Boeing Outsources Manufacturing To India


The Boeing Company and India’s Hindustan Aeronautics Limited (HAL) today signed a 10-year Memorandum of Understanding (MOU) intended to bring more than US$1 billion of new aerospace manufacturing work to India.The agreement, signed in New Delhi by Jim Albaugh, president and CEO of Boeing Integrated Defense Systems, and Ashok K. Baweja, chairman of HAL, also includes sharing key Boeing business and manufacturing tools with HAL.

“I am extremely pleased that Boeing and HAL have agreed to work together for the mutual benefit of their companies and countries. The agreement represents an important step in our efforts to build solid long-term partnerships in India to make Boeing products more globally competitive, while allowing HAL to grow and expand its potential market around the world,” said Albaugh.

“This is a significant step by two aerospace leaders that opens up new avenues and areas of co-operations. HAL and Indian industry gain from this long-term business arrangement in terms of technology upgrade, while Boeing can look forward to a reliable source for its product requirements,” said Baweja.

Under the agreement, Boeing and HAL will explore business opportunities aimed at transferring work packages to India with an initial value of US$10-$20 million annually, increasing in size and complexity as business opportunities develop. Boeing also will support HAL in developing manufacturing processes and capabilities needed for the production of hardware for Boeing and/or its subcontractors. Boeing also will support the training and transfer of Boeing best practices for Lean principles and Supplier and Program Management to the extent allowed by U. S. government and Boeing Corporate policy. Initial training in Lean began in 2006 and will continue through 2008.

Hindustan Aeronautics Limited agrees to offer Boeing competitive pricing, to invest in the required manufacturing infrastructure, and to join Boeing in seeking recognition by the government of India for the value of the work packages and technology transfers in support of credits against existing or future offset obligations.

Boeing’s efforts on this project will be led and managed through its Integrated Defense Systems business unit.

Boeing’s history in India reaches back more than 60 years, marked by success in working with airline customers, parts suppliers, research institutes and others to provide products and services. In December 2003, Boeing established a wholly owned subsidiary, Boeing International Corporation India Private Limited (BICIPL), to support the growing demands of India’s aviation, aerospace and defense industries.

Besides that also today Boeing announced that it has formed a new Intelligence and Security Systems (I&SS) division that will provide ground-based and other integrated intelligence and security solutions for a variety of U.S. government customers.

Source: boeing.com

By Szafi 
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2 Responses to “Boeing Outsources Manufacturing To India”


  1. 1 achraf December 24, 2007 at 1:13 pm

    I HOPE SMALL EMPLOYEES WILL ALSO BENEFIT FROM THIS GROWTH AND EXPANESION .HUGE PROJECTS MUST ALWAYS BE ACCOMPANIED BY HUGE AMBITION OF THE WHOLE STAFF MIXED LEVELS .

  2. 2 szafi December 24, 2007 at 5:34 pm

    That’s true. I also hope it’s going to be a successful thing.


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