Andalucia Aerospace Industry

The aerospace industry of Andalucia.
The aerospace industry of Andalucia.

Andalucia, although perhaps better known Tourism, Agriculture and Service does have a small, expanding Aerospace Industry. The are currently 106 different companies operating in the Aerospace Industry in Andalucia. Their total turnover is 800m € in 2005. Not a huge amount when compared to the annual Andalucian GDP of 127.000 million € but with a 65% growth over the last five years it is a cutting edge industry to be monitored and encouraged.

This is precisely what the Regional Government are doing and a clear example of this was the Sponsorship as guest country of the Airtec International Aerospace supply fair which took place in October. 2006 in Frankfurt.

Of the 106 companies in the Andalucia Aerospace sector, 39 are in tooling and Mechanical activities, 24 in Engineering and Consulting and 15 in associated Services. Altogether these companies employed 5500 people in 2005; 46% more than in 2002.

To understand the industry in the region one has to appreciate that there are two ‘prime’ two companies that dominate. One is Airbus who employ 513 and the other is their parent company EADS-CASA who directly employ 2143. EADS-CASA is the company that was formed in July 2000 as a result of the fusion of the German DaimlerChrysler Aerospace AG, the French Aerospatiale Matra and the Spanish

CASA

Of the 800 million Euro 2005 Andalucia Aerospace Companies turnover 312m Euro is dedicated to Airbus Projects, 367 million Euro to EADS-CASA Projects, and 115 million to the remainder.

The main projects currently underway are the FAL (Final assembly line) for EADS-CASA at San Pablo (Airport) outside Seville for the Assembly of the C-212, C-235, and C-295 Military aeroplanes.

The future project that the whole of the Andalucian Aerospace Industry is excited about is the Airbus A400M Military Transport plane. This is the twin engine turbo prop (with 8 fins) capable of carrying 32 tonnes or 120 personnel at 700km/hr for 4.100 km without refuelling. It is also the first Airbus plane to be made with Carbon Fibre (not Metal) wings.

The FAL is currently under construction by EADS-CASA at San Pablo. The Tail Fins are being made by EADS-CASA in Tablada, the wings in Filton UK, Fuselage sections in Bremen Germany. Airbus Military have now sold 100 planes at a list price of 100m Euros each to Great Britain, Germany, France, Spain, Luxembourg, Turkey, Belgium, South Africa, Malaysia. The first plane should roll out of the hanger at the end of 2007 for trails. By the end of 2008 productions should be up to 3 units a month and the first delivery to the French Air Force in September 2009. Without doubt when this plane first takes to the air at the end of 2007 the spotlight will be on Seville.

Additional offshoot for this will be the new 90m Euro A400M flight training centre adjacent to the EADS-CASA assembly complex . This will include a flight simulator for pilots, training for mechanical teams, fleet managers and all training associated with the aeroplane.

There are companies such as SK10 in Puerto Real and Puerto de Santa Maria who employ 220 and can be called Tier 1 companies, in that they sell directly to the aeroplane manufactures. SK10 mounts pieces and structures for the A300 to A380 range of Airbus and C235 and C295. Including the belly-fairing substructure for the ill fated A380.

SK10 has a subsidiary company SK3000 which will be based in Aeropolis.

Most of the companies in Andalucia are know as the Tier 2 and Tier 3 ‘auxiliary’ supporting companies. Their turnover has also grown from 67million Euro in 2001 to 171million Euro in 2005. This activity is generally confined to Mechanical activities such as assembly and composite materials fabrication.

An excellent report entitled “Andalucia Aerospace Sector 2001-2005” has been prepared by consultant company Airtec of the PTA in Malaga which outlines the current status of the Andalucian aerospace industry.

It is noted in the report that there is a big difference in the productivity of the two prime companies which is 235 thousand Euro per employee and the Auxiliary companies where production is 55 thousand Euro per employee. This is said to be due to staff training but perhaps there is more to it. Economies of scale, small companies in start up phase and inaccurate reporting due to sub contracting.

Aertec warned that Research and Development (R&D) expenditure is only 2% of the turnover in 2005 and most company’s technological profile is linked to mechanical activity.

Most auxiliarily companies are very reliant on the so called prime companys, and their sub-contracting policy and is still largely based on “Built to Print” models. Additionally There is not an specific R+D Centre who stimulate this market

The Andalucian government is keen to develop and help this sector of Industry and a number of inactivates have been set up over the last few years.

Since October 2002 there has been a masters degree course “Máster en Tecnologías y Gestión de la Industria Aeronáutica” at the Universidad de Sevilla, the lectures take place at the Escuela de Ingenieros de Sevilla

There is a “Foro Aeronáutico de Andalucía”, an initiative of the “Escuela Superior de Ingenieros de Sevilla” and the regional Government. The talks take place on the first Tuesday of every month (in term time) in the Salon de Grados at the school and are organised by the Professor of Engineering Carlos Gomez Camacho.

There is a trade fair in the FIBES conference centre Seville each April where the Aerospace Industry takes part.

Special grants are available for companies in the Aerospace Industry in Andalucia, details were published in the BOJA (Boletin Oficial de la Junta de Andalucia) of 17 January 2002 from the Order of 21 de December 2001.

In 2004 the government put into action the Plan Director del Sector Aeronautico.

The Parque Tecnológico Aeroespacial Aeropolis has been set up near Seville

However since the Airtec report the government has stepped up a gear in its support for the industry which offers a cutting edge image for the region. It has decided on five declared lines of action.

  1. Creation of more added value activities evolution towards the location of new prime companies focused to avionics, systems and engines.
  2. Productivity improvement via process improvement.
  3. Promote research and development activities.
  4. Promote International Commercial development of the auxiliary companies.
  5. To identify new opportunities related to A400M Final Assembly Line.

And to continue with Administration Support of the Industry generally but in particular :

  • Financial support.
  • Appropriate infrastructures development.
  • Providing qualified personnel in accordance with sector demands.

The following initiates have been reported.

For Prime Companies: Francisco Mencia has announced that the Government is supporting the creation of three more Andalucian “prime companies” in three different Subsectors. He said that by 2008 these three companies should be converted to Prime Companies. Although he would not name the companies, Francisco Vallejo in another interview mentioned Sacesa, Elimco and SK3000 as by 2008 being a “principal nucleus capable of adsorbing complete work packages”

For productivity: Complete the infrastructures at Aeropolis and Tecno Bahia in Cadiz. Aeropolis will need enlarging. Creation of a computer network on the SAP system called Helice.net

For R&D: Creation of a special department within the Agency IDEA for aerospace sector and creation the Fundacion Helice. More specifically the future creation of Centro Aeroespacial de Tecnología Avanzada de Andalucía” (CATEC), an research organisation dedicated to three specialities: structures and materials; electronics, avionics and systems; and propulsion (motors and fuel). The first phase will have a budget of 21m euros and the second which will be developed from 2008 to 2010 will have another 27 million euros.

For International Commerce: Support Auxiliary companies at trade shows such a Aertec. It must be noted that websites on the Internet are a key part of commercial development and marketing . The quality and scope of the websites of the Andalucian aerospace companies is far inferior to their German counterparts. Extenda's website is appalling and Fundacion Helice do not have one. The Magazine 'Aeronauutica Andaluza' never mentions the Internet. Has this area been completely overlooked?

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