Tata unit, RUAG sign multi-year contract worth over $150 mn

Mumbai: Tata group company TAL Manufacturing Solutions Ltd will build aircraft components for RUAG Aerostructures that will ultimately go into Airbus A320 planes, under a multi-year contract worth over $150 million.

TAL will manufacture and supply over 550 sheet metal components, machined parts and sub-assemblies to RUAG, a global supplier of aerostructure components, the companies said in a statement.

“Going into two fuselage sections of the Airbus A320, these parts are processed from steel, aluminium and titanium and involve use of some of the most sophisticated and futuristic equipment in aerospace manufacturing,” the statement said.

TAL is a leading company in commercial and defence aerospace manufacturing in India. RUAG Aerostructures, located in Germany and Switzerland, supplies passenger aircraft fuselage sections, winglets and control surface components to aircraft manufacturers.

Airlines such as IndiGo, GoAir and Air India Ltd fly Airbus A320 planes.

Rajesh Khatri, executive director and chief executive officer of TAL said this contract will see the company investing further in aerospace infrastructure at Nagpur and will uniquely position TAL as a supplier to two of the worlds most advanced and successful airplane programmes—the Boeing 787 Dreamliner and the Airbus A320.

Air India, the country’s flag carrier, flies Dreamliners, manufactured by Boeing Co. of the US.

On 11 February, Tata group said it expects revenue of Rs.2,500 crore, or more than $400 million, from its defence and aerospace business in the year ending 31 March 2015. Tata Sons Ltd had said the current order book size of the Tata group in the sector is above Rs.10,000 crore. Currently, 14 Tata companies are engaged in providing support to the country’s defence and aerospace sector, including TAL.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.