EVA Airways expands business with new manufacturing unit

EVA Airways, Taiwan's second largest airline, is developing its upstream aircraft maintenance and aircraft manufacturing businesses, with the latter seeing orders triple this year compared with last year, reports our sister paper Commercial Times, citing EVA chairman Chang Kuo-wei.

EVA's next step is to expand toward aerospace manufacturing, including aircraft maintenance and aircraft manufacturing. Evergreen Aviation Technologies Corp, the group's maintenance unit, has been in stable growth, according to Chang. The group has recently founded a new unit to focus on manufacturing engines and parts, and will expand to include aircraft precision parts and components.

The group is building a new manufacturing factory in Taoyuan in northern Taiwan, scheduled for completion in May next year and will have a registered capital of as much as NT$7 billion (US$236.6 million). Chang said that the new manufacturing unit will have a revenue of about NT$1 billion (US$33.8 million) this year, and once its new factory is completed, its revenues will see explosive growth.

Currently, the unit gets orders of engine parts and components chiefly from General Motors. It is also negotiating with Boeing and Airbus for new orders, Chang added. Evergreen Aviation, after becoming a maintenance center in Asia, has not only cultivated networks but has also obtained technology transfers from Boeing.

It is now the perfect time to enter the aircraft manufacturing business, Chang said, adding that Evergreen Group, parent of EVA Airways, will accelerate its recruitment scheme in the aerospace manufacturing industry in the next two years. However, Chang admitted that it may be hard to find domestic talent, especially engineers.

In general, aerospace manufacturing companies can outsource other satellite plants to make parts and components, but Taiwan's related firms have faced difficulty in the past in seeking certification. Now that EVA can handle the certification, the prospects of Taiwan's aerospace manufacturing industry is good, Chang said.

Evergreen Aviation has an annual revenue of around NT$18 billion (US$608.4 million) and is seeing single-digit growth every year as its technological requirement is comparatively low, Chang said. Its major clients include Japan Airlines, All Nippon Airways, and Vietnam Airlines.

Original article:  http://www.wantchinatimes.com