EADS to invest euro 2 bn in 15 yrs

The European aerospace major EADS, which owns aircraft maker Airbus Industrie, will invest up to ¤2 billion in India over the next 15 years to set up an engineering centre in the country as well as to increasing sourcing of software and technology.

This was announced by Tom Enders, chief executive, EADS during his India visit.

"India is a priority country for EADS as it offers market potential and solid aerospace and defence competencies. We will facilitate the creation in India of training centres for pilots and mechanics, maintenance and spare part distribution centres," said Enders

Boeing, the US rival of Airbus had announced plans to invest $1.5 billion in India in similar operations earlier this year. Of this Boeing will invest about $200 million in an aircraft maintenance facility.

EADS India Private Ltd, a 100 per cent subsidiary of EADS, was registered earlier this year and will guide the investment of the group in India.

A significant part of the investment will go for the EADS Technology Centre India. This campus-style institution will bring both the EADS subsidiaries and the Indian partners under the same roof, undertaking engineering and information technology services.

The decision on the location will be made soon. Operations are expected to begin in the second quarter of 2007 and the entire campus will be functional by early 2008.

Central to the EADS campus will be a state-of-the-art engineering unit called the Engineering Centre Airbus India, fully owned subsidiary of Airbus and will represent the biggest on-site unit owned by an EADS division.

The Airbus Engineering Centre will focus on high-end engineering analysis and design and will eventually work closely with several Indian aeronautic suppliers.

The Airbus Engineering Centre is expected to enter into operation during the first half of 2007 from a temporary site, with a recruitment programme starting as early as September 2006.

In 2005, Airbus sold 229 planes to the Indian customers and claims to holds 73 per cent of all future orders and options in India, valued at $ 22 billion.

Airbus has forecast that by 2025 up to 960 aircraft will be required to meet Indian air travel demands and the majority of these aircraft will come from the A320 family.

The EADS Technology Centre India will become a major employer in the aerospace and defence sector in India with the potential to create up to 2,000 jobs.