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Tata forges venture with Lockheed Martin for C-130 aircraft parts

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BS Reporter Mumbai
Last Updated : Jan 25 2013 | 2:53 AM IST

Indian corporate major, Tata group has entered into a joint venture with the US aerospace and defence company Lockheed Martin Corp to make aircraft components for the C-130 transport planes. Under the venture — Tata Lockheed Martin Aerostructures — Tata Advanced Systems will hold 74 per cent while Lockheed will hold the remaining 26 per cent. This is the second JV Tata Group signed in aerospace components space. The financial details are not known.

Tata Lockheed Martin Aerostructures will manufacture aerostructures for the C-130 aircraft produced by Lockheed Martin. The new Tata Lockheed Martin Aerostructures facility is export oriented, and the products manufactured will form a key aircraft structure that Lockheed Martin will integrate and complete for its global C-130 aircraft customers, said a Tata Group statement. The new facility will be set up in Hyderabad.

In November 2009, Tata Advanced Systems had entered into a joint venture with US-based Sikorsky Aircraft, a subsidiary of United Technologies Corp, to make aerospace components in India. Components for Sikorsky S-92 helicopter cabins will be among those made by the joint venture. Tata Advanced Systems is a wholly-owned subsidiary of Tata Sons focused on providing integrated solutions for Aerospace, Defence, Homeland Security and Disaster Management.

The $46-billion Lockheed martin sold first C-130J Super Hercules transport aircraft to Indian Air Force (IAF) this month. The $1-billion contract with Lockheed was signed in 2008 for six C-130J aircraft. Tata Lockheed Martin Aerostructures is Lockheed Martin’s first JV in India.

Refusing to disclose the figures, a Tata Group spokesperson said, “The partners are committed to making the JV a world class company. It will be funded to meet the objectives set for it.”

According to reports, Tata group’s is setting up three joint venture projects in the Aerospace Special Economic Zone at Adibhatla near Hyderabad. Tata Aerospace Systems has established its unit at the SEZ for manufacturing helicopter cabins with an investment of Rs 1,000 crore. Another joint venture — NOVA — between Tata Advanced Systems and Israel Air Force Technology has also been allotted 30 acres in this SEZ.

"We are very proud of our association with Lockheed Martin and believe it will raise the level of capability of the aerospace industry in India as also complement the efforts of our Defence Public Sector Undertakings," Ratan Tata said.

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Ralph D Heath, Lockheed Martin Executive Vice-President, Aeronautics, said, “This partnership is established as a strategic element of our global supply chain and solidifies our presence in India. We are confident it will enhance long-term competitiveness of the C-130 and assure its production for decades to come.”

Last month, Lockheed Martin acquired an equity stake in Abu Dhabi contractor Advanced Military Maintenance Repair and Overhaul Centre (AMMROC). Lockheed Martin joins AMMROC's existing firms, Sikorsky Aerospace Services, which holds an equivalent share, and Abu Dhabi Aircraft Technologies (ADAT).

ADAT is a wholly-owned subsidiary of Mubadala Development Company, the strategic investment arm of the Abu Dhabi government.

Lockheed Martin employs about 132,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2010 sales from continuing operations were $45.8 billion.

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First Published: Feb 15 2011 | 12:22 AM IST

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