Do You Know That Airbus May Set Up Alternator Assembly Line Her

• Posted by ri mei July 22, 2020 - Filed in Arts & Culture - #alternator assembly line  - 908 views

   

  Europe after China, as the company seeks to reduce its production costs by at least 20-30% and serve the Indian market better.

  Karnataka and Tamil Nadu are two states being considered by Airbus for the Final Assembly Line (FAL), which will include around 2,600 metre long runway and facilities for painting, tests and final delivery of the plane. Depending on specific requirements and other costs, Airbus may have to invest around $600 million in establishing the facility in India and employ anywhere between 600 and 1,000 people across various processes.

  The new alternator assembly line, expected to be established within 3-4 years, will help in growing India’s commercial aviation supplier market from around $1.5 billion to almost $3.8 billion by 2014, providing more opportunities for the local aviation companies, including QuEST and Dynamatic. Chief executive Tom Enders said last month that his company will need to have production facilities in the US, China and India in order to remain competitive. Airbus, which is set to roll roll out its first China-made A320 from its assembly line in Tianjin, is seeking to reduce its production costs and globalise its manufacturing by establishing such units outside Europe. The company has three aircraft assembly units in France, Germany and China. “We currently do complex assembly sourcing from India, very similar to what we started doing in China few years ago. We believe what we did in China can be repeated here,” said Airbus head industrial cooperation projects, Dwarakanath Srinivasan.

  When the FAL is established by Airbus in India, it will have a capacity of ‘Rate 4’, which is a production capacity of four planes in a month.

  “Airbus aims to have Rate 4 capacity for producing A320 in China, and India should be no different,” the person added. “An Indian assembly line will be at least 20-30% cheaper than a similar unit in Germany or France because of much lower labour costs,” he said.

  Rising operational costs and pressure on profitability are reasons for Airbus to establish manufacturing units in locations such as China and India. “Most of the cost incurred by Airbus is in Euros, but most of its products are priced using dollars. Depreciation of the dollar against the euro has a negative impact on profitability of the Airbus,” said Madusudanan Ramani, an analyst at research firm Frost & Sullivan. “It is estimated that every 10 cents of a rise translates into a one billion euro rise in cost of production in Europe,” he added. Airbus’ parent company EADS, which procured services and products worth over $138 million in 2007, recently said that it will increase sourcing from India 10-fold over the next ten years. An aircraft assembly line will help India’s domestic aviation engineering companies such as QuEST to gain more business as Airbus will bring its top tier suppliers to the country for serving the manufacturing unit.

  “We are already set to double our manufacturing revenues from around $8 million last year to $16 million by March 2010. If an assembly line comes up, it will mean a lot more business for us and many others,” said Bejoy George, vice president and chief marketing officer of QuEST.

  QuEST, which has acquired a 300 acre plot in a special economic zone (SEZ) in Belgaum for establishing its manufacturing facilities hopes to gain more business from Airbus’ primary suppliers who may have to set up units in India when the FAL comes up. Airbus on its part, has been asking its suppliers to increase sourcing from India to help build the required ecosystem for setting up an assembly line.

  “Many of our partners including OEMs are already sourcing from companies such as QuEST and Dynamatic. We are asking them to look at India more than before,” said Mr Srinivasan.
  However, Airbus’ plan to expanding its production centres outside Europe is expected to face strong resistance from political lobbyists in the region.

  “Airbus might have to cut its production of aircraft from some of its existing facilities in Europe. It might face pressure from some European governments, its biggest shareholders not to cut jobs especially in the recessionary times,” said Mr Ramani.