Archive for ‘Manufacturing’

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22/05/2017

China, Russia formalize Shanghai venture to build wide-body jet | Reuters

China and Russia on Monday completed the formal registration of a joint venture to build a proposed wide-body jet, kickstarting the full-scale development of a program that aims to compete with market leaders Boeing (BA.N) and Airbus (AIR.PA).

State planemakers Commercial Aircraft Corporation of China (COMAC) [CMAFC.UL] and Russia’s United Aircraft Corp (UAC) said at a ceremony in Shanghai the joint venture would aim to build a “competitive long range wide-body commercial aircraft”.

COMAC, which is increasingly looking to break the hold Boeing and Airbus have over the global commercial jet market, successfully completed the maiden flight of its home-grown C919 narrow-body passenger jet earlier this month.

“The long-haul, wide-body passenger jet is a strategic project for China and Russia, followed closely by the two governments,” said Guo Bozhi, general manager of COMAC’s wide-body department.

COMAC and UAC first announced the twin-aisle jet program in 2014 but the project has so far been slow to materialize.

In November, the firms said they had set up a joint venture in Shanghai and unveiled a mock-up of the wide-body jet, based around a basic version that would seat 280 and have a range of up to 12,000 kilometers (7,500 miles).

UAC president Yuri Slyusar said the firms were aiming to complete the wide-body jet’s maiden flight and first delivery between 2025-2028. He added the plane would look to take 10 percent of the market from the Boeing 787 and Airbus 350.

Previously, the firms had been aiming for a maiden flight of the jet in 2022 and delivery from 2025 or later.

While the target is tough, it is more realistic than recent aircraft programs that have sought results in 5-7 years and then come in late, industry analysts said. COMAC’s first homegrown jet, the ARJ-21, obtained permission to enter domestic service more than 10 years behind its original schedule.

COMAC and UAC hold equal shares in the joint venture.

Last July, Boeing forecast the world’s airlines would need 9,100 wide-body planes over 20 years to 2035, with a wave of replacement demand to come between 2021-2028.China has plowed billions of dollars over the past decade into a domestic jet development program as it looks to raise its profile in the global aviation market and boost high-tech manufacturing at home.

Source: China, Russia formalize Shanghai venture to build wide-body jet | Reuters

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05/05/2017

China’s first big passenger plane takes off for maiden flight – BBC News

After about 90 minutes in the air the plane landed safely back at Pudong airport in Shanghai.

China’s first large domestically made passenger aircraft has completed its maiden flight, mounting a major challenge to Boeing and Airbus.

After about 90 minutes in the air the plane landed safely back at Pudong airport in Shanghai.

The plane is a key symbol of Beijing’s soaring ambitions to enter the global aviation market.

The jet by state-owned firm Comac has been planned since 2008 but the flight was repeatedly pushed back.For Friday’s maiden flight, the plane carried only its skeleton crew of five pilots and engineers and took off in front of a crown of thousands of dignitaries, aviation workers and enthusiasts.

Ahead of the flight, state television said the plane would fly at an altitude of only 3,000 metres (9,800 feet), some 7,000 metres lower than a regular trip, and reach a speed of around 300 kilometres (186 miles) per hour.

The C919 is designed to be a direct competitor to Boeing’s 737 and the Airbus A320.

It’s estimated that the global aviation market will be worth $2tn (£1.55tn) over the next 20 years.

China’s new pride of the skies

Robin Brant tours the C919

  • The C919 is a single-aisle twin-engine plane with a capacity to seat up to 168 passengers.
  • It will have a range of between 4,075 and 5,555km (2,532 – 3,452 miles).
  • According to Chinese media, it will cost around $50m, less than half of a Boeing 737 or Airbus A320.

The plane still relies on a wide array of imported technology though, it is for instance powered by engines from French-US supplier CFM International.

Orders have already been placed for more than 500 of the planes, with commitments from 23 customers, say officials, mainly Chinese airlines. The main customer is China Eastern Airlines.

Europe’s aviation safety regulator has started the certification process for the C919 – a crucial step for the aircraft to be successful on the international market.

China has had ambitions to build its own civil aircraft industry since the 1970s, when leader Mao Zedong’s wife, Jiang Qing, personally backed a project.

But the Y-10, built in the late 1970s, was impractical due to its heavy weight and only three of the aircraft were ever made.

Source: China’s first big passenger plane takes off for maiden flight – BBC News

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16/02/2017

India and Russia seek to revive stalled helicopter venture | Reuters

India and Russia are nearing a joint venture to make light helicopters in India, reviving a plan announced by Russian President Vladimir Putin in 2015.

Delhi needs to replace hundreds of ageing utility helicopters deployed along its Himalayan border with China as well as in the disputed Kashmir region.

This means an initial order of 200 Kamov-226 helicopters, of which 140 will be built in India as part of Prime Minister Narendra Modi’s drive to build a domestic defence industrial base and cut imports, is expected to be increased.

And final documents relating to the $1 billion Kamov deal involving Russian Helicopters, Rosoboronexport and India’s state-run Hindustan Aeronautics (HAL) has been submitted to Putin, HAL’s chief T. Suvarna Raju, told reporters on Wednesday.

While India has sealed deals with the United States for 22 Apache attack and 15 heavy lift Chinook helicopters at total cost of about $2.5 billion, plans to buy Russian helicopters and fifth generation fighter aircraft have been dogged by problems.

“There are issues between parties, but these are being tackled,” Sergey Goreslavsky, deputy director general of Rosoboronexport, said at India’s biggest air show in the southern city of Bengaluru.

A team will assess the Indian manufacturing facilities over the next few months. “We are keeping our fingers crossed about launching production this year,” an executive at Russian Helicopters said.

The executive, who did not want to be named, said the joint venture will be modelled along the lines of Brahmos, the India-Russia entity producing supersonic missiles, which which military analysts say are among the deadliest in their class.

Russia was long the main supplier of military equipment to India, but Delhi has turned to France, Israel and increasingly the United States for supply of hardware in recent years.

U.S. aerospace and defence firms Lockheed Martin and Boeing have both offered to set up production lines in India to make combat planes.

Source: India and Russia seek to revive stalled helicopter venture | Reuters

Posted in Defence, GeoPolitics, Helicopter, India alert, Manufacturing, Politics | 1 Comment »

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03/02/2017

Apple Is Set to Make in India, State Official Says – India Real Time – WSJ

In a potential boost to Prime Minister Narendra Modi’s “Make in India” initiative, tech giant Apple Inc. is nearing a deal with Taiwanese contract manufacturer Wistron Corp. to start making products in the southern state of Karnataka, a senior state official said.

“The contractual agreement between the two companies is on the verge of being signed,” the Karnataka government official who has direct knowledge of the matter said.

The first phase of assembling iPhones will likely start as early as the end of March, and further expansion is expected over the next two to six months, the official said.An Apple spokeswoman said the company has nothing to share beyond a statement it made last week, which said: “We appreciate the constructive and open dialogue we’ve had with [the] government about further expanding our local operations.”

A Wistron spokeswoman declined to comment. The company has a factory in the southern Indian city of Bangalore where it makes smartphone components, and has sought permission from the state authorities to expand the facility with additional power supply and fire-fighting facilities, the official said.

“What we are given to understand is that Apple is awaiting a final word from the government of India regarding tax and tariff concessions sought by the company, before signing up the contractual agreement,” the official said.

Making goods such as the iPhone locally may help the Cupertino, Calif., company to open its own stores in India, in turn building its brand in a country where it has less than a 5% share of a booming smartphone market.

Karnataka’s Information and Technology minister, Priyank Kharge, welcomed Apple’s proposal to consider Bangalore, also known as Bengaluru, as the location for potential manufacturing.

“Apple’s intentions to manufacture in Bengaluru will foster cutting edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally,” Mr. Kharge said in a statement Thursday.Apple is looking to ramp up revenues in India as sales stagnate in China, long an engine of growth. India should soon overtake the U.S. as the world’s second-largest smartphone market after China. Smartphone shipments in India grew 18% last year, compared with just 3% globally, according to Counterpoint Research.

Apple Chief Executive Tim Cook in a call with analysts this week confirmed the company is “in discussions” to open retail stores in the country, and said Apple intends to “invest significantly in the country and believe it’s a great place to be.” (http://blogs.wsj.com/indiarealtime/2017/02/01/what-tim-cook-said-about-apples-big-plans-for-india/)

Last week, a team of executives led by Priya Balasubramaniam, an Apple vice president, met with senior Indian government officials in New Delhi as well as state officials in Karnataka to discuss the firm’s proposals. (https://www.wsj.com/articles/apple-nears-deal-to-manufacture-products-in-india-1485340934)

Under Mr. Modi, India has been eager to attract foreign investment and create the manufacturing facilities and jobs the country needs to sustain long-term growth.

Source: Apple Is Set to Make in India, State Official Says – India Real Time – WSJ

Posted in Economics, India alert, Manufacturing, smartphone, Technology, technology transfer | 1 Comment »

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05/10/2016

Transforming lives in India’s manufacturing hubs – BBC News

By day she works as an assistant engineer, leading a team of 10 in a car factory manufacturing parts for Renault-Nissan Alliance vehicles.

The Make in India scheme aims to make the country a global manufacturing hub

Like hundreds of thousands of people across India, Sujitha‘s journey from an under-developed village in India’s south to the outskirts of the city of Chennai (Madras), has transformed her life.

“My native place is a small village called Kizhattur. There is not even proper transport over there,” says Sujitha. “Because I grew up in that situation, I knew that I had to study hard and find a job.”

And she did just that – albeit against the wishes of her family who wanted her to marry and settle down.Sujitha secured a diploma and when Renault-Nissan advertised a position for a junior engineer five years ago, she jumped at the opportunity.”I can’t even imagine what I would be doing if I did not work in this factory. Perhaps I would be in the village doing small jobs on the farm,” she says. “I would just about make ends meet.”

‘Detroit of Asia‘

Nissan and Renault are two of several international carmakers that have set up shop outside Chennai in the last 10 years.

Nearly a fifth of all cars made in India are produced in the area around Chennai in Tamil Nadu state

Today the area, known as the “Detroit of Asia”, is a thriving manufacturing hub where cars are produced for export as well as for the domestic market.India makes about 24 million vehicles a year, nearly a fifth of them in this region of Tamil Nadu state.

“We have seen a number of other car manufacturers establish plants in the state and that has helped us attract and help local suppliers relocate and set up in Tamil Nadu itself,” says Colin Macdonald, managing director of Renault-Nissan.

“Since 2010, we had about 15% of our suppliers in the Tamil Nadu area. We are now operating with 60% of our Indian suppliers in Tamil Nadu. So from an employment perspective, this is huge.

“High unemployment

Creating jobs is central to Prime Minister Narendra Modi‘s Make in India campaign, an effort to promote inclusive growth in the country.Modi has promised foreign players he will make it easier to do business in India.

But more than two years after taking power, and after introducing a raft of policies, unemployment rates are at a five-year high.According to a recent government survey, about 77% of Indian households have no regular wage or salaried person, and so for many, life is not improving fast enough.

Domestic market growth

Despite that, success in places like Chennai is a sign that India remains appealing to foreign companies.Now that the area has become an auto hub, cost-effective raw materials can be sourced. With the port less than 100km away, it is easy to import parts and export products back out. Labour is cheap too.

Several car companies have set up shop on the outskirts of Chennai. Workers here are seen at Ford’s plant in Chengalpattu

The growth of the domestic market only adds to India’s appeal.”Today, only 20 in 1,000 people in India own a vehicle but we expect that to grow dramatically in the next five years and we expect the market to be five million cars by 2020, making India the third biggest market on the planet,” says Colin Macdonald.

A matter of pride

For Sujitha Rajendrababu, owning a car one day has become more of a reality than a dream.

“What I had dreamed of becoming in the future was made true by this job. I do not know how to express this.”

The daughter of a farmer, she has already used the money she has earned to buy a fridge, a TV, some jewellery and even a holiday around India. But her ambitions don’t stop there.

“My long-term goal is to become the manager of the stamping shop. I don’t only want to be the manager of the stamping shop, but of this organisation as well.”

And she wants the same for other people just like her.

“A lot of people in my village ask me if I can help them find jobs for their children. That makes me feel proud.”

Source: Transforming lives in India’s manufacturing hubs – BBC News

Posted in car, Economics, employment, India alert, Manufacturing, Social & cultural | 1 Comment »

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08/09/2016

Daimler to sell Mercedes-Benz branded all-electric battery cars in China | Reuters

Germany’s Daimler AG plans to sell Mercedes-Benz branded all-electric battery cars in China, its China chief said on Wednesday, as the automaker capitalizes on government initiatives aimed at growing the market for new-energy vehicles (NEVs).

Hubertus Troska said the government’s push, which involves tax breaks and other policy support, helped the number of NEVs sold last year surpass 300,000, making China the world’s biggest market for electric, gasoline-electric and other such vehicles.

The majority of those vehicles were priced under 250,000 yuan ($37,515) and offered mainly by Chinese automakers, Troska said at an analyst and investor conference in Beijing.

Given factors including the government push – which falls under a broader drive to cut oil dependence and air pollution – Daimler is “very confident NEVs will be an important factor of the Chinese market,” Troska said.”Mercedes-Benz is also going to play a role in China in NEVs,” he said, referring to the planned cars.

He also said he sees demand over time shifting toward a “higher segment” of more expensive and capable all-electric battery cars and plug-in hybrids.Troska did not elaborate on the planned cars such as cost, pricing, models or launch dates. But investor relations head Björn Scheib said Daimler plans to show a concept electric car at the Paris Motor Show which opens to the public on Oct. 1.

Daimler currently sells one all-electric battery model in China under its smart brand, and one under the Denza brand it operates with local partner BYD Co Ltd.

Its China line-up also includes plug-in gasoline-electric hybrid versions of the Mercedes-Benz C-class and S-class sedans and GLE crossover sport utility vehicle.

Source: Daimler to sell Mercedes-Benz branded all-electric battery cars in China | Reuters

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01/09/2016

Indian manufacturing growth at 13-month high in August | Reuters

Indian factory activity expanded at its fastest pace since mid-2015 in August, helped by surging new orders, while only modest price increases should give the central bank scope to ease policy further, a survey showed.

The data will cheer policymakers after an official report on Wednesday showed Indian annual economic growth slowed in the April-June quarter to 7.1 percent, short of expectations for 7.6 percent in a Reuters poll.

The Nikkei/Markit Manufacturing Purchasing Managers Index rose to 52.6 in August from July’s 51.8, marking its eighth month above the 50 level that separates growth from contraction.

“Manufacturing PMI data show that the positive momentum seen at the beginning of the second semester has been carried over into August, with expansion rates for new work, buying levels and production accelerating further,” said Pollyanna De Lima, economist at survey compiler Markit.

The new orders sub-index, which takes into account both domestic and external demand, was 54.8 in August – its highest since December 2014 and indicating robust demand for Indian manufactured goods.

That pushed factories to increase production and the output sub-index climbed to a 12-month peak in August.But price growth lost momentum last month, with raw material costs increasing at their weakest rate in six months and output prices barely rising at all, suggesting consumer inflation could cool in coming months.

“In light of these numbers, the Reserve Bank of India has scope to loosen monetary policy in the upcoming meeting to further support economic growth in India,” De Lima said.On Oct. 4, the RBI is due to announce its first policy decision under newly-appointed governor Urjit Patel, who economists expect to broadly follow in outgoing chief Raghuram Rajan‘s footsteps.

Economists in a Reuters poll last month predicted the RBI would cut the repo rate by 25 basis points to 6.25 percent in the final three months of the year.

They see little steam left in the RBI’s current easing cycle, in which the policy repo rate has come down by 150 basis points since January 2015, to its lowest in more than five years.Consumer inflation in India was 6.07 percent in July, well above the RBI’s March 2017 medium-term target of 5 percent.

Source: Indian manufacturing growth at 13-month high in August | Reuters

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08/08/2016

This Is Why It Is Difficult to Make in India – India Real Time – WSJ

PHOTO: Employees worked on the cabin of a Sikorsky S-92 at the Tata Advanced Systems Ltd. facility at Adibatla in the south Indian city of Hyderabad, June 07, 2016.

Having signed a string of multibillion-dollar orders from foreign firms to make parts for helicopters, jet fighters and trains, India is struggling to find people with the skills to build them.

In a $3.3 billion push, it is racing to equip 15 million people by 2020 with the skills necessary to realize Indian Prime Minister Narendra Modi’s aim to bring more high-grade manufacturing to the country.

But the challenges are significant at a time when foreign suppliers including Boeing Co., Airbus Group SE and Alstom SA often can’t find the employees with the training and experience to help fulfill Mr. Modi’s ‘Make in India’ program.E

More than 80% of engineers in India are “unemployable”, Aspiring Minds, an Indian employability assessment firm, said in a January report after a study of about 150,000 engineering students in about 650 engineering colleges in the country.

A lack of specialized courses mean companies have to train their own people from scratch. At one training center outside Hyderabad in southern India, young workers in their early 20s toil with high-precision hand tools as they are taught for the first time how to fix rivets on aircraft-grade aluminum sheets as part of a year-long training program.

Source: This Is Why It Is Difficult to Make in India – India Real Time – WSJ

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01/07/2016

India factory growth at 3-month high in June on strong demand | Reuters

Indian manufacturing activity edged up to a three-month high in June, driven by stronger demand, but firms barely raised prices, a private survey showed, leaving the door open for another rate cut by the central bank this year.

The Nikkei/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.7 in June from May’s 50.7, its sixth month above the 50 mark that separates growth from contraction after it fell below that level in December for the first time in more than two years.

“The domestic market continues to be the main growth driver, as the Indian economic upturn provides a steady stream of new business,” said Pollyanna De Lima, economist at Markit.

“There were also signs of an improvement in overseas markets, as new foreign orders rose. However, it looks as if lackluster global demand remains a headwind for Indian manufacturers.

“While retail inflation hit a near two-year high in May, the survey’s output prices sub-index fell to a three-month low of 50.1 in June versus 50.5 the previous month, as input costs rose at a weaker pace.

There was also broadly no change to manufacturing employment in India during June, the survey showed.

“This lack of inflationary pressures provides the Reserve Bank of India (RBI) with further leeway to boost economic growth through cutting its benchmark rate,” said De Lima.

According to a Reuters poll, RBI Governor Raghuram Rajan could deliver another rate cut before his term ends in September. After cutting rates in April, he has left the key interest rate unchanged at a five-year low of 6.50 percent.

However, at the June policy meeting he signalled another rate cut later in the year if monsoon rains were sufficient enough to dampen upward pressure on food prices.

Rains are expected to be above average this year which could keep prices in control and give the government room to focus on key economic reforms in tandem with low interest rates.

Source: India factory growth at 3-month high in June on strong demand | Reuters

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27/05/2016

Why It Could Be a While Before Apple Can Open Stores in India – India Real Time – WSJ

India’s finance ministry has rejected a government-panel recommendation to exempt Apple Inc. from local sourcing requirements, two government officials said, in a decision that could effectively block the technology company’s plan to open its own retail stores in the country.

“We are sticking to the old policy,“ said one of the officials. “We want local sourcing for job creation. You can’t have a situation where people view India only as a market. Let them start doing some manufacturing here.”

An Apple spokeswoman didn’t immediately respond to a request for comment.

India is a crucial market for Apple as it holds huge sales potential. Like China, which for years fueled the Cupertino, Calif., company’s growth, India is a large, developing economy in which more people can afford its high-end gadgets every year.

India wants to use the company’s interest in its market to attract investment and create the manufacturing facilities and jobs the country needs to sustain long-term growth.

Source: Why It Could Be a While Before Apple Can Open Stores in India – India Real Time – WSJ

Posted in Economics, India alert, Manufacturing | 1 Comment »

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