FACC expands its business in China

Confirms strategic partnership with AVIC to manufacture passenger cabins for civil aircraft via Fesher Aviation Components subsidiary.

Related Topics:

FACC AG (Ried im Innkreis, Austria) and Aviation Industry Corporation of China (AVIC, Beijing, China) have re-confirmed their plans to enter into a strategic partnership for the integration of aircraft passenger cabins in China. In this cooperation, FACC will act as a consultant in passenger cabin  industrialization and manufacturing for civil aircraft destined for the Chinese market via the AVIC subsidiary, Fesher Aviation Components, based in Zhenjiang, about 250 km northwest of Shanghai.

The agreed cooperation follows an agreement between Airbus (Toulouse, France) and AVIC, according to which AVIC will set up an A330 Completion and Delivery Center in Tianjin that will likely cover activities such as cabin installation, aircraft painting, engine runs and aircraft delivery.

"We started our partnership with Chinese companies in early 2000, and have successfully expanded this with the support of our majority owner, AVIC," said Walter Stephan, FACC CEO. ”The planned cooperation in the production of the A330 passenger cabins will significantly widen our footprint in China and allow us to participate in the region’s rapid air traffic growth."

Within the scope of this cooperation, FACC’s proven experience in interior cabin development shall be combined with industrial capabilities and manufacturing in China. FACC will act as a consultant for interior development, change management, installation of production capabilities and industrialization of such in China, establishing a supply chain and also cabin integration. Production of the passenger cabins will be completed in the Fesher Aviation Components composite manufacturing facility in Zhenjiang. The new plant, a subsidiary of AVIC, was designed by FACC and its construction was carried out in line with FACC instructions. Beginning operations in mid-2014, the plant’s resources are available for FACC product relocations to ensure competitiveness and serves as part of its global supply chain, supported through FACC on-site management. Most of the plant’s capacity will be filled with production of FACC programs.

Over the next years, FACC will relocate additional projects from Austria to China, both to secure the company’s attractive earnings profile in the medium to long term, and also to free up capacities at the site in Austria to support future growth. Along with these relocations, FACC plans to reduce manufacturing costs, further decrease U.S. dollar (USD) exposure, create production space for the manufacturing of high-tech products and further expand its global manufacturing network.