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Magazin "take off" - Issue 24 - FACC

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akeoff <strong>24</strong><br />

F A C C C U S T O M E R M A G A Z I N E 07.09<br />

Winglets<br />

Structures<br />

<strong>FACC</strong> is a specialist in the<br />

development and manufacture<br />

of lightweight aerostructures<br />

from fiber-reinforced composites<br />

Wing Fairings<br />

Engine Composites<br />

Wing Moveables<br />

Engine Nacelles<br />

A350 XWB:<br />

<strong>FACC</strong> is a partner for development,<br />

production and industrialization<br />

Customer Portrait:<br />

The Goodrich Corporation<br />

Top Performance:<br />

ACAC awards <strong>FACC</strong> the<br />

Silver Medal Supplier Award


16 2 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

EDITORIAL<br />

CONTENTS<br />

Welcome readers,<br />

20 years of <strong>FACC</strong>: On October 16, 1989, <strong>FACC</strong> was established<br />

as an independent company. At that time the<br />

company, with 102 employees, attained a turnover of<br />

barely 6 million euros. Today <strong>FACC</strong> is one of the leading<br />

aviation suppliers in the composite technology. In between<br />

there lies a unique track story. Take a trip with us<br />

back in time – in this magazine we will show you how<br />

everything began and once again present the highlights<br />

and milestones in the history of <strong>FACC</strong>.<br />

Goodrich was one of the first <strong>FACC</strong> customers; at<br />

that time it still went under the name of Rohr Inc.. Today<br />

the American aviation company is still one of the most<br />

important partners of <strong>FACC</strong>. The development of<br />

Goodrich and <strong>FACC</strong> are somewhat similar, even though<br />

the dimensions are different. Both began in the business<br />

of producing something totally unrelated to aviation –<br />

rubber products and tires at Goodrich, and skis at <strong>FACC</strong><br />

– before developing into aviation specialists. Read about<br />

this model company in the article about Goodrich.<br />

Let’s change the subject: This <strong>take</strong> off focuses on the<br />

<strong>FACC</strong> Structures division, coupled with the influences<br />

of the financially strapped aviation sector. The headlines<br />

are full of reports of decreasing numbers of airline passengers,<br />

the least air cargo demand since 2001, a slowdown<br />

in aircraft manufacturing, and the cutting of jobs.<br />

Many suppliers are now feeling the effects of the economic<br />

crisis. But in spite of – or maybe even because of<br />

– this situation, they are pressing ahead with new technologies<br />

and developments. And there is plenty to do,<br />

especially for companies which work with composite<br />

materials. The increase in the use of composite materials<br />

in the manufacturing of aircraft and the large-scale<br />

changes connected with this situation will open new<br />

paths for many enterprises. A recently released study by<br />

Roland Berger Strategy Consultants, internationally acknowledged<br />

corporate consultants, shows that the use<br />

of composites in aircraft structures will increase by an<br />

average of around 15 % annually in the next 12 years.<br />

These are pleasant prognoses for a market segment of<br />

the future. Read in this issue about how <strong>FACC</strong> intends<br />

to profit from this situation, which plans the Structures<br />

division has for the future and about its involvement in<br />

the new A350 XWB.<br />

On behalf of the entire editorial team, I hope you find<br />

this issue to be an interesting read.<br />

03 Where do we move<br />

04 A350 XWB:<br />

<strong>FACC</strong> Is a Partner for Development,<br />

Production and Industrialization<br />

07 <strong>FACC</strong> Structures Division:<br />

We will jointly enter important<br />

markets with our customers<br />

10 Customer Portrait:<br />

The Goodrich Corporation<br />

13 Top Performance:<br />

ACAC Awards <strong>FACC</strong><br />

14 Excellent Supplier Award:<br />

The Best Are Rewarded For<br />

Their Efforts<br />

15 Linz09:<br />

A City Is Alive With Art<br />

and Culture<br />

Andrea Schachinger<br />

Editor<br />

PS.: We welcome your comments.<br />

Published by: <strong>FACC</strong> AG, Fischerstraße 9, A-4910 Ried/Austria. Editorial Staff: Walter Stephan,<br />

Bernhard Matzner, Andrea Schachinger. Photos: Manfred Lang Klagenfurt, Airbus Toulouse, Alois<br />

Furtner Ried, Goodrich Charlotte, ACAC Shanghai, Mubadala Abu Dhabi, RORA Schörfling,<br />

Rolls-Royce Derby, Pointecker Mehrnbach, <strong>FACC</strong> Ried, Linz09. Design and Composition: Oskar<br />

Pointecker, 4941 Mehrnbach.<br />

<strong>take</strong>off@facc.at


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 3<br />

Where do we move<br />

>> The economic situation is still<br />

very insecure. In the last six months<br />

<strong>FACC</strong> AG initiated different changes<br />

and implemented important milestones<br />

in order to meet the challenges<br />

of these difficult times.<br />

First let me express my evaluation<br />

of the economic climate in the<br />

aviation industry. At first glance the<br />

Paris Airshow gave us the impression<br />

that the troubles in the aviation<br />

industry have bottomed out and that<br />

the only way to go is up. When the<br />

show was over, a backlog of 8,200<br />

airplanes was on the books for Airbus,<br />

Boeing, Bombardier, Embraer<br />

and Rolls-Royce that will fill production<br />

capacity for many years, even<br />

though new airplane orders were the<br />

exception rather than the rule at the<br />

show.<br />

Realistically things look different<br />

for the airlines: For 2009, IATA (International<br />

Air Transport Association)<br />

calculates a 15 % decrease in passenger<br />

travel as compared to the<br />

previous year, a drop that is double<br />

the one that occurred after the<br />

events of September 2001. At the<br />

same time, fuel prices are going up.<br />

Experts predict that due to these<br />

facts, there will be an excess capacity<br />

of 1,300 airplanes on the market<br />

at the end of the year. For a manufacturer<br />

like <strong>FACC</strong> AG that is not located<br />

in the dollar zone, the fact that<br />

the US dollar has become much<br />

weaker in recent months makes the<br />

situation even worse.<br />

And now let’s <strong>take</strong> a look closer<br />

to home: In the completed fiscal year<br />

of 2008/09, <strong>FACC</strong> AG achieved a<br />

turnover of Euro 264 million and a<br />

positive result of Euro 6.3 million<br />

after having achieved a first-ever<br />

negative EBIT of Euro -1.8 million in<br />

the previous year. At the same time,<br />

we were fortunate enough to have a<br />

sharp increase in orders last year.<br />

Right now they come to 1.86 billion<br />

USD.<br />

<strong>FACC</strong> has already <strong>take</strong>n drastic<br />

measures to make the company resistant<br />

to crises and more efficient in<br />

the future. Last year we carried out<br />

organizational changes that replaced<br />

the former structures with effective<br />

profit centers. These measures are<br />

leading to a measurable reduction of<br />

fixed costs and in the coming years<br />

will contribute to a lasting strengthening<br />

of the competitiveness of<br />

<strong>FACC</strong> AG and to an uninterrupted increase<br />

in profitability.<br />

A new collaboration has set the<br />

course for the expansion of our<br />

global network and for the safeguarding<br />

of our growth strategy:<br />

<strong>FACC</strong> AG has entered into a longterm<br />

partnership with Mubadala, a<br />

state-owned investment company in<br />

the United Arab Emirates. This collaboration<br />

stipulates that <strong>FACC</strong> will<br />

consult Strata Manufacturing, a subsidiary<br />

of Mubadala, in the construction<br />

of an advanced composite production<br />

facility in Abu Dhabi and in<br />

addition on a long-term basis procure<br />

composite components from<br />

this facility which is located in a US<br />

dollar zone. It is being planned that<br />

this collaboration will be expanded<br />

to include the development of components<br />

for new passenger planes.<br />

In the process the partners want to<br />

work together intensively in R&D, involving<br />

United Arab Emirate and<br />

Austrian universities.<br />

On October 16, <strong>FACC</strong> will be celebrating<br />

its 20th company anniversary<br />

– a significant milestone in the<br />

journey of the company from a supplier<br />

of small components to an internationally<br />

renowned systems<br />

partner in the aviation industry. This<br />

is a perfect chance to look back with<br />

pride and examine the successful as<br />

well as the difficult times. But our attention<br />

is directed optimistically to<br />

the future and we are looking forward<br />

to the challenges awaiting<br />

<strong>FACC</strong>. We want to make use of the<br />

chances and opportunities that<br />

changes bring to be able to make<br />

important and lasting contributions<br />

to aviation in the future. We are in the<br />

best possible position to do this: In<br />

the next decades where technology<br />

is concerned, composites will be the<br />

heart of the aviation industry.<br />

Walter A. Stephan<br />

Chairman of the Board and CEO<br />

<strong>FACC</strong> AG


16 4 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

A350 XWB:<br />

<strong>FACC</strong> Is a Partner for Development,<br />

Production and Industrialization<br />

The A350 XWB was designed to transport passengers from A to B as efficiently as<br />

possible. Its strengths are its distinctive aerodynamics and its advanced technologies<br />

and materials. This also goes for the components and systems that <strong>FACC</strong> is helping<br />

to develop for the new long-range airplane. This all saves fuel, reduces operating<br />

costs and is easy on the environment.<br />

>> The A350 XWB (Xtra Wide Body)<br />

is Airbus’s answer to the market demand<br />

for a highly efficient longrange<br />

wide body plane with medium<br />

seating capacity. The new model series<br />

will fulfill the special requirements<br />

of the airlines that have originated<br />

in instable fuel prices, increasing<br />

demands of the passengers and<br />

stricter environmental regulations. A<br />

high degree of the weight of the<br />

plane - more than 50 % - will be of<br />

lightweight materials, a fact which<br />

contributes significantly to cost-savings.<br />

As a partner for development<br />

and production, <strong>FACC</strong> supports the<br />

activities of Airbus using its comprehensive<br />

expertise in the field of composites,<br />

patents and processes. It is<br />

developing weight-efficient systems<br />

from composite materials that result<br />

in reduced fuel consumption and a<br />

longer lifecycle and in addition facilitates<br />

maintenance and repair.<br />

Established Partnerships<br />

Expanded to the A350 XWB<br />

Airbus has had years of experience<br />

with focusing the best resources<br />

from different countries. The airplane<br />

manufacturer falls back on this rich<br />

treasure trove of experience, especially<br />

in the implementation of new<br />

products. Thus the company has set<br />

a goal for itself of assigning around<br />

half of the production of the next<br />

generation long-range plane to international<br />

partners. <strong>FACC</strong> is a supplier<br />

in this global network, a company<br />

that profits from its years of partnerships<br />

with Airbus, as well as with the<br />

engine manufacturer Rolls-Royce<br />

and the manufacturer of nacelles<br />

Goodrich Aerostructures. And in the<br />

future the company will extend this<br />

experience gathered from established<br />

programs to the new A350<br />

XWB. Composite components,<br />

processes and patents that <strong>FACC</strong><br />

has developed in the past for existing<br />

airplane families such as<br />

A330/A340, A380 and Boeing 787<br />

and that are currently being used in<br />

series production at <strong>FACC</strong> will be<br />

used once more for Airbus, Goodrich<br />

and Rolls-Royce for components<br />

of the A350 XWB. Among<br />

them are:<br />

<strong>FACC</strong> Facility 4 specializes in engine components and nacelles. Starting in<br />

2010, systems for the new A350 XWB will be produced here.<br />

Wing spoilers<br />

By co-designing and producing<br />

spoilers for the A350 XWB, <strong>FACC</strong> is<br />

expanding its cooperation with Airbus<br />

Toulouse and Bremen as a tier 1<br />

supplier and can optimally apply its<br />

experience that it gathered in unin-


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 5<br />

<strong>FACC</strong> will co-design and manufacture spoilers, translating sleeves and<br />

various engine composites for the new A350 XWB.<br />

terrupted research work over the<br />

years. After having developed and<br />

produced the three previous models<br />

– traditional spoilers with classic<br />

metal fittings for the A340, spoiler innovation<br />

with integrated RTM fittings<br />

for the A330/A340 family and the<br />

787 spoilers – <strong>FACC</strong> is now working<br />

on the fourth generation of spoilers,<br />

this time for the A350 XWB. The enhancement<br />

work and continuous optimization<br />

of the structural component<br />

involved - in the case of the<br />

A350 XWB there are seven different<br />

spoilers and one flaperon per wing –<br />

result in improved aerodynamic<br />

properties and a weight and costoptimal<br />

design that integrates innovative<br />

fittings and vital spoiler functions<br />

in a unit ready to be installed.<br />

This cooperation with Airbus is<br />

entering a new, promising phase.<br />

Beside its role of a partner for development<br />

and manufacturing, <strong>FACC</strong><br />

<strong>take</strong>s the responsibility of outsourcing<br />

the product to a production partner<br />

chosen by Airbus according to<br />

strategic considerations. In the first<br />

phase, <strong>FACC</strong> is carrying out the design<br />

and procurement of tools, the<br />

specifications of the production<br />

processes and first sample testing.<br />

Until 2015, <strong>FACC</strong> will produce all<br />

shipsets at its domestic location<br />

(<strong>FACC</strong> Facility Ried). It is planned<br />

that parallel to production at <strong>FACC</strong> a<br />

second and completely independent<br />

production line will be established,<br />

whereby <strong>FACC</strong> will previously have<br />

<strong>take</strong>n over the training of the employees<br />

of the partner supplier. Before<br />

and during the start-up phase,<br />

an <strong>FACC</strong> team will be stationed onsite<br />

at the supply chain partner. From<br />

the start of production to the step up<br />

of the production rate, <strong>FACC</strong> employees<br />

will supervise all stages of<br />

the relocation and thus ensure the<br />

long-term delivery of high-quality<br />

products for the A350 XWB from the<br />

Asian region. The goal has been set<br />

that by 2017, 100 % of the required<br />

A350 XWB spoilers will be supplied<br />

by the supply chain partner.<br />

With these measures, <strong>FACC</strong> is<br />

accompanying Airbus in its internationalization<br />

strategy and following<br />

the plane manufacturer on the path<br />

towards the further expansion of<br />

global supply chains, in order to<br />

support it in fulfilling its commitments<br />

in this strategic emerging<br />

market. For <strong>FACC</strong> as a tier 1 supplier,<br />

this program is a further innovative<br />

step in opening up new markets<br />

and in applying existing product<br />

expertise once again, but in an improved<br />

form, all in coordination with<br />

the customer. The long-range goal of<br />

establishing a reliable partner supplier<br />

is part and parcel of the collaboration<br />

between Airbus and <strong>FACC</strong> -<br />

a partner that can provide the necessary<br />

production capacity and<br />

hence together with Airbus and<br />

<strong>FACC</strong> not only invest in but also<br />

benefit from the success of the A350<br />

XWB. >>


16 6 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

Translating sleeves<br />

There is yet another global player in<br />

the aviation industry with which<br />

<strong>FACC</strong> has formed a close relationship.<br />

By awarding <strong>FACC</strong> as their<br />

partner for the development and<br />

production of the translating sleeve,<br />

Goodrich Aerostructures is strengthening<br />

its ties with <strong>FACC</strong> in the area<br />

of engine nacelles. Goodrich is a development<br />

and production partner of<br />

Airbus for the nacelles of the Trent<br />

XWB engine that is offered by Airbus<br />

to power the new long-range aircraft.<br />

Goodrich and <strong>FACC</strong> have been<br />

working closely together for more<br />

than 20 years. The contract stipulates<br />

that <strong>FACC</strong> will supply the translating<br />

sleeve including the blocker<br />

doors starting in April 2010. <strong>FACC</strong><br />

already produces similar components<br />

for the Boeing 787 aircraft. A<br />

team of <strong>FACC</strong> employees has been<br />

co-located at Goodrich in Chula<br />

Vista for months to gather expertise<br />

concerning the last component developments<br />

for the A350 XWB. Here<br />

as well, the continuous improvement<br />

process in the areas of materials,<br />

processes, design and component<br />

configuration all the way to production<br />

methods are being closely examined,<br />

with the goal in mind of<br />

contributing to the increase in efficiency<br />

of the aircraft. Facility 4,<br />

which was opened by <strong>FACC</strong> in May<br />

2007, had already been tailored to<br />

the construction of the A350 XWB<br />

components. Consequently, <strong>FACC</strong> is<br />

already well-equipped as a partner<br />

of Goodrich to efficiently cover<br />

everything needed for the A350<br />

XWB in the future.<br />

Engine composites<br />

Another industrial cooperation that<br />

has grown over the years is the one<br />

based on the contract to supply<br />

composite engine components for<br />

the Trent XWB. Together with Rolls-<br />

Royce, <strong>FACC</strong> will develop and produce<br />

a selection of composite components<br />

for the newest member of<br />

the engine family, similar to previous<br />

Airbus A350 XWB: Shaping efficiency<br />

The A350 XWB is shaping the future of operational efficiency – providing<br />

airlines with a family of new-generation aircraft that is best suited to the<br />

market’s requirements in terms of size, range, revenue generation, passenger<br />

comfort and the environment.<br />

Conceived from the outset to become a comprehensive airliner<br />

family, the A350 XWB will be available in three basic passenger versions,<br />

flying up to 350 passengers on a range of more than 15,750 km / 8,500<br />

nm. The A350 XWB was given its industrial launch in December 2006.<br />

The A350-900 is to enter the final assembly stage in the first half of 2011<br />

with first flight planned for spring 2012. In July 2013, the first planes are<br />

to be delivered to the customers. One year later the shortened version<br />

A350-800 will follow, and at the end of 2015 the long version A350-<br />

1000.<br />

As of June 2009, 31 customers have ordered 493 A350 WXB aircraft.<br />

Airbus A350 XWB Specifications<br />

Trent models. Among the products<br />

are sound attenuation features for<br />

the Fan Case – the Front and Rear<br />

Acoustic liners - as well as Splitter<br />

Fairings.<br />

<strong>FACC</strong> Expands Its Core<br />

Operations<br />

A350-800 A350-900 A350-1000<br />

Overall length 60.7 m/199 ft. 1 in. 67.0 m/219 ft. 11 in. 74.0 m/<strong>24</strong>2 ft. 10 in.<br />

Height 17.2 m/56 ft. 3 in. 17.1 m/56 ft. 2 in. 17,2 m/56 ft. 3 in.<br />

Wing span<br />

64.8 m/212 ft. 5 in.<br />

Fuselage width<br />

5.96 m/19 ft. 6 in.<br />

Passenger 270 314 350<br />

Engines RR Trent XWB RR Trent XWB RR Trent XWB<br />

(Thrust) (74,000 lb. slst) (83,000 lb. slst) (92,000 lb. slst)<br />

Max. <strong>take</strong>-off weight <strong>24</strong>8 t 268 t 298 t<br />

Range 15,400 km/ 15,000 km/ 14800 km/<br />

(w/max. passengers) 8,300 nm. 8,100 nm. 8,000 nm.<br />

Typical<br />

cruise speed<br />

0,85 Mach<br />

Mutual benefits are decisive for the<br />

long-term success of partnerships.<br />

Airbus, Rolls-Royce and Goodrich<br />

can all fall back on the expertise that<br />

<strong>FACC</strong> has amassed over the years<br />

as well as its excellent services,<br />

starting from the design, development<br />

and calculation all the way to<br />

the development and procurement<br />

of the optimal production tools, all<br />

the way to cost-effective production.<br />

Then again, participation in the A350<br />

XWB program offers <strong>FACC</strong> the opportunity<br />

to expand its core operations<br />

in the area of aircraft structures<br />

and to maximize value of the existing<br />

product portfolio, and accordingly<br />

reduce in-company costs and<br />

increase competitiveness. This results<br />

in a clear win-win situation for the<br />

partners involved, which is designed<br />

to be long-term and to assure lasting<br />

success and benefits for all.


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 7<br />

We will jointly enter important markets<br />

with our customers<br />

An interview with Robert Machtlinger, Vice President of<br />

the Structures Division of <strong>FACC</strong> AG, about the new<br />

dimensions of strategic partnerships, the upturn of 2012<br />

and how the Structures Division is defying the current<br />

economic crisis.<br />

<strong>take</strong> off: Please give our readers a<br />

short overview of the Structures Division.<br />

Machtlinger: The core competence<br />

of the Structures Division lies in the<br />

development, certification and production<br />

of lightweight structural<br />

components made of composite<br />

materials for aircraft manufacturers<br />

and their first tier suppliers. Among<br />

of the products are fuselage fairings,<br />

winglets and various fairing surfaces<br />

and flight control surfaces on wings<br />

such as flap track fairings and spoilers.<br />

Our strengths lie in being able to<br />

offer the customer innovative, custom-made<br />

complete systems in an<br />

assembly ready to install and<br />

thereby offer complete service from<br />

concept design to detail design, the<br />

design and production of tools, to<br />

the support of the supply chain and<br />

certification of the components.<br />

<strong>take</strong> off: In the A350 XWB program,<br />

Airbus is intensifying its industrial<br />

partnerships with the goal of dividing<br />

up more complex work packages<br />

among fewer and larger suppliers.<br />

<strong>FACC</strong> is on board as a first tier supplier.<br />

What is the involvement in the<br />

newest Airbus program turning out<br />

to be<br />

Machtlinger: On the one hand, our<br />

involvement in the Airbus A350 XWB<br />

program is based on our expertise<br />

gathered in the past and on existing<br />

partnerships. On the other hand, for<br />

us it represents a definite advance<br />

into new dimensions. Let me point<br />

out two basic factors. Number one,<br />

Airbus is pressing ahead with production<br />

outside of Europe in order to<br />

tap talent and resources worldwide,<br />

to <strong>take</strong> advantage of cheaper cost<br />

structures and also to accommodate<br />

its customers in up-and-coming<br />

growth markets. Secondly, <strong>FACC</strong> is<br />

a comparatively small company in<br />

the aviation industry. Just <strong>take</strong> a look<br />

at the market: it is dominated by<br />

large corporations with the necessary<br />

financial means to carry out the<br />

development of airplanes from the<br />

very beginning. Our advantage<br />

clearly lies in the fact that we are<br />

highly competent in the area of development<br />

and apply the most modern<br />

and efficient production technologies<br />

on the market, thus creating<br />

a competitive and sustainable<br />

cost base. And that is something our<br />

customers would not want to do<br />

without.<br />

<strong>take</strong> off: How can <strong>FACC</strong> protect its<br />

chances in this demanding phase<br />

Machtlinger: We have given thought<br />

to the most diverse directions and<br />

have come to the conclusion that we<br />

can ensure value-added growth only<br />

in cooperation with international<br />

partner companies. In recent years<br />

we have developed our Austrian locations<br />

into a top competency center<br />

for sophisticated composite<br />

technology. This is where we develop<br />

and produce advanced components<br />

and systems. This is where<br />

we profit from our highly qualified<br />

employees. However, in order to<br />

achieve the necessary size and<br />

weight for the needs of the market,<br />

“We have very strong expertise in development at our<br />

disposal and apply the most modern and efficient production<br />

technologies on the market. This way <strong>FACC</strong> creates a<br />

competitive and lasting cost base.”<br />

<strong>FACC</strong> must enter into international<br />

partnerships that can guarantee<br />

successful existence and further<br />

growth in the future. Only as a globally<br />

competitive company can we be<br />

in the position to secure jobs in Austria<br />

in the long run. Our customers<br />

have let us know in the course of<br />

many conversations that they want<br />

to build on the excellent services of<br />

<strong>FACC</strong>. But at the same time they<br />

also stress that <strong>FACC</strong> must reach a<br />

new dimension and in connection<br />

also achieve a solid financial base, in<br />

order to be able to co-finance development<br />

costs of new aircraft programs.<br />

We must therefore be consistent<br />

in proceeding on the path we<br />

have begun in the direction of a<br />

global aviation supplier.<br />

<strong>take</strong> off: Are there already precise<br />

plans to this kind of cooperation<br />

Machtlinger: The Structures Division<br />

of <strong>FACC</strong> has been working successfully<br />

for many years with international<br />

companies based in the<br />

USA, China, South Korea, Malaysia<br />

and other countries. Our partners are<br />

sub-suppliers of wing components<br />

for various Boeing airplanes, or of


16 8 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

The production of fuel-saving winglets: <strong>FACC</strong> focuses on its<br />

core activities and concentrates these in Centers of Excellence.<br />

One of these is the highly-modern production line for<br />

winglets in Facility 1 in Ried.<br />

components that do not lie within<br />

the competency of <strong>FACC</strong>, for example<br />

metal parts. To get back to the<br />

A350 XWB: We recently signed an<br />

agreement with Airbus that stipulates<br />

that starting 2015, <strong>FACC</strong> will<br />

have components for the A350 XWB<br />

built by a partner of their choice. We<br />

are taking a step even further with<br />

the investment company Mubadala.<br />

<strong>FACC</strong> is already consulting the company<br />

in the planning, construction<br />

and certification of a composite production<br />

facility in Abu Dhabi. A production<br />

line is to be constructed that<br />

is best tailored to the production of<br />

special wing parts.<br />

<strong>take</strong> off: But doesn’t that involve a<br />

great amount of management and<br />

coordination What are the advantages<br />

in such a partnership, especially<br />

with Mubadala<br />

Machtlinger: There are many advantages<br />

for <strong>FACC</strong>. The collaborations<br />

open potential for further development<br />

work, create additional<br />

capacities for upcoming future projects<br />

at a simultaneous reduction of<br />

production costs and through outsourcing<br />

to a USD market, lessen<br />

the currency risk. Just as important<br />

is the fact that by outsourcing laborintensive<br />

projects, we can free up<br />

production capacity in our domestic<br />

facilities for products with a higher<br />

value creation. How can we best<br />

achieve this By focusing on our<br />

core competencies in accordance<br />

with our long-term strategic direction<br />

and concentrate them into a<br />

kind of “center of excellence”. In<br />

Austria the core business will be the<br />

production of highly integrated<br />

structural parts such as winglets,<br />

flaps, engine and engine nacelle<br />

components as well as RTM parts<br />

and interiors. The development of<br />

such complex components, as well<br />

as the production of the pre-series<br />

parts including their certification, are<br />

among the main focuses. Together<br />

with Mubadala and with the support<br />

of Airbus, we are establishing a center<br />

of excellence for wing components<br />

in the United Arab Emirates<br />

which we will use as a kind of “extended<br />

workbench”. International<br />

partnerships such as these are also<br />

important for a different reason: With<br />

our customers, we want to jointly enter<br />

growing and strategically important<br />

markets.<br />

<strong>take</strong> off: The news is full of the financial<br />

and economic crisis. What<br />

does this crisis mean for <strong>FACC</strong> as<br />

aviation suppler<br />

Machtlinger: Worldwide the crisis is<br />

also affecting the aviation industry.<br />

Our customers feel impelled to<br />

freeze or reduce their production<br />

rates. I assume that in 2010 rates will<br />

be reduced for passenger planes<br />

even further. Still, there is no reason<br />

to panic, since <strong>FACC</strong> is comparatively<br />

well positioned. It is positive<br />

for us that we have a relatively high<br />

share of components on the A380<br />

and Boeing 787 whose delivery will<br />

increase and compensate for reductions<br />

in the existing programs in the<br />

next years. For <strong>FACC</strong> this means in<br />

detail that growth will be limited in<br />

the next two years. We won’t expect<br />

a massive increase in turnover until<br />

2012.<br />

<strong>take</strong> off: How are you protecting<br />

your division from the crisis<br />

Machtlinger: Crises offer the<br />

chance to improve things now in order<br />

to be ready for the next upturn. It<br />

is essential to see the economic<br />

downturn as an advanced balancing<br />

act. The center of attention must be<br />

consistent optimizing. The turnover<br />

stagnation should be used to improve<br />

of processes and company<br />

operations. We are working on<br />

pressing ahead with automation,<br />

shortening of operating cycles in<br />

production, and increasing output as<br />

well as efficiency, profitability and<br />

competitiveness.<br />

<strong>take</strong> off: According to a study by the<br />

internationally renowned Roland<br />

Berger Strategy Consultants, the use<br />

of composites in airplane construction<br />

will grow by about 15 % annually<br />

by 2020. Are these pleasing<br />

prospects for <strong>FACC</strong><br />

Machtlinger: That definitely is a reason<br />

to be optimistic. Innovative<br />

manufacturers of aerostructures<br />

from composite materials will have<br />

good chances also in the future, precisely<br />

in a difficult economic environment<br />

and can expand their position<br />

worldwide. However, the study<br />

you cited mentions as those who will<br />

most probably profit the large tier 1<br />

suppliers who are leading in cost-efficiency<br />

and technology and offer


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 9<br />

additional services which go beyond<br />

that of a simple manufacturer. And<br />

this is where things come full circle:<br />

Precisely in the light of this market<br />

situation, it becomes blatantly obvious<br />

how important strategic partnerships<br />

between customers and suppliers<br />

are. Global challenges are easier<br />

to deal with together. A joint<br />

course of action in an international<br />

network between companies<br />

strengthens the position of all those<br />

involved and thus also that of <strong>FACC</strong>.<br />

Especially for <strong>FACC</strong>, which is a small<br />

but – thanks to its strength in innovation<br />

– an important player in the<br />

aviation supplier field, it is important<br />

to strengthen further expand its position<br />

among the recognized, leading<br />

suppliers through partnerships.<br />

<strong>FACC</strong> forms partnership with Mubadala Development Company<br />

to establish manufacturing programs at Strata composite aerostructure manufacturing<br />

plant in Abu Dhabi<br />

At the end of 2008, <strong>FACC</strong> AG and<br />

tion, certification and start-up of the<br />

Middle East market. Beyond that it<br />

Mubadala Development Company,<br />

new facility and the training of em-<br />

ensures the competitiveness of<br />

the development and investment<br />

ployees. In the first phase of the co-<br />

<strong>FACC</strong> and facilitates the consistent<br />

company that is a catalyst for the<br />

operation, <strong>FACC</strong> will transfer the<br />

continuation of it successful interna-<br />

economic diversification of the emi-<br />

production of spoilers and flap track<br />

tional strategy. Furthermore, it opens<br />

rate of Abu Dhabi, United Arab Emi-<br />

fairings for Airbus A330/A340 and<br />

up comprehensive production capa-<br />

rates, formed an industrial partner-<br />

A380 aircraft models to the United<br />

city for <strong>FACC</strong> in a US dollar based<br />

ship and signed a supplier agree-<br />

Arab Emirates. The planned next<br />

economy and counteracts the strong<br />

ment. Under the agreement, <strong>FACC</strong><br />

phase will see further projects of Air-<br />

dependence on the dollar and the<br />

will support Strata in the construc-<br />

bus and potentially of other aircraft<br />

adverse rate of the dollar.<br />

tion of their composite plant in Al Ain<br />

manufacturers.<br />

The development of a thriving in-<br />

and will transfer composite aero-<br />

By shifting the production of<br />

ternational aerospace hub in Abu<br />

structures manufacturing programs<br />

these products, <strong>FACC</strong> AG will free<br />

Dhabi, with a focus on knowledge-<br />

to the new plant.<br />

up capacity in the Austrian facilities<br />

transfer, technology and innovation,<br />

Construction of the plant com-<br />

that are needed to support future<br />

is a key element of the Abu Dhabi<br />

menced in June 29th 2009, with the<br />

business development and further<br />

Economic Vision 2030. Mubadala is<br />

manufacturing of advanced compo-<br />

growth.<br />

bringing together existing aerospace<br />

site aerostructures beginning in Q4<br />

The cooperation with Mubadala<br />

assets and forming industrial part-<br />

Currently under con-<br />

2010. Subsequent phases of expan-<br />

represents an important step for<br />

nerships to build a high technology<br />

struction: A modern<br />

sion are planned to provide a total<br />

<strong>FACC</strong> on its path towards being a<br />

knowledge intensive aerospace in-<br />

composite production<br />

facility in excess of 60,000 m² over<br />

global company and makes allo-<br />

dustry for Abu Dhabi. Further infor-<br />

facility for Strata Manu-<br />

the next few years.<br />

wance for the demands of airplane<br />

mation on Mubadala can be found<br />

facturing in Abu Dhabi.<br />

<strong>FACC</strong> will offer comprehensive<br />

manufacturers to carry out produc-<br />

under<br />

In the fourth quarter of<br />

technical support in the construc-<br />

tion on-site in the fast-growing<br />

www.mubadala.ae.<br />

2010, production will<br />

begin there for wing<br />

components.


16 10 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

Customer Portrait:<br />

The Goodrich Corporation<br />

If there’s an aircraft in the sky – we’re on it. A motto with a clear message: All of<br />

the world’s important aircraft manufacturers count on the services of the Goodrich<br />

Corporation. With their wide product range and farsighted acquisition policy, the<br />

American supplier has captured a leading market position in the aviation industry.<br />

>> The success story of the American<br />

corporation began in 1870,<br />

when Dr. Benjamin Franklin Goodrich<br />

founded Goodrich, Tew & Co.<br />

in Akron, Ohio as a factory for tires<br />

and rubber products. The company<br />

already entered the aviation business<br />

during the “Pioneer Era” of<br />

flight. In 1903, the Wright brothers<br />

made history with their historic first<br />

flight. Only six years later the American<br />

Glenn Curtis set a new speed<br />

record of 47 miles per hour to win<br />

the international flying race in Reims,<br />

France. The tires for his airplane<br />

were made by Goodrich.<br />

The company also supplied the electrical<br />

equipment and carburetors for<br />

the Vickers Vimy bomber, later to be<br />

used as a passenger plane, for the<br />

first flight from London to Australia,<br />

as well as for Charles Lindbergh’s<br />

first solo flight across the Atlantic<br />

from New York to Paris. Due to this<br />

early involvement in flight, industry<br />

experts refer to the American company<br />

as the “Mother of All Aviation<br />

Suppliers”, and rightfully so.<br />

Present All Around the<br />

Globe<br />

The present Goodrich Company is<br />

dramatically different from the company<br />

at the time of its establishment<br />

140 years ago. Whereas the company<br />

at that time was a highly reputable<br />

manufacturer of rubber products,<br />

today it is one of the big players<br />

in the aviation and defense markets<br />

– and is no longer in the tire<br />

business. In the last 20 years, Goodrich<br />

has made more than 40 company<br />

acquisitions and thus significantly<br />

strengthened its market position.<br />

The product range of the American<br />

supplier, headquartered in<br />

Charlotte, North Carolina, is presently<br />

one of the widest in the aviation<br />

industry. In order to focus more<br />

on aviation, Goodrich pulled out of<br />

the sector of specialized chemicals<br />

in 2001. Currently the company employees<br />

a workforce of 25,000 and<br />

has over 80 facilities in 16 countries<br />

worldwide. In 2008, the company -<br />

with the three central business fields<br />

of engine nacelles and interior systems;<br />

actuation and landing systems;<br />

and electronic systems - had<br />

sales of 7.1 million USD. The application<br />

areas of the products and systems<br />

are wide and range from large<br />

civil passenger planes, regional and<br />

business planes and helicopters to<br />

applications for defense and space.<br />

Success Through Lean<br />

Operating Principles<br />

Goodrich is undoubtedly one of the<br />

aviation companies that benefits<br />

from a strategy that includes passing<br />

large parts of the development and<br />

production of an aircraft on to suppliers.<br />

In this way, Goodrich is involved<br />

in the construction of the Airbus<br />

A380 and Boeing 787 Dreamliner as<br />

well as in the latest Airbus development<br />

program A350 XWB.<br />

Crucial for the success of the company<br />

is its constant efforts to provide<br />

systems, products and services that


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 11<br />

increase the efficiency of an aircraft<br />

while reducing ecological influences,<br />

maintenance and costs. However,<br />

what has greatly contributed to the<br />

increase of competitiveness of Goodrich<br />

has definitely been - and still<br />

is- that it has led the way in implementing<br />

lean operating principles in<br />

production and product development.<br />

Just <strong>take</strong> its approach to the<br />

nacelle program for the Boeing 787<br />

Dreamliner. As early as 1994, based<br />

on the principles of the Toyota Production<br />

System, Goodrich adopted<br />

an evolving lean culture originating<br />

with a lean manufacturing approach<br />

in the factory. Today this approach<br />

has grown to encompass lean product<br />

development and has become<br />

a game changer in the way Goodrich<br />

designs and manufactures products.<br />

Besides, Lean Product Development<br />

(LPD) techniques utilized with the<br />

787 nacelle program will contribute<br />

to improved product quality while<br />

helping to reduce costs and cycle<br />

time.<br />

Goodrich and <strong>FACC</strong>:<br />

A Strong Team<br />

Goodrich gets support from <strong>FACC</strong> in<br />

the implementation of cost efficient,<br />

innovative concepts made of composites.<br />

The two companies can<br />

look back on a long and successful<br />

collaboration, with the first joint projects<br />

go back to 1987. Ever since,<br />

the cooperation has constantly<br />

grown. <strong>FACC</strong> is responsible for the<br />

development and production of the<br />

translating sleeves of the Boeing 787<br />

Dreamliner and recently received an<br />

order to supply this complex system<br />

for the A350 XWB. As a link in the<br />

value-added chain for the Goodrich<br />

nacelle programs, <strong>FACC</strong> is significantly<br />

involved in the design, development<br />

and production of highly<br />

competitive products and advanced<br />

technologies in the area of aerodynamic<br />

engine nacelles. >><br />

Advanced production: Goodrich uses Automated Fiber Placement machine<br />

in the manufacture of the inner fixed structure for the 787 thrust reverser.


16 12 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

“<strong>take</strong> off” has asked the decision makers at Goodrich and <strong>FACC</strong> just what it is about the cooperation of<br />

the two companies that they appreciate:<br />

“Our goals are to align ourselves with companies that share our passion for outstanding customer<br />

service and support. Our relationship with <strong>FACC</strong> has always been one that is built on<br />

mutual trust and customer satisfaction.”<br />

Ken Wood | Vice President & General Manager | Commercial Programs | Goodrich Aerostructures<br />

“We view <strong>FACC</strong> as a vital part of our extended enterprise and enjoy a good relationship with its<br />

leadership and teams. Both the 787 contract we awarded <strong>FACC</strong> in 2005 and the recent signing<br />

of the Memo of Agreement for the A350 XWB represent significant business opportunities<br />

for both our companies. We are proud of our long-term relationship and have full confidence in<br />

<strong>FACC</strong>’s ability to exceed both Goodrich and our customers’ expectations over the ensuing<br />

years.”<br />

Tim Martin | Director | Material and Supply Chain | Goodrich Aerostructures<br />

“<strong>FACC</strong>’s program teams’ continued engagement with Lean has facilitated our communications<br />

and enabled us to identify and resolve day-to-day challenges in a timely manner. We look forward<br />

to continuing the excellent relationship and being able to mutually benefit from <strong>FACC</strong>’s<br />

specialized composites experience to exceed the expectations of our customers on Goodrich<br />

Aerostructures’ many nacelle programs.”<br />

Michael Page | SCM Program Manager – <strong>FACC</strong> Projects | Goodrich Aerostructures<br />

“Twenty years ago Goodrich put its confidence in <strong>FACC</strong> and as one of its main customers laid<br />

the foundation for the <strong>FACC</strong> that we know today with the commissioning of the production of<br />

small composite components. Over the years, the synergies between Goodrich and <strong>FACC</strong> could<br />

be capitalized on anew again and again as Gooodrich's expertise was combined with <strong>FACC</strong>'s<br />

technological solutions. The goal of continuously improving all processes in the company is<br />

being pursued independently by both partners, which provides an optimal environment for cooperation.”<br />

Walter A. Stephan | CEO | <strong>FACC</strong> AG<br />

“With their excellent market position for the development, production and integration of nacelle<br />

systems for commercial aviation, Goodrich is one of the most important strategic partners of<br />

<strong>FACC</strong>. The new organizational structure of <strong>FACC</strong>, especially with the creation of the new Profit<br />

Center Engines & Nacelles, is geared to the further intensification of the long-standing collaboration.”<br />

Robert Braunsberger | Vice President Engines & Nacelles | <strong>FACC</strong> AG


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 13<br />

Award for outstanding performance: Luo Ronghuai, President of ACAC,<br />

(4th from r.) and Tao Zhihui, Director of International Cooperation of<br />

COMAC (at the podium) at the presentation of the Silver Medal Award to<br />

Gerhard Mörtenhuber, Vice President Interiors, <strong>FACC</strong> (2nd from r.).<br />

ACAC Awards <strong>FACC</strong><br />

for Top Performance<br />

Important program<br />

milestone reached<br />

In May 2009, <strong>FACC</strong> successfully completed the installation fit<br />

check of the first passenger cabin of an ARJ21.The interior for<br />

the Chinese regional jet excels by its modern design. Its roominess<br />

and excellent acoustics offer passengers maximum<br />

comfort. One focus of the development work done by <strong>FACC</strong><br />

was on optimising cost and efficiency in the production of the<br />

various components.<br />

>> The Chinese airplane manufacturer<br />

AVIC Commercial Aircraft Co.,<br />

Ltd. (ACAC) has awarded <strong>FACC</strong> AG<br />

the Silver Medal Supplier Award for<br />

the development and manufacturing<br />

of the ARJ21 passenger cabin. With<br />

this award ACAC recognizes the excellent<br />

performance of its supplier<br />

partner in the development of the<br />

new Chinese regional airplane that<br />

successfully completed its first flight<br />

in November 2008.<br />

“This award is a recognition of our extraordinary<br />

commitment to our partnership<br />

with ACAC,” said Gerhard<br />

Mörtenhuber, Vice President Interiors<br />

of <strong>FACC</strong> when he accepted the<br />

award in Shanghai. “We are very<br />

pleased about this honor, which is at<br />

the same time an incentive not to become<br />

slack in our efforts and to continue<br />

to satisfy our customers with<br />

top performance. And we are proud<br />

of the dedication of our employees<br />

who developed and produced a<br />

pleasant, comfortable interior of excellent<br />

quality,” Mörtenhuber added.<br />

ACAC awarded the Silver Medal Supplier<br />

Award on the occasion of the<br />

first flight of the ARJ21. „During the<br />

past years, all the partners of the<br />

ARJ21 program had been working<br />

very hard together with ACAC, overcoming<br />

difficulties one after another<br />

in the development of the ARJ21-700<br />

aircraft“, said Luo Ronghuai, President<br />

of ACAC. “It is our mutual<br />

understanding and joint efforts made<br />

in the design and development,<br />

testing, manufacturing and delivery of<br />

all major airborne systems/equipments,<br />

which lead to the successful<br />

achievement of the first flight milestone.”<br />


16 14 TAKEOFF <strong>take</strong>off<br />

F A C C C U S T O M E R M A G A Z I N E<br />

Excellent Supplier<br />

Award:<br />

The Best Are Rewarded For Their Efforts<br />

<strong>FACC</strong> has awarded top suppliers for their excellent dedication and outstanding<br />

services with the Excellent Supplier Award in gold, silver and bronze, as<br />

well as with a Special Performance Award.<br />

EXCELLENT SUPPLIER<br />

AWARD IN GOLD:<br />

EXCELLENT SUPPLIER<br />

AWARD IN SILVER:<br />

EXCELLENT SUPPLIER<br />

AWARD IN BRONZE:<br />

SPECIAL PERFORMANCE<br />

AWARD:<br />

RORA<br />

WESCO AIRCRAFT<br />

EUROPE<br />

SACS<br />

KELLNER & KUNZ<br />

Location:<br />

Location:<br />

Location:<br />

Location:<br />

Schörfling am Attersee, Austria<br />

Park Mill Way, Clayton West, UK<br />

Rottweil, Germany<br />

Wels, Austria<br />

Core business:<br />

Core business:<br />

Core business:<br />

Core business:<br />

Production of precision moulded<br />

Wesco Aircraft is a stockist and<br />

Manufacture of mounting ele-<br />

Kellner & Kunz is a wholesale<br />

parts and gaskets made out of<br />

logistic service provider for aero-<br />

ments and connection elements<br />

company offering products in the<br />

elastomers and thermoplastics,<br />

space fasteners and standard<br />

as well as hardware and equip-<br />

fields of fastening technology,<br />

precision metal parts and assem-<br />

hardware.<br />

ment for aircraft interiors.<br />

screws and bolts, tools and aux-<br />

blies.<br />

iliary materials.<br />

The <strong>FACC</strong> Excellent Supplier Award 2008 in gold goes to RORA,<br />

Austria: fltr. J. Fellinger (Managing Director, RORA), R. Leitner<br />

(Purchasing, <strong>FACC</strong>), A. Lautner (Management Assistent,<br />

RORA), D. Demetris (Quality Assurance, <strong>FACC</strong>), J. Schneeweiss<br />

(General Manager, RORA) and R. Weber (Managing Director,<br />

RORA Germany)<br />

>> With this annual Excellent Supplier<br />

Award, <strong>FACC</strong> AG recognizes its<br />

best supplier partners. The rising demands<br />

in the aviation industry as<br />

well as the development of prices on<br />

the international raw materials and<br />

energy markets present huge challenges<br />

for companies and their suppliers.<br />

The goal is that the company<br />

and an excellent supplier base both<br />

grow profitably. “The Excellent Supplier<br />

Award is both recognition and<br />

an incentive. Each of the four distinguished<br />

companies has met our<br />

standards excellently,” said Rudolf<br />

Leitner, the person responsible for<br />

purchasing world-wide for <strong>FACC</strong>. “In<br />

view of current difficult economic<br />

conditions, the challenges we face<br />

are unprecedented and the demands<br />

that <strong>FACC</strong> puts on its suppliers<br />

are accordingly high. These include,<br />

among others, zero-defect<br />

quality, strict adherence to schedules,<br />

commercial performance, competitiveness,<br />

flexibility and a preparedness<br />

to <strong>take</strong> cost-cutting and<br />

process optimizing measures. “This<br />

must all lead to a higher competitiveness<br />

and optimized cost structures<br />

for us,” said Leitner.<br />

The suppliers awarded for 2008<br />

were chosen from a worldwide<br />

pool of about 300 suppliers. The<br />

procurement turnover of <strong>FACC</strong> came<br />

to around 160 million euros for<br />

2008.


F A C C C U S T O M E R M A G A Z I N E<br />

<strong>take</strong>off 15<br />

Linz09:<br />

A City Is Alive With Art and Culture<br />

Long gone are the days when Linz was known only for its heavy industry and dirty<br />

smokestacks. This city on the Danube has since developed into a genuine pearl.<br />

The capital of Upper Austria is the 2009 European Culture Capital and wins points<br />

for its top venues and contemporary themes.<br />

>> Long before being chosen as the<br />

European Culture Capital, Linz’s politics<br />

focused on art and culture, in<br />

order to shake off its image as an industrial<br />

city. This is when important<br />

venues such as the Brucknerhaus<br />

Concert Hall, Ars Electronica Center<br />

and Lentos Art Museum came into<br />

being – places that are well known<br />

well beyond Austria’s borders and<br />

are among the event venues for the<br />

year of the Culture Capital City. The<br />

organizers of Linz09 see the event as<br />

a process and engine for further city<br />

development. Thus there is a lot of<br />

building and renovating going on, for<br />

example on Schlossberg, the hill that<br />

crowns the old part of the city and<br />

offers a wonderful view of the lazily<br />

flowing Danube.<br />

3,500 events during the year. 300<br />

artists from more than 40 countries<br />

are participating. The events range<br />

from exhibits and theatre offerings to<br />

concerts, festivals and sporting<br />

events. In addition, there are the cultural<br />

highlights that already exist,<br />

such as the Brucknerfest, the Klangwolke,<br />

the Ars Electronica Festival,<br />

the Festival of the Regions and the<br />

Crossing Europe Film Festival.<br />

Many projects allow Linz09 to tell<br />

various stories about the Upper Austrian<br />

capital city. Past, present and<br />

future are reflected in various ways.<br />

In addition, Europe and the world<br />

form two further poles in the<br />

program to show the openness of<br />

the city.<br />

position as the European Capital<br />

City. Linz09 is an invitation to city<br />

residents and visitors to get to know<br />

the city and immerse themselves in a<br />

diversity of culture, to get an idea of<br />

its architectural ambience and learn<br />

about the history of the city, as well<br />

as to <strong>take</strong> advantage of the central<br />

location of the provincial capital city<br />

to explore the interesting region of<br />

Upper Austria and let the region’s<br />

beautiful landscape leave its imprint.<br />

If the organizers of Linz09 have<br />

their way, the various culture projects<br />

of the steel city, the electronic city,<br />

will also continue to be one of the<br />

most interesting cities of Austria.


20 Years of <strong>FACC</strong>:<br />

From a supplier of small components to an internationally renowned systems partner in the aerospace industry.<br />

<strong>FACC</strong> AG<br />

A-4910 Ried/Austria, Fischerstraße 9<br />

Tel. +43 / 59 / 616-0, Fax +43/59 / 616 - 81000<br />

e-mail: office@facc.at, www.facc.co.at


20 YEARS OF <strong>FACC</strong> | 20 YEARS OF DYNAMICS<br />

On October 16, 1989, <strong>FACC</strong> was established as an independent company. This year Austria’s leading aviation<br />

supplier is celebrating its 20-year anniversary.<br />

In the international aviation supplier industry<br />

<strong>FACC</strong> is known as a hallmark for technologically<br />

sophisticated lightweight solutions<br />

for airplanes and helicopters – and the<br />

name stands for progress and dynamics.<br />

While at the beginning of the 1980’s the<br />

company, still a division of Fischer Ski, supplied<br />

its first small components, it is now<br />

among the leading aviation suppliers, designing,<br />

developing and producing complete<br />

composite assemblies for the giants<br />

in the field. Its high-tech products are<br />

backed up by twenty years of research, innovation,<br />

precision and passion.<br />

In these two decades air traffic increased<br />

immensely. <strong>FACC</strong> profited from a<br />

technology trend that saw increased use of<br />

fiber composite materials in aircraft construction,<br />

but at the same time found itself<br />

confronted with the most various challenges:<br />

the usual cyclical fluctuations of the<br />

industry, a sharp downturn after September<br />

11, SARS, high fuel prices and the current<br />

financial and economic crisis. As globalization<br />

became the buzzword, the effects<br />

of a more and more demanding international<br />

market had to be met. The fact that<br />

the company, in the course of its history,<br />

could successfully master these volatile<br />

times has to do with the symbiosis of intelligence,<br />

enthusiasm and flexibility shown by<br />

management and employees, and also with<br />

the confidence that its customers and owners<br />

had in the young company.<br />

How it all began …<br />

A good 20 years ago, some pioneers at Fischer,<br />

among them the current chairman of<br />

the board Walter Stephan, had a vision<br />

along with the courage to implement it. The<br />

vision was to <strong>take</strong> the fiber composite construction<br />

used in the production of skis and<br />

apply it to aircraft construction. At the time,<br />

Fischer had approached its development<br />

team with the challenge that a cross-country<br />

ski should not weigh more than 1,000<br />

grams, but still had to be unbreakable. The<br />

solution was found in fusing high-strength<br />

glass fiber to an extremely light composite<br />

material - the ideal combination for the<br />

modern construction of airplanes! In 1981<br />

Fischer got its first contract for the development<br />

of CFK struts for the A300-600 and<br />

A310. But the goal was set too high: The<br />

3-man team, whose main task had actually<br />

been the developing of sporting goods, was<br />

tiny in relation to the international concern,<br />

and was not able to meet the expectations<br />

of the aircraft engineers at Airbus.<br />

Milestones of the Company History<br />

1981: The R&D department of Fischer<br />

GmbH, looking for a new application for<br />

the fiber composite expertise that the<br />

company gathered in the manufacture of<br />

skis, gets its first order from an aircraft<br />

manufacturer for the development of<br />

struts for the Airbus A300-600 and A310.<br />

1986: The ski manufacturer spins <strong>FACC</strong> off as<br />

a separate division. The name <strong>FACC</strong> appears<br />

for the first time. 27 employees, a turnover of<br />

1.2 million euros.<br />

1986: First order from<br />

Rohr Inc. for the<br />

production of MD80<br />

Door Frames<br />

1987: Construction of first<br />

<strong>FACC</strong> production facility<br />

in Ried i. I., Upper Austria.<br />

1981<br />

1984<br />

1985<br />

1986<br />

1987<br />

1984: Startup of the first<br />

autoclave.<br />

1985: The first airplane components<br />

go into series production –<br />

fuselage service doors of the<br />

McDonnell Douglas MD80<br />

1987: Major order from<br />

McDonnell Douglas for<br />

MD11 flap track fairings<br />

and sidewall panels


1987<br />

Known for his Penchant for<br />

Innovation<br />

Josef Fischer<br />

Shareholder of the Fischer<br />

group and sponsor of <strong>FACC</strong>,<br />

in 1987 at the signing of the<br />

first contract with Boeing<br />

With his pioneer spirit and his openness to new<br />

technologies, “Pepi” Fischer was a vital presence<br />

in the origins and success of <strong>FACC</strong>. At an early<br />

stage he recognized the possible synergies between<br />

ski and airplane construction.<br />

At the signing of the first contract with Boeing<br />

he commented: “Already in 1975 I was invited by<br />

the president of Boeing, Mr. Luplow, to visit the<br />

Boeing facilities in Seattle. On the one hand I was<br />

very impressed by the scale of operations, and on<br />

the other hand I drew the conclusion that the<br />

composite technology used by Fischer in ski production<br />

could also be very interesting for airplane<br />

construction. After all, both areas deal with developing<br />

and applying the strongest and lightest<br />

possible materials that need to be exposed to dynamic<br />

long-term stress. At that time, when the<br />

Boeing 747 went into series production, I turned<br />

up with my idea 15 years too early.”<br />

The Takeoff Phase:<br />

From Small Components to<br />

Complete Solutions<br />

The ambitious team did not give up<br />

easily and landed another order: Fischer<br />

was to develop and produce maintenance<br />

doors for the MD80 series. This time the<br />

results were impressive and McDonnell<br />

Douglas became a customer. The first aircraft<br />

components entered series production<br />

in Ried in 1985. A year later an order<br />

for the manufacture of MD80 Door Frames<br />

came from Rohr Inc., the American company<br />

known today as Goodrich Aerostructures<br />

and one of the most important partners<br />

of <strong>FACC</strong>.<br />

After that, nothing stood in the way of<br />

spinning off the team of airplane enthusiasts<br />

to form their own division. The result<br />

of this restructuring was the launching of<br />

<strong>FACC</strong> in 1986.<br />

In 1987, the American airplane manufacturer<br />

McDonnell Douglas awarded a<br />

contract to <strong>FACC</strong> for over 100m USD. This<br />

was without a doubt a huge leap of faith in<br />

a company that employed several dozen<br />

workers and realized a turnover of about<br />

3m USD. The order was for the development<br />

and production of flap track fairings<br />

and sidewall panels for MD11 passenger<br />

cabins – products that are among the core<br />

competencies of the company and are still<br />

being produced for various types of<br />

planes. In the same year the foundation<br />

was laid for collaboration with a further important<br />

customer. Boeing ordered APU access<br />

doors for the Boeing 757 and bulkhead<br />

panels for the Boeing 737, one of the<br />

most popular passenger planes. The first<br />

production facility built expressly for the<br />

production of airplane components was<br />

erected, and further orders from Saab,<br />

Fokker and DeHavilland followed.<br />

The next milestone was on October 16,<br />

1989, when Fischer Advanced Composite<br />

Components GmbH, or <strong>FACC</strong> for short,<br />

was established as an independent subsidiary<br />

of Fischer. <strong>FACC</strong> was able to position<br />

itself among its competitors by making<br />

high-quality products, optimizing production<br />

processes and gathering its own aviation<br />

expertise. The first production order<br />

came from Airbus for overhead bins and<br />

1987: First order from<br />

de Havilland for floor panels<br />

for the Dash 8<br />

1989: <strong>FACC</strong> is spun off from the<br />

Fischer concern and Fischer<br />

Advanced Composite Components,<br />

GmbH is formed. 102 employees,<br />

a turnover of 6 million euros.<br />

1991: Österreichischen Salinen AG<br />

acquires 50 % of <strong>FACC</strong><br />

1997: Opening of new<br />

facilities as well as an<br />

office building at company<br />

headquarters in Ried i. I.<br />

1987<br />

1989 1991 1996 1997<br />

1987: First Boeing order for<br />

the development and production<br />

of maintenance doors for the<br />

Boeing 757 and bulkhead panels<br />

for the 737<br />

1989: First order from Airbus for<br />

the production of overhead bins<br />

and ceiling panels for the A320<br />

1996: Order for the development<br />

and production of the<br />

MD95 passenger cabin


1999<br />

ceiling panels for the popular A320 aircraft<br />

family.<br />

In 1991, Österreichischen Salinen AG, a<br />

group of companies whose main business<br />

is salt mining and production, bought<br />

s<strong>take</strong> in <strong>FACC</strong>. The investment served as<br />

an engine to promote further growth of the<br />

company and to implement a far-reaching<br />

investment program in buildings and facilities.<br />

This enabled the company to <strong>take</strong> up<br />

structural components in its production<br />

program. By producing the main landing<br />

gear doors for the A320 and the engine<br />

nozzles for the A340, the company proved<br />

itself as a system supplier of complete<br />

systems and assemblies.<br />

In 1996, <strong>FACC</strong> got the order for development<br />

and production of the complete<br />

passenger cabin of the MD95 - the current<br />

Boeing 717 - and thus the company completed<br />

its transition from being a manufacturer<br />

of small components to an important<br />

partner for the development and production<br />

of advanced major components and<br />

entire system solutions for the high-tech<br />

aviation industry.<br />

A Steep Climb:<br />

New Orders, New Facilities,<br />

New Logo<br />

In the following years an average 25 %<br />

annual increase in turnover was evidence<br />

of the success of the emerging aviation<br />

supplier and this required a massive expansion<br />

of production capacity. In 1997,<br />

<strong>FACC</strong> completed the comprehensive expansion<br />

measures in Facility 1 and the<br />

construction of a new office building as<br />

company headquarters, both in Ried. New<br />

major projects from new customers and a<br />

large order backlog once again pushed capacity<br />

to the limits. Therefore in 1999, a<br />

second facility was planned in Ort im<br />

Innkreis, ten kilometers from company<br />

headquarters with the goal of creating a<br />

competency and profit center for interior<br />

components.<br />

In the same year the company became<br />

a joint-stock company and the present<br />

logo was introduced as an important contribution<br />

towards company identity.<br />

The <strong>FACC</strong> Logo:<br />

Catchy, Distinctive, Clear<br />

In 1999, <strong>FACC</strong> AG set to work to find a new company<br />

logo that could express the independence<br />

that the company had already practiced for years.<br />

The company decided on a distinctive and simple<br />

logo consisting of two main components that express<br />

competence and dynamics:<br />

The dark grey square<br />

serves as a base and stands for stability, quality<br />

and competence. In every area of its business,<br />

<strong>FACC</strong> can rely on a rock solid base that is backed<br />

by the owners, boosted by the vision of management<br />

and ensured by the employees and their<br />

years of expertise.<br />

The grey-blue triangle<br />

that is pointing upwards stands for upgrowth, dynamics<br />

and success. Its company philosophy anchors<br />

<strong>FACC</strong> in a constant pursuit of progress and<br />

innovation, and sees in these concepts the guarantee<br />

for success and further growth.<br />

Up until 1999:<br />

1999: <strong>FACC</strong> is converted<br />

into a joint-stock company.<br />

The company gets a new logo.<br />

370 employees, a turnover<br />

of 59 million euros<br />

2000: Rolls Royce names<br />

<strong>FACC</strong> as supply chain<br />

manager of composite<br />

engine components<br />

2002: The first<br />

winglets are produced<br />

for Aviation<br />

Partners Boeing<br />

2003: Boeing<br />

choses <strong>FACC</strong> as<br />

development and<br />

production partner<br />

for the Boeing<br />

787 program<br />

1999 2000 2001 2002<br />

2003<br />

1999: Groundbreaking for<br />

Facility 2, a new production<br />

facility for interiors in Ort im<br />

Innkreis, Upper Austria<br />

2000: Facility 2 Interiors is<br />

opened in Ort im Innkreis,<br />

Upper Austria<br />

2001: <strong>FACC</strong> starts an<br />

apprenticeship program.<br />

2002: <strong>FACC</strong> becomes<br />

tier 1 supplier for the<br />

Airbus A380 program


In 2000, the engine manufacturer Rolls-<br />

Royce chose <strong>FACC</strong> as supply chain manager<br />

for all composite components of its<br />

engines for passenger planes. The partnership<br />

made it possible for <strong>FACC</strong> to further<br />

expand its activities in the development<br />

and production of engine components,<br />

and by using advanced composite<br />

technology the company played a significant<br />

part in making new engines efficient<br />

and environmentally sound.<br />

New Horizons:<br />

Success with Technological<br />

Innovation<br />

The beginning of the 21st century also<br />

marks the launch of new, revolutionary airplane<br />

programs that are aimed at making<br />

air traffic cleaner, quieter, more efficient<br />

and safer. The use of fiber composite materials<br />

begins to triumph. Whereas at the<br />

time of its first flight in 1979 1.5 % of the<br />

total weight of an MD80 consisted of composites,<br />

the percentage of today’s A380 is<br />

22 %, of a Boeing 787 50 % and of the<br />

newest passenger plane, the A350 XWB,<br />

53 %. <strong>FACC</strong> is speeding up its investments<br />

in R&D to be able to keep up with<br />

this trend and is setting new standards<br />

with innovations and technologies. Just<br />

one of many examples is the development<br />

of a new spoiler with integrated composite<br />

fittings for the A330/A340 family, which is<br />

30% lighter than the previous models, and<br />

will be put to use in the new A350 XWB.<br />

And so it is not a mere coincidence that in<br />

2002, <strong>FACC</strong> is chosen by Airbus as a tier 1<br />

supplier for their wide body jet. A year later<br />

Boeing names <strong>FACC</strong> a member of the international<br />

development team for the new<br />

long-range plane Boeing 787. The Brazilian<br />

company Embraer and the Chinese<br />

company ACAC become customers for<br />

the production of interiors, and <strong>FACC</strong> produces<br />

fuel-saving winglets for Aviation<br />

Partners Boeing. Additional production capacity<br />

has to be created, and so Facility 3<br />

starts up in Ort im Innkreis in 2005, in 2007<br />

<strong>FACC</strong> starts producing nacelle components<br />

at Facility 4 in Reichersberg. New<br />

production techniques and processes<br />

such as laser projection, automated fiber<br />

placement, RTM, composite tooling, etc.<br />

are implemented, which increase automation<br />

and productivity and make <strong>FACC</strong>, in<br />

addition to being a development specialist,<br />

a highly modern, world-class production<br />

partner.<br />

Looking Into the Future<br />

“Dynamic development has been the engine of<br />

success at <strong>FACC</strong> from the very beginning –<br />

whether through trend-setting achievements in<br />

research, through a constant optimizing of production<br />

techniques or through our fast reaction to<br />

market changes. In the course of the decades<br />

<strong>FACC</strong> has pressed ahead with the improvement<br />

of lightweight solutions for the aviation industry.<br />

In the 20 years of our company’s existence, our<br />

goals have to the largest extent always been met.<br />

That still goes for today. Due to economically difficult<br />

conditions, the path that lies before us is<br />

paved with great challenges. However, I am convinced<br />

that our company will master these difficult<br />

times as well. We <strong>take</strong> action by approaching<br />

the expansion of our business with courage,<br />

determination and the strength of innovation - to<br />

the benefit of our customers and owners. And<br />

also to the benefit of our employees to whom I am<br />

truly grateful, since it is their untiring and high degree<br />

of commitment that has made this a firstclass<br />

company. And it is this motivation that<br />

makes me positive that <strong>FACC</strong> will also successfully<br />

meet the challenges of tomorrow.“<br />

WALTER STEPHAN,<br />

Chairman of the Board and CEO<br />

<strong>FACC</strong> AG<br />

2004: ACAC gives <strong>FACC</strong> the<br />

contract for the development<br />

and production of the complete<br />

passenger cabin for the ARJ21<br />

2007: Facility 4 Naclles is<br />

opened in Reichersberg,<br />

Austria<br />

2008: The shares owned by the ski manufacturer<br />

Fischer are <strong>take</strong>n over by ACC Kooperationen and<br />

Beteiligungen GmbH. The owners of <strong>FACC</strong> AG are<br />

Österreichischen Salinen AG (48.125%), ACC Kooperationen<br />

und Beteiligungen GmbH (48.125%)<br />

and Stephan GmbH (3.75%).<br />

2009:<br />

<strong>FACC</strong> is 20 years old.<br />

1,580 employees,<br />

264 million euros turnover.<br />

2004 2005<br />

2007 2008 2009<br />

2005: Facility 3 Structures<br />

is opened in Reichersberg,<br />

Austria<br />

2007: First order from<br />

Embraer for interior components<br />

for the Phenom<br />

100 and Phenom 300<br />

2009: <strong>FACC</strong> becomes<br />

tier 1 supplier for<br />

the Airbus A350 XWB<br />

program

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