MOU Stands To Bring Over $1 Billion In Aerospace Work To
On Thursday, Boeing and India's
Hindustan Aeronautics Limited signed a 10-year Memorandum of
Understanding (MOU) intended to bring more than US$1 billion of new
aerospace manufacturing work to India.
The agreement -- signed in New Delhi by Jim Albaugh, president
and CEO of Boeing Integrated Defense Systems, and Ashok K. Baweja,
chairman of HAL -- also includes sharing key Boeing business and
manufacturing tools with HAL.
"I am extremely pleased that Boeing and HAL have agreed to work
together for the mutual benefit of their companies and countries.
The agreement represents an important step in our efforts to build
solid long-term partnerships in India to make Boeing products more
globally competitive, while allowing HAL to grow and expand its
potential market around the world," said Albaugh.
"This is a significant step by two aerospace leaders that opens
up new avenues and areas of co-operations. HAL and Indian industry
gain from this long-term business arrangement in terms of
technology upgrade, while Boeing can look forward to a reliable
source for its product requirements," said Baweja.
Under the agreement, Boeing and HAL will explore business
opportunities aimed at transferring work packages to India with an
initial value of US$10-$20 million annually, increasing in size and
complexity as business opportunities develop. Boeing also will
support HAL in developing manufacturing processes and capabilities
needed for the production of hardware for Boeing and/or its
subcontractors. Boeing also will support the training and transfer
of Boeing best practices for Lean principles and Supplier and
Program Management to the extent allowed by US government and
Boeing Corporate policy. Initial training in Lean began in 2006 and
will continue through 2008.
Hindustan Aeronautics Limited agrees to offer Boeing competitive
pricing, to invest in the required manufacturing infrastructure,
and to join Boeing in seeking recognition by the government of
India for the value of the work packages and technology transfers
in support of credits against existing or future offset
Boeing's efforts on this project will be led and managed through
its Integrated Defense Systems business unit.
The American planemaker's history in India reaches back more
than 60 years, in working with airline customers, parts suppliers,
research institutes and others to provide products and services. In
December 2003, Boeing established a wholly owned subsidiary, Boeing
International Corporation India Private Limited (BICIPL), to
support the growing demands of India's aviation, aerospace and
Hindustan Aeronautics Limited is the premier aerospace company
involved in the design, development, manufacture and maintenance of
advanced fighters, trainers, helicopters and associated engines,
accessories, avionics and airborne systems. Headquartered in
Bangalore, HAL has 18 production units and nine research and design
centers in India with 32,000 employees.