Boeing Hires Tata Industries To Do $500 Million Defense Aerospace Work In India

By | February 18, 2008 | Satellite News Feed

The Boeing Co. [BA] will have Tata Industries Ltd of India produce an initial $500 million worth of defense-related aerospace goods in India for Boeing and its international customers, the Chicago-based company announced.

Under the Boeing-Tata memorandum of agreement, it is contemplated that the joint-venture company will be established by June, and shortly thereafter will begin work building Boeing aerospace components.

Jim Albaugh, president and CEO of Boeing Integrated Defense Systems, said the deal will "bring real and lasting value to India’s aerospace industry, while making Boeing products more globally competitive."

Boeing and Tata will use existing Tata manufacturing capability, and also will develop new supply sources throughout the Indian manufacturing and engineering communities for both commercial and defense applications.

"This joint venture between Tata and Boeing is an important part of our strategy to build capabilities in defense and aerospace," said Ratan Tata, chairman of the Tata Group. "I look forward to the joint venture becoming a world-class facility in India."

Manufacturing capabilities established within the joint-venture company would in later phases be leveraged across multiple Boeing programs, including the Medium Multi-Role Combat Aircraft (MMRCA) competition.

In the first phase of the agreement, Boeing would potentially issue contracts for components on the F/A-18 Super Hornet strike fighter for the U.S. Navy and Royal Australian Air Force, the CH-47 Chinook military helicopter and/or the U.S. Navy P-8 Maritime Patrol Aircraft.

A research and development center for advanced manufacturing technologies is also contemplated.

"Boeing is strengthening and deepening its partnerships with Indian industry through a wide range of new teaming opportunities," said Ian Thomas, president of Boeing India. "Our joint venture with Tata marks a significant milestone in our ongoing journey to build world-class aerospace and defense manufacturing capability in India."

In December 2003, Boeing established a wholly owned subsidiary, Boeing International Corp. India Private Ltd (BICIPL), to support the growing demands of Indian aviation, aerospace and defense industries.

Tata Group includes Tata Motors, which is one candidate attempting to buy Jaguar and Land Rover from Ford Motor Co.

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