Sector briefingAerospace Opportunitiesin GermanyWhy Germany?Aerospace is one of Germany’s most innovativeand best performi...
Overview                                            & Whitney. Rolls-Royce Deutschland                                    ...
can outsource the delivery of complete sub-         Opportunitiessystems.                                                 ...
Major events and activities                         UKTI contactsAero Friedrichshafen                                Katja...
Next steps -How UKTI can help                                                                     •   Arranging appointmen...
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Aerospace Opportunities In Germany


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Aerospace Opportunities In Germany

  1. 1. Sector briefingAerospace Opportunitiesin GermanyWhy Germany?Aerospace is one of Germany’s most innovativeand best performing industries. With more than155 companies and institutions, over 93,700employees and a turnover of €23.6bn (+4%) in2009, Germany is the third largestaerospace industry in Europe after the UKand France.Since the mid-1990’s the German aerospaceindustry has been steadily growing at anaverage rate of 9% per year. Even though itwas unavoidably affected by the globaleconomic and financial crisis, the long-termprojections for the aerospace industry are verypositive. Aerospace is a rapidly expanding “Aerospace is one ofindustry. For the next 20 years Airbus projectsa demand for 25,000 new aircraft world- Germanys most innovativewide. Boeing’s anticipations are even more and best performingoptimistic. industries.”Find general information on German marketconditions on UKTIs website. The DoingBusiness Guide for Germany gives an overviewof Germany’s economy, business culture,potential opportunities and an introduction toother relevant issues.UK Trade & Investment Sector briefing: Aerospace opportunities in Germany
  2. 2. Overview & Whitney. Rolls-Royce Deutschland manufacture engines for business jets inMost of the world’s major aerospace players Germany and are the competence centre forhave manufacturing facilities in Germany: twin-shaft turbofan engines.Airbus (passenger and cargo planes),Eurofighter (Typhoon jets), Eurocopter MRO: MTU Maintenance is one of two(helicopters) and EADS Astrium (satellites, independent engine MRO providers, the otherlaunchers, orbital facilities). Moreover, MTU being Lufthansa Technik. In 2007, Rolls-Royceand Rolls Royce produce some of the world’s and Lufthansa Technik officially opened themost advanced aircraft engines in the world. plant of their new joint-venture N3 EngineMTU Maintenance and Lufthansa Technik Overhaul Services in Erfurt, Thüringen.ensure first class maintenance, repair andoverhaul services. Military AviationThe aerospace industry in Germany is Their participation in military programmesparticularly strong in three powerful clusters meant there was some continual business for(Bavaria, Hamburg, Berlin-Brandenburg), with the German aerospace industry during thethematic priorities in different areas including financial crises. In 2009 the turnover ofstructure, cabin interiors, engines and military aviation increased to EUR 6 bnlightweight construction. (+4.6%). EADS and Eurocopter are also major players in the military aerospace sector. MTUCivil Aviation and Rolls-Royce are co-operating on various projects such as EJ200 for the Eurofighter,Structures: Germany is home to the Airbus RTM322 for the NH90 helicopter or TP400 forCentre of Excellence for Fuselage & Cabin. By the A400M.outsourcing the former Airbus sites that focuson composite structures to the new company SpacePremium Aerotec GmbH, a new strong supplierof lightweight structures has been established. Germany’s space policy is founded on threeThe critical issue will be in how far Airbus can pillars: Firstly, the participation in Europeanreplace metal structures with lightweight programmes, above all ESA and EUMETSAT,structures and whether their suppliers will be secondly, the German national spaceable to come up with more efficient CFK programme and thirdly, the German Researchproduction technologies. At the moment both Centre for Aerospace, DLR, which, with overAirbus and Premium Aerotec are heavily 6,000 employees and 29 institutes, is one ofinvesting in new production facilities for the largest aerospace research centres worldcomposite structures for the A350. wide. In 2009 the German space industry generated a turnover of EUR 2 bn (+14%) withCabin: The sale of the former Airbus site in 6,200 people employed in the sector (+9.5%).Laupheim to Diehl and Thales generated a newand stronger system integrator Diehl Air Cabin. Trends and OpportunitiesThe working group Cabin/Cargo within theGerman Aerospace Industries Association BDLI Restructuring of the supply-chaintries to bring the leading companies in thatarea together in order to facilitate cooperation. In recent years competition in the globalThe pressure of consolidation in this area is aerospace industry has increased, new playersstrong. 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 timefor tender whereas it used to be up to 100 in developing new aircraft has become anprevious programmes. increasingly complex business with tremendous costs and risks involved. Consequently theEngines: In engines Germany has strong primes, above all Airbus and Boeing, want tomanufacturing 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 butand Rolls-Royce Deutschland. MTU do not stronger suppliers who can act as risk-sharingmanufacture any engines of their own but partners and system integrators to whom theycooperate with different partners such as PrattUK Trade & Investment Sector briefing: Aerospace opportunities in Germany
  3. 3. can outsource the delivery of complete sub- Opportunitiessystems. New programmes represent generic marketThe 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 anda 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 companiescountries like France, the UK or the US. This is capable of competing as system integratorsseen with considerable concern. The fact that on a global level opens the opportunity for UKwork packages for the A380 were contracted companies to enter into a strategicdirectly out to German suppliers from Airbus alliance/joint-venture with a German companyand are now contracted via foreign Tier 1- to possibly gain a new stronger position assuppliers, led to the fear that these work system integrator together.packages could be lost in future projects. TheGerman supply chain is still very fragmented If you have any questions on opportunities,and dominated by SMEs. The future please contact the UKTI Germany Aerospacecompetitiveness of the German aerospace contacts named in this report. Businessindustry will depend on its ability to forge some opportunities aimed specifically at UKnew 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 andRelocation of the supply-chain Consulates, across all sectors and in over 100 markets.At the same time the OEMs are moving theirown production to low-cost countries to escape You can be alerted to Germany/Aerospacethe dollar dilemma. More and more aircraft are business opportunities on a regular basis bypurchased by airlines from Asia and the Middle registering on the UKTI website. Find out moreEast and these countries want to participate in on UKTI’s business opportunities service on thethe value creation of the airplanes. The move UKTI websiteof the primes to low-cost countries putspressure on their suppliers to follow. In factAirbus support companies who are willing tomove some of their production to low-costcountries and wish to identify a commonstrategy.Sustainable aviationThe growing public awareness of climatechange has lead to an increasing demand formore effective aircraft and sustainableaviation. As far as technology improvementsare concerned, the German aerospace industryis leading in a number of areas such as weightreduction of the fuselage, energy-saving cabinsystems and more efficient engines.Unmanned Aerial VehiclesUnmanned Aerial Vehicles or UAVs are alsogaining more and more importance world-wide.The German military is investing in this newtechnology, for example in a squadron of EUROHAWK UAVs. UAVs are also increasinglydeployed for civilian or police purposes. On thewhole German companies invest about EUR 3bn per year in the research and developmentof UAV technology.UK Trade & Investment Sector briefing: Aerospace opportunities in Germany
  4. 4. Major events and activities UKTI contactsAero Friedrichshafen Katja SchlaugInternational Exhibition for General Aviation Senior Trade Adviser13 - 16 April 2011 in Friedrichshafen British Consulate-General MunichContact: Tel: 0049 (0)89 21109 135Website: Email: InteriorsThe world’s largest Aircraft Interiors Exhibition Eva Findeis05 – 07 April 2011 in Hamburg Trade AdviserContact: British Consulate-General MunichWebsite: Tel: 0049 (0)89 21109 137 Email: Testing, Design and Trade Fair for the AerospaceEngineering Development Community05 – 07 April 2011 in HamburgContact: www.aerospacetesting.comAirtecInternational Aerospace Supply Fair02 – 04 November 2011 in FrankfurtContact: airtec@demat.comWebsite: www.airtec.aeroILA Berlin Air ShowInternational Aerospace Exhibition andConferences12 – 17 June 2012 in Berlin(every two years)Contact: ila@messe-berlin.deWebsite: www.ila-berlin.comFind full details of all events in thiscountry and sector on the UKTI website.New export events are added daily to the siteand you can register to be alerted to them on adaily, weekly or monthly basis.UKTI’s Tradeshow Access Programme (TAP)provides grant support for eligible Small &Medium Sized Enterprises (SMEs) to attendtrade shows overseas. Find out more aboutUKTI support for attendance at overseaseventsUK Trade & Investment Sector briefing: Aerospace opportunities in Germany
  5. 5. Next steps -How UKTI can help • Arranging appointmentsBritish companies wishing to develop their • Organising seminars or other events forbusiness in the German market are advised to you to meet contacts and promote yourundertake as much market research and company in the German marketplanning as possible in the UK. UKTI’s team inGermany, with its wide local knowledge and This work is available via our Overseas Marketexperience, can provide a range of services to Introduction Service (OMIS) a chargeableBritish-based companies wishing to grow their service which assists British-based companiesbusiness 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 youWhereas 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 & CommonwealthOffice), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility acceptedas 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