May 2008 Edition

news & analysis

China is idling on runway to build jumbo planes fleet

by Peter B. Alpern

When news spread earlier this year that China was setting up a company to develop and build large commercial jets, it really wasn’t much breaking news at all. At least not to Boeing CEO James McNerney.

For more than a year, McNerney has been warning Wall Street analysts that China was readying itself to build a fleet of jumbo planes.

That prediction finally came true when China formally announced it would restructure its two state aircraft makers, Avic I and Avic II, primarily so they could pool resources to build large aircraft.

China has long associated the ability to produce a large jet with true superpower status. Just before the New Year holiday, Chinese Premier Wen Jiabao visited the Avic I Xi’am Aircraft Industry Co. to give a pep talk on manufacturing jumbo jets.

During his talk with technicians, Wen emphasized a China-made jumbo aircraft as a "significant strategy" of the country.

Early reports suggest the civilian jets would be a twin-aisle, twinjet, 200-300 seat CS2000 and a single-aisle, 150-200 seat CS2010. Eventually, a military-use jumbo jet would likely follow.

Avic I and II will be reworked to produce parts and equipment for the jumbo jet program in addition to continuing their own product lines.

One of the most intriguing elements to the plot line is why China would delve into large aircrafts when the global market is well-served by Boeing and Europe’s Airbus.

"If you assume that the Chinese produced a successful airplane, the challenge for them outside China is to have a solid supports parts system in place," says Scott Hamilton, an aviation industry consultant. "Since they’ve never competed on a worldwide market like that, it’s a huge challenge."

China will need more than 2,600 new airliners, mostly large aircraft, in the next two decades.

China may attempt to use its emerging network of smaller scale customers in Africa, Southeast Asia, and Latin America as a market for uncompetitive Chinese products.

Currently, only the United States, Russia, France, Germany, England, and Spain have the capability to build jumbo aircraft, with Boeing and Airbus taking the lion’s share of sales on the international market.

China’s aviation demands ascended with the country’s rapid rise in economic power. According to Airbus, the Chinese domestic market is expected to increase fivefold by 2026, making it the second largest civil aviation market after the United States.

Boeing has forecast a large chunk of its business plans on the Far East. According to the company’s estimates, China will need more than 2,600 new airliners, mostly large aircraft, in the next two decades, which could be worth up to $213 billion.

"That’s a big chunk of airplanes Boeing won’t be making if Chinese carriers are required [to buy their own from China]," says Hamilton.

Aviation Industry of China

FAA certifies GEnx engine as airworthy

The GEnx aircraft engine, in which Volvo Aero plays a major role, has received airworthiness certification from the Federal Aviation Administration (FAA).

"Certification is an important milestone in the work to develop the environmentally adapted aircraft engines of the future," says Volvo Aero President Olof Persson. "This is the fruit of four years of hard work, involving many people."

Volvo Aero has a role in most large aircraft engines, but the GEnx involvement is the largest the company has ever had in a commercial engine. Volvo Aero has been responsible for product development of three key components and will manufacture six components for the new engine. Volvo Aero expects the GEnx to result in sales of more than $5 billion during the lifetime of the engine.

Development of the three components started in Trollhättan four years ago. At the peak, more than 200 persons were engaged in the project. In addition, during this time Volvo Aero had some 10 persons on-site at General Electric, Boeing and at various suppliers.

The engine now certified is designated GEnx-1B. It is intended for the next Boeing aircraft, the 787 Dreamliner. "The ground- and flight-tests validate that the GEnx-1B engine will be the most environmentally responsible aircraft engine, with significantly lower fuel consumption than today’s engines, partly due to new lightweight technology from Volvo Aero," says Joakim Andersson, GEnx Project leader at Volvo Aero.

With more than 1,100 engines sold to date, the GEnx is the fastest-selling engine in General Electric’s history. Based on the proven architecture of the GE90, the GEnx will succeed GE’s CF6 engine. Compared with the CF6, the GEnx will offer 15 percent improved fuel efficiency, which translates into 15 percent less CO₂ emissions. It is designed to stay on wing 30 percent longer than the CF6 between scheduled overhauls. Combined with using 30 percent fewer parts, this greatly reduces maintenance costs.

Volvo Aero’s responsibility in the GEnx engine includes development, design, manufacture and product support for three different components: fan hub frame, turbine rear frame and booster spool. Volvo Aero will also manufacture the HPT seal, aft fan case and C-sump cover for the engine. IHI of Japan, TechSpace Aero of Belgium, Avio SpA. of Italy, and Samsung Techwin of Korea also are revenue-sharing participants in the GEnx program.

General Electric Co.
Volvo Aero

Briefly

In motion

Alcoa Inc. has acquired two aerospace fastener manufacturers, Republic Fastener and Van Petty Manufacturing, both in Newbury Park, CA… ATI Industrial Automation has doubled its headquarters and manufacturing facility in Apex, NC. ATI also opened new offices in Detroit, MI, and Beijing, China.

AutoForm Engineering GmbHhas become a Dassault Systèmes Component Application Architecture (CAA) Software Partner to deliver sheet metal forming solutions integrated with CATIA… Purchases by Chrysler LLC from minority suppliers increased 81 percent from last year, to $900 million.

Siemens PLMsoftware solutions were used for the design of the Mazda CX-9 crossover SUV. The CX-9 won Truck of the Year at the Detroit Auto Show and Motor Trend’s Sport/Utility of the Year… Kaman Industrial Technologies Corp. has acquired Industrial Supply Corp. of Richmond, VA. Kaman, of Bloomfield, CT, is in the aerospace and industrial distribution markets.

Dutch company Quintiq, a provider of supply chain solutions, has opened an office in Wayne, PA, to serve its U.S., Canada and Mexico markets … Factory automation designer Applied Manufacturing Technologies Inc. has acquired K-R Automation of Warren, MI. Applied is from Orion, MI, and does business with the automation and manufacturing industries.

Swedish manufacturer SKF has acquired QPM Aerospace’s metallic rod business. QPM is based near Seattle, WA. SKF has also acquired ABBA Linear Tech Co. of Taiwan, a manufacturer of profile rail guides … Rolls-Royce is rolling out its fourth new engine program in a year with the BR725, the engine for Gulfstream’s new flagship corporate jet, the G650.

The German company EOS reports a highly successful fiscal 2006/2007 with a 14 percent increase in sales and 50 new customers for laser-sintering systems … Steelmaker POSCO is building a $129 million pipemaking plant in an alliance with SeAH of South Korea and U.S. Steel.

CAD/CAM developer Delcam plc of Birmingham, UK, reported record sales in 2007. Sales were up 11 percent, to £29.7 million … Lockheed Martin expects to have a cargo aircraft in the air by October that is made of synthetic fibers, resin and epoxy instead of metal.

Mori Seiki will celebrate its 25^th anniversary at its May 14-16 Innovation Days in Chicago. Demonstrations will be given of 20 CNC machines, and the latest innovations will be shown ... Brunswick Corp. intends to sell assets of its Baja boat business to Fountain Powerboat Industries of Washington, NC.

Tesla Motors of San Carlos, CA, has started regular production of the Tesla Roadster, an electric vehicle said to provide super car performance as twice the energy efficiency of the best hybrids. It accelerates from 0 to 60mph in 3.9 seconds.

Swiss turning solutions manufacturer Tornos reports a doubled net profit for 2007. Gross sales were up 14.7 percent over the previous financial year. Tornos has recently acquired 95 percent of Almac SA and Almatronic SA. Both will remain independent companies … Voght Aircraft posted its first profit in its seven-year history. The $46.3 million profit compared to a $36.7 million loss the year before.

NetJets Inc., of Woodbridge, NJ, will expand its Columbus, OH, operations to the amount of $200 million. The seller of private jet fractional ownership had been looking at multiple sites for more than a year ... Swagelok Co. of Solon OH has acquired Plant Support and Evaluations of Naples, FL. PSE will provide services under the name of Swagelok Energy Advisors Inc.

New at the top

Compass Automotive Group Inc.has named James A. Squatrito as CEO. Compass, of Franklin, IN, provides aluminum and magnesium solutions to automakers and Tier I automotive suppliers … Keishi Egawa has been named COO and executive vice president of Mazda North American Operations.

Volvo’s North American unit has named Doug Speck president and CEO, replacing Anne Belec, who was named director of global marketing at parent Ford Motor Co. The company will also move its headquarters from Irvine, CA, to Rockleigh, NJ, by the end of 2008.

Kenneth Wisnoskihas been named president, Global Primary Products — Growth, Energy, Bauxite, and Africa at Alcoa Inc. He succeeds Jon Erik Reinhardsen...Epicor Software Corp. has named Thomas Kelly president and CEO. Epicor supplies business enterprise resource planning (ERP) software.

Ford Motor Co. has made several executive appointments: Mei-Wei Cheng, to Ford group vice president and executive chairman of Ford Motor China. Also, Robert J. Graziano has been appointed president and CEO of Ford Motor China; Philip G. Spender has been elected a Ford vice president and executive vice president of Mazda Motor Corp.; and Stephen Odell has been named COO of Ford of Europe.

New websites

AD Products of Cleveland, OH, has launched a new and improved site, www.adproducts.com . It offers more selection from the company’s offerings of enclosures, accessories and instrumentation … Alcoa has launched a new website detailing how aluminum recycling is important to the clear air solution. It’s at www.alcoa.com/recycling .

Pro-Line, of Haverhill, MA, has introduced a new website, www.industrialworkbenches.com  with a "3D Build-A-Bench" feature. Viewers can virtually build and view a Model HD workbench … Fluid Metering Inc. has added "LiveHelp," an interactive live chat, to its website, www.fmipump.com , between customers and application specialists.

Orbitform Group has launched Orbitform.com, a new website.

What do you think?
Will the information in this article increase efficiency or save time, money, or effort? Let us know by e-mail from our website at www.ToolingandProduction.com or e-mail the editor at dseeds@nelsonpub.com.