QuEST to hold 74% stake in the joint venture, with Saab holding 26%
New entity to be based out of QuEST Global’s SEZ in Belgaum, Karnataka
The new Joint Venture titled “Aero Assemblies India” will further strengthen Saab’s presence in India
Bangalore, India, 29th November, 2012: QuEST Global Manufacturing signed a Joint Venture agreement with global Defence and Security major, Saab to set up an ‘Aerostructure Assembly Joint Venture’. The new entity will manufacture and supply assemblies for the technology intense commercial aerostructures market. As part of the agreement, Saab will hold 26% stake in line with their objective to strengthen its strategic presence in India. The new entity aptly called “Aero Assemblies India” will be located in Belgaum, Karnataka, India where QuEST Global manages a fully operational Special Economic Zone and houses the QuEST Global Manufacturing division. Facilities for the joint venture will be developed through 2013 and the unit will initially become operational with about 50 employees and is expected to ramp up to over 400 in the near future.
Commenting on the occasion, Aravind Melligeri, Co-Founder and Chairman of QuEST Global said, “This joint venture with Saab is a clear indication of our impetus in the aerospace sector and promises to go a long way in enhancing our aerospace ecosystem within the SEZ at Belgaum. This milestone also promises to unveil new vistas in Aerospace Manufacturing while providing India with the added global exposure and expertise in this sector.”
He adds, “With this partnership, QuEST is now well poised to offer its aerospace customers a full range of manufacturing supply chain solutions while achieving our Global Manufacturing growth objectives through 2016 and beyond.”
The new entity has been established with a vision to develop a robust aerospace business that is focused on build-to-print assemblies for the emerging market opportunities in India. In addition to this, its long term goal will be to emerge as an independent unit that would become a cost effective solution provider of choice in the aero structure assemblies’ space.
This partnership between the two companies will see knowledge transfer to develop capability building for Assembly, Tooling, Material and Supply Chain as well as technical training for assemblies and sub assemblies. With this, QuEST Global Manufacturing further broadens its offerings in aerospace manufacturing to its customers
“We’re experiencing increased production rates during the coming years. This partnership will provide a cost-efficient and reliable source of assemblies acting as a complement to Saab’s in-house manufacturing. This is a long-term commitment in a strategically important market for Saab and it further establishes Saab as a global player in the commercial aerostructures market”, says Kjell Johnsson, Head, Aerostructures , Saab
The growing demand for aerospace products and services has propelled the markets to explore partnerships that can offer joint capabilities that are advanced and competitive to its customers. QuEST with its global delivery best practices along with Saab’s strong technology lineage is well poised to be among the few partnerships that will create an indelible impression in the aerospace industry in the years to come. ###
About QuEST Global
QuEST Global is a leading provider of engineering and manufacturing solutions in the aerospace & defence, aero engines, power generation, industrial products and oil & gas domains.
QuEST Global Manufacturing, a group company of QuEST Global, is a provider of precision machining, sheet metal fabrication, and assembly solutions to the Aerospace, Automotive, and Oil & Gas markets. QuEST is leading private sector Aerospace manufacturing in India through development of an Aerospace Ecosystem, long term customer and supplier partnerships, and strategic joint ventures all operating within the QuEST Global SEZ in Belgaum (Karnataka, India). QuEST Global Manufacturing is an AS 9100 and TS 16949 certified company.
More information is available at: www.quest-global.com
Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.
More information is available at: www.saabgroup.com
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Notes to the Editor: Global demand for passenger air travel is projected to grow by over 5% per year for the next 20 years with the world commercial fleets expanding to more than 39,500 airplanes; as per news reports Indian carriers themselves will require 1,450 new aircraft worth $175 billion to cope with the growth in passenger traffic in the same period. In keeping with this growing demand, developing nations like China and India are fast becoming hubs for aerospace manufacturing and offer cost plus skill advantages for its customers the world over.