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Tuesday, April 19, 2011

M&M to Shift Boeing’s Aircraft Machinery Plant in Melbourne to Bangalore

Indian automotive giant Mahindra & Mahindra Ltd has decided to dismantle Boeing’s aircraft machinery plant in Melbourne and shift it to Karnataka-India. Reportedly the company is also in talks with several major aviation companies to be a supplier of components and services and has asked the Karnataka government to allocate land close to Bangalore airport.

The company hopes this would boost orders as it will likely help improve the quality of aircraft parts it produces and attract clients that need to fulfill their offset obligations in India. Under the Indian law, foreign companies selected for government defence contracts have to source about 30 per cent of the project value from local vendors if the project is worth Rs 300 crore or more. According to information M & M has designed along with NAL the NM 5 and will shortly undergo a trial flight.

Last year, Mahindra purchased 75.1 per cent stake in two Australian aerospace companies — Gippsland Aeronautics and Aerostaff Australia — for a total of around Rs 175 crore to expand its aircraft and aerospace-component manufacturing capabilities in Australia.

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