This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Las empresas de Hegan crecen un 7,5% y alcanzan una facturación de 1.255 M

Maintaining employment in the aerospace industry and space facilities in the Basque country

The companies of Hegan grow 7,5% and reach a turnover of 1.255 M

Drafting Interempresas03/06/2011

June 3, 2011

37 Organizations integrated in the Association of aeronautical and space Hegan cluster checked 1.255 million euros last year, an increase of 7.5% on 2009. Associated companies have closed 2010 - an exercise that, affected by the global financial and economic crisis, have needed to test their ability of resistance, with growth of staff recruited, entry into new segments and the maintenance of the high investment in r & d. These figures in the cluster were made public on the occasion of the General Assembly held in Bilbao, in the course of which Jorge Unda, Chairman Hegan, unveiled the situation of the sector.

Image of the partners to Hegan during its last General Assembly held in Bilbao.

Despite having continued accusing the difficulties generated by the crisis, the year 2010 has left behind the stalemate and gave passage to the first signs of an incipient recovery, is expected to continue throughout the year 2011 and accelerated in the last quarter of the year. The return of confidence of consumers and airlines, reflected in the favourable evolution of commercial aviation in the past year, and the entry into production of new programs, has driven the growth of sales of companies associated in Hegan.

Thus, the total turnover of all partners in the whole of the plants has reached 1.255 million euros in 2010, 7.5 per cent more than the previous year, exceeding the figure record sales in 2008 (𔚹.229 billion). "We could say, therefore, that we return to the path of growth, interrupted on time, and anticipate further growth for the year 2011, which could be around 6% at the end of this period", as stated by the President of Hegan.

Similarly, employment, despite all the problems that occurred, has increased by 8.6% in the total number of partners. With regard to the activity in plants located in the Basque country, turnover has increased by 4%, to almost 663 million euros, sales which have brought forward 3.738 people, 14 less than in the previous year.

In the chapter on exports, Basque companies have reached 782 million euros, a growth of 5% on the previous year, representing a percentage exceeding 62% on the total sales. Excel sales to Germany, which is placed as main market target, with 29% of total exports, while exports to Brazil and United Kingdom grow more moderately.

The effort maintained by the sector in investments in r & d is also significant. In the past 15 years, associate companies in Hegan have designed an annual average of 16% of sales to research and development, a percentage that 2010 represented an investment of EUR 142 million, which comes to be 13% of Basque total investment in r & d. "this permanent and long-term effort in time is, which has led to"", along with the rest of key factors, get good competitive situation in a sector prepared to take advantage of the signs of recovery and that generates some indirect social property of great importance."

By areas of activity, 49.8 per cent of the turnover of the sector has fallen to aerostructures, followed by engines, with 40.6%. The area of systems and equipment was almost 7% of the turnover and experienced a growth in turnover of 14% compared to last year. For its part, space recorded a 2.7% of the total.

It stresses once again in this exercise the good level of exports achieved by small and medium-sized companies in the sector. "Our SMEs have been able to make a space more and more, directly with contractors in other countries that supplied from great tools for structures of aircraft parts of nacelles (fairings), structural components and engines, systems, equipment and tests." It is worth mentioning the important role of SMEs in creating employment in the Basque country. More than 1,000 jobs, approximately one-third of employment in the Basque plants, corresponds to these companies, which sell more than 50% companies outside the cluster.

Forecasts for the sector

The most recent forecast to five years of the International Association of air transportation (IATA) provides that the growth in the numbers of passengers will be 5.8% average per year until 2014, which means that about 3.3 billion people, 800 million will be using the global aviation system by then more that currently, proposing changes and new challenges for the industry.

"Predictably, our companies reach a stage of greater dynamism between 2011 and 2015, thanks to the launch of the production and sales in the new A380, A350XWB and A400M from Airbus and Boeing 787 Dreamliner aircraft, mostly." "We hope also that there is a good development and a greater capacity for growth of our companies in the segments of helicopters, regional and business aviation".

Members of the cluster Hegan provide for growth in this period that can reach to 100% in engines and range between 30 and 100% in aerostructures, linked to compliance with the rates provided for in the various programmes.

Work for the A350XWB programme of Airbus, expected that you fly in 2012 and reach customers in 2013, are of great importance for the future of Basque companies. Partners are involved at various stages of conceptual design and detail of components, tooling and structural tests, and in cases of Aernnova, Aciturri and Alestis, are involved as partners at risk with large packages of work of the major structures of the aircraft. This formula of work risk extends to the Trent XWB engine, in which ITP is responsible for the low pressure of engine turbine.

Mount A400M Sponsons Aciturri facilities, Member of Hegan.

It highlights the entry of Basque companies in new segments of helicopters, as the SuperPuma of Eurocopter and Agusta Westland NH90, and executive aircraft, which include several appliances of Hawker Beechcraft Corporation (HBC), within the programme of diversification of the sector.

"We must, however, continue to stimulating challenges arising from globalization, to which our sector must develop and maintain their competitive edge in a sustainable manner through the improvement in the effectiveness and efficiency in every one of the members of the value of the product chain." Among these challenges point dollarization in the procurement process and a euro perhaps overvalued, the volatility of the cost of raw materials, higher wage costs to obtain adequate funding to deadlines and figures of the sector and the need to maintain high levels of r & d. Deseamos followed in other areas, the understanding with labour agents to build competitiveness among all, remain competitive with strategic locations and taking special care of the growth "of jobs located in the Basque country", State from Hegan.