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AIDC wins NT$5 b. order for MRJ planes from Japan's Mitsubishi.

Taipei, Oct. 13, 2010 (CENS)--The state-run Aerospace Industrial Development Corp. (AIDC), the largest aircraft manufacturer in Taiwan, recently claimed that it has won a NT$5 billion (US$161.3 million) order from Mitsubishi Heavy Industries of Japan for MRJ (Mitsubishi Regional Jet) planes.

AIDC's chairman Y.K. Hsieh said that his company would inaugurate an advanced compound-material center in Taichung, central Taiwan in November at a total investment of about NT$2 billion (US$64.5 million).

The Taiwanese aircraft maker is expected to report annual revenue of about NT$18 billion (US$580.65 million) this year and score pretax earnings of some NT$1 billion (US$31.25 million), a 10-year high. Hsieh stressed that AIDC would more aggressively transform itself into an original design manufacturing (ODM) firm for the global aerospace industry.

Noted for its strong capability of locally producing the indigenous defense fighter (IDF) jet fighters for the Taiwan Air Force, AIDC had suffered operating losses till two years ago. In the past, Hsieh said, AIDC faced strong competition from major rivals in developing nations such as China, Singapore, Czech, Poland etc., but in the future the company will further strengthen its ODM ability so as to run ahead of rivals.

AIDC has won Mitsubishi's orders for some key parts for 65 MRJs, and additional orders for another 60 such aircraft are being considered by the Japanese company.

To meet MRJ's requirement for weight-cutting, AIDC's compound-material center is scheduled to kick off production in January 2011. The center is expected to enter full-capacity production in 2014 with annual production value of NT$3 billion (US$96.8 million), Hsieh said.

Regarding the appreciating Japanese yen, Hsieh said that his company is pushing Mitsubishi to advance part of its payments so as to escape possible currency-exchange losses.

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Title Annotation:Aerospace Industrial Development Corp.; Mitsubishi Regional Jetplanes
Author:Liang, Quincy
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Oct 13, 2010
Words:302
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