NetComposites
Juniar Spraybooths

EADS and Airbus Select Preferred Bidders for Site Divestments

07 January 2008

EADS and Airbus have selected Latécoère in France, GKN in the UK, and MT Aerospace in Germany as preferred bidders for the sites of Méaulte and Saint Nazaire Ville in France, the Filton wing component and sub-assembly manufacturing facility in the UK, and Nordenham, Varel and Augsburg in Germany.

The EADS Board of Directors has authorized the management of EADS and Airbus to enter into negotiations with the preferred bidders on remaining issues and the required final due diligence, with the target to achieve a final agreement as soon as possible. Substantial progress on the share purchase agreement is expected in the first quarter of 2008. The EADS Board sees this decision as a clear commitment of the management to the Power8 targets.

The partner selection for Filton will allow for an outright sale of the manufacturing part of the site to GKN. For the French and German sites, the agreement with Latécoère and MT Aerospace will take the form of joint ventures, in which Airbus will retain a substantial minority shareholding. Airbus has the option to withdraw completely after three years. The merit of the joint venture structure is to empower Airbus to closely monitor the transition during the period of A350 XWB development and convergence of definition, while reducing substantially EADS’ cash outlays. Under the joint venture agreements, Airbus does not intend to interfere in the majority shareholder’s management of each plant.

The Airbus plants targeted for divestment employ a total of 7,400 employees, and represents € 1.4 billion of Airbus’ cost base in 2007. EADS Defence & Security's plant in Augsburg employs 2,000 employees and represents around € 450 million of its cost base in 2007. About 70 percent of the Augsburg plant's revenues come from Airbus.

""The ongoing divestment of sites and the building of a network of partners for Airbus allows EADS to focus its resources on core activities. It is a way to optimise Airbus' industrial set-up in the frame of the extended enterprise. At the same time, it helps EADS to reduce financing needs in a period strained by conjunction of costly programmes and weak dollar uncertainty,"" said EADS CEO, Louis Gallois.

“This decision is an important milestone for Airbus' new strategy and Power 8 programme. We will work to progress and conclude the negotiations as swiftly as possible. At the same time, we can now begin to establish long-term partnerships with three first tier suppliers for the A350 XWB, who will share workload, investment, risk and future benefits with us. The bidders will now be invited to the A350 XWB development plateau,"" said Airbus President and CEO Tom Enders. “This process will generate strong tier one partners for Airbus, and will allow the sites to further develop and acquire the required technologies to remain competitive in the future.”

The transactions are expected to be closed in summer 2008, when the sites are effectively transferred to the new owners. Meanwhile, these sites will continue to produce their parts for the existing Airbus products (A320 Family, A330/A340 Family, and A380) for which Airbus has an order book of some 3,000 aircraft.

A350 XWB work packages will now be allocated to the future tier one partners in Filton, Meaulte and St Nazaire, as well as Nordenham, Varel and Augsburg. The pace and schedule of final negotiations with the preferred bidders at this stage is consistent with the ongoing A350 XWB development timeline. The site divestment process for Laupheim continues in parallel.






Related / You might like...

Alvant Supports £28m Safran-Led Aircraft Landing Gear Project

Alvant has been appointed to work on a two-year, £28 million project titled Large Landing Gear of the Future, which aims to deliver a 30% weight reduction and assist the aerospace industry’s drive to reduce fuel consumption and carbon emissions.

3D Printed Drone Prototype Wins Red Dot 2018 Design Award

Hexadrone’s 3D printed Tundra prototype, manufactured by CRP Technology via laser sintering (LS) technology using Windform SP and Windform XT 2.0 carbon composite materials, has won the Red Dot Award 2018 in the drone category.

Norco Composites Invests in New Equipment

UK company Norco Composites has invested in a larger spray booth and a new cutting and kitting machine to enable the company to increase productivity in line with growing demand from its marine customers.