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AIDC to invest US$200m. to build new plants within 5 years.

Taipei, Nov.27, 2012 (CENS) -- Taiwan's state-owned Aerospace Industrial Development Corp. (AIDC) has announced an expansion plan, calling for investing NT$6 billion (US$200 million) within five years to build military aircraft maintenance hangars, aircraft engine housing plants, maintenance centers, commercial aircraft fuselage milling plants, as well as a five-axis machine project, all of which is expected to raise revenue from NT$22.3 billion (US$743.3 million) estimated in 2012 to NT$30 billion (US$1 billion) in 2019.

After inking a memorandum of understanding with U.S.'s largest fighter manufacturer, Lockheed Martin, to jointly explore opportunities for the Taiwan F-16 A/B Retrofit Program, AIDC plans to invest NT$1.3 billion (US$43.3 million) to establish a maintenance hangar in its plant in Shalu, Taichung City, central Taiwan to enhance maintenance and assembly capability.

AIDC's general manager Y.N Hsu said that the firm has landed orders for engine housing from Rolls-Royce, GE Aviation, P&W (Pratt & Whitney), and plans to invest NT$1.1 billion (US$36.67 million) to set up an engine housing plant in Kangshan, Kaohsiung City, southern Taiwan.

Hsu indicated that AIDC plans to propose two investment projects for engine housing and maintenance plants to the MOEA, with the project duration scheduled for six years and to start construction from the end of 2013.

With reliable performance from partners, AIDC will increase outsourcing for engine housing, aircraft fuselage, and tools from NT$1.193 billion (US$39.77 million) in 2012 to NT$1.5 billion (US$50 million) in 2013, benefitting 105 subcontractors in Taiwan.

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Title Annotation:Aerospace Industrial Development Corp.
Publication:The Taiwan Economic News
Article Type:Brief article
Date:Nov 27, 2012
Words:268
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