Aerospace opportunities in Germany

An Expert's View about Aircraft Parts and Equipment in Germany

Posted on: 1 Sep 2010

Latest overview of market potential for the aerospace sector in Germany.

Sector briefing Aerospace Opportunities in Germany Why Germany? Aerospace is one of Germany?s most innovative and best performing industries. With more than 155 companies and institutions, over 93,700 employees and a turnover of ?23.6bn (+4%) in 2009, Germany is the third largest aerospace industry in Europe after the UK and France. Since the mid-1990?s the German aerospace industry has been steadily growing at an average rate of 9% per year. Even though it was unavoidably affected by the global economic and financial crisis, the long-term projections for the aerospace industry are very positive. Aerospace is a rapidly expanding ?Aerospace is one of industry. For the next 20 years Airbus projects Germany's most innovative a demand for 25,000 new aircraft world- and best performing wide. Boeing?s anticipations are even more optimistic. industries.? Find general information on German market conditions on UKTI's website. The Doing Business Guide for Germany gives an overview of Germany?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Aerospace opportunities in Germany & Whitney. Rolls-Royce Deutschland Overview manufacture engines for business jets in Germany and are the competence centre for Most of the world?s major aerospace players twin-shaft turbofan engines. have manufacturing facilities in Germany: Airbus (passenger and cargo planes), MRO: MTU Maintenance is one of two Eurofighter (Typhoon jets), Eurocopter independent engine MRO providers, the other (helicopters) and EADS Astrium (satellites, being Lufthansa Technik. In 2007, Rolls-Royce launchers, orbital facilities). Moreover, MTU and Lufthansa Technik officially opened the and Rolls Royce produce some of the world?s plant of their new joint-venture N3 Engine most advanced aircraft engines in the world. Overhaul Services in Erfurt, Thüringen. MTU Maintenance and Lufthansa Technik ensure first class maintenance, repair and Military Aviation overhaul services. Their participation in military programmes The aerospace industry in Germany is meant there was some continual business for particularly strong in three powerful clusters the German aerospace industry during the (Bavaria, Hamburg, Berlin-Brandenburg), with financial crises. In 2009 the turnover of thematic priorities in different areas including military aviation increased to EUR 6 bn structure, cabin interiors, engines and (+4.6%). EADS and Eurocopter are also major lightweight construction. players in the military aerospace sector. MTU and Rolls-Royce are co-operating on various Civil Aviation projects such as EJ200 for the Eurofighter, RTM322 for the NH90 helicopter or TP400 for Structures: Germany is home to the Airbus the A400M. Centre of Excellence for Fuselage & Cabin. By outsourcing the former Airbus sites that focus Space on composite structures to the new company Premium Aerotec GmbH, a new strong supplier Germany?s space policy is founded on three of lightweight structures has been established. pillars: Firstly, the participation in European The critical issue will be in how far Airbus can programmes, above all ESA and EUMETSAT, replace metal structures with lightweight secondly, the German national space structures and whether their suppliers will be programme and thirdly, the German Research able to come up with more efficient CFK Centre for Aerospace, DLR, which, with over production technologies. At the moment both 6,000 employees and 29 institutes, is one of Airbus and Premium Aerotec are heavily the largest aerospace research centres world investing in new production facilities for wide. In 2009 the German space industry composite structures for the A350. generated a turnover of EUR 2 bn (+14%) with 6,200 people employed in the sector (+9.5%). Cabin: The sale of the former Airbus site in Laupheim to Diehl and Thales generated a new Trends and Opportunities and stronger system integrator Diehl Air Cabin. The working group Cabin/Cargo within the German Aerospace Industries Association BDLI Restructuring of the supply-chain tries to bring the leading companies in that area together in order to facilitate cooperation. In recent years competition in the global The pressure of consolidation in this area is aerospace industry has increased, new players strong. For example, on the A350 XWB only 10 have emerged from countries like India, China, work packages in this sub-sector were put out Russia or the Middle East. At the same time for tender whereas it used to be up to 100 in developing new aircraft has become an previous programmes. increasingly complex business with tremendous costs and risks involved. Consequently the Engines: In engines Germany has strong primes, above all Airbus and Boeing, want to manufacturing and MRO capabilities. The two concentrate on their core business: major players who together achieve 80% of development and final assembly. the turnover in this area are MTU Aero Engines Consequently, their aim is to have fewer but and Rolls-Royce Deutschland. MTU do not stronger suppliers who can act as risk-sharing manufacture any engines of their own but partners and system integrators to whom they cooperate with different partners such as Pratt UK Trade & Investment Sector briefing: Aerospace opportunities in Germany can outsource the delivery of complete sub- Opportunities systems. New programmes represent generic market The German Aerospace Association BDLI as entry opportunities as the ?political obligation? well as the German government have identified to use national sub-suppliers is shrinking and a lack of systems integrators who can act as replaced by a more ?commercial approach?. Tier 1-suppliers in Germany in comparison to The lack of specialised German companies countries like France, the UK or the US. This is capable of competing as system integrators seen with considerable concern. The fact that on a global level opens the opportunity for UK work packages for the A380 were contracted companies to enter into a strategic directly out to German suppliers from Airbus alliance/joint-venture with a German company and are now contracted via foreign Tier 1- to possibly gain a new stronger position as suppliers, led to the fear that these work system integrator together. packages could be lost in future projects. The German supply chain is still very fragmented If you have any questions on opportunities, and dominated by SMEs. The future please contact the UKTI Germany Aerospace competitiveness of the German aerospace contacts named in this report. Business industry will depend on its ability to forge some opportunities aimed specifically at UK new and strong alliances ? potentially also with companies are added daily to UKTI?s website. companies from the UK. These leads are sourced by our staff overseas in British Embassies, High Commissions and Relocation of the supply-chain Consulates, across all sectors and in over 100 markets. At the same time the OEMs are moving their own production to low-cost countries to escape You can be alerted to Germany/Aerospace the dollar dilemma. More and more aircraft are business opportunities on a regular basis by purchased by airlines from Asia and the Middle registering on the UKTI website. Find out more East and these countries want to participate in on UKTI?s business opportunities service on the the value creation of the airplanes. The move UKTI website of the primes to low-cost countries puts pressure on their suppliers to follow. In fact Airbus support companies who are willing to move some of their production to low-cost countries and wish to identify a common strategy. Sustainable aviation The growing public awareness of climate change has lead to an increasing demand for more effective aircraft and sustainable aviation. As far as technology improvements are concerned, the German aerospace industry is leading in a number of areas such as weight reduction of the fuselage, energy-saving cabin systems and more efficient engines. Unmanned Aerial Vehicles Unmanned Aerial Vehicles or UAVs are also gaining more and more importance world-wide. The German military is investing in this new technology, for example in a squadron of EURO HAWK UAVs. UAVs are also increasingly deployed for civilian or police purposes. On the whole German companies invest about EUR 3 bn per year in the research and development of UAV technology. UK Trade & Investment Sector briefing: Aerospace opportunities in Germany Major events and activities UKTI contacts Aero Friedrichshafen Katja Schlaug International Exhibition for General Aviation Senior Trade Adviser 13 - 16 April 2011 in Friedrichshafen British Consulate-General Munich Contact: aero@messe-fn.de Tel: 0049 (0)89 21109 135 Website: www.aero-expo.com Email: katja.schlaug@fco.gov.uk www.ukti.gov.uk Aircraft Interiors The world?s largest Aircraft Interiors Exhibition Eva Findeis 05 ? 07 April 2011 in Hamburg Trade Adviser Contact: rxinfo@reedexpo.co.uk British Consulate-General Munich Website: www.aircraftinteriorsexpo.com Tel: 0049 (0)89 21109 137 Email: eva.findeis@fco.gov.uk Aerospace Testing, Design and www.ukti.gov.uk Manufacturing International Trade Fair for the Aerospace Engineering Development Community 05 ? 07 April 2011 in Hamburg Contact: aerospacetesting@reedexpo.co.uk Website: www.aerospacetesting.com Airtec International Aerospace Supply Fair 02 ? 04 November 2011 in Frankfurt Contact: airtec@demat.com Website: www.airtec.aero ILA Berlin Air Show International Aerospace Exhibition and Conferences 12 ? 17 June 2012 in Berlin (every two years) Contact: ila@messe-berlin.de Website: www.ila-berlin.com Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Aerospace opportunities in Germany Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organising seminars or other events for business in the German market are advised to you to meet contacts and promote your undertake as much market research and company in the German market planning as possible in the UK. UKTI?s team in Germany, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the German market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Aerospace opportunities in Germany
Posted: 01 September 2010