EADS-SOGERMA, NORTHROP GRUMMAN sign joint venture agreement for large commercial aircraft work
Lake Charles, Louisiana, 26 October 2000
EADS-Sogerma, a unit of EADS European Aeronautic Defence and Space Company, and Northrop Grumman Corporation (NYSE: NOC), announced today the signing of a joint venture to pursue the repair, maintenance and overhaul (MRO) of large commercial aircraft.
Under the agreement, EADS-Sogerma, as the majority investor, will lead the operations of EADS Aeroframe Services, LLC, which will be based in Lake Charles, La.
Philippe Camus and Rainer Hertrich, the co-chief executive officers of EADS, said, "With the EADS-Sogerma and Northrop Grumman joint venture, EADS is enlarging and strengthening its presence in the U.S. aerospace market. This is another proof of our commitment to further develop trans-Atlantic ties and to deepen European and U.S. industrial cooperation."
"Northrop Grumman is pleased to join with EADS-Sogerma in this effort to bring new work to Lake Charles. This joint venture creates an opportunity for the superb workforce we have developed here. These employees, coupled with the excellent facilities and operating environment, were major attractions for EADS-Sogerma. While commercial MRO is not a core business for Northrop Grumman, our participation is based upon the benefits of having a low-cost MRO facility to support our requirements sector wide, a stable workforce in Lake Charles, and the further extension of our strategic relationship with EADS," said Ralph D. Crosby Jr., Northrop Grumman corporate vice president and Integrated Systems Sector (ISS) president.
"EADS Aeroframe Services will start its operations with three competitive advantages: a central U.S. location in Lake Charles, La; a high level of qualification of the staff coming from Northrop Grumman; and transfer of know-how from EADS-Sogerma in Airbus maintenance," stated Yves Richard, EADS-Sogerma CEO. "We are happy to join with Northrop Grumman in this new entity, which will allow us to seize business opportunities resulting from the growth of the commercial aircraft fleet in the Americas, particularly the increased numbers of Airbus aircraft. We wish to thank the State of Louisiana as well as the Chennault International Airport Authority for their fruitful support all the way through the achievement of the project."
ISS has a world-class aircraft modification and refurbishment facility in Lake Charles for the U.S. Air Force Joint Surveillance Target Attack Radar System (Joint STARS) program. The plant, located at the former site of Chennault AFB, is leased from the Chennault International Airport Authority (CIAA). CIAA was instrumental in bringing this joint venture to the Lake Charles area, according to company officials.
With its headquarters and main base in Bordeaux, EADS-Sogerma is one of the world's major leading maintenance groups. The firm has revenues of Euro 570 million (1999) and more than 3,600 employees. Its core business covers a full range of services for commercial and military aircraft, from engineering to maintenance, including major components overhaul and repair up to landing gears and APUs, components pooling and full support through power-by-the-hour contracts. EADS-Sogerma has also the capability to design, manufacture, integrate and support cabin interiors. The EADS-Sogerma Maintenance Group has been in the U.S. since 1988. Its Barfield subsidiary, located in Miami, Fla., and Phoenix, Ariz., specializes in components maintenance. EADS Aeroframe Services will support the EADS strategy to develop in-service assistance for its customers in the Americas, especially covering Airbus products.
EADS European Aeronautic Defence and Space Company has been formed from the merger of Aerospatiale Matra, Construcciones Aeronáuticas S.A. and DaimlerChrysler Aerospace AG. With pro forma revenues of more than Euro 22.5 billion (1999), EADS is the third largest aerospace company in the world, quoted as EAD on the Paris, Frankfurt and Madrid stock exchanges. With more than 87,000 employees, EADS has a renowned position in the world in the field of aerospace and defense industry: it is the second largest company for commercial aircraft through Airbus; first for civil helicopters through Eurocopter; second for missile systems; first for commercial launchers (Ariane) and third for satellites through Astrium; third for military transport aircraft (A400M); and fourth for military aircraft (Eurofighter). In its different businesses, EADS is building up fruitful cooperative relationships with the main U.S. aerospace and defense groups, i.e. recently with Northrop Grumman in the field of defense activities - this includes for instance the cooperation in the AN/APN-241 weather and navigation radar project which will be offered for the A400M military transport aircraft, or further on the joint development of a high-altitude long-endurance unmanned aerial vehicle (HALE UAV) system.
Northrop Grumman's ISS, headquartered in Dallas, Tex., is a premier aerospace systems integration enterprise. ISS has the capabilities to design, develop, integrate, produce and support complete systems, as well as airframe subsystems, for airborne surveillance and battle management aircraft, early warning aircraft, airborne electronic warfare aircraft and air combat aircraft.
Northrop Grumman Corporation, headquartered in Los Angeles, is a world-class, high technology company providing innovative solutions in systems integration, defense electronics and information technology for its U.S. and international military, government and commercial customers, as a prime contractor, principal subcontractor, team member or preferred supplier. The company had $7.6 billion in revenues for 1999 (restated) and a workforce of approximately 38,000 employees.
For further information, please contact :
EADS-Sogerma
Florence Caron Tel.: +33 5 56 55 40 23
press@sogerma.fr
Northrop Grumman
Georgia Calaway Tel.: +1 972 946-2695
