Boeing and Tata Announce Aerospace Joint Venture in India

Discussion in 'Defence & Strategic Issues' started by Yusuf, Nov 9, 2015.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    DUBAI, United Arab Emirates, Nov. 9, 2015 – Boeing [NYSE: BA] and Tata Advanced Systems today announced a joint venture (JV) that will manufacture aerostructures for aircraft and collaborate on integrated systems development opportunities in India.

    The JV will initially create a manufacturing center of excellence to produce aerostructures for the AH-64 Apache helicopter and to compete for additional manufacturing work packages across Boeing platforms, both commercial and defense. Boeing and Tata Advanced Systems intend to grow the JV partnership in the future with a focus on opportunities to collaborate on development and selling of integrated systems.

    “This partnership will capitalize on India’s industrial capability, innovation and talent to contribute to Boeing’s long-term competitiveness and position us for future growth in the global marketplace,” said Chris Chadwick, president and CEO of Boeing Defense, Space & Security. “It is a demonstration of our commitment to further accelerate our partnership with one of the world’s fastest growing economies.”

    “This agreement to establish a JV will propel the growth of the Indian aerospace sector by leveraging the world-class competencies of TASL and its supplier eco-system, as well as provide access to India’s world-class manufacturing capability, skilled talent and competitive cost structures,” said S. Ramadorai, chairman, Tata Advanced Systems.

    “Over the last 12 months, we have doubled our sourcing from India and are committed to continue that journey,” said Pratyush Kumar, president, Boeing India. “Our commitment was demonstrated by Boeing Chairman Jim McNerney’s presence at the recently concluded aerospace Innovation Summit in New Delhi and this JV is a clear example of Boeing’s long-term commitment to Make in India.”

    “TASL is one of the select few in the private sector in India undertaking manufacturing and assembly of both aircraft and helicopters. The resulting scale and expertise at which the company now operates makes it well-positioned for large-scale systems integration work in India’s aerospace and defense sector,” said Sukaran Singh, MD & CEO, Tata Advanced Systems.

    Boeing and Tata group companies have established partnerships in India to manufacture aerostructures for Boeing’s commercial and military aircraft. Tata Advanced Materials has delivered composite panels for the power and mission equipment cabinets and auxiliary power unit door fairings for the P-8I long-range maritime surveillance and anti-submarine warfare aircraft. TAL Manufacturing Solutions is manufacturing complex floor beams out of composite materials for the Boeing 787-9, the most modern aircraft with exceptional environmental and fuel-efficient capabilities. TAL Manufacturing Solutions has provided ground support equipment for the C-17 Globemaster III strategic airlifter.

    About Tata Advanced Systems
    Tata Advanced Systems Limited is a wholly owned subsidiary of Tata Sons, focused on providing integrated solutions for Aerospace, Defence and Homeland Security. In a short span of five years, Tata Advanced Systems Limited has become a significant player in the global Aerospace market, becoming the premier manufacturing partner for global OEMs, including Boeing, Airbus Group, Sikorsky Aircraft Corporation, Lockheed Martin Aeronautics, Pilatus Aircraft Ltd, Cobham Mission Equipment, RUAG Aviation, as well as the Government of India’s Defence Research & Development Organisation. It has capabilities throughout the entire Aerospace value chain from design to full aircraft assembly, and is well positioned in other areas that include missiles, radars, unmanned aerial systems, command and control systems, optronics and homeland security.

    About Boeing
    Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems and performance-based logistics and training.

    Boeing has been active in India for more than 75 years with its commercial airplanes providing the mainstay of India’s civil aviation sector. More recently its military aircraft have played an important role in the modernization and mission-readiness of India’s defense forces. Boeing is focused on delivering value to its Indian customers with its advanced technologies and performance driven aircraft underscored by life-cycle support services. Boeing is also committed to creating sustainable value in the Indian aerospace sector – developing local suppliers, pursuing business partnerships and shaping research and technical collaborations with Indian companies and institutions. For more information, visit www.boeing.co.in.


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  3. Shaitan

    Shaitan Zandu balm all day Senior Member

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    Boeing choose a great partner.
     
  4. tejas warrior

    tejas warrior Regular Member

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    If Tata Advanced Systems can work for Boeing, surely they can outsource some work from HAL. Wat's stopping this ?
     
  5. Shaitan

    Shaitan Zandu balm all day Senior Member

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    DRDO realizes this actually.

    Modules of LCA Mark 2 and AMCA will most likely be done by private firms.

    Rustom 2 also might have a big private firm participation as well.
     
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  6. tejas warrior

    tejas warrior Regular Member

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    One question, does this contract with Tata Advanced Systems is due to deal for Apache OR this is just outsourcing of work to TAS for cheaper work ?

    Will TAS will produce aerostructures only for Indian Apache OR for Apache sold globally and in large numbers ?
     
  7. Dash

    Dash New Member

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    @tejas warrior from what it looks like TAS will be a part of Boieng global supply chain.

     
  8. myana

    myana Regular Member

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    Only because of offset clause in the contract.
     
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  9. tejas warrior

    tejas warrior Regular Member

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    Then it's just peanuts, nothing more.
     
  10. myana

    myana Regular Member

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    Contract is valued at 2.5billion dollars, offset is valued at 600million dollars ~25% and offset is mainly limited at aero-structures and few subsystems, They are not sharing any sensitive technologies not even self-sealing fuel tank technology. But still can leverage on the business generated by global sales of Apaches & Chinooks to other nations too.

     
  11. uoftotaku

    uoftotaku Regular Member

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    Of course its only because of the offset requirement! BUT...that doesn't mean its a short term deal. Tata signed a similar deal with Sikorsky for fuselage production for S-92's in anticipation of offsets for the VVIP Chopper deal. However even though S-92 ultimately failed, Tata continues to produce S-92 fuselages for both civilian and military models ( there was news recently of Tata starting assembly for the fuselages ultimately destined for the new Marine One choppers )

    Tata is generally very serious about its production quality. This relationship with Boeing therefore will go far beyond this small first step. Once a good rapport is established and consistency seen, I'm sure the relationship will grow.
     

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