywellHTF7500E engines.

Embraer Honeywell Ovation Selectaudio/video and cabinmanagement system(AVCMS)

The Ovation Select cabin connectionsuite provides high-definitionaudio/video and fully digital cabinmanagement. The individual touchscreen control panels providepassengers with controls for suchAVCMS components as Blu-ray, LCD

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monitor, 3-D moving map system,lighting, temperature, cabin speakers,and window shades, among others,including a media dock for iPod use, orany carry-on A/V equipment.

Embraer DucommunAeroStructures

Tailcone and fuselagedoors

The DAScontract isvalued inexcess of$100million atcurrentlyanticipatedbuild rates.

Embraer LiebherrAerospace

Pressurisation system

Embraer InternationalNacelleSystems(GoodrichAerospace)

Nacelles and theoptional clamshell thrustreversers

Embraer Goodrich Air data systems andcrew seats

Thepotentialvalue of theselectionsis roughly$110million overthe life oftheprogrammes for bothoriginalequipmentandaftermarket revenue

The ADS features Goodrich'sSmartProbe(TM) technology to provideall critical air data parameters to theaircraft's flight control, pilot display andother systems. The crew seatsincorporate improvements in reliabilityand safety.

Embraer Goodrich Windshield heatcontrollers

Part of a contract won by thecompany to supply these systems toERJ-145 aircraft. Windshield heatercontrollers regulate power used tohelp keep the windshield free of ice,snow and fog. Goodrich is teamedwith PPG Industries, windshieldmanufacturer for the ERJ 145, to offerwindshield and controllerreplacement packages to currentoperators beginning in May 2002.

November2002

Embraer Goodrich Wheels and brakes

Embraer ParkerHannifin

Fuel managementsystem

Embraer Rolls Royce Engines The AE 3007 is a single-stage, direct-drive, wide-chord fan design whichachieved FAA/JAA certification in 1995.

Embraer HamiltonSundstrand

APU Tail mounted APIC APS-500 auxiliarypower unit

Embraer PPG Windshields

Embraer EDE –Embraer

Landing gear Embraer Liebherr Equipamentos doBrasil S.A. was established in 1999 as ajoint-venture between the Brazilian

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Liebherr company Embraer – Empresa Brasileirade Aeronáutica S.A. and the LiebherrGroup.

Embraer Hydro-Aire Brake-by-wire controlsystem,

Part of the Crane Aerospace group

Embraer Goodyear Tyres Flight Eagle tyres specified

Embraer Eaton Cockpit components Part of acockpitcomponents contractfor for theERJ145/175familycorporatejet aircraftvalued atmore than$35 millionover tenyears

A variety of electrical and actuationcomponents for panels and cockpitcontrols.

6.3 China

6.3.1 Eurocopter/CATIC/ST Aerospace EC 120B Colibri

Purchaser Supplier Work Package Value Comment Dateawarded

Eurocopter/CATIC/STAerospace

Eurocopter Final assembly,instrument panel,landing gear, seats, rotorsystem, transmission.

Eurocopter has a 61% share of theprogramme.

1993

Eurocopter/CATIC/STAerospace

STAerospace

Tailboom, fin, horizontalstabiliser, Fenestron,general doors andinstrument pedestal.

In April 1999 Singapore TechnologiesAerospace Ltd, established a wholly-owned subsidiary STAIS to provideengineering services, manage andperform services for the post-development and production phaseof the EC120 programme. STAerospace has 15% of the helicopterprogramme.

1993

Eurocopter/CATIC/STAerospace

SagemAvionics

Automatic flight controlsystem

The company is providing its AP 85system, a two-axis autopilot.

Eurocopter/CATIC/STAerospace

HafeiAviationIndustryCompany

Cabin structure anddoors, engine cowlings,pod central andintermediate structureand fuel system

CATIC (the China National Aero-Technology Import & ExportCorporation) negotiated a 24% sharein the programme and the work iscarried out by the Hafei AviationIndustry Company.

1993

Eurocopter/CATIC/STAerospace

Turbomeca Engines The Turbomeca Arrius 2F turbineengine generates 504 shp/376 kWand is fitted with FADEC (FullAuthority Digital Electronic Control).

Eurocopter/CATIC/STAerospace

ThalesNorthAmerica

Displays and avionics The company is providingmultifunction and vehicle/enginemanagement displays. The suite ispart of the “Avionique Nouvelle”

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family used in modular form on otherEurocopter models.

Eurocopter SagemDéfenseSécurité

Cockpit displays

Eurocopter Sofrance Fuel strainer, anti-sandengine filter, oli filter,

Eurocopter HispanoSuiza

FADEC for theTurbomeca Arriel 1E2engine

6.3.2 Eurocopter EC175/ HAIG Z15

Purchaser Supplier Work Package Value Comment Dateawarded

Eurocopter/Harbin AviationIndustry

Eurocopter See comment The programme is a 50:50 jointproduction enterprise betweenEurocopter and Harbin AviationIndustry Company (HAIG) (seebelow). Eurocopter has responsibilityfor the main gearbox, tail rotor,avionics, autopilot, hydraulic andelectrical systems, doors andtransparencies. Eurocopter is also thetechnical lead and system integrator.

Eurocopter/Harbin AviationIndustry

Eurocopter Avionics The avionics display suite willcomprise four six- by eight-inchdisplays with an optional fifth display.

Eurocopter/Harbin AviationIndustry

HarbinAviationIndustryCompany(HAIG)

See comment HAIG is responsible for the airframe,tail and intermediate gearboxes, mainrotor, fuel system, flight controls andlanding gear. In November 2008 HAIGdelivered the first EC175 airframestructure to Eurocopter at its factoryin Harbin/China

Eurocopter/Harbin AviationIndustry

ZhongNanTransmissionMachineryWorks ofChangshaAviationIndustry(ZTMW)

Structures

Eurocopter/Harbin AviationIndustry

ChinaNationalAeroTechnology(LAMC)

Airframe components

Eurocopter/Harbin AviationIndustry

Pratt &WhitneyCanada

Engines The EC 175 will be powered by twoPratt & Whitney Canada PT6C-67Eengines

Eurocopter Hispano-Suiza

Accessory gearbox June 2006

Eurocopter APPH Landing gears The value ofthe contract

The contract involves the design andmanufacture of landing gears for both

December

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for OriginalEquipmentand spares isanticipated tobe in excessof $100million ofrevenue

the French EC175 helicopter as wellas the Chinese variant - the Z15. Themarket for this programme isexpected to be up to 1000helicopters, with a production life of20 years. The initial currentproduction run is anticipated atbetween 680 and 800 aircraftplanned to start in 2011 and theprototype is planned to fly in 2009.

2006

Eurocopter/Harbin AviationIndustry

Aero Sekur External life raft system The life-rafts are stowed inaerodynamic canisters, locatedoutside the helicopter cabin.

July 2009

6.3.3 AVIC/Commercial Aircraft Corporation of China (ACACC) ARJ21-700

Contractor Supplier Work package Value Comment Awarded

AVIC 1 AVIC ICommercial AircraftCompany(ACAC)

See comment ACAC is a consortium of sixcompanies and aerospace researchinstitutes – including the ShanghaiAircraft Research Institute and theXian Aircraft Design and ResearchInstitute - involved in thedevelopment and manufacture of theaircraft.

ACACC ShanghaiAircraftCompany

Final assembly ACCAC member.

ACACC ShenyangAircraftCorporation

Empennage ACCAC member.

ACACC XianAircraftCompany

Wings and fuselage ACCAC member.

ACACC ParkerAerospace

Fuel, hydraulic and flightcontrol systems

The contractsare expectedto yield asmuch as $275million inoriginal-equipmentrevenues forParker, withadditionalrevenuesfrom MROand support

Parker Aerospace is working withACAC to develop, integrate, build,test, certify and provide service forthe three systems throughout thelife of the programme, as leadintegrator for the fuel and hydraulicsystems, and in partnership withHoneywell on the flight controlsystem. The company hasestablished new aerospace facilitiesin China to support the work.

September2003

ACACC GoodrichHellaAerospaceLightingSystems

Lighting systems Goodrich is supplying systems fornearly every lighting fixture. Fromexterior to interior -- including thecockpit – the aircraft features LightEmitting Diode (LED) and HighIntensity Discharge (HID) technology

April 2004

ACACC Honeywell Fly-by-wire controlsystem

Theestimatedvalue of theprogrammeforHoneywell,

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whichincludes fly-by-wirecontrols foreach newairplane plusfollow-onsupport andspare parts,exceeds $200million overthe life of theprogramme

AVIC BombardierAerospace

See comment AVIC I and Bombardier Aerospacehave signed an agreement for a new,long-term strategic cooperation inthe 90- to 149-seat commercialaircraft market. Bombardier intendsto participate in the development ofAVIC I’s five-abreast ARJ21-900aircraft. Under the terms of theagreement Bombardier intends toinvest $100 million US in the ARJ21-900 project, when launched, andprovide technical assistance towardsthe development of the aircraft.Furthermore, in pursuit of its goal tobecome a major international Tier 1structural supplier, AVIC I plans toinvest $400 million US for researchand development, construction ofnew facilities and equipment for theCSeries aircraft programme, should itbe launched.

June 2007

ACACC RockwellCollins

Flight displays, avionics,flight managementsystem

Rockwell Collins is supplying five 10inx 8in liquid crystal adaptive flightdisplays and the avionics suite whichis based on the Rockwell Collins ProLine 21 system. This includes a VHF-4000 voice and data transceiver andan IRU-4000 digital data and audioprocessor. Rockwell Collins issupplying its FMS 4200 flightmanagement system to the aircraftalong with a solid-state weather radarandAHS-3000 attitude headingreference system

ACACC LiebherrAerospace

Landing gear The aircraft features twin-wheeledtricycle-type landing gear. Liebherr-Aerospace SAS, together with WuhanHangda Aero Science & TechnologyDevelopment Co. Ltd haveestablished a repair centre foraerospace systems and componentsin Wuhan, People’s Republic of China.The new company, Liebherr HangdaAerospace Technologies (Wuhan) Co.Ltd. is dedicated to the maintenanceof all Liebherr Aerospace products aswell as heat exchangers installed onAirbus, Boeing, Bombardier andEmbraer aircraft operating in thePeople’s Republic of China. It will alsoprovide repair services to ACAC andairlines customers for the LiebherrAerospace products installed on theregional aircraft ARJ 21.

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ACACC Goodrich Wheels and brakes

ACACC Microtechnica

Actuation controlsystem

ACACC HamiltonSundstrand

APU The company is supplying its APS2300 auxiliary power unit and a back-up ram air turbine generator.

ACACC FACC Passenger cabin The complete cabin contains amultiplicity of different components -from cockpit dividers to the hatracks,ceiling and sidewall panels and theequipment for the galley, wardrobe,toilets, lavatory and floor coverings.The components for the first two testflight units were delivered in theperiod July until November 2007. InMarch 2008 FACC was due to deliverthe first complete interior for the newARJ21 to ACAC Shanghai where thefinal assembly of the Chinese regionaljet is taking place.

March2004

ACACC GeneralElectric

Engines The aircraft is powered by twoGeneral Electric CF34-10A engines

ACACC SagemDéfenseSécurité

Cockpit controls

ACACC MeggittAircraftBrakingSystems

Brake control systems,carbon brakes

ACACC Air Cruisers Evacuation systems Air Cruisers supplies evacuationsystems (escape slides and/or sliderafts) to the following aircraft:Boeing 737, 767, 777,Airbus A319,A320, A321, Sukhoi SuperJet 100 andthe ARJ-21

ACACC Technofan Fans, valves

ACACC Argosy Adhesives and coatings

ACACC ECE Landing light lamps

ACACC Alcoa Alloys and materials Alcoa advanced materials on theARJ21 include: advanced heat-treatedsheet and plate alloys from Alcoa’sDavenport (Iowa); extrusions madefrom proprietary alloys and processtechnologies for the wing andfuselage stringers, floor beams andseat tracks. The extrusions aresourced from Alcoa’s Lafayette,(Indiana), Changwon (S. Korea) andChandler, (Arizona) plants.

General Electric Alcoa Alloys and materials Alcoa Fastening Systems’ speciallyengineered aerospace fastenersincluding engine nuts, inserts and

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studs are used on the two GE CF34-10A engines used to power theaircraft. The engines are equippedwith airfoil castings and structuralcomponents from Alcoa’s Power andPropulsion businesses in Whitehall,(Michigan), Wichita Falls, (Texas), andWinsted and Branford, (Conn.).

LiebherrAerospace

CESA Hot air non-return valve

General Electric MagellanAerospace

Engine core assembly

General Electric GeneralElectric

(formerlySmithsAerospace)

CF34-10A thrust reversalactuators

General Electric Aermacchiand MiddleRiverAircraftSystem

Engine inlet

General Electric JAMCO CF34 turbine shroud

Middle RiverAircraft System

GeneralElectric(formerlySmithsAerospace)

Thrust reverseractuation system

General Electric Hartwell CF34-10A hold-openthrust rod

Hartwell Corporation is providing thehold-open rods and rate controldevice for GE CF34-10A engines.Theaft hold-open thrust rod assembly isbased on Hartwell’s existing designcurrently in service on an existingmilitary transport aircraft enginenacelle.

June 2007

General Electric MeggittVibrometer

CF34-10A engine controlsystem and enginevibration monitors .

General Electric TechspaceAero

Techspace Aero isresponsible for thedesign, developmentand the production ofthe low pressurecompressor and forwardsump, which represents9,3% of the CF34-10Aprogramme.

6.3.4 COMAC C919

Contractor Supplier Work package Value Comment Awarded

CommercialAircraftCorporation ofChina (COMAC)

Seecomment

See comment Seecomment

China's Large Commercial Aircraft Corphas named its 190-seat single-aisle, twinengined-aircraft the C919. First flightplanned for 2016. The C919 will beassembled in Shanghai and majorpartners already announced are: AVIC

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companies Chengdu Aircraft Corp, XianAircraft Corp, Shenyang Aircraft Corp,and Shenxi Aircraft Corp. In June 2009.In June 2009 Messier-Dowty announcedthat it has signed a letter of intent tocooperate with Landing Gear AdvancedManufacturing Corp. (LAMC) of China tomake a joint offer to COMAC) for C919landing gear. The agreement comprisescomplete landing gears, includingstructures, wheels and brakes.

CommercialAircraftCorporation ofChina (COMAC)

Safran/Nexcelle

See comment During the September 2009 AsianAerospace show Safran signed aframework agreement with AVIC forwork on the aircraft as did Nexcelle - ajoint venture company created by GE'sMiddle River Aircraft Systems andAircelle, a Safran group company tosupply nacelles. According to AVIC:“AVIC Aircraft and Nexcelle willconsider a broad range of nacelle andcomponents manufacturing and designopportunities, including currentproduction programmes and for newaircraft. Categories could range frombusiness jets to large airliners.”

6.4 Czech Republic

6.4.1 Aero Vodochody L-159 T1

Purchaser Supplier Work Package Value Comments Dateawarded

AeroVodochody

Honeywell Cockpit pressure controlsystem

AeroVodochody

Jihlavan as Hydraulic components Hydraulic circuit components forlanding gear controls, landing brakecontrols, landing-gear door controls,aerodynamic brake controls, lift flapcontrols, canopy controls and in aileronand elevator servo-actuators.

AeroVodochody

Vzlu-Speel Aircraft monitoringsystem (AMOS)

The AMOS interfaces with Boeing'savionics via MIL-STD-1553B data bus.AMOS complies with MIL-STD-810E/461D and TSO-C124requirements, according to thecompany.

AeroVodochody

Boeing Avionics integrationKey elements to the avionicssystem are outlined below. Theaircraft features MIL-STD-1553integrated avionics with two multi-function colour displays andanalogue instruments for backup. Itincorporates Hands On ThrottleAnd Stick (HOTAS).

AeroVodochody

Honeywell Navigation system The navigation system is GPS-basedwith Ring Laser Gyro INS as backup.

AeroVodochody

RockwellCollins

Communications system

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AeroVodochody

Mason Control grip and stick

AeroVodochody

Thales(Vinten)

Countermeasuresdispensing system

AeroVodochody

Honeywell Displays

AeroVodochody

Honeywell Flight control computer

AeroVodochody

FlightVisions

HUD The HUD is the FV-3000. The companyis owned by Esterline CMC Electronics.

AeroVodochody

FIAR/Honeywell

RadarThe radar has five air-to-air modesincluding track-while-scan withfour air combat sub-modes. FIAR isnow part. FIAR is part of theFinmecanica group.

AeroVodochody

BAESystems

Radar warning receiver

AeroVodochody

PBS VelkaBites

Air generator startsystem and APU

AeroVodochody

Hawker Battery A 25Ah VARTA battery has beenspecified.

AeroVodochody

HamiltonSundstrand

Generator LUN-2134 back up generator

AeroVodochody

Honeywell/ITEC

Engine The Honeywell/ITEC F124-GA-100 nonafterburning turbofan produces 28,2 kNthrust (1x). The engine is equipped witha dual redundant FADEC. TheInternational Turbine EngineCorporation (ITEC), a joint venturebetween Honeywell and the AeroVodochody space IndustrialDevelopment Corporation (AIDC) of theRepublic of China.

AeroVodochody

Moravan Brakes The brakes are Moravan K52 air cooledhydraulic brakes with anti-skid system.

AeroVodochody

Moravan Wheels The wheels are Moravan K-36s with610mm x 215 mm tyres on the mainunits. The nose unit has a Moravan K37wheel and 460 x 180 mm tyres

AeroVodochody

Intertechnique

Oxygen system

AeroVodochody

DynamicControlCorporation/HamiltonSundstrand

Stores managementsystem

There are seven hardpoints to carrystores: three under each wing and oneunder the centre fuselage.

AeroVodochody

Goodrich GH-3100 ElectricalStandby InstrumentSystem (ESIS) and theTactical AirborneNavigation System(TACAN)

Designed to replace conventionalelectro-mechanical standby attitude,airspeed and altitude instruments, thesolid-state GH-3100 ESIS is capable ofproviding all three functions, plusheading, slip/skid, navigation data andvertical speed, in a single 3" ATI, flatpanel display. The GH-3100 has an

June 2001

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internal air data sensor for altitude,airspeed and vertical speed data as wellas a self-contained inertialmeasurement cluster which replacesthe need for a traditional electro-mechanical gyro. The system can trackup to four ground stationssimultaneously in range and two inbearing and can be used for Air-to-Airand Air-to-Ground operations and isNight Vision Goggle (NVG) compatible.

AeroVodochody

LetovLeteckaVyroba

Wing, rear fuselage,empennage

6.5 India

6.5.1 ADA Light Combat Aircraft-Tejas

Purchaser Supplier Work Package Value Comment Dateawarded

The IndianAeronauticalDevelopmentAgency (ADA)

SpectrumInfotech

Environmental controlsystem

The company is a wholly ownedsubsidiary of Larsen & Toubro Ltd

The IndianAeronauticalDevelopmentAgency (ADA)

HAL Electrical system The company is the prime industrialcontractor for the programme.

The IndianAeronauticalDevelopmentAgency (ADA)

HAL Hydraulic system

The IndianAeronauticalDevelopmentAgency (ADA)

HAL Gas turbine starter unit Model GTSU-110 has been specified.

The IndianAeronauticalDevelopmentAgency (ADA)

Martin-Baker

Ejection seat Martin Baker zero-zero ejection seatshave been specified.

The IndianAeronauticalDevelopmentAgency (ADA)

AeronauticalDevelopmentEstablishment/Bharat/CSIO

Avionics The core avionics system is outlinedbelow with subsequent entrieshighlighting important sub-systems. Theavionics architecture is based on a threebus system (MIL-STD-1553B). A 32-bitmission computer (MC) is responsiblefor operations computations, flightmanagement, reconfiguration /redundancy management and in-flightsystem self-tests. Navigation andguidance is via Inertial NavigationSystem (INS).

The IndianAeronauticalDevelopment

AeronauticalDevelopment

Cockpit displays

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Agency (ADA) Establishment/Bharat/CSIO

The IndianAeronauticalDevelopmentAgency (ADA)

HAL Communications system The V/UHF equipment provides simplextwo way voice and data communicationin the VHF and UHF frequency bands.

The IndianAeronauticalDevelopmentAgency (ADA)

HAL Utility systemsmanagement

The IndianAeronauticalDevelopmentAgency (ADA)

HAL Landing gear The aircraft features hydraulicallyretractable tricycle landing gear with apair of single inward-retracting mainwheels and a steerable, twin-wheelforward-retracting nose gear.

The IndianAeronauticalDevelopmentAgency (ADA)

BAESystems

Digital flight controlcomputer

The IndianAeronauticalDevelopmentAgency (ADA)

BharatElectronics

Flight displays The cockpit flight displays feature two76mm x 76mm colour liquid crystalmulti-function displays developed b

The IndianAeronauticalDevelopmentAgency (ADA)

AeronauticalDevelopmentEstablishment

Flight control system The FBW system features quadruplexredundant architecture

The IndianAeronauticalDevelopmentAgency (ADA)

CSIOChandigarh

Head up display

The IndianAeronauticalDevelopmentAgency (ADA)

RCI, Control and coding unit The unit connects the flight controls toaircraft equipment points. Softwaredeveloped by ADA.

The IndianAeronauticalDevelopmentAgency (ADA)

ElectronicsResearchandDevelopmentEstablishment /HAL

Radar (see also below) The pulse Doppler radar, mountedwithin a Kevlar radome, featuresmultiple target search and track-while-scan and ground-mapping modes.

The IndianAeronauticalDevelopmentAgency (ADA)

AdvancedSystemsIntegrationandEvaluationOrganisation (ASIEO)

Electronic warfare suite The electronic warfare suite featureselectromagnetic and electro-opticreceivers and jammers and includes alaser warner, missile approach warner,and chaff and flare dispenser.

The unit also features jam resistantradio communications.

The IndianAeronauticalDevelopment

ADE Display processors

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Agency (ADA)

The IndianAeronauticalDevelopmentAgency (ADA)

ElectronicsResearchandDevelopmentEstablishment

Mission preparation anddata retrieval unit

The IndianAeronauticalDevelopmentAgency (ADA)

GeneralElectric

Engine The General Electric 85 kN F404-GE-IN20 turbofan engine features fullauthority digital engine control. HAL hasplaced an order for 24 F404-GE-IN20engines.

February2007

The IndianAeronauticalDevelopmentAgency (ADA)

KumaranIndustries

Engine components

The IndianAeronauticalDevelopmentAgency (ADA)

NationalAerospaceLaboratories

Rudder The aircraft’s structure is made of 40%composites.

The IndianAeronauticalDevelopmentAgency (ADA)

NationalAerospaceLaboratories

Fin The fin is a single monolithichoneycomb piece and features graphitecomposites

The IndianAeronauticalDevelopmentAgency (ADA)

NationalAerospaceLaboratories

Fuselage A mixture of aluminium and lithiumalloys, titanium alloys and carboncomposites have been used in theconstruction of the aircraft.

The wing structure includes compositespares and ribs with a carbon fibre-reinforced plastic skin.

The IndianAeronauticalDevelopmentAgency (ADA)

ElettronicaAster

Brake system meteringcontrol valve

The IndianAeronauticalDevelopmentAgency (ADA)

JS Lamps,Delhi

Lights

The IndianAeronauticalDevelopmentAgency (ADA)

MPCProducts

Autothrottle

The IndianAeronauticalDevelopmentAgency (ADA)

Goodrich Power take-off shafts

The IndianAeronauticalDevelopmentAgency (ADA)

Goodrich Air data/sensor systems,AOA and stall warningsystems, engine nozzlehydraulic pumps, lights

The IndianAeronautical

Sanghvi Wires and cables

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DevelopmentAgency (ADA)

Aerospace

6.6 Korea

6.6.1 Korea Aerospace Industries T-50/A-50 Golden Eagle

Purchaser Supplier Work package Value Comment Dateawarded

KoreaAerospaceIndustries

Moog Hydraulic actuators In its firstquarter of2005financialreportMoog saidrevenuefrom The T-50programmewasestimatedat $1million

The company opened amanufacturing/repair site in IncheonCity Korea, in August 2006. The facilityhas a site of 8455m2 (91,000 sq ft) anda floor area of 1962m2 (21,120 sq ft).

KoreaAerospaceIndustries

ParkerControlSystemsDivision -Military

Hydraulic actuators

KoreaAerospaceIndustries

Messier-DowtyInternational

Landing gear Messier-Dowty designs andmanufactures the nose landing gearand main landing gear structures andactuators, integrating all the associatedlanding gear sub systems, includingbrake controls and steering sub systemsand the wheel and brake hardware.thecompany is partnered with WIA Corp inthe work. Each unit features a singlewheel and is fitted with an oleopneumatic shock absorbers. The mainwheels are retracted into the engine airintakes structures. The nose wheelretracts forward.

KoreaAerospaceIndustries

ElectricGeneralAviation(formerlySmithsAerospaceElectronicSystems)

Voice/data recorders

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KoreaAerospaceIndustries

LockheedMartin

Radar

KoreaAerospaceIndustries

BAESystems

HUD, flight controlcomputers, control stickassemblies,accelerometer sensorassemblies, and

BAESystemshas beenawardedcontractsworth morethan $80millionrelated totheproductionof the T-50

The contracts provide for in-countryproduction support and training in theRepublic of Korea.BAE Systems is a subcontractor toKorean Aerospace Industries and LGInnotek Ltd. It began phase onedeliveries in December 2004; phase twodeliveries are due to be completed in2010.

KoreaAerospaceIndustries

MartinBaker

Ejection seat

KoreaAerospaceIndustries

Claverham Ejection seat electro-mechanical seat/raiseactuator

KoreaAerospaceIndustries

HoneywellDefenseAvionicsSystems Div

Cockpit displays The cockpit displays include two127mm full colour Honeywellmultifunction and instrumentationdisplays.

KoreaAerospaceIndustries

Goodrich Power take-off shafts

KoreaAerospaceIndustries

Goodrich Air data systems, enginenozzle hydraulic pumps,fuel measurement,management, icedetection systems,aircrew escape systemsspares, exterior lights

KoreaAerospaceIndustries

WhittakerControls,Inc

Valves

KoreaAerospaceIndustries

LockheedMartinAeronautics Co., FortWorth

Wing, avionics, flightcontrol systems

KoreaAerospaceIndustries

HamiltonSundstrand

APU

KoreaAerospaceIndustries

HamiltonSundstrand

Emergency powersystem

The emergency power system is basedon high voltage, high energy densitythermal batteries which serve as theprimary source of power. An electricmotor driven hydraulic pump and aDC/AC inverter provide the emergencyflight control power. An APU mountedstarter/generator providesupplementary power when thethermal battery is discharged.

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KoreaAerospaceIndustries

HamiltonSundstrand

Pneumatic output,electric starter system,integral oil system,FADEC unit, flight criticalsoftware to DO-178Blevel A, automatic start,MIL-STD-1553 or ARINC429 data bus, serial portfor data retrieval, over-speed protection, over-temperature protection,low oil pressure andhigh oil temperatureprotection, air turbinestarter control, mainengine start, gearboxmotoring speed, torquelimiting

KoreaAerospaceIndustries

ElectricGeneralAviation(formerlySmithsAerospaceElectronicSystems)

Main generator system(MGS)

The MGS is a 40 kVA variable speedconstant frequency-based generatorsystem. General Electric is assisting theT-50 Korea industry participant, KyungjuAerospace Electrical Systems (KAES) forlocal production of the T-50 MGS.

KoreaAerospaceIndustries

ElectricGeneralAviation(formerlySmithsAerospaceElectronicSystems)

Voice/data recorders

KoreaAerospaceIndustries

SargentFletcher

External fuel tank The 150-gallon fuel tanks can becarried on the centerline station andthe inner under-wing stations in aone-, two- or three-tankconfiguration. A single tank extendsmission duration/range about 15-20%.

KoreaAerospaceIndustries

GrimesAerospaceCo.

Flight instrumentdisplays

KoreaAerospaceIndustries

Argo Techsystem

Fuel system

KoreaAerospaceIndustries

ElectricGeneralAviation(formerlySmithsAerospaceElectronicSystems

Battery charging system

KoreaAerospaceIndustries

GE AircraftEngines(GEAE)

Engine $80 million The F404-GE-102 engine, with a three-fan stage and seven axial stagearrangement, is equipped with FADECand generates 78.7kN with after-burn.

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KoreaAerospaceIndustries

Korean AirLines,AerospaceDivision

Aft fuselage and tailsection

KoreaAerospaceIndustries

KoreaAerospaceIndustriesLtd. (KAI)

Mid-fuselage section KAI is the prime contractor and isresponsible for the design of thefuselage and tail unit.

KoreaAerospaceIndustries

MeggitAircraftBrakingSystems

Carbon brakes

KoreaAerospaceIndustries

LockheedMartin

Radar The APG-67(V)4 multimode fire controlradar has been selected.

GeneralElectric

GoodrichFuel andUtilitySystems

Fuel systems

GeneralElectric

Goodrich F-404 engine pump

6.7 Russia

6.7.1 Sukhoi SU 35/SU 30-MKI

Purchase Supplier Work Package Value Comment Dateawarded

Sukhoi DesignBureau

SukhoiDesignBureau

See comment Sukhoi Design Bureau is responsible forthe development, testing and overallserial production management,

Sukhoi DesignBureau

KnAPPO See comment The aircraft is assembled by KNAPPO,part of the Sukhoi Aviation HoldingJoint Stock Company.

Sukhoi DesignBureau

Zvezda Ejection seat The aircraft features the K-36D-3.5Ezero-zero ejection seat.

Sukhoi DesignBureau

AvionikaMoscowResearchandProductionComplexJSC (MNPKAvionika).

Fly-by wire controlsystem

Sukhoi DesignBureau

NPO Saturnand UfaEngineProductionAssociation

Engines The aircraft is powered by two SaturnThe UFA 117S engines feature thrust-vectoring nozzle control, each supplying86.3kN thrust or 142.2kN withafterburn, a development of the AL-

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(UMPO) inUfa.

41F.

Sukhoi DesignBureau

TikhomirovScientific-ResearchInstitute ofInstrumentDesign(NIIP)

Radar The aircraft features an X-bandmultimode phased array Irbis-Eradar. It is reported to be bale totrack up to 30 aerial targets at 350-400 km range.

Sukhoi DesignBureau

UOMZ (UralOptical andMechanicalPlant)

Electro-optical searchand track system

The OLS-35 electro-optical search-and-track system combines a scanning infra-red direction finder and thermalimaging module for target detectionand identification with a laserrangefinder/designator and TV camera.

Sukhoi DesignBureau

InstrumentDesignBureau ofRamenskoye andaffiliatedcompaniesofTekhnokompleksResearchandProductionAssociation

Displays The aircraft features two230mm×305mm high-resolution MFI-35liquid crystal displays with amultifunction control panel and a IKSh-1M head-up display.

Sukhoi DesignBureau

PMZVoshod

Flaperon controlactuator, leading-edgeactuator, horizontal tailactuator, flow controlmodule of horizontal tailcontrol, leading-edgeflow control module,servo unit for leading-edge fly-by-wire system,electrohydraulic flowcontrol module forrudder and flaperoncontrol, electrohydraulicflow control Module forengine bell deflectioncontrol, electrohydraulicactuator of radarsystem, rudder andflaperon actuatormodule, multichannelservo unit for horizontaltail fly-by-wire system,multichannel poweractuator for tail surfacefly-by-wire system

Sukhoi DesignBureau

HindustanAeronautics Limited

Assembly The Su-30MKI has been jointly designedby the Sukhoi Design Bureau andHindustan Aeronautics Limited(HAL). In2000, an agreement was reached forthe license production of 140 Su-30MKIs by HAL in India; the first India-built Su-30MKI is to roll out from HALNasik in 2010.

HindustanAeronauticsLimited

Elbit Displays Displays are based on Elbit Su 967 HUDunits and seven liquid crystalmultifunction displays, six 127 mm x127 mm and one 152 mm x 152 mm

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display.

HindustanAeronauticsLimited

DefenceResearchandDevelopmentOrganisation (DRDO)

Radar warning receiver Sukhoi Su-30MKI features the“Tarang” radar warning receiver.

HindustanAeronauticsLimited

ELTA Self-protection jammer The aircraft features an Elta EL/M-8222self-protection jammer.

6.7.2 Antonov AN-148

Contractor Supplier Work package Value Comment Awarded

TheAviant/Kharkov/Voronezhconsortium

Aviant Final assembly The programme is a risk sharingagreement between the Aviant Kievplant, Kharkov State AircraftManufacturing Company and theVoronezh Joint Stock Aircraft BuildingCompany (Russia). Final assembly takesplace at the Kiev Aviant plant. Aviantalso manufactures fuselage section F-1;fuselage section F-2; and the outer wingpanels.

TheAviant/Kharkov/Voronezhconsortium

VoronezhJoint StockBuildingCompany

Wing components,engine pylons

The company manufactures: fuselagesection F-3, the canopy main frame,doors, door panels; wing leading edgepanels; mechanisms, lifting bags andreduction gears for wing high-liftdevices; aggregates of wing high-liftdevices; tail unit. The wing high-liftdevices and engine pylons forattachment of the main engines aredelivered to Antonov for integrationwith the wing.

TheAviant/Kharkov/Voronezhconsortium

AntonovASTC

Passenger cabin interior,anti-icing system pipes,doors and hatches,assembly work.

TheAviant/Kharkov/Voronezhconsortium

KharkovStateAircraftManufacturingCompany

Wing

TheAviant/Kharkov/Voronezhconsortium

Motor SichJSC

Engines The 436-148 is a variant of the D-436T1installed on the Tu-334. The engine wasdesigned by Ivchenko-Progress StateEnterprise.

TheAviant/Kharkov/Voronezhconsortium

Ukranalit Fire detection systems

TheAviant/Kharkov/Voronezh

Electronprylad JSC

Flight recorders

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consortium

TheAviant/Kharkov/Voronezhconsortium

UkrainianScientificResearchInstituteRadioapparatura

(UkrNIIRA)

Communicationsequipment

TheAviant/Kharkov/Voronezhconsortium

NII Buran Components

TheAviant/Kharkov/Voronezhconsortium

AviacontrolJSC

Altimeters

TheAviant/Kharkov/Voronezhconsortium

Aviapribor– HoldingJSC(Moscow),

Avionics and aircraftdata acquisition systems

TheAviant/Kharkov/Voronezhconsortium

Joint AviaTeploobmennik JSC

Pressurisationcomponents

TheAviant/Kharkov/Voronezhconsortium

TechpriborJSC

Engine monitoringsystem

TheAviant/Kharkov/Voronezhconsortium

Rubin JS Hydraulic systems

TheAviant/Kharkov/Voronezhconsortium

CrouzetAutomatismes

Arc fault circuit breakers

TheAviant/Kharkov/Voronezhconsortium

Thales Flight control system

TheAviant/Kharkov/Voronezhconsortium

Liebherr Integrated airmanagement system

TheAviant/Kharkov/Voronezhconsortium

Litef Attitude and headingreference systems

The systems use fibre optic rate gyrosto provide aircraft motion and attitudedata to the primary flight control andpilot instrument systems.

TheAviant/Kharkov/Voronezhconsortium

GoodrichHellaAerospace

Lighting systems

TheAviant/Kharkov/Voronezh

PallCorporation

Filtration systems

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consortium

TheAviant/Kharkov/Voronezhconsortium

MonogramSystems

Interiors

TheAviant/Kharkov/Voronezhconsortium

DunlopAircraftTyres

Aircraft tyres

TheAviant/Kharkov/Voronezhconsortium

RockwellCollins

Radio communicationsequipment

6.7.3 Irkut Corporation MC-21

Contractor Supplier Work package Value Comment Awarded

IrkutCorporation

Gidromash Landing gear August2009

IrkutCorporation

HamiltonSundstrand

Electric powergenerating system,secondary electricalpower distribution,auxiliary power unit,wing anti-ice andbleed airconditioning for thenitrogen generationsystem.

The valueof all MC-21 work isexpected tobe worthapproximately $2.3billion overthe life oftheprogramme

The nitrogen generation system is beingdeveloped with Intertechnique

August2009

IrkutCorporation

HamiltonSundstrand andNPO Nauka

Integrated airmanagementsystem

NPO Hamilton Standard – Nauka, a jointventure between Hamilton Sundstrandand OAO NPO Nauka, was establishedin 1994 in Moscow and specializes indevelopment and production of heatexchangers for commercial aircraft air-conditioning systems. The heatexchangers manufactured by thecompany are operated by Boeing,Airbus, Embraer, Bombardier andTupolev.

August2009

IrkutCorporation

HamiltonSundstrand andECE

Power distributioncompany

ECE is part of the Zodiac Group. August2009

IrkutCorporation

KiddeAerospace &Defense andL’Hotellier andHamiltonSundstrand

Fire detection andsuppression system

Kidde Aerospace and Defense is aHamilton Sundstrand company.

August2009

IrkutCorporation

C&D Zodiac Interiors C&D Zodiac is part of the Zodiac Group. August2009

IrkutCorporation

Intertechnique Fuel system, oxygensystem, nitrogengenerating system

Intertechnique is part of the ZodiacGroup.

August2009

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IrkutCorporation

EatonCorporation

Hydraulic system Eaton Corporation has placed morethan 50% of the contract’s value withRussian enterprises (see below).

August2009

EatonCorporation

PMZ Voshod Hydraulic systemactuators

August2009

EatonCorporation

PKOTeploobmennik

Hydraulic systemcomponents

August2009

EatonCorporation

MIZ Znamya Hydraulic systemcomponents

August2009

EatonCorporation

Tehpribor Hydraulic systemcomponents

August2009

6.7.4 Sukhoi Superjet 100

Contractor Supplier Work package Value Comment Awarded

Sukhoi NovosibirskAircraftProductionAssociation(NAPO)

The companymanufactures about40actuators of theaircraft including thenose section, verticaland horizontal tailsurfaces and theauxiliary power unit.

The company is a member of the Sukhoiholding company. NAPO is making theforward and after sections of theaircraft along with the empennage, withthe rest to be made in Komsomolsk-on-Amur. The first 95-seat aeroplane wascompleted KnAAPO in 2006. The 75-seat version will be assembled inNovosibirsk, with many componentsand substructures to be made byKnAAPO.

Sukhoi Komsomolsk-on-AmurAircraftProductionAssociation(KnAAPO)

Wing and fuselagesections, final assembly

The company is a member of the Sukhoiholding company. A new final assemblyplant has been constructed atKomsomolsk-on-Amur, based on an SU-27 assembly factory. A second deliverycentre is also planned as apart of theagreement with Alenia Aeronautica onaircraft sales and support (see below).The production rate is planned foraround sic Superjet 100s a month. InJune 2006 the Komsomolsk-on-Amurplant finished the first aircraft’s centrewing section assembly. The factory alsomade fuselage sections and wing panelsassembly unit for static tests. Between2008—2010 KnAAPO plans to build 100Superjet 100s. The productionof Superjet 100s is scheduled to makeup 25actuators of all KnAAPO output.

Sukhoi VASO Composite parts

Sukhoi Thales Avionics $120million

Thales is the full integrator and avionicssupplier of the flight deck aboard theSukhoi regional jet programme family.Sukhoi and Thales announced inDecember 2004 the signature of aprotocol to provide the developmentand integration of Thales' full avionicssuite on board the aircraft, developingworking environment, based on asimilar design that equips the AirbusA380. The avionics suite provided byThales, includes the cockpit display,communication, navigation and

June 2005

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surveillance systems.

Sukhoi Goodrich Wheels and brakes Goodrich will be integrating andsupplying the wheels, carbon brakes,brake control system, tire pressureindicating system and braketemperature monitoring systemtechnologies.

January2004

Sukhoi LibherrAerospace

PMZVoscodDesignCentreRussia

Flight control system Liebherr is supplying both the primaryand secondary flight control system, thefirst time the company has been giventhe contract to supply both controlsystems on a single aircraft. Liebherr issupplying the pilot cockpit controls,including the sidestick controllerhardware, in partnership with MPC.

September2003

Sukhoi Liebherr Air conditioning system Liebherr-Aerospace Toulouse isdeveloping the SuperJet 100 airconditioning system alongside that ofthe ARJ21. The system comprises airconditioning, engine bleed air system,cabin pressure control system, anti-icesystem, and high- and low-pressuredistribution systems.

September2003

Sukhoi B/EAerospace

Cabin interior, oxygensystem, interior lights

The company is supplying a turn-keyinterior cabin; B/E is the prime vendorin the design, engineering, andmanufacture of the complete aircraftcabin interior which includes sidewallsand ceilings, baggage bins, passengerservice panels with reading lights andsignage, crew and passenger oxygensystems, passenger and crew seats,closets, galleys, ovens, refrigeration andbeverage makers, lavatories, watersupply and waste systems, cabinmanagement systems and cargocompartment components. Accordingto the company B/E's Flight Structuresunit (FSI) will serve as the integrator forthe RRJ interior, providing overallprogramme management, systemsintegration and certification services forthe project. Other B/E Aerospace-provided products include theemergency oxygen systems forpassengers and crew, the PSUs andlighting systems.

March2004

Sukhoi NPO Saturn

Snecma

Engines The Sukhoi RRJ is powered by twoSaM146 turbofan engines. EachSaM146 engine is rated at 62kN to71kN. The SaM146 engines installed onthe aircraft wing passed the firstsuccessful engine run in February 2008.The two companies created a jointlyowned subsidiary PowerJet to handle allaspects of the programme: design,production, marketing and support.Snecma is responsible or the coreengine, control system (FADEC),transmissions (accessory gearbox,transfer gearbox), overall engineintegration and flight testing. NPOSaturn is responsible for thecomponents in the low pressure sectionand engine installation.

April 2003

Sukhoi Intertechni Fuel systems The aircraft has a fuel capacity of13,135l.

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que

Sukhoi HamiltonSundstrand

Electrical systems

Sukhoi MMPPSalyut

Honeywell

APU The RE220[RJ] for the Superjet 100 is aderivative of Honeywell’s RE220 APUfamily and was one of the first westernregional APUs to receive a typecertificate by the Interstate AviationCommittee Avian Register, the Russianequivalent of the FAA. The RE220[RJ]APU will start up to 37,000 feet andoperate to 41,000 feet. It will deliver upto 110 lbm/min with a simultaneouselectrical load of 40 kVA for mainengine starting and EnvironmentalControl System operation. It will deliver40 kVA to support electrical needs up to41,000 feet, and bleed air for MES orECS up to 25,000 feet.

July 2006

Sukhoi Boeing After-sales support andadvice

An agreement was signed in June 2007between Sukhoi and Boeing to expandBoeing’s participation in the Superjetproject. According to the agreement,said Sukhoi, “Boeing will exploreopportunities to assist Sukhoi in areasincluding, but not limited to: flight andmaintenance crew training, spare partsmanagement and supply,guidance on production of flight andmaintenance manuals that meetinternational standards….Boeing willexpand its participation in theorganization of after-sales support. Itmeans it will assist Sukhoi in thedevelopment of its own infrastructure,will ensure access to infrastructure andmodern technologies of Boeing’s after-sales service, including the training ofpersonnel as well as access to theinfrastructure of the distribution ofspare parts. “ In 2002 Sukhoi selectedBoeing to serve as advisor to theprogramme.

June 2007

Sukhoi CurtissWright

Fire suppressant system

Sukhoi MessierDowty

Landing gear The Toronto division is managing theSuperjet 100 retractable twin-wheeledtricycle-type landing gear programme,handling design of the main landinggear and the landing- gear systems. Thenose gear design is being managed byVélizy. Production takes place inToronto. The contract covers: nose andmain landing gear, cockpit subsystems,emergency extension, steering control,electrical harnesses, door mechanisms,actuators, uplocks, and theextension/retraction and steeringsystems.mBidos delivered the NoseLanding Gear unit in August 2007, andToronto delivered the Main LandingGear in August 2007. The gears werethen transferred to the final assemblyline in Komsomolsk.

November2003

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Sukhoi Parker Hydraulic system

Sukhoi Finmeccanica/Alenia

Marketing In June 2006 Sukhoi Aviation Holdingand Italian Finmeccanica Group, as wellas their subsidiaries Sukhoi Civil AircraftCompany (SCAC) and AleniaAeronautica, signed an Agreement onStrategic Partnership on the RussianRegional Jet (RRJ) Programme – sincerenamed the Superjet 100. Theagreement provided for AleniaAeronautica to acquire 25actuators + 1share of SCAC (subject to governmentapproval) and to participate in financingof not less than 25actuators of theprogramme., Alenia Aeronauticaseconded a team of its experts to SCACto work in certification, procurement,sales, after-sale support and otherbusiness units and will provideadvanced materials and systems. InSeptember 2007 Alenia Aeronautica, aFinmeccanica company, and SukhoiCompany announced in Venice, Italythe setting up of Superjet International,the new joint-venture focused onworldwide after sales support andmarketing and sales on westernmarkets of the Superjet 100 regionalaircraft family.

Sukhoi Ipeco Crew seats

Sukhoi TechnicalAirborneComponents

Control, structural andsystem rods

Sukhoi ECE Landing light lamps,integrated cockpitpanels

ECE also deliver the complete suite ofpanels for the cockpit in addition to thecomputer for the secondary electricalload management.

Sukhoi Aircelle Thrust reversers for theSaM146

Sukhoi SagemDéfenseSécurité

Engine overspeed unit

Sukhoi Hispano-Suiza

Electrical equipment,hydromechanicalequipment,

Sukhoi Technofan Fans

Sukhoi Microturbo Pneumatic startingsystem

Sukhoi Air Cruisers Evacuation systems Air Cruisers supplies evacuationsystems (escape slides and/or sliderafts) to the following aircraft: Boeing737, 767, 777,Airbus A319, A320, A321,Sukhoi SuperJet 100 and the ARJ-21

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Thales CMCElectronics

Flight managementsystem (FMS)

The CMA-9000 will provide the aircraftwith multi-sensor based navigation andenhanced operational capability and isderived from the company's CMA-900FMS/GPS and CMA-3000 helicopterFMS. The single unit CMA-9000 has civilcertified multi-sensor (GPS, INS, DMEand EGI) navigation capabilities. Itconforms to the ARINC-739multifunction control display unitstandard, making it suitable as a displayand control unit for other systems suchas ACARS, ACMS and Satcom.

July 2006

Goodrich EmbVUE Software engineering,verification andvalidation services forthe brake control unit.

March2007

Liebherr MPC Aircraft controls

PowerJet Avio Engine combustionchamber

As well as taking responsibility forcombustion chamber Avio is alsoresponsible for development, designand production of transmission controlaccessories.

PowerJet Hispano-Suiza

Engine control system

PowerJet Aircelle Nacelle and thrustreversers

PowerJet Sofrance Nozzle fuel filter

PowerJet TechspaceAero

Engine lubricationsystems

PowerJet/Hispano-Suiza

Vibro-Meter

Engine vibration sensors

6.7.5 Mil Mi-38

Purchaser Supplier Work Package Value Comment Dateawarded

Mil MoscowHelicopterPlant

MilMoscowHelicopterPlant

Development, design,component and flighttesting

Mil MoscowHelicopterPlant

KazanHelicopters

Manufacturing The company is responsible for themanufacture of the fuselage, rotors andfinal assembly.

Mil MoscowHelicopterPlant

Stupino Titanium main rotorhead and elastomericbearings

Mil MoscowHelicopterPlant

Pratt &WhitneyCanada andPratt &WhitneyRussia

Engines The two companies have signed amemorandum of understanding toproduce the PW127TS engine; JSC"Helicopters of Russia", JSC "Ufa EngineIndustrial Association" (UMPO) and theCentral Institute of Aviation Motors(CIAM), P&WC will be responsible fordeveloping a turboshaft version of itsPW127 engine and having it certified to

May 2008

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108 The growth of aircraft manufacturing in low-wage economies 2005-2009

Transport Canada and Russianstandards. The engines are rated at2,500hp (1,864kW), fitted with FADEC(full authority digital engine control).The PW127TS engines will be sold toHelicopters of Russia in kits. Modules toconvert and adapt the PW127 as aturboshaft, will be built in Russia underthe technical supervision of P&WC'sRussian affiliate, Pratt & Whitney Russiaof St. Petersburg.

Mil MoscowHelicopterPlant

Thales Avionics The flight deck comprises fivemultifunction colour and has beendeveloped by Thales with ZAO Transas.The integrated avionics suite includesfour-channel autopilot, automaticnavigation system, weather andnavigation radar, vehicle monitoringsystem and an autostabilisation system.The helicopter is fitted with fly-by-wirecontrols with manual back-up controls.

6.7.6 Russian Helicopters Sapsan (Mi-34S2)

Purchaser Supplier Work Package Value Comment Dateawarded

RussianHelicopters

Turbomeca Engine The Arrius 2F provides 504 shp take-offpower.

August2009

RussianHelicopters

ReduktorPM

Main and tail gearboxes,transmission shafts

August2009

RussianHelicopters

StupinoMachine-BuildingIndustrialEnterprise

Main and tail rotorheads, swash plate

August2009

RussianHelicopters

ArsenyevAviationCompanyProgress

Hull, main and tail rotorblades and helicopterassembly

August2009

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109 The growth of aircraft manufacturing in low-wage economies 2005-2009

Appendix one – major airframe and engine contract wins, 2005-2009

2005

Airliners

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Airbus IrkutScientificProduction

Irtkutsk,Russia

Tank panels AirbusA318/A319/A319CJ/A320/A321

$200million

Following from a 2004 cooperativeagreement, IRKUT's contract awardedin December 2005 comprises wallpanels for the A320 family auxiliarycentre tank, A330/A340 family wingribs and flap-track roller beams, plusother major components for theA320, A330/A340, and A380 aircraft.In December 2004, IRKUT won Airbuswork packages worth $200 millionover ten years. A320 familycomponents are made at its facility inIrkutsk. In December 2005 IRKUT soldten percent of its shares to EADS.

Dec 2005

Nord Micro Curtiss-Wright

Stratford,Ontario,Canada

Cabinpressurecontrolsystem motorassemblies

AirbusA318,A319,A319CJ/A320/A321

Thecontractrepresents apotentialvalue ofmorethan $10millionthrough2011.

These motor assemblies are part ofthe cabin pressure control systemsfor existing commercial aircraftprogrammes, including the AirbusA320, A330 and A340 series and theBoeing 737. Additionally, the contractcovers the supply of motors forinstallation on the new Boeingaircraft.

Oct 2005

Sagem Barco Brussels,Belgium

Cockpitsystems

AirbusA380

The dealholds apotentialbusinessvolumeof 30millionEurosover thelifetimeof theA380programme.

Barco has won a multi-million eurofollow-on contract from Sagem SA,Paris, France, for the delivery ofonboard maintenance terminals andterminal processing units.

Apr 2005

ATR Thales Paris, France Cockpit ATR 42-600/72-600

Thecontractisexpectedtogeneratearound$400millionover a 10- 12 yearperiod.

Thales is supplying the new glassflight deck, which includes 5 LCDdisplays, the Flight ManagementSystem, a communication andnavigation systems includingGNSS/WAAS capability ready for lowRNP operation, as well as a newautopilot with Cat3A approachcapability.

Oct 2005

Boeing Curtiss-Wright

Shelby, NorthCarolina, USAStratford,Canada, USAIrwindale,California andLong Beach,

Actuators Boeing 737-600,-700,-800,-900;Boeing 767-200/-300/-400ER;Boeing 777

The company has signed a long termagreement with Boeing CommercialAirplanes, giving the companyexclusive rights to manufactureproducts for Boeing productionairplanes including 747 leading edgeslat actuators; 737 and 767 trailing

Nov 2005

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CaliforniaUSA

all types;Boeing 747-8

edge flap actuators; 777 flap positiongearboxes; 767 and 777 cargo dooractuators; 747, 767 and 777 cargohold smoke detectors, and variousflight control and position sensors.

Boeing BAESystems

Los Angeles,California,USA

Actuatorcontrolelectronics,digital flightcontrols

Boeing 777– all types

The company is providing actuatorcontrol electronics (ACE) units forBoeing 777 aircraft through 2012.BAE Systems has supplied thisequipment to Boeing since 1990under a contract that was set toexpire at the end of 2005.

Apr 2005

Boeing Astronautics Corp

Milwaukee,USA

Dual class 3EFBs

Boeing 787 The 787 is the first Boeing aircraftthat will offer dual Class 3 EFBs as astandard system. The companyprovided EFBs to the Boeing 777

May 2005

Boeing ChengduAircraftIndustrial(Group) Co.Ltd

SichuanProvince,China

Compositerudder

Boeing787/Boeing737

A $600 million contract announced inby Boeing to a group of Chinesesuppliers. Chengdu has also beencontracted to supply the Boeing 737forward entry door and the Boeing737 automatic over-wing exit door.

Jun 2005

Boeing CTTSystems

Nykoping,Sweden

Zonal dryingsystem

Boeing 787 Thepotentialtotalvalue(including aftermarket)exceeds$250millionover theexpectedlife of theprogramme

The CTT zonal drying system will bebase- line equipment. Humidifiers willbe offered as an option for flight deckand crew. The equipment controlsbuild-up of condensation

Aug 2005

Boeing DiehlLuftfahrtElektronik(DLE)

Nuremberg,Germany

LED-basedlightingsystems forthe maincabin of the787

Boeing 787 The work package comprises indirectceiling wash lights, sidewall washlights, entry lights, galley lights andaccent lights. The use of these LEDsmeans the interior can change incolour and brightness throughout theflight.

Apr 2005

Boeing DonaldsonCompany

Minneapolis,Minnesota,USA

Airpurificationsystem

Boeing 787 The technology is based on HEPAfiltration, a new gaseous filtrationmethod that removes gaseousirritants and odours from the aircraftcabin, as well as allergens, bacteriaand viruses.

May 2005

Boeing DrägerAerospace

Lübeck,Germany

Passengerservice units

Boeing 787 Up to$200million

The PSUs will house service systemsfor passengers, including emergencyoxygen, personal lighting, ventilationand signs. The company is part ofCobham’s Aerospace Systems Group(ASG)

Aug 2005

Boeing EADSCompositesAtlantic

Lunenberg,Nova Scotia,Canada

Compositediagonalbrace(for thepylon-to-wingattachmentsection)

Boeing 787 Sep 2005

Boeing Fuji HeavyIndustries

Nagoya,Japan

Centre wingbox

Boeing 787 Measuring 17.4 feet long by 19 feetwide, the composite structure is thelower skin of the centre wing box. Fujihas built two plants in Nagoya for the787: one for the composite wing boxand the other for assembly work. TheFuji wing box is assembled and

May 2005

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attached to the main landing gearwell produced by Kawasaki. Oncefinished, a barge takes the joinedstructure to Nagoya's Centrair airportwhere it is loaded onto a Boeing 747cargo aircraft and flown toCharleston, South Carolina.

Boeing Hafei PingfangDistrict,Haerbin,China.

Wing-to-bodyfairing panels

Boeing 787 Part ofthe $600milliondeal (see“Chengdu entryabove).

The company is affiliated to theChengdu Aircraft Industrial Groupbased in Sichuan Province, China.Hafei's capabilities include compositeand sheet metal manufacturing,numerically controlled machining,tooling design and production, andcomplex structure assembly andintegration.

Jun 2005

Boeing Ipeco Southend-on-Sea, Essex,UK

Cockpit Seats Boeing 787 Apr 2005

Boeing Jamco Tokyo, Japan Lavatories Boeing 787 The totalvalue ofthe 787contractsawardedto JamcobyBoeing isestimated to beover $1billionthroughthe life oftheprogramme.

Jamco has a sole contract for galleys,lavatories, flight deck door andbulkhead, and flight deck linings,consoles and stowage.

Nov 2005

Boeing Jamco Tokyo, Japan Flight deckdoor

Boeing 787 May 2005

Boeing Jamco Tokyo, Japan Flight deckbulkhead

Boeing 787 May 2005

Boeing Jamco Tokyo, Japan Flight deckinteriorsincludinglinings,consoles andstowage

Boeing 787 In March 2007 Jamco announced firstdelivery the 787 flight deck liningconsoles at the end of February,2007. Flight deck parts are beingassembled in Wichita before beingtransported by air to Seattle for finalassembly.

May 2005

Boeing Kawasaki Nagoya,Japan

Fixed trailingedge

Boeing 787 May 2005

Boeing Kawasaki Nagoya,Japan

Forwardfuselage (43)

Boeing 787 The forward fuselage section madeby Kawasaki also will be barged to theairport and flown to Charleston on aLarge Cargo Freighter. The Kawasakiplant will have about 100 workers,though that will depend on theproduction rates. Fuji executives saidthey will require only about 150workers at the company's two 787plants

May 2005

Boeing Kawasaki Nagoya,Japan

Main landinggear wheelwell (45)

Boeing 787 May 2005

Boeing KorryElectronics

Seattle,Washington,USA

Flight deckcontrolpanels

Boeing 787 Korry, an Esterline Technologiescompany, is providing the flight-deckcontrol panels which include thepilots' overhead panels and switches.

Jan 2005

Boeing Korean AirLinesAerospaceDivision

Seoul, Korea Wing tips Boeing 787 The raked wing tips areapproximately 17 feet in length andprovide aerodynamic efficiency forlong-haul routes. The company

Oct 2005

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particates as a tier 2 supplier and alsomakes the fixed trailing edge andcentre wing box.

Boeing Michelin Greenville,SouthCarolina, USA

Tyres Boeing 787 Michelin is the second source foraftermarket nose and main tyres forthe aircraft. Michelin will offer acombination of traditional radialconstruction tires and newlightweight Near Zero Growth (NZG)construction tires. NZG constructionoffers increased resistance to cutsand wear, according to the company.The 787 will have 10 tyres; two forthe nose landing gear and eight forthe main landing gear.

Jun2005

Boeing MonogramSystems(Zodiac)

Carson,California,USA

Water andwaste system

Boeing 787 The company is part of the Zodiacgroup of France.

Nov 2005

Boeing PanasonicAvionics

Lake Forest,California,USA. Systemproductionfacilities inOsaka, Japan

In-flightentertainment system

Boeing 787 Panasonic is offering a wirelessversion of its X-Series platform, calledX-Series Wireless.

Nov 2005

Boeing PFW Speyer,Germany;Izmir, Turkey;Farnborough,UK.

Metallictubing/ducts

Boeing 787 This agreement includes the designand manufacture of tubes responsiblefor the fluid supply of the hydraulicsystems. PFW will also design andmanufacture tubes responsible forthe supply of fuel to the engines andthe auxiliary power unit as well as thenitrogen generation system, whichensures an inert atmosphere in thefuel tanks. It will also provide tubesfor the integrated cooling system andthe power electronics cooling system.

Oct 2005

Boeing PPGAerospace

Huntsville,Alabama, USA

Electro-chromicwindowtechnology

Boeing 787 Approximately $50million infirst fiveyears

PPG Aerospace is providingelectrochromic windows which willallow passengers to electronicallyshade their windows, replacing theplastic screens.

Dec 2005

Boeing SaabAerostructures

Linkoping,Sweden

Doors Boeing 787 Approximately$100million

The contract covers the design,development and manufacture oflarge cargo doors, bulk cargo doorsand access doors. Saab will providethree door types, totalling sevendoors per airplane. The doors will bemade of advanced lightweightcarbon-fiber composites.

Oct 2005

Boeing ShenyangAircraft

Shenyang,China

Vertical finleading edgeassembly

Boeing 787 Shenyang Aircraft Corporation, is anAVIC I-affiliated company,

Jun 2005

Cobham TurboGenset

WestDrayton, UK

Fuel pumpmotors

Boeing 787 Up to$20million

Aug 2005

VoughtAircraftIndustries

EADSMilitaryAircraft

Munich,Germany

Aft pressurebulkhead

Boeing 787 The company is using the vacuum-assisted resin transfer mold (VaRTM)process to make a one-piece dome.

Oct 2005

Honeywell DiehlAvionikSysteme

Nuremberg,Germany

High liftcontrolhardware/software

Boeing 787 Jun 2005

Boeing/Smiths (nowGeneralElectric)

CraneAerospace&Electronics

Lynwood,Washington,USA

Brake controlandmonitoringsystem forthe landinggear

Boeing 787 The brake control and monitoringsystem is being provided to SmithsAerospace (now General Electric),incorporating “integrated brakingservices “ (RIBS), a system whichintegrates antiskid control, braketemperature, wheel speed, and tyrepressure indication functions in an

Aug 2005

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electronic control unit located at eachaxle.

Honeywell CraneAerospace&Electronics

Lynwood,Washington,USA

Powerconditioningmodules andbatteries forcommon coreflight controlsystem

Boeing 787 $40million

The flight control electronics systemincludes four cabinets, each of whichincludes a power control module anda battery. The developmental stage ofthe contract covered work from 2005to 2008 with initial production unitsbeing delivered in 2008.

Apr 2005

HamiltonSundstrand

FR-HiTEMP- nowEatonAerospace

SouthMolton,Devon, UKFareham,Hampshire,UKWimbourne,Dorset UK

Distributionsystem withinthe nitrogengeneratingsystem (NGS)

Boeing 787 Jan 2005

VoughtAircraftIndustries

Korean AirLines (KAL)AerospaceDivision

Busan, SouthKorea

Complete aftbodystructuralassembly,nose wheelassemblies

Boeing 787 Oct 2005

HamiltonSundstrand

PallCorporation

East Hills,New York,USA

Air filters Boeing 787 The exclusive contract is to providecabin air purification filters as part ofthe overallairmanagement/environmentalcontrol system.

Mar2005

VoughtAircraftIndustries

ASCOAerospaceCanada

Delta, BritishColumbia,Canada

Section 48Upper findeckbulheads

Boeing 787 Oct 2005

HoneywellAerospace

Astro-Med WestWarwick,Rhode Island,USA

Cockpitprinters

Boeing 787 Astro-Med Inc (US) signed a contractwith Honeywell Aerospace to supplya version of its ToughWriter 4 printerfor the aircraft cockpit.

Aug 2005

VoughtAircraftIndustries

BoeingCanadaTechnology

Winnepeg,Canada

Shear tiesandcompletedframeassemblies

Boeing 787 Boeing Winnipeg is a Tier I partner tothe 787 programme responsible forthe wing to body fairing, main landinggear doors and the vertical fin fairingfor the life cycle of the programme.Boeing Winnipeg will also supplyengine strut forward and aft pylonsfor the 787 as a tier two partner –and mid-fuselage sectioncomponents to Global Aeronautica

Oct 2005

VoughtIndustries

C & DAerospace

Marysville,Washington,USA

Compositeframes

Boeing 787 C&D Aerospace, part of the ZodiacGroup, will produce structuralcomposite frames for Vought using aresin film infusion process.

Oct 2005

HamiltonSundstrand

FR-HiTEMPi

FR Hi Temp,part of theEaton groupof companiesis located atSouthMolton,Devon;Fareham,Hampshire;Wimbourne,Dorset UK

Distributionsystem withinthe nitrogengeneratingsystem (NGS)

Boeing 787 Jan 2005

GlobalAeronautica

Fuji HeavyIndustries

Nagoya,Japan

Mid-fuselagesectioncomponents

Boeing 787 Feb 2005

GeneralElectric

SaabAvitronics

JonkopingSweden

Electricalmotor/ motorcontrollerunits

Boeing 787 The contract with Smiths (nowGeneral Electric) comprisesdevelopment, production andsupport of an electric motor

Oct 2005

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controller unit and an electric motorunit providing an electrical backup foractuation of the high-lift actuationSystem for both the leading edgeslats and the trailing edge flaps.

PFW (nowIntellifast)

Garner CADTechnic

MunichGermany

Tubingelements

Boeing 787 Garner CAD Technic (GCT) to assistwith the design of the tubingelements

Oct 2005

KorryElectronics

IDDAerospace

Redmond,Washington,USA

Dimmablelight plateswith LEDback-lightingfor flight deckcontrol panel

Boeing 787 IDD will design and manufacturedimmable light-plates with LEDbacklighting for the pilots’ mainoverhead panel and other aircraftcontrol functions, totalling twenty-four panels per aircraft.

Jan 2005

VoughtAircraftIndustries

IsraelAircraftIndustries(IAI)

Tel Aviv,Israel

Section 48pivotbulkheads,main deckand section47passenger/cargo floor gridassembliesand doorsurroundstructuralassemblies

Boeing 787 Valued atapproximately$500million

Israel Aircraft Industries (IAI)'sCommercial Aircraft Group has a sole-source contract which runs for thelifetime of the 787 programme.

Oct 2005

PPGAerospace

GentexCorporation

Zeeland,Michigan,USA

Automaticwindowdimmingsystems

Boeing 787 Gentex is contributing its patentedelectro-chromic technology, as wellas expertise in electronics andmicroelectronics.

Dec 2005

HamiltonSundstrand

Eaton Cleveland,Ohio, USA

Ducting Boeing 787 Anestimate$82millionover thelife of theprogramme

The contract is to design, develop andsupply ducting and associatedhardware for use on both thenitrogen generating system and thecabin air conditioning and thermalcontrol system.

Oct 2005

RockwellCollins

TecomIndustries

ThousandsOaks,California,USA

SATCOMAntenna

Boeing 787 A long term purchase agreement forthe HGA-2100 High Gain Antenna tomeet the Boeing 787 SATCOM HighGain Antenna requirement. The HGA-2100 supports both voice safetyservices and cabin connectivityincluding internet access and sendingand receiving of e-mails and faxes.

Sept 2005

Sukhoi Thales Paris, France Avionics SukhoiSuperjet100

$120million

Thales is the full integrator andavionics supplier of the flight deckaboard the Sukhoi regional jetprogramme family. surveillancesystems.

Jun2005

Value of all 2005 airliner system, structures and component contracts, in the public domain $3,602

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $800

million

PMI Media estimates of total value of 2005 airliner system, structures and component contracts $6,288

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $1,047

million

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Military transports

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contract value Contract details Contractdate

Airbus Irkut ScientificProduction

Irtkutsk, Russia Structuresandcomponents

AirbusA330MRTT

Following from a 2004cooperative agreement,IRKUT's contract awarded inDecember 2005 comprisesA330/A340 family wing ribsand flap-track roller beams,plus other majorcomponents for the A320,A330/A340, and A380aircraft.

Dec 2005

AirbusMilitarySociedadLimitada(AMSL)

SaabAerostructures

Jönköping,Sweden

Crew accessdoors, high-lift controldevices

AirbusA400M

Saab is building the high liftcontrol and monitoringsystem for the A400M. Thefirst production delivery willtake place 2008. InNovember 2004 Saab wasawarded a contract for crewentrance doors for A400Mmaking Saab a risk-sharingpartner in the A400Mprogramme.

Mar 2005

AirbusMilitarySociedadLimitada(AMSL)

EADS DefenceElectronics

Ulm, Germany Missilewarningsystem,digital mapgeneratorsystem(DMGS),missionmanagementcomputer

AirbusA400M

The company is supplying amissile warning systemMIRAS based on infraredtechnology. The companyhas been awarded thecontract to deliver 85 missilewarning systems from 2010.The new product will bedeveloped jointly by EADSDefence Electronics andThales. MIRAS relies oninfrared super-latticedetector technologysuccessfully developed byAIM Infrarot-Module GmbH,Heilbronn/Germany. Somework packages have beensubcontracted to Aselsan(Turkey). The DMGS will beinstalled on all firm orderA400Ms. Previously, EADSDefence Electronics wasselected to provide theMission ManagementComputer (MMC) andDefensive Aid Computer(DAC).

Sep2005

AirbusMilitarySociedadLimitada(AMSL)

B/E Aerospace Wellington,Florida, USA

Integratedpassengerand crewoxygensystem

AirbusA400M

Approximately$45 million

The oxygen system includescrew and passenger oxygenstorage, distribution anddispensing, as well asportable oxygen for medicaland emergency use.

Sep 2005

BoeingMilitaryAircraft

Curtiss-Wright Shelby, NorthCarolina, USA

Stratford,

Actuators BoeingKC-767

The company has signed along term agreement withBoeing CommercialAirplanes, giving thecompany exclusive rights to

Nov 2005

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Canada, USA

Irwindale,California andLong Beach,California USA

manufacture products forBoeing production airplanesincluding 747 leading edgeslat actuators; 737 and 767trailing edge flap actuators;777 flap position gearboxes;767 and 777 cargo dooractuators; 747, 767 and 777cargo hold smoke detectors,and various flight control andposition sensors.

EADS-CASA TEAC Montebello,California, USA

Digitalmission datarecorders

CN-235 TEAC AerospaceTechnologies has supplieddigital mission datarecorders (MDR) for the CN-235 300M aircraft that havebeen selected by the USCoast Guard for theIntegrated DeepwaterSystem (IDS) programme.

Jul 2005

LockheedMartin

ParkerAerospace

Irvine,California, USA,plus variousParker divisionslocated inMichigan, NewYork, Ohio, andTexas, USA

Flight control,hydraulic,fluidmanagement,and controlsystemcomponents

C-130J The company has beenselected as strategic supplierto Lockheed MartinAeronautics Co.'s F/A-22Raptor, F-35 Joint StrikeFighter, F-16 Fighting Falcon,and C-130J Herculesprogrammes.

Feb 2005

Value of all 2005 military transport system, structures and component contracts, in the public domain $45

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2005 military transport system, structures and component

contracts

$560

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Military fast jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

BAESystems

BAE SystemsPlatformSolutions

Brough, UK Missioncomputer andautopilot

BAESystemsHawk127/128LIFT

The company is providingthe mission computer andautopilot system for 20Hawk 128 Advanced JetTrainers ordered by theUnited Kingdoms Ministry ofDefence. The missioncomputer is an open-architecture system indevelopment at PlatformSolutions facility inEdinburgh, UK. Thiscomputer provides thegraphics for all six cockpitdisplay panels and a head-updisplay. The autopilotsystem will enable the MoDto fly the Hawk in controlledcivil airspace.The systemconsists of a computer, rate

Mar 2005

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gyro unit, tailplane actuator,and aileron actuators. Thegyros will be provided by BEISystron Donner, and theactuators by SmithsAerospace ( now part ofGeneral Electric). PlatformSolutions is also providingthe Inertial Navigation GlobalPositioning System (IN-GPS)system.

BAESystems

Goodrich Charlotte,NorthCarolina, USA

Air datasystem

BAESystemsHawk127/128LIFT

The company is providing itsSmartProbe(TM) air datasystem for the Hawk Mk 128.The Goodrich SmartProbesystem will provide air datainformation required by theavionics system to meetReduced Vertical SeparationMinimums (RVSM) flightrequirements.

Feb 2005

Eurofighterconsortium

Rohde &Schwarz/ Selex/Indra

Munich,Germany

Rome, Italy

Madrid, Spain

VHF/UHFtransceiver

EurofighterEF 2000Typhoon

The latest version of theaircraft’s VHF/UHF radioequipment conforms toSATURN (Second Generationof Anti-Jam Tactical UHFRadio for NATO),standardized throughoutNATO.

Jun 2005

LockheedMartin

ParkerAerospace

VariousParkerdivisions areinvolved in F-16 work -California,Michigan,New York,Ohio, andTexas.

Flight control,hydraulic,fluidmanagementand controlsystemcomponents,fuel pumps

LockheedMartin F-16

Feb 2005

LockheedMartin

ParkerAerospace

Irvine,California,USA, plusvariousParkerdivisionslocated inMichigan,New York,Ohio, andTexas, USA

Flight control,hydraulic,fluidmanagement,and controlsystemcomponents

LockheedMartin F-22

The company has beenselected as strategic supplierto Lockheed MartinAeronautics Co.'s F/A-22Raptor, F-35 Joint StrikeFighter, F-16 Fighting Falcon,and C-130J Herculesprogrammes.

Feb 2005

LockheedMartin/NorthropGrumman/JSFprogrammeoffice

L-3 Displaysystems

Alpharetta,Georgia,

USA

Panoramiccockpitdisplay (PCD)sub-system

LockheedMartin F-35Joint StrikeFighter

The potentialcontractvalue overthe life of theprogramme isover $200million.

The contract is for theSystem Development andDemonstration (SDD) phase.The display system includesthe 20in x 8in active matrixliquid crystal displays anddisplay managementcomputer

Nov 2005

LockheedMartin/NorthropGrumman/JSF

ParkerAerospace

See below Flight control,hydraulic,fluidmanagement,and control

LockheedMartin F-35Joint StrikeFighter

The company has beenselected as strategic supplierto Lockheed MartinAeronautics Co.'s F/A-22Raptor, F-35 Joint Strike

Feb 2005

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programmeoffice

systemcomponents

Fighter, F-16 Fighting Falcon,and C-130J Herculesprogrammes.

LockheedMartin

Curtiss-Wright Gastonia andShelby, NorthCarolina, USA

Ordnancehoist system(OHS) andordnancequick latchsystem(OQLS)

LockheedMartin F-35Joint StrikeFighter

An initialvalue of $2.2million forthe SystemDevelopmentandDemonstration (SDD) phaseand apotentialvalue of $120million forthe totalprogrammerequirements.

The equipment to beprovided is a newrequirement designated asAlternate Mission Equipment(AME) for ordnance loading,carrying, and unloading onall three aircraft variants(CTOL, STOVL, and CV). SDDhardware deliveries areanticipated to occur from2006 through 2010.

.

Nov 2005

Pratt &Whitney

Alp Aviation Ankara,

Turkey

Fan rear hub LockheedMartin F-35Joint StrikeFighter

The contract follows on fromthe signing of the June 2005industrial partnershipbetween Pratt & Whitneyand Alp Aviation.

Sep 2005

Pratt &Whitney

KaleKalip Istanbul,Turkey

F135 highcompressorshrouds sets

LockheedMartin F-35Joint StrikeFighter

Sep 2005

GeneralElectric

GETransportationCanada

Bromont,Quebec,

Canada

Inlet guidevanes (IGV)and stage onehigh pressurecompressor(HPC)variablestator vanes(VSVs) for theF136

LockheedMartin F-35Joint StrikeFighter

$450,000 Mar 2005

GeneralElectric/Rolls Royce

BAE Systems,Power SystemsDivision

Johnson City,New York,USA

Engine fullauthoritydigitalelectroniccontrol(FADEC)systems

LockheedMartin F-35Joint StrikeFighter

BAE Systems was selected bythe GE Rolls-Royce FighterEngine Team (FET) todevelop a FADEC for theF136 engine, which uses twoFADECs per engine. The FETplans to deliver the firstproduction F136 engine in2012. Orders for the BAESystems FADEC could total asmany as 5,000 units through2030.

Sep 2005

Rolls-Royce Dutch Aero Eindhoven,theNetherlands

F136 blisks LockheedMartin F-35Joint StrikeFighter

DutchAero is an AVIO andPhilips joint venturecompany based inEindhoven. The1.1mdiameter bladed disk or“blisk” is part of the firststage compressor and ismachined from a large solidtitanium forging.

Jul 2005

Value of all 2005 military fast jet system, structures and component contracts, in the public domain $321

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

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PMI Media estimates of total value of 2005 fast jet system, structures and component contracts $859

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Rotorcraft

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

LockheedMartin

PalomarProducts

Rancho SantaMargarita,California,USA

Intercommunicationssystem

US101/VH-71

$6.8million

Oct 2005

BellHelicopterTextron

Goodrich Fueland UtilitySystems

Rome, NewYork, USA

Cross winginterconnectdrive system,enginenacelleflexiblecouplings

Bell BoeingV22

Thecontract isexpected togenerateapproximately$40millioninoriginalequipmentandaftermarketsales.

Goodrich's Fuel and Utility Systemssupplies the cross-wing and enginenacelle flexible couplings whichtransmit power between the two V-22 engine gearboxes. With thecross wing interconnect drivesystem contract, the Rome facilitywill also be providing thecomposite drive shaft assemblies,seal assemblies, bearing hangarsand associated hardware.The drivesystem provides accessory powerto the V-22 in normal operationand allows safe, single engineoperation to drive the

Sep 2005

BellHelicopterTextron

Chelton FlightSystems/S-TEC

MineralWells, Texas,USA

Integrated“glasscockpit”

Bell 407 Contractvaluedatmorethan$100million

Chelton Flight Systems has beencontracted as the system integratorand supplier of the EFIS. Chelton'sNorthern Airborne Technologyprovides dual 8.33 Mhz digitalcoms, a Mode-S transponder, andaudio control. Comant, anotherChelton company, supplies theantennas, and a 406 Mhz ELT withGPS interface from Chelton's Artexdivision will be available as anoption. The EFIS consists of large-format portrait or landscapedisplay and features Chelton'sforward-looking real-time 3-Dterrain and highway-in-the-skynavigation, Class-B helicopterTAWS, dual embedded FMS,integrated GPS-WAAS, digital flightrecording, a solid-state air datacomputer, and a strap-down AHRS.

Sep 2005

BellHelicopterTextron

Altair Avionics Anaheim,California,USA

Aircraft andenginemonitoringsystem

Bell 412 The company’s SmartCycle +system has been selected as part ofthe aircraft’s HUMS package.

Feb 2005

MDHelicopters

KamanAerospace

Bloomfield,Connecticut,

Rotor blades,pitch casesand flex

MD900/902

Kaman resumed production ofrotorblades for the Explorer inNovember 2005. According to a

Nov 2005

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120 The growth of aircraft manufacturing in low-wage economies 2005-2009

ISA beams Kaman statement at the time:“Under the terms of theagreement, the company todayreceived a payment in the amountof $4.0 million from MDHI and isscheduled to receive additionalpayments totaling approximately$1.0 million by the end of the firstquarter of 2006. These paymentsare all related to past due amountsfor accounts receivable andinventory previously written off aspart of a $20.1 million non-cashcharge recorded during the thirdquarter of 2004 to eliminate thecompany's investment in itsprevious MDHI programmes. Thoseprogrammes included the bladework now being resumed, andproduction of fuselages for the MD-500 and MD-600 series ofhelicopters, which the companydoes not expect to resume.”

Sikorsky Thales Paris, France Displays Sikorsky S-76D

The S-76D cockpit features large-format displays that areconsolidated in a console forimproved visibility and situationalawareness.

Dec 2005

Value of all 2005 rotorcraft system, structures and component contracts, in the public domain $150

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2005 rotorcraft system, structures and component contracts $176

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Business jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Cessna L-3 Avionics Grand Rapids,Michigan,USA

GH-3000 ESIS Cessna CJ1and CJ2

The system provides completesituational picture as a standbyto the Pro Line 21 system

Jun 2005

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121 The growth of aircraft manufacturing in low-wage economies 2005-2009

Cessna Rockwell Collins Cedar Rapids,Iowa, USA

IntegratedflightInformationSystemretrofitprogramme

Cessna CJ1and CJ2

The system enables operators toreceive XM WX Satellite weatherimages and services for viewingdirectly on the cockpitdisplay. The Collins FMS-3000flight management system is fullyintegrated with an FAA approvedelectronic chart system whichprovides take-off and landingperformance data. The V speedlimit data are automaticallycalculated for the numbers ofpassengers entered and areshown on the primary flightdisplay. The two primary flightdisplays are 8in x 10in activematrix colour liquid crystaldisplays.

Nov 2005

Diamond Garmin Olathe,Kansas, USA

Avionics Diamond D-Jet

The Garmin G1000 integratedavionics suite features dual 12inch primary flight displays (12"PFD) and a centrally mounted 15inch multifunction display(MFD). The Garmin G1000integrates all primary flight,navigation, communication,terrain, traffic, weather, engineinstrumentation, and crew-alerting system data andpresents the compositeinformation on three high-definition displays.

Jun 2005

Embraer Eaton Irvine,California,USA

Thrustcontrol,landing gearcontrol lever,and landinggearhydrauliccomponents.

Embraer100/300

The valueof theaward isestimated at $20millionover the10-yearlife of theprogramme.

See above Oct 2005

Embraer Eaton Irvine,California,USA

Thrustcontrol,landing gearcontrol lever,and landinggearhydrauliccomponentsand flapactuators

Embraer100/300

Therevenuesfromtheseaerospacecontractawardsareestimated at $70millionover thelife of theprogramme.

See above Oct 2005

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Embraer Garmin Olathe,Kansas City,USA

Integratedavionics suite

Embraer100/300

The flight deck suite called“ProdigyTM” and features threeinterchangeable 12-inch displays– two primary flight displays(PFD) and one multi-functiondisplay (MFD). The systemintegrates all primary flight,navigation, communication,terrain, traffic, weather, engineinstrumentation, and crew-alerting system data andpresents the compositeinformation on three high-definition displays

Nov 2005

Embraer Pratt Pratt &WhitneyCanada

Longueuil,Quebec,Canada

Engines Embraer100/300

PW617F turbofan engines forPhenom 100; PW535E turbofanengines for Phenom 300

May 2005

Gulfstream/IAI

Nordam Tulsa,Oklahoma,USA

Interiorcomponents

GulfstreamG150/200

Under the terms of the contract,Notfsm will provide Gulfstreamwith the configured interior liner,which will include net trimmedheadliners, side walls, ledges anddado panels ready for upholstery.Nordam will also providecomputer numerical controlled(CNC)-machined flat andcontoured composite panels,which Gulfstream will use tofabricate cabinetry for the G150at its Dallas completion facility

Nov 2005

Honeywell Nordam Tulsa,Oklahoma,USA

Thrustreversersystem

GulfstreamG150/200

Honeywell is the IntegratedPower Plant System (IPPS)provider to Gulfstream for theaircraft.

Nov 2005

StorkFokker

ShenyangAircraftCorporation

Shenyang,China

Variouscomponents

GulfstreamG450/G500/G550

Less thanEuro 1million

Shenyang Aircraft Corporation(part of AVIC-I) and StorkAerospace have a contract forthe machining of components forthe Gulfstream G450, the G500and the G550.The order relates to componentsfor the aircraft which wereformerly produced elsewhere.For the implementation of thecontract SAC and Stork .

Nov 2005

HawkerBeechcraftCorporation (formerlyRaytheonAircraft)

ShinMaywa La Palma,California,USA

Kobe, Japan

Procurementservices

HawkerBeechcraftPremier 1

The company has beencontracted to undertakeprocurement services for theRaytheon Premier 1 rudder,elevator and spoiler.

2005

HawkerBeechcraftCorporation (formerlyRaytheonAircraft)

Kollsman Merrimack,NewHampshire,USA

Cabinpressurisation controlsystem

HawkerBeechcraft400XP

The company, an Elbit Systems ofAmerica Company, was awardeda contract from the formerRaytheon Aircraft Company toprovide the cabin pressurizationcontrol system for the Hawkerand Beechcraft King Air series ofaircraft. Kollsman's autoschedulepressurization system, KAPS II,has been incorporated into newproduction aircraft models,including the Hawker 800XP,Hawker 400XP, Beechcraft KingAir Models 350,8200 and C90.

Jun 2005

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HawkerBeechcraftCorporation (formerlyRaytheonAircraft)

Kollsman Merrimack,NewHampshire,USA

Cabinpressurisation controlsystem

HawkerBeechcraft850/900XP

The company, an Elbit Systems ofAmerica Company, was awardeda contract from the formerRaytheon Aircraft Company toprovide the cabin pressurizationcontrol system for the Hawkerand Beechcraft King Air series ofaircraft. Kollsman's autoschedulepressurization system, KAPS II,has been incorporated into newproduction aircraft models,including the Hawker 800XP,Hawker 400XP, Beechcraft KingAir Models 350,8200 and C90.

Jun 2005

Value of all 2005 business jet system, structures and component contracts, in the public domain $90.5

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2005 business jet system, structures and component contracts $213.5

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

2006

Airliners

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Airbus Patria Helsinki,Finland

Main landinggear fairings

AirbusA318/A319/A319CJ/A320/A321

The multi-million Euro contact willprovide approximately 150 man-yearsof employment .

Mar 2006

Hispano-Suiza

Vibro-Meter

Basingstoke,UK

Enginerotationalspeed sensors

AirbusA318,A319,A319CJ,A320,A321

Around$20million

This is an exclusive 10-year contractto supply Hispano-Suiza with aircraftengine rotational speed sensors. Thesensors will be used on the CFMInternational CFM56 and GeneralElectric GE90 aircraft engine familiesas well as a range of other engineapplications. Vibro-Meter UK willundertake the manufacturing workrelated to this contract at its newfacility in Basingstoke, Hampshire UKand the Meggitt Xiamen Sensors &Controls Ltd facility in Xiamen, China.Some military products in thepackage will be manufactured at theVibro-Meter France facility inAngoulême.

Jun 2006

Airbus UK Saab Linkoping,Sweden

Ailerons AirbusA318,A319,A319CJ,

The company has delivered morethan 1000 units since 2000, as thelong-standing single source supplierof these ailerons. Saab Aerostructures

Jun 2006

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A320,A321 has developed new CFRP monolithictechnologies which will reduce thenumber of parts on the ailerons byover half, as part of the 2006 deal.

Boeing Baoji Group ShaanxiProvince,China

See comment All models $147millionplus

The company is supplying about4,300 tonnes of titanium products toBoeing between 2007 and 2009.

Jun 2006

Airbus CraneAerospaceandElectronics

Lynnwood,Washington,USA

Door and

slide control

system

AirbusA330/A340

The DSCS monitors the position of theaircraft’s passenger and cargo doorsto ensure that they are safely closed,locked and latched

Feb 2006

Goodrich FACC FACC willmanufacturethecomponentsat the newFacility IV tobe built inReichersberg(UpperAustria).Following theplacement ofthe order, theoriginalconstructionplans wereenlarged asto productionarea andcapacity,which willensure apunctual andunhamperedstart ofproduction inthe year2009. FACCwill investabout € 56million in thenew 21,000m2productionsite.

Nacelle

structures

AirbusA350 XWB

Thiscontractprovidesfor thesupply ofcomponents fortheentirelifetimeof theaircraftand willgenerateaturnoverofaround$300millionfor FACC

The contract calls for FACC to developand manufacture of thrust-reversercomponents and the moveableblocker doors. These components arealready being developed by FACC forthe Boeing 787 and will be in seriesproduction starting September 2007.The first components will bedelivered in the second quarter of2007. These so-called enginedevelopment units will be subjectedto numerous tests on engine testbenches at GE before the first flighttest units will be ready for take-offtwelve months later.

Feb 2006

Boeing Goodrich Troy, Ohio,USA

Wheels and

brakes

Boeing 737-600,-700,-800,-900

Jan 2006

Boeing KiddeTechnologies

Wilson, NorthCarolina

Smoke

detectors

Boeing 737-600,-700,-800,-900

Shipments of the lavatory and crewrest compartment smoke detectorsbegan in 2007.

Jul 2006

Hispano-Suiza

Vibro-Meter

Basingstoke,UK

Engine

rotational

speed sensors

Boeing 737-600,-700,-800,-900

Around$20million

This is an exclusive 10-year contractto supply Hispano-Suiza with aircraftengine rotational speed sensors. Thesensors will be used on the CFMInternational CFM56 and GeneralElectric GE90 aircraft engine familiesas well as a range of other engineapplications. Vibro-Meter UK willundertake the manufacturing workrelated to this contract at its newfacility in Basingstoke, Hampshire UK

Jun 2006

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125 The growth of aircraft manufacturing in low-wage economies 2005-2009

and the Meggitt Xiamen Sensors &Controls Ltd facility in Xiamen, China.Some military products in thepackage will be manufactured at theVibro-Meter France facility inAngoulême.

Boeing Shimadzu Tokyo, Japan Actuators Boeing 737-600,-700,-800,-900

Shimadzu is designing andmanufacturing major controlcomponents for trailing edge flapdrive system. Through thedevelopment experience gained fromthis programme, Shimadzu hopesthat it will lead them to take a bigstep forward in this field. In 1976,Shimadzu started manufacturingcomponents for Boeing 737s.Thereafter, the business expanded toinclude gearboxes, pneumatic systemregulators, and electro-mechanicalactuators for doors, wings, etc. onBoeing 747, 757, 767, and 777families.

Dec 2006

Boeing KiddeTechnologies

Wilson, NorthCarolina,USA

Smoke

detectors

Boeing 737-600,-700,-800,-900

Shipments of the lavatory and crewrest compartment smoke detectorsbegan in 2007.

Jul 2006

Boeing GeneralElectric

Peebles,Ohio, USA

Engines Boeing 747-8

In March 2008 the GEnx-2B enginedemonstrated 70,950 lbs. of takeoffthrust during ground testing. Enginecertification is anticipated in first halfof 2009 with entry into service in late2009. The engine features both afront fan case and fan blades made ofcarbon fiber composites.The GEnx-2Bengine is optimized for the Boeing747-8 aircraft, but shares the enginecore and 80 percent of the linereplaceable units (LRUs) as the GEnx-1B that powers the Boeing 787. IHI ofJapan, TechSpace Aero of Belgium,Avio SpA. of Italy, Volvo Aero ofSweden and Samsung Techwin ofKorea are revenue-sharingparticipants in the GEnx programme.The external team includes MiddleRiver Aircraft Systems for the thrustreverser system, and SpiritAeroSystems, Inc., for the nacelle andstrut. The internal Boeing supplierteam includes Boeing Winnipeg forthe aft pylon fairing, Boeing Portlandfor the engine mounts, and BoeingPropulsion Systems Division for theengine build-up and strut build-up.

Jan 2006

Boeing MiddleRiverAircraftSystems

ChesapeakeBay,Maryland,USA

Thrust

reverser

Boeing 747-8

Middle River Aircraft Systems (MRAS)will develop, certify and produce thethrust-reverser system for the 747-8.The company will become a newdirect supplier to Boeing, supplyingthe thrust-reverser system directly toBoeing rather than through enginemanufacturer GE. MRAS will developan all-composite thrust reverser forthe 747-8.

Jan 2006

Boeing SpiritAeroSystems

Wichita,Kansas, USA

Nacelle and

structures

Boeing 747-8

Spirit AeroSystems, Inc has designand build responsibilities for theengine struts and nacelles for the747-8. Work includes the upperfairing, fan cowl support beam andstrut box for the inboard and

Jan 2006

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126 The growth of aircraft manufacturing in low-wage economies 2005-2009

outboard struts. Spirit's work packagefor the nacelles includes the inletassembly, which will incorporate aseamless, one-piece compositeacoustic barrel for a 105-in. diameterfan, composite fan cowl doors, theprimary exhaust with sound-dampening chevrons, and plug (orcone).

Boeing Shimadzu Tokyo, Japan Trailing edge

flap drive

system

components

Boeing 747-8

Shimadzu is designing andmanufacturing major controlcomponents for trailing edge flapdrive system. Through thedevelopment experience gained fromthis programme, Shimadzu hopesthat it will lead them to take a bigstep forward in this field. In 1976,Shimadzu started manufacturingcomponents for Boeing 737s.Thereafter, the business expanded toinclude gearboxes, pneumatic systemregulators, and electro-mechanicalactuators for doors, wings, etc. onBoeing 747, 757, 767, and 777families.

Dec 2006

Boeing Technofan Toulouse,France

Fans Boeing 747-8

Boeing Goodrich Charlotte,NorthCarolina, USA

Wheels and

brakes

Boeing 747-8

Apr 2006

Boeing KiddeTechnologies

Wilson, NorthCarolina

Smoke

detectors

Boeing 747-8

Shipments of the lavatory and crewrest compartment smoke detectorsbegan in 2007.

Jul 2006

Boeing KiddeTechnologies

Wilson, NorthCarolina

Smoke

detectors

Boeing 767-200/-300/-400ER

Shipments of the lavatory and crewrest compartment smoke detectorsbegan in 2007.

Jul 2006

Boeing Shimadzu Tokyo, Japan Actuators Boeing 767-200/-300/-400ER

Shimadzu is designing andmanufacturing major controlcomponents for trailing edge flapdrive system. Through thedevelopment experience gained fromthis programme, Shimadzu hopesthat it will lead them to take a bigstep forward in this field. In 1976,Shimadzu started manufacturingcomponents for Boeing 737s.Thereafter, the business expanded toinclude gearboxes, pneumatic systemregulators, and electro-mechanicalactuators for doors, wings, etc. onBoeing 747, 757, 767, and 777families.

Dec 2006

Boeing Shimadzu Tokyo, Japan Actuators Boeing 777– all types

Shimadzu is designing andmanufacturing major controlcomponents for trailing edge flapdrive system. Through thedevelopment experience gained fromthis programme, Shimadzu hopesthat it will lead them to take a bigstep forward in this field. In 1976,Shimadzu started manufacturingcomponents for Boeing 737s.Thereafter, the business expanded toinclude gearboxes, pneumatic systemregulators, and electro-mechanical

Dec 2006

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127 The growth of aircraft manufacturing in low-wage economies 2005-2009

actuators for doors, wings, etc. onBoeing 747, 757, 767, and 777families.

Boeing AlcanRolledProducts(Ravenswood)

Ravenswod,West Virginia,USA

Aluminiumproducts

Boeing 787 Alcan Rolled Products signed a multi-year agreement with Boeing to supplyadvanced lightweight aluminiumproducts

Jan 2006

Boeing AlcanRolledProducts(Ravenswood)

Ravenswod,

West Virginia,USA

Aluminiumproducts

Boeing 787 Alcan Rolled Products signed a multi-year agreement with Boeing to supplyadvanced lightweight aluminiumproducts

Jan 2006

Boeing DiethelmKellerAviation

Singapore Rotable foodserviceequipment(carts/trolleys)

Boeing 787 $50millionplus overlength ofprogramme

The company won the contract forthe sole supply of galley inserts,comprising a range of rotable foodservice equipment, duty-free andsales carts, folding trolleys and wastecarts

Mar 2006

Boeing EatonAerospace

Irvine,California,USA

Quick-disconnectcouplingproducts andhoseproducts

Boeing 787 $88million-plus

The Aeroquip® brand quick-disconnect coupling and hosessupport the Integrated CoolingSystem (ICS) and Power EquipmentCooling System (PECS). These systemsprovide efficient liquid cooledthermal management across an arrayof electrical systems and instrumentswithin the platform. The company’sUK subsidiary – Eaton Aerospace UK –is designing, developing andsupplying the fuel sub-system pumpsand valves along with the distributionsystem within the nitrogengenerating system.

Nov 2006

Boeing TriumphCompositeSystems

Spokane,Washington,USA

Floor panelsystem

Boeing 787 $49million

Oct 2006

Boeing GKNAerospace

St Louis,Missouri USA

Slat skinwing-to-bodyfittings/wing-to-nacellefittings

Boeing 787 The long term agreement is for thesupply of 13 complex titanium fittingsfor the aircraft, comprising structuralwing-to-body and wing-to-nacellefittings. They are being manufacturedin 5553 advanced grade titanium.GKN Aerospace rough machines andfinishes the titanium forgingssupplied by VSMPO-Avisma of Russiaat its St Louis, Missouri facility. GKNAerospace is delivering directly toBoeing's partner companies on the787 programme, MHI and FHI.

Dec 2006

Boeing GoodrichAircraftInteriorProducts

ColoradoSprings,Colorado,USA.

Cabinattendantseating

Boeing 787 The contract calls for 16g-certified,floor-mounted, standard cabinattendant seats as well as cabinattendant seats.

Mar 2006

Boeing GoodrichLightingSystems

Lippstadt,Germany andTampa,Florida, USA

Flight decklightingsystem

Boeing 787The flight deck lighting systemconsists of all task lighting, generalillumination and emergency lightingon the flight deck.

Mar 2006

Boeing GoodrichSensorSystems

Burnsville,Minnesota,USA

Flight deckentry videosurveillancesystems

Boeing 787 The system includes video cameraswhich allow crews to see in totaldarkness, a video server designed tointerface with the aircraft's ElectronicFlight Bag (EFB) system and EFB clientserver applications software. This was

Apr 2006

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128 The growth of aircraft manufacturing in low-wage economies 2005-2009

the twelfth contract the company hadbeen awarded by Boeing for the 787programme.

Boeing TriumphCompositeSystems

Spokane,Washington,USA

Compositefloor panelsystem

Boeing 787 Estimated $49million

Oct 2006

Boeing Tyee Everett,Washinton,USA

Fuselageinteriorsupport tierods

Boeing 787 Estimated $50million

First ship-set of fuselage interiorsupport tie rods sent to Boeing’s IRCdivision in mid 2007. Tyee hasdoubled its machining capacity overthe course of the last 10 months anddeveloped two strategic partnershipson the programme, HST aerospacefor carbon fibre tubing, and Akrofireguard to provide engineering andtest services.

Jun 2006

HamiltonSundstrand

DucommunIncorporated

Phoenix,Arizona USAand Thailand

Mechanicalenclosuresand wireharnesses

Boeing 787 $15million

Engineering and first articledevelopment will be performed atDTI’s Phoenix, Arizona facility withproduction starting in 2008 at DTI’sfacility in Thailand.

Jun 2006

ShenyangAircraftCorp

ContourAerospace

Brea,CaliforniaUSA andEverett,Washington,USA

Verticalleading edgespars

Boeing 787 Potentialvalue of$8million

The company is a wholly ownedsubsidiary of Vought AircraftIndustries. The aluminium plate forthese parts is over 37 feet long. Thecompleted parts are sent toShenyang, China, for assembly intothe 787's vertical stabilizer.

Feb 2006

ParkerAerospace

AMETEKAerospace& Defense(US)

Marysville,Ohio, USA

Heatexchangers,hydraulicquantityindicators,temperaturesensors andpressuretransducers

Boeing 787 The Parker hydraulic subsystem willoperate at 5,000 psi. The subsystemincorporates 19 AMETEK pressuretransducers (10 high-pressure, threelow-pressure and six differentialpressure). The pressure transducersare designed for 2-wire 4-20mAoutput current. The Hughes Treiterunit of AMETEK Aerospace & Defensehas designed a high-pressurealuminium tube-fin heat exchanger tosatisfy the heat dissipation requiredfor the new hydraulic system.

Jul 2006

HamiltonSundstrand

TTTech,

Austriamicrosystems

Unterpremtaetten, Austria

TTPcontrollers

Boeing 787 Time triggered protocol (TTP)controllers are used to support datacommunications for HamiltonSundstrand’s electric andenvironmental control systems.

May 2006

Spirit Aero

Systems

MTI Global Mississauga,Ontario,Canada

Thermalacousticinteriorinsulationsystems

Boeing 787 Approximately $23million

The systems will be deployed in thenose and forward sections.

Mar 2006

Sukhoi MMPPSalyut

Honeywell

Moscow,Russia

Phoenix,Arizona, USA

APU SukhoiSuperjet100

The RE220[RJ] for the Superjet 100 isa derivative of Honeywell’s RE220APU family and was one of the firstwestern regional APUs to receive atype certificate by the InterstateAviation Committee Avian Register,the Russian equivalent of the FAA.The RE220[RJ] APU will start up to37,000 feet and operate to 41,000feet. It will deliver up to 110 lbm/minwith a simultaneous electrical load of40 kVA for main engine starting andEnvironmental Control Systemoperation. It will deliver 40 kVA to

Jul 2006

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129 The growth of aircraft manufacturing in low-wage economies 2005-2009

support electrical needs up to 41,000feet, and bleed air for MES or ECS upto 25,000 feet.

ShenyangAircraftCorporation

PlasticFab Wichita,Kansas, USA

Composite/Metal Panels

Boeing 787 $20.5million

PlasticFab will manufacture metaland composite bonded panels for thevertical fin leading edge, which will bepart of the Shenyang AircraftCorporation supplied vertical fin.

Jan 2006

HamiltonSundstrand

AdaCore New York,USA

Software Boeing 787 AdaCore's GNAT Pro is the Adadevelopment environment for thesoftware running in the HamiltonSundstrand air conditioning packairborne software configuration,which regulates cabin airtemperature on the Boeing 787.

May 2006

Bombardier ShenyangAircraftCorporation

Shenyang,China

See comment BombardierDash 8Q400

Shenyang supplies the empennage, aswell as the aft and forward fuselagesections. In July 2006, Bombardierentered an agreement that stipulatedSAC would manufacture certainstructural aircraft components for theQ400 aircraft that were previouslysourced from Mitsubishi HeavyIndustry.

Jul 2006

Goodrich Stork SPAerospace

Amsterdam,TheNetherlands

Landing gearstructures

BombardierDash 8Q400

This contract started activities atStork SP Aerospace in January 2007,with hardware deliveries scheduledthrough 2011. In July 2006, Goodrichand Stork SP Aerospace signed anagreement covering the applicationof load carrying composites in landinggear. Goodrich will continue to beresponsible for overall systemintegration and product engineeringas well as the interface withBombardier and the DASH 8-400operators through its global customerand product support network.

Dec2006

Thales CMCElectronics

Saint-Laurent,Quebec,Canada

Flightmanagementsystem (FMS)

SukhoiSuperjet100

The CMA-9000 will provide theaircraft with multi-sensor basednavigation and enhanced operationalcapability and is derived from thecompany's CMA-900 FMS/GPS andCMA-3000 helicopter FMS. The singleunit CMA-9000 has civil certifiedmulti-sensor (GPS, INS, DME and EGI)navigation capabilities. It conforms tothe ARINC-739 multifunction controldisplay unit standard, making itsuitable as a display and control unitfor other systems such as ACARS,ACMS and Satcom.

Jul 2006

Value of all 2006 airliner system, structures and component contracts, in the public domain $819.5

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $157

million

PMI Media estimates of total value of 2006 airliner system, structures and component contracts $ 1,735.5

million

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130 The growth of aircraft manufacturing in low-wage economies 2005-2009

PMI Media estimates of low-wage manufacturing system, structures and component contracts $427

million

Military transports

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Airbus CraneAerospaceandElectronics

Lynnwood,Washington,USA

Door andslide controlsystem

AirbusA330 MRTT

The DSCS monitors the position of theaircraft’s passenger and cargo doorsto ensure that they are safely closed,locked and latched

Feb 2006

LockheedMartinAleniaTacticalTransportSystems

Rolls-Royce Indianapolis,Indiana, USA

Engines C-27J $900million

In 2006 Alenia Aeronautica and Rolls-Royce signed a $200 million-plusmillion agreement for Rolls Roycewill supply 42 propulsion systems forthe C-27J. The agreement includesup to 84 AE 2100-D2 engines, longwith six-bladed Dowty R-391propellers – manufactured by GeneralElectric in Gloucester, UK - andtechnical support.

Mar2006

BoeingMilitaryAircraft

KiddeTechnologies

Wilson, NorthCarolina

Smokedetectors

Boeing KC-767

Shipments of the lavatory and crewrest compartment smoke detectorsbegan in 2007.

July 2006

BoeingMilitaryAircraft

Shimadzu Tokyo, Japan Actuators Boeing KC-767

Shimadzu is designing andmanufacturing major controlcomponents for trailing edge flapdrive system. Through thedevelopment experience gained fromthis programme, Shimadzu hopesthat it will lead them to take a bigstep forward in this field. In 1976,Shimadzu started manufacturingcomponents for Boeing 737s.Thereafter, the business expanded toinclude gearboxes, pneumatic systemregulators, and electro-mechanicalactuators for doors, wings, etc. onBoeing 747, 757, 767, and 777families.

December2006

LockheedMartin

Heroux-Devtec

Longueuil,Quebec,Canada

Landing gearcomponents

C-130J Lockheed Martin and Heroux-Devtecsigned a memorandum ofunderstanding for the supply of 60 to80 additional landing gear ship-setsand an expansion of the licence for C-130 certified parts. In August 1995Lockheed Martin AeronauticalSystems announced the Canadiancompany had won the contract forthe production of landing gears for up135 C-130J Hercules aircraft. Thisprogramme, including options andprovision of replacement parts, couldtotal $30 million.

June 2006

NorthropGrumman

Barco Kortrijk,Belgium

Displays NorthropGrummanE-2DAdvancedHawkeye

The company is supplying multi-purpose control display units(MCDUs) and a modular open systemdevelopment platform. NorthropGrumman will integrate Barco’s

February2006

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131 The growth of aircraft manufacturing in low-wage economies 2005-2009

MCDUs into the cockpit and rearoperator stations. The MCDUcontains a high-resolution 4.2" x 4.2"display and interfaces to the E2Davionics system through both astandard ARINC 739 and a dualredundant MIL-STD-1553 interface.The MCDU is scalable and can drivetwo external displays. MOSART allowsNorthrop Grumman to develop andintegrate its own applications into theMCDU.

Value of all 2006 military transport system, structures and component contracts, in the public domain $900

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2006 military transport system, structures and component

contracts

$1,013

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Military fast jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Aermacchi HellenicAerospaceIndustry

Athens,Greece

Rearfuselage andotherstructures

AermacchiM-346

In January 2005, the Greek Ministryof Defence signed a Memorandumof Understanding (MOU) tobecome a partner in theprogramme.

Jan 2006

LockheedMartin/NorthropGrumman/JSFprogramme office

Terma Lystrup,Denmark

Horizontalstabliserconventionaledges

LockheedMartin F-35Joint StrikeFighter

Contractwortharound$50millionaccordingto Terma.

Structure made from carbon-fibreparts

Jun 2006

L-3 DisplaySystems

Barco Kortrijk,Belgium

IPDTcomponents

LockheedMartin F-35Joint StrikeFighter

TheBarcoPCDcontractcontentholds apotentialvalue ofover $15millionover the

Feb 2006

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132 The growth of aircraft manufacturing in low-wage economies 2005-2009

life of theJSFprogramme.

Pratt & Whitney ProductionParts PtyLtd.

Melbourne,

Australia

High turbinesupports/bearinghousingsupports forthe F135

LockheedMartin F-35Joint StrikeFighter

Value inexcess of$60million.

At the time Australia’s largestagreement for the manufacture ofmilitary aircraft engine parts

Feb 2006

GeneralElectric/Rolls-Royce

Avio Turin, Italy Low pressureturbinecomponents

LockheedMartin F-35Joint StrikeFighter

The agreement signed by the threecompanies provides for Avio'sinvolvement throughout theengine's life span, from the initialdevelopment through productionand long-term service activities.Avio's responsibilities include thedevelopment and production ofcomponents for the low-pressureturbine and the compressor. Thecompany has also been contractedfor the supply of eleven partsduring the System Developmentand Demonstration Phase (SDD) ofthe F136 engine programme. Aspart of the agreements, Avio SpAwill be involved in designengineering and manufacturingefforts in the F136 SDD Phase. Theagreements also addressopportunities for a follow-onsupplier relationship for the lowrate initial production phase as wellas revenue sharing participantagreement for the fixed priceproduction and sustainmentphases. In 2002 General Electric,Rolls-Royce and the then FiatAviosigned an MOU of cooperation. Aseparate agreement with Rolls-Royce calls for FiatAvio to alsoparticipate in the design,development, and manufacture ofthe JSF-F136 accessory gearbox.

Jul 2006

GeneralElectric/Rolls-Royce

Avio Turin, Italy Low pressureturbinecomponents

LockheedMartin F-35Joint StrikeFighter

Thepurchaseorders(POs) forparts,toolingand non-recurringengineering arevaluedapproximately at$10million.

Jul 2006

GeneralElectric/Rolls-Royce

TusasEngineIndustriesInc (TEI)

Eskisehir,Turkey

F136 designengineeringservices

LockheedMartin F-35Joint StrikeFighter

TEI produces key rotatingcomponents for F136 developmentand test engines at itsmanufacturing facility in Eskisehir.

Jul 2006

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133 The growth of aircraft manufacturing in low-wage economies 2005-2009

GeneralElectric/Rolls-Royce

Volvo AeroNorway

Kongsberg,

Norway

F136components

LockheedMartin F-35Joint StrikeFighter

Up to$177million

Volvo will manufacture both theforward and aft cases of the HighPressure Compressor for the F136.The initial $1.7million contractprovides cases for the 40,000lbengine, due to run in 2008 as partof the System Development andDemonstration (SDD) programme.The award follows from Volvo’sproduction of aft cases for earlierF136 Phase III test engines.

Nov 2006

General Electric ProductionParts

Melbourne,Australia

F136components

LockheedMartin F-35Joint StrikeFighter

The contract covers delivery ofparts as part of the SystemDevelopment and DemonstrationPhase (SDD) of the programme.

Jul 2006

Rolls-Royce Goodrich Santa FeSprings,California,USA

AircraftWheel &Brake team inTroy,Ohio,USA

Materials andSimulationTechnicalCenter inBrecksville,Ohio, USA

F-136 frictionresearch

LockheedMartin F-35Joint StrikeFighter

The research and developmentcontract covers the application ofthe company’s friction materialexpertise to the STOVL variant'sLiftFan(TM) clutch by Rolls-Royce.In addition to this new researchand development contract,Goodrich is providing the landingsystem for the Air Force'sConventional Take-off and Landing(CTOL) variant of the aircraft. Asthe landing systems integrator,Goodrich is responsible for thedesign, manufacturing and testingof unique landing systems for theSTOVL and the Carrier Variant (CV)of the aircraft. Goodrich'sActuation Systems team providesthe downlock and retract actuatorsfor the landing gear system, andthe wiring harnesses are alsoprovided by Goodrich. Goodrich isalso supplying: the Rolls-RoyceLiftFan anti-icing system for theSTOVL version of the aircraft; theLiftFan drive shaft also for theSTOVL variant; the Rolls-Roycethree-bearing swivel nozzle crosslock and up lock; the fuel quantitygauging components and theassociated wiring harnesses; theweapons bay door drive systemand the electronic control unit forthe system; utility actuators; andthe ice detection system. Inaddition, Goodrich is developingthe air data system.

Feb 2006

BAE Systems Magellan Toronto,

Canada

Aft-fuselage,horizontaland verticaltails sub-structures

LockheedMartin F-35Joint StrikeFighter

Jul 2006

BAE Systems Avcorp(Canada)

Vancouver,Canada

Aft-fuselage,horizontaland verticaltails sub-structures

LockheedMartin F-35Joint StrikeFighter

Jul 2006

BAE Systems Terma Lystrup, Aft-fuselage,horizontal

LockheedMartin F-35

Terma’scontract

Jul 2006

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Denmark and verticaltails sub-structures

Joint StrikeFighter

wasvalued intheregion of$250million

BAE Systems Hawker deHavilland

Melbourne,

Australia

Aft-fuselage,horizontaland verticaltails sub-structures

LockheedMartin F-35Joint StrikeFighter

Around$600million.

A Boeing company Jun 2006

Value of all 2006 military fast jet system, structures and component contracts, in the public domain $1162

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2006 fast jet system, structures and component contracts $1450

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Rotorcraft

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

AgustaWestland Goodrich Charlotte,NorthCaroline, USA

Rotorbladeice protectionsystem (RIPS)

AgustaWestland AW139

The system assists in keeping theaircraft's main and tail rotorbladesice-free during extreme operatingconditions by using Goodrich'sDuraTherm(TM) electro-thermaldeicing mat technology. The RIPS isused to shed accreted ice and assistin maintaining ice-free conditionsfor both the helicopter's main andtail rotorblades.

Aug 2006

AgustaWestland BAESystems

Edinburgh,

UK

Digital flightcontrolcomputer

AgustaWestlandEH101(Royal Navyversion)

$32million

The Helicopter Electro ActuationTechnology (HEAT) programme isreplacing hydraulic systems withelectromechanical fly-by-wiresystems. It comprises two flightcontrol computers providingquadruple-redundant electroniccontrol. In 2006, a "CapabilitySustainment Plus (CSP)" upgradeprogramme was initiated for theRoyal Navy's Merlin HM.1s,replacing four rotor system controlhydraulic actuators -- three for themain rotor, one for the tail rotor --with electromechanical actuators.

May 2006

AgustaWestland LHTEC – aRolls Royce,Honeywelljointcompany

Indiana,Indianapolis,USA

Phoenix,

Engines AgustaWestlandAW159

$140millionUSD (£75million)

The AW159 is powered by twoLHTEC CTS800 engines each ratedat 1015 kW (1361 shp). Honeywellproduces the high pressure coreand undertakes final production.Rolls-Royce produces low pressurespool The CTS800 engines provide36% greater power than the Gem

Jun 2006

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Arizona, USA engines used in current MoD Lynxhelicopters for very similar fuelconsumption. AW159 with itsCTS800 engines will have anendurance of approximately 3hours with standard fuel and 4.5hours with auxiliary fuel whilebeing able to carry half as muchagain as current Lynx helicopters.The existing composite main rotorblades will be used and marriedwith an all new 4-blade tail rotor togive improved yaw control at highweights and a new commonundercarriage with improvedcrashworthiness has beendesigned. The engine achievedEuropean Aviation Safety AgencyType Certification in September2008.

AgustaWestland GKNAerospace

Yeovil, UK Airframe AgustaWestlandAW159

Contractis valuedatapproximately £50millionthroughto 2016.

GKN Aerospace will supply thecomplete, assembled airframe for70 AW159 helicopters for the UKRoyal Navy and Army. TheCompany will be responsible formanaging the entire supply chainfor this work and will assemble theairframe at its base in Yeovil, priorto delivery to AgustaWestland. TheAW159 airframe is a new and lesscomplex design, manufactured inaluminium but incorporatingmonolithic machined componentsto reduce the component count bysome 30%. The redesigned noseand rear fuselage give greaterspace and easier access to avionicunits while an all new up-ratedcommon undercarriage withstrengthened attachments hasbeen designed to meet theaircraft’s MAUM of 6,250 kg.AW159 is the launch programmeunder the new Strategic PartneringArrangement (SPA) that the UKMinistry of Defence (MoD) andAgustaWestland (AW) have signed.An integral requirement of the SPAhas been the back to back signatureby AgustaWestland of the AW159Contract and Partnering Charterswith the six major suppliers to theAW159 Programme – one of thesebeing GKN Aerospace.

Jun 2006

AgustaWestland GeneralDynamics

London, UK Advancedtacticalprocessor

AgustaWestlandAW159

Contractvalued atmorethan £24million($44million)

General Dynamics UK'sDevelopment and Manufactureprogramme for the AW159programme will continue until2015. The tactical processor offersa high degree of commonalityacross both variants of the AW159 -the British Army's BattlefieldReconnaissance Helicopter (BRH)and the Royal Navy's SurfaceCombatant Maritime Rotorcraft(SCMR). The tactical processor, willhost software applications thatinterface to the hardware using anAllied Standard AvionicsArchitecture Council (ASAAC)

Jun 2006

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standard based 3-layer softwarestack. It will also provide a videoprocessing and distributionfunction, embedded missionrecording and playback and adigital map capability that iscommon to the UK's Merlin Mk3support helicopter.

AgustaWestland GeneralElectric

(formerlySmithsAerospace)

Cheltenham,UK

Cockpitdisplays

AgustaWestlandAW159

The company has been awarded acontract to supply the new SDS-5000 large area cockpit displaysystem for the AW159. Deliveriesto AgustaWestland start in 2008.The 10” x 8” (25 cm x 20 cm) liquidcrystal displays provide more than70% additional display areacompared to the existing SDS-4000display system which it replaces.The system allows for variabledisplay formats to presentenhanced situational awarenessand greater flexibility in the displayof flight, system and mission data.Each display unit has multi-functional bezel mounted keys toselect information required.

Jul 2006

AgustaWestland SelexSensors &AirborneSystems

Edinburgh,UK

HelicopterIntegratedDefensiveAids System(HIDAS).

AgustaWestlandAW159

The countermeasures suitecomprises Selex Sensors andAirborne Systems HelicopterIntegrated Defensive Aids System,HIDAS 15, and Electronic SupportMeasures (ESM). Finmeccanicaparent said Selex has signed aninitial contract withAgustaWestland worth "tens ofmillions of pounds" to supply thesystem, similar to equipmentalready installed on the BritishArmy's Apache the EH101Merlin Mk3 and Sea King Mk4support helicopters.

Jul 2006

AgustaWestland Thales UK Chessington,UK

Avionics AgustaWestlandAW159

$63million

Thales UK is providing the core ofthe avionics management,communications and navigationsystems, as well as takingresponsibility for the integration ofcommercial off the shelf equipmentwithin the navigation andcommunications sub-systems. TheThales Secure CommunicationsControl System (SCCS), which is atthe heart of the communicationssystem, is from the family of TopSISproducts. Plain and secure voicecommunication is provided viaV/UHF SATURN and HF radios.

Jul 2006

AgustaWestland GeneralElectric(formerlySmithsAerospace)

Southampton, UK

CombinedHealth &UsageMonitoringSystem andCockpit Voice& Flight DataRecorder

AgustaWestlandAW159

Development is taking place at thecompany’s facilities Southamptonin the UK and Michigan in the USA.HUMS production deliveries arescheduled to commence in 2011.The HUMS application will beintegrated into both the Army - 40Battlefield ReconnaissanceHelicopters (BRH) and Navy - 30Surface Combatant MaritimeRotorcraft (SCMR). The AW159HUMS will continuously monitorthe fleet wide health andperformance of safety-criticalcomponents, providing advance

Jul 2006

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warning of potential equipmentfailures and collecting valuable datafor routine maintenance of eachaircraft. HUMS sensors monitor thehealth and usage of the engines,transmission, drive-train system,rotor system and airframe bydetecting and diagnosing potentialfailures, recording usage,automating test procedures andproviding alerts for potentialmaintenance actions. The HUMSalso provides continuous RotorTrack and Balance capability,negating the requirement for theinstallation of carry aboardequipment and the overhead fordedicated RTB check flights. Thisfeature will be operational for theaircraft.

Bell HelicopterTextron

Honeywell Phoenix,Arizona, USA

Avionicssystems

Bell 429 Honeywell avionics productsinclude the dual-channel KSG-7200air data attitude heading referencesystem (ADAHRS), which usesHoneywell's solid-state micro-electromechanical sensors (MEMS)and optional automatic directionfinder (ADF), radar altimeter,weather radar and enhancedground proximity warning system(EGPWS).

Feb 2006

AmericanEurocopter

Aerolite Everett,Washington,USA

Stretcherinstallations

AmericaEurocopterUH-72A

The company's retainer mountswere chosen after a "fit-check"competition with other mountingsystems.

Apr 2006

AmericanEurocopter

BAESystemsMobilityandProtectionSystems

Phoenix,Arizona, USA

Seats AmericaEurocopterUH-72A

The helicopter’s two energy-absorbing cockpit seats haveergonomic cushions, a 4-pointrestraint system with an inertia reeland are qualified to FAAcrashworthiness specifications. Thelightweight cockpit seats useadvanced composites, includingaramid and graphite materials.

Apr 2006

AmericanEurocopter

Goodrich Charlotte,NorthCarolina, USA

Rescue hoist AmericaEurocopterUH-72A

The 44301-series hoist is mountedon a boom and support assemblythat allows it to be positioned in anarc of up to 63 degrees from theaircraft fuselage centerline.

Apr 2006

Eurocopter Hispano-Suiza

Colombes,France

Accessorygearbox

EurocopterEC175/HAIGZ15

Jun 2006

Eurocopter APPH Bolton, UK Landing gears EurocopterEC175/HAIGZ15

The valueof thecontractforOriginalEquipment andspares isanticipated to bein excessof $100million of

The contract involves the designand manufacture of landing gearsfor both the French EC175helicopter as well as the Chinesevariant - the Z15. The market forthis programme is expected to beup to 1000 helicopters, with aproduction life of 20 years. Theinitial current production run isanticipated at between 680 and800 aircraft planned to start in2011 and the prototype is plannedto fly in 2009.

Dec 2006

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revenue

MD Helicopters Pratt &WhitneyCanada

Longueuil,Quebec,Canada

Engines MD902 The helicopter is powered by twoPratt and Whitney Canada PW207Eengines.

Feb 2006

MD Helicopters Kamatics Bloomfield,Conneticut,USA

Maindriveshaftand tail rotorself-lubricatingbearings

MD900/902

MD Helicopters has signed astrategic agreement with KamaticsCorporation to create a multi-yearsupplier agreement for 13components used in the assemblyof the MD Explorer, MD 500E, MD530F, MD 520N and MD 600Nhelicopters.

Feb 2006

MD Helicopters CheltonFlightSystems/S-Tech

MineralWells, Texas,USA

Electronicflightinstrumentsystem (EFIS)

MD 500,520, 600N

From late 2007 single-engined MDhelicopters have been equippedwith two Chelton EFIS displays, asolid-state strap-down gyro AHRS(Attitude/Heading ReferenceSystems), an air data computer anda GPS/WAAS (Wide AreaAugmentation System) receiver.The system also features asynthetic vision primary flightdisplay, dual integrated head-upFMS, Class-B or -A helicopter TAWS(Terrain Awareness and WarningSystem), a master caution voicewarning system, HITS (Highway-In-The-Sky navigation), a digital flightrecorder, and Chelton's hovervector display.

Sep 2006

MD Helicopters Kamatics Bloomfield,ConnecticutUSA,

Maindriveshaftand tail rotorself-lubricatingbearings

MD 500,520, 600N

MD Helicopters has signed astrategic agreement with KamaticsCorporation to create a multi-yearsupplier agreement for 13components used in the assemblyof the MD Explorer, MD 500E, MD530F, MD 520N and MD 600Nhelicopters.

Feb 2006

MD Helicopters TriumphGear

Macomb,Michigan,USA

Transmissionsystems

MD 500,520, 600N

The two companies have created along-term agreement for the supplyof helicopter transmissions forMDHI’s single-engine rotorcraft.The agreement also includesrelated components from othermembers of the Triumph Groupused in the assembly of both single-and twin-engine helicopters.Additional Triumph Gear Systems’components are included in the MDExplorer transmissionmanufactured by Kawasaki HeavyIndustries.

February2006

Sikorsky RockwellCollins

Cedar Rapids,Iowa, USA

Avionicsmanagementsystem

SikorskyCH-53K

The CH-53K AMS consists of fivefully integrated active matrix liquidcrystal multifunction displays(MFD), dual integrated processingcabinets (IPC), dual control displayunits (CDU), and dual data transferunits (DTU). The integrated cockpitincludes fully integrated primaryflight instrumentation, crewalerting system, displaymanagement, vehiclemanagement, civil and militaryflight management, and navigationand communication equipmentmanagement. In addition, the CH-53K AMS provides improvedmission situational awareness

Jun 2006

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through embedded tactical missionaids, such as digital moving map,FLIR video, defensive electroniccountermeasures, network readycapability, correlation, and tacticaldisplay functions.

Value of all 2006 rotorcraft system, structures and component contracts, in the public domain $454

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2006 rotorcraft system, structures and component contracts $754

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Business jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Bombardier Nordam Tulsa,Oklahoma,USA

Interior linerand windowshades

BombardierLearjet 60XR

The configured interior liner willinclude headliners; the passengerservice unit (PSU), which is used tocontain lighting, air gaspers, oxygenboxes and audio speakercomponents; side walls; and thelower side walls called dado panels.

Nov 2006

Bombardier MeggittAircraftBrakingSystems

White Plains,New York,USA

Wheels andbrakes

BombardierChallenger605

ABSC - now Meggitt - introducedcarbon brake technology tobusiness aircraft on the BombardierChallenger 600. ABSC developedhigher capacity wheels and carbonbrakes for the Challenger 604 toaccommodate the increasedbraking requirements.

Jan 2006

Cessna Aircraft UnisonIndustries,Jacksonvill,Florida.,USA

Holtsville,New York,USA

Startergeneratorand digitalgeneratorcontrol unit(DGCU)

CessnaCitationMustang

The DGCU is used to control thestarter generator, which starts theaircraft engine and provides in-flight power for a variety of aircraftfunctions. This is the first time theUnison technical team has certifiedan electronic product for turbineengine applications thatincorporates embedded software.

Aug 2006

Cessna L-3 Avionics Grand Rapids,Michigan,USA

GH-3000 ESIS CessnaCitation560 XLS+

Replaces conventional electro-mechanical standby attitude,airspeed and altitude instruments,

Oct 2006

Cessna L-3 Avionics Grand Rapids,Michigan,USA

EHSI-400 CessnaCitation560 XLS+

The system incorporates a fullydigital design and providesdistance, bearing and courseinformation in a 3-ATI size display.

Oct 2006

Cessna Nordam Tulsa,Oklahoma,USA

Wingtiptransparencies

Cessna 680CitationSovereign

According to the company “Norstarlenses provide an 80% increase inproduct life relative topolycarbonate lenses and a 50%weight savings over glass lenses.”

Jul 2006

Dassault AirCell Louisville,Colorado,

Aircell Axxesssatcom

DassaultFalcon

AirCell Axxess is a family of latest-generation, multi-channel, satcom

Oct 2006

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140 The growth of aircraft manufacturing in low-wage economies 2005-2009

USA systemselected asoptionalfactor extraon Falcon jets

50EX, systems designed for medium-to-large business aircraft.

Dassault Labinal Pryor,Oklahoma,USA

Electricalcompletionharnesses

DassaultFalcon 900

The electrical completion harnesseswill be delivered directly to theDassault Falcon Jet facility in LittleRock, Arkansas.

Jun 2006

Dassault CMCElectronics

Montreal,Canada

Pilot viewElectronicFlight Bag(EFB)

DassaultFalcon 900

PilotView provides en-route,approach charts, moving mapdisplay and graphical real timeweather information.

May 2006

Dassault AirCell Louisville,Colorado,USA

Aircell Axxesssatcomsystemselected asoptionalfactor extraon Falcon jets

DassaultFalcon900DX,900EX

AirCell Axxess is a family of latest-generation, multi-channel, satcomsystems designed for medium-to-large business aircraft.

Oct 2006

Diamond BallisticRecoverySystems

St Paul,Minnesota,USA

Parachuterecoverysystem

Diamond D-Jet

The D-JET will be fully certified tofly without the parachute, but theparachute will be offered as thestandard option.

Jul 2006

Embraer Meggitt

AircraftBrakingSystems

Akron, Ohio,USA

Wheels,brakes andbrakingsystems

Embraer100

Over thelife of theprogramme, thecontractvalue isestimated to bewortharound$250million.

Lightweight aluminium alloy wheelswith long life steel brakes.

May 2006

Embraer Alcoa Torrance,California,USA

Fasteners Embraer100/300

The company’s UAB™ Blind Bolt hasbeen approved by Embraer for useon the Phenom 300. Each aircraftwill use approximately 3,700 UABBlind Bolts in the manufacture ofcomposite empennage and flaps,says Alcoa.

Oct 2006

Embraer AvionicsServices

São Paulo,Brazil

Seats Embraer100/300

Avionics/Geven will supply theseats and will provide all thesupport for the whole lifetime ofthe fleet.

Apr 2006

Embraer Daher Orlytech,Paris, France

Sub-assemblies

Embraer100/300

The renewable five year contractsstarted in May 2008 and are forcomposite-based sub-assemblies.

Mar 2008

Embraer MeggittAircraftBrakingSystems

Coventry,UK Wheels,brakes andbrakingsystems (-300)

Embraer100/300

Thecontractisexpectedto beworth$100millionover thelife of theaircraft.

The award covers main and nosewheels, steel brakes and a brake-by-wire control system, includingan emergency park brake and anti-skid system.

Apr 2006

Embraer GeneralElectric

Rockford,Illinois, USA

Bleed air andanti-icesubsystems

Embraer100/300

First delivery August 2007. Thesubsystems will be manufacturedat Smiths' facility – now GeneralElectric - in Rockford, Illinois.

Oct 2006.

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General Electric/Smiths Aerospacesystems package consists of thebleed air system controller, thepressure regulating and shutoffvalves (PRSOVs), fan air valves,cross bleed valve, wing andhorizontal stabilizer anti-ice valves,and the engine reverse flow checkvalves. The controller manages thebleed air valves, anti-ice valves andbleed air leak detection sub-systems. In addition to the aboveunits, GE/Smiths will performsystem level performance testing intheir test facility on the entirebleed air and anti-ice systems toinclude Embraer supplied engineanti-ice valves, pre-cooler heatexchanger, system ducting,temperature sensors, and piccolotubes.

Embraer Goodrich Charlotte,NorthCarolina, USA

Air datasystem

Embraer100/300

Theaward isexpectedtogenerateapproximately $20million inoriginalequipment andaftermarketrevenuesover thelife of theprogramme

Goodrich will provide theSmartProbe(TM) Air Data Systemfor the Phenom 300. The systemwill provide all primary air datainformation required by theaircraft.

Dec 2006

Embraer Honeywell Orlando,Florida, USA

Cabinpressurecontrol andmonitoringsystem(CPCMSTM)

Embraer100/300

This system provides both cabinpressure control and cabin altitudemonitoring functions. Controls andsensors are mounted remotelyfrom the flight deck to maximizeflight deck panel space, accordingto Honeywell and the systemarchitecture is designed tointerface directly with the aircraft’savionics to provide fully automatedcabin pressure control with noflight crew interaction duringnormal operation. The overallsystem includes an electroniccontrol and monitoring unit(ECMU), an outflow valve (OFV),and positive and negative pressurerelief valves. Via the avionics, thesystem receives aircraft altitudeinformation from the air datacomputer (ADC), destinationlanding altitude from the flightmanagement system (FMS), andengine power setting directly fromthe throttle.

Oct 2006

Embraer Luminescent SystemsInc

East Aurora,New York,USA

Exteriorlightingsystem

Embraer100/300

In October 2006 AstronicsCorporation, the parent companyof Luminescent Systems Inc,announced it had been selected toprovide exterior lighting for thePhenom 100 and would work with

Oct 2006

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Embraer on the certificationprocess to design a completeexterior lighting system, which usesLED (light emitting diode) and HID(high intensity discharge) lightingtechnology. Astronics is alsosupplying flood lighting and lightingcontrollers for the cockpit.

Embraer Thales Paris, France IntegratedElectronicStandbyInstrument(IESI)

Embraer100/300

Thales announced it will providethe IESI, incorporating the ActiveMatrix Liquid Crystal Display(AMLCD) in a 3 ATI instrumentformat.

May 2006

GeneralElectric(formerlySmiths)

Rockford,Illinois, USA

Bleed air &anti-icesubsystems,

Embraer100/300

The contract includes the supply ofcontroller, pressure regulating andshutoff valves, fan air valves, cross-bleed valve, wing & horizontalstabilizer anti-ice valves, enginereverse flow check valves (all on300 model)

Oct2006

MeggittThermalSystems

Simi Valley,California,USA

Engine inletanti-icesystem

Embraer100/300

The company won the order inJanuary 2006 to supply the nacelleanti-ice system for the Phenom 100engine

Jan 2006

Honda AircraftCompany

GeneralElectric/Honda

Cincinnati,Ohio, USA

H-120 engine HondaJet GE Honda's HF120 engine will berated at 2,050 pounds of thrust.Since 2005, the GE Honda team hasrun component tests at Hondafacilities in Japan; and icing tests atGE's test facilities near Cincinnati,Ohio. The HF120 technologiesinclude: an 18.5-inch wide chord,compound-swept front fan andtwo-stage booster. The front fanand booster are GE Honda bliskdesigns; in the compressor, a hightemperature, titanium impellor; acompact reverse-flow configuredcombustor and single-stage air-blast fuel nozzles. During the initialphase of the HF120 programme,engines will be built at GE’s Lynnfacility under a GE productioncertificate. Honda Aero will obtainits own FAA production certificatein 2010 and become an FAA-approved repair station. Then inlate 2010 and early 2011, theHF120 assembly line capability willbe transferred to Honda Aero’snew facility

Oct 2006

HawkerBeechcraftCorporation(formerlyRaytheon Aircraft)

Honeywell Phoenix,Arizona, USA

Avionics(retrofitversion)

HawkerBeechcraft850/900XP

The Primus Epic® Control DisplaySystem/Retrofit (CDS/RTM) hasbeen certified for Raytheon Hawker800A aircraft.

Oct 2006

Value of all 2006 business jet system, structures and component contracts, in the public domain $370

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $1.9

million

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PMI Media estimates of total value of 2006 business jet system, structures and component contracts $898

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $1.9

million

2007

Airliners

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Airbus Liebherr Lindenberg,Germany

Nose landinggear

AirbusA350 XWB

The nose landing gear of the AirbusA350 is the largest set of landing gearthat the company has yet developed.Large parts of it will be manufacturedfrom high-strength steel. Liebherr isinvesting several million euros inlarge-scale machine tools for theturning, milling, grinding and deepdrilling processes. In addition, a newCNC designing and programmemingsystem is currently being set up.

Sept 2007

Airbus Moog East Aurora,New York,USA

Primary flightcontrolactuators

AirbusA350 XWB

Moog’s Aircraft Controls Group issupplying the primary flight controlsincluding aileron, elevator, rudderand spoiler actuators.

Nov 2007

Airbus MessierBugatti/MessierDowty

Gloucester ,UKBidos, France,Montreal,Canadaand Suzhou,China

Main landinggear

AirbusA350 XWB

Airbus has chosen to use a singlesupplier for all the ATA32 systems ofthe A350 XWB: landing gearextension / retraction system, brakingmanagement, ground steeringmanagement and tire pressure, braketemperature and suspension pressuresurveillance management. The firstlanding gear delivery to the Airbusfinal assembly line in Toulouse isscheduled for early 2011.The mainlanding gear for the -800 and -900versions includes a four-wheel bogieand dual side stay which reducesloading on the A350XWB’s compositewing. For the -1000 variant, inaddition to the dual side stay, theMLG features a six wheel bogie toreduce loading on the tarmac. Themain landing gear design alsoincludes the increased use ofadvanced materials, specificallytitanium, which offers weight savingsand corrosion resistance. TheA350XWB main landing gear will alsobe chrome and cadmium-free, usingsurface treatments such as HVOF andMCAC coatings, which areenvironmentally responsiblesolutions. Messier-Dowty will managethe A350 main landing gearprogramme. The contractincorporates features such as the“brake to vacate” system, whichenables braking to be calculated

December 2007

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according to the programmed turn-off on the landing runway, and the“heading control” function enablingautomatic steering of the nose wheelaccording to a pre-programmed pathfor the aircraft on the ground.

Airbus GKN See comment See comment AirbusA350 XWB

Airbus selected GKN its preferredpartner for the acquisition of theFilton site, including the award ofsignificant composite work packagesfor the A350 XWB wing, including thefixed trailing edge.

Dec 2007

Airbus Latécoère See comment See comment AirbusA350 XWB

Airbus selected Latécoère as itspreferred partner for the acquisitionof the Méaulte and Saint Nazaire Villesites. This involves work on the nosesection (sections 11/12). However, inmid May the sale of the site was puton hold.

Dec 2007

AVIC BombardierAerospace

Montreal,Quebec,Canada

See comment ARJ21 AVIC I and Bombardier Aerospacehave signed an agreement for a new,long-term strategic cooperation inthe 90- to 149-seat commercialaircraft market. Bombardier intendsto participate in the development ofAVIC I’s five-abreast ARJ21-900aircraft. Under the terms of theagreement Bombardier intends toinvest $100 million US in the ARJ21-900 project, when launched, andprovide technical assistance towardsthe development of the aircraft.Furthermore, in pursuit of its goal tobecome a major international Tier 1structural supplier, AVIC I plans toinvest $400 million US for researchand development, construction ofnew facilities and equipment for theCSeries aircraft programme, should itbe launched.

Jun 2007

GeneralElectric

Hartwell Placentia,California,USA

CF34-10Ahold-openthrust rod

ARJ21 Hartwell Corporation is providing thehold-open rods and rate controldevice for GE CF34-10A engines.Theaft hold-open thrust rod assembly isbased on Hartwell’s existing designcurrently in service on an existingmilitary transport aircraft enginenacelle.

Jun 2007

Boeing Goodrich Thecompany’s USlanding gearmanufacturing facilities arelocated inOhio,Tennessee,Washington,as well asOntario,Canada andPoland.

Landing gear Boeing 737-600,-700,-800,-900;Boeing 767-200/-300/-400ER;Boeing 747-8 andBoeing 777all models

Goodrich Corporation signed a long-term agreement with the BoeingCompany under which Goodrich willcontinue as the exclusive supplier oforiginal equipment and aftermarketlanding gear for the 737, 747, 767and 777 commercial aircraftprogrammes. The agreement extendssupply arrangements through 2012.

Jul 2007

Airbus Goodrich Goodrich hasnacellefacilities inbothToulouse,France andHamburg,Germany

Nacelles AirbusA350 XWB

Thecontractisexpectedtogenerateapproximately $10billion in

Goodrich Corporation is providingAirbus with nacelle and thrustreverser systems for all variants ofthe A350 XWB aircraft. The contractincludes the integration of theGoodrich technology with eachengine manufacturer'soffering/option. The company willprovide Airbus with complete

Jan 2007

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originalequipment andaftermarketrevenuesforGoodrichover 20years.

propulsion systems ready to beinstalled on the A350 XWB finalassembly line.

Boeing Moog East Aurora,New York,USA

LateralControlElectronics(LCE)

Boeing 747-8

The function of the LCE is the controlof fly-by-wire aileron and spoileractuators.

Mar 2007

Boeing WytworniaZespolowKooperacyjnych

Warsaw,Poland

Structures Boeing 777– all types

The five year contract is tomanufacture hardware for all new777 aircraft. WZK is manufacturingthe Krueger Flap, a hinged surface onthe leading edge of the wing. In 2005Boeing awarded WZK a contract tomanufacture the spare door parts forthe fleet of Boeing 757s in operationworldwide. WZK produced all thepassenger doors for the 757 from late1992 to 2005.

Jun 2007

Boeing CraneAerospaceandElectronics

Lynwood,Washinton,USA

Onboardweight andbalancesystem

Boeing 777Freighter

The onboard weight and balancesystem is designed to providemeasurements of the 777 Freighter'sweight and centre of gravity. Inaddition, the system can quicklyvalidate manual weight calculations.

Mar2007

Boeing GKNAerospace

Mexicali,Mexico

Titaniummetal matrixcomposite(TMMC)thrust links

Boeing 787 According to GKN this represents thefirst use of TMMC in a commercialapplication; TMMC offers majorweight savings of 25% to 40% overtraditional steel or inconel thrust linksand increased temperature toleranceover monolithic titanium. GKNAerospace is partnered with FMWComposite Systems Inc on theprogramme. “GKN Aerospace andFMW will partner on this contractand in seeking other teamingopportunities for TMMC in theaerospace sector,” said GKN. TheBoeing 787 thrust link comprises anFMW manufactured TMMC centretube, which GKN Aerospace plasma-welds to two machined titanium endlugs.

Oct 2007

Boeing HoneywellAerospace

Phoenix ,Arizona, USA

Enginenacelle anti-ice regulator

Boeing 787 The engine nacelle anti-ice regulatoropens to allow the flow of hot airextracted from the enginecompressor section through a steelduct down to the engine cowling.

Apr 2007

Boeing M.C. Gill El Monte,California,USA

Floor panels Boeing 787 The company has a long-term supplyagreement with Boeing for GillcoreHK™ Honeycomb core. Under the 5year contract, M.C. Gill will supplyhoneycomb core to BoeingCommercial Airplanes - InteriorResponsibility Centre (IRC) for interiorcomponents on the 787. Thesecomponents include stowage bins,class dividers, partitions, and crewrests. According to the company:“Gillcore HK™ is a Kevlar® N636reinforced honeycomb core which is

Sep 2007

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146 The growth of aircraft manufacturing in low-wage economies 2005-2009

qualified to the Boeing BMS 8-124material specification. It offerssignificant weight savings overNomex® honeycomb core and hascontributed to the overall weightreduction effort on the 787aircraft.The floor panels featureKevlar® N636 Honeycomb corecombined with carbon fiberreinforced epoxy skins.”

Boeing TorayIndustries

Tokyo, Japan Compositematerial

Boeing 787 Totalcontractvalue upto $6billion

Toray reported at the end of October2007 it had won an additional$3billion order to supply Boeing withcomposite materials for the 787. In2004 Toray secured a first $3 billionorder for material on the aircraft. Thetotal weight of carbon fibre materialsthat will be used in Boeing's 787 isestimated to be half of its totalweight.

Jun 2004 andOct 2007

Fuji andKawasakiHeavyIndustries

RTIInternational Metals

Niles, Ohio,USA

StructuralTitaniumComponents

Boeing 787 Extruded and machined parts. Feb 2007

Latecoere AeroVodochody

Prague, CzechRepublic

Doorstructuresand hinges

Embraer170-175/190-195

CZK onebillion($57million)

The contract comprises exclusivedeliveries of hinges and innerstructure of doors for the aircraftEmbraer 170/190. Czech landing gearmanufacturer Technometra Radotin,a subsidiary company of Aero, hasjoined the Latecoere programme.Aero has developed a new productionline, with parts supplies to start inFebruary 2009.

Oct 2007

Sukhoi Boeing Seattle,Washington,USA

After-salessupport andadvice

SukhoiSuperjet100

An agreement was signed in June2007 between Sukhoi and Boeing toexpand Boeing’s participation in theSuperjet project. According to theagreement, said Sukhoi, “Boeing willexplore opportunities to assist Sukhoiin areas including, but not limited to:flight and maintenance crew training,spare parts management and supply,guidance on production of flight andmaintenance manuals that meetinternational standards.”

“Boeing will expand its participationin the organization of after-salessupport. It means it will assist Sukhoiin the development of its owninfrastructure, will ensure access toinfrastructure and moderntechnologies of Boeing’s after-salesservice, including the training ofpersonnel as well as access to theinfrastructure of the distribution ofspare parts. “ In 2002 Sukhoi selectedBoeing to serve as advisor to theprogramme.

Jun 2007

Goodrich EmbVUE Montreal,Canada

Softwareengineering,verificationandvalidationservices for

SukhoiSuperjet100

Mar 2007

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the brakecontrol unit.

Value of all 2007 airliner system, structures and component contracts, in the public domain $13,057

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $57 million

PMI Media estimates of total value of 2007 airliner system, structures and component contracts $42,280milli

on

PMI Media estimates of low-wage manufacturing system, structures and component contracts $1,657

million

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Military transports

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

AirbusMilitarySociedadLimitada(AMSL)

SaabAvitronics

Jönköping,Sweden

Terrainmasking lowlevel flightcomputer

AirbusA400M

Contractworthmorethan EUR10million

The system enables safe tacticalflights at very low altitudes. Thecomputer will be supplied to EADSMilitary Air Systems, Germany,developers of the system applicationsoftware.

Feb 2007

AirbusMilitarySociedadLimitada(AMSL)

ParkerAerospace

Cleveland,Ohio, USA

Fuel tankinertingsystem

AirbusA400M

The valueof thecontractscouldexceed$500millionover thelife of theprogrammes.

The fuel tank inerting system contractfor the Airbus A400M also includesthe airliner fleet. The Parker fuel tankinerting system uses air separationmodules (ASMs) that generatenitrogen-enriched air by removingthe oxygen from its air source anddistributing it to the aircraft's centerfuel tank, thereby reducing theflammability of fuel vapors in thetank. As the tier-one integrator,Parker will provide the core inertingtechnology subsystem consisting ofthe ASMs that produce the nitrogenand integrate it with a temperature-control subsystem developed byLiebherr Aerospace, Airbus's primaryenvironmental control systemsupplier. The ASM fiber technologyfor the Airbus programmes ispatented and owned by Parker. TheParker inerting system is expected toenter into service on Airbus aircraft inthe course of 2009.

Dec 2007

GlobalMilitaryAircraftSystems

APPH Runcorn, UK Landing gears C-27J/LCA The C-27Jwillprovidetotalsalesrevenuein excessof $60millionfororiginalequipment andlogisticalsupportover tenyears

The company has been given an initialcontract to supply the landing gearfor 78 aircraft with the anticipatedtotal requirement for over 200aircraft. APPH has designed,manufactured and certified the mainlanding gear for the JCA version.APPH has worked in collaborationwith Magnaghi SpA Italy, to developand integrate the total landing gearsystem on the C-27J.

Jun 2007

GlobalMilitaryAircraftSystems

Rolls-Royce Indianapolis,Indiana, USA

Engines C-27J/LCA The C-27Jbusinessis worthmorethan$500million toRolls-Royce

The twin-engine C-27J Spartanaircraft version for the JCA ispowered by Rolls-Royce AE 2100D2turboprop engines. The initialcontract award includes up to 78 C-27J aircraft and up to 180 engines.The total contract value for theaircraft is more than $2 billion. TheArmy and Air Force have announcedpreviously they may purchase up to145 aircraft in the JCA programme.The AE 2100 turboprop is a two shaft

Jun 2007

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149 The growth of aircraft manufacturing in low-wage economies 2005-2009

gas turbine with a 14-stage highpressure (HP) compressor driven by atwo-stage HP turbine. The LP shaft,driven by a two-stage power turbine,drives the compound planetaryreduction gearbox connected to thepropeller. The engine is the first touse dual FADECs (Full AuthorityDigital Engine Control) to control bothengine and propeller.

BoeingMilitaryAircraft

Honeywell Phoenix,Arizona, USA

IFFtransponder/TCAS system,air datacomputer

Boeing C-17Globemaster III

$20million

Honeywell is producing 180 MilitaryAirborne Collision Avoidance System– Formation Rendezvous (MILACAS-FR) systems for Boeing's entire C-17fleet.

2007

BoeingMilitaryAircraft

TelephonicsCorporation

Farmingdale,New York,USA

Huntingdon,New York,USA

Gardena,California,USA

Communications

Boeing C-17Globemaster III

$32millionplus

The company makes theCommunications Open SystemsArchitecture (COSA) Integrated RadioManagement System (IRMS)

The work is in support of both newproduction C-17 aircraft as well as theupgrade of existing C-17's to the newopen architecture system. Theproduction programme quantity of 22aircraft supports USAF andinternational C-17 customers. Theupgrade programme provides 15 kitsin support of the planned upgrade of124 aircraft over five years.

This communications managementsystem provides C-17 aircrews withsecure fully digital audio, integrateddisplays and controls formanagement of all communicationand navigation assets.

Apr 2007

BoeingMilitaryAircraft

Goodrich Thecompany’s USlanding gearmanufacturing facilities arelocated inOhio,Tennessee,Washington,as well asOntario,Canada andPoland.

Landing gear Boeing KC-767

Goodrich Corporation signed a long-term agreement with the BoeingCompany under which Goodrich willcontinue as the exclusive supplier oforiginal equipment and aftermarketlanding gear for the 737, 747, 767and 777 commercial airplanesprogrammes. The agreement extendssupply arrangements through 2012.

Jul 2007

Value of all 2007 military transport system, structures and component contracts, in the public domain $1,123

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2007 military transport system, structures and component

contracts

$1,143

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

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150 The growth of aircraft manufacturing in low-wage economies 2005-2009

Military fast jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

The IndianAeronauticalDevelopment Agency(ADA)

GeneralElectric

Fairfield,Connecticut,USA

Engine ADA LightCombatAircraft -Tejas

The General Electric 85 kN F404-GE-IN20 turbofan engine features fullauthority digital engine control. HALhas placed an order for 24 F404-GE-IN20 engines.

Feb 2007

Boeing MartinBaker

Uxbridge, UK Ejection seat Boeing F/A-18 E/F

$39.7million

The order is part of a 172 NavyAircrew Common Ejection Seats(NACES) contract, including 70 for theUS Navy's F/A-18E/F Super Hornets.

Jun 2007

Boeing LockheedMartin'sMissilesand FireControldivision

Up to 150InfraredSearch andTrack (IRST)systems forSuper HornetBlock IIaircraft

Boeing F/A-18 E/F

The totalcontractvalue isexpectedto exceed$500millionthroughthedevelopment andproduction phasesof theprogramme.

Sensor-fused data from IRST, AESA,ALR-67(v)3 digitally cued receiver andoff board information will providemulti-spectral air-to-air targeting.IRST is a passive, long-range sensorsystem that searches for and detectslong-wave IR emissions within its fieldof view. It can track several targetssimultaneously and provide aneffective air-to-air targetingcapability, even when facingadvanced threats with radar jammingequipment. First productiondeliveries of IRST systems areexpected in 2012, with initialoperational capability anticipated in2013.

Jul 2007

Boeing/USNavy

Cyclone/Elbit

Carmiel,Israel

330 gallonfuel tanks

Boeing F/A-18 E/F

$2millionout ofpotential$60million

Deliveries will take place between2009 and 2013. The tanks are madefrom a filament welding process.Previous F-18 components suppliedby the company have includedleading edge extensions and noselanding gear door

Dec 2007

LockheedMartin

Circle SealsControls

Corona,California,USA

Check valvesand pressureregulators fort hydraulicand fuelsystems

LockheedMartin F-22

The contract is for the design,development and manufacture ofspecialty fluidic control componentsand systems.

Apr 2007

LockheedMartin/NorthropGrumman/JSFprogrammeoffice

Pratt &Whitney

East Hartford,Connecticut,USA

F135 engineproduction

LockheedMartin F-35Joint StrikeFighter

$69.3million

The F135 engine low rate initialproduction contract will support twoconventional take-off and landing(CTOL) F-35 production aircraft.Engine deliveries are scheduled tobegin in June 2009. The F135propulsion system team consists ofPratt & Whitney, the primecontractor with responsibility for themain engine and system integration;Rolls-Royce, providing liftcomponents for the STOVL F-35B; andHamilton Sundstrand, provider of theF135’s control system, externalaccessories and gearbox.

Sep 2007

LockheedMartin/NorthropGrumman/JSFprogramme

KongsbergDefenceandAerospace

Kongsberg,Norway

Compositeproducts

LockheedMartin F-35Joint StrikeFighter

Initialscope ofMNOK1300 andMNOK650

The framework agreements withLockheed Martin and NorthropGrummanwere conditional on Norwayprocuring – a decision is expected in2008.The agreements will extend for

Jan 2007

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151 The growth of aircraft manufacturing in low-wage economies 2005-2009

office ($345million)

Full-scaleproduction willmean thescopecanpotentiallyincreaseto a totalof NOK 6-8 billion.

more than eight years and require theconstruction of a new compositefactory. In June 2005 KongsbergDefence and Aerospace signed anearly $40 million, long-termagreement with Northrop GrummanCorporation to produce compositeparts and subassemblies for the F-35,centre fuselage.

LockheedMartin/NorthropGrumman/JSFprogrammeoffice

TurkishAerospaceIndustries

Ankara,

Turkey

Centrefuselage

LockheedMartin F-35Joint StrikeFighter

$3 billionplus

Under the Letter of Intent (LOI) TAIbecomes the second source for the F-35 Lightning II center fuselage. Thenumber of center fuselages to beproduced by TAI will be determineddepending on the number of F-35sTurkey will procure and the numberof F-35s to be produced worldwide. InNovember 2008 TAI opened a new74,000sq ft facility to make at least400 composite subassemblies in thelow rate initial production (LRIP)phases of the programme.

Feb 2007

LockheedMartin

Alcoa Cleveland,Ohio, USA

Aluminum dieforgings

LockheedMartin F-35Joint StrikeFighter

$360million

Alcoa Power and Propulsion businesshas been awarded a 10-year contractto supply 7085 alloy aluminium dieforgings for the JSF programme.Contract work will be performed byAlcoa Forged and Cast ProductsCleveland operations and involves thedesign and manufacture of all thelarge aluminium structural dieforgings for more than 1,200 aircraft.The forgings include 15 largebulkheads — the primary structuralsupport for the wing and engine thatcan weigh from 1,800 to 6,000pounds and range from 10 to 23 feetin length — and six wing box partswhich serve as an importantcomponent of the skeletal structureto the wing. Alcoa’s partnership withLockheed Martin began in 2004. Inaddition to the aluminium forgingsdescribed above, other Alcoaaerospace units will provide critical F-35 components and solutions to theprogramme. Among those are highly-engineered joining devices fromAlcoa Fastening Systems, specialtyalloy plate from Alcoa NorthAmerican Mill Products, and high-pressure turbine blades for F-35 JSFengines and structural aluminumcastings from Alcoa Power andPropulsion. As part of the JSFcontract, Alcoa plans to invest $24million in Cleveland Works primarilyfor new machinery, equipment andinfrastructure improvements. AlcoaForged and Cast Products is beingsupported by the State of Ohio with a$400,000 Rapid Outreach Grant and

Nov 2007

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152 The growth of aircraft manufacturing in low-wage economies 2005-2009

up to $450,000 for employee training.

Pratt &Whitney

GKNAerospace

Luton, UK Ice protectionsystem

LockheedMartin F-35Joint StrikeFighter

$6million

The contract is for electro-thermalheater mats for the F135 engine iceprotection system (EIPS). Thecontract should lead to full scaleproduction. The new electro-thermalEIPS will remove the need to bleedhot air from the engine. It willrepresent the first productionapplication of a Resin TransferMoulded (RTM) composite structurewith an electro-thermal heatingsystem, according to the company.GKN Aerospace is responsible for theintegration of the mats into theforward fan case for the F135.

Mar 2007

Value of all 2007 military fast jet system, structures and component contracts, in the public domain $4,322

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $3,000

million

PMI Media estimates of total value of 2007 fast jet system, structures and component contracts $4,450

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $3,000

million

Rotorcraft

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

AgustaWestland

TusasAerospaceIndustries

Ankara,Turkey andCascinaCosta, Italy

Licenceassembly

AgustaA129Attack andTacticalreconnaissance (ATAK)

The dealisreportedto beworth $3billion

Turkey placed an order for 51 A129ATAKs; Tusas Aerospace Industries(TAI) is responsible for final assemblyof the helicopter, to be designatedT129. AgustaWestland and Aselsanare the main subcontractors. In May2009 AgustaWestland opened its newT129 facility in Cascina Costa, Italy.The new facility, staffed by more than70 Turkish and AgustaWestlandintegrated team technicians,comprises an assembly area for theT129 prototypes as well as officespace for the T129 team members.

Sep 2007

AgustaWestland

BAESystems

Phoenix,Arizona, USA

Crashworthyseats

AgustaWestlandAW159

Deliveries of 140 seats are slated for2011 through 2016 under thecontract.

Nov 2007

AgustaWestland

SelexSensors &AirborneSystems

Edinburgh,UK

Radar AgustaWestlandAW159

Selex Sensors & Airborne Systems issupplying its Seaspray 7000E ActiveElectronically Scanned Array (AESA)radar system, a multi-mode I-bandradar which provides 360° coverage.Modes include SAR (Synthetic

Feb 2007

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153 The growth of aircraft manufacturing in low-wage economies 2005-2009

Aperture Radar), ISAR (Inverted SAR)and GMTI (Ground Moving TargetIndicator).

AgustaWestland

Wescam/L-3Communications

OntarioCanada

Electro-Optical LaserDesignatorsystem.System

AgustaWestlandAW159

L-3 Communications/Wescam hasbeen selected to provide 56 MX®-15Di turrets as the Electro-OpticalLaser Designator system. Systemdeliveries are slated to begin late in2009 and will continue through 2014.

Mar 2007

US NavalAir SystemsCommand

Rolls-Royce Indiana,Indianopolis,USA

Engines Bell BoeingV22

$700million

The contract is for the production of370 AE 1107C-Liberty engines for theUS Marine Corps’ MV-22 and the USAir Force’s CV-22 Osprey. Theproduction agreement includesengines for 148 aircraft plus 74spares, for deliveries going forward to2013. The AE 1107C engine is part ofthe “common core” AE engine lineproduced by Rolls-Royce, andprovides more than 6,000 shafthorsepower. The engines are fittedwith Full-Authority Digital ElectronicControl (FADEC) supplied by Goodrich(formerly TRW/Lucas).

Sep 2007

US NavalAir SystemsCommand

Boeing St Louis,Missouri, USA

Hydraulicautomatictest system

Bell BoeingV-22

$15millionplus

VHATS provides advanced dynamictesting for servo-cylinder linear androtational actuators as well as otheraircraft hydraulic components.

Jan 2007

BellHelicopterTextron

SagemAvionics

Dallas, Texas,USA

Displaysystem

Bell206/407

Sagem Avionics developed apartnership with ACROHELIPROGlobal Services to install the SAGEMICDS - “Integrated Cockpit DisplaySystem” for the Bell 206.

Mar 2007

BellHelicopterTextron

EFW Fort Worth,Texas, USA

Helmetdisplay andtrackingsystem; datatransfersystem (DTS)

Bell ARH-70A

The Helmet Display and TrackingSystem (HDTS) provides pilots withhelmet mounted night vision, flightdata, and weapons targetinginformation. The DTS interfaces withthe ARH communications, navigation,aircraft survivability equipment andmission equipment subsystems toautomate the mission data inputprocess and record a variety ofmission and aircraft informationduring flight.

Jul 2007

Enstrom CheltonFlightSystems

MineralWells, Texas,USA

Electronicflightinstrumentsystems

Enstrom480B

The installation includes two CheltonEFIS displays, 6.0B software, a digitalair data and attitude/headingreference system, (ADAHRS), alongwith Chelton’s Beta 3 GPS/WAAS(Wide Area Augmentation System)receiver. The system also features asynthetic vision primary flight display,dual integrated FMS, Class-B (or –Acapable) helicopter TAWS (TerrainAwareness and Warning System), amaster caution voice warning system,HITS (Highway-In-The-Sky navigation),a digital flight recorder, and Chelton’sunique hover vector display.

Feb 2007

USDepartment ofDefense –US Army

Boeing Mesa,Arizona, USA

Finalassembly,structures

Boeing AH-64DApache

$1.149billion

Boeing’s contract is for theremanufacture of 96 AH-64D ApacheLongbow helicopters for the US Armyand 30 AH-64Ds for the United ArabEmirates. Work began in March 2006following the award of a long-leadagreement. The contract brings thetotal number of remanufactured USArmy AH-64D Apache Longbowhelicopters to 597. The U.S. Army has

Jan 2007

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154 The growth of aircraft manufacturing in low-wage economies 2005-2009

ordered an additional 27 new-buildApaches as war-replacement aircraft.The US Army Apache Longbowaircraft, to be built in the Block IIconfiguration, are in addition to the501 remanufactured AH-64D ApacheLongbows built between 1997 and2006 under two five-year, multi-yearcontracts. Under a foreign militarysales agreement, the United ArabEmirates is upgrading its fleet of AH-64A Apache helicopters to the next-generation configuration. Meanwhilein July 2005, the US Army awardedBoeing a development contract forBlock III improvements, to enterservice from 2011. The Block IIIversion incorporates increaseddigitisation, a joint tactical radiosystem, enhanced engines and drivesystems, capability to control UAVsand new composite rotor blade. Thedevelopment and demonstration(SDD) contract was awarded toBoeing in July 2006 and the first flightof the Block III Apache was in July2008.

Sikorsky GeneralElectric

Lynn,Massachusetts, USA

Engines SikorskyCH-53K

The GE38-1B engine uses a similararchitecture to the T700. Threeengines will be installed in the CH-53K. Capable of producing more than7,500-shaft horsepower at sea level,the GE38-1B is based on the GE27technology demonstrator enginecompleted for the U.S. military andT407 turboprop engine developed forthe US Navy. The GE38-1B has a five-stage axial compressor coupled with asingle-stage centrifugal compressor. Ithas a low-emission, annularcombustor, two-stage gas generatorturbine, and three-stage powerturbine. It features a dual-channelFull Authority Digital ElectronicControl system with advanced healthmonitoring functions. Approximately6,000 hours of engine ground testingwill begin in 2009 on the engine.Engine ground testing is a criticalelement in the process to obtainflight clearance and approval forproduction

Jan 2007

Sikorsky AuroraFlightSciences

Clarksburg,West Virginia,USA

Main rotorpylon

SikorskyCH-53K

The Main Rotor Pylon (MRP) is one ofsix major fuselage sections andhouses the CH-53K’s main rotor head,the No. 2 engine and other aircraftsubsystems. Made primarily ofcomposite material, the MRP will befabricated in Clarksburg and shippedto Sikorsky for integration. Main rotorpylon assemblies will initially be builtfor seven test and certificationaircraft (four EngineeringDevelopment Models, one GroundTest Vehicle, one Static Test Articleand one Fatigue Test Article.)

Apr 2007

Sikorsky Sanmina-SCICorporation

San Jose,California,USA

Intercommunicationssystem

SikorskyCH-53K

Jun 2007

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155 The growth of aircraft manufacturing in low-wage economies 2005-2009

Sikorsky SpiritAeroSystems

Wichita,Kansas, USA

Cockpit cabin SikorskyCH-53K

$150millionplus

The seven-year contract is for thesupply of major structuralcomponents under the SystemsDevelopment and Demonstration(SDD) phase of the contract. Spirit willdesign, produce and join thehelicopter’s composite cockpit andcabin. Spirit began work on the SDDphase of the programme in 2007.Under the contract, Spirit will designand produce seven test articles, fourof which will undergo flight testing.

May 2007

Sikorsky EatonCorporation

Irvine,California,USA

Fuel system SikorskyCH-53K

$96millionfor theMarineCorpselementand $160millionwhenforeignsales areincluded

Eaton Corporation is designing,developing and supplying the CH-54K’s integrated fuel system. Duringthe development phase of theprogramme, which runs through2014, Eaton will provide theintegrated fuel system supporthardware for five helicopter shipsetsin addition to a number of systemdevelopment test sets.

Nov 2007

Sikorsky EatonCorporation

Irvine,California,USA

Primaryhydraulicpowergenerationsystem andthe fluidconveyancepackage

SikorskyCH-53K

Morethan$200million

During the development phase of theprogramme, which runs through2014, Eaton will provide supporthardware for 10 aircraft shipsets.

Jul 2007

Sikorsky HamiltonSundstrand

WindsorLocks,ConnecticutUSA

Integratedsecondarypowersystems , fly-by-wirecontrolcomputersand tail-rotoractuators

SikorskyCH-53K

Thisagreement has apotentialvalue ofmorethan$400million.

The integrated secondary powersystems package consists of theenvironmental control system,auxiliary power unit and main enginestart system. The contract includesdesign, development and productionwork. Design and development willbegin immediately with firsthardware deliveries scheduled for2009. The environmental controlsystem and main engine start systemwill be built at Hamilton Sundstrand'sWindsor Locks, Connecticut. facilitywhile the Auxiliary Power Unit will bebuilt at the company's San Diego,California facility. The environmentalcontrol system consists of flight deckand avionics air conditioning, cabinventilation and heating, engine bleedsystem, and supply air for theonboard inert gas generation system.Sikorsky previously awarded HamiltonSundstrand a contract to supply theCH-53K's fly-by-wire flight controlcomputers and primary main and tailrotor actuators.

Sep 2007

Sikorsky GoodrichCorporation

PitstoneGreen, UKandTwinsburg,Ohio, USA

Electricalpower system

SikorskyCH-53K

The contract involves thedevelopment and delivery of acomplete electrical power system forthe aircraft, consisting of generatorsand controls; primary powerdistribution; AC/DC converters;battery; and external power controls.

Jun 2007

Sikorsky Héroux-Devtek

Longueuil,Quebec,

Landing gearand tail

SikorskyCH-53K

Around$95

Under the terms of the agreement,Héroux-Devtek will design, develop,fabricate, assemble, test and deliver

Jun 2007

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156 The growth of aircraft manufacturing in low-wage economies 2005-2009

Canada bumper million the helicopter’s landing gears and tailbumper during the Systems Designand Development (SDD) phase. Thisdevelopment phase of theprogramme includes the productionof landing gears and tail bumperassemblies for eight systems. Theproduction phase of the programme,with the delivery of two systems forthe Low Rate Initial Production phasein 2013 and four systems in 2014, isexpected to lead to 156 deliveries tothe U.S. Marine Corps under currentprogramme expectations.

Sikorsky ChangheAircraftIndustriesCorp

Beijing, China Airframes Sikorsky S-76C++

Changhe Aircraft Industries Corp issupplying S-76 helicopter airframes aspart of a Memorandum ofUnderstanding (MOU) signed June 1,2006, by Sikorsky and China AviationIndustry Corp. II (AVIC II), parentcompany of Changhe. Changhe isbuilding and delivering S-76C++helicopter airframes for Sikorskyalongside those of Aero Vodochody.

Jul 2007

Sikorsky Curtiss-Wright

Roseland,New Jersey,USA

Supplyrecoveryassist secureand traverse(RAST)systemprobes forthe H-92CanadianMaritimeHelicopterProgramme

Sikorsky S-92

$13million

Curtiss-Wright Corporation throughits Motion Control segment receiveda contract from for the supply ofRAST probes to be fitted on 28 of theH-92 helicopters destined for theCanadian Maritime HelicopterProgramme. The contract includes alldesign, development, testing anddelivery of production probes for thecontracted helicopters.The helicopterprobe is required to interface withthe shipboard RAST system providedby Curtiss-Wright under a separatecontract awarded in 2004 to theCanadian Department of NationalDefence.

Mar 2007

GKNAerospace

DucommunAeroStructures

Los Angeles,California,USA

Titaniumerosionshields

Sikorsky UH60M

Thecontractis valuedatapproximately $60million atanticipated buildrates andwill carryonthrough2012.

The long-term agreement is to furnishtitanium erosion shields, whichprovide leading edge protection forboth new and aftermarket main rotorblades to support the Sikorsky UH-60

Nov2007

Value of all 2007 rotorcraft system, structures and component contracts, in the public domain $5875

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $ 3,000

million

PMI Media estimates of total value of 2007 rotorcraft system, structures and component contracts $6,784

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $ 3,600

million

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157 The growth of aircraft manufacturing in low-wage economies 2005-2009

Business jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Bombardier Goodrich Troy, Ohio,USA

Wheels andbrakes

BombardierLearjet 40XR/45 XR

The company is supplying wheelsand carbon brakes as part of thecontract. In addition to theBombardier Learjet 40 and 45,Goodrich wheels and brakes alsocontinue to be the standardequipment for the majority ofBombardier business jets.

Sep 2007

Cessna KeithProducts

AddisonTexas, USA

Vapour cyclecoolingsystem

Cessna, CJ4 The company is part of the Meggittgroup. The system features thecompany’s new brushless DC motortechnology for the compressordrive and the evaporative blowers.

Apr 2007

Cessna MeggittAircraftBrakingSystems

Akron, Ohio,USA

Wheels andbrakes

Cessna CJ4 Cessna selected ABSC’s 8-inch nosewheels, 10-inch main wheels andlong-life steel brakes. A brakelanding guarantee will be offeredby Cessna through both theProAdvantage operating costprogrammes as well as CitationParts Distribution’s comprehensivebrake overhaul and exchangeprogrammes.

Jun 2007

Cirrus L-3Communications

New York,New York,USA

Avionics Cirrus Vision SJ50

The company has customized itsSmartDeck(R) flight controls anddisplay system for the developmentphase of the aircraft.

Sep 2007

Dassault Honeywell Phoenix,Arizona, USA

APU DassaultFalcon 7X

The 36-150[FN] APU has beenspecified .

May2007

Dassault RockwellCollins

Cedar Rapids,

Iowa, USA

iPod QuadStation

Dassault

Falcon 900

The new iPod Solo Station and theiPod Quad Station both offerflexible designs that allowpassengers to charge their iPod andaccess their music and videolibraries through the cabin audiovisual system

Sep 2007

Dassault DucommunAeroStructures Inc

Monrovia,

California,

USA

Winglets Dassault

Falcon

2000

$25 million The programme was won incooperation with Aviation PartnersInc. (API) and with Dassault-Aviation.

Oct 2007

Bombardier Rolls-Royce Virginia, USA Engine Dassault

SMS/5X

The Rolls-Royce RB282-3 is the firstmember of a new two-shaft familyengine, under development by theUK manufacturer at its Dahlewitz,Germany plant, and will bemanufactured and tested in afacility under construction inVirginia.

Jun 2007

Embraer ParkerHannifin

Irvine,

California,

USA

Flight controlsub-systems

Embraer

100/300

Parker Hannifin will supply fourflight control subsystems on thePhenom 300. Parker’s ControlSystems Division will design andproduce the aircraft’s fly-by-wirespoiler system andelectromechanical pitch trim

Sep 2007

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158 The growth of aircraft manufacturing in low-wage economies 2005-2009

system, yaw and roll trimactuation, and flap system, as wellas a centralised electroniccontroller.

Embraer PPG Huntsville,Alabama, USA

Transparencies

Embraer100/300

Accordingto PPGAerospaceexpectedproductionlife is morethan 1,000aircraft,which couldput thevalue of thecontract atmore than$35 million

PPG Aerospace-Transparencies hasbeen awarded a sole-sourcecontract to develop and producecockpit windows for the Phenom100 and 300. The aircraft will beEmbraer's first to be certified withthe PPG Surface Seal rain-repellentcoating as the primary windshieldrain removal system, with nowindshield wipers.

June2007

Embraer Tactair Liverpool,

New York,

USA

Select controlsystems forbrakes,secondaryflight anddoors

Embraer

100/300

Tactair Fluid Controls Inc isproviding select controls for wheelbrake, secondary flight control, anddoor control applications for thePhenom 100/300. On the Phenom100, Tactair will provide theemergency/park brake controlsystem and passenger doordamper. On the Phenom 300,Tactair will provide the landing gearcontrol valves, stick pusheractuator, rudder spring actuatorand passenger door damper.

Jun 2007

IsraeliAircraftIndustries

HindustanAeronauticsLtd

Bangalore Aft fuselages GulfstreamG-150

The contract covers production of200 ship-sets of G-150 fuselages

2007

MeggittAerospace

DoncastersPrecisionForgings

Sheffield,

United

Kingdom

Brake torquetube

Embraer

100/300

According to Doncasters: “Thetorque tube is an essential part ofthe brake which encloses the driveshaft used to absorb the resultanttorque (twisting, turning force)from the shaft. DoncastersPrecision Forgings in Sheffield, UK,will manufacture the torque tubesfrom stainless steel using the site'sfour tonne closed die forginghammer.”

Feb 2007

Gulfstream RockwellCollins

Cedar Rapids,

Iowa, USA

Head upguidancesystem

Gulfstream

450/550

Beginning in 2009, Rockwell Collins'new HGS-6000 Head-Up GuidanceSystem (HGS®) series will befeatured on new aircraft deliveredby Gulfstream Aerospace. The HGS-6000 will be standard equipmenton Gulfstream G450 and G550aircraft, and optional equipment onthe G150, G200, G350 and G500aircraft. The HGS-6000 featuresadvanced active-matrix liquidcrystal display technology andpresents critical flight informationin the pilot's forward field of view.The new digital display will allowthe pilot to see an integrateddisplay of flight information and aninfrared image from Gulfstream'sEnhanced Vision System (EVS) inalmost all weather conditions. TheHGS-6000 is designed to supportemerging technologies such assynthetic vision and surfaceguidance which will further

May

2007

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159 The growth of aircraft manufacturing in low-wage economies 2005-2009

improve safety of operations.

HawkerBeechcraftCorporation (formerlyRaytheonAircraft)

PPG Kennesaw,

Georgia, USA

Sealant tape Hawker

Beechcraft

Premier 1

A polysulfide formed-in-placesealant tape developed by PPGAerospace – PRC-DeSoto has beenapproved for use by HawkerBeechcraft for the wing fairings ofthe aircraft. According to PPG:“Uncured sealant is premixed andfrozen in one-foot preformed stripsthat are thawed prior toapplication. The strips thaw in fiveminutes to puttylike consistencyand cure in four hours to a highlyfuel-resistant elastomer.”

Jun 2007

HondaAircraftCompany

HondaAircraftCompany

Greensboro,

North

Carolina, USA

Finalassembly

HondaJet The 215,000 square footheadquarters will be the center ofall activity related to HondaJet,including type certification, allsales, marketing and servicesupport activity, and continuedresearch and developmentactivities. The HACI productionfacility will handle production ofHondaJet, including final assemblyof all structural components andparts, aircraft system assembly andinstallation, completion of theinterior, and painting.

Feb 2007

HondaAircraftCompany

HampsonIndustries

Grand Prairie,

Texas, USA

Completeempennagestructuralsub-assembly

HondaJet Oct 2007

HondaAircraftCompany

GKN Tallassee,

Alabama, USA

Fuselage sub-assembly

HondaJet Mar 2007

HondaAircraftCompany

GarminInternational

Avionics HondaJet Mar 2007

HondaAircraftCompany

Avcorp Delta, British

Columbia,

Canada

Wingstructuralcomponent

HondaJet Mar 2007

Value of all 2007 business jet system, structures and component contracts, in the public domain $370

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2007 business jet system, structures and component contracts $1,598

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $700

million

2008

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160 The growth of aircraft manufacturing in low-wage economies 2005-2009

Airliners

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Airbus GoodrichInteriors'

ColoradoSprings,Colorado,USA

Cabinattendant seats

AirbusA318/A319/A319CJ/A320/A321

The award isexpected togenerate$100 millionin revenue tosupport newproductionaircraft,retrofit salesand sparesover the lifeof theprogramme

With this new contract, Goodrich cabinattendant seats are featured on theentire family of Airbus aircraft includingthe A300, A330, A340 and A380.

Feb 2008

Airbus ZKMForging

Stalowa,Poland

Airframecomponents

AirbusA318/A319/A319CJ/A320/A321

Feb 2008

Airbus Honeywell Phoenix,Arizona,USA

Weatherradar

AirbusA330/A340

Contract,includingdeliveries tothe A320programmeestimated at$300 million

Honeywell’s IntuVue 3-D AdvancedWeather Radar is being supplied toA320s, A330s and A340s, giving flightcrews the ability to detect and avoidpreviously unforeseen turbulence, windshears and dangerous storm activity sothey can make more informed routedecisions. Honeywell’s IntuVue weatherradar is already standard equipment onAirbus A380 and A350 as part of theAircraft Environment Surveillance System.Deliveries are planned to start with thesingle aisle A320 family (A318, 319, A320,and A321) in the first quarter of 2010with the long range A330s and A340s,including freighters, shortly thereafter.

Sep 2008

Airbus Spirit AeroSystems

Kinston,NorthCarolina,USA

Prestwick,UK

Wingleadingedge

AirbusA319,A320, A321

$1.7 billion Trailing edges and other wing structures Jul 2008

Airbus Spirit AeroSystems

Kinston,NorthCarolina,USA

Wichita,Kansas,USA

KualaLumpur,Malaysia

Fuselagesection15

AirbusA350 XWB

The section 15 centre fuselage framesection is a composite structureapproximately 65ft long, 20 ft wide, itweighs nearly 9000 lb. The company willbuild a new facility in Lenoir County,North Carolina. It will initially employ 500people, with plans to grow to 1,000 whenall phases of development are complete.The new plant should be ready by 2010.Portions of A350 XWB work will also takeplace in the company’ s Wichita plant andthe Spirit factory in Malaysia. Thecompany is also building the compositefront spar at Kinston; composite sub-assemblies will be made in Malaysia.

May 2008

Airbus Spirit AeroSystems

Prestwick,UK

Wingleadingedge

AirbusA350 XWB

The leading edge will be 32m long andabout 50% carbon-fibre reinforcedmaterial.

Jul 2008

Airbus HamiltonSundstrand

Rockford,Illinois, USA

Phoenix,

Electricalpowergeneration

AirbusA350 XWB

HamiltonSundstrandestimatestotal

Hamilton Sundstrand's A350 XWB electricpower generation system (EPGS)comprises four 100 kVA, 230-volt variablefrequency generators and four generator

Feb 2008

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161 The growth of aircraft manufacturing in low-wage economies 2005-2009

Arizona,USA

Puerto Ricoand theRepublic ofSingapore.

programmerevenue ofapproximately $1 billion.

control units. The EPGS will be designedin Rockford, Illinois, and manufactured atvarious Hamilton Sundstrand plants,including those in Rockford, Phoenix,Arizona, Puerto Rico and the Republic ofSingapore.

Airbus HarbinAircraftIndustryGroup

Harbin,China

Compositematerialparts andcomponents.

AirbusA350 XWB

The two companies are establishing amanufacturing centre, which will be setup in early 2009, will be an equity jointventure enterprise, with HAIG holding 80per cent stake and Airbus China owning20 per cent stake. According to thecontract, the manufacturing centre willmanufacture composite materials partsand components for the Airbus A320family and participate in theindustrialisation and serial production ofAirbus A350 XWB work-packages.

Jul 2008

Airbus HexcelCorporation

Stamford,Connecticut, USA

Carbonfibrecompositematerials

AirbusA350 XWB

Hexcelexpects theaward togeneraterevenues of$4-5 billionover the lifeof thecontract.

The award covers the entire family ofA350 XWB aircraft through 2025. Hexcelis supplying a “HexPly” toughened epoxyprepreg made with Hexcel’s HexTowintermediate modulus carbon fiber. Thematerials and their components will bemanufactured at Hexcel facilities in theUS, France, Spain, Germany and the UK.

Jul 2008

Airbus SagemDefenseSecurite

Paris,France

Flightdataacquisition andsecuritysystem

AirbusA350 XWB

Sagem Defense Securite will develop,produce, integrate and provide supportfor the system, which will consist of twocomponents: the Centralized DataAcquisition Unit (CDAU), which acquires,processes, monitors, displays and recordsdata available on the aircraft to monitorsystems and provide maintenance andflight safety; the Secure CommunicationInterface (SCI), which will provide thesecure link between the aircraft's avionicscore and the open information.

Jul 2008

Airbus MeggittSafetySystems

Simi Valley,California,USA

Fireprotectionsystems

AirbusA350 XWB

Jul 2008

Airbus Goodrich Troy, Ohio,USA

Wheelsandbrakes

AirbusA350 XWB

The selectionis expected togeneratemore than $3billion inrevenue overthe life of theprogramme.

The brakes will incorporate Goodrich'sDURACARB(R) carbon heat sink material.

Dec 2008

Airbus GoodrichSensors andIntegratedSystems

Burnsville,Minnesota,USA

Air dataand icedetectionsystems

AirbusA350 XWB

The awardsare expectedto generatemore than$600 millionin originalequipmentandaftermarketrevenue over20 years

The ADS provides all critical air dataparameters to the vehicle managementcomputers for the aircraft's flight controland pilot display systems. Goodrich’sSmartProbe(TM) and SmartPort(R) airdata sensing technology allowsintegration of multi-function sensingports, pressure sensors and processingcapability through the elimination ofpneumatic lines. The ice detection systemprovides advisory indication of ice buildupand enables the flight crew to activatethe aircraft's ice protection system at theoptimal time. The system helps reducefuel consumption by activating theenergy-consuming de-ice function only

Sep 2008

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162 The growth of aircraft manufacturing in low-wage economies 2005-2009

when required.

Airbus HamiltonSundstrand

Connecticut, USA

Ram airturbine

AirbusA350 XWB

HamiltonSundstrandestimatestotal A350XWB Ram AirTurbine (RAT)systemrevenues inexcess of$500 millionover the lifeof the multi-yearprogramme.

Sep 2008

Airbus Sirio Panel Levanella,Italy

ICP andcockpitlighting

AirbusA350 XWB

$100 million SELEX Communications subsidiary SirioPanel, has signed two contracts withAirbus, to develop and supply avionicsinterface control units and manufacturethe cockpit lighting system for the AirbusA350 XWB. Sirio Panel will develop thepilot/system interface of the IntegratedControl Panel and the cockpit illuminationsystem (Cockpit General Illumination).The order covers 12 control panels, 15 upfront control panels using LEDtechnology, and dimming units. Thecockpit illumination system, comprising22 lights with an option for a further 18,allows the pilot to illuminate specificareas, such as maps or other units. Thelight intensity can be varied using thedimmers.

Feb 2008

Airbus Saft Paris,France

Batteries AirbusA350 XWB

Around Euro200 millionover the next25 years

Lithium-ion battery systems have beenspecified

Mar 2008

Airbus Thales Paris,France

Electricalpowerconversion system,integratedmodularavionicssuite

AirbusA350 XWB

These twoselections areexpected togenerate upto 2 billioneuros inrevenues overthe first 20years of in-service life forthe aircraft.

The system converts electricity fromdifferent sources into the appropriatestandard voltage required by variousapplications. Its electrical network willinclude several electrical standardsranging from direct current (DC) tovariable frequency alternating current(AC). The company was selected at thebeginning of 2008 for the IntegratedModular Avionics suite, the InteractiveControl and Display Systems and the AirData and Inertial reference unit for theThales has made a significant investmentto support its A350 bids, with the creationin Toulouse and Bordeaux of simulationand prototyping demonstrators and tools,such as the Airlab technico-operationallaboratory and the iDeck simulator.

Mar 2008

Airbus Thales andDiehl

Paris,France

Commonremotedataconcentrators(cRDC)

AirbusA350 XWB

The common remote data concentrators(cRDC) and core processing input/outputmodules (CPIOM), serve as the two mainbuilding blocks within the IntegratedModular Avionics (IMA) suite. Thedevelopment and production of thecRDCs will be carried out by DiehlAerospace, the Joint Venture Companyformed by Thales and Diehl in 2000.ThecRDC is an avionics unit generally installedoutside of the avionics bays.

Mar 2008

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163 The growth of aircraft manufacturing in low-wage economies 2005-2009

Airbus RockwellCollins

CedarRapids,Iowa, USA

Datamanagement andnavigation system

AirbusA350 XWB

RockwellCollinsexpects thepotentialvalue of theentireprogramme tobe $2.5billion.

Jul 2008

Airbus RockwellCollins

CedarRapids,Iowa, USA

Communicationsequipment

AirbusA350 XWB

Awards include the fully integratedCommunication Global Work package,the Avionics Data Network, and landingsystems. These awards come in additionto Airbus' previous selection ofRockwell Collins' trimmable horizontalstabilizer actuator (THSA).

Apr 2008

Airbus ParkerAerospace

Irvine,California,USA

Smithtown,New York,USA

Amsterdam, TheNetherlands

Elyria,Ohio, USA

Fuelsystem

AirbusA350 XWB

The contractwill generatemore thanUS$1 billionover the lifeof theprogrammefor Parker

The fuel system contract is the result ofa collaborative effort by Parker’s Air &Fuel, Electronic Systems, and NicholsAirborne Divisions and Parker’s FuelSystems team. The companies willprovide the entire fuel systemequipment package, including theinerting system, fuel measurement andmanagement system, fluid mechanicalequipment, and engine feed andtransfer fuel pumps. Parker’s Air & FuelDivision in Irvine, California, will providethe fuel tank inerting system. Parker’sElectronic Systems Division inSmithtown, New York, will provide thefuel measurement system.The fluidmechanical equipment provided by theAir & Fuel Division and the engine feedand transfer fuel pumps provided bythe Nichols Airborne Division in Elyria,Ohio, are new product wins for Parkeron Airbus aircraft.

Jan 2008

Airbus ParkerAerospace

Kalamazoo,Michigan,USA

Hydraulicsystem

AirbusA350 XWB

The contractwillgenerateover US$1billion forParker overthe life oftheprogramme

This work comprises seven individualwork packages including pumps,reservoirs, manifolds, accumulators,thermal control, isolation, andsoftware. Together these productsprovide the hydraulic system functionsnecessary to power and control theaircraft.

Jan 2008

Airbus B/EAerospace

Wellington,Florida,USA

Passenger andcrewoxygensystems

AirbusA350 XWB

The award isinitially valuedat more than$125 million.

The systems will include B/E Aerospace’sPulse™ system as well as chemical oxygengeneration .

Jan 2008

Airbus B/EAerospace

Wellington,Florida,USA

Galleysystems

AirbusA350 XWB

B/EAerospacevalues theaward atmore than$1.0 billion.

Programme deliveries for the A350 XWBwill commence in 2013. The A350 XWBwill be equipped with a galley systemdesigned to accommodate the aircraft's"flex zones", which allows the airlines toselect from a wide range of pre-engineered galley configurations.

Oct 2008

RockwellCollins

Cobham Wimbourne, UK

Radioandaudiointegratedmanage

AirbusA350 XWB

Over the lifeof thecontract thebusiness isanticipated tobe worth

The RAIMS enables aircrew to controlmany of the aircraft's communications,navigation and data-link systems througha single integrated interface.

Aug 2008

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164 The growth of aircraft manufacturing in low-wage economies 2005-2009

mentsystem(RAIMS)

US$200million includingaftermarketsupport.

Rolls-Royce Hispano-Suiza

Colombes,France

Accessory gearboxfor theTrentXWB

AirbusA350 XWB

Hispano-Suiza will supply a completeaccessory gearbox package, including theaccessory gearbox and its transfergearbox, angle drive shaft, step asidegearbox, radial drive shaft, complete oiltank assembly and high pressure andradial drive shaft bevel gears.

July 2008

Nord Micro CTTEnvironmental Systems

Nyköping,Sweden

Environmentalsystemcomponents

AirbusA350 XWB

CTT is developing and delivering for Nord-Micro its zonal drying system andhumidifiers for the Airbus A350 XWBprogramme. Nord-Micro will in turnsupply the systems to Honeywell, a “tier-one” supplier and turnkey systemsintegrator to Airbus. The CTT-developedCair system will be offered by Airbus asan option for cabin-section, flight-deckand crew-rest humidification.The systemwill also be available for executiveversions of the aircraft.

Dec 2008

Boeing Vibro-Meter

Fribourg,Switzerland

Vibrationmonitor

Boeing737-600,-700,-800,-900

The company is providing its AdvancedAirborne Vibration Monitor (AAVM) on allnew Boeing 737 NG aircraft. The AAVM isa Boeing, CFM International and Vibro-Meter venture. AAVM data can bedownloaded via ACARS or byinterrogation of the AAVM front panel.

Aug 2008

STAerospaceSystems

Honeywell Phoenix,Arizona,USA

Mechanical partpieces

Boeing737-600, -700,-800,-900,Boeing747-8

Theagreement ispotentiallyworth $30million forpartspurchasedand coversdeliveries toBoeing 737,747 and 767types

The agreement is for five years.Oct 2008

Boeing Kaman Jacksonville, Florida,USA

Structures

Boeing767-200/-300/-400ER

At the start of 2008 the company’sAerostructures Division signed a seven-year follow-on contract with The BoeingCompany for the production of wing fixedtrailing edge assemblies on the Boeing777 and 767 aircraft. The agreement callsfor Kaman to supply components for allconfigurations of the 777 and 767 at theBoeing annual production rates.

Jan 2008

STAerospaceSystems

Honeywell Phoenix,Arizona,USA

Mechanical partpieces

Boeing 767 Theagreement ispotentiallyworth $30million forpartspurchasedand coversdeliveries toBoeing 737,747 and 767types

The agreement is for five years.Oct 2008

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165 The growth of aircraft manufacturing in low-wage economies 2005-2009

Boeing AsianCompositeManufacturing Sdn Bhd(ACM)

KualaLumpur,Malaysia

Machinedhoneycomb core

Boeing 777– all types

Nov 2008

Boeing Kaman Jacksonville, Florida,USA

Structures

Boeing 777– all types

Kaman won its first contract to build wingstructures for the Boeing 777 in 1991. Atthe start of 2008 the company’sAerostructures Division signed a seven-year follow-on contract with The BoeingCompany for the production of wing fixedtrailing edge assemblies on the Boeing777 and 767 aircraft. The agreement callsfor Kaman to supply components for allconfigurations of the 777 and 767 at theBoeing annual production rates.

Jan 2008

Boeing HoneywellAerospace

Phoenix,Arizona,USA

Cargo baylighting

Boeing 787 Lower lobe cargo lights Jun 2008

Saab Curtiss-Wright

Shelby,NorthCarolina,USA

Cargo dooractuationsystem

Boeing 787 Over $16million

The company is providing the large cargodoor mechanical actuation system for thenew Boeing 787. The mechanical systemis comprised of five major flight-criticalsub-assemblies, including the lift, pull-in,latching, locking and vent systems for theB787 large cargo doors. Curtiss-Wrightwill manufacture these components at itsMotion Control facility located in Shelby,North Carolina.

Feb 2008

Saab Curtiss-Wright

Shelby,NorthCarolina,USA

Cargo doormechanicalsystem

Boeing 787 Over $80million

The company is providing the mechanicalsystem and structural fittings for theBoeing 787 large cargo door. Sales fromthis and other contracts have thepotential to exceed $200 million duringthe production life of the aircraft toCurtiss-Wright. The mechanical systemcomprises the mechanical parts for fivemajor flight-critical sub-systems - the lift,pull-in, latching, locking and vent systems.

Sep 2008

Bombardier ParkerAerospace

Irvine,California, USA

Fuel system BombardierC Series

Hydraulicsand fuelsystemcontractsexpected togenerateapproximately$1.2 billion inrevenues

Product design and manufacture will becompleted by Parker's Air & Fuel Division,Electronic Systems, and Nichols AirborneDivisions. According to Parker the fluidmechanical equipment includes thecontrol valves for fuel and emergencyshutoff, isolation, and venting of air inand out of the aircraft fuel tanks.

Sep 2008

Bombardier ParkerAerospace

Thehydraulic systemwill bedesigned andmanufactured byParker'sHydraulicSystemsDivisioninKalamazoo,Michiga

Hydraulicsystem

BombardierC Series

This is the Parker Hydraulic SystemsDivision's fifth major hydraulic systemplatform to be jointly developed withBombardier Aerospace. Major systemhardware elements include engine-drivenpumps, VFAC-motor- driven pumps, apower transfer unit, reservoirs,accumulators, and filtration. Additionally,Parker will provide ancillary equipment,including heat exchangers, varioussensors, valves, and quick-disconnectcouplings.

Sep 2008

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166 The growth of aircraft manufacturing in low-wage economies 2005-2009

n

Bombardier ParkerAerospace

Cleveland, Ohio,USA

Fly-by-wirecontrolsystems

BombardierCSeries

Parkerestimates thatthis has thepotential togeneraterevenues ofUS $3.5 billionover the lifeof theprogrammes.

The company has been named as theexclusive supplier for a period of tenyears of fly-by-wire flight control systemsfor all new Bombardier widebody aircraftprogrammes. Parker Aerospace willdevelop a fly-by-wire system from stick tosurface, that will then be customized andmanufactured for each aircraftprogramme, starting with the CSeries.The company will also supply fuel tankinerting and fully integrated fuel andhydraulic systems.

Jul 2008

Bombardier Bombardier Seecomment

Assembly BombardierCSeries

Montreal Mirabel is the final assemblylocation; the manufacture of the aircraft’saft fuselage and cockpit will take place atthe Saint-Laurent facility. Bombardier’sBelfast facility will be home to the designand manufacture of the aircraft wings.

Jul 2008

Bombardier RockwellCollins

CedarRapids,Iowa,USA

Avionics BombardierCSeries

The company is supplying its Pro LineFusion™ integrated avionics to theaircraft programme. The Pro Line Fusionintegrated flight deck features high-resolution, 15-inch diagonal LCD displayscapable of enhanced and synthetic vision.Rockwell Collins will also providecommunication, navigation, surveillance,engine indication and crew alertingsystem (EICAS), and aircraft maintenancesystems. The flight management system isintegrated with aircraft performancecharacteristics and features graphicalflight planning, as well as WAAS/LPV andRNP SAAAR capabilities.

Jul 2008

Bombardier ShenyangAircraftCorporation

Shenyang, China

Seecomment

BombardierCSeries

SAC is a risk sharing partner in the design,manufacturing, assembling and testing ofthe aircraft’s fuselage. The contractfollows a June 2007 memorandum ofunderstanding on the CSeries. Just over10 per cent of the CSeries aircraft will bemanufactured in China by ShenyangAircraft Corporation. Shenyang alsosupplies the empennage, as well as theaft and forward fuselage sections forBombardier's Q400 turboprop airliner.

Jul 2008

Bombardier C&D Zodiac HuntingtonBeach,California, USA

Interiors BombardierCSeries

The interior contract includes the seats,interiors (including the linings,monuments, bins, galleys and lavatories),oxygen system, lighting system, insulationsystem, waste system and the watersystem.

Jul 2008

Bombardier LiebherrAerospace

Toulouse,France

Airmanagement system

BombardierCSeries

The contract includes the environmentalcontrol and cabin pressure controlsystem.

Jul 2008

Embraer Daher Orlytech, Paris,France

Sub-assemblies

Embraer170-175/190-195

The renewable five year contracts startedin May 2008 and are for composite-basedsub-assemblies.

Mar 2008

MitsubishiAircraft

MitsubishiAircraftCorp

Nagoya,Japan

Seecomment

MitsubishiMRJ70/90

Mitsubishi Heavy Industries launchedthe Mitsubishi Regional Jet (MRJ) onMarch 28 2008. Mitsubishi Aircraftcounts as minority partners Toyota,Mitsubishi Corp., Mitsui & Company,

Mar2008

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Sumitomo Corp., Tokyo Marine Nichido,JGC Corp, Mitsubishi Electric, MitsubishiRayon and the Development Bank ofJapan. Majority shareholder MitsubishiHeavy Industries controls 64 percent ofthe company. MHI's Nagoya AerospaceSystems Works will manufacture boththe prototype aircraft and productionmodels; it will also be in charge of theMRJ's flight testing. MHI plans to furnishroughly two-thirds of the fundingcapital for the programme. Mitsubishimakes composite parts for the tail unitwithout an autoclave but using theadvanced vacuum-assisted resintransfer molding (A-VARTM) process.

MitsubishiAircraft

SpiritAeroSystems

Wichita,Kansas,USA

Enginepylon

MitsubishiMRJ70/90

The contract is Spirit's first regional jetmarket order.

Oct 2008

MitsubishiAircraft

HamiltonSundstrand

Illinois,USA

Electricalpowersystem, airmanagement system,auxiliarypower unit,inert gassystem,high liftactuationsystem, andfire andoverheatprotectionsystem

MitsubishiMRJ70/90

Mar 2008

MitsubishiAircraft

RockwellCollins

CedarRapids,Iowa,USA

Flightcontrolsystem,avionics

MitsubishiMRJ70/90

Rockwell Collins will provide theprimary flight control computer (PFCC)while Nabtesco (see below) will providethe flight control actuators.

Mar 2008

MitsubishiAircraft

NabtescoCorporation

Tokyo,Japan

Flightcontrolsystem

MitsubishiMRJ70/90

Mar 2008

MitsubishiAircraft

SumitomoPrecisionProducts

Hyogo,Japan

Landinggear

MitsubishiMRJ70/90

A revenue sharing partner Mar 2008

Pratt &Whitney

Goodrich ChulaVista,California, USA

Nacelles MitsubishiMRJ70/90

The award isexpected togeneratemore than $5billion inoriginalequipmentandaftermarketrevenue forGoodrichduring the25-yearperiodfollowingentry intoservice.

Goodrich is the exclusive provider of thecomplete nacelle systems for theGeared Turbofan engine for both theMitsubishi Regional Jet (MRJ) and theBombardier CSeries aircraft families.Under the agreement, the GoodrichAerostructures business unit, willproduce the entire nacelle systems,including the inlet, fan cowl, thrustreverser, exhaust system, and enginemounts.

Apr 2008

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Value of all 2008 airliner system, structures and component contracts, in the public domain $29,631

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2006 airliner system, structures and component contracts $ 39,223

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $3,720

million

Military transports

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

STAerospaceSystems

Honeywell Phoenix,Arizona, USA

Mechanicalpart pieces

Boeing 767tanker

Theagreement ispotentially worth$30millionfor partspurchased andcoversdeliveriesto Boeing737, 747and 767types

The agreement is for five years.Oct 2008

LockheedMartin

GKNAerospace

Cowes, UK Nacelle andother systems

C-130J $800million

GKN Aerospace has gained a followon contract from Lockheed Martin tosupply the integrated nacelle for theC-130J aircraft. This is a five year,$400 million contract. GKN Aerospacehas been the sole source provider ofthe integrated nacelle for the C-130Jsince it’s inception in 1993. The newcontract runs from Jan 2009 untilDecember 2013. First deliveries willtake place in January 2009 and GKNAerospace anticipates deliveringnacelles at a rate of around 10 permonth until the end of 2013. The C-130J integrated nacelle includes theengine mounting structure, lowerpan, scoop, doors and air inlet andalso contains all the associated fluidsystems including bleed air ducting,fuel, hydraulic and anti-ice systems.GKN Aerospace delivers the nacellefully assembled with a majority ofthese systems installed. LockheedMartin then installs the engine andfinishes the systems integration.Collectively, the UK industrial team isknown as the UK C-130J IndustrialSupport Group and includescompanies such as Rolls-Royce(engines), GKN (engine nacelles),

Apr 2008

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Goodrich (digital engine controls) andGeneral Electric (formerly SmithsAerospace), including DowtyPropellers (power generation anddistribution propellers). Over £740Min C-130J-related business has beenplaced directly with LockheedMartin’s British industrial partnersand suppliers to date.

LockheedMartin

Elbit Haifa, Israel Global digitalmap

C-130J Jul 2008

LockheedMartin

CMCCanada

Montreal,Quebec,Canada

Portablemissiondisplay, GPSlandingsystem

C-130J Jul 2008

LockheedMartin

L-3 New York,New York,USA

Specialmissiondisplayprocessor

C-130J Jul 2008

LockheedMartin

GeneralElectric

Michigan,USA

Communications,navigationandidentificationsystem

C-130J $30million

The contract is for more than 230 CNIopen architecture systems.

Jul 2008

Value of all 2008 military transport system, structures and component contracts, in the public domain $860

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2007 military transport system, structures and component

contracts

$890

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Military fast jets

Contractor Supplier Supplierlocation

Workpackage

Aircraft type Contractvalue

Contract details Contractdate

Raytheon DucommunTechnologies (DTI)

Themanufactureand sub-systemintegrationwork will beperformed atDTI's Phoenix,ArizonaIntegratedElectrical Sub-Assemblycenter ofexcellence.

Thecontract isfor themanufacture and sub-systemintegrationof radarracks andelectromechanicalenclosuresfor theactiveelectronically scannedarray radarsystem

Boeing F/A-18 E/F

Themulti-yearagreement isworthmorethan$102million

The racks and enclosures are for theAPG-79 radar used on the F/A-18 E/Fand the Radar ModernizationProgramme (RMP) for the F- 15Eaircraft. This agreement is for theperiod of performance through 2020.

Dec 2008

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NorthropGrumman

EllanefManufacturing

Corona, NewYork, USA

Structuralcomponents featuringtitaniumassemblies

Boeing F/A-18 E/F

$13million

A Magellan company. Feb 2008

LockheedMartin/NorthropGrumman/JSFprogramme office

Alenia Cameri, Italy Finalassemblyand check-out facility

LockheedMartin F-35Joint StrikeFighter

Cameri has been chosen by thegovernment to set up a final assemblyline producing two F-35s a month andmanaged by Alenia Aeronautica. Thesite will employ 500 people andproduction is due to run from 2011 to2022.

Dec 2008

LockheedMartin/NorthropGrumman/JSFprogramme office

Pratt &Whitney

East Hartford,ConnecticutUSA

F135engineproduction

LockheedMartin F-35Joint StrikeFighter

$78million

The low rate initial production (LRIP)contract covers F135 long leadmaterial for seven conventional take-off and landing (CTOL) and sevenshort-takeoff/vertical-landing (STOVL)F-35 aircraft. This award is one in aseries of milestones for the F135engine programme, includingexceeding 10,000 ground test hoursas part of the system developmentand demonstration programme;logging 59 successful flight tests andmore than 75 flight test hours of theF135-powered CTOL F-35 aircraft; andcompleting 14 flights of the F-35Bpowered by Pratt & Whitney's F135STOVL propulsion system.

Oct 2008

LockheedMartin

Stork/Fokker Elmo

Wonsdrecht,TheNetherlands

Wiringharnesses

LockheedMartin F-35Joint StrikeFighter

Potentialvalue $2billion

Under the terms of the agreement,Fokker Elmo will provide productioncapabilities, support and sustainingengineering during the aircraft's LowRate Initial Production Phase. Bothcompanies will also investigate waysto jointly support the Full RateProduction phase of the F-35programme. This agreementrepresents the largest Dutchindustrial cooperation agreement todate on the programme. LockheedMartin and Fokker Elmo are workingon a Total Integrated Wiring System(TIWS) solution which includes wiringmanagement, configurationmanagement, procurement andlogistics, product support, set-up andmanagement of all wiring production,and manufacturing of complex wiringharnesses both in the Netherlandsand in the global supply chain,including Fokker Elmo's facility inTurkey.

April 2008

Pratt &Whitney

Rolls-Royce Indianapolis,Indiana, USA

Lift-systems

LockheedMartin F-35Joint StrikeFighter

$131million

The contract covers the supply of liftsystems for the first six Short Take-Off and Vertical Landing (STOVL)variant F-35B. The Rolls-RoyceLiftSystem(r) comprises a lift fan, rollposts and three bearing swivelmodule. Rolls-Royce will providethese through the propulsion systemprime contractor Pratt & Whitney.Thescope of the contract also includesspare hardware, productioninvestment and sustainmentplanning. Orders for the LiftSystemare expected to total over 600, withleading customers including the US

Dec 2008

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Marine Corps, The UK Armed Forcesand the Italian Navy. The F-35Bvariant is expected to remain inservice well after 2050.

Value of all 2008 military fast jet system, structures and component contracts, in the public domain $2,324

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2008 fast jet system, structures and component contracts $3,224

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Rotorcraft

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

AgustaWestland

Oboronprom

Moscow,Russia

Finalassembly

AgustaWestland AW139

The two companies agreed on a jointventure for the assembly of AW 139helicopters in Russia.

Jul 2008

AgustaWestland

MeggittAircraftBrakingSystems

Coventry, UK Differentialbrake controlsystem

AgustaWestlandAW159

This latest contract follows on fromthe award of the original contract inMarch 2007 for the wheels andbrakes for the AW159 platform.

Dec 2008

Bell Boeing GeneralElectric

Cheltenham,Wolverhampton UK,Maryland,Michigan,Florida,California,Ohio, Illinoisand New YorkUSA

Primary flightcontrols andactuationsystems,voice anddatarecorders,standbyaltitudeindicator andthe standbyflight display

Bell BoeingV-22

$190million

The contract is for an integratedsystems and equipment package for167 V-22s, 141 MV-22s and 26 CV-22s. Deliveries starting in 2009.

Jul 2008

BoeingIntegratedDefenseSystems

HamiltonSundstrand

WindsorLocks, USA

Constantfrequencyelectricalsystems

Bell BoeingV-22

$90million

The contract a follow-onprocurement contract to supplyadditional constant frequency electricsystems, under Lots 12-16 of theprogramme. The five-yearprocurement agreement is for 40-kilovolt-ampere (kVA) constantfrequency generators.

Apr 2008

US Army Boeing St Louis,Missouri, USA

Productioncontract

Boeing CH-47F

$4.7billion

At the start of 2008 11 new CH-47FChinook helicopters were ordered,increasing the number of newChinooks on contract to 59. Aircraftdeliveries under this award will beginin 2011. At the end of August 2008Boeing announced it had won a five-year contract to produce as many as215 modernized F-model Chinookhelicopters with a potential price tagof $4.3 billion.

Aug 2008

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Boeing AgustaWestland

Rome, Italy See comment Boeing CH-47F

The companies have signed anagreement for the joint manufactureof CH-47F helicopters for the ItalianArmy. As prime contractor for theItalian CH-47F, AgustaWestland willbe responsible for design and systemsintegration, and aircraft delivery tothe Italian Army. Boeing RotorcraftSystems will build the fuselage inRidley Park, Pa. The agreement alsoincludes a licensing arrangement thatenables AgustaWestland to market,sell and produce the Boeing CH-47FChinook to the UK, other Europeancountries and several countries in theMediterranean region.

Jul 2008

Boeing Ducommun Gardena,California,USA

Titaniumblade erosioncaps

Boeing CH-47F

$23million

Ducommun AeroStructures wasawarded a long-term agreement tofurnish titanium blade erosion caps,which provide leading edgeprotection for both new and spareblades to support the CH-47 ChinookHelicopter programme. Thecontractwill carry on through 2010.The programme was awarded to DASby Boeing Philadelphia, whichmanufactures new and refurbishedCH-47 Chinook Helicopters for allbranches of the US DefenseDepartment.

Mar 2008

Eurocopter PTDI Jakarta,Indonesia

Localassembly

SuperPumaEC225/2Mark

$42millionover a 10yearperiod

The two companies have signed anagreement to set up a local assemblyline to manufacture airframes forSuper Puma MKII helicopters, withoperations of serial productionstarting in 2011.

Oct 2008

Sikorsky AuroraFlightSciences

Bridgeport,WestVirgnina, USA

Nacelles SikorskyCH-53K

The contract covers nacelles for theCH-53K's number one and threeengines. Made primarily of compositeand titanium materials, the nacellewill be fabricated by Aurora FlightSciences of West Virginia and shippedto Sikorsky for integration into theU.S. Marine Corps helicopter.

Jan2008

Sikorsky OnboardSystemsInternational

Vancouver,Washington,USA

Externalcargo hooksystem

SikorskyCH-53K

Mar 2008

US NavalAviationSystemsCommand

NorthropGrumman

RollingMeadows,Illinois, USA

Radarwarningreceiver

SikorskyCH-53K

$17million

The APR-39BvX radar warningreceiver (RWR) integrationprogramme upgrade is scheduled forcompletion and flight testing in late2009 or early 2010. Under the termsof the phase two contract, NorthropGrumman will incorporate allelectronic warfare (EW) integrationcapabilities of the APR-39Av2 andAPR-39Bv2 versions, creating oneinteroperable version for the CH-53Kfleet.

Feb 2008

Sikorsky EatonCorporation

Irvine,California,USA

Lightedcontrolpanels anddimmingcontrollers

SikorskyCH-53K

$26million

During the development phase of theprogramme, which runs through2014, Eaton will provide the lightedcontrol panel support hardware forfive helicopter shipsets in addition toa number of system developmenttest sets.

Jan 2008

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Sikorsky HamiltonSundstrand

Hartford,Connecticut,USA

Utilitymanagementsystem

SikorskyCH-53K

The UMS includes two differentdigital electronic computers whichmanage air vehicle inputs for key CH-53K helicopter subsystems.HamiltonSundstrand was previously selectedto supply the CH-53K helicopter'ssecondary power systems –consisting of the environmentalcontrol system, auxiliary power unitand main engine start system. Thecompany also was chosen to developthe helicopter's fly-by-wire flightcontrol system, which includes tripleredundant computers, and main andtail rotor actuators.

Jul 2008

Sikorsky GoodrichCorporation

Work will beperformed byGoodrich'sSensors andIntegratedSystems teamin Vergennes,Vt.

IntegratedVehicleHealthManagementSystem(IVHMS)

SikorskyCH-53K

The Goodrich IVHMS will give the USMarines complete health assessmentof the aircraft.

Sep 2008

USDepartment ofDefense

NorthropGrummanCorporation

RollingMeadows,Illinois, USA

DIRCMsystem

SikorskyCH-53D

$13.3million(seecomment)

Northrop Grumman is also supplyingUS Marine Corps CH-46E helicoptersas part of the contract.

Jan 2008

Sikorsky Goodrich Charlotte,Vergennes,Vermont,USA

Health usageandmonitoringsystem

Sikorsky S-76D

The company is supplying itsVigor(TM) Health Usage andManagement System (VHUMS(TM))for the S-76D(TM). The system willmonitor the entire helicoptermechanical drive train from theengines to the rotor system, flightmanual exceedances, and hundredsof aircraft system signals.

Jul 2008

Sikorsky CPIAerostructures

Edgewood,New York,USA

Sponsontrailing edge

Sikorsky S-92

$2million

CPI Aero is providing the trailing edgeof the sponson, a piece of structurethat projects from the side of thehelicopter. Deliveries of these partswill begin in December 2008.

Jul 2008

US Army Goodrich Vergennes,Vermont,USA

VehicleHealthManagementSystems(VHMS)

UH-60A/LBlack Hawk

Contractaward ispotentially valuedat $300millionover lifeof theprogramme

The five-year Indefinite Delivery,Indefinite Quantity (IDIQ) contract isto provide up to 1,000 VHMS units,which monitor the entire helicoptermechanical drive train from theengines to the rotor system, flightmanual irregulatories, and hundredsof aircraft system signals. The systemalso includes a cockpit voice flightdata recorder and crash survivablememory unit. See also below.

Oct 2008

US Navy HarrisCorporation

Melbourne,Florida, USA

Ku-bandCommonData Link(CDL)“Hawklink”system

SikorskyMH-60R

$53million

Hawklink is a high-speed digital datalink that transmits tactical video,radar, acoustic and other sensor datafrom MH-60R helicopters to theirhost surface ships. The CDL Hawklinkprogramme could exceed $350million by 2015 if the Navy exercisesall options to equip as many as 350aircraft and ships, including ArleighBurke-class destroyers andTiconderoga-class cruisers.

Sep 2008

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Sikorsky CPIAerostructures

Edgewood,New York,USA

Penguinmissilelauncherassemblies

S-70B(R)Seahawk(R)

$2.8million

Delivery of these parts will begin inMay 2009. The weaponsmanagement system has an openarchitecture design capable ofintegrating indigenous weapons andmission equipment.

Dec 2008

Value of all 2008 rotorcraft system, structures and component contracts, in the public domain $5,459.1

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $42

million

PMI Media estimates of total value of 2008 rotorcraft system, structures and component contracts $ 6,157

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $160

million

Business jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Bombardier GrobAerospace

Tussenhausen-Mattsies,Germany

All-compositestructure ofthe aircraftand build thefirst threeprototypeaircraft fortheprogramme

BombardierLearjet 85

In September 2008 the companyannounced it had taken overresponsibility for the design andmanufacturing of the structure of itsLearjet 85 business aircraft after itspartner Grob Aerospace AGencountered financial difficulties.Bombardier has effectively terminatedits agreement with the Swisscompany.

Jan 2008

Bombardier Pratt &WhitneyCanada

Longueuil,Quebec,Canada

Engine BombardierLearjet 85

Pratt & Whitney Canada's PW307Bengine has been selected byBombardier Aerospace to power theall-new composite Learjet 85 midsizebusiness jet. The PW307B turbofanengine is rated in the 6,000-pound-thrust class.

May 2008

Bombardier RockwellCollins

Cedar Rapids,Iowa, USA

Avionics BombardierLearjet 85

The all-composite Learjet 85 aircraftwill feature Rockwell Collins' Pro LineFusion TM avionics suite. This is thesecond application of Pro Line Fusionin a Bombardier aircraft platform; theavionics suite was launched as acomponent of Bombardier's GlobalVision flight deck in September 2007.Rockwell Collins is partnered withdesign consultancy firm Design Q onthe programme.

May 2008

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Bombardier Aircelle Plaisir, France Nacelles andthrustreversers

BombardierLearjet 85

The package includes a two-doorthrust reverser system, air inlet,fan cowl doors, associatedequipment and full nacelleintegration.

Jul 2008

Bombardier InnovativePowerSolutions

Eatontown,New Jersey,USA

Startergeneratorsystem

BombardierLearjet 85

The company is supplying a 18KW DCbrushless starter generator system.

May 2008

Bombardier Honeywell Phoenix,Arizona,USA

Cockpitdisplayupgrade

BombardierGlobal5000/Express XRS

Bombardier Aerospace has selectedHoneywell to provide a cockpit displayupgrade for the Global Express jet- theHoneywell DU-875 avionics systemthat includes liquid crystal displays,capabilities to accommodate chartsand maps and XM graphical weather.This cockpit display upgrade isavailable only for Global Expressaircraft equipped with the Primus2000XP flight deck.

May 2008

Cessna LORDCorporation

LORD isproviding theengine andAPU isolationsystem forthe Columbusbusiness jetfrom itsplants in Erie,Pennsylvania,USA andDayton, Ohio,USA

Noise,vibration andisolationtechnologies

CessnaCitationColumbus15

LORD provides a wide variety of NVHsolutions to Cessna includingFluidlastic isolators, Auxiliary PowerUnit (APU) mounts, interior systemsand tuned vibration absorbers.

Oct 2008

Cessna Goodrich Work will beperformed byGoodrich'sSensors andIntegratedSystems teamin Burnsville,Minnesota,USA

Air datasystems andwindshieldheatcontrollers

CessnaCitationColumbus

The selection marks the firstapplication of Goodrich's SmartProbeair data and windshield heat controllertechnology for a Cessna aircraft. TheSmartProbe system provides criticalair data parameters to the aircraft'sflight control, pilot display and othersystems and integrates multi-functionsensing probes, pressure sensors andfull air data measurement processing,allowing the elimination of pneumaticlines.

Oct 2008

Cessna Goodrich Theequipmentwill besupplied fromplants inOakville,OntarioCanada andKrosno,Poland.Goodrich'sAircraftWheels andBrakes team

Fullyintegratedlanding gearsystem

CessnaCitationColumbus

The system includes main and noselanding gear, wheels and carbonbrakes, and electronic control andsteering systems. This is the first fulllanding gear system the company hassupplied to Cessna. Goodrich'sLanding Gear companies will provideoverall system integration, fullydressed main and nose landing gearassemblies, actuation, control andsteering systems and final assembly.Hardware deliveries to support rigtesting are expected by mid 2009.

Aug 2008

15Cessna Columbus since put on hold

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in Troy, Ohiowill supplythe wheels,tires, carbonbrakes, brakecontrol andother relatedbrakingcomponents.

Cessna Pratt &WhitneyCanada

Longueuil,Quebec,Canada

PW810engine

CessnaCitationColumbus

Feb 2008

Cessna RockwellCollins

Cedar Rapids,Iowa, USA

Avionics CessnaCitationColumbus

Pro Line Fusion™ advanced avionicssystem specified. The fully integratedflight deck has four landscape high-resolution 15-inch liquid crystaldisplays with graphical flight planning,synthetic-enhanced vision, autothrottle, MultiScan™ Hazard Detectionsystem and an optional head-updisplay

Feb 2008

Cessna RockwellCollins

Cedar Rapids,Iowa, USA

Head-upguidancesystem

CessnaCitationColumbus

Rockwell Collins is providing its HGS®-6000 Head Up Guidance System; theunit will be the first head up displayever installed on a Cessna Aircraft,according to the company. TheRockwell Collins HGS-6000 series,featuring advanced active-matrixliquid crystal display technology,presents critical flight information inthe pilot's forward field of view.Aircraft flight path and attitudesymbols appear overlaying the outsidescene enhancing situationalawareness, improving energymanagement and increasingtouchdown precision.

May 2008

Cessna SpiritAerosystems

Wichita,Kansas, USA

Fuselage andempennage

CessnaCitationColumbus

Agreements have been signed withSpirit AeroSystems Inc. for thefuselage and Spirit AeroSystemsEurope Ltd. for the empennage. InOctober 2008 AeroSystemsannounced plans to build a 375,000-sq-ft factory to accommodate themanufacturing and testing of theCessna Citation Columbus. The newfactory will provide enough capacityfor the Citation model, as well as foradditional programmes.

Feb 2008

Cessna Vought Nashville,Tennessee,USA

Wing CessnaCitationColumbus

Morethan $1billion

Cessna’s Citation X currently usesupper and lower wing panelassemblies manufactured at Vought’sNashville facility, where the Columbuswing manufacturing also will takeplace. Vought Aircraft Industries isproviding wings and slats and thecontract covers engineering design,tooling and production work.Vought's engineering and tool designwill be done primarily in Dallas.Production work and othermanufacturing engineering will beperformed in Nashville. Productiontest articles are scheduled for deliverybeginning in 2010, with productionarticle deliveries scheduled to start in2011.

May 2008

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Cessna Goodrich Oakville,Ontario,Canada

Landing gear CessnaCitationColumbus

May 2008

Cessna ParkerAerospaceControlSystems

Irvine,California,USA

Flight controlsystem

CessnaCitationColumbus

$400million

The Columbus is the first aircraft inthe Citation family to be equippedwith a hybrid fly-by-wire flight controlsystem developed by Cessna, workingwith conventional hydraulic actuation.The powered flight control systemcontract consists of design andmanufacturing responsibility for theprimary and secondary flight controls,including roll, pitch, and yaw axes,high lift, stabilizer trim, and speedbrake controls.

Mar 2008

Cessna Eaton Cleveland,Ohio, USA

Fuel system CessnaCitationColumbus

The valueof theprogramme toEaton isestimated atapproximately$100millionover 20years

As the system integrator, Eaton willdesign, develop and manufacture thecomplete aircraft fuel systemincluding the electric fuel boostpumps, ejector pumps, flow controlvalves for fuel transfer, therefuel/defuel sub-system and the fuelquantity measurement system.

Jul 2008

Cessna InnovativePowerSolutions

Eatontown,New Jersey,USA

Transformerrectifier units

Cessna CJ4 The TRUs provide 125 Amp, 28Vdcpower from a 115 V AC input withfrequency range down to 200Hz.

Jun 2008

Dassault Nordam Wichita,Kansas, USA

Cabinetry DassaultFalcon 7X

$70million

Nordam will produce up to 22deliverables for each selected aircraft,including galleys, closets, vanities andpocket doors. The programme shouldlast until 2010.

Jul 2008

Diamond MecaerAmerica

Montreal,Quebec,Canada

Nose andmain landinggear

Diamond D-Jet

Mecaer America’s scope of workincludes design, certification testing,manufacturing and after-sale supportof the nose and main landing gear.

May 2008

Diamond MTI Global Mississauga,Ontario,Canada

Thermal andacousticinsulation

Diamond D-Jet

MTI-PolyFab is supplying a thermaland acoustic insulation system. Thecompany supported the developmentof the D-JET aircraft with prototypethermal and acoustic systems, as wellas Environmental Control Systems(ECS) design solutions.

May 2008

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Embraer Embraer Melbourne,Florida, USA

Finalassembly

Embraer100/300

Embraer announced that it plans toinvest an estimated US$ 50 million forthe establishment of a 150,000-square-foot facility to house a finalassembly line, capable of producingboth the Phenom 100 and Phenom300 executive jet models, as well as apaint shop and a delivery andcustomer design center, atMelbourne International Airport, inMelbourne, Florida. Embraer expectsto create approximately 200 skilledpositions by 2011. At the start ofSeptember 2009 Embraer startedconstruction of a 161,000-sq-ft facilityat Evora in Portugal which willmanufacture complex compositeairframe structures and componentsfor the company’s business aircraftand airliners.

May 2008

Embraer Safe FlightInstrumentCorporation

White Plains,New York,USA

AoA sensor Embraer100

Safe Flight’s AoA sensor provides localangle-of-attack information to thedual channel digital SWPS computer.The computer supplies stall warningand low airspeed awareness cues tothe integrated avionics suite as wellas outputs to drive the stick pusherfor stall protection.

May 2008

Embraer MTI Global Mississauga,Ontario,Canada

Thermal andacousticinsulation

Embraer100/300

Production isexpectedto ramp-up in 1Q2009 forbothprogrammes, withestimated totalrevenueexpectedto exceed$3.8millionover thelife of thecontracts

MTI-PolyFab has been selected byEmbraer to supply thermal andacoustic insulation for a sub system ofthe new Phenom 100/Phenom 300aircraft.

May 2008

Embraer RockwellCollins

Cedar Rapids,Iowa, USA

Avionics EmbraerMSJ/MLJ

Both aircraft will feature the Pro LineFusionTM avionics suite. Some of thestandard features on the MSJ and MLJflight deck include: four high-resolution 15-inch diagonal LiquidCrystal Displays (LCD) with syntheticvision depiction of terrain andobstacles; Integrated FlightInformation Systems (IFIS) withelectronic charts and enhanced maps;Advanced Flight ManagementSystems (FMS) with Wide AreaAugmentation System that supportsLocalizer Performance with Verticalguidance approaches (WAAS/LPV)and Required Navigation Performance(RNP) capabilities.

Apr 2008

Embraer Honeywell Phoenix,Arizona, USA

Engines EmbraerMSJ/MLJ

Honeywell is providing its HTF7000turbofan propulsion system family forEmbraer's MSJ and MLJ businessaircraft.

Apr 2008

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Embraer Honeywell Phoenix,Arizona, USA

APU EmbraerMSJ/MLJ

The 36-150 unit has been specified Apr 2008

Embraer BMWDesignworks USA

California,USA

Interiordesign

EmbraerMSJ/MLJ

Apr 2008

Honeywell GKN Cowes, UK Nacelles EmbraerMSJ/MLJ

$750millionplus

The contract covers the designadaptation of the nacelle, itsmanufacture and full integration withthe engine, with GKN Aerospacedelivering the complete HTF7500Epropulsion system podded into thenacelle direct to the customer'sassembly line. Work will largely becarried out at the Company's Cowes,Isle of Wight facility in the UK.

Jul 2008

Embraer MeggittFluidControls

NorthHollywoodand Corona,California,USA

Pneumaticbleed airsystem

EmbraerLegacy450/500

The pneumatic bleed air systemscomprise two regulating and sevenshut-off valves and a pneumaticsystem controller. The systemsmanage the bleed air from theengines' high and low pressureoutputs for temperature and pressurecontrol and maintain anti-ice systemsand the aircraft's cargo, cabin andcockpit environments.

Sep 2008

Gulfstream Safe FlightInstrument

White Plains,New York,USA

Automatic

throttle

system

GulfstreamG150

The AutoPower automatic throttlesystem is an option on the GulfstreamG150.

Oct 2008

Gulfstream IsraelAircraftIndustries

Tel Aviv,Israel

Fuselage,empennageand landinggear

GulfstreamG250

Initial phase manufacturing for theG250 will be at the IAI facility near theBen Gurion International Airport inIsrael. IAI currently builds two otherGulfstream aircraft: the G150 and theG200.

Oct 2008

Gulfstream SpiritAeroSystems

Tulsa,Oklahoma,USA

Wing GulfstreamG250

Spirit will design and produce thewing at its Tulsa facility and ship it toIsrael Aerospace Industries forincorporation with the rest of theairframe.

Oct 2008

Gulfstream MeggittAircraftBrakingSystems

Akron, Ohio,USA

Main wheels,nose wheels,carbon brakesand advancedbrake-by-wirebrake controlsystem

GulfstreamG250

The G250 features MABS’ advancedbrake control technology, whichincludes individual wheel brake-by-wire and anti-skid control, automaticbraking and brake temperaturemonitoring. The brake temperaturemonitoring system displays braketemperatures through the avionicssystem. The win follows Gulfstream’sselection of MABS’ braking system forthe G650. MABS has equipped everyGulfstream aircraft and remains theexclusive braking system supplier forall seven of Gulfstream’s currentaircraft.

Oct 2008

Gulfstreamad IsraelAerospaceIndustries

KiddeAerospace

Wilson,NorthCarolina, USA

Integratedfire andoverheatprotectionsystem

GulfstreamG250

The integrated fire and overheatprotection system comprisesengine/Auxiliary Power Unit firedetection and extinguishing, cargobay smoke detection, overheatdetection system, and integratedcontrol unit. According to the

Oct 2008

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180 The growth of aircraft manufacturing in low-wage economies 2005-2009

company the G250 system will be thefirst fully integrated fire and overheatprotection system used on a businessaircraft. The integrated controller willmonitor and control the fireprotection and overheat (bleed airleak detection) subsystems, as well asprovide auxiliary aircraft functions.The integrated control unitcommunicates with the G250'savionic system computers to providefire/overheat warning and cautioninformation.

GulfstreamHamiltonSundstrand

Rockford,Illinois, USA

See comment GulfstreamG650

The G650has thepotentialtogenerateapproximately$100million

Hamilton Sundstrand's suite ofsystems for the G650 includes theprimary electrical power generatingsystem, the emergency power RamAir Turbine and power distributionboxes.

Jun 2008

Gulfstream Honeywell Phoenix,Arizona, USA

Avionics GulfstreamG650

Estimated at $3billionincludingaftermarket salesover thelife of theplatform.

The G650 incorporates PlaneView(r) IIcockpit with a number ofenhancements including: four 14-inch, adaptive, liquid-crystal displays;three standard PlaneBook(r)computer tablets; a smaller pedestal;a standby multifunction controllerthat combines current displaycontroller functionality with standbyflight instruments; and a fullyautomatic, three-dimensionalscanning weather radar with anintegral terrain database for efficientground-clutter elimination.

Mar 2008

Gulfstream Honeywell Phoenix,Arizona, USA

SyntheticVision-Primary FlightDisplay (SV-PFD) system

GulfstreamG650

See above Mar 2008

Gulfstream MPCProducts

Chicago,Illinois, USA

Auto-throttle GulfstreamG650

Jul 2008

Gulfstream Honeywell Phoenix,Arizona, USA

Environmental control andcabinpressurecontrolsystemcomponents

GulfstreamG650

Mar 2008

Gulfstream Honeywell Phoenix,Arizona, USA

Air turbinestarter

GulfstreamG650

Mar 2008

Gulfstream Spirit

AeroSystems

Tulsa,Oklahoma,USA

Wing, enginenacelles andthrustreversers

GulfstreamG650

The company is responsible for thedesign, production and integrationof the wing.

Mar 2008

Gulfstream ParkerAerospace

Irvine,California,USA

Flight controlactuationsystem,hydraulicpumps,auxiliaryelectric motorpumps,

GulfstreamG650

Thecontractwillgenerate anestimatedUS$390

The Parker Control Systems Divisionwill design and manufacture theG650’s fly-by-wire flight controlactuation system, including theprimary aileron, rudder, elevator,and spoiler flight control actuationand control electronics. This systemincorporates electro-hydrostatic

Mar 2008

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181 The growth of aircraft manufacturing in low-wage economies 2005-2009

electro-hydrostaticmotor pumpunits, landinggearretraction anddooractuators,fluid quantityindicator

millionover thelife oftheprogramme forParker.

and electro-hydraulic technologies.In addition to the flight controlsystem, Parker’s Hydraulic SystemsDivision will provide engine-drivenhydraulic pumps, auxiliary electricmotor pumps, and electro-hydrostatic motor pump units forflight controls. The Parker ElectronicSystems Division will supply thefluid quantity indicator (FQI) whichmeasures and controls maintenanceof the engine oil and hydraulicfluids. The G650’s ecology bottleand hydraulic selector valve arenew wins for the Parker Air & FuelDivision on Gulfstream aircraft. Thedivision will also provide oil andhydraulic replenishment reservoirsand oil selector valves on theaircraft.

Gulfstream MeggittAircraftBrakingSystems

Akron, Ohio,USA

Wheels,brakes, brake-by-wirecontrolsystem, tyremonitoringsystem

GulfstreamG650

The advanced wheel and brakingsystem for the G650 jet is Meggitt'sbiggest ever wheels and brakescontract in the business aviationmarketplace and has the potential toprovide a strong revenue stream overthe life of the programme. MeggittAircraft Braking Systems is developingnew aluminium wheels and compactcarbon brakes, featuring carboncomposite heatsink material and anti-oxidant coating. Meggitt AircraftBraking Systems' involvement withthe G650 also includes thedevelopment of an 'intelligent' brake-by-wire control system. This featurespatented deceleration feedback. Thesystem also provides braketemperature information to theavionics system for cockpit display.Gulfstream has also selected thecompany to integrate the aircraft'styre pressure monitoring system.

May 2008

Gulfstream StorkAerospace

PapendrechtandHoogevee,TheNetherlands

Compositetail andbondedfuselagepanels

GulfstreamG650

Stork’srevenuesfrom theprogramme couldtotalapproximately$600million.

Stork is incorporating a newgeneration of composite materials inthe design of the tail section. The650’s empennage will featureadvanced lightweight composites andthermoplastics. Stork is makingnonrecurring investments of around$56 million for its role in theprogramme and it expects to see firstrevenues within five years of startingits design work. Stork has been a keysupplier for the Gulfstream GVprogramme, since 1993, providingmaterials for the original GV, as wellas the G500 and G550. It isresponsible for the tail section for alltypes, having delivered the first GVtail in 1995.

May 2008

Gulfstream Kollsman Merrimack,NewHampshire,USA

EnhancedVision System(EVS II),

GulfstreamG650

The EVS II and SV-PFD provide pilotswith a synthetic view of the terrain,obstacles and approaches, regardlessof the weather conditions outside thecockpit. EVS uses a forward-lookinginfrared (FLIR) camera to capturethem on the pilot's all-digital HUD II,

Mar 2008

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182 The growth of aircraft manufacturing in low-wage economies 2005-2009

while the SV-PFD uses three-dimensional, colour terrain imagesthat are derived from data stored inthe Honeywell Enhanced GroundProximity Warning System (EGPWS).

Gulfstream RockwellCollins

Cedar Rapids,Iowa, USA

Head updisplay

GulfstreamG650

The HUD II on the G650 featuresRockwell Collins' HGS-6250 advancedactive-matrix liquid crystal displaytechnology. Aircraft flight path andattitude symbols appear overlayingthe outside scene.

Mar 2008

Gulfstream RockwellCollins

Cedar Rapids,Iowa, USA

HorizontalStabilizer TrimSystem (HSTS)

GulfstreamG650

Rockwell Collins is developing the flapand speed brake control modules inthe centre pedestal, and the pitch,roll, yaw pilot controls, as well astheir interfaces to the aircraft's fly-by-wire systems.The HSTS incorporates twoindependent means of drive andfailure detection.

Mar 2008

Gulfstream Rolls-Royce Dahlewitz,Germany

Engine GulfstreamG650

The BR725 engine produces 16,100pounds of thrust at take-off andfeatures a 50-inch swept fan with 24blades, reduced noise and loweremissions.

Mar 2008

Gulfstream Goodrich Charlotte,NorthCarolina, USA

Landing gear GulfstreamG650

Nose and main landing gear to besupplied

Mar 2008

Gulfstream GoodrichInteriors

Charlotte,NorthCarolina, USA

flight deckobserverseats

GulfstreamG650

Mar 2008

Rolls-Royce GoodrichEngineControlSystems

Charlotte,NorthCarolina, USA

FADEC GulfstreamG650

The Full Authority Digital EngineControl (FADEC) system comprises anelectronic engine control, fuelmetering unit, fuel pump and engineactuation.

Mar 2008

Rolls-Royce Mecachrome

Montreal,Quebec,Canada

Rear bearingsupportstructure

GulfstreamG650

Mecachrome'scontracton theBR725 isestimated atUS$45millionover thelifeof theprogramme

Mecachrome International issupplying Rolls-Royce, onan exclusive basis, with the rearbearing support structure ("RBSS")and the intermediary casing ("IMC")of the BR725 engine.

Mar 2008

Rolls-Royce SpiritAeroSystems

Wichita,Kansas, USA

Enginenacelle,thrust-reverser andengine build-upcomponents

GulfstreamG650

Contractestimated at morethan$600million

The technology incorporatesintegrated composite assemblies.Spirit will also support the contract inthe Rolls-Royce CorporateProgramme.

Mar 2008

SpiritAeroSystems

RuagAerospace

Emmen,Switzerland

Winglets,ailerons andspoilers

GulfstreamG650

RUAG Aerospace will supply thewinglets, ailerons and spoilers madeof carbon fibre composites andaluminium. The first batch deliveriestake place from 2010.

Jun 2008

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183 The growth of aircraft manufacturing in low-wage economies 2005-2009

StorkFokker

Daher Orlytech,Paris, France

Upper tail,includingaerialprotectors

GulfstreamG650

The upper tail has a surface area of9sq m – the upper part of the verticaltail, including the tail protectors, aredesigned with a metal structure andcomposite panels.

Apr 2008

StorkFokker

AirborneComposites

Catalunya,Spain

Compositesoverhangpanels for theempennage

GulfstreamG650

Within the contract, ship-setscontaining 38 different panels will bedelivered as part of the Stork G650empennage programme. AirborneComposites will design the product aswell as the tooling. The first ship setswill be manufactured in The Haguefacility in the Netherlands. From2010, the series manufacturing of thepanels will be transferred toCatalunya, Spain.

Oct 2008

HondaAircraftCompany

Korry Seattle,Washington,USA

Cockpitpanels

HondaJet Each panel integrates Korry's 5/8" LEDswitches with lightplates and othercomponents. Korry is supplying 12control panels per aircraft beginningin 2008.

Sep 2008

Spectrum Honeywell Morristown,New Jersey,USA

Avionics Freedom S-40

Honeywell is supplying its PrimusApex with four screens: 15" primaryflight displays (PFDs) and two 10.4"multifunction displays (MFDs). All useultra-high resolution graphics, and theinstallation incorporates multipleredundancies for enhanced reliability.Additional features include advancedauto-flight control, graphical flightplanning, paperless charts and maps,keypad data entry, and cursor controldevice technology.

Jul 2008

Value of all 2008 business jet system, structures and component contracts, in the public domain $7058.8

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2008 business jet system, structures and component contracts $13,850

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $40

million

2009

Airliners

Contractor Supplier Supplierlocation

Workpackage

Aircraft type Contract value Contract details Contractdate

Airbus See comment Harbin, China Carbonstructures

AirbusA318/A319/A319CJ/A320/A321,

$450 million Airbus has signed a contractwith Chinese partners to createa joint venture to make carboncomposite parts in China for itsA350 XWB and A320 aircraft.

Jan2009

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AirbusA350XWB

Airbus's Chinese business willhold a 20% stake in the jointventure, based in Harbin, andChina's Harbin Aircraft IndustryGroup will hold a further 50%stake, while other local playersHAI, AviChina and HELI willeach own 10%. A new plantshould be ready for operationsby the end of 2010. Airbus saidthe value of its partnershipwith the Chinese aviationindustry is expected to be near$200 million per year in 2010and $450 million in 2015.

Airbus Cobham Wimbourne,UK

High-gainantennas

AirbusA318/A319/A319CJ/A320/A321

The company has secured acontract to supply high-gainantennas for use on single-aisleand long-range Airbus airliners.Cobham’s HGA-7001 antennawill be used for long-rangecommunication between pilotsand ATC. The antenna supportsInmarsat SwiftBroadbandservices.

Jun 2009

Goodrich CompositesTechnologyResearchMalaysia(CTRM)

KualaLumpur,Malaysia

Nacellecomponents

Airbus ,Mitsubishi aircraft

The 3.5 billionringgit, $1.03billion, deal isfor 20 years.

Oct 2009

Airbus TenCate Almelo, TheNetherlands

Composites Allmodels

Airbus has signed an extensionof its existing Memorandum ofUnderstanding with TenCate,Stork Fokker AESP and TheNetherlands Aerospace Group,making up the AffordablePrimary Aircraft Structure(TAPAS) consortium. TAPASmaterial technology is beingdeveloped for future Airbusapplications, including primarystructure parts such asfuselage and wings.

Apr 2009

EADS StrataManufacturing/ Mubadala

Abu Dhabi,United ArabEmirates

See comment AirbusA330/A340

Initial contractwith EADS andFinmecanicaworth around$2 billion

Strata has formed industrialpartnerships with EADS. Thefactory will make advancedcomposite aerostructures,including flap track fairings,ailerons, spoilers andassemblies for Airbus aircraftand the empennage for theATR Regional Aircraft. Theplant will start operations in2010, initially the providingspoilers and flap track fairingsfor the Airbus A330, A340,A350 and A380. The plannednext phase will see themanufacturing of primarystructures and components.

Airbus PremiumAerotec

Nordenham,Germany

Varel,Germany

Augsburg,Germany

Structures AirbusA350XWB

$500 million The company is providing thefuselage structure for theA350XWB. The structures arefor the floor and aft pressurebulkhead, adding to existingwork it has to build forwardsection elements and aft sideshells (see below). The aftpress bulkhead will be madefrom carbon fiber composites

Jun 2009

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(CFRP) and will be the thirdaircraft structural componentdeveloped and manufacturedby the company using thevacuum assisted process(VAP)–an infusion process ithas developed in-house andpatented. In August 2009Premium Aerotec inNordenham took delivery ofthe 27 meter long autoclave,eight meters high in diameter,for production of the forwardfuselage sections for the AirbusA350 XWB. The company is thelargest aerostrucures supplierfor the new Airbus A350 XWB.The company between 2009and 2011 is investing some 360million Euros for theproduction infrastructures ofthis aircraft.

Airbus Goodrich Work will beperformedby Goodrich'sSensors andIntegratedSystemsteams inBurnsville,Minn. andToulouse,France.

External videosystem

AirbusA350XWB

Goodrichexpects theaward togenerate morethan $1 billionin originalequipment andaftermarketrevenue overthe life of theprogramme

The external video systemintegrates all video informationinside and outside the aircraft,processes it for display andsends it to the flight deck. Thesystem includes threeexternallymounted digitalvideo cameras and twoConcentrator-Multiplexer forVideo (CMV) avionics modules.The CMVs receive informationfrom the ruggedized externalvideo cameras, multipleinternal cabin video sourcesand from the On-boardInformation System. Theinformation is processed intohigh quality video imagesviewable by the flight crewover the flight deck displays.

May 2009

Airbus KID-Systeme Buxtehude,Germany

Cabinsurveillanceequipment

AirbusA350XWB

The integrated solution willinclude a cockpit doorsurveillance system (CDSS) anda cabin video monitoringsystem (CVMS). The A350cabin surveillance is based onnetwork technology thatconsists of cameras andmicrophones, networkswitches and a videoprocessing unit. It will be fullyintegrated into the CabinIntercommunications DataSystem (CIDS), developed byAirbus in Buxtehude, providingdata recording and videosystem configuration tools.

Mar2009

Airbus Cobham Wimbourne,UK

High-gainantennas

AirbusA350XWB

The company has secured acontract to supply high-gainantennas for use on single-aisleand long-range Airbus airliners.Cobham’s HGA-7001 antennawill be used for long-rangecommunication between pilotsand ATC. The antenna supportsInmarsat SwiftBroadband

Jun 2009

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services.

Messier-Bugatti

CIRCORAerospaceProductsGroup

Corona,California,USA

Main andnose landinggear dooractuators

AirbusA350XWB

The actuators incorporate afluid recirculation feature tohelp reduce weight andimprove system efficiency andreliability.

Aug2009

Honeywell KiddeAerospaceand Defense

Wilson, NorthCarolina, USA

Overheatdetectionsystem

AirbusA350XWB

The A350XWB overheatdetection system monitors theaircraft environmental controlsystem's bleed air ducts foroverheat conditions caused byfailures. The system featureslinear thermal sensors,interconnecting cableassemblies and electroniccontrols residing within theHoneywell Bleed OverheatMonitoring Unit.

Jan2009

Rolls-Royce MitsubishiHeavyIndustries

Tokyo, Japan Combustionsystem andturbineblades

AirbusA350XWB

As a risk- and revenue-sharingpartner (RRSP), MHI will beresponsible for thedevelopment and manufactureof the components for theengine's combustion systemand manufacture of low-pressure turbine blades andothers. MHI has been in acooperative relationship withRolls-Royce through jointinvolvement in the V2500engine programme, and as anRRSP it has participated inRolls-Royce's programme todevelop the Trent 1000.

Jan2009

Rolls-Royce EsterlineCorporation

At least 75%of thesecomponentswill beproduced in-house at thecompany’sAdvancedSensorsfacilities,including theUK-basedWestonAerospaceoperation,France-basedAuxitroloperation, US-basedNorwich Aerooperation,and a newfacility inMexico.

Enginesensors

AirbusA350XWB

Approximately$500 millionover thelifetime of theprogramme

The contract covers the supplyof approximately 30 separatecomponents in the sensorspackage. The first Esterline-supplied Trent XWBcomponents are scheduled fordelivery to Rolls-Royce in early2010.

Apr 2009

Rolls-Royce Parker Productdesign,manufacture,and supportwill becompleted bymultipleParkerAerospacedivisions,

Engine fueland othersystems

AirbusA350XWB

Parkerestimates thatthe agreementwill generateapproximately$2.5 billion inrevenues overthe life of theprogramme

The contract covers severalproduct lines in support ofRolls-Royce requirements: thepneumatics valve suite thatenables anti-icing, turbine casecooling and engine bleedfunctions; the oil pump thatfeeds oil to bearings andgearboxes and scavenges thatreturn oil; and the hydraulic

Jan2009

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including theAir & FuelDivision andCustomerSupportOperations inIrvine,California;NicholsAirborneDivision inDevens,Massachusetts; andStratoflexProductsDivision inFort Worth,Texas

engine build-up (EBU) systemthat includes tubes, hoses andattaching hardware required toconvey the aircraft hydraulicpower between the engine-mounted pumps and theaircraft.

Rolls-Royce Fokker Elmo Thedevelopmentphase of theA350XWBprogrammewill take placeat FokkerElmo theNetherlandsfollowed byseriesproductionscheduled tobeundertaken atFokker ElmoChina.

Electricalwiring for theTrent XWB

AirbusA350XWB

The associateddesign-supportand productionwork isexpected to beworthapproximately$70 million,with activitiesto start in 2009.

Oct2009

Rolls-Royce Goodrich West DesMoines, Iowa,USA

Combustionsystem fuelnozzles

AirbusA350XWB

Oct2009

Airbus Cobham Wimbourne,UK

High-gainantennas

AirbusA380

The company has secured acontract to supply high-gainantennas for use on single-aisleand long-range Airbus airliners.Cobham’s HGA-7001 antennawill be used for long-rangecommunication between pilotsand ATC. The antenna supportsInmarsat SwiftBroadbandservices.

Jun 2009

ATR Daher Nantes,France

Compositewing tippanels

ATR 72-500

The company has won acontract to produce compositewing tip panels andlongitudinal members for theATR 72 range of aircraft, udingautomatic drape-formingprocesses. The contract coversthe full suration of the ATR 72production programme. Start-up of manufacturer isscheduled for the end of 2010.

Jun 2009

EADS/Finmecanica

StrataManufacturing/ Mubadala

Abu Dhabi,United ArabEmirates

See comment ATR 42-500/72-500/600

Strata has formed industrialpartnerships with EADS. Thefactory will make advancedcomposite aerostructures,including flap track fairings,ailerons, spoilers andassemblies for Airbus aircraftand the empennage for the

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ATR Regional Aircraft.

Boeing MHIAerospaceVietnam Co

Hanoi,Vietnam

Flaps Boeing737-600,-700,-800,-900

MHI Aerospace Vietnam Co.,Ltd. (MHIVA) of Hanoi is asubsidiary of Mitsubishi HeavyIndustries, Ltd. (MHI)completed the manufacture ofa component production plantin September 2009. MHIVA,capitalized at US$7 million, wasestablished in December 2007as a wholly owned subsidiaryof MHI to assemblecommercial aircraftcomponent structures. Thenew plant is situated at theThang Long Industrial Park(TLIP) approximately 16kilometers northwest ofcentral Hanoi and occupies4,500 square meters (m2) infloor area within the 19,100m2 plant. Initially, the flaps forthe Boeing 737 will be shippedto MHI's Nagoya AerospaceSystems Works for paintingand final inspection, and thendelivered to the Renton, USsite. Once production gathersmomentum, MHIVA will deliverthe flaps to the US directly,according to the company.

Sep 2009

SpiritAeroSystems

PPGAerospace

Huntsville,Alabama, USA

Laminatedglasswindshields

Boeing737-600,-700,-800,-900

The windshields are beingredesigned at Boeing's requestto accommodate airframeimprovements. The redesignedwindshields will be slightlysmaller than the currentversion and include an inboardplastic antispall liner toprevent broken glass fromentering the flight deck duringa bird-strike event. PPG will bethe sole source of theredesigned windshields forproduction and aftermarketapplications.

Aug2009

Boeing Boeing Boeing NorthCharleston,SouthernCarolina, USA

See comment Boeing787

Boeing has chosen its NorthCharleston, S.C., facility as thelocation for a second finalassembly site for the 787programme. In addition toserving as a location for finalassembly of the aircraft, thefacility also will have thecapability to support thetesting and delivery of theBoeing 787. Boeing Charlestonperforms fabrication, assemblyand systems installation for the787 aft fuselage sections.Nearby Global Aeronautica,which is 50 percent owned byBoeing, is responsible forjoining and integrating 787fuselage sections from otherstructural partners. Until thesecond 787 assembly line isbrought on line in North

Oct2009

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Charleston, Boeing willestablish transitional surgecapability at its Everett, Wash.,location.

Saab Noranco Pickering,Ontario,Canada

Structural,landing gearand avionicscomponents

Boeing787

Under the terms of theagreement, Noranco'sPickering Division will producestructural components forSaab Aerospace in Linkoping,Sweden, with deliveriescommencing in 2009 andrunning through 2012.

Sep 2009

Bombardier AleniaAeronautica

Turin, Italy Horizontaland verticalstabilizers,fullyequippedwithhydraulic,electrical andflight controlsystems,lights andantennas

Bombardier CSeries

Mar 2009

Bombardier GoodrichActuationSystems

Wolverhampton, UK

Flap and slatactuationsystem

Bombardier CSeries

The selection isexpected togenerate morethan $750million inoriginalequipment andaftermarketrevenue over20 years

Goodrich will provide a fullyintegrated high lift flap and slatsystem for the aircraftincluding actuators, powerdrive units, wing tip brakes,electronic control units, cockpitlevers, transmission shafts andsensors.

Mar 2009

Bombardier Fokker Elmo Papendrecht,theNetherlands.Most designanddevelopmenteffort willtake place on-site atBombardier inMontreal,manufacturing ofdevelopmentand flight testwiringsystems willbe performedat FokkerElmoNetherlands,while theserialproduction isscheduled tobe executedat FokkerElmo China.

Electricalwiringinterconnetion system

Bombardier CSeries

The associateddesign andproductionwork isexpected torepresent avalue ofapproximately$300 million,spread over a15 to 20 multiyear period.

Fokker Elmo is also providingall the design and productionof all Flight Test andInstrumentation wiringrequired during thecertification of the CSeriesaircraft.

Mar2009

Bombardier HamiltonSundstrand

WindsorLocks,Connecticut,USA

Electricalpower system

BombardierCSeries

HamiltonSundstrandprojects theprogrammevalue to be in

The Hamilton SundstrandElectric Power Generation andDistribution System (EPGDS)performs power generation,power distribution and load

Jun 2009

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excess of $2billion over thelife of theprogramme

management. It generateselectrical power via twovariable frequency generatorsand provides necessaryinterfaces with avionics andmember systems to conveydata and serve embeddedutility loads throughout theaircraft. The EPGDS providessecondary load managementthrough its five secondarypower distribution assemblies,which receive alternating ordirect current (AC/DC) powerinputs from power centers,then manage and distributethe power to load equipment.Hamilton Sundstrand alsoprovides emergency power, viaan electric air-drivengenerator.

Bombardier KiddeAerospaceand Defense

Wilson,NorthCarolina, USA

Fireprotectionsystem

BombardierCSeries

The integrated Fire ProtectionSystem comprises smokedetectors, fire detectors, fireextinguishers and integratedcontrol electronics.

Jun 2009

Bombardier EsterlineControlSystems-Korry

Bellevue,Washington,USA

Integratedcockpitcontrol panels

Bombardier CSeries

The 14 Korry panels which willuse Esterline Control Systems'Opticon TM solid-stateswitching technology are usedto control the operation ofvarious aircraft functions,including the hydraulic, fuel,electrical and lighting systems.

Jun 2009

Bombardier Goodrich Goodrich’sSensors andIntegratedSystemsfacility inBurnsville,Minn, USA

Air datasystem

Bombardier CSeries

The company is providingseveral systems including itsnext-generation SmartProbe™air data system and icedetection system. Work will beperformed primarily at. TheSmartProbe system providesall critical air data parametersfor the aircraft’s flight control,pilot display and othersystems. SmartProbe air datasensing technology integratesmulti-function sensing probes,pressure sensors and air datacomputer processing. Theprimary ice detection systemadvises flight crews of icebuildup for activation of the iceprotection system at theoptimal time. Goodrich hasalso been selected to providethe external, cockpit andmaintenance lighting systemfor the CSeries aircraft.

Jun 2009

Bombardier Honeywell Phoenix,Arizona, USA

Inertialreferencesystem andAPU

Bombardier CSeries

The IRS system providespositioning and attitude datafor the aircraft's navigationsystem as well as othersystems. The company’sLASEREF VI Inertial ReferenceSystem is an all-digital highperformance Ring Laser Gyro

Jun 2009

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system. The system iscompliant with new ADS-Brequirements and can meetRNP .1 performance standardswhen used with Honeywell’sGPS Hybrid (HIGH) software.

Bombardier L-3Communications

Sarasota,Florida, USA

Voice anddatarecorders

Bombardier CSeries

Jun 2009

Bombardier LiebherrAerospace

Lindenberg,Germany

Landing gears Bombardier CSeries

The company is responsible forthe design and manufacture ofthe complete landing gearssystem which includes themain and nose landing gears,the landing gear control andindication system, thealternate release system, theproximity sensing system andthe steering control system.

Jun 2009

Bombardier Magnaghi &Salver

Naples, Italy Structures Bombardier CSeries

Magnaghi & Salver is providingthe compositeinboard/outboard flaps,spoilers and main landing geardoors.

Jun 2009

Bombardier PanasonicAvionicsCorporation

Lake Forest,CA, USA

Cabinmanagementand passengeraddresssystem

Bombardier CSeries

The CMS, with its integrateddigital architecture, allowscontrol, monitoring anddiagnostics of numerousaircraft cabin functions,including temperature andlighting. The CMS also providesan embedded digital audiosolution offering passengeraddress, interphone and PRAM(Pre-Recorded Announcementsand Music) capabilities to theCSeries aircraft passengers,cabin and flight crew.

Jun 2009

Bombardier SeniorAerospaceBWT

Manchester,UK

Low pressureairdistributionsystem

Bombardier CSeries

The company is responsible forthe low pressure airdistribution systems for theaircraft cabin and cockpitenvironmental control systems(ECS). The low pressure ductingsystem brings fresh air into theaircraft for various purposessuch as conditioned air supply,cabin air re-circulation, flightdeck instrumentation cooling,avionics ventilation andwindshield demisting.

Jun 2009

Bombardier SeniorAerospaceSSP

Burbank,California,USA

High pressure(HP) bleed airand ram airductingsystems

Bombardier CSeries

The bleed air HP ducting isconveyed from the engines andthe auxiliary power unit (APU)to the environment controlsystem (ECS), the aircraft winganti-ice system and the fueltank inerting system. The ramair HP ducting conveys ram air(fresh air from the outside) tothe ECS and fuel tank inertingsystems.

Jun 2009

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Bombardier Sonaca Gosseilies,Belgium

Structures Bombardier CSeries

The company will supply thefixed leading edges, slats andtracks.

Jun 2009

Bombardier SpiritAeroSystems

Wichita,Kansas, USA

Engine pylons Bombardier CSeries

Jun 2009

Bombardier WoodwardMPC

Skokie,Illinois, USA

Throttlequadrantassembly

Bombardier CSeries

The throttle quadrantassembly (TQA) which acts asthe direct link for the control ofthe engine thrust and islocated in the cockpit suite.

Jun 2009

RuagAerospace

Ducommun Los Angeles,California,USA - Allwork will beperformed atDAS'sGardena,California andOrange,Californiafacilities.

Aft fuselagepane lassemblies

CRJ700/900/1000

$75 million The initial contract will runthrough 2012 and is valued atapproximately $75 million atanticipated build rates. Thefirst set of panel assemblies isto be delivered in the thirdquarter of 2009 with ramp-upto production starting by firstquarter of 2010.

May 2009

COMAC See comment See comment See comment COMACC919

See comment China's Large CommercialAircraft Corp has named its190-seat single-aisle, twinengined-aircraft the C919. Firstflight planned for 2016. TheC919 will be assembled inShanghai and major partnersalready announced are: AVICcompanies Chengdu AircraftCorp, Xian Aircraft Corp,Shenyang Aircraft Corp, andShenxi Aircraft Corp. In June2009. COMAC will build thehorizontal stabiliser. In June2009 Messier-Dowtyannounced that it has signed aletter of intent to cooperatewith Landing Gear AdvancedManufacturing Corp. (LAMC) ofChina to make a joint offer toCOMAC) for C919 landing gear.The agreement comprisescomplete landing gears,including structures, wheelsand brakes.

COMAC JiangxiHongduAviation

(also knownas NanchangAircraft)

Hongdu,China

Aft fuselage COMACC919

Oct 2009

COMAC HarbinAircraft

Harbin, China Compositefairings andmovingsurfaces and

COMACC919

Oct2009

COMAC ShenyangAircraft

Shenyang,China

Empennage,includingverticalstabiliser.

COMACC919

Oct2009

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193 The growth of aircraft manufacturing in low-wage economies 2005-2009

COMAC ChengduAircraft

Chengdu,China

Nose COMACC919

Oct 2009

COMAC Xian Aircraft Xian, China Cockpit, wingsand mainfuselage

Oct 2009

COMAC Alcoa New York,New York,USA

Advancedaluminumstructuralconcepts

COMACC919

Through a technologycooperation agreement, thetwo companies are examiningadvanced aluminum structuralconcepts, designs and alloys tocreate the 190-seat aircraft.

Oct2009

COMAC Safran/Nexcelle

See comment See comment COMACC919

During the September 2009Asian Aerospace show Safransigned a framework agreementwith AVIC for work on theaircraft as did Nexcelle - a jointventure company created byGE's Middle River AircraftSystems and Aircelle, a Safrangroup company to supplynacelles. According to AVIC:“AVIC Aircraft and Nexcelle willconsider a broad range ofnacelle and componentsmanufacturing and designopportunities, includingcurrent productionprogrammes and for newaircraft. Categories could rangefrom business jets to largeairliners.”

IrkutCorporation

Gidromash Moscow,Russia

Landing gear IrkutCorp MC-21

Aug 2009

IrkutCorporation

HamiltonSundstrand

Rockford,Illinois, USA

Electricpowergeneratingsystem,secondaryelectricalpowerdistribution,auxiliarypower unit,wing anti-iceand bleed airconditioningfor thenitrogengenerationsystem.

IrkutCorp MC-21

The value of allMC-21 work isexpected to beworthapproximately$2.3 billion overthe life of theprogramme

The nitrogen generationsystem is being developed withIntertechnique

Aug2009

IrkutCorporation

HamiltonSundstrandand NPONauka

Moscow,Russia

Integrated airmanagementsystem

IrkutCorp MC-21

NPO Hamilton Standard –Nauka, a joint venturebetween Hamilton Sundstrandand OAO NPO Nauka, wasestablished in 1994 in Moscowand specializes in developmentand production of heatexchangers for commercialaircraft air-conditioningsystems. The heat exchangersmanufactured by the companyare operated by Boeing,Airbus, Embraer, Bombardier

Aug 2009

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194 The growth of aircraft manufacturing in low-wage economies 2005-2009

and Tupolev.

IrkutCorporation

HamiltonSundstrandand ECE

Rockford,Illinois, USAand Paris,France

Powerdistributioncompany

IrkutCorp MC-21

ECE is part of the ZodiacGroup.

Aug 2009

IrkutCorporation

KiddeAerospace &Defense andL’Hotellierand HamiltonSundstrand

Wilson, NorthCarolina, USAand Antony,France

Fire detectionandsuppressionsystem

IrkutCorp MC-21

Kidde Aerospace and Defenseis a Hamilton Sundstrandcompany.

Aug2009

IrkutCorporation

C&D Zodiac HuntingdonBeach,California,USA

Interiors IrkutCorp MC-21

C&D Zodiac is part of theZodiac Group.

Aug2009

IrkutCorporation

Intertechnique

Plaisir, France Fuel system,oxygensystem,nitrogengeneratingsystem

IrkutCorp MC-21

Intertechnique is part of theZodiac Group.

Aug2009

IrkutCorporation

EatonCorporation

Cleveland,Ohio, USA

Hydraulicsystem

IrkutCorp MC-21

Eaton Corporation has placedmore than 50% of thecontract’s value with Russianenterprises (see below).

Aug2009

EatonCorporation

PMZ Voshod Nizhegorodskaya oblast,Russia

Hydraulicsystemactuators

IrkutCorp MC-21

Aug2009

EatonCorporation

PKOTeploobmennik

NizhniyNovgorod,Russia

Hydraulicsystemcomponents

IrkutCorp MC-21

Aug 2009

EatonCorporation

MIZ Znamya Moscow,Russia

Hydraulicsystemcomponents

IrkutCorp MC-21

Aug2009

EatonCorporation

Tehpribor Omsk, Russia Hydraulicsystemcomponents

IrkutCorp MC-21

Aug2009

MitsubishiAircraft

AerospaceIndustrialDevelopmentCorporation(AIDC)

Taipei,Taiwan

Slats, flaps,belly fairings,rudders aswell ashorizontalstabiliserrotatingblades.

MitsubishiMRJ70/90

Jan2009

Value of all (estimated) 2009 airliner system, structures and component contracts, in the public domain $13,025

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $ 1,650

million

PMI Media estimates of total value of 2009 airliner system, structures and component contracts $ 22,982

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $ 8,060

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million

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196 The growth of aircraft manufacturing in low-wage economies 2005-2009

Military transports

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

BoeingMilitaryAircraft

BAESystems

Phoenix,Arizona, USA

Troop seats Boeing C-17Globemaster III

$4.6million

The seats are scheduled to bedelivered through June 2010. Thecontract also includes an option of$4.6 million for an additional 15shipsets that would extend seatdeliveries until the middle of 2011.

Jan 2009

BoeingMilitaryAircraft

Ducommun Gardena,California,USA

Fuselage skinpanels

Boeing C-17Globemaster III

The company signed a follow-oncontract with Boeing to providefuselage skins for the C-17 throughthe fourth quarter of 2010.

Nov 2009

BoeingMilitaryAircraft

BoeingMilitaryAircraft

Wichita,Kansas,USA

Fuselage Boeing P-8A/8I

The integrated Navy/Boeing teamwere due to begin formal flighttesting of the P-8A in late 2009. TheNavy plans to purchase 117 P-8As,and initial operational capability isplanned for 2013. The BoeingCompany and the US Navy formallyunveiled the aircraft in July 2009 atthe Boeing facility in Renton,Washington, USA.

Jan 2009

DefenseLogisticsAgency -Ogden

Goodrich Charlotte,NorthCarolina, USA

Brakingsystems

C-130J $400million

The company has been awarded acontract to provide new carbonbrakes and boltless wheels for the AirForce's fleet of C-130 transportaircraft. The contract coversqualification activities as well as flighttest and retrofit equipment. Theequipment will be provided byGoodrich's Aircraft Wheels andBrakes business. Goodrich will supplyDURACARB(TM) carbon brakingsystems featuring lighter weight,longer life, higher performance andlower cost of ownership compared tosteel braking systems, according tothe company.

Aug 2009

L-3CommunicationsIntegratedSystems

FairchildControls

Frederick,Maryland,USA

Vapourcyclingcoolingsystem

C-130H The company is providing the US AirForce's EC-130H Compass Call aircraftwith a vapour cycle cooling system,which will provide environmentalcontrol for the onboard missionsystems. This system will consist of amission-critical, twin-redundantvapour cycle pack with lightweighthelical screw compressors and anintegrated motor/system controller.

Jan 2009

US Navy NorthropGrumman

St Augustine,Florida, USA

See comment NorthropGrummanE-2DAdvancedHawkeye

A $432 million contract, whichincludes two Low-Rate InitialProduction (LRIP) Lot 1 aircraft and anAdvanced Acquisition Contract fortwo LRIP Lot 2 aircraft, was awardedto Northrop Grumman in June 2009as part of the initial, $1.9 billion E-2DAdvanced Hawkeye SystemDevelopment & Design contract,awarded in August 2003.NorthropGrumman will also provide associatedengineering and testing. The first pilotproduction aircraft is scheduled for2010; with entry into service in 2013.Main features of the aircraft are anenhanced radar system, new digital

Jun 2009

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avionics and more powerful engines.

Value of all (estimated) 2009 military transport system, structures and component contracts, in the

public domain

$836.6

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2009 military system, structures and component contracts $ 1166.6

PMI Media estimates of low-wage manufacturing system, structures and component contracts -

Military fast jets

Contractor Supplier Supplierlocation

Work package Aircrafttype

Contractvalue

Contract details Contractdate

Alenia SIA NorthropGrumman Italia

Pomezia,Italy

Navigationsystem

AermacchiM-346

Northrop Grumman Italia issupplying the aircrafttransducer unit which will beintegrated into the fly-by-wire control system. Thetransducer unit uses aquadruple redundantinstallation of the company'sLISA-200 fibre-optic gyroattitude and headingreference unit (AHRS). TheLISA-200 AHRS is alightweight fibre-optic gyroattitude and headingreference system based onthe Northrop Grumman LN-200 inertial measurementunit. Northrop GrummanItalia will supply 10 aircrafttransducer prototype unitsto Alenia SIA under thisdevelopment contract. Thefirst unit is scheduled fordelivery in September 2009.

Apr 2009

AMXInternational

Elbit/Elisra Bene Brak,Israel

Avionics/EWsuite upgrade

AMXInternational AMX

$187 million The avionics suite onBrazilian AMX aircraft isbeingupgraded by Elbit Systems,Elisra’s parent company,withElisra responsible for theelectronic warfarecomponents.

Early 2009

AMXInternational

FLIR Systems Portland,Oregon,USA

Airbornethermalimagingsystems

AMXInternational AMX

$7 million The company is supplyingmultiple units of its newNavFLIR airborne thermalimaging systems. The unitsdelivered under this contactwill be installed on BrazilianAir Force AMX swept-wingfighter jets. The NavFLIR is afixed-mount, forward-looking infrared system,installed on the nose of theaircraft. The NavFLIR aidspilots by enhancing theirability to see terrain andother aircraft at long ranges,even in total darkness, lightfog, dust and smoke.

Jun 2009

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- HerleyIndustries

Woburn,Massachusetts, USA

Complexintegratedmicrowaveassembly (IMA)

EurofighterEF 2000Typhoon

$2.8 million The IMA will be integratedinto the CAPTOR radar.

Jul 2009

DefenseLogisticsAgency

CircorAerospace

Corona,California,USA

Nose wheelsteeringactuator

LockheedMartin F-16

The value ofthis initialcontractexceeds $3.7million

The company is supplying itsnose wheel steering actuator(NWSA) for all models of theF-16. The company's unit is adrop-in replacement, which,it says, requires no change tocurrent installation oroperational procedures. Thedesign is approved fordomestic and foreign salesfor the Lockheed Martin F-16Fighting Falcon fleet of over4400 aircraft.

Sep 2009

USDepartment ofDefense

Pratt &Whitney

EastHartford,Connecticut, USA

F135 engineproduction

LockheedMartin F-35Joint StrikeFighter

$571 million This low rate initialproduction (LRIP) contractcovers production,sustainment, spare parts andengineering support for thethird lot of F135 engines,including 10 conventionaltake-off and landing (CTOL)and 11 short-takeoff/vertical-landing(STOVL) engines for F-35aircraft. Additionally, Pratt &Whitney has been awarded a$113 million contract forlong lead materialprocurement to produce 32F135 engines for the fourthlot of F135 engines.

Jul 2009

LockheedMartin,BAESystemsandNorthropGrummanCorporation

Terma Grenaa,Denmark

See comment LockheedMartin F-35Joint StrikeFighter

The presentestimatedvalue of theMOU is morethan 7 billionDKK ($1.4billion)

Lockheed Martin, BAESystems and NorthropGrumman Corporation alongwith Moog Incorporated,General Dynamics Armamentand Technical Products,Parker Hannifin Corporationand Marvin EngineeringCompany have signed aMemorandum ofUnderstanding (MoU) withTerma A/S for the Danishcompany to become a majorstrategic partner in theprogramme. The agreementcovers the following systems(see also below): compositeconventional edges for theaircraft horizontal tails;advanced lightweightcomposite components forthe center fuselage; STOVLhorizontal tails; missionizedgun pods for STOVL and CVvariants; data acquisitionpods for flight testinstrumentation; radarelectronics flight controlcomponents. This workinvolves a major expansionof the Grenaa facilities,primarily in the area ofadvanced lightweightcomposites technologywhich will give Terma theopportunity to compete for

Aug 2009

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additional programme work.

LockheedMartin

Vision SystemsInternational

San Jose,California,USA

Helmet-mounteddisplay (HMD)

LockheedMartin F-35Joint StrikeFighter

$54.1 million The Lockheed MartinCorporation awarded VSI acontract for the delivery of52 F-35 Gen II HelmetMounted Displays and 30aircraft shipsets in support ofthe F-35 Lightning II HelmetMounted Display System(HMDS) programme.Under the low rate initialproduction (LRIP) contract,VSI will provide HMDShardware and productiontooling for the LRIP 1, 2 and3 acquisitions. Thisprocurement fills initial U.S.government domesticrequirements for the U.S. AirForce F-35A, U.S. MarineCorps F-35B and U.S. Navy F35C platforms, as well assome foreign military salesproduction commitments.LRIP deliveries will continuethrough 2012.

Jun 2009

LockheedMartin

Stork Fokker Papendrecht, theNetherlands

Flaperons LockheedMartin F-35Joint StrikeFighter

Spread overthe periodfrom 2009 tothe end of2014 thisselectionrepresents aturnovervalue of $ 200million. Theorder couldexceed US$1.0 billionover the lifeof theprogramme.

The F-35's flaperons are 3metre long flaps on the wingtrailing edges which are vitalfor the controllability of theaircraft. The units design arebased on a combination ofcomposite and titanium witha better resistance to fatigueand corrosion. Stork Fokkerhas already manufacturedmore than 2000 sets offlaperons for the LockheedMartin F-16 aircraft type formany years. This initial orderwill provide employment foraround 100 people, a figurethat will be doubled if thetotal production order isreceived. Production will bein the Netherlands, initially inthe existing Stork Fokkerfactory in Hoogeveen, andwill later be transferred to anew F-35 factory.Other contributions by StorkAerospace to the JSF projectinclude the design andproduction of the doors andhatches, the electrical wiringharnesses, the wiring andstructural components forthe Pratt & Whitney enginesand the arresting gear. Storkhas up to now involved fortysuppliers in the Netherlandsin these JSF orders, and thisnumber is expected toincrease further when theserial production phasestarts (see also below).

Oct2009

Goodrich US Air Force'sOgden Air

Hill AirForce Base,

Landing gearcoatings

LockheedMartin F-35

Under the agreement, theOO-ALC will apply high

Jan2009

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200 The growth of aircraft manufacturing in low-wage economies 2005-2009

Logistics Center(OO-ALC)

Utah, USA Joint StrikeFighter

velocity oxygenated fuel(HVOF) thermal spraycoating on Goodrich landinggear components producedfor the F-35. The initialagreement runs throughMay 2009, and coversrequirements for five landinggear ship-sets of the carriervariant F-35.

Goodrich Alp Aviation Ankara,Turkey

Landing gearcomponentsand assemblies

LockheedMartin F-35Joint StrikeFighter

The agreement coversdeliveries through December31, 2015. Under theagreement, Alp Aviation willsupply machinedcomponents ranging fromaluminium parts to highstrength steel componentsand assemblies. Thesecomponents will bedelivered to GoodrichLanding Gear's final assemblyfacility in Cleveland, Ohio.

Jul 2009

BAESystems

RLC Group Altham, UK Components LockheedMartin F-35Joint StrikeFighter

See comment Contract awarded as part ofa £4.2 million NorthwestRegional DevelopmentAgency (NWDA) AerospaceSupply Chain ExcellenceProgramme (ASCE) to linkprimes with SMEs in the localarea.The company will workclosely with BAE Systems in aSupplier Association whichwill be the first supplierassociation run through theASCE programme.

July2009

BAESystems

JohnHuddlestonEngineering

Blackpool,UK

Components LockheedMartin F-35Joint StrikeFighter

See comment Contract awarded as part ofa £4.2 million NorthwestRegional DevelopmentAgency (NWDA) AerospaceSupply Chain ExcellenceProgramme (ASCE) to linkprimes with SMEs in the localarea.The company will workclosely with BAE Systems in aSupplier Association whichwill be the first supplierassociation run through theASCE programme.

Jul 2009

BAESystems

Hyde AeroProducts

Dukenfield,Manchester, UK

Components LockheedMartin F-35Joint StrikeFighter

See comment Contract awarded as part ofa £4.2 million NorthwestRegional DevelopmentAgency (NWDA) AerospaceSupply Chain ExcellenceProgramme (ASCE) to linkprimes with SMEs in the localarea.The company will workclosely with BAE Systems in aSupplier Association whichwill be the first supplierassociation run through theASCE programme.

Jul 2009

BAESystems

Thyssenkrupp BamberBridge,Preston, UK

Components LockheedMartin F-35Joint StrikeFighter

See comment Contract awarded as part ofa £4.2 million NorthwestRegional DevelopmentAgency (NWDA) AerospaceSupply Chain ExcellenceProgramme (ASCE) to linkprimes with SMEs in the localarea.The company will work

Jul 2009

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201 The growth of aircraft manufacturing in low-wage economies 2005-2009

closely with BAE Systems in aSupplier Association whichwill be the first supplierassociation run through theASCE programme.

NorthropGrumman

Kongsberg Kongsberg,Norway

Compositecomponents

LockheedMartin F-35Joint StrikeFighter

The currentagreement isvalued atapprox. 460Million NOK,($82 million)and it has apotentialvalue of 2.5Billion NOKfor theduration ofthe F-35Programme.

The company's initialdeliveries will support lotthree low rate initialproduction aircraft, whichwill begin the programme'stransition to full rateproduction. The parts will beproduced at the new 30 000m2 plant built in Kongsberg.Production is currently instart-up and will last until2015.

Jul 2009

LockheedMartin

BAE SystemsAvionics

Edinburgh,UK

EOTSFLIR

LockheedMartin F-35Joint StrikeFighter

NorthropGrumman

TurkishAerospaceIndustries

Ankara,Turkey

See comment LockheedMartin F-35Joint StrikeFighter

$28.4 million Northrop GrummanCorporation has awarded asecond source suppliercontract to TAI to producecomposite air inlet ducts.The contract is for fouryears. The first deliveries ofducts from the TAI contractare scheduled for June 2010.Northrop Grumman will usethe ducts to supportproduction of centrefuselages during the fourththrough eighth phases of lowrate initial production.

Oct 2009

FMV (theSwedishDefenceMaterielAdministration)

Saab Linkoping,Jarfalla andKista,Sweden

Gripen upgradeprogramme

Saab JAS 39Gripen NG

The order isvalued atapprox. MSEK350 ($50million)

The order covers Gripenaircraft operating in Sweden,Hungary, the Czech Republicand Thailand.

Jul 2009

Value of all 2009 military fast jet system, structures and component contracts, in the public domain $2,655

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain $28.4

million

PMI Media estimates of total value of 2009 fast jet system, structures and component contracts $ 2691

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts $42

million

Rotorcraft

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

AgustaWes Aero Sekur Farnborough, External life AgustaW The life-rafts are stowed in July 2009

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tland UK raft system estlandAW 139

aerodynamic canisters, locatedoutside the helicopter cabin.

Bell/Agusta KamanCorporation

Bloomfield,Connecticut,USA

Assembliesandstructures(seecomment)

Bell/Agusta BA609

Thecontract has apotentialvalueof $53million–covering allBellhelicoptertypes

Kaman Aerospace Corporation hasbeen awarded a five-year contract tobuild composite helicopter bladeskins and skin core assemblies for BellHelicopters. Under the terms of thecontract, Kaman will provide 18different assemblies for H1, 406, 407,412, 427, 429, 430 and BA609aircraft. All work will be performed atthe Kaman HeliworX(TM) full-serviceaerospace innovation andmanufacturing support center inBloomfield, Connecticut.

September2009

USDepartment ofDefense

Bell Boeing The BellBoeingTiltrotor Teamcomprises BellHelicopterTextron inFort Worth,Texas, USAand theBoeingCompany inPhiladelphia,USA.

Logisticssupport -JointPerformanceBasedLogistics(PBL)

BellBoeing V-22

Phase Iof thecontract,valuedat $581millionoverfiveyears

Phase I of the contract providesintegrated logistics support for theOsprey fleet, including programmemanagement, site activation,maintenance planning andsupportability analysis, technicaldata, in-service engineering andlogistics, training and trainer support,support equipment, and dedicatedand deployable support for all V-22squadrons across the globe. Phase IIof the PBL contract will include supplychain management, whichencompasses the purchase, repair,stocking and delivery ofapproximately 15,000 spare andrepair aircraft parts. In June 2009 theBell Boeing Programme Officeannounced it had been awardedPhase 1.5 of the contract.

January2009

Bell Boeing Ducommun Coxsackie,New York,USA

Exhaust ducts BellBoeing V-22

Ducommun AeroStructures Inc hasbeen awarded a V-22 Multi-YearProcurement Programme (MYP)contract through 2012 for titaniumEAPS exhaust ducts.

April 2009

Bell Boeing LaBarge St Louis,Missouri, USA

De-icingsystemelectronicsub-assemblies

BellBoeing V-22

$5.1million

This is a follow-on contract tocontinue to produce electronicsubassemblies. LaBarge beganproducing the V-22 electronics in2005.

April 2009

BellHelicopterTextron

Rolls-Royce Indiana,Indianapolis,USA

Engines Bell 206L4/407

$400million

Rolls Royce 250-C30P. During 2007Bell and Rolls-Royce reached anagreement for an upgrade kit for the206L1 to replace the Model 250engine with Model 250-C30Ppowerplant, which provides 650shaft-horsepower at takeoff. InFebruary 2009 Rolls-Royce and BellHelicopter signed a ten-yearagreement for the supply of Model250 engines for Bell 206 and 407helicopters. As part of thisagreement, Model 250 engines willbe delivered to Bell Helicopterthrough 2017. Rolls-Royce HelicopterEngines have delivered more than18,000 Model 250 engines for use onsingle and twin-engine helicopters toBell over the last decades.

February2009

Boeing DucommunAerostructures

Monrovia,California,USA

Main and tailrotor blades.

BoeingAH-64DApache

These are follow-on contracts forboth original equipment andreplacement blades, in addition tocurrent production, and extend

January2009

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203 The growth of aircraft manufacturing in low-wage economies 2005-2009

deliveries into 2010. The Monrovia,facility has built every Apache rotorblade since the inception of theprogramme.

USDepartment ofDefense

Goodrich'sEngine ControlSystems

WestHartford,Connecticut,USA

Enhanceddigitalelectroniccontrol units(EDECU)

BoeingAH-64DApache

The company is equipping GE T700engines powering the AH-64 Apachehelicopters for the US Army, withEDECUs In September 2009, Goodrichreceived a contract from the US Armyfor 55 EDECUs, with options for 230additional units. Prior to this,Goodrich received contracts from theUS Navy, U.S. Coast Guard, and GEAircraft Engines for more than 600additional units. In all, nearly 1,000firm and option EDECUs are on orderfor delivery through 2011.

September2009

US Army LockheedMartin

Orlando,Florida, USA

TargetAcquisitionDesignationSight/PilotNight VisionSensor(TADS/PNVS)andModernizedTADS/PNVS(M-TADS/PNVS)systems

BoeingAH-64DApache –Block III

Thecontract has apotentialvalueof $89millionfor2009.

This is a follow-on Performance BasedLogistics (PBL) contract.The originalPBL contract, awarded in early 2007,established a system of continuousimprovements supporting the AH-64Apache TADS/PNVS and M-TADS/PNVS programmes. The PBLcontract provides post-productionsupply chain management, includingspares planning, procurement,repairs, maintenance, modificationsand inventory management of fieldedsystems. The value of the first year ofthe contract was $117.8 million andthe 2008 contract was worth $76.6million.

July 2009

Boeing Stork Fokker PapendrechtandHoogeveen,theNetherlands

Aft sectionmajorsubassemblies.

BoeingCH-47F

The contract will involve 15 otherDutch companies as part of thecompany’s extended supply chain.First delivery is scheduled for thesecond quarter of 2010.

February2009

Eurocopter Daher Tarbes,France

Airframes Eurocopter EC 130Ecureuil/Fennec/AS350/AS355/AS550/AS555

The company has signed a contract todevelop a new generation ofairframes for Eurocopter’s range oflight helicopters. Daher expects tostart production in early 2012 at itsplant in Tarbes, France.

June 2009

AmericanEurocopter

See comment See comment Security andsupportmissionequipmentpackage sub-assembliesandcomponents

AmericaEurocopter UH-72A

EADS North America and itssubsidiary American Eurocopter haveselected the industry team that willprovide components and sub-systemsfor the UH-72A Lakota Light UtilityHelicopter Security and Support (S&S)mission equipment package (MEP).The mission equipment packageconsists of an electro-optical infraredsensor, data communications suite,moving map display, cabin andcockpit screens, a digital videorecorder and a searchlight.

Companies selected to provide keycomponents and sub-systems for theS&S mission equipment package are:

LCX Systems; Sarasota, Fla.

Sierra NevadaCorporation; Sparks, Nev.

Ranger Rotorcraft Group;Fort Worth, Texas

MARK IV Luminator;

June 2009

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204 The growth of aircraft manufacturing in low-wage economies 2005-2009

Plano, Texas

L-3 Communications; NewYork, N.Y.

KoreaAerospaceIndustries

Elbit Haifa, Israel Helmetmountedsystems

KoreanUtilityHelicopter

Under the contract, Elbit Systems willsupply the prime contractor KAI withthe advanced helmet mounteddisplay systems.

March2009

RussianHelicopters

Turbomeca Bordes,France

Engine RussianHelicopters Sapsan(Mi-34S2)

The Arrius 2F provides 504 shp take-off power.

August2009

RussianHelicopters

Reduktor PM Perm, Russia Main and tailgearboxes,transmissionshafts

RussianHelicopters Sapsan(Mi-34S2)

August2009

RussianHelicopters

StupinoMachine-BuildingIndustrialEnterprise

Stupino,Russia

Main and tailrotor heads,swash plate

RussianHelicopters Sapsan(Mi-34S2)

August2009

RussianHelicopters

ArsenyevAviationCompanyProgress

Moscow,Russia

Hull, mainand tail rotorblades andhelicopterassembly

RussianHelicopters Sapsan(Mi-34S2)

August2009

Sikorsky BAE Systems Phoenix,Arizona, USA

Cockpit seatsand cabinarmoursystems

SikorskyCH-53K

Thetotalvalueof theprogrammesisestimated atapproximately$90millionthrough 2022.

The first deliveries of seats and cabinarmour are scheduled for 2010. BAESystems’ work will include design,development, testing, qualification,and delivery of initial systems tosupport the flight and ground testaircraft. Follow-on contracts wouldbe placed for production orders andspares. The cockpit seat will be partof BAE Systems "S7000" family andwill include integration of the CH-53K's fly-by-wire flight controls.

February2009

Claverham Curtiss-WrightCorporation

Christchurch,UK

Transducers SikorskyUH 60MUpgrade

Thecontract has apotentialvalueinexcessof $20millionover a15-yearperiod.

The transducers are for use in the fly-by-wire systems that control the mainrotor and tail rotor on the SikorskyUH-60M Upgrade and CH-53Khelicopters.

April 2009

Sikorsky Tata AdvancedSystems

Hyderabad,India

Cabins SikorskyS-92

Tata Advanced Systems and Sikorskyhave signed an agreement for theIndian enterprise to build cabins forthe S-92 helicopter at a greenfieldsite in Hyderabad, and is due to begindeliveries from late 2010.

June 2009

Sikorsky General Electric Lynn,Massachusetts, USA

Engines SikorskyUH 60M

The General Electric T700-GE-701Dengine is fitted with full authoritydigital electronic control. In April2009 GE Aviation was awarded amulti-year contract extension fromthe U.S. Army that provides for thecontinued production of T700 turbo-shaft engines in support of both Army

April 2009

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205 The growth of aircraft manufacturing in low-wage economies 2005-2009

and Navy Black Hawk serieshelicopters through 2014. If exercisedfully the contract allows for thepotential for up to an additional3,700 T700 engines (-701D/-701E/-401C variants). A portion of theseengines will go on the new UH-60Mupgrade Black Hawk helicopter, aswell as serve as spares for aircraftcurrently operating in Iraq andAfghanistan.

USDepartment ofDefense

Goodrich'sEngine ControlSystems

WestHartford,Connecticut,USA

Enhanceddigitalelectroniccontrol units(EDECU)

SikorskyH-60BlackHawk,JayhawkandSeahawk

The company is equipping GE T700engines powering Sikorsky H-60 BlackHawk, Jayhawk and Seahawk modelhelicopters for the US Army, CoastGuard and Navy, as well as BoeingAH-64 Apache helicopters for the U.S.Army, with EDECUs In September2009, Goodrich received a contractfrom the US Army for 55 EDECUs,with options for 230 additional units.Prior to this, Goodrich receivedcontracts from the US Navy, U.S.Coast Guard, and GE Aircraft Enginesfor more than 600 additional units. Inall, nearly 1,000 firm and optionEDECUs are on order for deliverythrough 2011. The EDECU, part of theUS Army's "common control" for theT700 engine, includes enhanced built-in test and fault recording algorithmsto aid in engine health andperformance assessments. Accordingto the company, the EDECU evolvedfrom the Universal Controltechnology programmes sponsoredby the US Army to develop a singlepart number common control withthe processing power to containmultiple application softwarepackages, address electronicsobsolescence issues, provide a workstation-like platform for improvedengine health condition monitoring,and reduce engine control systemrecurring and logistics costs.

September2009

Sikorsky NorthropGrumman

Pomezia, Italy Air navigationsystem

SikorskyUH-60L

The NAVEX air navigation system hasbeen chosen for use on UH-60L BlackHawk utility helicopters for export.Under the contract NorthropGrumman's Italy-based subsidiary willsupply Sikorsky Aircraft with NAVEXsystems and installation kits for aninitial 15 helicopters with a follow-oncontract for an additional 17helicopters. Two NAVEX systems willbe supplied for each helicopter.

January2009

Sikorsky LaBarge Huntsville,Arkansas, USA

Components(seecomment)

SikorskyUH-60

$1.8million

The contract is for the continuingsupply of various electronicassemblies for various models of UH-60 helicopters. The LaBarge-builtelectronic assemblies will support theinlet barrier filtration system, whichextends the life of the engine.Production is expected to continuethrough July 2010.

October2009

KamanAerospace

LaBarge St Louis,Missouri, USA

Cockpitwiring

SikorskyUH

Around$12

The LaBarge-built wiring harnesseswill be installed in cockpits of the UH-

July 2009

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206 The growth of aircraft manufacturing in low-wage economies 2005-2009

Corporation

harnesses 60M/L million 60M and UH-60L Black Hawkhelicopters, and the HH-60M and HH-60L Medevac models. LaBarge alsoprovides electronic assembliesdirectly to Sikorsky Aircraft Corp. forthe Black Hawk helicopter.

Value of all estimated 2009 rotorcraft system, structures and component contracts, in the public domain $1,251.9

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

PMI Media estimates of total value of 2009 rotorcraft system, structures and component contracts $ 4,066

PMI Media estimates of low-wage manufacturing system, structures and component contracts $1,110

Business jets

Contractor Supplier Supplierlocation

Workpackage

Aircrafttype

Contractvalue

Contract details Contractdate

Bombardier Meggitt White Plains,New York,USA

Fire

protection

system

BombardierLearjet 85

The company is supplying its FIDEXfire detection and extinguishingsystem. The system, which includesadvanced fire and smoke detectionequipment and Pacific Scientific fireextinguishing components, protectsthe engines, auxiliary power unit andcargo compartments of the aircraft. Itis an FAA/EASA-approved AirTransportation Association (ATA)Chapter 26 fire protection system.

August2009

Bombardier Goodrich Bursnville,Minnesota,USA

Air data

system

BombardierLearjet 85

Thecontractisexpectedtogeneratemorethan $75million

The company is providing its nextgeneration SmartProbe™ air datasystem, providing all critical air dataparameters – including stallprotection – to the aircraft’s flightcontrol, pilot display and othersystems.

July 2009

Bombardier B/EAerospace

Wellington,Florida, USA

Waste water

system

BombardierLearjet 85

The $150millionorderencompasses theBombardierLearjet85,DassaultFalcon7X,EmbraerLegacy450 andLegacy500.

Volume production starts in 2011. April 2009

Bombardier AstronicsCorporation

East Aurora,New York,USA

Electronic

power

distribution

system

BombardierLearjet 85

Astronics is supplying its Corepower(r) EPDS which uses arc-faultelectronic circuit breaker technology.The EPDS is integrated with theaircraft's avionics and featuresautomation of functions such asengine start-up and electrical load

February2009

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207 The growth of aircraft manufacturing in low-wage economies 2005-2009

management.

Cessna WingletTechnologyLLC

Wichita,Kansas, USA

Winglets Cessna 750Citation X

Available as a retrofit option theElliptical Winglets kit includes thereplacement of the existing anti-collision and position light systemwith LED versions. The delivery of thefirst Cessna Citation X to be fittedwith Elliptical Winglets took place inlate August 2009.

August2009

Dassault B/EAerospace

Wellington,Florida, USA

Water water

system

DassaultFalcon 7X

The $150millionorderencompasses theBombardierLearjet85,DassaultFalcon7X,EmbraerLegacy450 andLegacy500.

Volume production starts in 2011. April 2009

Embraer B/EAerospace

Wellington,Florida, USA

Water water

system

Embraer450/500

The $150millionorderencompasses theBombardierLearjet85,DassaultFalcon7X,EmbraerLegacy450 andLegacy500.

Volume production starts in 2011. April 2009

Embraer DucommunAeroStructures

Los Angeles,California,USA

Ailerons and

spoilers

EmbraerLegacy450/500

$50millionplus

DAS has been awarded the designand build contract for the aileronsand spoilers. Ducommun will developthe parts from concept throughcertification, preliminary engineering,and detailed designs, drawings andspecifications jointly with Embraer.The Ducommun-led engineering teamwill work in close collaboration withEmbraer's engineering offices locatedin Brazil.

February2009

Gulfstream KiddeAerospaceandDefence

Colnbrook,UK

Engine

fire detection

system

GulfstreamG650

The contract incorporates the supplyof engine and nacelle-mounted firedetectors and control units. Gravinercurrently supplies Gulfstream theengine fire detection system for itsG350, G450, G500 and G550 aircraft.

October2009

Value of all estimated 2009 business jet system, structures and component contracts, in the public

domain

$575

million

Value of low-wage manufacturing system, structures and component contracts, in the public domain -

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208 The growth of aircraft manufacturing in low-wage economies 2005-2009

PMI Media estimates of total value of 2009 business jet system, structures and component contracts $ 650

million

PMI Media estimates of low-wage manufacturing system, structures and component contracts -