EANS-News

FACC AG expands its business in the growth region of China (with photo)

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Subtitle: Strategic partnership with AVIC in the manufacture of
passenger cabins for civil aircraft

Joint Ventures/Cooperation/Collaboration

FACC AG and Aviation Industry Corporation of China (AVIC) have
re-confirmed their plans to enter into a strategic partnership
relating to the integration of aircraft passenger cabins in China.In
this cooperation,FACC will consult the AVIC subsidiary Fesher
Aviation Components, based in Zhenjiang, in industrialization and
manufacturing of passenger cabins for civil aircraft destined for the
Chinese market.

The contract was recently signed by Walter Stephan, FACC CEO, and
Pang Zhen, Vice President Civil Aircraft of AVIC, witnessed by the
Austrian Vice-Chancellor Reinhold Mitterlehner and the President of
the Austrian Chamber of Commerce Christoph Leitl. The agreed
cooperation follows an agreement between Airbus and AVIC, according
to which AVIC will set up an A330 Completion and Delivery Center in
Tianjin that will likely cover activities such as cabin installation,
aircraft painting, engine runs and aircraft delivery.

"We have started our partnership with Chinese companies in early
2000. With the majority owner AVIC behind us, we were able to
successfully expand it over the years," said Walter Stephan, FACC
CEO. "The planned cooperation in the production of the A330 passenger
cabins will significantly widen our footprint in China and allow us
to participate in the region's rapid air traffic growth."

Within the scope of the cooperation, the proven experience of FACC in
interior cabin development shall be combined with the industrial
capabilities and manufacturing in China, whereas FACC shall act as a
consultant for interior development, change management, installation
of production capabilities, industrialization in China, establishment
of the supply chain and the cabin integration. The production of the
passenger cabins will be done in the composite manufacturing facility
of Fesher Aviation Components in Zhenjiang, about 250 km northwest
from Shanghai. The new plant, a subsidiary of AVIC, was designed by
FACC and the construction was carried out in line with the
instructions from FACC. It was audited by Airbus and went into
operation mid- 2014 acting as a strategic supply chain partner of
FACC. The plant's resources are available to FACC and product
relocations to ensure competitiveness were commenced simultaneously
with the plant coming into service. FACC will fill most of the
capacity of the plant with the production of FACC programs and
support the plant through FACC on-site management.

Over the next years, FACC will relocate additional projects from
Austria to China, both to secure the company's attractive earnings
profile in the medium to long term, and also to free up capacities at
the site in Austria to support future growth. Along with these
relocations, FACC plans to reduce manufacturing costs, further
decrease USD exposure, create production space for the manufacturing
of high-tech products and further expand the global manufacturing
network.

About FACC FACC AG is one of the world's leading companies in the
design, development and production of advanced fiber reinforced
composite components and systems for the aviation industry. Their
range of products reaches from structural components for the fuselage
and wings to engine components to complete passenger cabins for
commercial aircraft, business jets and helicopters. FACC is a
supplier to all large aircraft manufacturers such as Airbus, Boeing,
Bombardier, Embraer, Sukhoi, and COMAC as well as for engine
manufacturers and sub-suppliers of manufacturers.In the business year
of 2013/14, FACC achieved a turnover of 547.4 million Euros. The
companycurrently employs 3,100 employees.Further information can be
found under www.facc.com.

Pictures with Announcement:
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http://resources.euroadhoc.com/us/EOWgIr3G

Further inquiry note:
Andrea Schachinger

Corporate Communication

Tel: [phone]

E-Mail: [e-mail]

end of announcement euro adhoc
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Pictures with Announcement:

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http://resources.euroadhoc.com/us/EOWgIr3G



company: FACC AG
Fischerstraße 9
A-4910 Ried im Innkreis
phone: [phone]
FAX: [phone]
mail: [e-mail]
WWW: www.facc.com
sector: Industrial Components
ISIN: AT00000FACC2
indexes:
stockmarkets: Regulated free trade: Wien
language: English