Aerospace News: Alabama, Machine Tools, Gov. Beshear Participates in Ribbon-Cutting, and more!

Alabama Law Targets
Aerospace Sector Suppliers

Governor Robert Bentley in April signed legislation aimed at attracting thousands of additional jobs to Alabama. The Alabama Commercial Aviation Business Improvement Act will help the state recruit more aerospace industry suppliers. Those suppliers are expected to locate in the region as Airbus builds its first U.S.-based production facility in Mobile. Groundbreaking for the Airbus facility is scheduled for next week. The legislation signed by Governor Bentley levels the playing field between Alabama and nearby states in the recruitment of supplier companies and the additional jobs they will bring.

"Putting Alabamians back to work is my number-one priority," Governor Bentley said. "This bill will make sure Alabama remains competitive with neighboring states in attracting supplier jobs. Already, Airbus will directly provide 1,000 jobs in Mobile, and more than 3,000 people will be employed in the construction phase of the Airbus facility. As suppliers move in, we can attract thousands of additional jobs as well. We want those jobs for the people of Alabama. This legislation will help us accomplish our goal."

The Alabama Commercial Aviation Business Improvement Act (Senate Bill 238) applies to a small category of lawsuits which involve manufacturers of commercial aircraft with 100 seats or more. Neighboring states already have similar laws in place. The bill will protect the rights of Alabama citizens to bring suit against manufacturers, but will also protect manufacturers from out-of-state and foreign plaintiffs who may seek to file suit in Alabama simply because the manufacturer located its plant here.

"Without this bill, suppliers could very easily choose to build in Florida or Mississippi, which already have similar laws," Governor Bentley said. "With this legislation, Alabama is now on a level playing field, and we can recruit more supplier jobs for people in our state."

The legislation was sponsored by Senator Cam Ward, Senator Vivian Figures and Representative Bill Poole.

"Governor Bentley and Commerce Secretary Canfield have made job creation their top priority, and I am glad to do my part to help in their vision," Senator Ward said. "This will do so much to even the playing field with neighboring states to help attract Tier 1 and Tier 2 suppliers to Alabama. It is common sense business legislation like this that I have focused on during my time in the Senate."

"We are now set and ready to go towards realizing the thousands of jobs that Airbus suppliers will bring to Alabama," Senator Figures said. "I enjoyed working on this legislation with the bi-partisan team to make this a reality. Coming together to work out all of the details with the leadership of Governor Bentley and others has been a joy, knowing that Alabama will benefit greatly economically."

"I am excited at the prospect of bringing Airbus and the aerospace industry to Alabama and am proud to have played a role in passing this important legislation," Representative Poole said. "The recruitment of the aerospace industry to our state has the potential to be transformative in the same way that the automotive industry has changed our state. The aerospace industry will bring thousands of quality jobs with good wages and benefits that will benefit our citizens for many years to come."

The Alabama Commercial Aviation Business Improvement Act provides that the manufacturer would be liable for causes of action occurring no more than 12 years after delivery of the aircraft to the first purchaser or 12 years from the replacement or addition of a component part that was the cause of an accident. If the cause of action occurs within the 12-year deadline, the plaintiff still has two years to bring the action.

The aerospace industry is among 11 business sectors targeted for growth in Accelerate Alabama, the state's long-term plan for economic development.

"We want Alabama to be the center of the new aerospace corridor that will be created by the announcement that Airbus will build its U.S. plant in the state," said Greg Canfield, Secretary of the Alabama Department of Commerce. "This legislation keeps us competitive and on track to locate the suppliers and new jobs that Airbus will bring to the area."

The Alabama Department of Commerce estimates that the Airbus plant will have a $409 million annual impact on the state's economy. In addition to the 1,000 jobs provided by Airbus and the 3,000 construction-related jobs, the Department of Commerce also estimates another 3,700 Alabamians could be employed by Airbus suppliers locating in the state.

Hundreds of New Jobs Coming to Alabama as Commercial Jet Opens Aviation Services Facility in Dothan

DOTHAN, AL - Governor Robert Bentley, House Speaker Mike Hubbard and Alabama Department of Commerce Secretary Greg Canfield joined company and community leaders in Dothan Friday to announce that Commercial Jet will invest $12 million to open a new 400,000 square-foot facility at Dothan Regional Airport in Dale County. The facility will employ hundreds of people.

The opening of the new facility will more than triple the company's capacity to provide freighter conversion and MRO (maintenance, repair and overhaul) services.

"I am proud that the State of Alabama could play a key role in providing hundreds of new jobs for the people of Dothan and the Wiregrass area," Governor Bentley said. "We know that Alabama is the ideal location for the aerospace and aviation industries. This announcement further strengthens our emerging role as an aerospace leader in the Southeast. Nothing is more important to me than creating new jobs, and we will continue our work to recruit companies and help them succeed."

"Because of hard work and a committed, skilled workforce, Alabama has enjoyed tremendous success in industrial recruitment and job creation over the past few years, and today's announcement is proof we are not ready to rest on our laurels," said Speaker Hubbard (R-Auburn). "If Alabama is going to remain competitive and continue its impressive track record, we must continue to focus on creating the 21st Century jobs that companies like Commercial Jet and fields like the aerospace industry provide. With vision and determination, I believe we can make the Wiregrass and the rest of Alabama a major aerospace hub for the nation."

Secretary Canfield expressed his appreciation to the company for its decision to locate the facility in the Dale County area and said that the announcement is another indication that Alabama is well on its way to meeting its targeted industry goals set forth in the state's economic development plan, Accelerate Alabama.

The Dothan Houston County Airport Authority has initiated the construction, to be completed in stages with the final building to be delivered in October this year. "Our new facility will broaden our ability to deliver high-quality integrated aviation services to commercial airlines and aircraft owners and operators," said David M. Sandri, company president.

Commercial Jet's new maintenance facility includes multiple hangars, back shops, stores and offices, with extensive apron space for aircraft parking and servicing.

John Schildroth, vice president and general manager for the Dothan facility, said Commercial Jet plans to hire several hundred trained and experienced aircraft technicians in the local market within the next few years.

"We are already getting a flow of new orders for our new facility, which will be open for business as soon as May of this year," Schildroth said.

The company said state officials and local civic and business leaders have given staunch support to Commercial Jet's expansion plans.

"This was all made possible through their efforts," said Sandri, citing Governor Bentley, Speaker Hubbard, House Representative Paul Lee, Secretary of Commerce Greg Canfield, Dothan Mayor Mike Schmitz, the Dale County Commission, the Houston County Commission, the Ozark-Dale County Economic Development Corporation, the Dothan Houston Airport Authority, the Dothan Chamber of Commerce and others.

Demand from Automobile, Aerospace and Defence industries in Emerging Economies to Fuel Global Machine Tools and Cutting Tools Market, says Frost & Sullivan

Focus is on developing innovative, technologically advanced, high-quality products

Machine tools and cutting tools are used in a wide range of applications that span multiple industries. Market growth is expected to be driven by demand from aerospace and defence, mining, power generation and automobile industries.

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Global Machine Tools and Cutting Tools Market, finds that the market earned revenues of $15.72 billion in 2012 and estimates this to reach $21.18 billion in 2017. The research covers metal cutting, metal forming and metal finishing segments across North America, Europe (Includes Russia and other CIS countries), Middle East, Africa (EMEA), Asia-Pacific (APAC) and Latin America.

"Despite the economic downturn, the demand for machine tools and cutting tools is expected to grow in emerging economies such as China, India, Brazil and Russia," noted Frost & Sullivan Industrial Automation & Process Control Research Analyst Guru Mahesh. "Increased investments in the automobile, aerospace and defence industries that incorporate these tools in their production process will boost uptake levels."

The growth of the aerospace and defence industry - with its widespread use of high-precision cutting tools, super abrasives and metal forming and fabrication tools - in Europe, Russia, China and India spells good news for market prospects.

The heightened demand for advanced materials, like nickel alloys and titanium alloys, by the aerospace industry is set to further promote the use of machine tools and cutting tools.

"The biggest challenge tool manufacturers face is that these advanced materials are very difficult to machine and tend to increase tool deformation," stated Mahesh. "Investments in R&D are likely to address this challenge, aiding market growth."

Tool manufacturers are investing in R&D to develop tools that are coated with materials like titanium carbide, titanium nitride and aluminium oxide etc. The coating process is done either by chemical vapour deposition (CVD) or by physical vapour deposition (PVD). Such tools are capable of withstanding the high amount of heat produced, preventing tool deformation.

Despite being the leading manufacturers of machine tools and cutting tools, China and India have been unable to address the spiralling demand for technologically advanced, high-quality products. This has been due to the lack of local expertise. Instead, this need has been met by German manufacturers.

"Focused R&D strategies by manufacturers, not just in China and India, but across all potentially high-growth emerging country markets, will support the development of innovative, high-quality products," advised Mahesh. "Providing technical training is also crucial in leveraging the market's growth potential."

If you are interested in more information on this research, please send an email to Julia Nikishkina, Corporate Communications, at julia.nikishkina@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Global Machine Tools and Cutting Tools Market is part of the Automation & Process Control Growth Partnership Service programme. Frost & Sullivan's related research services include: Global Industrial Valves and Actuators Market, European Pumps Market for Commercial and Industrial Buildings, Industrial Valves and Actuators Market in Russia and CIS, and European Hydraulic Equipment Market for Industrial and Mobile Applications. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Gov. Beshear Participates in Ribbon-Cutting for DHL's Global Hub in
Northern Kentucky

International logistics leader inaugurates its newly expanded hub for the Americas; project represents a $105 million, four-year effort

Kentucky Governor Steve Beshear joined DHL and local officials on June 13th to unveil the company's newly expanded and upgraded global hub at the Cincinnati/Northern Kentucky International Airport (CVG). DHL Express, a division of leading global logistics company DHL, has invested $105 million over the past four years to enhance infrastructure and add state-of-the-art sorting capabilities to meet increasing demand.

"DHL Express is a valuable resource in the Commonwealth, not only for our strong logistics network, but in particular for the northern Kentucky community, which has benefited from the company's continued investment and development," said Gov. Beshear. "DHL's partnership with the Cincinnati/Northern Kentucky International Airport and with our state has created economic growth now and for years to come."

The expansion includes a new 180,000-square-foot sorting facility specifically designed to accommodate larger express shipments, an expanded south ramp for additional wide-body aircraft, an employee and pilot building, and a facility-wide information technology upgrade. The expanded global hub sits at the heart of the DHL U.S. network, with flights connecting customers from more than 220 countries and territories worldwide to every corner of the United States. In addition to global hubs in Hong Kong and Germany, the CVG hub completes the backbone of the DHL intercontinental network.

"The completion of the CVG hub is a further milestone in the continuous expansion of our international express network," said Frank Appel, CEO Deutsche Post DHL. "We are growing, building for the future and providing U.S. companies with the logistics support they need to succeed globally."

With more than 2,000 employees in northern Kentucky, DHL is part of Deutsche Post DHL, headquartered in Bonn, Germany. Nearly 180 European companies have a presence in the Commonwealth, collectively employing more than 26,000 people.

"I was thrilled to learn of DHL's expansion and even more elated to see all the hard work and investment come to fruition," said Sen. John Schickel, of Union. "DHL is a major player both in the US and abroad, and we in northern Kentucky are happy to partner with them to serve their clients. We have the right people and the right location."

"The expansion and investment DHL has made at their global hub is something that I believe will have a positive long-term impact on the economy of Boone County, northern Kentucky and Cincinnati," said Rep. Adam Koenig, of Erlanger. "It also sends a message that our region is an outstanding place for companies to locate, and that we are open for business."

"DHL's continued expansion sets the tone for a vibrant business environment in northern Kentucky" said Gary Moore, Boone County judge-executive and Northern Kentucky Tri-County Economic Development Corporation chairman. "We take great pride as a community in the achievements of this dynamic company and the global reach it provides for our region."

From UtahPolicy.com, June 9, 2013:

New Additions Fly High
in the Aerospace Industry

MSC Aerospace and its subsidiaries Metalcraft Technologies and SyberJet Aircraft, along with the Governor's Office of Economic Development and the Economic Development Corporation of Utah, announced today that MSC will commence a major expansion in Southern Utah. The company plans to expand their current Cedar City facilities in order to create more manufacturing capabilities throughout a 20 year agreement with Utah.

"Utah's Aerospace industry is rapidly growing. We have the physical space, the technology and the workforce for aerospace companies to rapidly grow operations in Utah," said Governor Gary R. Herbert. "I'm confident the MSC expansion will attract additional support vendors and other aerospace companies."

MTI is an AS 9100:2009 Rev C aircraft parts and aero-structures manufacturer. MTI fabricates, processes, and assembles a variety of detail parts, sub-assemblies, and related tooling using aluminum, titanium, and stainless steel in accordance with customer prints and specifications. MTI's customers are proprietary aircraft producers (OEMs) who include Boeing, Bombardier's Learjet, General Electric, Gulfstream, Lockheed, Northrop Grumman, SyberJet, Vought, and others.

"For nearly 25 years MTI has been a valuable member of our community and operates two manufacturing facilities with over 250,000 sq. ft. in Cedar City. MTI and its parent company MSC are cornerstones of our manufacturing community, providing our residents with good jobs and supplying the nation's aerospace industry with top-quality products," said Cedar City Mayor, Joe Burgess. "We take pride in the reputation they have built in their industry, and we look forward to a bright and exciting future with MSC. We're proud that Cedar City will be home to the amazing SJ30 aircraft, and we anticipate a future partnership of success and innovation."

Utah's Aerospace and Defense economic cluster represents about 4.5 percent of all state wages, and the average wage in this industry is roughly 90 percent higher than Utah's average annual wage.

SJA produces the world's fastest and longest range seven-seat light business jet - the SyberJet SJ30. The SJ30 is single pilot FAA certified jet with a top speed of Mach 0.83 (486 kts / 560 mph) and a 2,500 nautical mile range. It maintains sea level cabin pressure up to 41,000 feet (maximum flight ceiling is 49,000 feet). The SJ30 holds three world records for speed and distance. It is designed with a 30 degree swept wing for high speed and fuel efficient cruising and with leading edge slats and flaps that are optimized for low speed approaches and gentle landings. These state-of-the-art aerodynamic features, coupled with the efficiency and power of Williams FJ44 engines and the advanced technology of SyberVisionTM avionics by Honeywell, make the SJ30 best in class.

MSC and its subsidiaries MTI and SJA will invest millions into the project and will pay an estimated $127 million in new state tax revenue over the 20 year life of the project. Over the lifetime of the agreement, the company will pay over $1 billion in new state wages to 1,200 incented jobs.

David J. Grant, Chairman of MSC said, "MSC is excited to continue its long standing relationships with Cedar City, Iron County, and the state of Utah. We are proud of our track record of success in the aerospace industry and hope for a bright future in Southern Utah."

"The expansion and recruitment of MSC into Iron County is the latest punctuation mark on what global companies are coming to know, that Utah IS the Best State for Business and Careers," said Christopher M. Conabee, GOED Managing Director for Corporate Recruitment.

This project was highly competitive, and MSC has other facilities in Texas. The GOED Board of Directors has approved a 20 year Economic Development Tax Increment Financing (EDTIF) post-performance refundable tax credit of $32 million for MTI and SJA, or 25 percent of the $127 million in new state tax revenues which will be collected by the state.

ThyssenKrupp Aerospace announces new facility for Bangalore, India

ThyssenKrupp Aerospace will invest into a new aerospace dedicated facility in Bangalore, India. The subsidiary of the German ThyssenKrupp AG Corporation announced April 24th that it has purchased land in the Special Economic Zone (SEZ) of Bangalore on which the new site service center will be erected. The new facility with a covered area of 35.000 square feet (3.500 square meters) is expected to open early 2014 and will serve customers locally in the fast growing Indian aerospace industry.

With this investment ThyssenKrupp Aerospace is strengthening its global network of aerospace dedicated facilities. Especially the fast growing Indian market place offers many opportunities of which ThyssenKrupp Aerospace plans to add its proven solutions and competencies.

Through a sales office established in 2006, ThyssenKrupp Aerospace is already present in the region and successfully active in its market. Currently, deliveries are served from other locations in Europe, North America and Asia Pacific.

"That will change with the new regional service center," said ThyssenKrupp Aerospace president Jürgen Funke in the wake of the recent Aero India trade fair. "We will be able to expand our services locally to an entirely different level and supply customers with raw materials as well as local value added and logistics services with the shortest possible lead times. Services will comprise stockholding, processing and delivering of plate, sheet, bar and tube product for the full range of aerospace metals covering aluminum, titanium as well as steel." The company expects even closer cooperation with existing customers and additional interest from the fast growing Indian Aerospace Industry and other markets in the region.

New Additions Fly High
in the Aerospace Industry

MSC Aerospace to Establish operations in Iron County

Salt Lake City, Utah - MSC Aerospace (MSC) and its subsidiaries Metalcraft Technologies (MTI) and SyberJet Aircraft (SJA), along with the Governor's Office of Economic Development (GOED) and the Economic Development Corporation of Utah (EDCU), announced June 6th that MSC will commence a major expansion in Southern Utah. The company plans to expand their current Cedar City facilities in order to create more manufacturing capabilities throughout a 20 year agreement with Utah.