- Agreement for the creation of a machining centre as a Joint Venture with Shandong Nanshan Aluminium Co., Ltd
FIGEAC AÉRO Group (ticker code: FGA), a reference partner to major aerospace companies, and Shandong Nanshan Aluminium Co. Ltd, one of the leading aluminium producers, announce the signature of an agreement to define the framework for the creation of a production unit as a Joint Venture in China, to design and produce aluminium parts for a wide range of aerospace applications.
The signed agreement represents a decisive step for FIGEAC AÉRO, who will become the first French sub-contractor to locate to the Chinese market, which is becoming one of the most promising aerospace markets worldwide.
FIGEAC AÉRO and Shandong Nanshan Aluminium Co. Ltd have decided to work together through a Joint Venture, with capital of USD 20 million financed from equity, with the new joint company being co-owned on a 50-50 basis1. Its aim is to produce machined medium- to large-sized aluminium parts for the aeronautical and aerospace industry.
Shandong Nanshan Aluminium Co. Ltd will provide the raw materials for this new entity, and FIGEAC AÉRO will make available its globally recognised machining expertise. FIGEAC AÉRO and Shandong Nanshan Aluminium Co. Ltd will also pool their partner networks throughout China in order to accelerate the development of this new shared entity, and thus capture offset as well as domestic market share.
A win-win industrial partnership
This agreement enables FIGEAC AÉRO to locate to Asian markets at competitive costs, promote its expertise in machining and be in a position to capture the promising growth in this market.
For Shandong Nanshan Aluminium Co. Ltd, this partnership offers the possibility to be backed by a reference partner to major aerospace companies in a high potential business sector.
"We are very satisfied to be working with Shandong Nanshan Aluminium Co. Ltd through this cooperation over the long term, offering a remarkable opportunity to rapidly develop new capacities in aluminium aerospace parts machining in China. The Chinese market represents a tremendous growth potential", declared Jean-Claude Maillard, Chief Executive Officer and Founder of FIGEAC AÉRO.
ABOUT FIGEAC AERO
The FIGEAC AÉRO Group, a leading partner of major aerospace manufacturers, specialises in the production of light alloy and hard metal structural parts, engine parts, landing gear parts and sub-assemblies. An international group with a workforce of over 3,300 employees, FIGEAC AÉRO operates in France, the United States, Morocco, Mexico and Tunisia. In the year ended 31 March 2017, the Group reported annual revenue of €325 million.
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1 The creation of the Joint Venture remains subject to approval from the local authorities