The company will be established by June.
Tata Industries Limited and Boeing Company, the Pentagon’s second-largest supplier, have agreed to form a joint venture company to supply more than $500 million worth of defence-related aerospace component parts to the US company.
According to a media release, the JV company will be established by June and will soon begin building Boeing aerospace components.
This is the second big deal involving the two companies in the recent past. The last was an agreement with TAL Manufacturing Solutions Ltd, a wholly owned subsidiary of Tata Motors, for manufacturing floor beams for Boeing’s 787 Dreamliner airplane programme.
The current agreement intends to utilise not only the existing Tata manufacturing capability, but also to develop new supply sources throughout the Indian manufacturing and engineering communities for both commercial and defence applications.
“This JV between Tata and Boeing is an important part of our strategy to build capabilities in defence and aerospace,” said Tata Group Chairman Ratan Tata. “I look forward to the joint venture becoming a world-class facility in India.”
Manufacturing capabilities established within the JV company would in later phases be leveraged across multiple Boeing programs, including the Medium Multi-Role Combat Aircraft (MMRCA) competition.
The agreement to be executed in a phased manner will potentially issue contracts for work packages to the JV company involving defence-related component manufacturing on Boeing’s F/A-18 Super Hornet for the US Navy and Royal Australian Air Force, CH-47 Chinook and/or P-8 Maritime Patrol Aircraft in the first phase.
Prospect of establishing a research and development center for advanced manufacturing technologies later is also being looked into.
Boeing, Lockheed Martin Corp and other overseas defence contractors are partnering with Indian companies ahead of their bids for India’s $11 billion of fighter jets, the biggest order for combat planes in 15 years.
The winner of the deal must order at least 50 per cent of defence component purchases from India.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment