Tag: venture (Page 3 of 5)

Mercedes-Benz Berlin Plant Boss to Join Tesla

November 11, 2020 / WIL BALDWIN

FRANKFURT (Reuters) – The head of the Berlin engine plant run by Mercedes-Benz has defected to rival Tesla <TSLA>, German union IG Metall said on Wednesday, calling on employees to protest over his departure.

IG Metall declined to name the head of the plant, which has been run by Rene Reif, one the most experienced manufacturing executives at Mercedes-Benz who helped expand manufacturing capacity for Daimler <DAI> in China.

Reif used to be head of engineering and manufacturing at Beijing Benz Automotive Co. Daimler’s Chinese joint venture, which has a manufacturing capacity of around 480,000 cars and started building the electric Mercedes-Benz EQC last year.

Tesla declined to comment on whether it had found a new manager for a Gigafactory being built on the outskirts of Berlin but the electric carmaker is on a global manufacturing expansion push, building or expanding new factories in Texas, Germany and China.

Last month, a source told Reuters that a Tesla manager who oversaw the construction of the electric carmaker’s Gruenheide plant, had left his position.

Daimler said on Wednesday that Reif, 57, the manager of its Mercedes-Benz Berlin plant, which makes powertrains, would go into early retirement at the end of the year, at his own request.

Mercedes-Benz Werk Berlin, Deutschland: Montage des Mercedes-Benz V6 Dieselmotor OM642 / Mercedes-Benz Berlin Plant, Germany: Assembly of the Mercedes-Benz V6 diesel engine OM642

German unions have lamented the fact that traditional carmakers are cutting investment into combustion engine technologies as regulators clamp down on emissions and as demand for vehicles is hit by the COVID-19 pandemic.

IG Metall said there would be a protest in front of the Mercedes factory on Thursday and called on Daimler to present solutions that would help to guarantee the future of the plant.

The union said Daimler managers had outlined cost savings plans and union officials fear the Berlin plant’s future is at risk.

Daimler said Clemenz Dobrawa, who currently heads up the Mercedes-Benz battery manufacturing plant in Kamenz, had taken over leadership of the Mercedes-Benz plants in Hamburg and Berlin earlier this month.

“Thanks to his activity as representative in Kamenz, he brings important know-how for the transformation toward electromobility,” Daimler said, adding the Berlin plant would be restructured to serve an ‘Electric First’ strategy.

(Reporting by Edward Taylor and Ilona Wissenbach. Editing by Jane Merriman)

First A321P2F Enters Service with Qantas for Australia Post

November 7, 2020 / WIL BALDWIN

Elbe Flugzeugwerke (EFW), the joint venture created by Airbus and ST Engineering has achieved key milestones in the A321 passenger-to-freighter (P2F) conversion programme with the delivery and entry-into-service on 2th October of the first converted aircraft to Qantas. This new P2F version is being leased by aircraft asset manager Vallair to Qantas, to operate services on behalf of Australia Post. Last month, following its flight tests, the newly completed aircraft had been delivered by EFW to Vallair.

These milestones mark the completion and ‘birth’ of the world’s first A321 converted freighter. EFW had received the Supplemental Type Certificate (STC) for the A321P2F from the European Union Aviation Safety Agency (EASA) in February this year, and the Validation STC from the US Federal Aviation Administration (FAA) in July. Operator-specific enhancements were subsequently incorporated into the freighter and certified prior to its delivery from EFW to Vallair.

The A321P2F is the first in its size category to offer containerised loading in both the main (up to 14 full container positions) and lower deck (up to 10 container positions). With a generous payload-range capability that can carry 28 metric tonnes over 2,300 nautical miles, the A321P2F is the ideal Single-Aisle freighter aircraft for express domestic and regional operations. The conversion features a large main cargo door which is hydraulically actuated and electrically locked, a ‘Class-E’ main-deck cargo compartment with full rigid 9g barrier for optimal protection between crew and cargo, and a redefined flight deck that includes supernumerary seats.

The collaboration between ST Engineering, Airbus and EFW is the OEM-supported conversion for A321P2F in the market. There has been a keen interest from customers in the solution, which is expected to further grow with the first A321P2F unit entering the market. Looking further ahead, next year the story is set to take another stride when the first A320P2F will take shape.

Rolls-Royce’s business unit Power Systems and Shanghai Cooltech Power Co. Ltd. have agreed to form MTU Cooltech Power Systems: The 50/50 joint venture will produce backup generator sets powered by MTU engines in China. In the picture: Generator set with a 20V 4000 MTU engine. Der Geschäftsbereich Power Systems von Rolls-Royce und Shanghai Cooltech Power Co. Ltd. haben gemeinsam MTU Cooltech Power Systems gegründet. Das 50/50-Joint Venture wird Notstromaggregate mit MTU-Motoren in China produzieren. Im Bild: Aggregat auf Basis eines 20V-4000-MTU-Motors.

Rolls-Royce & Shanghai Cooltech to Jointly Produce Generator Sets in China

August 24, 2020 / WIL BALDWIN

Rolls-Royce’s business unit Power Systems and Shanghai Cooltech Power Co. Ltd., a leading Chinese manufacturer of power generation systems, have made a significant step forward together to strengthen their market position by forming a 50/50 joint venture. MTU Cooltech Power Systems will produce backup generator sets powered by MTU Series 1600, 2000 and 4000 engines for applications including but not limited to hospitals, airports, mining, semiconductors, telecoms and the rapidly growing data centre market, which has recently received a significant boost from the Chinese government’s newly announced New Infrastructure development plan, a programme launched by the central government to accelerate the digital transformation of the economy.

– New 50/50 joint venture established in Shanghai to serve the growing Chinese market

– Purpose is to establish a stronger position in the backup power supply market, with a focus on data centers

– Production of generator sets equipped with MTU engines to start at end of 2020

Tobias Ostermaier, President MTU Greater China, Rolls-Royce Power Systems, said: “This is an important step to further accelerate our fast-growing business in China. We pursue our growth strategy for diesel systems in China and move further towards becoming a provider of integrated power solutions in this strategically important market. We look forward to being in a position to supply our customers with world class MTU system solutions at China speed. The Chinese market presents tremendous opportunities for Power Systems’ business growth in a challenging global environment. We have an important role to play in ensuring power for China’s New Infrastructure such as telecommunications networks, servers, and data centres through our best-in-class safety-critical MTU power solutions.”

Xu Nai Qiang, President of Shanghai Cooltech Power, said: “We are proud to form the new joint venture with Rolls-Royce, which enables us to manufacture products of the highest quality for the Chinese market, and to continue and enhance the success story of our long-standing collaboration.”

Rolls-Royce and Shanghai Cooltech Power have enjoyed a close partnership since 2013. Shanghai Cooltech Power is one of the biggest customers of the Power Systems business unit in China and has already installed nearly 1,000 MTU engines in backup generator sets. A key focus has been the telecommunications market, which will also be a major target now for the new joint venture.

MTU Cooltech Power Systems is to have a workforce of around 50 employees when it is launched this year. The joint venture will produce a range of generator sets based on MTU engines, which are to be supplied from Germany and China. Rolls-Royce and Shanghai Cooltech Power will then market and deliver these generator sets to their Chinese customers.

Having production in China will shorten delivery times significantly. Combined with direct access to the high quality and competitively priced supply chain in China, MTU system solutions will establish a highly competitive position in the China market. “As a result, we will be in a better position to adapt our product range to market requirements and to provide our customers with local support. Irrespective of the new joint venture, we will maintain our long-standing strategic partnerships and well-established collaboration with our community of Chinese partners in the field of decentralised power supply systems, and will systematically continue and strengthen these partnerships,” said Tobias Ostermaier.

Increasing market share in China, in addition to setting up and developing partnerships, are key elements of the PS 2030 strategy with which the Rolls-Royce business unit Power Systems is currently transforming itself from an engine manufacturer to a provider of integrated solutions.

Rolls-Royce has been producing MTU engines in China since 2006 and formed joint ventures with Chinese manufacturers to continue localizing its footprint over the years. The founding of MTU Cooltech Power Systems will help accelerate its localization in China to seize business opportunities and better serve the market.

Alstom Begins Validation Tests on Azerbaijan Freight Locomotives

August 9, 2020 / WIL BALDWIN

Alstom has launched the validation test campaign for the Prima T8 AZ8A freight locomotives in Azerbaijan on the main freight transit line, which has recently been converted from 3kV DC to 25kV AC.

In 2014, ADY awarded a contract to EKZ, Alstom’s joint venture with Transmashholding (TMH), for a total 50 electric locomotives, including 40 Prima T8 AZ8A heavy freight locomotives and 10 Prima M4 AZ4A passenger locomotives.

The Prima T8 AZ8A is based on the KZ8A locomotives currently in service in Kazakhstan and ADY’s specific technical requirements and is compliant with GOST[1] standards and specifications.

Alstom’s Prima T8 is one of the most powerful electric locomotives in the world. This model is a 25 tons per axle two-section freight locomotive capable of towing up to 9,000 tons and running at 120 km/h, with installed continuous power of 8.8 Megawatts. The AZ8A is designed to operate in temperatures ranging from -25°C to 50°C. It requires minimum maintenance and provides high reliability levels and low lifecycle costs thanks to its modular design.

Alstom’s Prima range is covering all market segments of locomotives from heavy-haul, freight and passenger operation and shunting or trackwork operation. Over the past 20 years, more than 3,200 Prima locomotives (more than 4,600 sections) have been sold worldwide.

Alstom is present in Western & Central Asia with more than 850 people, three country offices, four depots, repair center and two plants, EKZ in Nur-Sultan for electric locomotives manufacturing and maintenance and production of on-board transformers, and KEP in Almaty to produce point machines. Alstom is a major contributor to the revitalization of country’s mobility industry and the development of its economy.

EKZ, a joint venture between Alstom and TMH[2], employs 700 people and is working on supplying and maintaining the Prima electric locomotives ordered by KTZ, Kazakhstan’s national railway company and export markets, like Azerbaijan.

[1] GOST: Commonwealth of Independent States (CIS) technical certification organisation

[2] EKZ: Alstom 75%, TMH 25%

Morocco Orders 24 Boeing AH-64E Apache Helicopters

June 26, 2020 / WIL BALDWIN

Deliveries are expected to begin in 2024

Morocco is the 17^th country to acquire the Boeing AH-64 Apache through a contract for 24 of the helicopters that was recently signed.

Boeing has delivered nearly 2,500 Apache helicopters to 16 nations to date, including the U.S., Netherlands, Greece, United Kingdom, Japan, India, Singapore, South Korea and Saudi Arabia. Deliveries to Morocco are expected to begin in 2024.

“This is another step forward in our long partnership with the Kingdom of Morocco,” said Jeff Shockey, vice president, Global Sales and Marketing, Boeing Defense, Space & Security and Government Services. “Worldwide demand for the Apache is growing and we are proud to provide this best-in-class capability to Morocco.”

The AH-64E Apache is the latest configuration of the attack helicopter. It is designed and equipped with an open systems architecture including the latest communications, navigation, sensor and weapon systems. It has an improved Modernized Target Acquisition Designation System that provides day, night and all-weather target information, as well as night vision navigation capability. In addition to classifying ground and air targets, the Fire Control Radar has been updated to operate in a maritime environment.

Boeing will build and deliver the new Moroccan Apaches under a contract with the U.S. Army through the U.S. government’s Foreign Military Sales process.

Boeing’s partnership with Morocco spans decades. The company is committed to developing Morocco’s supply chain and future workforce. Boeing is a partner of the MATIS Aerospace joint venture, which produces airplane wire bundles and harnesses. In 2016, the company signed a Memorandum of Understanding with the Kingdom to create an ecosystem of aircraft equipment suppliers. Boeing also supports the country’s future workforce through partnerships with Education for Employment (EFE) Morocco and the INJAZ Al-Maghrib association.

Boeing Terminates Joint Venture Agreement With Embraer

April 27, 2020 / WIL BALDWIN

Boeing (NYSE: BA) announced today that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.

Under the MTA, April 24, 2020, was the initial termination date, subject to extension by either party if certain conditions were met. Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions.

“Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, president of Embraer Partnership & Group Operations. “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”

The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.

Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.

Embraer Delivers 198 Total Jets in 2019

February 19, 2020 / WIL BALDWIN

Embraer (ERJ) delivered a total of 198 jets in 2019, of which 89 were commercial aircraft and 109 were executive jets (62 light and 47 large), which represents an increase of 9% compared to 2018, when the Company delivered a total of 181 jets. The deliveries were within the outlook ranges for 2019 of 85 to 95 for the commercial aviation market and of 90 to 110 for the business aviation market. In the fourth quarter of 2019, Embraer delivered 81 jets, being 35 commercial aircraft and 46 executive jets (20 light and 26 large). As of December 31, the firm order backlog totaled USD 16.8 billion. See details below:

Deliveries by Segment	4Q19	2019

*Commercial Aviation*	35	89
EMBRAER 175 (E175)	22	67
EMBRAER 190 (E190)	2	5
EMBRAER 195 (E195)	1	3
EMBRAER 190-E2 (E190-E2)	4	7
EMBRAER 195-E2 (E195-E2)	6	7

*Executive Aviation*	46	109
Phenom 100	4	11
Phenom 300	16	51
Light Jets	20	62
Legacy 650	3	5
Legacy 450	10	15
Legacy 500	5	11
Praetor 500	3	3
Praetor 600	5	13
Large Jets	26	47

TOTAL	81	198

In the fourth quarter of 2019, Embraer delivered the first Praetor 500 business jet to Flexjet, a global leader in private jet travel, just over one year after its announcement at the 2018 National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE).

Embraer also announced the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL), expanding its service capacity through a lease agreement with Jetscape Services for a dedicated hangar. Embraer’s presence in Florida is strategic for its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as for those whose travel frequently brings them through South Florida.

In the same period, Embraer delivered the second KC-390 Millennium to the Brazilian Air Force and the contract with the Portuguese Government for a firm order for five KC-390 airlifters was included in Embraer’s backlog in the fourth quarter of 2019.

At the Dubai Air Show, Embraer announced the name and designation of its multi-mission medium aircraft, the Embraer C-390 Millennium. The new designation reflects increased flexibility and value for operators that look for a transport/cargo aircraft to perform airlift and air mobility missions, among others. In addition, Embraer and Boeing announced that the joint venture to promote and develop new markets for the C-390 Millennium multi-mission airlift and air mobility aircraft will be called Boeing Embraer – Defense. The organization will only be operational after the companies’ joint venture receives regulatory approvals and meets closing conditions.

Also during the event in Dubai, Embraer announced two contracts for commercial aircraft: a contract with Air Peace for three additional E195-E2s, confirming purchase rights from the original contract and a firm order for three E190 jets with CIAF Leasing.

Embraer welcomed three new E2 operators. Helvetic Airways, from Switzerland, and Air Kiribati, national airline of the Republic of Kiribati, received its first E190-E2 jets, while Binter, of Spain, received its first E195-E2. Embraer also signed firm orders with SkyWest, for 20 E175 that will be operated by American Airlines, and with Congo Airways for two E175 aircraft, with purchase rights for a further two.

U.S. Weighs Blocking GE Engine Sales for China’s New Airplane

February 16, 2020 / WIL BALDWIN

FILE PHOTO: A traffic light is seen in front of a logo of General Electric at the company’s plant in Birr

(Reuters) – The U.S. government is considering whether to stop General Electric Co from continuing to supply engines for a new Chinese passenger jet, according to people familiar with the matter, casting uncertainty over China’s efforts to enter the civil aviation market.

The potential restriction on the engine sales – possibly along with limits on other components for Chinese commercial aircraft such as flight control systems made by Honeywell International Inc – is the latest move in the battle between the world’s two largest economies over trade and technology.

The issue is expected to come up at an interagency meeting about how strictly to limit exports of U.S. technology to China on Thursday and at another meeting with members of President Donald Trump’s Cabinet set for Feb. 28, sources said.

The White House and the U.S. Commerce Department, which issues licenses for such exports, declined to comment, as did a GE spokeswoman. The departments of Defense, State, Energy and Treasury did not respond to requests for comment.

For years, the United States has supported American companies’ business with China’s budding civil aviation industry.

The government has provided licenses that allow those companies to sell engines, flight control systems and other components for China’s first large commercial aircraft, the COMAC C919. The narrow-body jet has already engaged in test flights and is expected to go into service next year. COMAC is an acronym for Commercial Aircraft Corp of China Ltd.

But the Trump administration is weighing whether to deny GE’s latest license request to provide the CFM LEAP-1C engine for the C919, people familiar with the matter said, though GE has received licenses for the LEAP engines since 2014 and was last granted one in March 2019.

The CFM LEAP engine is a joint venture between GE and France’s Safran Aircraft Engines. The proposal to halt the deliveries of the engines was also reported on Saturday by the Wall Street Journal.

Safran did not immediately respond to a request for comment, and French government officials could not be reached for comment.

Aside from aircraft engines, flight control systems are up for discussion at the February meetings. Honeywell International has received licenses to export flight control systems to COMAC for the C919 for about a decade, and one was approved in early 2020, according to a person familiar with the matter.

But future permission for such sales for COMAC’s passenger aircrafts may be up for debate. Honeywell also has been seeking a license for flight control technology to participate in the development of the C929, China’s planned wide-body jet venture with Russia, the person said.

The flight control system operates moving mechanical parts, such as the wing flaps, from the cockpit.

A spokeswoman for Honeywell declined to comment.

An aerospace trade group official said his organization would like to weigh in on any policy shifts.

“If there are any changes, we would hope they would engage with us, as they’ve done before,” said Remy Nathan, vice president for international affairs at the Aerospace Industries Association.

At the heart of the debate over a possible crackdown on the sale of U.S. parts to China’s nascent aircraft industry is whether such shipments would fuel the rise of a serious competitor to U.S.-based Boeing Co or boost China’s military capabilities.

People familiar with the matter said some administration officials are concerned the Chinese could reverse engineer some items, though others say an abundance of LEAP engines in China has not brought that about to date.

If the United States were to move ahead with the measure, one person familiar with the matter said, China could retaliate by ordering more planes from Airbus SE , rather than crisis-hit Boeing, which relies on China for a fourth its deliveries.

The Trump administration’s meetings about technology issues also are set to include a discussion of whether to impose further restrictions on suppliers to Huawei Technologies, the world’s largest telecommunications equipment maker, which is on a U.S. trade blacklist.

(Reporting by Karen Freifeld and Alexandra Alper; additional reporting by Tim Hepher in Paris; editing by Jonathan Oatis)

FILE PHOTO: China’s home-grown C919 passenger jet taxis after landing on its maiden flight at the Pudong International Airport in Shanghai

Lessor BBAM Orders 3 Boeing 737-800 Converted Freighters

February 10, 2020 / WIL BALDWIN

SINGAPORE, Feb 11 (Reuters) – Boeing Co said on Tuesday that lessor BBAM had ordered three 737-800 converted freighters to serve the growing e-commerce market and express sectors of the air cargo market.

The planes to be converted will come from BBAM’s existing fleet. “This agreement shows how we can serve our customers by delivering efficient and reliable airplanes and a portfolio of services that extracts value throughout the life of those jets,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing.

Boeing also said it would inaugurate a 737-800 passenger to freighter conversion line in China this summer.

The new line will be at Guangzhou Aircraft Maintenance Engineering Company Ltd (GAMECO), a joint venture between China Southern Airlines Co Ltd and Hutchison Whampoa.

(Reporting by Jamie Freed; Editing by Himani Sarkar)

Airbus Likely to Acquire Remaining Bombardier A220 Stake

February 7, 2020 / WIL BALDWIN

MONTREAL/PARIS (Reuters) – Europe’s Airbus SE <EADSY> is likely to acquire Canadian plane and train maker Bombardier Inc’s <BBD-B.TO> remaining stake in the A220 passenger jet program, two industry sources said.

A deal for Airbus to buy the 33.58% share in the program was widely expected after Bombardier said in January it was reviewing the stake in the joint venture. Barring surprises, a deal is expected next week ahead of both companies’ earnings reports on Feb. 13, the sources added.

Airbus and Bombardier both declined to comment. The terms of a potential deal that would mark Bombardier’s exit from commercial aviation were unclear.

Bombardier, which is weighing additional asset sales, faced a cash crunch in 2015 due to its high-stakes bet on the technologically advanced narrowbody.

Bombardier shares closed up 2.8%.

Montreal-based Bombardier ceded control of the program to Airbus in 2018 for a token C$1 as part of broader efforts to improve its finances. It retained a minority stake alongside the Canadian province of Quebec.

Bombardier had warned the program would require additional cash to ramp up production, and could be subject to a writedown, as it faces higher-than-expected costs in its rail division and more than $9 billion of debt.

Since Airbus took over the program, the A220 has seen a sharp pickup in sales to 658 orders as of Jan. 31. But it has not seen the cost declines expected from Airbus applying its greater purchasing power with suppliers, one of the sources said.

A deal would leave Airbus to shoulder additional investments required by the plane program.

“Airbus did not particularly want to do this at this time, but is presented with little choice if Bombardier is pulling back,” the second source said.

Airbus, with a 50.6% stake in the program, delivered 48 A220 jets in 2019 and is ramping up production toward its maximum monthly capacity of 10 jets in Mirabel, Quebec, and four planes at a second line in Alabama by mid-decade.

Airbus Chief Commercial Officer Christian Scherer told Reuters in January the company was progressing toward its target of a double-digit percentage reduction in the A220’s production costs.

Quebec, with a 16.36% stake in the A220 program, would not invest further. Rather, it is trying to protect the program’s estimated 2,700 jobs, along with the province’s $1 billion investment in the program, Economy Minister Pierre Fitzgibbon said on Monday.

“We put $1 billion in it and that’s enough.”

(Reporting by Allison Lampert and Tim Hepher in Paris; Editing by Diane Craft, David Gregorio and Richard Chang)

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