AEROSPACE INDUSTRY
Britain Revs Up
Aerospace activity is strong in the United Kingdom, headquarters of Rolls-Royce. The company, a leading global maker of aircraft engines, is firing on all cylinders after announcing in April 2004 it would invest $180 million over the next two years modernizing facilities in Derby, Bristol, Lancashire and Nottingham. In the Scottish town of East Kilbride, the company is replacing its 1950s vintage Aero Repair and Overhaul facility with an $81-million state-of-the-art plant. While less costly locations in Eastern Europe piqued Rolls-Royce's interest, the advanced skills and flexibility of East Kilbride's work force convinced the company to remain. A similarly antiquated Rolls facility in Hillington, which makes compressor systems, is being replaced by a new 538,213-sq.-ft. (50,000-sq.-m.) plant near Glasgow Airport. The company is spending $153 million constructing that site and relocating operations into it.
With larger numbers of its huge population flying more frequently, China represents a $144-billion opportunity for aircraft manufacturers over the coming 20 years, according to a Boeing forecast. In response, the Chinese aviation industry has set an ambitious target of developing large "western certified" aircraft. That may again spell opportunity for suppliers. In July 2004, Alcoa's Mill Products unit opened an aerospace center in Shanghai that will provide materials and services to aerospace buyers across Asia and the Pacific Rim. The center is located in a 40,000-sq.-ft. (3,716-sq.-m.) facility in the Wai Gao Qiao Free Trade Zone.
Despite transitory pressures in the U.S., aerospace investment and job creation is taking place at a noticeable clip. In April 2004, Virginia Governor Mark Warner joined other state and local officials in welcoming Aerojet, a unit of California-based GenCorp, Inc., to the Piedmont community of Gainesville. The company's $6.9-million investment at a 3,200-acre (1,295-hectare) property formerly held by Atlantic Research Corp. will create 149 new jobs. Aerojet plans to construct additional space at the site for R&D, testing and manufacturing propulsion systems. Existing Aerojet facilities in Arkansas, California and New Mexico had also been under consideration for the project.
South Carolina's proximity to commercial aviation hubs was among the reasons AvCraft recently moved into 180,000 sq. ft. (16,722 sq. m.) of vacant space at decommissioned Myrtle Beach Air Force Base. Its operations there are two-fold: a factory-owned service center will maintain and repair in-service Dornier 328 aircraft, and a completion facility will paint and install interiors in new 328s. "We're jamming," says Marvin Euchner, manager of the facility. "We're currently at about 60 employees, but will eventually be up to 350." The move consolidated operations out of Ohio and Texas.
With larger numbers of its huge population flying more frequently, China represents a $144-billion opportunity for aircraft manufacturers over the coming 20 years, according to a Boeing forecast. In response, the Chinese aviation industry has set an ambitious target of developing large "western certified" aircraft. That may again spell opportunity for suppliers. In July 2004, Alcoa's Mill Products unit opened an aerospace center in Shanghai that will provide materials and services to aerospace buyers across Asia and the Pacific Rim. The center is located in a 40,000-sq.-ft. (3,716-sq.-m.) facility in the Wai Gao Qiao Free Trade Zone.
Despite transitory pressures in the U.S., aerospace investment and job creation is taking place at a noticeable clip. In April 2004, Virginia Governor Mark Warner joined other state and local officials in welcoming Aerojet, a unit of California-based GenCorp, Inc., to the Piedmont community of Gainesville. The company's $6.9-million investment at a 3,200-acre (1,295-hectare) property formerly held by Atlantic Research Corp. will create 149 new jobs. Aerojet plans to construct additional space at the site for R&D, testing and manufacturing propulsion systems. Existing Aerojet facilities in Arkansas, California and New Mexico had also been under consideration for the project.
South Carolina's proximity to commercial aviation hubs was among the reasons AvCraft recently moved into 180,000 sq. ft. (16,722 sq. m.) of vacant space at decommissioned Myrtle Beach Air Force Base. Its operations there are two-fold: a factory-owned service center will maintain and repair in-service Dornier 328 aircraft, and a completion facility will paint and install interiors in new 328s. "We're jamming," says Marvin Euchner, manager of the facility. "We're currently at about 60 employees, but will eventually be up to 350." The move consolidated operations out of Ohio and Texas.
