2016 Tiers Ones - Sub-Tier Suppliers - MROs - Education Ones - Sub-Tier Tiers MEXICO Aerospace - Clusters - Original Equipment Manufacturers Aerospace

MEXICO AEROSPACE 2016 Dear Reader,

The dynamics of growth and development of the Mexican Aerospace Industry, has placed our country on track to become an international leader of this industry. Mexico has forged its advantages building the future to establish itself as a center for advanced manufacturing, engineering, design and development of strategic value added for the Global Aerospace Industry.

From a national perspective this sector is considered strategic for its growth potential, its contribution to technological development, competitiveness and its high sophistication in their exports, that reached 6,686 million dollars in 2015, a 5% increase from the previous year. The growth of the Mexican Aerospace Industry has been unprecedented, especially during the last twelve years that have seen a compounded annual growth rate of nearly 20% in exports, climbing from around 60 companies to more than 300 companies and support entities that currently make up this sector, and AS9100 certified employing over 45,000 high-level professionals.

ProMéxico as part of the next stage of development of the aerospace and defense industry in Mexico, defined the need to establish regional strategies to identify and drive the development of productive advantages for the aerospace clusters in the country.

These strategies seek the development of poles of competitiveness; ie: innovation ecosystems and high-level coordination to raise the competitiveness of all regions, harmoniously combining different sectors, encouraging innovation, efficiently using resources, increasing collaboration, productivity and competition.

By promoting competitiveness clusters, companies will have advantages in terms of access to a broader supplier base, specialized support services, sources of talent, access to knowledge, technologies, human resources and markets among others, attracting similar and complementary companies. In addition to local benefits, the said poles facilitate the efficient integration into production with strong national and international innovation networks.

Under this criteria, this report will allow us to continue this strategy and support the development of the sector. We invite you to take the time to read through this work and learn about the Competitive and Strategic Mexican Aerospace Industry.

Francisco N. González Díaz Benito Gritzewsky K. CEO Chairman ProMéxico FEMIA CONTENT Exclusive Synergy through diversity: An Introduction 69. Interview with Centro de Investigacion en 120. Interview with Bombardier Mexico Baja to Mexico’s Five Main Aerospace Clusters Materiales Avanzados (CIMAV) 122. Interview with Safran Group Interviews 70. Crosschecking Collaboration and Innovation, 123. Interview with ITP Querétaro California 9. Interview with ProMéxico Zodiac Aerospace, SOISA Aerospace 124. Interview with TechOps Mexico Leaders from both the private and public sector 10. Interview with Mexican Federation of and Universidad de la Salle work together in 125. Interview with Aeronautical University of delve into the nuances and nascent developments % of Total Respondants that are shaping the industry. Welding Aerospace Industries (FEMIA) designing aircraft seats Querétaro (UNAQ) PROCESSES LACKING IN MEXICO 11. Introducing Mexico’s Aerospace Industry 71. Interview with SOISA Aerospace 126. Interview with Tooling 72. Interview with Parque en Innovation Infrastructure Querétaro (GEIQ) Software design 14. Interview with Ernst & Young Sheet metal fabrication 15. Interview with Goodrich, Riquelme y Universidad La Salle Chihuahua (ULSA) 127. Making Primes Feel at Home, Building 9, 18, 26, 41, 60, 71 and many more R&O / MRO Asociados 73. Supply Chain Status, Working to Fill the Gaps Querétaro’s Local Supply Chain Raw materials distributors 74. Interview with Wesco Aircraft Chihuahua 128. Interview with Especialistas en Turbopartes Non-destructive testing (NDT) 16. Aerospace Survey Data Analysis Molding and plastic injections 18. Interview with 75. Interview with Palomino High Precision 129. Interview with RYMSA Metrology and calibration services Manufacturing of tubing and ducting 19. Interview with Mexicana MRO Services Machining 130. Interview with HYRSA Aerospace Manufacturing of castings

Manufacturing of seals, sealants, 76. Interview with Intermex Industrial Parks 131. Interview with TechFab Inc. Mexico fasteners and elastomers Baja California: An Aerospace Community 77. Escalating Capabilities, Aerostructures, 132. Interview with Aeroprocess TTT Precision / CNC machining IN COMPARISON TO OTHER SECTORS, DEVELOPING THE AEROSPACE INDUSTRY Manufacturingharnesses, of electronic electro components, mechanics Machining and Beyond 133. Interview with Omni-X MX IS CRITICAL FOR THE ECONOMIC GROWTH 50 Years in the Making OF MY REGION Heat treatment 78. Interview with Fokker Aerostructures Mexico 134. It’s there if you know where to look, Testing Chihuahua Editorial Forging

79. Interview with Tighitco Aerostructures and Quality-Control in Querétaro Fluid distribution processes 22. An Introduction to Baja California CAD-CAM and Autocad Chihuahua 135. Interview with Tecnica Test Design centers working with Solidworks, Catia, 60% Content 50% 40% 25. Interview with Secretariat of Economic 30% 20% % 10% 80. Interview with L3 Crestview Aerospace 136. Interview with Helmut Fischer Development of fiberglass and composite 0% 21 Development (SEDECO), Baja California 64 Chemical processes and coatings Chihuahua Operations 138. Interview with Testia Group, NDT Expert Global Business Reports’ journalists provide 9 DO YOU THINK THE TRIPLE HELIX MODEL Strongly agree 6 IS EFFECTIVE NATIONALLY 26. Interview with Aerospace Cluster of Baja Agree on-the-ground analysis of the trends that are Disagree 81. Interview with Metal Finishing Co. Mexico Strongly disagree DO YOU THINK THE TRIPLE HELIX MODEL (COLLABORATION BETWEEN ACADEMIA, California INDUSTRY AND GOVERNMENT) IS Chihuahua (MFCO) 139. Interview with Intertek shaping Mexico’s aerospace industry. EFFECTIVE IN YOUR STATE? THE LOCAL/STATE GOVERNMENT SHOULD 27. Interview with Corp. PROVIDE GREATER SUPPORT IN 82. Targeted Education and the Future of DEVELOPING THE LOCAL SUPPLY CHAIN Mexicali Chihuahua’s Aerospace Industry Sonora: Revving Up its Edge in Engines % 28. Interview with Aerospace 69.7 83. Interview with Parque Tecnologico Chihuahua 11, 22, 23, 34, 56, 65, 77, 82 30.3 % Mexicali and Technology Center Yes 33.3 No 84. Interview with Universidad Tecnologica de 66.7 142. In Rare Air, Sonora Powers Aerospace in s 29. Interview with GKN Engine Systems, and many more% Yes Chihuahua (UTCH) 33.3 No Mexico 51.5 75.8% of respondentsassembled in agree Mexico that within it is likely the next all aircraft ten year parts will be Mexicali 9.1 Strongly agree 6.1 85. Interview with CENALTEC 144. Interview with The Offshore Group Agree 30. Interview with Hutchinson Aerospace and Mexicali Disagree 86. Interview with Universidad Politecnica de Nuevo Strongly disagree Industry, Mexico 146. Interview with Ducommun Inc. BAJA SONORA Chihuahua (UPCH) 147. Interview with St. Clair Technologies CALIFORNIA CHIHUAHUA Hermosillo 31. Interview with Innocentro LLC Chihuahua 87. Interview with Colegio del Aeronautico COAHUILA 32. Interview with CETYS University 148. Interview with Ellison Surface Technologies (CAAMEX) 149. Interview with Latecoere International Inc. León NUEVO La Laguna LEÓN 34. Developing Baja California’s Local Supply BAJA y Quantitative CALIFORNIA Region Monterre SUR Torreón Saltillo DURANGO Gómez AS Culiacán Palacio TAMAULIP ZACATECAS Chain La Paz Durango Ciudad SINALOA Victoria Nuevo Leon: Monterrey’s Industrial SAN LUIS La Laguna: The Creation of a Needed Hub POTOSÍ Zacatecas 36. Interview with Eaton Aerospace San Luis Potosí NAYARIT 1 Mérida Data and Maps Aguascalientes Excellence Applied to Aircrafts YUCATÁN of Local Players Tepic QUERÉTARO VERACRUZ 37. Interview with GKN Aerospace Engine Guanajuato 3 Querétaro Campeche ANA 4 Pachuca QUINT Guadalajara ROO 5 JALISCO Jalapa Chetumal Mexico City 7 Systems, Mexicali Morelia Tlaxcala 2 CAMPECHE Colima Toluca TABASCO Quantitative data help readers better understand MICHOACÁN Puebla Villahermosa Cuernavaca 6 38. Interview with Benchmark Electronics Inc. 90. An Introduction to Monterrey’s Aerospace 152. Immense Potential, La Laguna’s Pioneering COLIMA PUEBLA Chilpancingo the position of Mexico, especially relative to its Tuxtla GUERRERO Oaxaca Gutiérrez Industry OAXACA CHIAPAS 39. Interview with Skyworks Solutions de Mexico Aerospace Cluster global competitors. 40. Interview with Orcon Corp., Ensenada 93. Interview with Secretariat of Economic 154. Interview with Habilitaciones y Servicios 41. Interview with Bazz Houston Co. Development of Nuevo Leon (SEDEC) Industriales (HASEIN) 42. Interview with MTI de Baja Inc. 94. Interview with Monterrey Aerocluster 155. Interview with Deltaplast Mexico 43. Interview with American Autoclave Co. 95. Interview with FRISA 156. Interview with Equipos Inoxidables del 8, 13, 16, 23, 153 1. AGUASCALIENTES 2. DISTRITO FEDERAL 96. Interview with HEMAQ 3. GUANAJUATO 44. Interview with BAP Aerospace de Mexico, A Norte (ACV Group) 4. HIDALGO 5. STATE OF MEXICO 6. MORELOS Barry Avenue Plating Co. 97. Interview with Noranco, Monterrey Division 157. Interview with Industrial B&S de México 7. TLAXCALA 300 Km Querétaro 0 100 200 45. Interview with Allied Tools & Die 98. Interview with Viakable 158. Interview with Intelligent Sourcing Solutions 46. Interview with Anodimex de Mexico 99. Interview with Katcon (ISS) 47. Interview with Platinadora Baja 100. Interview with Jaiter 159. Interview with Kimball Solutions 48. Interview with MAIS Industry/SINCO 101. Interview with Tecnologia Procesos y 160. Interview with Kirbymex 49. Interview with Coast Aluminium Maquinados (TECMAQ) 161. Interview with Siete Leguas Supply 50. Interview with Ryerson 102. Interview with Maquinados Industriales 51. Interview with Electro-Mech Components Mitras (MIMSA) Conclusion: Mexico Staking its Claim in the Chain 52. Interview with IVEMSA 103. Interview with Dynamic Logistics Global Aerospace Industry 53. Interview with Tijuana Economic 104. Interview with Grupo Forem 105. Interview with Asesoria y Equipos de Over 300 players are now operating in Development Corp. 164. Expert Opinion Article: Human Capital Inspeccion (AEISA) Mexico’s aerospace manufacturing sector. GBR Trends in the Aerospace Sector 106. Interview with Mexico Aerospace Americas, goes in-depth to describe how gaps are currently Chihuahua: A World-Class Hub More 165. Interview with Transtelco Exova being filled across the country’s supply chain to Deserving of the Spotlight 167. Made with Precision and Intent, The Future 107. Interview with Tecnologico de Monterrey support original equipment manufacturers. of Mexico’s Aerospace Industry Sonora 108. Interview with the Autonomous University 34-161 168. Company Directory 56. Introducing the Aerospace Industry in of Nuevo Leon (UANL) 178. Credits Chihuahua 110. The Aerospace Aftermarket, Monterrey’s 58. Interview with Secretariat of Economy, MROs Chihuahua State Government 111. Interview with Monterrey Jet Center 59. Interview with Aerospace Cluster Chihuahua, 112. Interview with Avihel Mexico 113. Interview with Grupo Lomex 60. Interview with American Industries 61. Interview with Safran Labinal Power Future Querétaro: An Emerging Aerospace This research has been conducted by Gabrielle Morin, James Hogan, Chihuahua Powerhouse Ty Jeevaratnam, Meredith Veit, Josie Perez, Juan Pablo Buerba, 62. Interview with International Mexico Agostina Da Cunha, and Mungo Smith. Outlook 63. Interview with Zodiac Aerospace Equipo de Edited by Mungo Smith Mexico 116. Introducing the Aerospace Industry in Graphic design by Gonzalo Da Cunha Aerospace is at the cutting edge of technology 64. Interview with EZ Air Interior Ltd. Querétaro and design. Mexico is establishing itself as a 118. Interview with Secretariat of Sustainable A Global Business Reports Publication 65. Building Through Collaboration For updated industry news from our on-the-ground teams La Laguna global manufacturing player and leaders share 67. Interview with Altaser Aerospace Development (SEDESU), State of Querétaro around the world, please visit our website at gbreports.com, their visions on the future of the industry. 119. Interview with Site, subscribe to our newsletter by signing up to our VIP list 68. Interview with Fablab International through our website, or follow us on Twitter: @GBReports Technology Querétaro 162-167

MEXICO AEROSPACE 2016 MEXICO AEROSPACE 2016 GBR • Industry Explorations • MEXICO AEROSPACE

SYNERGY THROUGH DIVERSITY: AN INTRODUCTION TO MEXICO'S FIVE MAIN AEROSPACE CLUSTERS

“In 2005 there were 61 aerospace companies established in Mexico. Today, one decade later, more than 300 companies and agencies make up the sector. The consolidation of Mexico as an important investment destination and as a platform for development in this industry has been possible thanks to the efforts of our triple propeller: government, academia and industry.”

- Francisco N. González Díaz, CEO, ProMéxico Image: Zodiac Aerospace Global Business Reports INTERVIEW

MEXICO Mexicali Mexico has the second largest population BAJA and third largest land area in Latin America CALIFORNIA SONORA tion proposed since its inception, including Major international companies like Bombar- G uf l and is situated to the south of the United Hermosillo a prospective analysis of global trends in dier, Safran Group, GE, Honeywell and Eu- o f Chihuahua States, with which it shares a 3,200-km CHIHUAHUA aerospace and defense, with particular em- rocopter have found in Mexico the conditions (1,900-mile). Since the implementation of C phasis on the implications for Mexico. Fi- to develop design and engineering centers, a of i l rn i COAHUILA the North American Free Trade Agreement nally, points are the regional strategies of the laboratories and production lines capable of Monterrey in 1994, the U.S. and Mexican economies a Saltillo main aerospace cluster in the country are. evolving quickly to handle more complex NUEVO have grown at similar rates and patterns. In LEÓN The results collected in this publication have assignments in the race for next generation 2014, over 80% of Mexican exports were G ulf materialized from the proposals of the first engines and airframe components. This has of destined for the . According Mexico versions of the PVN. As may be noted, it has been possible due to the wealth and avail- QUERÉTARO to the Congressional Research Service, Querétaro been shown how various actors can coordi- ability of specialized human capital. Mexico

Mexican exports to the United States from Mexico City nate the Mexican aerospace industry in or- is the most important talent pool in America, $39.9 billion in 1993 to $280.5 billion in der to trigger their growth and increase their with more than 100,000 graduates per year 2013. Since assuming office in December North added value. from engineering and technology courses. In Pacific 2012, the Mexican President, Enrique Peña Ocean This year we celebrated together the first addition to new graduates, Mexico has highly Nieto has passed a series of reforms in edu- Mexican Aerospace Fair, which was at- qualified personnel with decades of experi- cation, telecommunications, tax reforms, tended by 190 companies from 11 different ence in the automotive, electronics, medical and most notably energy, which had been 0 100 200 300 Km countries. The success of this first edition devices and advanced manufacturing-related nationalized since 1938. confirms the strength of the Mexican aero- industries. The overall quality of infrastruc- Francisco N. space sector around the globe. Our country ture has also played a major role in creating

MEXICAN GROWTH VS. INFLATION, 2008 TO 2017 reaches higher altitudes every day. Proof of favorable conditions with the availability of Source: International Monetary Fund González Díaz this are the results obtained in the last years laboratories, certification units and the pres-

GROWTH % INFLATION % in the aerospace sector and its growing suc- ence of Mexican civil authorities. 6 6 cess. Today, as never before, Mexico flies This facilitated the signing of the Bilateral 5 5 high and with wings of its own. Agreement (BASA) with the 4 4 United States Federal Aviation Administra- 3 3 CEO 2 2 Can you talk about some of the main qual- tion, which involves the recognition by the 1 1 PROMÉXICO ities Mexico offers today to encourage in- United States government of aeronautical 0 0 ternational investment into the aerospace certification systems and products made in -1 -1 industry? Mexico. This allows components to be de- MEXICO AT A GLANCE -2 -2 -3 -3 Source: CIA World Factbook Mexico is a country that is flying high in the signed and manufactured in the country and -4 -4 FORECAST aerospace industry. This is possible thanks encourages the development and strength- Population: 121,736,809 (July 2015 est.) -5 -5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 to our experience in high-tech sectors, our ening of national procurement for the parts Land Area: 1,964,375 sq km Official Language: Spanish proximity to the United States—the most manufacturing industry Capital: Mexico City (Distrito Federal) important market in the world—our infra- Chief of State: President Enrique Pena Nieto (since CURRENT ACCOUNT BALANCE ($ billions), 2008-2017 Source: International Monetary Fund December 2012) structure and major transport and logistics What initiatives does ProMéxico have to Head of Government: President Enrique Pena Nieto Can you provide a brief overview of Pro- networks, having joined the Wassenaar Ar- accelerate the country’s ascent in the pro- 0 0 (since December 2012) México’s role in the promotion of the rangement and, above all, our talent and hu- duction ladder? GDP (PPP): $2.22 trillion (2015 est.) -3 -3 Growth Rate: 2.3% (2015 est.) -6 -6 Mexican aerospace industry? man capital. These competitive advantages In order to support the development of the GDP per Capita: $18,500 (2015 est.) -9 -9 The sustained growth of the Mexican aero- have enabled the operations of major aero- industry and to encourage innovation and the GDP Composition by Sector: 3.5% agriculture, -12 -12 space industry is the result of the coordina- space companies in Mexico. Some relevant value-added activities, ProMexico is sup- 34.1% industry, 62.4% services (2015 est.) -15 -15

Exports: $430.9 billion (2015 est.): manufactured -18 -18 tion of industry, academia, and government. figures demonstrate our success: at the be- porting this industry in two strategic areas: goods, oil and oil products, silver, fruits, vegetables, -21 -21 This triple helix has built a collective vi- ginning of the 21st century, our aerospace developing exports and attracting foreign di- coffee, cotton -24 -24 Imports: $434.8 billion (2015 est.): metalworking sion of the future of this sector, establish- exports were almost zero. In 2014 we ex- rect investment. In order to promote exports, -27 -27 machines, steel mill products, agricultural machinery, ing multiple actions to develop and promote ported over 6.3 billion dollars. Another fact ProMéxico organizes Mexican Pavilions -30 -30 electrical equipment, automobile parts for assembly FORECAST -33 -33 its competitiveness. From this vision, Pro- illustrates our growth: in 2005 there were 61 every year at the major international trade and repair, aircraft, aircraft parts 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Major Trade Partners: United States, , México, in coordination with key industry aerospace companies established in Mexico. shows, buyer missions, business encounters, players, created and orchestrated in 2010 a Today, more than 300 companies and agen- and otherevents. This year, a Mexican Pavil- UNEMPLOYMENT RATE, 2008-2017 comprehensive plan called National Plan of cies make up the sector. The consolidation ion was installed at the International Paris Source: International Monetary Fund Flight (PVN), which has been the basis for of Mexico as an important investment desti- Air Show at the Paris-Le Bourget Airport,

5.8 5.8 developing the national strategy of Mexican nation and as a platform for development in with a significant number of Mexican com-

5.6 5.6 aerospace (ProAero). The PVN is the point this industry has been possible thanks to the panies. ProMéxico held a seminar on issues 5.4 5.4 of reflection and assessment that refines the efforts of our triple propeller: government, of foreign investment with FEMIA at the first 5.2 5.2 strategy defined in the previous years, con- academia and industry. edition of the Aerospace Fair Mexico 2015, 5.0 5.0

4.8 4.8 sidering the developments and evaluating organized recently by the Mexican Air Force

4.6 4.6 results for its tactical and operational imple- Mexico’s aerospace industry has grown (FAM). Moreover, at the initiative of Boe- 4.4 4.4 mentation. 17.2% annually for the past nine years. ing, a seminar was organized under the First 4.2 4.2 Now in its fifth version, the PVN pres- Can you talk about some of the key driv- Forum of International Procurement that this 4.0 4.0

3.8 3.8 ents the result of projects and lines of ac- ers for his growth? aeronautical company held in Mexico. • FORECAST 3.6 3.6 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Industry Explorations - 9 - MEXICO AEROSPACE 2016 INTERVIEW Global Business Reports Global Business Reports EDITORIAL

Image: Safran Labinal teract with agencies, various levels of gov- of the most important factors for the future ernment in Mexico, and different clusters of the industry in Mexico. INTRODUCING and organizations like FEMIA globally to share and develop relationships), and pro- Companies have identified a lack of motion (we have a group that is in charge skilled labor. Has this also been identi- MEXICO’S of promoting the aerospace sector in Mex- fied by FEMIA? ico and internationally) This is another example of the process that AEROSPACE Mexico is undergoing. To curtail this is- Can you talk about the efforts that sue, we are promoting technical level edu- INDUSTRY FEMIA are making to grow the local cational institutions in the areas which in- network of small and medium-sized en- dustry has identified as lacking. terprises (SMEs) supporting the aero- space industry and ensuring that corpo- What are some of the areas for lobbying rations have access to the supplies they that FEMIA is involved? need? We are working with the Ministry of Econ- FEMIA is currently developing and moni- omy in Mexico and ProMéxico to jointly toring a system, which takes an invento- promote Mexico’s aerospace industry. We ry of the companies in the sector as well are promoting as one entity so we might Luis as the kinds of skills and capabilities that coordinate all of our efforts together to they possess, and matching them with the employ a more efficient and clear - mes Lizcano requirements of other companies. sage. Another example is the Mexican Aerospace Show that we work jointly with The aerospace industry in Mexico re- Mexico’s Air Force in order to promote sembles an inverted pyramid, in that and organize, in which 250 exhibitors par- there are many original equipment ticipated in the first year and for the 2017 General Director manufacturers but a shortage of local show expect close to 500 exhibitors. In the past decade, there has been more tralized around the capital, Chihuahua in Chihuahua. Though timelines are highly MEXICAN FEDERATION OF suppliers. What is causing this and what aerospace-related foreign direct invest- City. In addition to housing five of the dependent on the industry, airplane paint- AEROSPACE INDUSTRIES, A.C. is the solution? What is FEMIA’s strategy for achiev- ment in Mexico than in any other coun- seven original equipment manufactur- ing and parking centers are expected to be (FEMIA) This inverted pyramid is not a long-term ing its goal of 400 foreign companies try in the world. According to Fernando ers (OEMs) in Mexico—, Beech- added to Chihuahua’s international airport trend but a snapshot of the current land- in Mexico, and some of potential chal- González Díaz, CEO of ProMéxico, “the craft, Textron International, Honeywell by the end of 2016. scape of aerospace in Mexico. The de- lenges? sustained growth of the Mexican aero- aerospace, and EZ Air Interior Ltd.—the Nuevo León is one of Mexico’s industrial velopment of a supply chain is an ongo- FEMIA is very optimistic about the future, space industry is the result of coordinated state’s capabilities range from interiors, to hubs, and the city of Monterrey boasts a ing process, and the aerospace sector in but we are aware of some of the challenges industry, academia and government jobs.” emergency evacuation systems, to aero- rich history in the steel, cement and glass Mexico is fairly young. We have some we might encounter. The first one is to con- The continued development of the aero- structure assembly for aircraft and heli- industries. These markets are dominated very important companies that are in Mex- solidate the integration of the supply chain space sector in Mexico has given rise to copters. The government is working to by large, family-owned Mexican compa- Can you introduce FEMIA by providing ico and we recognize the need to develop as we see this as only a Mexican aerospace five distinct clusters: Baja California, implement a multifaceted maintenance, re- nies that in recent years have identified a brief history of the association? the rest of the supply chain pyramid ade- industry market and would like to con- Chihuahua, Nuevo León, Querétaro, and pair and overhaul (MRO) plan, with hopes the opportunities offered by the aerospace There has been a constant growth within quately –but this is all part of a process, solidate the supply chain as a platform for Sonora. After conducting seven months of of eventually having a final assembly plant industry and have undertaken a strategy of the aerospace industry in Mexico. From within which we are trying to accelerate North America. The second challenge is research on the ground, this in-depth re- 2004 to 2014, we have been growing at an this progression through developing the to fulfill the human capital requirements port is a culmination of our findings across MEXICO AEROSPACE EXPORTS, 2004-2014 ($ millions) average rate of 17% per year. This growth companies who have the proper skills to with the growth of the aerospace industry, these five these states, as well as an intro- Source: ProMéxico, via Ministry of Economy, DGIPAT, with data from DGCE-Banxico. $ MILLIONS necessitated the emergence of some kind then grow the supply chain. And where which is why we work closely with aca- duction to Coahuila as an up-and-coming 7,000 7,000 of association of aerospace companies. In technologies that are not available in Mex- demic institutions. Mexican aerospace destination. 6,500 6,500

2007, FEMIA was established under that ico are required we then invite companies Baja California’s aerospace cluster began 6,000 6,000 premise, and currently includes around 90 to operate in Mexico to supply the North Do you have a final message for the in- fifty years ago and has evolved into the 5,500 5,500 member companies. American market. ternational aerospace community? largest and most established aerospace The first message is to Mexican -compa cluster in Mexico today. Its 80-plus aero- 5,000 5,000 Can you describe the organizational How does FEMIA link academia to in- nies who are looking to participate within space companies are spread between the 4,500 4,500 structure FEMIA and discuss some of dustry? the industry, and that is to engage in their clusters of Tijuana and Mexicali and the 4,000 4,000 the principle needs of the industry that We serve as the linkage point between ac- due diligence and learn about the indus- cities of Ensenada and Tecate. The state 3,500 3,500 it seeks to address? ademia and some companies, by actively try in order to understand what is neces- is home to companies such as Honeywell, 3,000 3,000

Comprised by a very small staff that sup- working to fill the gaps in academia identi- sary for them to achieve this goal. To the UTC, GKN and Eaton, with a clear focus 2,500 2,500 ports a board, we work under the following fied by companies’ requirements. For ex- international community, we want them to on electrical and electronic systems, en- 2,000 2,000 four pillars: competitiveness (supply chain ample we have a close relationship with get to know Mexico beyond the headlines. gine parts, assembly of interior and seats, 1,500 1,500 development), human capital development the Mexican Aerospace Education Coun- Mexico has much to offer to foreign com- control and navigation instruments, and (working together with industry and aca- cil, which is an organization that groups panies that can benefit the growth of the engineering and design. 1,000 1,000 demic institutions to pursue new skilled some of the major educational institutions. aerospace industry in Mexico. • Contrastingly, Chihuahua’s aerospace 500 500 human capital), institutional relations (in- Furthermore, we recognize that this is one cluster is relatively new and highly cen- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MEXICO AEROSPACE 2016 - 10 - Industry Explorations Industry Explorations - 11 - MEXICO AEROSPACE 2016 EDITORIAL Global Business Reports Global Business Reports EDITORIAL

diversification. Today 80% of the compa- state is developing its specialties in parts California, the industry has reached a point nies with operations in the aerospace in- for fuselage, landing gear, cables, har- where there are too few suppliers to absorb MEXICO'S FIVE MAIN AEROSPACE CLUSTERS dustry in Monterrey are Mexican-owned nesses and precision machining, and the continued growth and, as such, the state is + LA LAGUNA companies. One exception is the state’s joint venture between AeroMéxico and facing an inverted pyramid problem. The only OEM, Monterrey Aerospace, which Delta Airlines led to the 2014 inauguration Tijuana and Mexicali clusters in Baja Cali- is a wholly owned subsidiary of MD He- of TechOps MRO—Latin America’s larg- fornia are focused on developing providers licopters. Nuevo León has a specialization est MRO. The opening of the Aerospace of special processes such as heat-treatment in metal mechanics and offers strong test- University in Querétaro (UNAQ) further and non-destructive testing, for which ing capabilities through companies such burnishes Querétaro’s reputation of the contractors still look abroad. In Querétaro, as Exova and Grupo Forem. Monterrey is strongest emerging cluster in Mexico. there is a lack of machine shops and ac- Mexicali also home to a competitive MRO market While Sonora is typically known for min- cess to raw materials. This report aims to centered on the city’s private Aeropuerto ing as well as automotive manufacturing describe how the industry is overcoming del Norte. The state government and the and other maquiladoras, the state’s tri-city the challenges of building a sustainable lo- BAJA Monterrey Aerocluster hope to grow the aerospace cluster, comprised of Hermosil- cal supply chain, challenges that are rooted CALIFORNIA SONORA CHIHUAHUA aerospace sector by attracting a prime con- lo, Guaymas and Empalme, is helping to in the difficulty of certification, a lack of Hermosillo tractor that would stand to gain the most shift the state’s industrial profile. Sonora qualified skilled labor, and restricted- ac Chihuahua value from what Nuevo León can offer and is characterized by aerospace companies cess to capital. Towards the end of the COAHUILA likewise bring the most value to the state. that are focused on precision machining, book, we have highlighted the special case Querétaro’s aerospace sector, on the other electromechanical assembly and sophisti- of La Laguna, a region in northern Mexico hand, also emerged recently in 2006 with cated processes. Still growing and work- that is developing local suppliers to solve NUEVO BAJA the arrival of Bombardier. Today, the two ing through a lack of sufficient suppliers, some of the pressing issues listed above as CALIFORNIA La Laguna LEÓN other major players in the state are Airbus Sonora nonetheless claims the title as the national concerns. SUR Region Monterrey DURANGO Torreón Saltillo Helicopters and SAFRAN Group. The largest cluster of precision-machining and We would especially like to thank our Culiacán Gómez La Paz Palacio state’s 40-plus companies also include engine-component companies in Mexico. partners, ProMéxico and FEMIA, for their Durango ZACATECAS TAMAULIPAS SINALOA Ciudad a few international tier-one and tier-two The central focus of our research across continued support and show our gratitude Victoria SAN LUIS companies, which are centered around the Mexico’s five aerospace clusters is on the to the local governments for their assis- POTOSÍ Zacatecas state’s capital, Santiago de Querétaro. The development of the supply chain. In Baja tance throughout our project. • San Luis NAYARIT 1 Potosí Aguascalientes Mérida Tepic Guanajuato QUERÉTARO VERACRUZ YUCATÁN 3 Querétaro Guadalajara 4 Pachuca Campeche JALISCO 5 QUINTANA Jalapa ROO Morelia Mexico City 7 Colima 2 Tlaxcala Chetumal MICHOACÁN Toluca Puebla TABASCO CAMPECHE Cuernavaca 6 COLIMA Villahermosa Aerospace facts PUEBLA

Chilpancingo

GUERRERO Oaxaca Tuxtla Gutiérrez OAXACA $6,686 CHIAPAS million EXPORTS DURING 2015 5% GROWTH OVER 2014

1. AGUASCALIENTES 2. DISTRITO FEDERAL $1,033 3. GUANAJUATO 4. HIDALGO 5. STATE OF MEXICO million 6. MORELOS 7. TLAXCALA FAVORABLE BALANCE IN THE TRADE BALANCE IN 2015 0 100 200 300 Km

Source: Proméxico

MEXICO AEROSPACE 2016 - 12 - Industry Explorations Industry Explorations - 13 - MEXICO AEROSPACE 2016 INTERVIEW Global Business Reports Global Business Reports INTERVIEW

VAT returns, global-trade compliance and You mentioned that employees are very odrich actively promotes foreign invest- paid. Additionally, Mexico offers the IM- data analytics, which is crucial for efficient loyal, but what does the aerospace sec- ment in Mexico through conferences, pre- MEX program, which allows the importa- lead times. tor believe the workforce lacks? sentations, and trade missions in Mexico tion of goods, machinery, and raw materi- Mexico produces more engineers per cap- and abroad in collaboration with differ- als on a temporary basis, which are utilized Can you provide us with an example of ita than the United States. This sounds im- ent public and private organizations such in production and then exported as a fin-

the type of work EY performs for aero- pressive, but it does not benefit the aero- LPD as ProMéxico and the different European ished product. space clients in Mexico? space industry and the oversupply floods Chambers of Commerce and Consulates. One of EY’s clients is one of the biggest the marketplace, diminishing the return on While there is great potential for the in- manufacturers in Chihuahua and it ex- the students’ engineering education. Most What services does Goodrich provide to dustry, what are the greatest obstacles ports a significant amount of its produc- of the engineering graduates have a ‘desk’ the aerospace industry? that it still faces? tion, meaning it has significant global- engineering degree, but the industry needs LPD: There are very high expectations for EDO: Aerospace is one of the most strate- trade concerns. Nearly 100% of the raw technicians, which is less ‘chic’ and start- the aerospace industry to create exponential gic sectors for the country’s development. materials, such as high-grade aluminum ing salaries are quite low. Understandably, EOL growth for the Mexican economy, as it is It is an industry for which Mexico offers and metals, have to be imported as they students do not want to get a technician de- generating employment and incrementing significant competitive advantages and, at are not produced in Mexico. As such, the gree. The irony is that given the short sup- technological capacities as well as trans- the same time, has a very positive poten- process of importing raw materials for ply of technicians in Mexico, international forming the skills of the labor force. For tial impact on Mexico ́s economy. There manufacture, and then exporting the final firms are willing to pay great money, as the firm, the aerospace industry represents are, however, some issues that must be ad- product is not easy for the companies. EY much as they pay their technicians in Eu- an important area of opportunity as this dressed in order for Mexico to successfully Francisco works closely with them to have the right rope or North America, in order to secure Luis Pérez Delgado sector may experience 5% to 15% growth climb the global rankings. These issues in- systems in place that also comply with the professional technicians. during the next 10 years in the value chain clude the lack of coordination between op- Bautista Mexican authorities. With regards to spe- & Elisa de la O of suppliers. Our firm has represented avia- erators and authorities, as some airports are cialized taxation when operating a maqui- The industry will undoubtedly continue tion clients for several decades, granting overused and some are underused. Another ladora, several issues arise that could have to grow in the years to come, but what López us extensive experience advising clients in main issue is the lack of connectivity out of implications on a company’s tax structure areas need to be address in order to investment, company acquisitions, capital- the airport through logistics’ infrastructure, in Mexico, including ensuring that the op- achieve greater growth? izations, aircraft parts concessions and air- which affects the production-consuming- Senior manager Global Trade LPD: Senior Partner erating model complies with permanent Aerospace in Mexico is still in its infancy. craft registration. However, our aerospace distribution nodes. Lastly, there is a lack and Investment EDO: Lawyer ERNST & YOUNG establishment exceptions, transfer pricing, We have significant players doing very GOODRICH, RIQUELME Y practice group and full-service law firm of an adequate airport infrastructure in the and human capital. specialized manufacturing. Mexico has yet may advice companies on the following main cities, which limits the possibility for ASOCIADOS to see the rise of all the support industries services: intellectual property and protec- Mexico to establish itself as the main cen- How do foreign aerospace companies that are necessary for these big companies, tion of patents, designs and technology de- ter of passenger and cargo connectivity for evaluate opportunities in Mexico differ- like specialized recruiting firms or sourc- velopment, procedures before the general Latin America. ently from foreign companies in other ing consultants for the aerospace industry, direction of civil aeronautics, labor advice, industries? whereas in specialized countries there are tax and customs advice for the aerospace How would you evaluate the aerospace The aerospace sector looks at investment firms dedicated 100% to these efforts. The industry, advice for maintenance, repair industry’s contribution to Mexico in on a whole different spectrum than other same thing occurs in logistics and trans- and overhaul companies, and advice for terms of job creation and other relevant We would like to start with a brief in- companies trying to enter the country. portation, which leads to the big compa- Can you provide us with a brief intro- original equipment aerospace manufactur- benchmarks? troduction to the services that Ernst & Most investments in Mexico are created nies taking the burden of doing it them- duction into Goodrich, Riquelme & Aso- ers, just to name a few. LPD: The aerospace industry is a great Young (EY) offers to the aerospace sec- with a strategy to reduce costs by taking selves. If Mexico wants to take a leading ciados (Goodrich)? source of specialized jobs and economic tor in Mexico. advantage of the federal programs like ma- role, it should grow its support industries. LPD: Goodrich is one of the most presti- How have NAFTA and MEUFTA helped activities closely linked to the development Ernst & Young (EY) has been in Mexi- quiladora, IMMEX, or VAT certification. Separately, the industry in Mexico has not gious, widely respected and innovative law to grow the aerospace industry in Mex- of new technologies and the advancement co for over eighty years, serving several Aerospace, on the contrary, does not really done an adequate job promoting itself. The firms in Mexico City. From its inception ico? of Mexican manufacturing talent. The in- aerospace clients through our four service consider those aspects until the very end. industry has been growing in the double in 1934, the firm has specialized in repre- EDO: The main impact derived from dustry in Mexico generates about 31,000 lines, which include tax, transaction-advi- The crucial points they focus on relates to digits for the last ten years and employs senting companies doing business in Mex- NAFTA and MEUFTA can be seen in the formal jobs, from which 64.5% are located sory services, business advisory, and assur- operational elements, including the supply more than 40,000 people, yet it is still ico in all legal aspects at every level. The reduction of duties. With NAFTA, duties in the states of Baja California, Chihuahua, ance services. The latter is mainly auditing chain and labor force. Mexico is not the Mexico’s best-kept secret. One could ar- vast majority of its clients are medium and that were approximately 15% to 20% are and Querétaro. The design of aircraft parts services but as global chains become more cheapest workforce in the world; however, gue that this is because most of the long- large companies, some of which are in the now exempted with respect to import tax. and systems is an everyday-growing mar- integrated it has become critical for com- companies do not focus solely on the hour- term contracts are negotiated at headquar- ‘Fortune 500’ category. As the firm has a Thanks to this benefit, it is enough for a ket, therefore innovation and the capabil- panies to create strategies around the tax ly wage, but also on the productivity of the ters, while the operations are mainly here strong international orientation, a number company to be registered in the National ity of developing value-added products to and administrative part, feasibility analy- worker. Aerospace companies are looking and they focus solely on quality and manu- of our attorneys have lived, trained, and are Importers’ Registry for it to obtain the cor- the aircraft production chain is without a sis, supply-chain-network analysis, entry- more at the cost per piece, and not neces- facturing standards. Several large corpora- qualified to practice in other countries as responding NAFTA origin certificate to doubt a business opportunity around the strategy models, site selection, business sarily the wage per hour, which is where tions that are looking to increase visibility well as being multilingual. Today the firm have right for exemption rates when im- globe, strategically positioning Mexico. and financial case for new investments. Mexico excels. Furthermore, Mexican and brand awareness today have estab- has a professional and administrative staff porting parts, components, and raw materi- But, there is still a great deal of work to Additionally, there is a vast amount of workers are extremely proud and loyal to lished corporate offices in Mexico like of approximately 200. Goodrich’s main als for the aerospace industry. As for parts, be carried out, especially considering that products crossing borders that ends up be- their companies. It is no cliché that within Airbus group or Safran Group, but growth practice areas cover: aerospace, automo- with the MEUFTA certificate of origin, the according to the government’s Pro Aero ing a heavy burden on companies if they the aerospace sector in Mexico, the suc- will increase even more once small and big tive and transportation in general, as well same are also exempted, being subject to 2012-2020 plan, Mexico is expected to in- do not have the right expertise and systems cess of the company is derived from the players alike adopt a similar approach. • as corporate, mergers and acquisitions and the applicable rate is only MXN$300 for crease sales, which will bump up its global in place. To support its clients EY´s team success of its employees, which is why commercial transactions, taxation, customs customs service per import declaration. In ranking from its current position at 15th of experts assists with inventory tracking, companies are so protective of them. and trade regulation, and many more. Go- both cases, VAT (16%) on imports shall be place to 10th place. •

MEXICO AEROSPACE 2016 - 14 - Industry Explorations Industry Explorations - 15 - MEXICO AEROSPACE 2016 FACTSHEET Global Business Reports

PROCESSES LACKING IN MEXICO % of Total Respondants

Welding

Tooling AEROSPACE Software design Sheet metal fabrication

SURVEY R&O / MRO DATA Raw materials distributors ANALYSIS Non-destructive testing (NDT) Molding and plastic injections

Metrology and calibration services

Manufacturing of tubing and ducting

Manufacturing of castings

IN COMPARISON TO OTHER SECTORS, Manufacturing of seals, sealants, DEVELOPING THE AEROSPACE INDUSTRY fasteners and elastomers IS CRITICAL FOR THE ECONOMIC GROWTH OF MY REGION Precision / CNC machining

Manufacturing of electronic components, harnesses, electro mechanics

Heat treatment

Forging

Fluid distribution processes

Design centers working with Solidworks, Catia, CAD-CAM and Autocad

% Strongly agree 21 Development of fiberglass and composite Agree 64 Disagree 9 Chemical processes and coatings

Strongly disagree 6 0% 10% 20% 30% 40% 50% 60%

THE LOCAL/STATE GOVERNMENT SHOULD DO YOU THINK THE TRIPLE HELIX MODEL DO YOU THINK THE TRIPLE HELIX MODEL PROVIDE GREATER SUPPORT IN (COLLABORATION BETWEEN ACADEMIA, IS EFFECTIVE NATIONALLY DEVELOPING THE LOCAL SUPPLY CHAIN INDUSTRY AND GOVERNMENT) IS EFFECTIVE IN YOUR STATE?

% % % Strongly agree 33.3 Yes 33.3 Yes 69.7 Agree 51.5 No 66.7 No 30.3 Disagree 9.1 75.8% of respondents agree that it is likely all aircraft parts will be Strongly disagree 6.1 assembled in Mexico within the next ten years

MEXICO AEROSPACE 2016 - 16 - Industry Explorations INTERVIEW Global Business Reports Global Business Reports INTERVIEW

through long-term leases. It is common for has grown in the last three years in terms Mexicana MRO Services was a part of How does Mexicana MRO plan to con- foreign companies not to invest directly in of passenger numbers by over 10% to 13% Mexicana Airlines until it ceased its op- tinue to expand its domestic and interna- infrastructure. The trend and aim of these per annum, translating into investments erations in 2010. Can you provide us tional footprint? foreign original equipment manufacturers in fleet growth and modernization by all with an introduction to the company as a Mexicana MRO has a solid amount of na- (OEMs) is to build their surroundings with Mexican airlines. The consumers have standalone entity and how it has fared in tional clients, but our main market is South

EM local suppliers and providers, and this ver- benefitted incrementally as the prices keep the last two years? America. Our eyes are set on European tical integration is precisely what Mexico dropping as a result of increased competi- Mexicana MRO Services was a part of leasing companies, which we increased needs. Our primary goal as a development tion, which has created a real debate about Mexicana Airlines to provide maintenance from one to three this year. The goal is to bet is not to directly finance OEMs and whether to travel by bus or plane. to its fleet, but beginning in 2007 it also heavily on consolidating business with the tier-one companies, which usually come All these factors are driving growth, which sought opportunities as a third-party pro- Central and South American companies and from Europe or the United States with translates to airlines renovating or chang- vider for other airlines. Today, Mexicana continue to scout the opportunities in the cheaper credit from home or the interna- ing their fleet, which is a major trend MRO Services offers maintenance and United States in order to bring their ships FLHU tional market financing in various stock seen mainly in Asia Pacific, China, and painting through its nine production lines, to Mexicana MRO. U.S. airlines can choose exchanges, but to foment the development the Middle East, like Kuwait and Saudi two of which are dedicated to painting. Our from a massive supply of maintenance, re- of the local tier-two and tier-three base of Arabia. OEMs currently have orders that hangar is flexible, allowing us to service pair and overhaul (MROs) companies, but both domestic and foreign companies. are up to their capacity for the next eight wide and narrow bodies. Mexicana MRO the availability and cost of the skilled work- EM: Bancomext also offers airlines struc- years, meaning that if a Mexican company had been struggling from grave financial force in Mexico, as well as our own efforts tured financing so that they can purchase wants to buy a plane, it must buy it with and economic times since its inception, but to increase our certifications, will enhance Eduardo Muñíz ships and increase and modernize their years in advance, and must solicit financ- Marcos through disciplinary action and stern deci- our chances, especially as our operations in- fleet. Mexico's growth in aviation has ing from institutions like Bancomext in or- sion making by the management team, the crease once we move into the new airport. & Federico become quite significant over the years, der to secure it. Rosales Gómez company was finally able to be audited in showing very optimistic signs when com- Mexico, furthermore, has an even greater 2014 by PwC, with a quite positive and fa- What competitive advantages differenti- Antonio de la pared to the rest of the world, both in ex- opportunity not only in aviation but es- vorable outlook. Looking forward, 2015 ate Mexicana MRO from other MROs in panding the fleet and remodeling and mod- pecially in the maintenance, repair and will be completely different to 2014, not in Mexico and the region? Hoz ernizing the current fleet. overhaul sector, since Mexico becomes a a sense that 2014 was bad, but on the con- The Mexican market is small with only Director General and CEO hub for Latin America to North America trary, the difference will come from the fact three main players, which give services to EM: Director, Finance, Transport, MEXICANA MRO SERVICES Logistics and Aerospace How have shelter schemes been key for as well as the whole world, not to mention that there was no financial base of records. third parties, while Aeromexico and Inter- FHU: Head, Aerospace Sector the development of the aerospace sector the competitive cost of labor. Our initial calculations yielded that we had jet have their own shops. Today, we are the BANCOMEXT in Mexico? 3.5 production lines per year, but in reality leader in market share, and have established FHU: Mexico has a unique way of working What are the goals and vision for Ban- we are actually reaching 5.5 on average as three main factors that will help increase with the big, international OEMs through comext with regards to the aerospace of 2015, which has given us a certain stabil- our market share. The first is the flexibility shelter schemes. Shelter schemes can of- industry in Mexico? ity. Furthermore, client retention has been a to receive airlines, aided greatly by the en- fer certain benefits for companies -look EM: Bancomext has very competitive fi- determining factor for our uphill climb, as gineering team that we inherited from Mex- ing to invest into Mexico, like not need- nancing and one of our advantages is that we are favored by the national clients, and icana and allow the internal logistics to run ing to make capital investments, nor hiring we can provide very long tenors, such as South American clients have stuck with us smoothly. The second is delivery time, and Can you provide us with a brief intro- personnel, nor creating a legal company 25+ years, that are not usually found in and are actually growing, since we added the third is the number of certifications, of duction into Bancomext? structure. On the contrary, these compa- the market. Bancomext wants to be an al- four more in 2015. which we have sixteen. • EM: Bancomext is a development bank in nies connect with various commercial real ternative for the sector's financing and go charge of fomenting and financing Mexi- estate developers who take care of topics hand-in-hand with the principal players in can international trade, and is geared to- like finding the specialized technical per- aerospace as well as with the clusters with wards serving the sectors that have signifi- sonnel, importing the raw materials, and the hope of integrating the value chain in cant roles in the Mexican export market, all these types of processes, allowing the Mexico. The industry needs to keep devel- including automotive, tourism, and indus- OEMs to focus on their operations while oping in order for employment to keep in- trial real estate for the establishment of these sheltering companies take care of ad- creasing, and for Mexican players to rise productive plants in Mexico. In addition, ministrative and legal aspects. Bancomext in the service sector of the aerospace in- Bancomext focuses on clean-energy initia- helps finance these sheltering companies. dustry. tives, the mining sector as well as logistics, Most of the companies that come here are transportation and aerospace. Our main What opportunities does the aviation in- huge multinationals that are not only in- goal is to ensure that there is a competitive dustry represent for Mexico? volved in aerospace, so we want to keep and efficient logistics infrastructure for FHU: In Mexico, the aviation story is now attracting these companies, but also give commerce in and out of Mexico. a modern and young one, whereas in Latin them the right framework to spread their America only four airlines control around wings and delve into the other sectors To what extent is Bancomext interested 60% of the market, in Mexico the market that can create employment and revenue and involved in aerospace? has a large component of fairly new air- for Mexico. Other players will be needed FHU: Bancomext’s involvement in aero- lines that started off as small niche players, as suppliers, which will eventually bring space has been indirect, specifically by but have grown significantly and increased in technology and advance the Mexican financing built-to-suit industrial parks and competition in the market. When compar- workforce and productivity. • plants where aerospace companies operate ing Mexico with Latin America, Mexico

MEXICO AEROSPACE 2016 - 18 - Industry Explorations Industry Explorations - 19 - MEXICO AEROSPACE 2016 MEXICO AEROSPACE 2016 GBR • Industry Explorations • MEXICO AEROSPACE

BAJA CALIFORNIA: AN AEROSPACE COMMUNITY 50 YEARS IN THE MAKING

“Biculturalism stemming from the United States and technical support from such proximate relations has proven especially conducive to continued investment and business in our state.”

- Tomas Sibaja, Executive President, The Aerospace Cluster of Baja California Image: UTC Aerospace Systems Image: UTC Aerospace EDITORIAL Global Business Reports Global Business Reports EDITORIAL

AN INTRODUCTION Mexico More than

TO BAJA CALIFORNIA companies and support organizations, generating about

Supplier of aircraft parts to the US jobs

Source: Proméxico Source: Proméxico

Baja California, the oldest and largest of Mexico’s aerospace hubs, The prevailing focus of the government is to develop a greater sources and communication. The only limitation is to cross the of the ‘Cali-Baja’ mega-region. However, through the strengthen- is home to almost a third of the total number of aerospace compa- presence of small and medium-sized companies engaged in the physical border.” ing of links between industry, government and academia Tijuana nies in Mexico. Located in the northeastern corner of the country, aerospace industry. Being able to offer more than just competitive labor rates is in and Mexicali have become competitive destinations not just for the state’s major advantage is that it shares a border with the Unit- It is this Cali-Baja term that is one the most commonly cited important factor in attracting large players to the State. manufacturing, but also more value added and complex processes. ed States, thus giving companies easier access to North American advantages of aerospace operations in the region. The so-called Gulfstream, a private jet OEM that is wholly owned by Gener- suppliers. Quick access to major ports and border crossings are mega-region, comprising of Southern California, Baja California al Dynamics, began its manufacturing operation in Mexicali in additional strengths. and to a certain extent , allows companies operating south 1983. Today, Gulfstream Mexicali employs over 1,600 people, a Design and Engineering in Baja California. Baja California’s 80-plus aerospace companies are located around of the border to source supplies from the much more developed workforce double what it was ten years ago. “Gulfstream Mexi- Tijuana and Mexicali, with smaller concentrations around the cit- and established U.S. aerospace sector while benefitting from the cali plays a significant role in the manufacturing process for Gulf- Despite the efforts of these international companies to undertake ies of Ensenada and Tecate. With 50 years experience in the in- low-labor cost and tax incentives available in Mexico. With a good stream aircraft,” said John Ortega, vice president and general man- more technology transfers from their headquarters, there is a gen- dustry, Baja California’s maquiladora program allows companies, logistics framework giving access to all parts of this region, col- ager of Gulfstream Mexicali. “The site’s employees make wiring eral reluctance from the global aerospace community to view Baja usually from the United States, to open manufacturing operations laboration between the two countries and businesses operating in harnesses, sheet metal components, subassemblies and machined California and Mexico in general as capable of providing reliable in Mexico for significant tax reductions. 70% of the aerospace both has flourished. “Cali-Baja Mega-Region initiative is some- parts that are used in the manufacturing process of Gulfstream’s design and engineering solutions. This reluctance means that it is companies established in the state have a direct relation with Cali- thing that has been in the works for about six years. The EDC is full fleet of in-production aircraft.” up to the international prime contractors that are already operat- fornia. “In 2015, we brought $2.5 billion of direct foreign invest- not competing with our counterparts, but rather we are comple- Ortega also notes that the ease of access to the U.S. is one of Baja ing in Mexico to promote Mexican capabilities to the world, as ment into the state, and are expecting to increase that figure next menting each other,” said Rigel Navarro, executive director of the California’s major competitive advantages over Mexico’s other they are the most aware of their capabilities. International players year,” said Carlo Bonfante, the secretary of Economic Develop- Tijuana Economic Development Corporation, a non-profit trade clusters. Honeywell, Eaton, and Hutchinson are all carrying out design and ment for Baja California (EDC). organization. “There is a very interesting flow of trade, human re- In Tijuana, Baja California has developed a specialization in elec- engineering work in the region. “OEMs are relocating to Mexicali tronics. Benchmark Electronics Tijuana was formed in 1985 and and Tijuana to carry out design work, e.g. Honeywell and Eaton today manufactures circuit card assemblies, subassemblies, box Aerospace respectively. The design work in Mexico is being driv- build, and very large scale integration. General manager Rod Gun- en by OEMs and not the contract manufacturer,” said Rod Gun- ther said: “Benchmark Electronics has designated its Tijuana facil- ther, general manager of Benchmark Electronics. ity to be its center of excellence.” Honeywell, the 11th largest aerospace company in the world in The biculturalism present in Baja California persuades sister com- 2014 in terms of revenues, has its largest concentration of global panies in the United States to export more complex processes to employees in Mexico and opened its first manufacturing facility the region. For instance, Switch Luz is the Mexican counterpart of in Mexicali in 1980. The company came to appreciate the innova- Electro-Mech, which manufactures joystick and switch- tion and intellectual capabilities available in Mexico and opened es and has been present in Baja California since 1966. Esterline’s the Mexicali Research and Technology Center (MRTC) to support presence in Tijuana further strengthens Baja California’s reputa- Honeywell’s global operations. In 2007, it started supporting the tion in the field of electronics engineering and design efforts of several component systems that Zodiac Aerospace, a globally recognized aircraft interiors com- go into Airbus’ A350. Honeywell’s Mexicali research facility is pany, has a facility in Baja California in addition to its operations on par with design centers around the world and is fast becoming in Chihuahua. The presence of international giants, however, does recognized as an important player in global aerospace innovation. not mean there is a shortage of opportunity for smaller Mexican The success of this center is due in no small part to the efforts of companies. Innocentro is a recently established interiors company its engineers. Honeywell MRTC worked with local university CE- in Mexicali. Roberto Corral, the company’s General Manager TYS to build a curriculum that was aligned with the center’s needs said: “The aerospace industry is moving towards lighter and more and today many of their engineers are sourced locally. convenient equipment.” Hutchinson is another international company that has capitalized Baja California is mature enough that it can be more progressive on Mexico’s available talent and has developed a strong engineer- in global trends. UTC Aerospace broke ground last year on a new ing team in Mexico over the past 10 years. The facility in Ensena- facility in Mexicali that is focused on composite bonding. Also da is currently working on a product for the 737 MAX that in Mexicali is GKN Aerospace Composite Structures, but general was developed with the help of its Mexican design team. President manager Loren Engel, expressed more tempered hopes for prog- and CEO of Hutchinson Aerospace and Industry in Mexico, Tad ress: “In terms of the engineers, the technical transfer is still chal- Shiner, said: “We have tapped into the hugely talented human re- lenging and we are still moving towards getting the right systems sources pool and as a company with a strong Mexican staff, we accessed.” want to promote to the world that our organization and engineers To summarize Baja California certainly owed its initial growth to from this country are as capable as those from the U.S. or Europe.” its proximity to the U.S. and still today benefits from being part Gulfstream also has a group of 30 employees who support engi- Image: Gulfstream Aerospace Corp. Mexicali

MEXICO AEROSPACE 2016 - 22 - Industry Explorations Industry Explorations - 23 - MEXICO AEROSPACE 2016 EDITORIAL Global Business Reports Global Business Reports INTERVIEW

neering needs for production and completion, while GKN ive pro business environment in order for year SEDECO is organizing the confer- Aerospace Engine Systems in Mexicali has a small, dedi- companies to have the confidence to - es ence in partnership with BCI Aerospace. cated engineering team but which does not currently design tablish here. Therefore SEDECO operates any aircraft products that GKN manufactures. However, through strategies and processes by which Can you talk about the relationship you general manager Ardy Najafian said: “We cannot rule out we promote these strengths to encourage have with the two clusters in Baja Cali- the possibilities of future strategic investments that may in- foreign investment. In 2015 we brought fornia and the relationship that they clude taking advantage of opportunities available in Mexico $2.5 billion of direct foreign investment have with each other? for design, development and engineering at a larger scale.” into the state, and are expecting to increase The two clusters, Mexicali and Tijuana, Smaller companies are also appearing in the Baja Califor- that figure next year. This will allow us should merge to form one cluster, which nia region and offering engineering services. Leyman En- to develop Baja California’s competitive- is something that I am working on. The gineering offers custom-made services in design engineer- ness, and attractiveness for companies to reasoning for having one cluster is simple; ing, while Spectrum Integrity collaborates with academia to establish themselves here – for example they would have much more strength and encourage the younger generation to participate in complex to offer companies a rate for energy that power. This way it will be simpler, and the defense projects. 10% to 20% cheaper than any other state message will be more representative and The state’s major private university, CETYS, is in the pro- in Mexico. We are also developing train- valuable for Baja California as a whole. cess of completing its Center for Innovation and Design ing centers in Tijuana and Mexicali, which (CEID), which is based on the Warwick Manufacturing In- represents a combined industry effort to Looking ahead, how does SEDECO stitute in the UK and the Arizona State University Polytech- create a better labor force. We also work hope to keep Baja California a competi- nic Campus in Chandler. The university, which offers a va- Carlo with federal funding offices to determine tive aerospace hub on an international riety of engineering and technology programs in Mexicali, how companies can qualify for available scale? Tijuana and Ensenada, wants to develop a talent pool that Bonfante Olache grants. Finally we operate offices in Lon- In the challenges that we are presented is more oriented to research and innovation rather than one don, Japan, San Jose and Mexico City, all with, we find opportunities for growth. that is focused on manufacturing engineering. The presi- of which allow us to continue the promo- The aerospace industry in Mexico has low dent of the university, Dr. Fernando León García, said: “We tion of Baja California. local and national supply chain integra- hope to achieve national and international recognition in tion, an many of the processes necessitate Secretary applied research and technological development supported How important is Baja California’s crossing and international border in order SECRETARIAT OF ECONOMIC by high level researchers and based on an agile and sustain- aerospace industry for both the state to be completed, as many of the supplies DEVELOPMENT (SEDECO), able linkage model with industry.” and the country? come from outside of Mexico. Even with BAJA CALIFORNIA The Autonomous University of Baja California (UABC) It is very important for a number of rea- the possible exemption of import/export has worked with Honeywell to develop an aerospace bach- sons. Most crucially employment, there taxes, the additional expense, time and elors degree. FLOR are 28 000 people employed within the logistics implications of such low-integra- There is also currently a shortage of engineers in the United Aerospace industry. Having a vibrant aero- tion-level processes open up an obvious States and companies north of the border should look to space industry also invites knowledge, and question: could the Mexican aerospace Mexico to fulfill their personnel deficits. Mexico produces innovation to the area which in effect will sector be more efficient through further more engineers per capita than the United States and Can- help us create a local supply chain, which supply chain integration? We believe that ada. This available talent is a major reason why companies will in turn help our economy. Currently so. Part of the state’s activities is to achieve should be confident in migrating processes that involve de- As the oldest aerospace cluster in the the percentage of integration that we have a better-integrated supply chain, includes sign and engineering to Mexico. Bazz Houston, a Califor- country, can you talk about its develop- on suppliers is from 3% to 4.5%, and by seeking opportunities for potential sup- nia headquartered company that manufactures small metal ment over the past fifty years? the end of our term we would like that to pliers. Aimed to these efforts, we planned components for the aerospace industry, has developed its Baja California has a 50-year-old aero- be 15% to 20%. events such as the Advanced Manufacture engineering team in Mexico through cross-training its per- space cluster, leading Mexico in the num- Meetings in early November at which will sonnel with its facility in Garden Grove, which is a two-hour ber of aerospace companies established in What is preventing there being a strong be the first one-to-one meetings platform, drive from Tijuana. The company now wants to leverage its the state, which represents 21% nation- base of local suppliers from growing and which connects decision makers with sup- engineering capabilities in Mexico to find new customers. wide. Our aerocluster is a diverse set of how is SEDECO hoping to change that? pliers in the advanced manufacturing and “We want to work with customers who value our engineer- aerospace companies, from single assem- Developing a local supply chain takes technologies sector. ing support,” said president and CEO Javier Castro. bly to those with more complex processes. time. We started by trying to create the em- With the continuation of the National Baja California possesses important strengths in its human Companies like Rockwell Collins, Chro- ployment base. Currently, there is a joint Aerospace and Defense Contractors Ac- capital and infrastructure. Above all there is a staunch will- malloy, Gulfstream, Honeywell or UTC effort between industry, government, and creditation Program and implementation ingness in the state to develop its design and engineering are the ones that have been here the lon- municipal economic development offices of the BASA, Baja California will likely capabilities in aerospace. The challenge now is to discard gest and represent important pillars to our to develop more favorable conditions to see growth in the sector. However, com- the stigma of being simply a manufacturing destination by industry. grow and develop suppliers. We are also petition inside the country is fierce, with promoting the success stories internationally. Honeywell Geographically, we are close to the United working with development and in- other states offering incentives in the form seeks to do just that and works with ProMéxico to show- States, and importantly next to California, ternational banks to support with the capi- of tax exemptions and reductions, as well case the company’s success in design and engineering in which is one of the seven biggest econo- tal required. Furthermore, SEDECO man- as a lower land cost. Nevertheless, Baja Baja California. Baja California’s, and Mexico’s in general, mies in the world. This has allowed us ages the annual Advanced Manufacturing California will continue to be a prime lo- advances into the fields of design and engineering bring the to increase employment in the area, and show, which offers a platform for original cation for aerospace, partly due to its his- country a step closer to being a destination that may one day to develop a local supply chain. We have equipment manufacturers and small and tory, advances in education/industry, and address the full life cycle of an aircraft. • to grow and develop a clear and support- medium-sized enterprises to interact. This the availability of a trained workforce. •

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growing our aerospace cluster in Baja Cali- that it is better served for promotional entities Can you please introduce us to Gulfstream Excellence for its focus on lean manufac- fornia. In the 1960s, Mexico partnered with or government agencies. and provide a brief history of the group’s turing and elimination of waste. It has been its northern neighbor, the United States, in its operations in Mexico? named among the 100 Great Places to Work new capacity as the country’s supply manu- What challenges do companies in Baja Gulfstream Aerospace Corp. designs, de- in Mexico for the past four years. Gulfstream facturing base, mostly in the northern Mexi- California face? velops, manufactures, markets, services and Mexicali was named the 12th Best Place to can states at the border. California with the Today, the aerospace supply chain requires supports the world’s most technologically Work in Mexico for 2015. 7th largest defense and aerospace fleet in the more small and medium-sized companies advanced business-jet aircraft. The compa- world located minutes away from our border in the market, and the school should require ny, based in Savannah, Georgia, is a whol- What are the key advantages that Baja here in San Diego did its part stimulating Ba- more involvement from the industry in their ly owned subsidiary of General Dynamics. California offers to Gulfstream and the ja’s aerospace production, and eventually led educational programs. It is not easy to sub- Gulfstream, which has more than 16,000 em- global aerospace community? to an ecosystem of five major aerospace seg- stitute or change global suppliers for our ti- ployees, has built more than 2,400 aircraft for According to a 2012 George Washington ments currently active: commercial aviation, er-one and tier-two companies. New entrants corporations, governments and individuals University study, Baja California has more defense, space, unmanned aerial vehicles and should be supported during the entire process. around the world. In 2014, the company had than 40 years of experience in the aerospace maintenance, repair and operation services. In Schools also require more involvement from 150 outfitted customer deliveries. Its backlog industry. The study indicates that the state’s fact, the first aerospace company establishing our industry in their educational programs. at the end of 2014 was $13.23 billion. large concentration of aerospace companies a presence in Mexico did so in Baja Califor- We need to start providing content aimed at Gulfstream began its manufacturing opera- is due mainly to the supply chain proximity nia in 1966. The Aerospace Cluster of Baja technical training institutes and engineering tion in Mexicali, Baja California in 1986. to California and Arizona and the availability California started officially in 2006 with the areas that demand particular base-knowledge The workforce has doubled in the last 10 of a strong labor force. The study adds that Tomas idea to improve inner relations amongst com- in the field, for example. John years to more than 1,600 employees. The size Baja California has a big competitive advan- panies located here. of the current Gulfstream Mexicali facility is tage over other Mexican states in terms of Sibaja The task was at times discouraging. The aero- As Baja California’s aerospace industry Ortega 335,000 square feet (31,123 square meters). infrastructure (highways connecting Mexico space industry moved into the region solely matures beyond the traditional maqui- What role does the Mexico facility play for to the United States, major cargo seaports, in- market-driven by convenience of location. ladora program, what will be the role of Gulfstream’s overall global manufactur- ternational airports, railway services and di- There was no coherent industrial policy spe- design? ing operations? rect border crossing sites, with several ports cialized per sector showcasing the advan- Honeywell MRTC Center is a great example Gulfstream Mexicali plays a significant role of entry to the United States). Executive President tages of being under a cluster initiative. The of how Baja California’s young talent is be- Vice President and General Manager in the manufacturing process for Gulfstream AEROSPACE CLUSTER OF cluster term was more commonly known as ing leveraged to incorporate design into the GULFSTREAM AEROSPACE aircraft. The site’s employees make wiring Can you discuss how Gulfstream collabo- BAJA CALIFORNIA a concept in research education than as an aerospace field. Leyman Engineering is a pri- CORP. MEXICALI harnesses, sheet metal components, subas- rates with local academic institutions to active organization in the field. The industry vate firm offering custom-made services in semblies and machined parts that are used in support its human resources needs? knew better flying solo following the trails of design engineering. Catia and Solid-Works the manufacturing process of Gulfstream’s Gulfstream Mexicali pays for employees to competitors or clients to their business, why also offer training courses to a young cadre of full fleet of in-production aircraft (G650/ pursue training and academic degrees at a lo- bother with an extra layer of data provision? people interested in offering third-party ser- G650ER, G550, G450, G280 and G150). cal college, CETYS Universidad. Employee Nonetheless, we succeeded. vices with an entrepreneurial base. Spectrum family members are eligible for CETYS Uni- Integrity also collaborates with academia to Could you provide details about the facili- versidad scholarships sponsored by Gulf- What strategic advantages does Baja Cali- groom young kids to participate in complex ties, equipment and certifications that are stream Mexicali. How has the aerospace cluster in Baja Cali- fornia offer? defense projects. Our mission now is to show supporting your Mexican operations? fornia evolved to become the most impor- As the northernmost state in Mexico, Baja that Baja California and Mexico can operate As mentioned earlier, Gulfstream Mexicali is How is Gulfstream Mexicali growing its tant region for aerospace production in the California shares its border with a strategic in the field of design. a manufacturing facility. We do not provide capacities in design? country? ally, California. More than 70% of the aero- details on the specific equipment used there. Gulfstream Mexicali has a design group Michael Porter coined the “clustering” theory space companies established in our state have What goals do you have for the growth of However, we would like to note the continu- of 30 employees who support engineering in the early 1990s in his book The Competi- a direct relation with California. Additionally, Baja California’s aerospace industry? ous improvement culture found through- needs for production and completions. tive Advantage of Nations and reinforced this biculturalism stemming and technical support Firstly, the active collaboration, exchange out Gulfstream, perhaps no more so than at notion in an article published in the Harvard from such proximate relations has proven es- of information, and sharing of best-business Mexicali. What are Gulfstream’s major goals for the Business Review in 1998, ‘Clusters and the pecially conducive to continued investment practices is the way forward. As one of the Employee involvement is encouraged along coming five years? New Economics of Competition’. Mr. Porter and business. In an increasingly globalized leading clusters in Mexico in the aerospace with the incorporation of lean tools and phi- Gulfstream Mexicali will be instrumental in encouraged companies from a given indus- economy, we are experiencing more visiting sector with strong ties to clusters abroad, losophies into ongoing processes at the site: the manufacturing of our newest aircraft, the try in close proximity to benefit with suppli- companies from all over the world, but we we want to showcase our Mexican strengths manufacturing, engineering, business-sup- wide-cabin and long-range G500 and G600, ers of specialized inputs such as components, have to offer more than proximity to welcome and business opportunities that benefit the port activities and management. producing wiring harnesses, sheet metal machinery, services, and providers of infra- complex projects. Location is a great value, global industry. Rather than competing with A culture of continuous improvement em- components, sub-assemblies, and machined structure - including academia and stakehold- if offered with a value proposition well struc- other clusters abroad, we want to clearly ar- powers all employees to submit ideas that parts. The G500 is scheduled to enter ser- ers. This way, larger and smaller firms could tured and saleable. For example, while other ticulate our capabilities and strengths to the make their job easier, foster a more innova- vice in 2018, while the G600 will follow in experience collective benefits. This idea was clusters offer labor, land, and logistics, mem- international market. In this way, we will be tive work environment and transform their 2019. • not specific to the aerospace industry, and has bers of our cluster are actively engaged in better equipped to strategically serve origi- abilities, capabilities and knowledge. been adopted in many countries across vari- collaborative efforts at different levels of pro- nal equipment manufacturers, based on their In 2004, Mexicali employees submitted more ous sectors. duction or specific market requirements. We specific competencies and requirements. The than 500 ideas to improve the site’s process- The development of this type of cluster, along have various cluster-wide initiatives and proj- Aerospace Cluster of Baja California should es. By 2008, the submissions grew to nearly with an accompanying mindset of competitive ects and operate truly as a cluster value shared be identified as a tool of global efficiency and 34,000. In 2009, Gulfstream Mexicali was collaboration, has been an effective means of offer, rather than a generic promotional tool expertise in the aerospace sector. • awarded the Shingo Prize for Operational

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nology Center is focused in four main products. This is the first time that a tier- equipment manufacturers such as GE, Pratt Before selecting Mexicali we explored sev- COEs. The first is design and development one supplier had done this for the aerospace & Whitney, and Rolls-Royce through our fa- eral other regions in Mexico, but eventually of products. The second is the design and industry. MRTC is a one-of-a-kind facility cilities across the world. settled on Baja California, as it was closest development of testing solutions. The third across the global aerospace footprint. to our operations in San Diego. The city of is a systems-integration laboratory (SIL), What was behind the decision to expand Mexicali was chosen over Tijuana for two and the fourth is a global business center. How do collaborate with local universi- to Mexico? reasons. The first was the ease of - logis Over 70% of the more than 500 employees ties to foster the talent pool? The decision to expand our aerospace opera- tics. Even though Mexicali is further away at MRTC come under the umbrella of the When we opened in 2007, 70% to 80% of tions to Mexico was twofold. We were en- from San Diego, the ease of border cross- engineering and technology business unit. our employees were from cities like Gua- couraged by our customers to have access ing and better infrastructure offered a faster dalajara, Querétaro, Mexico City, and Mon- to emerging markets and cost-competitive and more secure means of transporting our Can you provide the key reasons why terrey because these were cities that were regions to ensure that we, as a tier-one sup- products. The parts that we manufacture are Mexicali was chosen as the location for home to the talent that we were looking for. plier, would be able to continue offering very large and extremely expensive so this this COE and the role that it is playing in Unfortunately we found retention difficult. services at required aggressive cost-com- was important. The second reason is that the global aerospace operations? We therefore began to work with local uni- petitive rates. Then it was GKN Aerospace workforce is more stable in Mexicali than Mexicali was chosen for several reasons, versities to build a curriculum aligned with Engine Products West’s initiative to explore other border towns within our region. We the key one being the availability of a tal- our needs and so be able to source engi- opportunities for improved cost and gross examined that Tijuana due to its fine loca- ented workforce in the region. There is cur- neers locally. With CETYS University, we margins contributing to the future success tion and friendly climate has a tendency to rently a shortage of engineers in the United created a master’s degree in aerospace engi- and competitive advantage of the company. cater to a more transient and touristic popu- Ricardo States, so the MRTC was part of Honey- neering and at UABC we helped launch an Ardy lation, which was a concern for us. Finally, well’s strategy to tap into those regions aerospace bachelor’s degree. We have also Can you provide details of the process despite the city’s large size, there is excel- García offering young talent that can support the embarked on a joint venture with the latter Najafian that GKN underwent to ramp up business lent business communication between the aerospace industry. A second reason is the to create a materials laboratory. in its Mexicali facility? industry, government, academia, and sup- proximity of Mexicali to Phoenix, Arizo- Unlike many of the large players here in port organizations. na and Torrance, California. Respectively, What obstacles prevent Mexico from Baja California who came in with a large these states are hubs for engines and aux- shifting from a manufacturing hub to a upfront investment, GKN Aerospace de- Can you provide an overview of some of Director of Engineering and Technology General Manager iliary power units, and environmental con- destination for engineering? cided to start with a small operation. It was the projects that GKN Aerospace in Mex- HONEYWELL AEROSPACE, GKN AEROSPACE ENGINE trol systems. A third reason would be the It is a combination of several factors. Mex- important for us to first be able to offer the icali is currently working on? MEXICALI RESEARCH AND SYSTEMS, MEXICALI synergies and collaboration that we could ico has still to discard its stigma of being competitive quality in Mexico in compari- We are playing an important role in a num- TECHNOLOGY CENTER achieve by being next door to our manufac- simply a manufacturing destination, which son with our main facility in El Cajon Cali- ber of new aircraft and engine programs turing operations. is perpetuated to a certain extent by the fornia. Our first site was a 20,000-square- under development. Our military and com- maquiladora environment. There is also foot building with five machines and 15 mercial portfolio is well balanced and we are Are you able to provide a case study of a still international skepticism as to wheth- people. Early on, it was clear that the quality on all the right programs with future growth recent defining project? er Mexico has everything that a company coming out of this facility was very much such as 787, 747-8, 737Max, 777X, A320N- The is a good example. Mexi- needs to establish an engineering-oriented comparable to what was being produced in EO, A350XWB, A380 and F35-Joint Strike cali, and Mexico in general, is playing a key operation. the United States. Therefore, we began to Fighter. Our current products also support Can you provide an overview of Honey- role originally on the development and now Can you introduce GKN by providing a ramp up business by adding more machines, programs such as 767/777/A320/A330/F15/ well’s history in Mexico’s aerospace in- in supporting the aircraft in the market by Do you have a final message? brief overview of the company’s history products, and machinists/engineers. I was F16/V22/F22 amongst others. dustry? making sure it meets the demands of Air- It is evident that Honeywell Aerospace and in Mexico? brought on as general manager in 2005, Honeywell as a corporation has been in bus’ customers. In 2007, the MRTC started Honeywell in general has been successful GKN (Guest, Keen, Nettlefolds) was found- and my first task for the site was to obtain Do you have a final message? Mexico since 1947 and has more than supporting the engineering and design ef- in Mexico and in Baja California. The coun- ed in England in 1759. It has been around AS9100 certification, which we achieved in We consider GKN Aerospace operations 17,000 employees spread over three busi- forts of several component systems that go try possesses three important strengths: a for more than 250 years and has reinvented 2006. As business grew, we expanded our in Mexico a very successful story and con- ness units: aerospace, automation and con- into the A350. We had a lot of influence on wealth of young talent, good infrastructure, itself as a global leader in the engineering facility to 45,000 square feet. At this point tinue to leverage opportunities and invest trol solutions, and performance materials the design of several components systems and above all a communal willingness to and manufacturing of high technology and we were producing enough parts at the right here. However, being successful in Mexico and technologies. Today Mexico represents for this platform. Once we started moving progress. The challenge that needs to be ad- complex products. GKN’s aerospace divi- quality and competitive price that we be- requires a good knowledge base of all dy- the second largest concentration of Honey- into the development stage, our systems dressed is supply chain development, which sion is split between Engines and Aero- came a significant strategic site for GKN namics revolving around the availability well employees globally. Our involvement integration laboratory (SIL) was a key en- can only be overcome if a collaborative ef- Structures products with 61 sites in 15 coun- Aerospace Engine System’s division. In and sustainability of qualified and trained in aerospace began in 1980 with the manu- abler for a smooth and successful testing fort is made. There are high-entry costs for tries on three continents. GKN has over 30 2008, based on our track record and the divi- resources. It also demands investment in facturing facility established in Mexicali. It campaign for the A350. The SIL is a test a local company to be considered a viable years of experience of operating in Mexico sion’s strategic plans, we expanded to a new understanding the local culture, language, is a center of excellence (COE) for environ- bench where we received several compo- supplier to the aerospace industry. What is though our automotive facilities in Celaya. 155,000-square-foot facility in the industrial training, coaching, and sharing knowledge mental control systems and components; it nents and systems that go into the A350, not lacking at the moment is a long-term strate- Our aerospace footprint in Mexico includes park PIMSA. Over the years we have trans- along with being able to leverage available also has a strong footprint in the production only from Honeywell sites, but also directly gy. The government should not attract com- four sites across three states. Two sites are ferred more products that fit our strategy and support systems within Mexico to create of power-generation components for air- from Airbus and other Airbus suppliers. We panies simply because they are aerospace in Mexicali, one in San Luis Potosi, and one processes from our North American opera- your own recipe of success. The most chal- craft. brought all those systems together in a lab companies. Rather they should have a clear in Chihuahua. Our Mexicali metallic facility tions and have achieved our growth expecta- lenging issue for the industry’s growth in the under a controlled environment and made idea of what Mexico can offer and tailor falls into the engine systems business seg- tions year-over-year. next decade will be how industry, govern- Can you introduce the Mexicali Research sure that all were going to work as one sin- their approach to companies that match this ment of GKN Aerospace, and we are part of ment, and academia join forces to create the and Technology Center (MRTC) and gle cohesive system. In doing this we were strategy. Once this is done, there is no doubt GKN Aerospace – Engine Products West, What strategic advantages did Mexicali infrastructure and ecosystem to supply the highlight its main areas of focus? able to proactively identify the required that Mexico will succeed as a key player on headquartered in El Cajon, California. Our offer over other aerospace clusters in required resources for the demand of our in- Honeywell’s Mexicali Research and Tech- design changes to Honeywell and Airbus the international aerospace stage. • products reach the prime engine original Mexico? dustry and its local suppliers. •

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being designed internally here. Currently that starts these engineers as ‘interns’ and ing substantially, as there are not too many nocentro is working towards? our facility is 90,000 square feet, with a ultimately hire the best qualified. It is im- companies that do specialty work on spe- SS: One of the major challenges that In- staff of 330. portant to note again that our engineering cific parts of aircrafts. nocentro has experienced over the last 10 team members are as bright and talented Innocentro’s core competency does not years is the change in the market. The mar- Does the Mexican aerospace market as any engineers I have worked with dur- only come from the engineering side, but ket has constantly been evolving bringing

present an opportunity for growth? ing my career. RC BJ has transferred to the manufacturing side. in newer materials and certifications. Op- The majority of our products are exported The company is starting to build its own erating in a non-FAA country, Innocentro to the United States, but we have on-going Do you see Ensenada playing a more brand in terms of manufacturing, and the had to be able to adapt our processes as to projects with Eaton Aerospace in Tijuana prominent role in Baja California’s brand is called Ingeniom. comply with new requirements. and SNECMA in Querétaro. These proj- aerospace industry? BJ: Innocentro has full metal shop capa- Innovation is very important in the aero- ects are in support of Boeing and Airbus Ensenada needs to do more to promote bilities. The company has CNC machin- space industry. Currently everything is aircraft. itself to be recognized alongside Tijuana ing of all metals, lasers and sheet metal pointing to passenger experience. Inno- and Mexicali, and we are working with SS punch and bending equipment. Innocen- centro wants to keep up with the trends How have you found the process of the Baja California Aerospace Cluster to tro has a significant amount of experience as to meet all the needs and requirements product transfer? achieve this as well as attending crucial in making parts in different materials for of our customers. We want to prove how This process certainly has its challenges, events. There are many opportunities for airplanes as the company has been in the a small agency can satisfy the end user as with any transfer projects. We have two companies here, and the available talent is aerospace industry since day one. Innocen- experience with our services. This can be teams in Mexico and Europe that coor- a significant strength of the area. tro is very aware of all of the requirements proven by reducing weight, costs and engi- Tad dinate the transfer activities and require- Roberto Corral, for AS 9100 and certification. The -com neering time while still delivering quality ments. We also involve the customer and What is your strategy for achieving pany mostly does contract manufacturing products and services. Innocentro tries to Shiner make sure there is constant dialogue be- your projected 100% growth over the Bill Jordan & and most of the manufacturing is done in keep up with trends and we are constantly tween all three parties. Once that commu- next two years? Mexico. As Innocentro complies with U.S. being innovative. The aerospace sector in nication is in place, we can begin the pro- Winning new programs will be key, in- Sergio Segura standards, it can subcontract manufactur- Mexico is conducive for design. cess of developing the right plan based on cluding products used on the new Boe- ing jobs to North American companies. customer requirements from Europe to our ing, Airbus, Gulfstream, and Bombardier What are some of the key strengths that President and CEO RC: General Manager Mexico factory. We are currently working aircraft. This will help us achieve the high What is Innocentro’s strategy for defin- Mexicali offers as a destination for the HUTCHINSON AEROSPACE BJ: Operations Manager on a product for the Boeing 737 MAX that goals we have set ourselves. There is still ing the product portfolio and what is the aerospace sector? AND INDUSTRY, MEXICO SS: Quality Manager was developed in Europe with the help our a vast amount of opportunity in the United INNOCENTRO LLC company’s added value with this range BJ: In this city, people like to work and Mexican design team and is now in the be- States that we can benefit from. of products? want to work as to improve their lives. ginning phase of transfer to Ensenada. RC: Innocentro LLC just created the Inge- Due to this the city has major opportuni- Do you have a final message for our niom brand. The company intends to target ties. In Mexicali, there is a very stable and How have you incorporated design into readers? the customers that we already have a good skilled population. There are also numer- your operations in Mexico? It is an exciting time for Hutchinson aero- relationship with. Innocentro is no longer ous engineering training institutes and This is something that we had to develop space in Mexico. We are just at the begin- going to subcontract manufacturing, but the government is putting in a significant because it did not exist in our organiza- ning of our five-year plan and are set to rather evolve our own branding. The strat- amount of money towards investing in its Can you give us an overview of Hutchin- tion. Our engineering team has become make a considerable contribution to Baja Can you give a brief introduction to egy for 2016 to 2017 is related to our inte- own people. son’s operations in Mexico and the role successful and stronger over the last ten California’s aerospace industry. We have Innocentro and the company’s involve- riors repair/assembly cell. Innocentro will RC: Mexicali and Tijuana both have spe- this facility is playing? years This is something that takes time, tapped into the hugely talented human ment in aerospace? have a strategic alliance with a company cializations that have paved the way for Hutchinson is of part of the French oil and I am proud of the team that we have resources pool and as a company with a RC: The original company was estab- in Singapore and will interchange our two the aerospace industry over the years. Be- company, TOTAL SA Oil. There are three created. As part of this process, we have strong Mexican staff, we want to promote lished 13 years ago and in 2014 the com- companies’ expertise. From there on, In- tween the two clusters, there is a signifi- Hutchinson sites in Mexico, but this is the sent our Mexican engineers to Europe to to the world that our organization and en- pany became Innocentro LLC. Innocentro nocentro will build a shop in Mexico, of cant amount of advantage for the state as only one focused on aerospace operations. gain experience and bring the knowledge gineers from this country are as capable as is a Mexican company that can offer vari- which part will be a repair station. a whole. Tijuana has more companies em- The four main groups of products within back to Ensenada. those from the United States or Europe. • ous services and skills to the aerospace in- A repair station is an airworthy, caged area ploying fewer people with niche capabili- Hutchinson aerospace are thermal insula- Most of our customers support this trans- dustry. It is making progress in relation to authorized by the Federal Aviation Author- ties, while in Mexicali you will see larger tion, fabric, mechanical sealing systems, fer, and we have not encountered much cabin interiors, offering solutions for the ities (FAA) through Mexican authorities, companies with a more in-depth knowl- and structures. Our facility in Ensenada resistance in bringing design into Mexico. equipment mounted on the galleys and gal- which is called DGAC. The authorization edge base. is AS9100- and NADCAP-certified, with They have found it favorable to be dealing leys themselves. The aerospace industry is can take as long as six to nine months and customer approvals including Bombardier, with someone in the same time zone. Most moving towards lighter and more conve- is very costly. It is worth having a repair As these two clusters have evolved, Boeing, GE, Honeywell, Triumph, UTC of our engineers speak English, which is a nient equipment. All the materials used in station as Innocentro will then have the au- what are your observations on the local and Gulfstream. What separates us from requirement to do business with U.S. en- this industry need to be certified and thus thority to repair different parts of aircrafts growth of the supply chain? other maquiladoras in Baja California is gineers. all the designs have to make sense. in regards to interiors. Innocentro believes BJ: The local suppliers are growing but, in that we are completely self-contained, in- Aerospace offers significant opportunities, that repairs will be growing at a very fast order to sustain a very large manufacturing cluding design and development of new How have you worked to develop the as there is equipment that can be reused, rate, as the slowdown in the economy is push in development, more still needs to products. This facility has seen substantial young talent in the area? refurbished and retrofitted. Retrofits are making people hesitate to buy new equip- come. Over 95% of supplies are still im- growth over the past three years, and we Hutchinson is working with local universi- becoming the focus, as one does not need ment. ported. If we want Mexico to grow a local- expect to double in size again over the next ties in Northern Baja to find talented engi- a huge factory with thousands of people. ized supply base, it has to be driven by the two years and our product line to grow by neering students who are skilled on CAD They are the core of the MRO industry. In terms of research and development, large OEMs and tier-one companies. • 300%. We are developing projects that are systems. We have developed a program In Mexico, this industry has been grow- what are some of the major trends In-

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Dr. Fernando What are the strategies and processes by which CE- TYS is establishing linkage with industry? León García While we continue to work with key individual indus- tries, we are increasingly focusing our work on the main clusters in the region. An organized cluster makes the linkage process with industry more strategic in reach and impact. With regards to the aerospace industry in Baja California, we are working with the leading com- panies in Mexicali and Tijuana, trying to take this col- laboration to a new level, and ensuring that the needs of the cluster are better addressed and more seamlessly integrated. In the area of engineering, we are focused on Can you introduce CETYS by providing learning outcomes into our programs: en- six industry clusters and working with each to identify President a brief overview of the university? trepreneurship, linkages with industry and their needs. For example, with the aerospace industry CETYS UNIVERSITY CETYS is a private university that was business, internationalization, information we are seeing a current need for design and engineer- founded in 1961 by business and industry literacy, social responsibility and sustain- ing. From here we can take these elements and incor- leaders who envisioned a high-quality in- ability. CETYS currently serves a total of porate them across our academic programs and find stitution for talented youngsters from Baja 7,200 students across the state and hopes commonalities. CETYS is constantly making efforts to California who would otherwise migrate to grow to 8,000 by 2020. We are inten- reorganize and look at how we can better collaborate. to other regions in Mexico. Today the uni- sifying and reorganizing our interaction We recently met with Honeywell who shared with us the versity is governed by more than 100 of with business and industry by focusing on long-term vision for its facility in Mexicali and, accord- Baja California’s business and industry three themes through each of our colleg- ingly, we can incorporate into program enhancement leaders, is ranked among the top-ten pri- es: competitiveness and entrepreneurship and training of current and future engineers, as well as vate universities in Mexico, and is only (business), innovation and design (engi- applied research and problem solving projects. We also one of eight universities in Latin America neering), and human and social develop- work closely with SEDECO so we can learn first hand with U.S. accreditation. The aspiration for ment (social science and humanities). This what changes may need to be made. CETYS has always been to contribute to will help us be more active and in tune to the economic, cultural and social growth what is happening in business, industry To what extent does this dialogue go both ways and of the region. In addition to instilling hu- and society. what influence will academia have on the direction manism and values across the curriculum, of industry? we emphasize six key, distinctive, CETYS Can you provide more details as to the Through our dialogue with industry we always offer an type of engineering formation that you initial diagnosis as to where we believe they are headed, offer and how the curriculum is de- establish a process by which we can guide them, and fined? identify priority areas to work on. What we have seen Through our college of engineering we is that companies such as Honeywell, Gulfstream, and offer a variety of engineering and tech- UTC are looking at either larger more sophisticated op- nology programs in Mexicali, Tijuana, erations or enhancing and expanding current operations and Ensenada that are closely linked to based on what they see the region can deliver particular- regional industry including the extensive ly with regards to human capital. The soon-to-be-con- presence of multinationals. Through our structed CEID is based on a very intense and close-knit Center of Excellence in Innovation and interaction between industry and the university. CEID Design (CEID), based on the Warwick will have an area to accommodate eight to 12 projects Manufacturing Institute in the UK and that will be based on and dedicated to solving actual in- the Arizona State University Polytechnic dustry problems. Campus in Chandler in the United States, we aim to generate knowledge and human Do you have a final message for our readers? capital in innovation and design fields of Based on the recent accreditation in the United States engineering with the purpose of increas- of our first engineering program by the Accreditation ing the competitiveness and economic de- Board on Engineering and Technology (ABET), CETYS velopment of the Baja California region. aims to be by 2021 the best institution in Latin America, Furthermore, we hope to achieve national offering engineering programs with focus on innovation and international recognition in applied and design, with the same aspiration for our MBA, with research and technological development a focus on entrepreneurship. We intend to raise our col- supported by high-level researchers and laboration with industry in the region to new levels that based on an agile and sustainable linkage will support the continued and strategic development of model with industry. key clusters, in particular the aerospace industry. • Image: CETYS - Center of Excellence in Competitiveness and Entrepreneurship

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DEVELOPING BAJA CALIFORNIA’S LOCAL SUPPLY CHAIN

Baja California’s aerospace ecosystem still resembles an inverted pyramid, with gaps being identified in special processes and non- destructive testing. More support for suppliers will be required, including government funding and learning from the experience of other companies in the cluster. “It is not easy to substitute or change global suppliers for our tier- one or tier-two companies,” said Tomas Sibaja, president of the Aerospace Cluster for Baja California. “Therefore, if we want to submit more [local] candi- dates, these new companies should be supported during the entire process.” Developing a local supply chain has been impeded somewhat by the easy access to suppliers in the U.S. Many processes, includ- ing heat-treatment and non-destructive testing, are still mostly outsourced to the United States, but Eduardo Solis, sourcing and global offset manager for Eaton Aerospace in Tijuana, believes the environment is right to start localizing the supply chain. So- lis has been tasked with having 50% of expenditure on materials for [the Tijuana] facility sourced in Mexico by 2020. “Eaton are very active in encouraging the growth of SMEs operating in the aerospace industry in Mexico not only for its own needs, but also to ensure the country’s industry as a whole increases it competi- tiveness.”

One strategy being taken is to entice suppliers that are located Image: Goodrich, Riquelme y Asociados (Goodrich) not far north of the border to take advantage of the growing busi- ness and competitive labor costs of Mexico. BAP Aerospace, a Alliance] wants to create an ecosystem by which the common from prime contractors to help develop local SMEs. “In order for es and a more robust logistics framework. However, a number Los Angeles based company, expanded to Baja California to meet processes required by the aerospace industry will be available to there to be a sustainable aerospace industry in this region, OEMs, of distributors from north of the border see moving to Baja Cali- the plating needs in the aerospace industry. Their president, Cruz all. To achieve this it will again be a case of greater leverage of tier ones and twos must do more in the way of aiding SMEs to fornia as a stepping stone to serving Querétaro and the south of Maldonado, said that companies were more willing to seek plat- government funding.” integrate themselves as suppliers,” said Anodimex’s president, the country where access to raw materials is more challenging. ing services locally from BAP because the company is “a widely Government funding is available through a number of schemes Roberto Limon. “If this does not happen Baja California will not Three distributors that are now serving the aerospace needs in known name and has a reputation of delivering high quality ser- but it seems that access is not that easy or companies are simply be able to remain competitive on a global scale. There must be Baja California are Ryerson, Castle Metals and Coast Aluminum. vices.” unaware of the availability of such funds. more in the way of communication throughout the whole supply “To develop a local Mexican supplier to be at the level able to For the local companies once again certification a major -chal One local company that has been successful in achieving certi- chain.” serve the aerospace sector is a process that can take years.,” said lenge. However, to be competitive against suppliers in the U.S. fication is Anodimex. Anodimex, a Tijuana-based company that One aspect of the aerospace supply chain that has been highlight- Angel Torres, general manager of Ryerson Tijuana. “The industry this is essential. But for companies to achieve this they need fi- offers anodizing services, recently attained NADCAP certifica- ed by companies as needing addressing is raw materials. In Baja in Mexico is behind in this sense either in being able to develop nancial support. Ardy Najafian, president of the Aerospace Alli- tion. The company was lucky enough to have strong support from there is not as much of an imperative to achieve this as Baja’s local sources or to have U.S. vendors open facilities here. I think ance of Baja California, a non-profit civil association that repre- Zodiac and so was able to achieve this. Similar to the thinking in closer proximity to the United States lends easier access to raw though that the cluster is working hard on resolving this and I sents Mexicali based aerospace companies, said, “[The Aerospace Querétaro, Anodimex believes that there should be more support materials. Companies further benefit from swifter border process- believe it will change.” •

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one dedicated to the aerospace business. fornia go through an intense learning curve ditions and currently there are five sites stability of the city in terms of lower crime The operation was started in 2006, is in and process of establishing its reputation as within the group. The site in Mexicali was rates and the strong work force is also an a 282,000-square feet facility, and has a a destination for aerospace, during which established in 2012. advantage. workforce of 600+ people. The three main the region was not in a position to be sup- The Mexicali site was strategically estab- product lines manufactured here are duct- porting local suppliers. However, now the lished to be a competitive enabler for GKN Can you elaborate on the strategy of ing for high and low pressure applications, environment is right, and Eaton’s Tijuana aerospace. The aim was also to help the knowledge and technical transfer that assembly of solenoid valves, and assembly facility is in a position to start significant- original equipment manufacturers in their GKN has undergone and how successful of fluid distribution components (hoses, ly localizing its supply chain into Mexico. pursuit of the Mexican market in providing this strategy has been? fittings). The majority of the components Our task for 2020 is to have 50% of our off set credit to these companies. Current- GKN has a lean operation in terms of in- manufactured at this site are shipped to spending on direct materials for this facil- ly, the Mexicali site is qualified for doing direct to direct. The company has 110 other Eaton Aerospace facilities to inte- ity sourced into Mexico. defense work and most of the work being employees and only 15% of the employ- grate shipsets for customers. The Eaton done is U.S. military work. ees is on salary or indirect. The transfer Aerospace Tijuana facility is positioned as What are the major challenges in achiev- of knowledge has been largely from the a center of excellence for ducting solutions, ing this? Can you elaborate on GKN’s facility, technical staff in Alabama in terms of sup- and today is one of the best facilities world- One is the aerospace business model. The the equipment, and the certifications porting and training in product and process wide for Eaton Aerospace. industry is high-mix and low-volume; that the company has? knowledge. This transfer of manufacturing companies need to be able to absorb busi- In terms of the physical facility, GKN know-how in order to successfully build Where have you identified gaps in the ness in this scenario, which implies not has 80,000 square feet that the company product has been very successful. One area Eduardo human resources chain in Mexico? only the machines and technology, but also Loren leases on a long-term basis. Before the that has been a challenge for us is provid- Over the last ten years Mexico has received having the technical talent to be able to de- facility was started, a workshop with the ing our engineering staff with the access to Solis more aerospace FDI than any other country velop multiple part numbers. Second, is the Engel landlord and the contractor was held as to technical data in GKN systems that they in the world. Last year, we exported $6.4 implementation of a AS9100 certified qual- determine the requirements for the site. need to do their jobs. The issue has been billion in aerospace business. However, ity system or in the case of special process- Within two days, the site was laid out, and how to give our engineers access to the around 60% of this was material and less es (chemical processing, thermal process- the company decided to lease the whole data for which we have export licenses in than 10% of that was purchased in Mexico, es, welding, non-destructive testing, etc.) 80,000 square feet and grow into the space place while preventing access to data for Sourcing/Global Offset Manager General Manager which illustrates the significant gap in our a NADCAP accreditation, and this is only in two phases. customers and product for which we do EATON AEROSPACE GKN AEROSPACE COMPOSITE local supply chain. In a sustainable aero- the entry, since in cases several customer In terms of certifications, the first priority not have licenses. GKN is in the process of STRUCTURES space industry, a pyramid is formed from approvals are required in top of AS9100 was to get ISO 9000 and AS 9100 certifi- testing an ITAR compliant version of our a wide base of small- to medium-sized and NADCAP. Of course this has meant cations. GKN earned these in 2013. As of MRP system that will allow the company suppliers above which you have a smaller that the process of bringing on a new sup- March 2015, the company also has NAD- to have better technology transfer to our number of tier-one and tier-two compa- plier in Mexico is extremely slow, in part CAP certification, which is very -impor engineering staff. nies and then at the top the original equip- also, due to all the validations required to tant in any aerospace business, especially ment manufacturers (OEMs). In Mexico, put our parts in the air. Another major chal- in composites. Earning certifications are Does GKN source supplies locally? this is inverted; we need more in the way lenge is that unlike the automotive indus- dependent on a strong team environment. To this point, local sourcing has been lim- of small and medium-sized enterprises try, where a supplier can dedicate an entire GKN Mexicali has a significant amount of ited to operating supplies. The raw materi- Can you provide an overview of Eaton’s (SMEs) to satisfy the base of the pyramid, facility as the source of all its business with Can you give a brief introduction to support from our Alabama parent site, both als are all imported from the United States. operations in the aerospace industry? but what those companies need in order to one customer, an aerospace supplier must GKN and the company’s operations in in terms of quality and engineering and in- GKN wants to develop local suppliers for Eaton is a diversified corporation with do so is technical talent, of which there is have a number of customers to be sustain- Mexico? suring that we have our processes under non-destructive testing, CNC machining headquarters in the United States and annu- a distinct shortage in Mexico. There are a able. GKN is a British firm that was established control. GKN has also recruited a very and tooling, as outsourcing these services al sales of around $23 billion. About sixty great many universities that are graduating Eaton is active in encouraging the growth in 1959. Over the decades the company has experienced leadership team in Mexicali, to U.S. companies is difficult and expen- percent of Eaton’s business is in electrical aeronautical engineers, but having enough of SMEs in Mexico not only for its own transformed itself into four primary busi- which includes an operations manager, en- sive. Finding local suppliers can some- components/solutions and the rest in the in- technicians in fields like CNC-programing, needs, but also to ensure that the industry nesses. The largest component of GKN gineering and quality manager and a pro- times be difficult in Mexicali, but there are dustrial business. The latter is divided into welding, composites, airframe assembly, increases its competitiveness. We have a is the automotive business with the aero- gram manager. opportunities for suppliers to enter the lo- three pillars: automotive, hydraulics and complex assemblies, quality inspectors, good success story with Barry Avenue Plat- space component being the second largest. cal markets. The government is also run- finally aerospace, which accounts for $1.9 chemical processing, thermal processing, ing from Los Angeles and BAP Aerospace As of 2014, aerospace makes up 30% of What are some of the key advantages ning programs to encourage them. billion of our overall business. Eaton is de- etc. is critical to support the development de Mexico in Tijuana, which has an excel- GKN’s revenue. Within GKN aerospace GKN identified in Mexicali before- es fining itself as a provider of system solu- of a supply chain in Mexico. lent reputation in the global aerospace in- there are different divisions including tablishing a facility? Do you have a final message? tions to our aerospace customers. Those so- dustry with more than 60 years in business aero structures, engine products and spe- The cost structure was the key consider- What I like about doing business in Mex- lutions fall into four main areas: hydraulic How has Eaton sourced its local suppli- of aerospace plating/chemical processing. cial products. The company has a presence ation. The lower cost structure enables ico is that what you see is what you get; systems, fuel and inerting systems, motion ers? As aerospace companies in Mexico are em- all over the world, but is predominantly in GKN to improve its profit margins on ex- business relationships are very transpar- control, and engines. Mexico is a strategic area of sourcing for bracing this NADCAP accredited compa- Europe and North America. isting products and provides a competi- ent. GKN Composite Structures is happy Eaton. When I joined Eaton about six years ny, BAP Aerospace de Mexico is today the Within aero structures North America, tive enabler for pursuing new business. to be in Mexico and is ready to serve our What is the importance of the Tijuana ago there existed very few companies that most recognized aerospace plater in Latin there is a business unit called advanced Mexicali offers opportunities to GKN as customers' aerospace composites needs. • facility to your global aerospace opera- we able to comply with the quality mea- America, which is based on the number composite structures. The corporate office the company can leverage the cost struc- tions? sures imposed by the aerospace industry of approvals from OEMs and tier-one and for this business unit is in Tallassee, Ala- ture here to lower the average cost and be With 20 facilities in the country, Eaton (AS9100 and NADCAP), outside of the tier-two companies that they hold. We are bama and until 2012 it was the only site competitive. The location was also a very Corp. has a strong presence in Mexico, OEMs and tier-one and tier-two compa- proud to be the first and anchor customer to within the advanced composite structures important consideration, and Mexicali is though this facility in Tijuana is the only nies. The last decade has seen Baja Cali- BAP Aerospace de Mexico. • group. There have been four location ad- perfect as it is right across the border. The

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Benchmark desired to have a northern Mexi- bilingual personnel, and sharing a time zone; cali is the largest manufacturer of multichip scheme and another 25 on what is called so- co presence to complement its central Mexi- Benchmark's Tijuana facility is only 45 min- models and Skyworks is the largest supplier cial services required by universities. co facility in Guadalajara. Since Benchmark utes' drive from San Diego's airport. Bench- worldwide. Our assembly capacity is almost focuses on high reliability markets, the Ti- mark has been established in Tijuana for 9 million units a day and test capability is 12 Can you provide more detail as to how juana facility focuses on avionics, medical 25 years; its avionics business surged 12 to million units a day. We operate in a 360,000 Skyworks Solutions has incorporated in- and high-end industrial was a natural fit. 15 years ago upon the introduction in 1997 square foot facility and are certified to ISO novation into their Mexicali operations? of the North American Free Trade Agree- 9000, ISO 14000 and the TS 4969. Our staff Around five years ago, we established the Can you give details of your facility, key ment. This agreement initiated steady jobs of 3,500 employees works four shifts. We are Skyworks center of innovation (CISEM) in equipment and certifications; and do you in Mexico giving parents the financial sta- fully integrated vertically and have around Mexicali. This was in response to study we offer post-sale and support services from bility to send the next generation to college, 1,800 automated machines that run 24/7. We conducted that showed that the work that your Mexico facility? resulting in a plethora of four-year degree are constantly exploring new ways in which was being undertaken in universities across The company's facility in Tijuana is 107,000 students from Baja California in engineer- to reduce cost and increase productivity. the country was not the type of work that was square feet, with 525 employees. Equipment ing and international business. In the last 10 From fiscal year 2011 to fiscal year 2014, we needed by the industry. We invited students includes: seven SMT lines – (Surface Mount years, Tijuana's infrastructure has markedly increased our capacity by 145% and saved and professors from all over Mexico to come Technology); six wave soldering machines; improved. $20 million through cost-saving initiatives. together at Skyworks and focus on what two selective soldering machines; six Se- was really required for industry to progress. lective Conformal Coating machines (85% Is the supply chain of small- and medium- How important is aerospace to Skyworks Today, we work with universities and gov- of CCAs will be conformal coated). Bench- sized enterprises adequate for Tijuana's Solutions? ernment agencies to establish what the next Rod mark's certifications include: AS 9100, ISO aerospace industry? Joaquín Skyworks sells a majority of its aerospace technology is going to be and where it will 9k2k; ANSI S20.20 ; and in early 2016 will Many of Benchmark's parts are sourced from and defense solutions through distributors, take us. We encourage innovative thinking Gunther have NADCAP certification. United States and Asia. It has been working Jiménez who in turn sell directly to larger industry and even have our own patent office to pro- on localizing its supply chain in sheet metal customers. Mexico has experienced an aero- tect the constant stream of new ideas. Can you give details about your facility and plastics, although many OEMs select space boom over the past ten years and cer- and its key equipment and certifications? their own materials. The company's daily tainly there has been an increased need for How is this being applied in the aerospace The company's facility in Tijuana is 107,000 needs are contracted locally, e.g. stencils our commercial, off the shelf sector devices sector? General Manager Director of Innovation and Government square feet, with 525 employees. Equipment for SMT assembly equipment; benches; and that are then incorporated into larger plat- Skyworks Solutions is an active member of Affairs BENCHMARK includes: seven surface-mount technology maintenance, repair and overhaul supplies. forms. the aerospace cluster in Mexicali and is in ELECTRONICS INC. SKYWORKS SOLUTIONS DE lines; six wave-soldering machines; two There are some special process gaps that are tune with the current thoughts and needs of MÉXICO S. DE R.L. DE C.V. selective soldering machines; six selective being addressed in the supply chain locally, How does Skyworks help develop talent in this sector. Innovation is certainly a new step conformal-coating machines (85% of CCAs and will be filled in the next few years. Baja California to support its human re- for the aerospace industry, but the environ- will be conformal-coated). Benchmark's sources needs? ment is certainly right for it to succeed. The certifications include: AS 9100, ISO 9k2k; What is your involvement with research One major advantage the Baja California area most important asset is the talent available ANSI S20.20; and, in early 2016, will have and development (R&D) and are you in- offers the industry, and in particular Mexica- here in Mexico. For innovation, you need NADCAP certification. corporating automation? li, is access to a wealth of talented individu- keen minds, and Mexico is in no short sup- Our involvement in R&D will be with our als. Skyworks Solutions is very involved ply. With the right guidance and efficient Please provide a brief overview of Bench- Can you give a case study of an aircraft approximately 300 design engineers located Can you introduce us to Skyworks Solu- in developing this. The linkage committee knowledge transfer, Mexico’s aerospace in- mark Electronics' operations in Mexico. you have recently worked on? around the globe. While we will work with tions? in Mexicali is an effective communications dustry could be competitive internationally. Benchmark Electronics Tijuana was formed Benchmark is currently building actuators our customers to assist them in these areas, Skyworks Solutions, Inc. is empowering the platform for companies to come together What is crucial is maintaining that strong in 1985; it was a spin-off from Sperry Flight that are used to control aileron, elevator, rud- we are focused on the product realization wireless networking revolution. Our highly with representatives of academic institutions link between academia, government and in- Systems, which was then acquired by Honey- der and spoiler for the Airbus A350 and Boe- side of the business at the site level. innovative analog semiconductors are link- and discuss the current needs and require- dustry. well, which, in turn, transferred its manufac- ing 787. They entail building circuit cards, We are fortunate to have some of the best ing people, places and things spanning a ments of the various industries operating in turing operations to a contract manufacturer putting the end item together, and recording automation engineering available. We incor- number of new and previously unimagined the area and ultimately develop the talent Do you have a final message for our inter- in 1999. Our manufacturing operation was the automatic torque for traceability includ- porate automation and semi-automation in applications within the automotive, broad- that we need. It is very important that we be national audience? acquired by Benchmark Electronics in 2013. ing the running and final torque. When built, the process where is makes reasonable and band, cellular infrastructure, connected heavily involved in linkage activities, as ulti- It is an exciting time at Skyworks. Our solu- Benchmark's service offering in avionics in- functional test and highly accelerated stress financial sense based upon the complexity home, industrial, medical, military, smart- mately they will define the future of industry, tions enable a number of applications within cludes: box build, Circuit Card Assemblies, screening are required, as well as random vi- and volume of the task. phone, tablet and wearable markets. Head- and we have been doing so for over 20 years. the automotive, broadband, cellular infra- cables; and harnesses. We manufacture cir- bration to simulate stresses during flight. quartered in Woburn, Massachusetts, Sky- Linkage activities will ultimately define the structure, connected home, industrial, medi- cuit card assemblies (CCAs) subassemblies, What were the biggest challenges for the What goals do you have for the next five works is a global company with engineering, future of industry, and we have been doing cal, aerospace, smartphone, tablet and wear- box build, and very large scale integration in company in its tech-transfer to Tijuana? years? marketing, operations, sales, and service fa- so for over 20 years. In Baja California, we able markets. In Mexicali, we continue to our Tijuana facility. Our experience in Avia- What are the major strengths that Baja Cali- Benchmark will grow its facility and ca- cilities located throughout Asia, Europe and have 12 universities and over 48 technical expand and increase our capacity to meet this tion ranges from electronics found in the avi- fornia offers as a hub for aerospace? pabilities within the Tijuana area with an- North America. schools, which together produce up to 15,000 growing demand. We are very customer-cen- onics bay, , cabin, engine and actua- The biggest challenge is the thought-pat- ticipated growth in mid-double digits year- engineers on a yearly basis. Skyworks Solu- tric with quality, cost and productivity all key tors for the surfaces of aircraft. Worldwide, tern shift of aerospace companies in United over-year. U.S. and European OEMs want Can you talk about the importance of the tions also has a program in place whereby we elements of our success. Our growth is fu- almost every commercial aircraft contains a States that the low-cost region of Tijuana is to continue moving product to a high-talent, Mexicali facility to Skyworks’ global op- scout universities for some of the best stu- elled by the wealth of talent available and the Benchmark Electronics product. a good destination to source products for low-cost region area, and Mexico provides a erations? dents to offer them internships after which people’s collective determination to succeed. original equipment manufacturers (OEMs). better total cost of ownership than many of Skyworks’ Mexicali facility provides as- they will have the choice to stay on in full This is one of Mexico’s greatest strengths Why did Benchmark acquire the Tijuana However, geographically, Tijuana is ideally the Asia-sourcing decisions that were made sembly, test and finishing services for a wide time employment with the company. We cur- and what the international aerospace com- site? situated, being close to San Diego, having a number of years ago. • portfolio of semiconductor solutions. Mexi- rently have 26 students with us as part of this munity needs to know. •

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cility in Mexico. Over the years, Orcon has fice makes sure of all the requirements of grow our business with our aerospace cus- duce cost and generate savings to the cus- brought more and more production lines into its customers, and we then adhere to the re- tomers. tomer of over $1 million per year, for which this facility and currently more than 90% of quirements from the corporate office. The fa- it received the 2013 Innovation Supplier of the whole corporation’s production is being cility has also earned some awards over the Can you talk about your experience of the Year Award. This is a great example of done in Mexico. years. Quality and on-time delivery is a big expanding to Mexico and provide details how Bazz Houston can not only provide driver in the industry. of the facility that you have here today? quality services, but can also implement Can you elaborate on the size, operations Expanding into Mexico was definitely a considerable cost savings for our customers and workforce of the Mexico facility? What procedures has Orcon put in place challenge and was not an easy decision. A both in the United States and in Mexico. The facility in Mexico is approximately for lean manufacturing? number of factors influenced us at that time. 45,000 square feet. The labor pool fluctuates Orcon has been working with its customers Several key customers encouraged us to ex- What are the benefits of bringing in a for- from 50 employees to up to 350 employees, on some lean initiatives. In the facility there pand our operations to Mexico and, after eign supplier over developing a local one? depending on the contracts in place. Cur- is a significant amount of communication on extensive investigation, we proceeded. We Bringing in a foreign supplier makes for rently Orcon has a minimum amount of la- the floor. During shifts, the progress of pro- made the decision not to use a shelter com- a quick solution to any gap in the supply bor force and employs about 40 people. duction is monitored every hour. Shifts are pany, but rather establish operations with chain. A company with previous experience started by communicating the company’s our own resources. Although aerospace from another country will have the mature Is Orcon under the maquiladora pro- and the employees’ daily goals. Orcon also was not our initial area of focus we quickly internal structure to swiftly establish effi- gram? makes sure that its staff knows and under- identified the great opportunities that this cient operations. Developing a purely local Since the beginning of Orcon’s operations in stands the products that they are manufactur- sector offered in Mexico. We were certainly company takes much more time and invest- Roberto Mexico, the company has been under the ma- ing. Understanding the products and what it Javier helped by a number of factors: many of our ment, but it is this long-term development quiladora program. The company operates means to be involved in the aerospace indus- key personnel are bi-lingual, Tijuana is just that is essential for the progression of the Buelna on a twin plan. This means that Orcon has try creates a sense of honor in the company’s Castro two hours from our main facility in Garden country’s aerospace industry. Government a facility in Ensenada and also a warehouse staff members. Grove, and our key customers were very and universities must work collaboratively facility in the United States right across the supportive. Our Mexico facility is located to grow the pool of skilled labor and help border from Tijuana. The warehouse facility What are some of Orcon’s flagship proj- in La Mesa Industrial Park, and it is both Mexican companies break into the aero- serves as a buffer for inventory and also does ects? AS9100- and ISO9001-registered. space supply chain. Doing this will create a General Manager President & CEO the logistics for shipping worldwide. As per The patents that Orcon has are mainly for a sustainable ecosystem. ORCON CORP., ENSENADA the maquiladora regulations, Orcon ships all major OEM. The company has several prod- BAZZ HOUSTON CO. What is the typical customer profile that of our products from the warehouse in the ucts qualified for this OEM’s QPL. Aircrafts Bazz Houston is seeking to work with in What gaps have you identified in the lo- United States. can only have products incorporated that Mexico? cal supply chain and what is preventing have been preapproved. Orcon has a differ- The primary customers that we are target- companies from establishing a presence Can you elaborate on the process that Or- ent market, as the company sells not only to ing are ones that fit our strategic profile. We in Mexico? con went through for the transfer of the OEMs but also to the maintenance, repair want to work with companies who value There are definitely some gaps in the supply first work package? and overhaul (MRO) companies. One of the engineering support that we provide. It chain, particularly with heat treatment. We The transfer was a very interesting process, Orcon’s biggest customers is the MRO busi- is important that our customers understand have considered partnering with some of but Orcon has been in the military business ness and operators. that we are not simply a supplier of metal our sources in the United States to help de- Can you give a brief introduction to Or- for a significant amount of time. The compa- forming and fabrication products, but we velop this service offering in Mexico, which con and the history of the company? ny developed all the regulatory requirements When did design start to play a larger role Can you provide an overview of Bazz also offer substantial design and engineer- is still in the discussion stage. The two main Orcon was established in California as a pri- and signed the proper contracts with the in Orcon’s operations in Mexico? Houston’s history? ing support. We are looking for customers factors that are currently preventing compa- vate company and has been in business for original equipment manufacturers (OEMs). Design started to play a role when Orcon Bazz Houston was founded in 1961 in Long with strong research and development that nies from expanding into Mexico are a lack 53 years. The company started to gain some Transfer was difficult in the beginning, but started developing supplemental type certifi- Beach, California, and started manufactur- are constantly developing new products, of understanding of the business community patents, especially on reinforcing materials the process did go well. After the first work- cate (STC) packages especially for the after- ing mostly springs, stamping and slide prod- and as such need support from a design and the language barrier. It is very impor- to be used on the general acoustic insolation package transfer, Orcon developed other market. The company saw the necessity for ucts. In 1974, the company moved to Gar- for manufacturability perspective. This is tant that U.S. suppliers realize the potential of aircrafts. Orcon then gained a market in projects with major players in the military STC packages so as to reduce the cost of den Grove, where its corporate offices are where our engineering team can add signifi- in Mexico and expand now while the oppor- the film industry. Film is the material that is industry. In the Mexico facility, the company maintenance on aircrafts for the operators. now located. We expanded our operations cant value. tunities are great. used to fabricate insolation blankets. is currently building military products for This was an opportunity for design for Or- to Tijuana, Mexico in 2004 to better service As the business started to grow, Orcon had three or four major players. con, and we integrated engineers from the our customers with operations in Mexico. Are you able to provide a case study of a Do you have a final message? a strategic plan to move into Mexico, as it corporate office into the Mexico facility. The Our manufacturing operations in Mexico recent engineering project Bazz Houston Bazz Houston will continue to expand the was a lower-cost country than the United Can you explain the process of acquiring engineers train Orcon’s workforce in Mexico and in the United States are mirror facilities undertook with a customer? range of its services in Mexico while further States. In 2003, the company established its certifications and customer approvals? on the use of software. that both offer punch press, four slide, and We have a customer based in Sonora who developing its local engineering resources. first manufacturing facility outside of the In the beginning, the operations in Mexico tooling capabilities. In addition, most of our had a product that was maturing. We were Our experience in Mexico has been very United States. At that time it was the perfect were under the umbrella of the U.S. parent What are Orcon’s main goals for the fu- spring, CNC wire forming and value-added producing about seven million assemblies positive and, without a doubt, had we not opportunity for Orcon to start producing in company’s AS 9100 certification. Orcon ture? assembly operations are in Mexico. for them per year, but cost was becoming an expanded here ten years ago our company Mexico as the company won a big military then certified the Mexico facility for AS Orcon would like to bring more product Bazz Houston’s latest acquisition is a preci- issue. Our engineering group was able to de- would not have experienced the significant contract. In the Mexico facility, Orcon man- 9100, and we have kept this certification for lines to Ensenada. Orcon is also looking for sion sheet metal fabrication facility in Cali- velop a new design eliminating the require- growth that it has. The international aero- ufactured 95% of the insolation of cargo mil- all the years that we have been operating in opportunities to grow its business in com- fornia. Strategically, this complements our ment for high-strength, low-alloy material, space community needs to share the suc- itary aircrafts. The company then also started Mexico. What helped with the certifications modities and in services. Baja California current manufacturing capabilities and is a reduce the material thickness by 20%, while cesses that companies such as Bazz Houston to acquire retrofit business for a big U.S. op- is that our corporate office oversees the qual- currently offers the best opportunities for the need that our customers have been asking maintaining the structural strength required have experienced in Mexico, and continue erator. This project was done through the fa- ity in the Mexico facility. The corporate of- aerospace industry. • for. This will also strengthen our efforts to for the application. Our team was able to re- to encourage suppliers to invest in Mexico. •

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the machine shop out, relocated it, and be- a step-by-step training program to a point about and what were the initial opportuni- will be a manufacturing facility in Mexico came the company we are today. where they can operate a machine. MTI de ties American Autoclave identified in the and the autoclaves will have all the certifi- Baja has almost no turnover because we country? cations and technologies that are required. What is the full scope of capabilities and provide our staff with a career rather than American Autoclave in Mexico was set up in In terms of regulations, Boeing has require- services MTI de Baja is able to offer to- a job. August 2015, as it identified many business ments for processing an autoclave for the day? opportunities in Mexicali. Mexicali started to manufacturing of composites just as the Air- Our core competency remains in machin- What are some of the strengths that grow significantly in terms of aero-structures, bus has the AMS2750 regulations. These are ing. MTI de Baja can also offer sheet- Ensenada offers aerospace companies as many American and British companies international requirements and one has to metal fabrication, injection molding, wire- over nearby Tijuana and Mexicali? started to set up manufacturing facilities in comply with these certifications when manu- harness and cable assembly services. What Ensenada has one of the highest educa- the country. These companies include GKN, facturing parts for Boeing or Airbus. has transformed our business is establish- tion rates per capita in all of Mexico and as UTC, Honeywell, LMI, and Gulfstream. American Autoclave also provides installa- ing a supply network of our own. We work such the labor pool is strong. It is also one The main reasons that several companies tion and repair services to the industry. We with a number of what we term ‘operating of the safest cities in Mexico. Additionally, expanded into Mexicali were that labor is have our own maintenance team in Mexico partners’ that are essentially world-class unlike in Tijuana, one does not encounter significantly more economical than in the that travels across the country to provide ser- manufacturers with excess capacity. MTI employee poaching. Therefore, we are United States, and the workforce is talented. vices to our clients. The company is based de Baja can take over this excess capacity able to invest in our employees with confi- There are several academic institutions in the in Mexicali, but most of the structure manu- and use it to manage additional products dence and help build their careers and ex- area that produce good technically qualified facturing companies are in Northern Mexico Monty from inception to final delivery. pertise while we build our business. Bill people. and we are still able to service them. How important is the aerospace indus- How have you seen Ensenada evolve as Can you provide more detail about the au- As Mexico’s aerospace industry grows, Merkin try for MTI de Baja? an aerospace hub and what role is the Castaneda toclave itself and how its role has evolved can Mexicali become a global center of Ninety percent of our business comes from region playing for Baja California’s in the aerospace industry as composites excellence for composite manufacturing? tier-two and tier-three companies, though aerospace as a whole? have become a much stronger aspect of There are a significant amount of companies in the past we have also worked with ti- Despite the presence of Hutchinson and this sector? looking at Mexicali in terms of setting up er-one companies and even some original Orcon, I have not seen considerable Carbon fiber is used to manufacture parts. composite manufacturing facilities. I know CEO Vice President, Business Development equipment manufacturers. The industry is growth in Ensenada as an aerospace hub The process involves putting carbon fiber of three large companies that want to set up MTI DE BAJA INC. AMERICAN AUTOCLAVE CO. extremely important for MTI de Baja and in the past years. MTI de Baja, however, in a mold, which is then covered by a bag. in Mexicali to manufacture airplane parts. accounts for 80% of its total business. has stimulated growth to a certain extent. The bag with the mold is then put inside the One of the companies wants to manufacture Not only have we grown as a business, but autoclave where it is pressurized and pro- a complete airplane in Mexicali. In the next Having initially struggled with machin- also we have established a supply network cessed for about 10 hours. Under high pres- five years, Mexicali is going to see tremen- ing, how does MTI de Baja today guar- in the area that we continue to develop and sure and temperature, the carbon fiber -be dous growth in terms of manufacturing for antee the quality and on-time delivery utilize. This created jobs and has contrib- comes a strong solid part. This part is very the aerospace industry. Mexicali can offer the of its machined products? uted to the growth of the aerospace sector light, non-corrosive, and easy to repair. Be- technology, support and engineering that are Crucially, we implemented AS9100 of the region’s economy. ing much lighter than metals, these parts are required to successfully operate in the indus- throughout our entire company. Beyond important in the aerospace industry and have try. Can you provide an introduction to this MTI de Baja is very process-driven. Over the next five years, what are some Can you give a brief overview of American a substantial amount of benefits for long dis- MTI de Baja with a brief history of the From request for quote and inception of a of the major goals that MTI de Baja Autoclave and the history of the company? tance flights. What goals does American Autoclave hope company? product, we take time to identify exactly hopes to achieve in your growth? American Autoclave has been in operation to achieve over the next five years? MTI de Baja began in 2005 with fabricat- how we are going to manufacture the prod- MTI de Baja will continue to grow primar- for 50 years and the company’s main focus is Do you think that all original equipment American Autoclave aims to have its manu- ing thermal acoustic insulation blankets uct, how we are going to inspect it and en- ily on the Mexico side of the border, sup- the aerospace industry. We manufacture au- manufacturers (OEMs) and tier-one com- facturing operation established in 2016. We for a primary aerospace customer in Can- sure continuous compliance. We engage in porting companies from the automotive toclaves used for composite manufacturing panies will have some form of autoclave in will, however, not only be focusing on Mexi- ada. Early on, contacts from my aerospace failure-mode analysis and carry out risk and aerospace industries. We hope to build for aircrafts. Over the last 10 years, the new their operations? cali, as we are looking to set up in Queré- network began asking about machining ca- management and risk mitigation up-front the business to a point where we can begin generation of airplanes is heavily reliant on The industry is definitely moving towards a taro in the future. There are several aerospace pabilities in our region of Baja California, to ensure that no issues are encountered a consolidation process of incorporating autoclaves, as 70% of planes are made out space where OEMs are starting to incorpo- companies in Querétaro, but they are not do- Mexico. We found a local operator of ma- later on in the process. These measures al- similar businesses into our own to create of composites. rate autoclaves as part of their operations. ing aero-structure manufacturing yet. There chining services and with whom we were low MTI de Baja to guarantee consistent a larger operation. We are one of largest American Autoclave has a presence around American Autoclave expanded its operations are many prospects in Querétaro and, as the able to subcontract these requests, and quality and on-time delivery. machine shops in the region, but through the globe and distributes its products in Eu- into Mexico as the demand for autoclaves in aerospace industry grows, American Auto- MTI brought in its first aerospace custom- an even larger operation we want to be rope, South America, United States, Mexico, the aerospace industry is exponentially in- clave will like to take advantage of the op- er in 2006. The owner of the machine shop What is MTI de Baja’s strategy for able companies more of a one stop shop and Canada. The company has two manufac- creasing and there is a large need for equip- portunities. soon wanted to get out, and MTI made the sourcing and training its personnel? with multiple capabilities under one roof turing facilities in the United States, of which ment in this region. decision to buy the business and bring the MTI de Baja provides full in-house train- including secondary processes. The qual- the main facility is in Georgia, one facility in Do you have a final message to the interna- machining capabilities in-house. It took ing and cross trains its entire staff. This ity, service, and delivery in Mexico can be England, and one in Columbia. The largest What are the post-sale requirements of tional aerospace community about Mexi- three years for us to be able to master this means that all personnel are familiar with equal to or greater than in any other part sized autoclave that we have manufactured companies in Mexico and what are the cali and its growth in the industry? business and get to a point that we were every aspect of our production process. of the world. The key to that is finding the in the U.S. facility is 7 meters in diameter by post-sale services that American Auto- Mexicali can offer good technologies and providing the high-quality and on-time de- Due to the limited availability of machin- right partner to work with. • 25 meters in length. This manufacturing was clave can offer? support. If a company wants to invest in an livery demanded by the aerospace indus- ists in Ensenada, MTI de Baja has created done for Gulfstream Aerospace. One of the requirements in the near future area where there is good labor, experience, try. In 2010 the fabrication business was a system in which it can employ someone will be that American Autoclave will have and quality, Mexicali is the region to invest acquired by 3M, at which time we pulled with no experience and take them through When did the expansion into Mexico come to manufacture autoclaves in Mexico. There in. •

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Aerospace de Mexico can be seen as a stra- fight the idea that in Mexico everything is was possible. Quality has always been a people opening distributing locations in tegic partner rather than merely a service cheaper and therefore the quality is worse. major focus at Allied Tool & Die. Mexicali, but they do not yet meet our ma- provider. BAP Aerospace de Mexico proved to its terial needs. Allied Tool & Die is able to customers that its services in the Mexico Can you elaborate on when Allied Tool work with all materials and specialize in Can you elaborate on what led to the facility are of same quality as in its LA fa- & Die expanded into Mexico and what high-temperature alloys. move to Mexico and what the process cility. We have had companies that want- opportunities did the company identify entailed? ed to do a three- to four-day audit on the in the region? How does the company source human Barry Avenue Plating Co. has been in part- Mexico facility, and in less than one day In 2008, there was the financial crisis and capital and is there sufficient linkage nership with Parker Hannifin for over 50 the audit was completed with full approval. at the same time the company had ma- between academia and the aerospace years. Parker Hannifin moved into Tijuana chines that it wanted to replace. As not to industry? about 20 years ago and since then had been In terms of technology and knowledge sell off the older equipment at a loss, Al- Currently the company in Mexicali con- asking Barry Avenue Plating Co. to also transfer, can you highlight some of the lied Tool & Die had to respond quickly. sists of 11 employees. When it came to move. As the aerospace industry in Mexico steps and key challenges that Barry Av- For five years, Honeywell had been asking Mexico, the company chose to operate started to grow and more customers moved enue Plating Co. faced during the migra- us to open a shop in Mexico, as we have through a shelter system. Due to the fact to Mexico, Barry Avenue Plating Co. start- tion process? been a major supplier to them. Honeywell that the plant in Mexicali is small and ed to look into migrating. What is most important is to work closely is the company’s largest customer and we would take time to grow, a shelter program Eaton Aerospace had a big influence on the with our current staff to share our know- supply to 18 different Honeywell divisions made the most sense economically. company’s decision to migrate to Mexico. how on BAP Aerospace de Mexico’s qual- globally. We had machines available and a There is a good linkage between academia Cruz We were a key player in helping Eaton ity requirements. One challenge that we Bill client with a potential demand. and the industry as institutions are be- Aerospace move big projects into Tijuana came across is that we had to de-train our In 2008, Allied Tool & Die made the deci- ginning to provide industry-specific pro- Maldonado and support their needs. So, as to continue staff on what they are used to doing locally Jordan sion to look into Mexico. As the company grams. Currently, three of the company’s supporting our client’s needs in Mexico, and re-train them in our NADCAP quality is a contract manufacturer, we needed to employees are taking classes at local aca- we decided to open a facility in the country. processes. Most processes involve five to have a contract of a certain dollar amount demic institutions to further their knowl- The decision was made easy by the base six steps. We train our staff to acquire the to justify such a large investment. We then edge. However, Allied Tool & Die does line of customers that Barry Avenue Plat- knowledge and processes by teaching them collaborated with Honeywell as to secure provide internal training, as we like to pro- President CEO ing Co. already had in the region and the exactly each step needed to reach the qual- enough business to make the move to mote from within. The company’s average BAP AEROSPACE DE MEXICO, ALLIED TOOL & DIE relationships we had with these companies. ity required. Training starts with our qual- Mexico beneficial. The company officially employee tenure is over eight years. A BARRY AVENUE PLATING We were also guaranteed business as the ity and laboratory personnel. opened a facility in Mexico in July 2010 CO. company has been in the industry for many and started to ship parts by October 2010. What are some of the challenges that are years. Having many aerospace custom- In Baja California there is a need for Currently the main focus of sales is still for preventing companies from entering the ers also gave us the advantage of knowing a stable and certified supply base as to the Honeywell contract, but the company Mexican industry? upcoming developments and new projects. support the OEMs and tier-one compa- has added other customers, contracts, and The biggest challenge, especially for tier- The reputation and experience gained by nies. What needs to be done for more products to the Mexico facility. two companies, is that they do not have a Barry Avenue Plating Co. in LA helped companies to serve the aerospace indus- package large enough to justify the move establish the market in Mexico and create try in Mexico? Can you explain the capabilities and to Mexico. In order to expand and build Can you give a brief overview of Barry BAP Aerospace de Mexico. Certification is essential to be able to work certifications of the facility in Mexico? a supply chain in Mexico, the original Avenue Plating Co. and the firm’s his- in the aerospace industry in Mexico. Com- Can you give an overview of the history In Mexicali, Allied Tool & Die has al- equipment manufacturers have to drive it tory? Can you elaborate more on the facility panies must get process approval for what of Allied Tool & Die? most duplicated, on a smaller scale, what and offer the support needed. Barry Avenue Plating Co. was established in Mexico and what industries it serves? is required from customers. Currently there Allied Tool & Die was established in 1951 the company offers in Phoenix, Arizona. We received a lot of support from the shel- in Los Angeles (LA) in 1947 and is a fam- BAP Aerospace de Mexico was based on are gaps in the local supply chain. The and it was originally a family-owned tool The facility in Mexico has CNC machin- ter provider that we pay to help the com- ily-owned business. Currently the compa- NADCAP requirements, as it wanted to tar- major problem is that there might not be and die shop. Within the first year the com- ing, which includes 3- and 4-axis mills pany operate in Mexico. The government ny has 120 staff members working on two get the aerospace industry. Currently 60% enough business in the region to incentivize pany decided to change and go into pro- and lathes. Cutting, bending, forming and support programs tend to favor larger com- shifts. Barry Avenue Plating Co. has ap- to 70% of the company in Mexico is in- companies to invest. A second challenge is duction. Allied Tool & Die then grew and welding can also be done in this facil- panies that at our size we could not benefit provals from all major original equipment volved in the aerospace sector. BAP Aero- the long process involved with gaining cer- evolved into a machining and stamping ity. Both of its facilities are ISO- and AS from. manufacturers (OEMs) and offers over 55 space de Mexico’s high quality services tification and customer approvals. company. In the 1980s, the company also 9100-certified. finishes, all of which are NADCAP-certi- and fair pricing also make us an attractive started to do laser work and in the 1990s it What are Allied Tool & Die’s goals and fied. Out of our Los Angeles facility, the option for the medical and automotive in- What goals does BAP Aerospace de became more involved in CNC machining, From where does the company source plans for growth in terms of the aero- company services more than 3,000 active dustries in Mexico. All of BAP Aerospace Mexico hope to achieve over the next as it got more popular. In 2010, we opened raw materials? space industry? customers. de Mexico’s finishes are done according to five years? a small production facility in Mexicali. The vast majority of raw materials are pur- Allied Tool & Die has goals for growth of Barry Avenue Plating Co. and BAP Aero- the aerospace NADCAP requirements. From 2014 to 2015, BAP Aerospace de All the divisions of the company, which in- chased through distributors or through the 5% to 10% year-to-year growth. The ca- space de Mexico are known for their qual- Mexico has tripled in size and will seek to clude lasers, CNC machining and welding, mill. There are a few customers that sup- veat to those goals is that we will not grow ity, customer service, and fair pricing. We Were there any concerns that customers maintain continued year-on-year growth. have grown significantly over the years. ply the raw materials. Everything for the unless there is profit in it. No one wants also try to establish close relationships with in Tijuana would be reluctant to accept We are constantly looking at expanding ISO certification first came out in 1997 and aerospace industry that the company buys a supplier that is not financially sound our customers and develop new projects services from a new facility in Mexico? into new process lines that may be required Allied Tool & Die’s first registration audit in Mexicali comes from the United States. enough to survive the ups and downs of together. Innovation is important, and the There were not many concerns as Barry by our customers. From early 2016 BAP was in 1999. The company registered for Allied Tool & Die’s material volume of business cycles. If we can provide products company strives to develop new finishes Avenue Plating Co. is a widely known Aerospace de Mexico will be offering non- AS 9100 certification in the first year one purchases is very low and thus local sup- at a competitive price, with the best quality and tooling that our customers may require. name and has a reputation of delivering destructive testing (penetrant inspection) could register, but conformed to the cer- pliers cannot compete with prices in the and delivery, we will get the work. • Both Barry Avenue Plating Co. and BAP high-quality services. However, we had to services. • tification requirements before registration United States. There have been several

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and NADCAP certifications. Beyond those certifications, we also tor with the idea to become one of the main and clear chromates. Roberto Limón have customer approval from Gulfstream and are currently in the chemical-processing supplier for this indus- The use of cadmium is decreasing as the use process of obtaining approval from Boeing. try. The construction of the new facility took of this metal has some environmental restric- approximately three years and simultaneous- tions. Platinadora, however, has very strict What specific services do you offer to the aerospace industry? ly our staff developed our quality system and regulations and pollution control in our plant Our core competency is in anodizing. We offer all types of anod- got ready for NADCAP certification, which to prevent contamination and unnecessary ex- izing, those being types I, II and III. Type I is chromic anodizing, the company obtained in 2015. The quality posure to heavy metals. The company makes which allows companies to weld or adhere cloth into aluminum system can be broken up into two parts that sure that all waste is neutralized, properly President to prevent separation. Type II is a corrosion preventative and type include the AC7004, basic quality system, treated and confined. ANODIMEX DE MEXICO, III is hard anodizing. We are also a provider of electroless nickel and AC7108 for chemical processing. S. DE R.L. DE C.V. plating and we also do some chem film, a process which prevents To obtain these certifications, the team has Is Platinadora able to work with the range corrosion, but also allows the customer to then paint over the to make a big commitment, work as a group of specialty materials used in the aerospace metal as it lends a good adhesion to the paint. 90% of our busi- and dedicate a lot of time and effort analyz- industry? ness is focused on the aerospace sector and, as such, aluminum ing all specs and requirements to determine Under NADCAP certification, the plating is the most common metal we work with. All our equipment is existing capabilities to run the processes and supplier selects the processes willing to offer in sequence and operated manually. Everything is monitored ex- to determine which ones will be subject to and then gets qualified for them. Platinadora tremely closely and we have a laboratory that is also NADCAP- certification. All processes need to be - mea Baja offers electroless nickel plating, cadmi- certified to support our analyses of chemicals. The NADCAP cer- sured and tested. Some of the testing activi- um plating, gold plating which include copper tification requires that all of our equipment is centrally controlled Guillermo ties like thickness measurement, solder ability and nickel under layers, zinc-cobalt plating, and monitored, for which we use top of the range software. and salt spray are done in-house while other zinc-nickel plating, passivation, trivalent and González more complex and expensive to operate are hexavalent chemical conversion coatings, tin Can you talk through the process of achieving NADCAP cer- outsourced. Outsourced tests include gold pu- and tin-lead plating, type-II and type-III an- tification? rity tests and micro hardness tests. odizing and the application on solid film lu- Can you provide a brief history of Anodimex and any recent Achieving this certificate was a very long process. It became bricants. These finishes cover great part of our major milestones? apparent that in order for us to be successful in the aeronautics How important is the aerospace industry to current and potential customer demands. Plant Manager Anodimex is special-process company offering a range of anod- sector, we must have all the necessary accreditation. In 2000 the Platinadora’s overall operations? PLATINADORA BAJA izing services to the aerospace industry. We started as small, fam- NADCAP certificate started becoming more and more enforced When Platinadora started considering to en- Does Platinadora do composite work for ily-owned business with only three people. Today, we have grown in the aerospace industry, it had been the same case previously tirely enter the aerospace market, the compa- aerospace? to a staff of 20 and are able to boast having obtained both the ISO with the ISO certification, which Anodimex also has. The first ny already had a substantial amount of work Platinadora Baja does plating of plastics and nine years we spent identifying and understanding the precise re- within the sector. Now that the company has has done successful trials on composite mate- quirements of the certification. At the time there was much confu- earned certifications, it does not need to be rials for a couple of customers. We currently sion within the industry in Mexico as to what these exactly were. taken under-the-arm by our customers, but do some plating on plastics jobs for com- The way in which Anodimex addressed this was to approach di- can now walk on our own. Over the years mercial customers, but not any aerospace or rectly our potential customers and work with them to establish Platinadora Baja has earned the trust of its defense composite or plastic materials. If the what they required and how we could perform this to a NADCAP customers and the company has been very need arises from aerospace customers, we standard. Companies such as Eaton and Zodiac were able to then Can you give a brief history of Platina- busy in the aerospace market. consider ourselves ready to offer this service. guide us through the process. Once we had a system in place, dora Baja and the company’s presence in Adding all our facilities, the company cur- we embarked on a two-year period of gathering all the necessary Mexico? rently employs 450 people. In the aerospace Is there a gap between the demands of the documentation and work records required by the auditors. Even- Platinadora Baja was established in 1996 and facility alone, Platinadora has 70 to 80 em- aerospace industry and what the local sup- tually, we had a successful audit over a period of eight days. started plating products for commercial ap- ployees. A significant amount of the employ- pliers can provide? plications. Over the years the company has ees are working in the quality, engineering, One of Platinadora Baja’s growth interests is What challenges do other companies in Mexico face in obtain- acquired a strong knowledge and expertise testing, and laboratory fields. The number of to offer non-destructive testing, as it is sought ing the required certifications? on different processes and became more tech- employees in this facility speaks to the im- after. This service does, however, require a The largest challenge for Anodimex was ensuring that we had a nical and focused on compliance to several portance of our enterprise in the aerospace significant amount of funding and training. constant flow of business during the two years prior to the audit, specifications. The growth and diversification industry. There is a big gap between the aerospace in- which provided sufficient records for the inspectors. Luckily we of the company has been directed by shifts of dustry and the local suppliers. Local suppli- have had a strong relationship with Zodiac since the company be- the economy and the fluctuations of different What are the typical finishing needs of the ers still need to undergo a culture change in gan operations in Mexico, but this is not the case for most small fields or industries. In the region, the stron- industry? terms of quality systems. An additional chal- and medium-sized enterprises (SMEs). This provides a catch 22 gest fields are the medical industry and some Currently Platinadora Baja has focused its at- lenge is finding funding to enter the market. for SMEs hoping to break into the aerospace supply chain. Today sectors of the military and aerospace industry. tention on the connector niche of the indus- It is the government’s responsibility to make a large corporation will immediately turn down a supplier offer- In 2010, Platinadora Baja decided to increase try. The company does a significant amount markets more accessible for them. It can play ing their services should they not have the required accreditation. its presence in the military and aerospace sec- of electroless nickel plating, which includes a significant role in academia, training, and In order for there to be a sustainable aerospace industry in this tor by opening a pilot line dedicated to this mid-phosphorus and high-phosphorus solu- providing funding opportunities for smaller region, original equipment manufacturers, tier-one and tier-two purpose. Our customers helped us significant- tions. Plantinadora Baja also does cadmium companies to enter markets. Achieving Nad- companies must do more to aid SMEs to integrate themselves as ly in developing our knowledge and quality plating for the military, as this finish provides cap certification has been another major road- suppliers. If this does not happen Baja California will not be able standards in this sector. great resistance against corrosion and has ex- block that small companies are forced to deal to remain competitive on a global scale. There must be more in In 2012, Platinadora Baja decided to build a cellent performance qualities. The finishes of- with due to its training and facility develop- the way of communication throughout the whole supply chain. • new facility dedicated for the aerospace sec- fered are olive drab or military green, yellow ment costs. •

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Can you provide some background on number of new staff and were focused on Abelardo Coast Aluminum with a brief history of training them. The biggest challenge for us the company? was finding the time to create our quality Teran This concept of aluminum distribution control procedures needed for the AS cer- began under the name of Clark Metals in tification. the 1960s. In the 1980s the company was General Manager sold, and Coast Aluminum was founded in As a company that imports all of its MAIS INDUSTRIES/SINCO Hayward, California. After opening sev- products from the United States, how eral branches in the United States, it was have you found the process of bringing decided to expand into Mexico. We start- metals across the border? Please provide a brief history of SINCO and its recent major odizing. The aerospace industry is important to SINCO’s future; ed operations in Tijuana in 2008 and have From when we began until now we have milestones? the company is evolving into more competitive markets, manufac- since been involved in the aerospace, au- seen some change in this process, but it is Connections were made with companies in the US that needed turing more demanding components and implementing enhanced tomotive, and electronics industries. The still a slow one. There have been some ef- more economic ways of securing machine components, and as a quality systems. To introduce SINCO's service offering to new regulations within the aerospace industry forts to change the laws to make it a more precursor to SINCO's formation, I began sub-contracting to local companies that require higher quality systems, SINCO has self- demanded that we become AS-certified. efficient procedure and now for aluminum companies in Mexico. SINCO was formed in 2006. With numer- initiated the implementation of AS 9100 certification. Today, in addition to our Tijuana facil- we do not have any trouble. For other ma- ous contacts in the US, SINCO commenced operating in Tijuana ity, Coast Aluminum has warehouses in terials though such as steel we have to ap- via third party machine shops supplying materials and parts with What is SINCO currently carrying out for the aerospace sec- Ensenada and Hermosillo. We are actively ply for additional permits. This adds an- QA processes for planning and heat treatment, plus the export and tor? Genaro looking to continue our expansion in Mex- other five days to the wait at the border. logistics for distributing these parts. Some machine shops lacked SINCO's has drilled aerospace fasteners, mainly for engines, work- ico. To offset this time we stock considerable work-quality and on-time delivery so it was only a matter of time ing with the following companies: B&B Fasteners; Air Industries; Manilla inventory in our 50,000-square foot ware- before SINCO started its own manufacturing operation. In 2010, 3V Fasteners, etc. SINCO also manufactured components for ITW, What were the initial opportunities the house and try to predict what our custom- SINCO started a partnership with MAIS Industries LLC and we e.g. aerospace floating nuts for fuselage assembly. However, the company identified in Baja California? ers’ demands will be. have grown over 30% every year since then. company wishes to progress beyond this specific market and look Coast Aluminum saw a gap in the market What is preventing there from being a Due to the unreliability of local outsourcing, SINCO commenced at different sectors of the aerospace industry to encompass larger in Mexico. There was no other company at stronger base of suppliers of raw materi- General Director carrying out all its own manufacturing processing at its Tijuana components and different materials, i.e. structural airplane com- the time providing our services. We had ex- als operating in Mexico? COAST ALUMINUM S. DE R.L. facility. Recently we have begun using Barry Avenue Plating in ponents, hydraulics, landing gear, complementing the company's isting customers in the region and felt that It is very difficult to become a supplier DE C.V. Tijuana to carry out SINCO's secondary process of plating and an- impending AS 9100 certification. it was important for us to move to be close of raw materials for the aerospace indus- to them. We established our Tijuana ware- try. Beyond AS certification you also need Does SINCO employ a design engineering team? house under the maquiladora program, specific customer approvals. If a company SINCO does not offer design as part of its manufacturing processes which means we are not required to pay wants to open a warehouse in Mexico they but it will identify a manufacturing risk that contravenes AS 9100 duties on our imports. need to be guaranteed that they will get certification. Myself, and the production manager are engineers, business. As Mexico’s aerospace industry and the company's five programmers have a high technical level of What are the typical metals you are sup- is particularly new we have yet to see more engineering also enabling them to advise on design modifications. plying the aerospace industry? distributors, but I believe in time we will. We supply different types of alloys for alu- Are there sufficient heat treatment facilities within the Mexi- minum and stainless steel. We have some Are companies getting enough support can aerospace supply chain? other metals alloys that go to the aerospace from either the cluster or the govern- Arguably, there is no reliable heat treatment facility locally. SIN- industry such as 2024, 7075 alloys. ment? CO outsources to the US. Options to set up a company have been Yes, there has been considerable help from considered by SINCO to fill the void of specialized processes in Do you have in any in-house processes the government and the clusters with re- Mexico. It is considered by US specialized process companies that that support your products? gards to certifications. The only thing miss- there is insufficient work in Mexico to establish a presence in the Yes, we have several cutting machines in ing right now is for contractors to look for country. our facility. We are able to cut all our prod- local suppliers. These large companies are ucts cut to our customers’ specifications. still looking abroad for their raw materials What are SINCO's goals in Mexico's aerospace industry with- so there is no incentive for a distributor to in the next five years? Can you tell us more about the process set up here. To gain AS 9100 certification, anticipated for October 2016. The you undertook to receive the AS certifi- company will then be able to fully utilize its high-tech equipment cation and what were some of the biggest How important is the aerospace industry which will be continuously updated to fulfil the needs of existing challenges? for Mexico? and new customers. We received support from the aerospace as- The aerospace industry is important for sociation FEMIA and it took around a year Mexico. The strict rules that it enforces are Do you have a final message for the international aerospace to become certified. We had to start from a good training platform for our people. community? scratch and design all our procedures and It is helping to develop a highly qualified The Mexican government is supportive of the aerospace sector; the quality control to these standards. At the workforce. Now that we are progressing in country has extensive technical centers to sustain this industry; and time when we began the process of becom- this sector, not as many of our young en- Mexico's aerospace sector is booming and will receive continuous ing certified we were in a period -of sub gineers are being exported to more mature support to maintain its growth. • stantial growth. We had recently hired a aerospace industries overseas. •

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In the late 1970’s, the company started to further their education. There is some col- in Mexico for five years and have facili- are based on the experience we have form get involved in making parts for aircrafts. laboration with universities, but that is still ties in Monterrey, Hermosillo and Tijuana. our U.S. sites, which were previously serv- This included manufacturing of push button minimal. For Switch Luz, since it is a small As a raw-materials distributor we serve ing some of our customers here in Tijuana. switches. The company has a R&D depart- company, we do not hire engineers from out- any industry that has need for both ferrous ment where switches are custom made for side to operate machinery. Rather, the com- and non-ferrous metals as well as a range Why is there a gap with regards to raw every type of application. Every part is built pany builds up our own staff and trains them of special alloys. Our sites in Mexico are materials for the aerospace industry in in the company’s facility and we only buy in regards to engineering and technical abili- strategically located in order to best serve Mexico? general use hardware. ties. the respective industry clusters. Ryerson To develop a local Mexican supplier to have plans of expansion in Mexico in the be at the level able to serve the aerospace How big is the Switch Luz operation and Can you elaborate on how the Maqui- near future. sector is a process that can take years. what is this facility’s productivity? ladora program has evolved within the The industry in Mexico is behind in this There are 45 people working in the facil- aerospace industry? How important is the aerospace indus- sense either in being able to develop local ity. The team has an average seniority of 15 From a government perspective, there is try in Mexico for Ryerson? sources or to have U.S. vendors open fa- years and we have significant experience in much enthusiasm about the growth of the In terms of business percentage the aero- cilities here. The cluster is working hard the industry. Switch Luz has a team of en- aerospace sector. In the past, many compa- space industry does not currently account on resolving this, and it will change. It will gineers and technicians working on the de- nies were already doing work in the aero- for much, only 5%. However we have be a case of allowing a foreign supplier signs of products. We work 48 hours a week space industry, but the industry was not identified this industry as a key area for to justify an investment into the country. with no second shift. The facility produces recognized as a sector on its own. With the Angel Torres growth. We recently received our AS9120 The low-volume, high-mix nature of the David about 100,000 switches a year. The produc- boom in the aerospace industry, the govern- certification and as such are now -an ap industry means that it is often difficult for tion is divided into different products as cus- ment is now recognizing the importance of proved distributor for the aerospace in- a company to have a high enough level of Berruecos tomers sometimes want the whole switch this sector. dustry. Today we are actively trying to business to justify a migration. and other times just the lenses. In addition The Maquiladora program was developed increase our business in this sector, par- we have molding, CNC, soldering and ma- for any type of manufacturing. The natural ticularly in Baja California, where we are Do you have a final message? chining operations. next step is to develop a program specifical- witnessing a boom in aerospace. Ryerson is seeking to grow in the aero- The aerospace sector is exciting for a com- ly for the aerospace industry. Currently the General Manager General Manager space sector. Looking ahead we need to pany like Electro-Mech as we can communi- Maquiladora program is difficult to manage. RYERSON, TIJUANA ELECTRO-MECH What are the typical products you are establish strategic relationships with mills cate with the engineers and find solutions to Within this program, there are so many fiscal COMPONENTS supplying to the aerospace industry and that are able to supply us with the materials problems together. The products that Switch requirements that are prohibitive for small what are the services you are able to of- needed for this industry. We must also cre- Luz manufactures are built to design and ac- companies to follow these rules. The govern- fer? ate quality teams dedicated to aerospace. cording to specifications and requirements ment can create something better that is not Typically for the aerospace industry we For Mexico, we are looking at diversifying from customers. The company has an AS as difficult to comply with. sell mainly stainless steel and aluminum not only in our product offering, but also in 9100 certification and also has its own qual- in different forms and shapes. We also are the industries that we serve. The past five ity manual which we have developed over Is design playing a greater role in the Can you provide some background on able to provide some special alloys. With years have been very successful for Ryer- the years. Mexican aerospace industry as of the Ma- Ryerson’s history in Mexico? regards to our processes we have a leveler son in Mexico and we will continue to be quiladoras evolving? Ryerson is a U.S.-owned company and has to flatten the coil we buy from the mills. engaged in the aerospace industry and are Can you give a brief overview of Electro- The aerospace industry contributes 75% Design is definitely starting to play a greater been in the metals industry as a corpora- We also have a laser cutter, a bar saw and actively exploring how we can evolve to Mech and the history of the company? to Electro-Mech’s business. Is the major- role. Within Maquiladoras, everything goes tion for 170 years. We have been operating two aluminum plate saws. Our offerings better meet its needs. • Electro-Mech was established in 1963 in Los ity of this business in avionics? to the cost of operation. Now the same thing Angeles. The president of the company, Wal- Yes, most Electro-Mech products are for the can be designed and produced, but at less ter Trumbull, was one of the first Americans avionic side of the industry. The company costs. Design is being incorporated in the to be part of the maquiladora program. This does also do some work with regards to the Mexican facilities as the machines are here program provided the opportunity for for- interior of the planes. There are companies and proximity to the product can play an im- eign companies to enter Mexico and estab- that are strong in interior design and they portant role. With proximity to the product, lish companies in the country without paying will buy our products and use it in their de- engineers can have a better understanding of value added tax on imports and about zero signs. Thus, the company’s products are also the operations. income tax. This helped to promote invest- used by tier one companies. Indirectly, Boe- ment in Mexico. ing aircraft would be the last destination of What are some of the major goals Electro- Switch Luz, Electro-Mech’s Mexican opera- our switches. Mech would like to achieve in the next five tion started in Mexico, stated with simple years? assemblies of parts of machines that were Does Electro-Mech train their own staff Electro-Mech can guarantee high quality manufactured in the US. In the 1970’s, most or is there sufficient training in schools? products at great costs. The goal is to work of the production went into slot machines for Electro-Mech has a very good bridge be- directly with engineers as to identify needs casinos but it become tough to compete with tween the past and the future and the com- and demands in the market. The aerospace the Chinese as they were making huge vol- pany is breeding our own engineers. There is industry is now moving towards using com- umes of switches. Switch Luz then started to a Mexican culture where education does not posite materials as to make parts lighter. For support other companies to open operations go beyond high school as of many different this sector we would like to make thinner, in Mexico under our umbrella. Switch Luz reasons like poverty. Our company encour- smaller and lighter products to exceed our was thus one of the first shelters in Mexico. ages and supports the young generation to customers expectations. •

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on the findings of the analysis, we came up manage GKN’s and our customers’ daily with a strategy to target developing indus- activities so that they can fully concentrate How important has the aerospace sec- AP: Currently the major hurdle is to over- tries like the aerospace industry and to de- on technical issues, production, quality and tor been for the EDC and how has the come the image that the region has in terms velop the supply chain of those industries. schedule product delivery. IVEMSA is re- organization contributed to the growth of safety and security. One of the biggest IVEMSA holds the majority of the compa- sponsible for taking care of the environ- of the sector? game changers has been promoting as a

nies that operate in the aerospace industry in ment, the buildings, and accounting issues. RN AP: The EDC focusses on four primary in- Mega-Region. A great example of our re- Mexicali. Aerospace is a growing industry Established companies keep using IVEM- dustries, which are medical-device manu- gional collaboration for investment attrac- in Baja and we are targeting the global sup- SA, as it is a certified company and offers facturing, electronics, aerospace, and auto- tion is the Paris Airshow, for which there plier base of our exciting customers. high-quality services. motive. In terms of the general aerospace was a large delegation from Baja Califor- environment in Tijuana, the organization is nia. The delegation was joined by Adriana How does the IVEMSA’s business model How does IVEMSA identify the needs approached by companies that are already Eguia, who is the Director of the CaliBaja work and what are the key services that in the aerospace industry and what is in the region for their expansion purposes. Mega-Region, and Mark Cafferty who is the company provides? your strategy to attract new companies AP The EDC tries to incorporate these com- the president and CEO of the San Diego IVEMSA helps companies to set up their to Mexico as to meet the demands of the panies in our activities so as to bring them EDC. Meetings were joint and opened a businesses in Mexico as to make sure that industry? more business or suppliers. The organiza- significant amount of doors for CaliBaja to these companies have a soft landing and IVEMSA puts together and attends various tion works on both nurturing the existing encourage companies to view the region as accomplish successful and productive op- seminars so as to identify industry demands industry and bringing new investment. an option for binational operations. Keep eration overtime in our country. We are and to attract new customers to Mexico. We Currently there are gaps in the supply in mind that CaliBaja encompasses San Sergio involved in all the tasks and duties related also have a marketing structure where we Rigel Navarro & chain for heat treatment and special pro- Diego County, Imperial County and the to site selection, managing employees HR, generate our own leads and we do not wait cesses, and the EDC tries to fill them with State of Baja California, so this is a really Tagliapietra talent recruitment and workforce develop- for the government to develop those leads Alejandra companies that are interested in being part complete support system for new compa- ment, buildings, customs, accounting, back for us but we cooperate with it in its ef- of our aerospace industry ecosystem. nies. office, supplies and all the things related to forts to attract investment. We truly believe Portugal the customer’s business in Mexico. IVEM- in doing teamwork with governments for a What type of relations does the EDC How does EDC attract companies in or- SA also introduces our customers to the cul- greater good, which is economic develop- nurture with your counterparts in the der to consolidate the supply chain? President and CEO RN: Executive Director ture of operating in Mexico. ment that benefits our different regions. Pro- United States as to facilitate exchanges AP: It is often challenging to attract com- IVEMSA AP: Aerospace & Defense, Business What are some of the biggest challenges México also offers help and referrals from Development Executive within the CaliBaja region? panies, as the industry requires many ap- when helping to establish a company within customers, which is very important in at- TIJUANA ECONOMIC RN: The CaliBaja Mega-Region initiative provals and certifications. The EDC tracks the aerospace industry in Mexico? tracting new customers and developing the DEVELOPMENT CORP. is something that has been in the works for down the demand of certain products and Infrastructure, education, the government, supply chain in Mexico. about six years. Companies that first -en services and creates awareness of these and bureaucracy are the main challenges Suppliers are not only sourced from abroad, tered Tijuana were merely for the purpose demands. The organization presents this that IVEMSA has had to face. As the com- but in some cases we will look for invest- of a cost-reduction strategy. As to follow information to companies that are already pany has a good understanding of doing ment into a local supply company as to de- the cost-reduction strategy, the EDC and certified and approved, to see if there is an business in Mexico, we can help our cus- velop the local company further. IVEMSA its U.S. counterparts have to collaborate. opportunity for them to expand their oper- tomers overcome these obstacles. wants to retain existing customers and part Can you give brief introduction to the Baja and the US are two different countries ations into the region. In some cases, larg- Can you give a brief introduction to Infrastructure will always be a challenge of the retaining process is to identify suppli- Economic Development Corp. (EDC)? that operate in the same CaliBaja region, er companies require the presence of a spe- IVEMSA and the history of the compa- due to the fact that most of IVEMSA’s cus- ers that meet the requirements of our cus- RN: The Tijuana EDC is structured as a which has an interesting flow of trade, hu- cific supplier in the region, and we assist ny? tomers come from developed and industrial- tomer’s operations in Mexico. chamber of commerce. It consists of pay- man resources, and communication. The with their soft-landing. The EDC will pro- IVEMSA was established in 1982 in Mexi- ized countries. Infrastructure development ing members, which makes it a non-profit, only limitation is the physical border. vide consulting services to interested com- cali, Baja California, Mexico. We have been is needed in terms of transportation, con- Do you have a final message for the inter- private trade organization. The focus of the panies as to advise them on how to proceed operating in Mexico for 33 years and ex- nectivity, and the ports. Import and export national aerospace community? organization is to have uniform practices What hurdles did the organization have with the establishment of their operations. panded into Tijuana, Ensenada, and Central issues also need to be minimized. With re- State and regions in Mexico differ from as to attract industrial manufacturing com- to overcome and what support can the In terms of skilled labor, the EDC has good Mexico, particularly Bajío area, with the gards to education, it is difficult to find the each other. The federal government needs panies to Tijuana. The founders and mem- EDC offer to companies looking to es- relationships with academic institutions idea to diversify the company. IVEMSA is proper people that meet the needs of the understand that and establish a public policy bers of the EDC are service providers for tablish themselves in the CaliBaja re- with the linkage committee in Tijuana that a well-diversified company and is mainly customer. The aerospace industry requires as to develop the northern part of Mexico. the manufacturing industry that are look- gion? can link academia with industry to develop targeting the electronic, medical, aerospace, highly qualified workers and the norms and The aerospace industry is a reality, and we ing to establish themselves in Tijuana. RN: In terms of the services that the EDC the human capital that the industry needs. automotive, and IT industries. Within our certifications are different from other- in need to sustain this industry by providing in- The EDC compiles industrial information can offer, our first focus is to promote the base of different customers, we have iden- dustries. To qualify employees for the aero- centives to investors. We need have policies about Tijuana that is required by potential city and show the region’s advantages. The Do you have a final message? tified great opportunities in the aerospace space industry is a challenge. to attract, retain and make our businesses investors for their feasibility studies. The EDC will present potential investors with RN: Mexico is a large playground, and industry. grow. information gathered by the organization a consultation session on how to get start- each region has particular advantages and IVEMSA did a complete analysis of the GKN has been established in Mexico for Aerospace companies must also adapt their is free of cost. The EDC is also involved ed. All aspects, like taxation systems and differences. The EDC can explain the ad- Baja region and identified that the aerospace a significant amount of time. What is the own local supplier development policies to in retention and expansion activities. This the IMMEX Program (commonly referred vantages and differences of each and find industry was not completely developed and nature of the work IVEMSA does for truly increase the number of Mexican com- means that the organization does linkage to as maquiladora program), are covered. the right fit for a certain company’s busi- was still a growing industry compared to GKN today? panies in the value chain. If more local con- activities between companies, schools, Investors can also raise concerns, and the ness strategy. With the maquiladora pro- other industries that were almost absolute. Currently, IVEMSA administers GKN’s tent is integrated to the aerospace products government, and suppliers. EDC will focus on those areas as to make grams, advice to succeed is readily avail- We then reviewed the chain value of the business in Mexico. We are involved in its made by these foreign companies, costs will In simple terms, our main job is to assist them feel more comfortable. The organiza- able. Tijuana is constantly developing products and found that the industry was imports and exports and also hire people so be minimized and the sector’s competitive- companies who are interested in setting up tions main services are providing informa- skilled labor, which is a great advantage to substantially based on low labor cost. Based as to meet the demands of the company. We ness will be boosted. • operations in Mexico. tion, guidance, and professional referrals. expanding companies. •

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CHIHUAHUA: A WORLD- CLASS CLUSTER MORE DESERVING OF THE SPOTLIGHT

“Chihuahua's division for aircraft equipment forms Safran’s largest operation, with 7% of all Safran Group’s employees at the Chihuahua site. We ship half a million harnesses a year to our customers, making us the largest wiring facility in the world.”

- César Díaz de León, Director of Operations, Safran Labinal Power Systems Chihuahua " Image: Zodiac Aerospace EDITORIAL Global Business Reports Global Business Reports EDITORIAL

INTRODUCING THE AEROSPACE INDUSTRY IN CHIHUAHUA

Image: Textron International Mexico

Quickly soaring to new heights, Chihuahua’s aerospace industry own in Chihuahua City in 2005. Since then, Chihuahua’s aero- proves that Mexico offers potential for development and com- space sector has grown exponentially, attracting more than $1.5 petitiveness in facets far beyond affordable labor. Recognized as billion in investment. As a potentially foreboding example, the one of Mexico’s most promising hubs for expertise, Chihuahua original major aerospace investor in the state, SAFRAN Labinal, City established as many as 36 aerospace factories in a five-year now claims the largest wiring shop in the world, as its Chihuahua span between 2008 and 2013; the grand total has since expanded facility employs nearly 4,000 people. to include five original equipment manufacturers (OEMs) and 37 certified suppliers. Less than two decades old, the sector was ignited by the entrepre- Foundation of Strong International Players neurial whims of local pioneers—Luis Lara of American Indus- tries, de León of SAFRAN Labinal and the foundational FEMIA Housing five of the seven OEMs that are present in Mexico, in- team, as well as José Luis Rodríguez of Fokker Aerostructures, cluding Cessna, Beechcraft, Textron International, Honeywell to name a few—and facilitated by the region’s automotive ma- aerospace, and EZ Air Interior Ltd., Chihuahua’s facilities are quiladora history. There are still gaps to be filled, but Chihuahua notably larger in comparison to other Mexican operations. Oc- remains an underrated aerospace destination given its present ca- cupying over 2 million square feet (sq. ft.), Honeywell’s presence pabilities. in Chihuahua is undoubtedly leading the trend of expansion for aerospace in the city. With 1,200 computer numerical counting (CNC) machines, Honeywell has the largest concentration of Textron International Mexico. “Also, the Bell 429 had another 2018, of which all the interior parts will be manufactured in Chi- History high-precision machines in Latin America. Specializing in turbine strong year, with over 50 deliveries, particularly in the para-pub- huahua,” explained Luis Carlos Ramírez, general manager of EZ parts and components for commercial and military aircraft, Hon- lic and emergency medical services segments.” Air Interior. The city of Juárez, located on the El Paso-Texas border, was the eywell also recently opened its new engineering design center for From start to finish, a Bell 429 aircraft takes about 3,000 man The electrical wiring design for the Boeing 787 aircraft also origi- headquarters of Mexico’s maquiladora ascendance in the 1960s. automotive and electronics at the close of 2015. “Honeywell’s ex- hours to complete before it can seek certification. Bell Helicopter nates in Mexico, more specifically from SAFRAN Labinal’s de- Juárez was home to one of the first industrial parks servicing ma- pertise in this facility could be transferable to applications in the hopes to magnify its branding as innovation experts in the rotor- sign office in Chihuahua. Though the main focus of design is on jor international automotive and electronics brands. The indus- aerospace sector,” notes Sergio Almada, marketing and business craft industry by introducing new models, such as the 525 Re- electrical and connecting systems, recently, it has become more trial background and mechanistic culture of the state provided a development manager of Intermex Industrial Parks, the company lentless and 505 Jet Ranger X. Any activity that takes place in involved in aerostructures, “which is especially positive given the sturdy foundation for the transition into aerospace, which was set supplying Honeywell with its new real estate. Chihuahua concerning the new aircraft will likely have a focus on lack of expertise in aerostructures wiring in Mexico,” explained in motion after Luis Lara seized an opportunity granted from a Cessna was the first company to initiate aerospace patent registra- structural elements, a theme very prominent in the overall aero- Cesar Díaz de León, director of operations at SAFRAN Labinal single acquisition. tion in Mexico and is another major client of Intermex. Occupy- space activity of Chihuahua. Power Systems. Lara initially had a difficult time catching the attention of the in- ing over 1 million sq. ft. of assets, Cessna Chihuahua is actively Interiors is another noticeable concentration of Chihuahua, ex- While technology continues to advance, the demand for electric- ternational aerospace community: “We managed to convince a involved in composite processes, but mainly creates harnesses for emplified by the unique establishment of EZ Air Interior Ltd., a ity onboard aircrafts increases as well. Being light weight and company in the defense sector,” he explained, “and a plant was electrical systems and conducts sheet-metal machining. Cessna joint venture between Zodiac Aerospace and Embraer. Formed efficient, electrical wiring will replace the hydraulic, mechanical built to supply the F-16 Fighting Falcon.” constructs around 90% of the Corvalis plane from its facility in in 2012 with the goal of consolidating interior parts production, and pneumatic systems of older aircrafts. “SAFRAN sees this as Through General Dynamics and its subsidiary Aerotek, Lara Chihuahua. Merged under the title Textron Aviation, Cessna and EZ Air Interior was erected in proximity to the already success- a large opportunity in the power systems area…This particular di- worked to attract additional aerospace projects to Chihuahua in Beechcraft both produce structural components for fuselages, ful Zodiac Chihuahua campus, which consists of nine different vision for aircraft equipment forms the largest company of SAF- the 1990s, fighting both the uncertainty of locational nuance and wings and aircraft cabins. operations divided across five impressive plants. The uniqueness RAN in the world,” says Diaz. the decline in aircraft demand following the end of the Cold War. Textron International, however, is currently generating and as- of this OEM’s functionality is that the supplier and the client are The Chihuahua facility alone ships half a million harnesses per Aerotek eventually won the bid for supplying Airbus 319 and Air- sembling more than 60% of the complete Bell Helicopter from both owners of the company, and its parents are among the largest year to its customers and 7% of all SAFRAN Group’s employees bus 320 harnesses, continued on to work with leading business-jet its Chihuahua location. This particular facility, which opened in aerospace companies in the world. EZ Air Interior manufactures are at the Chihuahua sites. Along with the companies in Queré- manufacturer Cessna, and was acquired by the multinational sys- 2009, focuses on assembling the Bell 412 and 429 helicopters, the all interior parts of the aircraft, except the seats, from start to fin- taro, SAFRAN is Mexico’s largest aerospace employer. SAFRAN tems-and-equipment supplier SAFRAN. After years of planning, demand for which remains steady. “The selection of the 412 by ish, 90% of which are exported to Brazil. “The next few years are Labinal Chihuahua’s new plant was inaugurated in February of preparation, and promotion via the public and private sectors, the Japan Ministry of Defense illustrates the demand for proven going to be a consolidation period of philosophy and mindset. 2016 and will be developing the wiring for the Triple 7, the 737 Cessna, Honeywell and Beechcraft installed facilities of their and reliable aircraft,” explained Luis Azúa, general manager of Embraer aims to deliver the first E2 aircraft in the beginning of and the 8350 aircraft models of Boeing and Airbus. •

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hua it is one out of two. Over 75% of the FDI it was an easy transition into aerospace’s ef- education facilities. It is critical to review ter and, when paired with collaboration, in- and 20% of GDP recorded by Chihuahua is ficiency and quality driven processes.- Chi the curriculum of academic tracks towards creased productivity is inevitable. manufacturing related. huahua houses one of the most advanced careers in our industry, such as engineering precision machining operations centers in majors, so that we can assure that the knowl- Joint ventures and mergers and acquisi- Why is Chihuahua such a competitive in- the world belonging to Honeywell, operating edge that students gain will directly transfer tions seem to be more common in Chihua-

vestment destination? What types of inter- more than 1,100 CNC machines in a 400,000 RE into the field and fulfill industry needs. The hua than in Baja California or Querétaro. national companies are already established ft2 facility here in Chihuahua. In the aero- second pillar is supply-chain development, Why is this? here? space sector, there are over 45 companies— working with all of our various entities in Chihuahua is historically known for its man- Due to the 45 free trade agreements between including five out of the seven OEMs in Mex- developing our local suppliers and attending ufacturing. Many international companies Mexico and its allies, we have access to 1.2 ico, accounting for over 17,000 employees. the specific requirements that our companies find solace in the knowledge and expertise billion consumers. Every day, more than 1 Aerospace has experienced $2 billion in in- need in order to complete the missing links of our local entities, as they have a better million people and 300,000 vehicles cross vestment, $2 billion in exports and $1.5 bil- in the supply chain. The third pillar, technol- understanding of the market. There are also the border between Mexico and the United lion in imports over its lifespan in Chihua- MV ogy, is governed by a technological roadmap groups of investors with backgrounds in au- States. Chihuahua accounts for 20% of the hua. Aerospace has more than 5 million sq. that was developed in 2013, identifying 27 tomotive and manufacturing that are looking total crossings, with 11 border crossings and ft. occupied by industrial buildings, which key technological packages that will steer to expand into the aerospace industry, mak- six ports of entry. will increase by 75% in 2016 alone, due to Chihuahua towards a more prosperous 2023. ing joint ventures with a Chihuahua compa- Chihuahua is an optimal business destination the known impending investment projects. The fourth pillar is promotion, in which we ny extremely attractive. as portrayed by the $7 billion USD invested With these new projects, Chihuahua is soon work in collaboration with the major indus- Stemming from the promotion pillar, the Manuel in our state over the last five years through to be the largest producer of aerostructures in Rene Espinosa & trial promoters and the government to en- cluster is now looking for companies that 185 new investment projects, creating more Mexico. hance the image of our sector. The final pil- will complement what we already have es- Russek than 160,000 new jobs, and the lowest rate of Juarez is one of the largest manufacturing Mónica Vega lars are certification and infrastructure. The tablished in Chihuahua. We aim to be precise informal employment. This is important be- centers in Latin America, and there are a overall vision is to strengthen the region not in our choices, targeting those who can best cause it translates into a higher quality of life. handful of aerospace companies operating only by bringing in additional companies steer us in the right direction with our vision. The state of Chihuahua has 3.5 million in- there. In Chihuahua City, 20% of our indus- and investment, but also by promoting and In our experience, some large companies habitants, only 3% of Mexico’s total popu- trial park space is devoted to aerospace, and pushing the involvement of local companies. have relocated to Chihuahua spurring invest- Secretary lation, yet we manage to secure the second growing. American Industries and the gov- RE: President ment and employment but are not expanding MV: Cluster Manager SECRETARIAT OF ECONOMY, most FDI in the nation and generate the larg- ernment have already set aside space for an With regards to membership, who are the the supply chain. AEROSPACE CLUSTER CHIHUAHUA STATE est number of employees in the exporting and aerospace park next to our airport. major players driving the growth of the Since it borders to the United States, Chi- GOVERNMENT CHIHUAHUA, MEXICO manufacturing industry. 30% of Chihuahua’s region? huahua’s export manufacturing industry has total population is studying in the state. Each What current plans are underway that Honeywell Aerospace, Textron Aviation (a grown exponentially in comparison to other year, more than 5,500 engineers and more portray how drastically aerospace will merger between Cessna and Beechcraft), regions of Mexico. than 37,000 students skilled in trades gradu- change in the short to medium term? Bell Helicopter, and a really interesting joint ate from our schools. Though we do not have By evaluating different technology packages, venture between Embraer and Zodiac, called As a final message, can you pinpoint some as many companies as Baja California, we the government has a clear understanding of EZ Air, comprise the list of original equip- of the key strategic advantages that Chi- have larger facilities to accommodate a great- our areas of opportunities. To accelerate the ment manufacturers (OEMs). EZ Air is con- huahua has to offer? Please give a brief overview of Chihua- er workforce. Chihuahua’s strong range of advancement of technology we have invited a Please provide an introduction to the Chi- sidered the fifth out of the seven OEMs in The most obvious advantages are our loca- hua’s current economic situation, and its industrial clusters consists of over 550 world- group of entrepreneurs to evaluate and invest huahua Aerospace Cluster, highlighting Mexico. tion close to the border and experience in status concerning foreign direct invest- class companies. in the betterment of the aerospace develop- the key initiatives to date. Also, we have certified world-class compa- manufacturing. Yet the integration and the ment (FDI)? Chihuahua has the largest area of industrial ment. These experts plan to buy international The Aerospace Cluster of Chihuahua’s foun- nies such as SAFRAN Group (number one synergy among all of the members of our Chihuahua is one of the preferred locations real estate in Mexico, with 80 million sq. ft. companies and bring them here to supply the dation is a triple-helix model, revolving employer in the Aerospace industry in Mex- industry is the driving factor towards pres- to invest in Mexico due to five main reasons: of facility space, 7 million sq. ft. of which local market. Chihuahua has many great busi- around the synergy of educational institu- ico), Zodiac Aerospace with nine different, ent and future success. The members of the strategic location (right next to two US Bor- is still available. Ford is going to build a 1 nessmen with even greater resources that can tions, the government, and the private sector. diverse divisions ranging from emergency cluster, educational institutions, federal de- der States), talent availability (skilled human million sq. ft. engine facility here worth 1.3 buy key components and stabilize operations The cluster began to formalize in late 2007 systems, water and waste systems, to seat partments, human resources, and industrial resources), state-of-the-art infrastructure, billion USD, hiring 1,500 new employees to here. and chose this model to encourage integra- designs and manufacturing, Fokker GKN promoters are all collaborating in order to specialized training and educational centers produce the new generation 3 cylinders, 1.5 As a government we have been collaborat- tion between the main players of each critical and many more. Over the past five years, the understand the needs of our sector. Instead as well as an attractive market with a sup- L engine—manufactured in its entirety in ing with the OEM’s such as Boeing, Embraer, element. The cluster operates under the as- cluster has developed a strong competence of competing, we are merging forces to ply chain that provides maximized profits. Chihuahua and sent to locations around the Airbus, etc. to understand what is needed for sociation of Export Manufacturing Industry, in aero structures and machining, serving the achieve even more. For example, Fokker Skilled labor is not merely generated by ex- world. Our business friendly environment is Mexico to have a final assembly plant. This Index Chihuahua, which is present in most major OEMs in North America such as Boe- GKN brought wing assemblies to Chihuahua cellent training; rather, it’s a result of hav- partially attributed to our lack of unions. research will focus our efforts on developing major cities in Mexico. Through Index, the ing, UTC, Triumph, Bell Helicopter, Bom- for Honda Jet. In order to bring that project ing decades of workers in the manufacturing the additional airport infrastructure, which Secretary of Economy and the Secretary of bardier, etc. to our state, we efficaciously merged forces environment, which translates in a safe labor What role does aerospace play in Chihua- will consist of an R&D technology park, an Education as honorary members, and all the Textron Aviation, for example, has impres- bringing new process certifications, machin- environment. hua’s economic footprint? MRO presence, strategic suppliers, aircraft companies along with the major industrial sive facilities, one of them dedicated to com- ing and sheet metal capabilities through In terms of employment, FDI and GDP by The headquarters of Mexico’s entire maquila- painting, an assembly plant and a demolition representatives participate in our endeavors. posites in which approximately 90% of one current suppliers established in the region, sector, Chihuahua has a vocation of manufac- dora program was actually located in Juarez, and recycling center. Investors and entrepre- The Chihuahua Aerospace Cluster has six of their models is constructed. Honeywell resulting beneficially for seven different turing, engineering and design because more but the aerospace industry started in Chihua- neurs, both foreign and local, are already in- main pillars, which set the precedent for our Aerospace also has over 1,200 CNC ma- companies. As a cluster, we continuously than half the total employment is educated in hua in 1990 with the establishment of General volved in making this idea a reality. The time- current initiatives. First, we have the pillar chines in Chihuahua, which makes this op- aim to provide these types of creative busi- those areas. In Mexico, one out of every four Dynamics. Fostered by the experience gained line will depend on the market and the MRO of academic entailment, which encompasses eration the largest high precision machining ness opportunities that will help grow our in- jobs are located in manufacturing; in Chihua- from the automotive and electronic sectors, integration. • the work that we do in collaboration with center in Latin America. It is a diverse clus- dustry and local capabilities. •

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in demand for our services as a result of 2016, how do you plan to attract foreign laser equipment to cut and mark the wire will grow and thus the demand for more the Cold War, so I turned to the United companies in terms of human capital and the electrical equipment used to test electricity on board. Safran sees this as a States. At the time, Boeing was not inter- and the quality of labor in Mexico? all wiring before it is taken to the assembly large opportunity for the electrical power ested in establishing itself here or procur- We must show companies that skilled line. Given that Safran is a tier-one sup- systems area. Given the pressures airlines ing components in Mexico. Airbus began labor exists in Mexico and set up agree- plier, products are directly shipped to the are facing to make planes lighter and more to require harnesses for the Airbus 319 and ments to work with American universities customers and installed directly into the efficient, the light weight of the electrical Airbus 320, and my company, Aerotech, to bring talent and training to Mexico in aircrafts, which requires the company to be wiring is an additional benefit. successfully won the bid to manufacture order to certify more workers. The compa- extremely thorough in its testing. them. Another opportunity arose doing nies to which we sell these services have How significant are the Chihuahua op- business more logically through Labinal, their own certification processes. Accord- Where does Safran recruit its employ- erations in relation to Safran Global? which was part of a French conglomerate ing to our knowledge, there are 25,000 ees? What sort of training do they re- This particular division for aircraft equip- called SAFRAN group and, as a result, I airplanes flying in and out of the United ceive? ment forms the largest company of Safran sold my company Aerotech to them and States on commercial aircrafts. We would Depending on the different positions, there in the world. It ships half a million har- continued facilitating their growth in Chi- be happy to have 10 of those planes every are different training programs in place. To nesses a year to its customers and 7% of huahua from near 500 people in the be- month to maintain, and Chihuahua has the best monitor and support them, the trainees all Safran Group’s employees are at the ginning to around 4,000 employees in the knowhow for maintaining planes, replac- are given green jackets for the initial three Chihuahua sites. Along with the companies area. ing components, and servicing them fully. months. After those months, they take ex- in Querétaro, Safran is Mexico’s largest After Airbus, we continued on to work ams to measure their productivity and skills aerospace employer. Luis with Cessna and started bringing in more How many new aerospace companies César and become certified Safran production as- suppliers and creating new clusters. We will we see establish themselves in Chi- semblers, graduating to blue uniforms like How does Safran view the local supply Lara currently have 38 companies with approxi- huahua in the coming year? Díaz de León the other operators. chain? Where do you think there are still mately 14,000 people in these clusters, and In the aerospace industry, we are expect- Safran has over 250 engineers, many com- opportunities? I continue to construct buildings for these ing two sectors to develop strongly: the ing from the technical universities in Chi- It is in Safran’s best interest to develop its clusters, which was my original business. first one is the MRO maintenance, which huahua. In 2006 Safran, with government supply chain in Mexico. It has operations Currently, Boeing is competing with Air- includes fuselage, engines and moving aid, pioneered the study abroad program in Querétaro, developing engines and land- Chairman of the Board & CEO Director of Operations bus internationally, and Mexico is becom- components, and the second one is the pro- EPEX (“Estudiantes de Practicas en el Ex- ing gears, and they are working to develop AMERICAN INDUSTRIES ing a key player in the global aerospace vision of components for aircraft interiors. SAFRAN LABINAL POWER tranjero”), sponsoring seniors in college the supplier relationships through invest- industry. In total, we are expecting approximately SYSTEMS CHIHUAHUA for six months to one year internships at ments and government aid. Safran Labinal six or seven companies to relocate here in major engineering companies in the Unit- has grown its supplier base in Chihuahua, Can you elaborate on the maintenance, the next two years. In the future, we hope ed States (specifically Seattle, Dallas and and is still working to relocate additional repair and operations (MRO) project? to see this number increase, as it is crucial Salisbury) and Toulouse, France to develop suppliers in Mexico. The primary objective was to bring an as- to our business and the continual develop- their talent. Safran has sponsored over 150 sembly plant for Airbus or Boeing, both of ment of the local economy. engineers throughout the past 10 years. Can you tell us about the new plant and which went to Querétaro. In reference to Most of the students are coming from the the expectations for it? cost, maintaining an MRO requires 70% Do you have a final message for the in- Can you provide a brief history of Saf- design office; however, their growth is not In the new plant, Safran will be develop- Can you provide a brief overview of of labor and 30% of materials; engine ternational aerospace community? ran and its current operations? merely technical, it is holistic. They gain ing the wiring for the 777, the 737 and your background and how you got in- overhauls require 40% of labor and 60% The aerospace business utilizes global Safran Labinal began operations in 1998 cultural and linguistic knowledge and their the A350 aircraft models for Boeing and volved in the aerospace sector in Chi- of materials; maintenance of electronics manufacturing—Airbus and Boeing are with the acquisition of Aerotec, a company minds are more globalized. Airbus. There are approximately 660 em- huahua? and components requires 20% of labor and investing in the United States and assem- founded by Luis Lara back in 1990. Safran ployees in it and Safran hopes to reach 700 It was a local entrepreneur that encour- 80% of materials. A company’s main sav- bly plants in Shanghai. Boeing is creating has been pioneering the aerospace industry What activities or accomplishments has employees. The plant will add capacity to aged me to get involved in bringing for- ings come from conducting maintenance a subcontract of assembly, an offset deal in Chihuahua, the company has expanded the design office achieved? the happenings of our other plants, which eign companies to Chihuahua City, which for the MRO offshore in China, Sri Lanka, for Boeing in Shanghai, because it is ques- the operation from approximately 350 em- The design office is mainly focused on is electrical wiring for the aircrafts. Safran is a difficult task given that the El Paso Poland, or Mexico, given that a majority tioning the cost savings from assembling ployees in 1998 to 4,316 today. electrical wiring, the connecting systems. has seen steady growth since its beginnings border offered clearer opportunities. How- of the cost is labor-induced. The price of in China for an order coming from the Expansion began almost immediately after Recently, it has become more involved in and it needs to focus on maturing its work ever, we managed to convince a company maintenance for a commercial airline per United States. Airbus is turning towards buying Lara’s business with the acquisi- aero structures, which is especially positive force and processes now. in the defense sector to supply the aero- hour is about $90. Chihuahua can provide China to reduce their costs and be cost- tion of 70,000-square-foot (sq. ft.) in the given the lack of expertise in this area in space industry here, and a plant was built this service for $50 and make a profit. An competitive. Americas Industrial Park (Parque Industri- Mexico. Furthermore, they built the entire Is there a final message you would like to for the General Dynamics F-16 Fighting Airbus 320 requires 150 qualified people In 1990, Boeing said that they would not al Las Americas). Three years later, Safran electrical wiring interconnection system send our international aerospace read- Falcon assignment. A company called to conduct 200 hours per month of this consider building anything outside the opened its 100,000-sq.-ft. plant, which lat- design for the 787 program. ers from Safran in Chihuahua? Aerotech was established. Then, after a work, 12 months a year. Examining 10 state of Washington. Almost 30 years lat- er became a 303,000-sq.-ft. plant, making Safran Labinal is very happy to be here in few months, became our planes, which involves 1,500 personnel, if er, Airbus has won 35% of world market it the largest wiring factory in the world. What are the trends you have seen in Chihuahua and has the confidence in both customer, since they bought the F-16 pro- an airline can save $50 per hour per plane share and Boeing has lost market share Today Safran provides support for 10 cus- terms of electrical systems? How has the skills and enthusiasm for learning that gram from General Dynamics, and they for 200 hours per month, 12 months a year, in the commercial aircraft space. Not be- tomers worldwide, including Boeing and technology advanced to better those sys- its employees exhibit. We are thankful for eventually discontinued manufacturing they are looking at incredible savings by ing competitive has cost Boeing approxi- Airbus, and within the next couple of days tems and processes? the immense government support as well certain metal products. I took the opportu- availing our services. mately 40% of world market share. We are we will be opening another plant in Chi- Aircrafts will increasingly become more as that from the educational institutions, nity to buy them out through Aerotech. In willing to be their partner and help them huahua, adding 700 more jobs to the area. electrical, replacing the hydraulic, me- both of which have been instrumental in the 1990s, I sought commercial opportuni- Given that the industrial space for aero- reduce their cost in order to increase their In this particular plant, Plant Two, the best chanical and pneumatic systems. With this Safran’s success and journey to where it is ties to increase volumes due to a decrease space is expected to increase by 75% in competitiveness. • asset is Safran’s people. Safran has the in mind, the importance of electrical wiring today. •

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Bell Helicopter’s building is LEED Silver The long-term view of the rotorcraft indus- lets, and water and waste composite tanks. see great opportunities to grow locally ac- certified, has a clean industry certification try remains positive. We expect 2016 and cording to the drive of business. Buildings from the Mexican authorities, and is certi- 2017 to be like 2015 and remain relatively Why was Chihuahua specifically chosen can be extended when needed, as we have fied by DGAC and AS9100. We have an flat. Yet we expect the market to pick up at for Zodiac Aerospace’s further expan- a total of 77,000 sq. feet reserved on cam- internal certificate of compliance for our the tail end of 2017 into 2018. sion in Mexico? pus. Availability of labor is the steepest electrical harnesses, which are inspected Zodiac Aerospace is a large group that is challenge at present. There is a great deal and tested in-house. In 2012, the Chihua- Is there anything currently in develop- balanced between Europe and the United of demand, and over the next six months, hua facility received the president's award ment that will enhance productivity? States. Back in 2005, we reflected on our around 5,000 maquiladora jobs will be for safety performance from Bell Helicop- As part of its pursuit of excellence and con- industrial strategy with the intention to created, leaving a poignant question of ter and Textron. Safety is a key focus, as tinuous improvement culture, Bell Helicop- develop content in cost-competitive coun- whether or not the human capital will ex- is lean manufacturing. We are continuously ter is currently looking for opportunities to tries. For logistical reasons, our approach ist. Last year, 150 people to 200 people improving quality, safety, and environment. incorporate ‘autonomation’ into many of its has been focused on countries that were were visiting our recruitment center every operations. Autonomation is the right level either close to the homeland and systems day in hopes of being hired; whereas now- The Chihuahua facility assembles cabins of automation with human-operated tools. control or close to our customers. Chihua- adays, it might take a full week to receive and electrical harnesses, provides struc- Since one of the most repetitive operations hua is close to the United States, and close such an amount of candidates. It is getting tural assembly services, conducts electri- is drilling on composites, the company is to our seat facility in Gainesville, Texas. difficult to find the skills that we need. If cal testing, etc. How many employees are creating a station that will allow it to drill It also has an impressive industrial history, the work-pool is drying, we need to work on-site, and how do you source the talent hundreds of openings with the required lo- as it has been developing manufacturing with the authorities to bring more people Luis to produce such a diverse portfolio? cation and precision in combination with Baptiste activities since the 1970s in the automotive to Chihuahua. Our growth can only be re- Bell Helicopter’s manufacturing facility the human touch, to increase productivity industry. In 2005, many international aero- flective of human talent. Azúa in Mexico is home to approximately 370 and quality, while making it safer for the Valois space companies began scouting Chihua- workers. The company maintains in-house operators. hua, and Zodiac Aerospace was one of the Through what means of innovation is customized training and certification for The goals for 2016 include limiting acci- aerospace pioneers that first established a Zodiac Aerospace able to reduce the manufacturing employees working on the dents, reducing DPA, minimizing scraps, location here. weight of onboard equipment to im- shop floor as part of its operation teams. achieving on time completion and delivery, Among over 100 sites around the world, prove aircraft performance? General Manager General Manager We can effectively train up to 24 people reducing down time and hours per aircraft, Chihuahua’s campus is now the biggest Material choice is a strong driver. Replac- TEXTRON INTERNATIONAL ZODIAC AEROSPACE EQUIPO per shift. Talent is found from a variety training and developing of employees and site of Zodiac Aerospace, and Mexico is ing metal parts with composite parts when MEXICO S DE RL DE CV DE MEXICO of sources, including excellent local insti- realize 99.2% employee retention. Al- the third largest country site after the Unit- possible is an area of Zodiac Aerospace’s tutions such as: Instituto Tecnológico de though we can increase our output, Bell ed States and France. Chihuahua has the expertise. We try to reduce the number of Chihuahua (ITCH), Universidad Autóno- Helicopter is currently meeting our cus- most Zodiac Aerospace employees, which components needed to develop the final ma de Chihuahua (UACH), Universidad tomer demands. number around 3,000 people, not counting product, but also think ahead about the Politécnica de Chihuahua (UPCH), insti- EZ Air Interior Ltd., the joint venture be- passenger experience. For example, we are tuto Tecnológico de Estudios Superiores de Where does Bell Helicopter hope to be in tween Zodiac Aerospace and Embraer. Our replacing heavy, centralized in-flight -en Monterrey (ITESM), Universidad La Salle. two to five years? aero evacuation systems plant is the only tertainment systems with passenger-cen- Cenaltec also played a very important role Bell Helicopter is expanding its position as facility in Mexico with FAA-authorized tric ones where passengers can use their Operating under Canadian Textron, Bell during the start of our operations, as many the innovation experts in the rotorcraft in- Can you provide a brief history of Zo- personnel who can release final, airworthy personal devices to enjoy and display their Helicopter is one of the leading helicop- of our employees were trained at this cen- dustry by upgrading existing products, de- diac Aerospace’s presence in Mexico products with FAA tags. From Chihua- videos. This reduces space and weight, and ter original equipment manufacturers ter. Additional talent has also come from veloping derivatives, and introducing new and the span of its footprint thus far in hua, we are shipping directly to custom- creates new entertainment experiences. in Mexico. Please give an overview of its other areas of the country. Furthermore, we models, including the 525 Relentless and Chihuahua? ers, which was the global office’s intention We are proud of our design activity, which presence in Chihuahua? offer an internship program to help develop 505 Jet Ranger X. These models showcase Zodiac Aerospace started operating in from the start. We want to grow from raw represents 130 people here in Chihuahua Bell Helicopter has operated in Mexico and promote young engineers and techni- the company’s capabilities. Additionally, Mexico in 2005 with the acquisition of materials and processes to finished prod- working mostly on seats. Over the last six since 1964, and continues to have a grow- cians. Bell Helicopter is upgrading existing and C&D Aerospace, which had a facility in ucts and, though we are not at that stage years, this team has supported the devel- ing local presence. In 2009 we opened this exploring new military-focused products Tijuana since 1992. The Tijuana facil- with everything we produce here—we are opment of more than 70 programs while 125,000-sq.-ft. manufacturing facility, Tex- What products and services are pres- including the development of the next- ity now consists of four plants and over also part of an internal supply chain, where reaching worldwide recognition for its in- tron International Mexico, in Chihuahua, ently in greatest demand? generation tiltrotor technology (V-280) for 2,000 people dedicated to cabin interiors. some of our facilities supply other Zodiac novative concepts with the Red Dot awards which supports many components for Bell The Bell 412 continues to be in demand in future product offerings. A key focus is on In Chihuahua, Zodiac Aerospace started Aerospace facilities—maximum value ad- in 2014 and 2015. We are competing again Helicopter’s commercial product line. The regions where customers need a reliable, executing current commercial and military in 2006 with the manufacturing of evacua- dition is the goal. Water tanks and toilets this year for the Crystal Cabin award that company has also two authorized customer modern aircraft that can serve multiple programs, including the UH-1Y, AH-1Z tion slides, and has grown since then from will hopefully be our next final products to will be delivered at the Aircraft Interior service facilities that provide aftermarket missions – search and rescue, parapublic, and V-22 programs with an increased fo- one operation to nine operations, working be drop shipped from Chihuahua. Exhibition with our posture seat concept, support and services. In 2014, cabin-as- utility, etc. We see tremendous opportunity cus on the mission requirements of mili- across five plants, 56,000 sq. meters, and a concept that was fully developed in Chi- sembly capabilities were transferred to our for the 412 and the 429 in the parapublic tary customers as well as pursuing inter- 3,000 employees. All of the three business What challenges are affecting Zodiac huahua in cooperation with universities facility in Mexico and, in 2015, Bell He- segment. The selection of the 412 by the national opportunities for these platforms. lines of Zodiac Aerospace—cabin interi- Aerospace’s growth in Chihuahua? and partially funded by CONACYT. This licopter opened an office in Mexico City, Japan Ministry of Defense illustrates the Bell Helicopter also plans to strengthen ors, seats and aerosystems—are represent- In Chihuahua, Zodiac Aerospace has posture seat moves in coordination with which serves as the hub of sales operations demand for proven and reliable aircraft. cost competitiveness through continued ed through the wide variety of products achieved significant growth thus far, add- the passenger, as all of the parts in the back in Mexico. The Bell 429 also had another strong year, improvement in worldwide manufactur- manufactured here, such as evacuation ing 2,000 people and 25,000 sq. meters of the seat are mobile and adaptable to hu- with over 50 deliveries, particularly in the ing productivity and modernizing business slides and rafts, seat subassemblies, elec- to our facilities in the past three years. man motion and attitude. Not to mention it What certifications does Bell Helicop- parapublic and emergency medical services systems. Employees in Chihuahua are an trical subassemblies, harnesses and con- Though the Zodiac Aerospace Group has is very light. • ter’s Chihuahua facility hold? segments. integral part of these plans and footprint. • duits, cockpit panels, composite shells, toi- an objective of consolidation for 2016, we

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Brazilian and 50% of the company is French. chain? Most of our designs and corporate services There is still a significant amount of gaps BUILDING come from the United States. Thus, the com- in the local supply chain of Chihuahua, and pany is a unique blend of many different na- development is still in its infancy with pro- tionalities. gression being very slow. Initiatives, like THROUGH business-to-business encounters, have been What are the differences between EZ Air put in place to help stimulate change, but COLLABORATION Interior Ltd. and other OEMs and manu- to increase the growth rate there should be facturing companies in the Chihuahua government policies that create investment Synergy in the Industry aerospace cluster? incentives. Homegrown Mexican companies The integration of the company is our main need assistance to be properly prepared for differentiator. EZ Air Interior Ltd. has no the level of demand from the aerospace in- corporate office, but rather has two parent dustry. companies, which are among the largest Some of our tooling parts have been devel- aerospace companies in the world. EZ Air oped in partnership with local suppliers. We Interior Ltd. tries to make its own decisions provide training to our local suppliers by while still remaining in harmony with both sending them to the United States to acquire Zodiac Aerospace and Embraer. The unique knowledge and skills. Initiatives like this Luis Carlos integration is that both the supplier and the should be propagated in more companies Chihuahua’s differentiation from other maquiladora states most- client are the owners of the company. with the participation of authorities and the ly lies in its location and multi-angled collaboration. Firstly, its Ramírez interests of the national community. proximity to the world’s most demanding aerospace client, the Can you elaborate on the processes and United States, can be broken down into a variety of convenience products EZ Air Interior Ltd. provides? What opportunities does EZ Air Interior factors. Other maquiladora hubs rest closely to the U.S. border, EZ Air Interior Ltd. creates a product from Ltd. see for the near future? but Chihuahua’s centrality and organization saves time logistical- start to finish. This means that we initiate the Development will be quite difficult as the ly. More than 1 million people cross the border between Mexico General Manager process with raw materials, which are trans- structure of the company is currently lim- and the United States each day, one fifth of whom utilize one of EZ AIR INTERIOR LTD. formed and manufactured into the different ited. We have aggressively grown since our Chihuahua’s 10 crossing stations to and from Texas or New Mex- parts for the interiors of Embraer cabins. All establishment, and currently we are stabi- ico. Chihuahua City’s airport services flights to the United States, parts of the interior of the aircraft, except the lizing our operations. The aim is to remain but is still relatively limited in destination diversity. “Due to the seats, are pressed, cut and assembled by us, steady in our work and focus on optimizing 45 free-trade agreements between Mexico and its allies, we have here in Chihuahua. productivity with regards to quality and the access to 1.2 billion consumers,” stated Lic. Manuel E. Russek, expectation of costs. We have a very aggres- Secretary of Economy of Chihuahua, “…Chihuahua is driving the Is Chihuahua a good environment for oth- sive training plan for our employees, send- economic development of the nation.” er aerospace joint ventures to be created? ing them to work for our two parent compa- Nationally ranked as the preferred investment location in Mexico, Mexico being a competitive cost country is nies in order to understand the processes and 185 new projects across industries have seen fruition within Chi- Can you give a brief introduction to EZ not the only contributor to the success of EZ philosophies for the new E2 project. By un- huahua’s borders, generating 160,000 new jobs in the past two Air Interior Ltd. and how the company Air Interior Ltd. in Chihuahua. Zodiac Aero- derstanding those ideals, integration will be decades. Around 15,000 jobs are currently occupied by the aero- has evolved since its establishment in Chi- space has found excellent design schools in much more comfortable. The next few years space sector. huahua? the area, and an abundance of talent in the are going to be a period of consolidation of Secondly, Chihuahua truly reaps the benefit of a functioning EZ Air Interior Ltd. is a joint venture be- realm of value addition. Mexico continues to philosophy and mindset. Embraer aims to triple-helix model, whereby industry, academia, and government tween Zodiac Aerospace and Embraer. The develop its capabilities from initial design to deliver the first E2 aircraft in the beginning unite in the effort to implement the vision for the future of the company was established in June 2012 the manufacturing of the parts and is already of 2018, of which all the interior parts will be aerospace sector. Operating under the purview of the maquiladora with the goal of consolidating all cabin in- looking into how it can adopt the latest tech- manufactured by EZ Air Interior Ltd. association, Index, the aerospace cluster, is governed by Chihua- terior parts production for the EMBRAER nologies. What still needs to be develop is hua’s own set of roadmaps that are dedicated to attracting inter- 170/190 family of jets. An agreement was a stronger supply chain within the country. Do you have a final message for our in- national investors, pushing the involvement of local companies, signed with Zodiac Aerospace, Embraer’s Developing a local supply chain would cre- ternational readership, those looking at and furthering the aptitude for research and technology. “Over the original supplier, and the decision was made ate an immense amount of opportunities for Chihuahua as a potential aerospace des- past five years, Chihuahua has developed a strong competence in to manufacture the parts in a cost competi- joint ventures in Chihuahua. tination? aero structures and machining,” noted Rene Espinosa, president tive country to drive competitiveness. EZ Chihuahua is advantageous in that it has a The aerospace industry in Chihuahua has of Chihuahua’s aerospace cluster, “It is a very diverse cluster and, Air Interior Ltd. was established in Chihua- significant amount of talented human re- significant potential. There is an in-depth when paired with collaboration, increased productivity is inevi- hua, Mexico because Zodiac Aerospace was sources to offer. The city is very cost-com- understanding of the business and what hap- table.” already successful in its operation of several petitive and can offer excellent engineers pens within the industry. Presently, there is Unlike most stories of government intervention, the majority of plants in the city. to the industry. Technical resources are also the challenge of expediting bringing prod- executives across the aerospace spectrum feel that the Chihua- being developed as there is a great demand ucts and processes to the area. There is huge hua’s administration is taking a helpful approach to develop the What is the nationality of EZ Air Interior for mid-level technicians in the aerospace potential for success within the industry, sector. A member of the Centro de Desarollo de Proveedores de Ltd.? industry. which is evident by the growth of newly es- Chihuahua (CEDEP), Arturo Avila, noticed a gap in the market EZ Air Interior Ltd. was founded and is reg- tablished companies. One can expect success for high-precision machining in the state. With government grants istered in Ireland, but 50% of the company is What are the specific gaps in the supply if you establish operations in Chihuahua. • to purchase the machinery, Avila broke into the aerospace market

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in 2011 with his business Altaser Aerospace. “The first machine and quickly digitizes a part or object to create a replicated tool, in both our development and many other to offer. Kilgour is a highly respectable, we purchased—a brand new, continuous five-axis—was actually which is particularly helpful to the aerospace companies that re- grand opportunities for this city. Altaser’s third-generation, family-owned business, too aggressive of a move. Very few companies had high speed, quire tools where the original drawings are no longer available. first job was to produce blanks, -pre-ma and Altaser’s next natural step was to get high torque machines of this kind, but what we did not realize was It also provides three-dimensional computation and accurately chining parts, for Honeywell Chihuahua involved in treatments. Today, Kilgour that we needed to build up our credibility before clients would be identifies dimensions that are out of tolerance from the original HCMO prior to our AS9100 certification. Altaser Treatments plant (KAT) is a 50-50 comfortable purchasing our five-axis products,” explained Avila. parts,” explained Sergio Mancinas, director of FabLab. Altaser was granted a temporary waiver partnership, where Kilgour is bringing the After proving their competence—first with two-axis turning, The first of its kind in Mexico, this manufacturing and product-de- by HCMO—facilitated by the vision of expertise in special processing, and Alt- three-axis mills, non-conventional machining, grinding, and now velopment company has already worked with many international Mr. Felipe Sandoval, general manager of aser has local managing experience plus multi-axis vertical lays—business catalyzed, and within months players, including Kaman Aerostructures, Zodiac Aerospace, and HCMO—and began producing parts with- an established customer network. Altaser Altaser needed to relocate to a larger facility. When Altaser be- Fokker Aerostructures. FabLab hopes to expand its diversity of in five months. We originally thought it continues with local machining operations gan, it was the only independent machine shop creating aerospace equipment, incorporating laser machines, CNC lathes, and 3-D would take years to initiate selling airplane that are 100% Mexican. parts. “Today you can see many, and all others are foreign compa- printers in the near future, allowing SMEs cost-effective means components, and our business strategy re- We also see a market for selling engineer- nies. Mexican companies should not be discouraged from enter- of furthering design and development of their own products. In volved around tooling. Honeywell gave us ing services, an area in which we plan ing this sector, because I can confidently say that the return on addition, FabLab is currently working in partnership with DE- productive parts up front, and the majority to expand our partnership. Kilgour has investment will be double initial expectations,” affirmed Avila. SEC towards the creation of a configuration management and de- of our sales concerned holding fixtures and a great deal of experience in that regard, Altaser Aerospace has since developed a successful 50-50 partner- sign center for engineering services to directly meet the needs of measuring gages. Altaser’s focus evolved with senior engineers that are well versed ship with Kilgour and received the backing of Grupo Punto Alto, OEMs in Chihuahua. into components. in engines and landing gear. Certifications an investment holdings group focused in financially supporting The second challenge—obtaining the proper certifications—is In 2012, we joined TechBA, in the busi- are arduous in the aerospace industry, but institutions that show promise of sustainable development. “The assuaged through the help of the locally NADCAP-certified in- Ing. Arturo ness acceleration program, which has giv- the hardest part of the process is actually growth projections of the aerospace industry are significant and stitution, the Centro de Investigación en Materiales Avanzados en us access to experts worldwide. With programing the machines. A great deal of the industry will be growing for the next 20 years,” explained Al- (CIMAV). CIMAV is a public-research center devoted to ad- Avila Cisneros the help of TechBA and ProMexico, we time and money goes into developing the berto Terrazas, director of Grupo Punto Alto, “[and we] decided vanced materials and belongs to the National Council of Science have recruited international experts to help necessary programing to cater to the spe- to make use of [Altaser] as an opportunity to be involved.” and Technology (CONACYT). Dr. Juan Méndez Nonell, general train our local talent. Altaser is a Mexican cific dimensions for each aerospace com- Together with Kilgour, Altaser is expanding the availability of director of CIMAV, notes that the rationale behind placing this business, and we intend to provide more pany. Many international companies offer chemical processing to Chihuahua, and the pair also plans to cre- facility in Chihuahua was due to the strength of the local govern- opportunities for Mexicans. We invest a lot programming capabilities, but the cost of General Manager ate a more cost-effective engineering service so manufacturers ment’s support, it being a developing nucleus for the aerospace in developing a local workforce, which is those engineers is extremely high. Togeth- ALTASER AEROSPACE can outsource the necessary machine programing that is required and automotive industries, and the absence of research centers well represented by the fact that within our er with Kilgour, we plan to create a more by each specific aerospace company. in the northwest of Mexico. Equipped with three transmission first year, we spent around $250,000 on cost-effective option. On a grander scale, the Desarollo Economico del Estado de Chi- electron microscopes and three scanning electron microscopes, training alone. Supported by CONASYT’s huahua (DESEC) continues to work on enhancing the advanced this laboratory conducts chemical analysis, materials testing and “Estimulos a la Inovacion” program, Alt- Do you have a final piece of advice for manufacturing capabilities of small- and medium-sized enter- magnetism research critical for materials and composites devel- aser works with CIMAV (Advance Mate- local entrepreneurs looking to break prises (SMEs) within the state. In 2008, DESEC partnered with opment. One of CIMAV’s greatest successes was developing a rial Research center of Chihuahua) and the into Chihuahua’s aerospace market? ProMéxico to take on aerospace as a means of fulfilling its voca- software application that supports commercial aircraft harnesses University La Salle de Chihuahua to de- Getting a joint-venture upfront is not the tion of creating wealth for the regional economy. The automotive for SAFRAN Labinal, doubling their production and growth in velop processes and products. only indicator of success. Entrepreneurs recession at that time resulted in job cuts for more than 150,000 Chihuahua. “We continue to partake in valuable advancements in From the beginning, our target was joint- need to dedicate the time to collect infor- people in Chihuahua, starkly reiterating the need for greater di- material performance—i.e. improving aluminum alloy nanopar- Can you give a brief introduction to ventures, but as a small, new Mexican mation, research FEMIA reports, and so- versification. “Over the years, the development of the aerospace ticles via dispersion, enhancing its characteristics and resistance Altaser and how it has evolved since its company trying to do business in aero- lidify their strategy on fulfilling a need. sector has helped to elevate the capabilities of Chihuahua’s work- with a resultant weight reduction for the material. Other projects creation? space, they were difficult to secure. I A good business plan will go a long way, force. With $150 million going directly towards aerospace payroll have included: development work for the manufacturing of bush- While we were part of the Centro de De- visited no less than 20 companies with and with that one should be confident in and $450 million indirectly, quality of life has greatly improved ings for aircraft flight systems; modernization of polyurethane sarrollo de Proveedores de Chihuahua joint-venture proposals, and we were con- approaching the big players. If you can of- and continues to increase,” said Alejandro Casas, director of DE- foam for aircraft cushions; and software design development sup- (CEDEP), which was oriented towards tinually told that we did not have a chance fer a solution to a problem, companies will SEC. port for harnesses in commercial aircrafts,” said Dr. Méndez. getting local industrials incorporated into making it in such a sophisticated busi- be eager to work with you no matter what He hopes that the initiatives in place will increase the number of In accordance with industry demands to make materials lighter, the supply chain for large global compa- ness. Rather than becoming discouraged, their caliber. GE could not find a supplier aerospace employees by 25% in the coming years. stronger and more flame retardant, future research endeavors will nies, many business opportunities were we pressed on. Now Altaser has multiple in Mexico with a vertical lay of 40 inches, As stated in Mexico’s Aerospace Industry Roadmap 2015, the integrate aluminum, polymatrix, and lightweight metals. Through detected. There was a lot of struggle along companies hoping to partner with it. and so Altaser bought that machine, and two goals guiding government initiatives are as follows: “to in- CIMAV, accreditation is expected to be granted to thirteen differ- the way, and we did not see success for an GE filled it with work. Look for voids in novate, develop and enhance the design of product and their parts; ent material tests, allowing pieces to receive NADCAP certifica- extensive period of time; however, after How did Altaser establish its partner- the supply chain and ask companies where and to certify the parts in question for the aerospace industry.” tion and subsequently penetrate the aviation market. conducting a market analysis, we realized ship with Kilgour? they need help. When we started this busi- Chihuahua’s strides toward realizing the first objective can be seen In addition to furthering Chihuahua’s innovative design and com- high precision machining was a gap that Altaser was already substantially estab- ness, Altaser was the only independent through the creation of FabLab, a flexible manufacturing labora- posites capabilities, the idea of being able to construct a complete still needed to be filled. We decided to par- lished, selling parts to majors such as machine shop creating aerospace parts. tory located within the Innovation Technology Transfer Park of aircraft remains in the background of organizers’ minds. “In the ticipate and started from scratch by con- Honeywell, Fokker, etc., when we met Today you can see many, and all others are the Monterrey Institute of Technology and Higher Education’s short and medium term, we hope to see further involvement in re- tacting potential customers. In December Ray Kilgour. A broker brought him from foreign companies. Mexican companies Chihuahua campus (Instituto Tecnológico de Estudios Superiores gards to windows and wings, landing gears, treatment processes, of 2011, Altaser was legally established the U.K. to Mexico, and he was touring a should not be discouraged from entering de Monterrey, ITESM Chihuahua). Based on the Massachusetts safety equipment, fuel systems, assembly for the construction of as a supplier in Chihuahua pursuing Aero- heat-treatment facility, of which Altaser this sector, because I can confidently say Institute of Technology global-network model, FabLab serves aircrafts, MRO services, equipment for kitchens, and the addi- space work on machined parts. owns a portion. Ray was merely looking that the return on investment will be dou- as an advanced metalworking and prototyping station via the tion of some electronic components,” explained Casas of DESEC. Grupo Punto Alto (formerly Grupo Co- to see how the equipment was installed, ble the initial expectations. • latest in CNC and reverse-engineering technologies. “FabLab’s “The supply chain currently occupies a lot of our attention when pachisa) is the majority owner of Altaser, but after long talks and negotiations he ROMER Absolute Arm has a laser that scans a part for a template talking about opportunities.” • an entity that has been critically engaged became interested in what Altaser has

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What percentage of FabLab's business is cated tool, particularly helpful to the aero- was local government support, i.e. land allo- devoted to the aerospace sector? space companies who require tools where cation, its strong nucleus of industry, and its Around 60% of FabLab's business is aero- the original drawings are no longer avail- geographical location, since there were not space-related, and this contribution has be- able. It also provides three-dimensional any research centers already in the northwest gun to show steady annual increase. As a computation and accurately identifies -di of Mexico. manufacturing and product development mensions that are out of tolerance from the company, FabLab has a strong commit- original parts. FabLab's machine service How does CIMAV contribute to the aero- ment to protect the intellectual industrial offerings service the aerospace, automo- space sector in Chihuahua? property of its customers, and we work tive, and electronics sector, but our objec- CIMAV has around 50 new projects annually with: Soisa Aerospace, where FabLab has tive for 2016 is to further increase services that permeate from CONACYT; around 30% been supporting design fabrication of tool- to the aerospace cluster in the reverse-en- are directed towards aerospace. For example, ing and sheet metal parts; Kaman Aero- gineering and sheet metal parts details fab- in 2012, CIMAV developed a software appli- space for design fabrication of tooling; rication. cation that supports commercial aircraft har- Zodiac Aerospace, providing threading in- Currently, the greatest demand from the nesses for Labinal, doubling its production and spection and dimension for detailed parts; aerospace sector is for tooling design ex- growth in Chihuahua by alleviating its need Fokker Aerostructures, including sheet pertise. to transfer production to another country. Six metal parts details for shop aids and test- years ago, CIMAV began projects with the ing parts for wing assembly; and Altaser What is FabLab's timeline for expand- U.S. Air Force; the program has been renewed Sergio Aerospace. FabLab also offers the facil- ing its capabilities? Dr. Juan annually and has serviced a total of 12 projects. ity of prototyping, i.e. design tooling and For 2016/2017, FabLab would like to ex- Additional clients include Altaser Aerospace Mancinas sheet metal parts. The company is expand- pand its technical capabilities by acquiring Méndez Nonell and Honeywell. ing its business portfolio to new potential other types of equipment, including laser CIMAV's Chihuahua research facilities are customers in small-part fabrication within machines, CNC lathes, and 3D printers. state-of-the-art. They include three transmis- the aerospace cluster, i.e. Embraer, Tighit- This would fill the gap of our service offer- sion electron microscopes and three scanning co and CAV Aerospace, Arnprior, Chandler ings and enhance our core business, grant- electron microscopes. Within the research lab- Director Director General Industries, L3, Textron, Beechcraft, and ing needed services to SMEs and aerospace oratory supported by top-line equipment, we FABLAB INTERNATIONAL CENTRO DE INVESTIGACIÓN others. FabLab has the expertise and ma- companies. conduct chemical analysis, materials testing, TECHNOLOGY EN MATERIALES AVANZADOS chines to support the aerospace cluster in and magnetism research. (CIMAV) Chihuahua and Mexico. Do you have a final message for our in- ternational readership looking at Chi- What emerging trends do you see for ad- Can you detail the capabilities of huahua as a potential aerospace destina- vanced materials in aerospace? FabLab's machines? tion? Please provide a brief introduction to CI- We continue to partake in valuable advance- FabLab has sophisticated CNC, punch- Chihuahua has a competitive market en- MAV and its role in Chihuahua's and Mexi- ments in the performance of materials—i.e. press machines that can punch up to 6-mil- vironment, supported by technical and en- co's aerospace sector. improving aluminum alloy nanoparticles via Can you give a brief introduction to limeters thick material in aluminum, mild gineering expertise, as well as equipment CIMAV is a public research center belonging dispersion, enhancing its characteristics and FabLab and its role in the aerospace sec- steel, and stainless steel. The machines to fulfill the needs of the aerospace sector. to the National Council of Science and Tech- resistance with a resultant weight loss for the tor of Chihuahua and Mexico? have a turret auto index with a multi-tool Chihuahua has the latest technology, in- nology (CONACYT) that promotes the scien- material. Other projects have included: devel- FabLab is a project funded mostly by PRO- design feature for quick changes, facilitat- cluding laser machines, CNC equipment tific development and technological modern- opment work for the manufacturing of bush- CEI, which is a cooperation program be- ing a more efficient cycle time. The CNC for machining processes, and the most ad- ization of Mexico. CIMAV in Chihuahua was ings for aircraft flight systems; modernization tween the and Mexico has the capability to cut, make pockets, vanced technology for sheet metal parts created in 1994; it is one of 27 research centers of polyurethane foam for aircraft cushions; and under the management of ProMéxico and slots taping, countersink, special forming, fabrication. The region has the capabilities throughout Mexico covering different topics software design development support for har- promoted by Desarrollo Economico del and bending material up to 3" high, all by of becoming a worldwide hub in research and is arguably one of the best in the country, nesses in commercial aircraft. The aerospace Estado de Chihuahua (DESEC). Fablab one machine. for advanced materials and composites annually producing academic standards of ex- industry wants materials that are lighter, stron- seeks to increase the competitiveness and The CNC press-brake machine is able to like Centro de Investigation en Materiales cellence equivalent to any research center for ger, and flameproof; it also wants further- re advancement of manufacturing in Chihua- bend parts to eight different axes; the laser Avanzados (CIMAV). material science in the world. Within material search on the usage of aluminum, polymatrix, hua with emphasis on the metal-mechanic can calculate the spring-back of different A priority for FabLab is to support local science, CIMAV is involved with industries and light metals. sector, transversal across the aerospace, materials, i.e. stainless steel or aluminum. SMEs to strengthen the supply chain and such as aerospace, automotive, pharmaceuti- automotive and electronics industries. The software for spring-back is specific for offer world-class engineering services. cal, and electronics. In Mexico, 25% to 30% What are CIMAV's plans for expansion? Equipped with computer numerically con- the thickness of each material. The com- FabLab is thus currently working in part- of CIMAV'S work is dedicated to aerospace As part of a five-year plan, CIMAV is building trolled (CNC) machines, the latest tech- pany also has a replica center machine nership with DESEC towards the creation in improving products, processes and perfor- additional facilities for the aerospace industry nology in design, and equipment capable 3+2 axes; it will take a single part through of ECC, a configuration management and mance of materials. at its Chihuahua premises that are due to be of manufacturing tools, we produce and machining in five faces without having to design center for engineering services, to completed in June or July 2016. These facili- launch parts for products in the manufac- take the part out of the machine, and the meet directly the needs of original equip- Why was Chihuahua chosen to house the ties will incorporate new equipment, including turing area. This allows small-and medi- machine table rotates 360 degrees. ment manufacturers in Chihuahua. The headquarters of CIMAV? a scanning electron microscope to characterize um-sized enterprises (SMEs) to expand the Additionally, we offer reverse engineering goal is to keep increasing the number of CONACYT decided 25 years ago to create materials to prepare samples for the transmis- local supply chain for transnational compa- procedures: the measuring arm has a laser aerospace players in the country, which is a research group specifically devoted to- ad sion electron microscope, new equipment for nies. Fablab is a great strategic support for that scans a part for a template and quickly done through collaboration and best real- vanced materials. The rationale behind CI- chemical analysis and nuclear magnetic reso- the industry in Chihuahua. digitizes a part or object to create a repli- izing the market potential. • MAV's choice for Chihuahua as headquarters nance, and 3-D machines. •

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tified, and was the first Mexican company we began incorporating new materials into CROSSCHECKING to do so. Since then, SOISA has been inte- the seats to produce a unique, higher-quality grating new processes such as design, en- product, moving past the seat-covers to the gineering, prototyping, research and devel- entire seat and cabin. This testing culminat- COLLABORATION opment (R&D), certifications, and supply ed into the founding of SOISA’s Research chain management along with the product and Development Department, and the WITH INNOVATION manufacturing, continually adding value to composite-laminated material we use today its customers. for seat covers that enhance flame retardant IN CHIHUAHUA capabilities, comfort and apparel. The in- What was the direct impetus that led tegration process of the composite materi- Zodiac Aerospace, SOISA SOISA to focus on aerospace? als is patent-pending. Currently, SOISA is SOISA needed a stable industry, outside of working in collaboration with CONACYT Aerospace and textile, and the automotive sector was in re- to develop a more environmentally friendly, Universidad La Salle work together cession. In 2005, the Mexican government water-based adhesive, which avoids need- created policies to develop aerospace, and ing a solvent in the fabrication process. in designing aircraft seats the entrepreneurial mindsets of the Mesta In 2014, with the university’s collaboration, brothers lead them to focus on this sector. SOISA established an ergonomics and bio- Already having experience with the com- mechanics laboratory to better test passen- Ing. Fernando modities related to sewing and its processes, gers’ overall experience in an aircraft cabin the change to producing airplane parts was via an eight-hour flight simulation. Wong efficiently creative.

Image: Zodiac Aerospace Part of their vision was to assure that SOI- How does SOISA Aerospace contribute SA Aerospace had a certified quality system to Chihuahua’s economic development? Chihuahua is testing our comfort levels, as the formerly maquila- fortable, and durable; the patent is currently pending. SOISA is and focused on customer satisfaction with SOISA offers value-added employment. dora-centric aerospace hub breaches the realm of design. Zodiac also working with local research and development institutions to flexibility and rapid responsiveness. Even Our current payroll for 350 employees is al- New Projects Research and Development Aerospace, in conjunction with SOISA Aerospace (SOISA) and develop a more environmentally friendly, water-based adhesive without yet having any orders, obtaining the most equal to the payroll that we formerly Manager Universidad La Salle Chihuahua (ULSA), is spurring innovation that does not require a solvent for fabrication. AS9100 certification was an important step had in blue jeans manufacturing for around SOISA AEROSPACE activity relative to airplane seats, developing new concepts that Utilizing ULSA’s ergonomics and biomechanics laboratory, a team in capturing their new market and bringing three thousand people. As well, SOISA has are already acquiring international recognition and awards. Zodiac of researchers studied passengers’ sitting experience in an eight- SOISA Aerospace to where it is today. a rate of national integration of 58% over Seats specializes in passenger seats for commercial aircrafts, in- and-a-half-hour flight simulation to analyze user satisfaction of the the average rate of 3% of the transnational cluding Boeing’s and Airbus’, and the Chihuahua plant contains seat. Participants are placed into a mock cabin for the duration of What were the first pieces created and exporting industries in Mexico. a 130-persons design team dedicated to creating turbulence in the what would be the route from Dallas to London, and four vari- sold by SOISA Aerospace? In 2011, SOISA decided to integrate ma- industry. ables are measured: psychological behavior, physical behavior, In 2008, we started making canopies for the chining into its search for integrated fabri- In regards to manufacturing, each airline customer wants a specific blood pressure, and body pressure mapping. Every two hours, the slide rafts of Zodiac Air Cruisers. SOISA cation of parts for seat structures but ended seat design, which means that Zodiac Seats must tailor dedicated test subjects were interviewed individually about their experience was purely a cost center manufacturing in- up creating parts for turbine engines and programs for each machine that corresponds with creating each and levels of irritability. From this study, it was concluded that Can you provide a brief introduction to termediate products. We received orders, made machine parts for approximately half piece. Being highly vertically integrated, Zodiac Seats Chihuahua the laminated, composite material brings greater comfort, allows SOISA and how the company has evolved received all the materials, and simply began a year. Despite its success, it did not fit into transforms raw materials into finished parts according to the de- more relaxation, as well as increased blood-flow to the passengers. since its establishment? sewing. SOISA’s vision to be the preferred supplier mands of its customers. Nearly half a million parts are produced SOISA’s dedicated research and development branch continues to SOISA’s long tradition started in 1949 as In 2010, SOISA Aerospace started doing of cabin interiors. We sold the company to per month in this single plant dedicated to economy-class seats, all work on adding variables to its testing and incorporating results an entirely local, family-owned, blue jeans business with another Zodiac division and another local entity, Altaser, which success- of which need to form a seat that is both spacious for the passenger into new seat models, which are then proposed to the renowned manufacturing company. The Mesta broth- we began sewing seat covers. The main ma- fully entered the aerospace market. Altaser and meets the requests of the airline that as many seats as possible international majors, such as Zodiac Aerospace, in hopes of secur- ers’ father took the company through many terials, i.e. the leather and the fabric, were machines parts for Honeywell and other can fit in the limited cabin space. Zodiac Seats Chihuahua’s latest ing their support. changes over the following 50 to 60 years. received from the airlines, but in 2011 SOI- multinational conglomerates in Chihuahua. design concept is the Posture Seat: “This seat moves in coordina- ULSA’s collaboration with Zodiac Seats has also been through The United States has always been SOISA’s SA began looking for better, local means As a part of this spin off, SOISA created an- tion with the passenger, as all of the parts in the back of the seat are the conceptual and technical development of sub-systems, utiliz- primary export market, and after World War of sourcing, consolidating a stronger sup- other company named HTMX for heat-treat mobile and adaptable to human motion and attitude. Not to men- ing their facilities and calling on students’ creativity through their II, SOISA even began exporting a great deal ply chain and processes integration adding processes as well, selling part of the busi- tion it is very light,” explained Baptiste Valois, general manager of technology transfer and development programs. Presently, a group to Russia. In the 1980s, SOISA expanded value to our customers. ness that had emerged from our develop- Zodiac Aerospace Equipo de Mexico. of students is working with Zodiac Aerospace in the United States, significantly to house five manufacturing ment to a local company to take over. With a focus on functional and aesthetic design, Valois attributes where there is more opportunity to be involved in the established facilities to keep up with demand; howev- What inspired SOISA Aerospace to ex- the success of the project on the facility’s creativity with current research and development branches of the company. With the er, the economy changed in the 1990s and pand beyond supplying? Are there opportunities for Mexican manufacturing ability and rapid prototyping. transfer of knowledge, as well as the leadership of Chihuahua’s early 2000s. Clothing manufacturing start- After drafting new business models based companies to be involved in interiors? SOISA’s contribution has been in cushion and dress cover devel- plant managers, design labs in Mexico will become more com- ed shifting to China and prices dropped, on the integration of new processes such Certainly. We are developing Mexican sup- opment, which also follow a user-centric methodology. “We began monplace. “There is a lot of investor confidence that Chihuahua causing SOISA to shutdown its operations as design, engineering, prototyping, R&D, pliers in the realm of seats materials—for incorporating new materials into the seats to produce a unique, will become a center for design on a global scale,” argues Jaime in 2004. Jesus and Javier Mesta, the two certifications, and supply chain manage- example, cushions—giving them guidance higher quality product…this testing culminated into the compos- Luciano Fernández, director of outreach for ULSA. founding brothers, along with five other ment along with the product manufacturing, on what constitutes a quality system, the ite-laminated material we use today,” explained Fernando Wong, As Zodiac Aerospace adjusts their seats for innovation and creates people, decided to reopen in 2006 with an SOISA integrated institutional partners such tests necessary (i.e. flammability, toxicity) new projects research and development manager of SOISA. an ambiance of design in the region, other international aerospace entirely different market: the aerospace sec- as CIMAV (Advanced Materials R&D Cen- and the laboratory approvals needed for ac- This newly developed composite is more flame-retardant, com- majors will hopefully be comfortable in doing the same. • tor. In 2008, SOISA became AS9100-cer- ter) and Universidad La Salle Chihuahua— creditation. •

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body is attracted to working in aerospace. everything possible to ensure that our stu- Students seem to be most interested in ca- dents are well prepared to face jobs tasked SUPPLY CHAIN reers in design—working on seat redesign, to them once they are trained members of parts, waste systems, etc. ULSA also offers Chihuahua’s workforce. Our career coun- programs in mechatronics, industrial pro- selors consistently provide feedback on STATUS cesses, quality control, and electronics. what new equipment we should be seeking Working to Fill the Gaps JLF: Our students work in a variety of in- for our laboratories, as well as engage in dustrial functions. The integral aspect of agreements with companies to allow stu- ULSA’s interaction with the aerospace sec- dents to use their facilities. JLF tor is that we can focus on hard sciences JLF: Companies also task our students with in relation to engineering, but we also have real projects, such as Zodiac Aerospace re- made significant advances in soft areas questing a design for their global trade fair such as finance, commerce and human re- stand, or coming up with a product for an sources. ULSA is gradually increasing our impending trade show. These are substan- scope of knowledge to make our students tial tasks that will have a real impact. Chihuahua is not exempt from the inverted-pyramid supply chain adaptable to the requests of the industry. challenge common among other Mexican aerospace clusters. How would you rate Chihuahua as an “Mexico continues to develop its capabilities from initial design to What relationships does ULSA have educational hub for the aerospace indus- the manufacturing of the parts and is already looking into how we Norma Ramírez with companies for students to gain try? can adopt the latest technologies. What still needs to be developed hands-on experience? NR: There are at least four institutions with is a stronger supply chain within the country. Developing a local & Jaime Luciano JLF: ULSA manages a wide network of explicitly established roles in the aerospace supply chain would create an immense amount of opportunities for connections. The most popular means of cluster and each of them selected a differ- aerospace joint ventures,” noted Ramírez of EZ Air Interior Ltd. getting hands-on experience is through the ent, relevant focus area. Overall, the short- Yet developing a local supply chain is not easy. Most internation- internship program. In their final semester age of engineers allows for Chihuahua to al companies already have solidified, fixed suppliers, and, even or shortly after graduating, students work serve as a reinforcement hub for human though it is more expensive to continue using foreign entities, the NR: General Director on projects for an aerospace company su- capital, as our training is among the best in JLF: Director of Outreach risk uncertainty poses is a much greater cost. Zodiac Aerospace, PARQUE DE INNOVACIÓN pervised by an engineer. After six months, the country. ULSA’s students are being re- which houses its largest facility in Chihuahua, is exemplary of most students are offered jobs within their cruited not only from Chihuahua but a mul- UNIVERSIDAD LA SALLE how capable multinationals can make strides towards flipping the respective departments. Through our aca- titude of aerospace-dominant states. The CHIHUAHUA (ULSA) pyramid in a mutually beneficial way. Soisa Aerospace, an entirely demic programs, students are granted the quality of new Chihuahua professionals local, family-owned company, was initially contracted by Zodi- opportunity to develop independent study provides a significant boost for our - aero ac Aerospace to make canopies for their Air Cruiser slide rafts. projects at the request of a local aerospace space cluster. Even Querétaro, which has “Once we have developed a supplier for one operation, we can company. These assignments are super- a large industrial demand, likely does not be creative on how they can help with other projects,” explained Image: Palomino vised by the university, and typically coin- have a paralleled advantage in skills. Baptiste Valois, general manager, Zodiac Aerospace Eqiupo de cide with a specific issue that a company is Mexico. OHSAS18001 Occupational Health and Safety standards, and Please provide a brief history of ULSA facing. Upon completion, students present What is the vision for ULSA and the Shortly after, Soisa Aerospace began sewing seat covers for Zo- SA8000 Social Accountability. Palomino aims to be involved in and its involvement in the aerospace in- their findings to the company’s manage- Parque de Innovación for Chihuahua on diac Aerospace, and is now integrated in ergonomic seat design. the complete process of designing and fabricating tools and small dustry. ment. Through our technology transfer and a grander scale? With a current customer base of over 60 airlines around the world, parts once they are AS9100 and Nadcap certified. NR: Universidad de La Salle began in the development programs, ULSA is particu- NR: The LaSalle group consists of 15 uni- Soisa Aerospace is a local success story that remains unfortunate- Across the value chain, nearly all executives say they would prefer year 2000, in conjunction with the Chihua- larly competent in designing materials and versities around the country and has helped ly uncommon. “The cycle of changing products for an aircraft is to develop local suppliers, though it is impossible without the sup- hua aerospace cluster’s creation. To as- embedded parts that relate to a traveler’s our Chihuahua campus to expand dramati- very long, leaving few opportunities for new suppliers to enter the port of their respective original equipment manufacturer clients. sure we were responding to the industry’s experience in their seat as a result of our cally over the past 15 years. The Parque market,” explained Valois. “A cabin may be redesigned every five Funding for start-ups to achieve certification is minimal, hindering needs, ULSA’s directors held a series of partnerships with Zodiac Aerospace and de Innovación, now in its third year, rep- or seven years, but the lifetime of an entire aircraft is typically local entities from taking that first leap. “The cost and the time meetings with the private sector to align Soisa Aerospace. External career counsel- resents what we call a second motor of twenty-five years…It takes dedication.” needed are the largest barriers, both of which are much more de- our courses with the present skills gaps. ing with professionals is also readily avail- growth for the university. For example, we Palomino High Precision Machining is another example of a lo- manding than other industries,” said Espinosa. ULSA began offering programs focused able, granting our students access to the are the only university that owns a solar cal supplier successfully breaking into the aerospace market. The cluster continues to look for companies that will complement on manufacturing parts and fuselages for most realistic and up-to-date advice. farm that has the capacity to supply power What started as a gas and diesel engine repair shop in the 1960’s what Chihuahua already has established; notably, there is an orga- turbines, and our curriculum continues to to our facilities, neighboring companies has evolved into a third generation family business, working on nized precision in the way the cluster is working to invert the sup- evolve as the industry is moving more to- Do you have a concrete example of how and to a vast portion of the state. combustion engines and industrial CNC high precision machining ply-chain pyramid. “We all play a part in developing the Chihua- wards design. In 2014, ULSA participated ULSA operates in accordance with the JLF: The Parque de Innovación has a focus for the aerospace industry. “The decision to increase our market hua aerospace industry…Every company here contributes to the in Chihuahua’s Aerospace Integration Fo- industry’s needs? on innovation as a tool for social change. from an automotive supplier to a multi-market supplier in the lo- image of this region, and it is important we all share the vision that rum, and we continue to partake in all of NR: Every year, we change about 5% of The future of aerospace in Chihuahua will cal manufacturing and aerospace industries did bring a great deal everything Chihuahua produces must be done right,” explained the cluster’s organized events. our program to update courses according have a lot to do with industrial design, of challenges,” explained Luis Palomino, director of operations at Luis Rivero, managing director of Wesco Aircraft Chihuahua. to the industry. For example, in industrial composite materials, embedded systems Palomino. “One of the most significant being the culture this im- In accordance with their multipronged strategic vision and techno- Approximately how many ULSA stu- design, there are five plant directors tasked and software design. ULSA is currently plied...there is no shortcut when it comes to entering the aerospace logical roadmap, the cluster’s main target is building a raw materi- dents choose a path in aerospace? with permanently revising the program and working with the private sector to re-struc- industry.” als distribution center. Presently, nearly all of the parts and materi- NR: Our relationship with the cluster has informing us on how the sector is evolv- ture our laboratories to created a shared fo- By March of 2016, Palomino expects to be certified in ISO9100 als needed by the industry are imported from the United States and become so strong that 100% of our student ing outside of the university’s walls. We do cus in the realm of design. • Quality Assurance, ISO14001 Environmental Management, only 3% are sourced locally. •

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What new innovations does Wesco Aircraft dispensable to doing business here. ing qualified engineers and technicians. But, the state of Chihua- Chihuahua offer, and how does Wesco Air- Luis Alberto hua has plans to keep multiple aerospace companies running for the craft best accommodate immense custom- What gaps do you feel still exist in Chihua- long term, which we consider an advantage for our business. er demand? hua that need nurturing? Palomino & As a supply chain solution provider, we are There is a lot of room for the Chihuahua What was Palomino’s process in securing the necessary funding constantly looking for ways to add value to aerospace industry to learn and implement Carlos Alonso and quality-assurance measures? Were there any government LAP our customers’ businesses. We have taken technologies that are new to the region, such programs or initiatives involved? advantage of our expanded facility space to as composite materials and avionics. These Palomino Palomino has received local support from INDEX Aerospace Clus- implement chemical management services technologies are already in place elsewhere ter, which enabled the company to reach some of its most valuable (CMS), allowing us to become a true, one- and there is an increasing market for them in LAP: Director of Operations customers, such as Honeywell Aerospace, EZ Air Interiors, and stop-shop for our customers in Mexico. The the Mexican maintenance, repair and over- CAP: General Manager Textron International Mexico. However, there is no shortcut when new temperature-controlled chemical stor- haul sector. Developing interest and getting PALOMINO HIGH PRECISION it comes to entering the aerospace industry. We hope that in two age area will be able to support the entire people involved in the training and certifica- MACHINING CAP years we will have grown our staff from 18 to 42 people. Proudly, Chihuahua aerospace cluster. Once we have tion process is essential. all our employees are from Chihuahua. successfully implemented these features in Can you provide a brief history of Palomino High Precision Chihuahua, we are planning to do the same What technologies have improved supply Machining and its current operations? What certifications is Palomino trying to acquire? at our Querétaro facility. Our commitment to chain management and helped mitigate is- Palomino started in the 1960s when our grandfather, Octavio Palo- Last year, we became involved in a program managed by CANA- continuous improvement and applying best sues? mino, took out a loan to buy two grinding machines. He initiated the CINTRA, consisting on the implementation of multiple ISO stan- Luis practices ensures that our customers experi- Significant advances have been made in real- business with just two technicians, repairing gas and diesel engines. dards. By March 2016, we expect to be certified in ISO9001 Quality ence greater efficiencies as our relationship time connectivity. Real-time data and inven- Assurance, ISO14001 Environmental Management, OHSAS18001 Rivero with them grows. tory analysis tools are needed to react quickly Capable of servicing a diverse array of sectors, what machines Occupational Health and Safety standards, SA8000 Social Ac- to any changes in the supply chain and to en- and expertise does Palomino provide and how will that trans- countability. Does Wesco facilitate the process of im- sure optimal stock is in place to support our late into filling a gap in the aerospace supply chain? One of Palomino’s short-term goals is to pursue AS9100 and NAD- porting raw materials? customers. This advanced connectivity helps Palomino has now been in the market for about 50 years, servic- CAP certifications. Becoming an aerospace-certified supplier, we Wesco Aircraft uses its expertise in inven- us to verify the inventory that we have on- ing the construction, transportation, mining, and automotive indus- will become 100% involved with direct design and fabrication of Manager of Business Operations tory management and logistics to manage the hand, determine the stock gaps that we need tries. Currently, there are two business units within the company: aerospace products, rather than indirect machining suppliers with WESCO AIRCRAFT supply chain on behalf of its customers. We to fill, and forecast customer needs based on products such as carbide cutters and tooling, inspection gauges and CHIHUAHUA combustion engines machining and industrial CNC, high-precision help control the supply of raw materials and closely monitored usage information. machining. fabrication of injection molds. • give our clients the peace of mind that they Over the last three years, Palomino has invested in state-of-the-art need to focus on their core business, which What goals does Wesco have for the next equipment such as: CNC machine centers, wire EDM, sinker EDM, is building aircraft. In Mexico, we are cur- five years in Mexico? and a quality-assurance lab. We are also training a group of 18 engi- rently working under a shelter agreement that With the 2014 acquisition of Haas Group In- neers and technicians capable of designing and fabricating tools and facilitates our import processes according to ternational, a premier chemical management parts with tolerances close to a ten thousandth of an inch. NAFTA regulations. In collaboration with services provider, we have a great opportu- Our technical staff is consistently being trained in the latest CAD/ other companies in the Chihuahua aerospace nity to support chemical product and service CAM software and ISO standards. Nowadays, Palomino has 11 industry, we consolidate our shipments in El needs. We are already an established service new machines in the CNC machining division and 23 machines in Can you give a brief introduction to Wesco Paso, Texas, and share the cost of transporta- provider to the Mexican automotive industry, the engine machining division. Aircraft and how the company has evolved tion to Chihuahua, thereby reducing costs for with over 300 employees supporting vari- CANACINTRA, along with the Secretary of Economy of Chihua- since its establishment? our customers. ous customers on site. We will be working to hua, invited us to be part of the new aerospace MRO cluster. Soon, Wesco Aircraft is one of the world's largest grow our CMS business in Mexico with the Palomino will also have new and bigger facilities to operate in, with distributors and providers of comprehensive Can you elaborate on the collaborative na- broader aerospace market. additional specialized processes, engineers and technicians. supply chain management services to the ture of Chihuahua’s aerospace cluster and We are also increasing our support to the Presently, our machines include: Makino F5, 30,000 rpm; Sodick global aerospace industry. We are a one-stop how the industry operates? Mexican aerospace industry by opening our SL600G, six-axis; Doosan DNM500 II/Renishaw, four-axis; Doo- shop for hardware, chemicals, bearings, elec- We have a unique, collective culture in Chi- first sales office in Chihuahua, taking care san MYNX 7500/Renishaw, four-axis; Doosan LYNX 300; and tronic products, customer-designed products huahua. The local aerospace businesses, or of many local accounts that previously were Rottler F99Y. and tooling, and also provide value-added the aerospace cluster as we like to call it, con- managed by our corporate office in United services like quality assurance, just-in-time sider every company here as a key contribu- States. As a third-generation family business, what challenges did Pal- delivery, point-of-use inventory manage- tor to the image of this region. The value of omino overcome to establish itself as a locally owned and oper- ment, and kitting. shared success promotes a sense of unity and Do you have a final message for our in- ated aerospace supplier? In 2011, Wesco Aircraft established its first collaboration. ternational readership, those looking at The idea of breaking into the industrial machining sector was con- facility in Mexico, choosing Chihuahua as The aerospace cluster operates like a well- Chihuahua as a potential aerospace desti- ceived about three years ago when our customers began demanding a prime location for its growing aerospace oiled machine, continually sharing ideas on nation? rebuilding parts and mechanical components in addition to engines. sector. In subsequent years, our business in how to fill gaps in the market and find sustain- Internationally, not many people know how The decision to increase our market from an automotive supplier Chihuahua has expanded to support a large able win-win scenarios that contribute to our much has been and is being accomplished repairing gas and diesel engines to a multi-market supplier in the scope of work for our major original equip- mutual success. If there is a smaller company here in the Mexican aerospace industry. We local manufacturing and aerospace industries brought a great deal ment manufacturer customers in the area. We that needs support, the established companies have proven that we are capable of handling of challenges. One of the most significant being the culture this im- moved to a new 45,000-square-foot facility in do not hesitate to get involved and give the significant levels of responsibility, and we plied. Palomino is not trying to compete against local suppliers; 2015 to accommodate this growth. help needed. The collaborative mindset is in- will only continue to grow. • Palomino is competing against itself. A secondary challenge is find-

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ing to provide support services for manufactur- and approvals? L3 Chihuahua specializes in sheet metal, including stretching and ing, and recently the company added logistics There are customs regulations that apply spe- ESCALATING forming processes for aluminum extrusions. Conveniently, MFCo to its portfolio, i.e. temporary warehousing, cifically to the aerospace sector in Mexico, and is located next door to their facility, readily able to provide the sub- just-in-time deliveries, and vendor managed Intermex fully understands and utilizes these CAPABILITIES sequent special processes. MFCo is approved by Cessna, Boeing, industries. regulations. Freighting also carries distinct Bombardier, ETAS, Bell Helicopter and recently HondaJet, offer- regulations, i.e. for shipping helicopter cabins Aerostructures, Machining and ing various anodization processes, chemical film and chemical con- How much of the Intermex's 6.6-million sq. from Chihuahua to Montreal-Mirabel Inter- version for sheet metal parts, Non-Destructive Testing (NDT) and ft. industrial space is located in Chihuahua, national Airport, Canada, special crating and Beyond heat treatment. MFCo Global offers ultra-sonic inspection. “The and how does the company attract aero- conditions for transportation are required. One aim is to transfer the entire service scope of MFCo as a company to space to the state? extremely helpful measure implemented by the the Chihuahua facility, but currently we need to follow the industry Approximately 24% (1.6 million sq. ft.) of our federal government allows aerospace compa- trends,” said Espinosa, plant manager of MFCo Chihuahua. total industrial space is located in Chihuahua, nies in Mexico to import all parts for aerospace The first in the region to offer sheet-metal fabrication is Tighitco. which is primarily devoted to aerospace. Cess- under one classification with no duties. Inter- General programs manager Héctor San Martín explained: “The na occupies 0.5 million sq. ft. of leased space mex also works with its customers to make whole aerospace sector in Chihuahua is developing, and competi- in Chihuahua alone. Chihuahua's historic ex- sure that the correct compensation and reten- Fokker Aerostructures, Arnprior Aerospace, Lisi Aerospace, Ka- tion is increasing in sheet metal, harnesses, and special processes.” pertise in wire harnesses attracts the aerospace tion programs are in place, as it is essential to man Aerostructures, NORDAM, Zodiac Aerospace, Tighitco, and There is a need for companies to further diversify their offerings in sector to the state, coupled with a stable labor keep turnover rates low. Metal Finishing Co. (MFCO) are a few of the most prominent materials. Chandler Industries is a machining company that is still force whose salaries stimulate productivity. What role do you see Chihuahua playing in names contributing to Chihuahua’s specialization in craft compo- relatively small in size, but already offers processes in steel, alu- Sergio Cessna is a great example of a company that Mexico's aerospace industry overall? nents for aerostructures, interiors and machining. Most operations minum, stainless, brass, nickel, titanium, and super alloys, and has has substantially developed itself in Chihuahua Chihuahua's current role in Mexico's aerospace are highly vertically integrated—for example, Fokker Aerostruc- added lapping and polishing as a means of differentiation. It is only Almada from cable assembly through to structural parts industry is its wealth of expertise for aerospace tures is assembling aerostructures with the use of compressors, a matter of time before Chihuahua becomes an all-encompassing and composites. The state also greatly supports structural parts for assembly and fabrication. painting, finishing, polishing, applying seeding and chemicals, hub of sheet metal processing and finishing. the aerospace sector via its academic under- Looking forward, as this critical mass grows, etc. all in house—and waiting for additional responsibilities to be graduate programs for engineering, manage- more support processes will be required for implemented from headquarters. ment, and vocational schools, which is a key multi-structural parts, such as surface treat- In regards to adapting to aerospace’s future in composites, Fok- The Impending MRO Project Marketing & Business ingredient in attracting aerospace to Chihua- ments. Under the just-in-time category, the Development Manager ker is one of the first to bring composite assembly to Chihuahua. INTERMEX INDUSTRIAL hua. supply of raw materials (i.e. aluminum and “The first step is to familiarize people with the material,” said Ro- Adjacent to Chihuahua’s international airport, the state govern- PARKS other hard metals), should be advanced by local dríguez, operations director of Fokker Mexico. “Next comes the ment has acquired more than 200 hectares of land to develop a new In addition to Cessna, who are Intermex’s suppliers. The next aerospace chapter for Chi- knowledge acquisition and regulation of handling, painting, and industrial park to service additional aerospace processes. “This other aerospace clients in Chihuahua? huahua is to have the capabilities of manufac- application. There is a lot of intensive labor that coincides with workshop will offer services to the whole aviation maintenance Additional aerospace clients include Lisi turing an entire aircraft; a prelude to that would this process, which we can handle both efficiently and affordably market in the south of the United States,” expounded David Da- Aerospace and Bell Helicopters, who take the complete manufacturing of a helicopter. in Mexico.” jlala, delegate for the Secretary of Economy of Chihuahua. the company's service offering of shelter and Those further down the production line have a similar perspective: The government has been collaborating with Boeing, Embraer, real estate; Cessna is solely real estate. Em- How does Intermex Chihuahua hope to “L3’s capabilities are based on sheet metal, but we are not limited,” Airbus, etc. to understand what is needed for Mexico to have a braer’s joint venture with Zodiac, EZ Air In- grow over the next five years? said Alvaro Aguilar, general manager of L3 Crestview Aerospace final assembly plant, and its research has focused efforts on de- Can you give a brief introduction to Inter- teriors Ltd., has an American Industries shelter As an industrial developer, Intermex is always Chihuahua. “We have the intention to work on composite materials veloping the needed airport infrastructure, such as an research mex and its role in attracting business to but is leasing an Intermex building. Currently, seeking land reserves with strategic locations and plastics as these capabilities reside in our parent plant.” and development (R&D) technology park and cheap, reliable en- Mexico? Intermex's business with Honeywell does not in specific markets. Land is still available for ergy. At the beginning of 2016, a Intermex was established in 1971 as a real es- include the aerospace sector, albeit Intermex aerospace in the region, ranging from small new combined-cycle tate business, developing industrial parks for did supply the facility for its new engineering projects, 100,000 sq. ft. to 300,000 sq. ft., to is to be installed near the airport those taking advantage of the Maquiladora design center for automotive and electronics at larger projects, 40 acres of land reserves in the to complement the gas pipelines Industrial Parks program (IMMEX). IMMEX the close of 2015. north of the city, for future development. Other coming from the United States. encourages the establishment of foreign com- locations within the south of Chihuahua city “With cheap gas, cheap power, panies in Chihuahua by a governmental non- Can you elaborate on the readiness and are on our agenda. high-quality workers, and the best tax policy of production inputs and assets, pro- availability of logistical support? customs process in the country, vided that the manufactured goods are exported Over the course of the 40-plus years that we Do you have a final message? Chihuahua is primed to welcome out of Mexico. Intermex not only covers Chi- have been established, Intermex has built a Intermex is a facilitator who works with for- new business to the region,” said huahua, but has followed its customers to oth- wealth of expertise in logistics operations. We eign companies through the A-Z of establish- Dajlala. er industrial facilities in Mexico, e.g. Juarez; can recommend how to best handle situations ing a presence in Mexico. This includes: site The timeline of the project rests Guadalajara; Querétaro; Reynosa; Monter- specific to Mexico, which is standard practice selection in different cities with an outline of on the variability of an MRO rey; Durango; Hermosillo; Silao and Valle de for Intermex's shelter customers to receive our total operating costs including leasing, payroll, presence and, with that, strategic Santiago, both in the state of Guanajuato; and logistical service offerings, which includes dif- insurance, building maintenance, shelter fees, suppliers, an assembly plant, and Mexicali. The company is continually looking ferent freight providers, custom brokers appli- etc. Once visited, Chihuahua is unanimously a demolition and recycling center to expand and has recently acquired additional cable to specific markets, and the best strategy considered the perfect destination for the aero- should follow. Plans are already land in the Bajio region. Intermex has 6.6 mil- relating to labor unions. space industry. Success thus far can be mea- in motion to construct airplane lion square feet (sq. ft.) of industrial space, of sured by the fact that shelter terms are consis- painting and parking centers at the which 6.1 million sq. ft. (92%) is leased. In the Are there any specific needs atypical to the tently renewed—Bell Helicopters has renewed airport, which are expected to be late 1980s, Intermex extended its service offer- aerospace sector in Mexico, i.e. regulations shelter terms with Intermex since 2009. • complete by the end of 2016. •

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ments that all global operations are striving Moreover, we have immediate corrective HSM: TIGHITCO is leading the field in sheet metal products to other states in towards. Firstly, Fokker wants to be close action systems and highly experienced hu- sheet metal fabrication for aerospace in Chi- Mexico? to our customers. Secondly, we need to be man capital. We train our staff over an in- huahua and was the first to establish this type VP: Chihuahua is developing into a hub for global, but mostly, we need to innovate and tensive three-month period, and our plant of service offering in the region. sheet metal fabrication and assembly; it ful- serve our customers with the latest tech- has one of the lowest turnover rates in the fills the demands of OEMs in the region and

nologies. area. HSMB Can you explain to what extent sheet metal is supported by strong training programs. Chihuahua was also chosen due to its rich fabrication takes place in the Chihuahua HSM: The company has no plans to intro- aerospace and automotive history. I started Can you elaborate on Fokker’s partici- facility? duce its sheet metal products outside Chi- the first aerospace company here in 1985, pation in the development of the local VP: TIGHITCO's Chihuahua facility has ge- huahua; however, the government may begin which was a subsidiary of Westinghouse supply chain? neric machinery for sheet metal: cutting pro- to encourage expansion outside Chihuahua that eventually transitioned to SAFRAN. Now that we have a more solidified pres- cesses for three-axis and four-axis, computer- to other locations in Mexico that have aero- The great foundation from the automotive ence, we are seizing the opportunity to numerical-control routing, manual tools for space clusters. industry facilitated a swift adjustment into purchase supplies at a closer range. De- VPC deburring, brake presses, and a hydroform- aerospace, as many car parts and the first veloping the supply chain is one of Fokker ing machine. There are also special processes Do you foresee collaboration between oth- car airbags were actually manufactured in Chihuahua’s key factors for measuring suc- including: in-house chemical film and chro- er aerospace companies and TIGHITCO Chihuahua in 1980. A great deal of knowl- cess. Currently, we are buying more than Héctor San mic acid anodizing with different recipes, for new materials in the aerospace sector? edge can be transferred from high-volume 35% of our parts from Mexico, a number heat treatment, painting incorporating ap- VP: TIGHITCO is collaborating with its sis- techniques and industry expansion plan- that we hope to increase. We have relation- Martín Benavides plications of primer and corrosion-preventa- ter company in Mexico and its U.S. facili- Rodríguez Ramos ning from that sector. Presently, Chihuahua ships with local companies, such as Tighit- tive paint plus masking, and applications for ties to develop different components. In this has four original equipment manufactur- co for aluminum, and are actively helping & Victor Prieto cosmetic visual cockpit parts. Operators and project, their integration will complement the ers (OEMs) and 31 tiers working together to develop Altaser, a small-components inspectors follow a fully documented quality enormous assembly plants of our main cli- as a cluster, one of the only clusters that and complex-tooling company that origi- Cano system for all applications. ents. has clear steps for evolution over the next nated in Mexico. Universities, such as the To what extent does TIGHITCO invest in 20 years. Chihuahua has a vision to build Tech de Monterrey, are working to estab- training and human capital development? Where do you see TIGHITCO positioned a complete aircraft within its borders by lish small businesses from which Chihua- VP: In 2008, there were limited specialized in the market in two to five years? Operations Director HSMB: General Programs Manager 2024. hua’s aerospace industry can both grow training facilities in local schools, but a sub- VP: Future goals for TIGHITCO will be to FOKKER AEROSTRUCTURES VPC: General Manager and benefit. We are working closely with sequent training initiative from the Mexi- maintain the company's growth and its posi- MEXICO TIGHITCO AEROSTRUCTURES What is the breakdown of Fokker’s Chi- Fokker’s supply chain development team can government assisted TIGHITCO in de- tion as market leader. TIGHITCO is robust, CHIHUAHUA huahua facility in terms of capabilities, in Atlanta to improve the selection and de- veloping an in-house training system for its and it foresees growth for at least the next staff, and machines? velopment of suppliers in Mexico, through specific operations. The company is always five years; albeit, this will be dependent on Beginning from a greenfield, what stands partnerships if needed, to consolidate the looking to develop and promote its personnel the economic status of OEMs in Chihuahua. today is merely the first of four phases consortium concept. It is a gradual pro- from within via the company's robust train- The aerospace cluster in Mexico will contin- which are expected to be completed by cess, but we are determined to assure that ing system for its engineering/aerospace sec- ue its integration of the supply chain. 2020. Our facility is 80,000 square feet the aerospace industry is stimulating local tors. HSM: OEMs are looking for the most cost- (sq. ft.) but will expand to 360,000 sq. ft. businesses. Please provide a brief introduction to HSM: TIGHITCO is able to draw from engi- effective options, and Asia is a region that Can you provide a brief history of your Cessna, which is now Textron Aviation, TIGHITCO in Chihuahua and how the neering/aerospace students with the required could be a future competitive threat for the involvement with Fokker Aerostructures was our first customer in March 2012. Fok- Chihuahua’s aerospace industry has de- company has evolved since its establish- knowledge from the local university or tech- American aerospace market. TIGHITCO is and how the company has evolved in ker Chihuahua constructed the empennage veloped and strengthened very quickly. ment. nical schools. Those pre-existing skills are striving to create a link with the largest Latin Chihuahua? for three of Cessna’s Citation business jets, To what would you attribute its success? HSM: TIGHITCO was established in 1946 in then enhanced by TIGHITCO's in-house American OEM to further stimulate growth A main component of my career has been and our latest awarded projects include Chihuahua has its own version of the three the United States, and has facilities in Con- training to elevate the students to the required and combat Asian competition. Space for fur- launching aerospace and automotive com- contracts with Gulfstream and HondaJet. national development phases: an industry necticut, Charleston, and Atlanta. In 2001, level of expertise. The government's training ther expansion is available within TIGHIT- panies for the past 25 years, and I have The new HondaJet aircraft is now certi- diagnosis, a roadmap with points on the TIGHITCO realized a presence in Mexico initiatives have significantly helped to fill the CO's Chihuahua facility; arguably, over the always had a clear vision of further de- fied for flying as of the last week of 2015, best direction to move, and a strategy how at San Luis Potosi with a service offering of skills gap. next three to five years, there could be a sec- veloping aerospace in Chihuahua. Fokker and we are greatly anticipating the ramp we can best promote ourselves as an attrac- composites and insulation products. In Sep- ond building within the complex. Aerostructures is based in the up in production from our plant. Many of tive destination for international invest- tember 2008, TIGHITCO's facility in Chi- What evolutions have you seen within Chi- and, with the desire to further expand its the new aircrafts deal with composites, and ment. Chihuahua’s public-private sector huahua was opened for low-cost sheet metal huahua’s aerospace sector? Do you have a final message for our in- presence in the Americas, Mexico was Fokker Chihuahua wants to participate in alliances are the key to its success, particu- fabrication and assembly operations, with HSM: The whole aerospace sector in Chi- ternational readership, those looking at deemed the premier location for manu- implementing that new technology in time. larly with the schools. Technology students one machine and four employees; today, it huahua is developing, and competition is Chihuahua as a potential aerospace des- facturing facilities in 2010. Fokker creates Right now, we are assembling aerostruc- keep a live feed of the progress that is hap- has over 200 employees and a plethora of increasing in sheet metal, harnesses, and tination? large aerostructures, so transportation is tures with the use of compressors, paint- pening here, and we showcase all of the machines. special processes. TIGHITCO is looking to VP: Come and see TIGHITCO in Chihua- an important cost. Chihuahua city is close ing, finishing, polishing, the application of components Chihuahua is capable of cre- further develop its service offering in Chi- hua. The aerospace industry is impressive, enough to the U.S. border that it is both seeding and chemicals, and more. We are ating at their facilities to keep our future Why was Chihuahua specifically chosen as huahua, for example, non-aluminum materi- with a high level of expertise and compre- logistically sensible and far enough away very integrated as all processes are done in- technicians and engineers excited about a facility site? als, i.e. steel titanium, whilst maintaining its hensive cluster support. from the noise of an international border. house. Fokker Chihuahua started with the where this industry is going. Chihuahua is VP: Chihuahua was chosen from the desire to core products, i.e. sheet metal. HSM: Chihuahua has the infrastructure to Time is a logistical measure as well, and two main certifications that drive quality, strong in terms of aerostructures and inte- be in close proximity to original equipment support the aerospace industry. It has a safe Chihuahua is in the same time zone as the IS9100 and the AS 9120, and we con- riors, but it is worth noting that a majority manufacturer (OEM) customers and the abil- Is Chihuahua developing into a hub for environment, and the local people are friend- many of our customers. In Fokker’s 2020 tinually obtain new certification to uphold of the total aircraft parts are manufactured ity to provide low-cost, sheet metal fabrica- sheet metal processing and finishing; and ly. We look forward to welcoming companies vision of growth, there are three main ele- regulatory requirements of our customers. here. • tion. is TIGHITCO planning to introduce its to the region. •

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cure business from the original equip- ceive 40 to 50 operators at once, train them wide array of both chemical processing and the quantity or complexity of the parts. All ment manufacturers (OEMs), as well as for three months and then deliver these op- heat treatment solutions to third parties. We orders are time-sensitive, and we focus on more onsite support for machine mainte- erators with sheet metal operator certifica- are NADCAP- and Boeing-approved for being efficient while still delivering the best nance. We currently have three-axis CNC tions. One has to continue with training steel and aluminum heat treat in the Unit- quality. By way of thorough communica- machines; a CNC gantry machine with a within the company, but the presence of ed States, and our Chihuahua facility is in tion and mutual customer-business under- long bed for large parts; router machines these institutions adds an additional perk the process of obtaining approval from Bell standing we were able to close 2015 with for sheet metal; a water jet for cutting very to Chihuahua as a destination. Helicopter and Boeing for aluminum heat 98% on-time delivery. According to the hard materials; a forming cell, which is the Once L3 acquired its own experience in treat. Our establishment in Chihuahua and delivery agreements, representatives will machinery used to give form to aluminum operator management and process man- the services that we provide is a success make sure that processes occur on time. All sheets; as well as three hydroforming ma- agement, we could provide in-house train- story for the city, as we contributed signifi- orders are inspected, counted, photo identi- chines, one of which is long bed. ing, but together with the aerospace clus- cantly to fill a gap in the local supply chain. fied, and loaded onto the system before they L3 has the unique capability to work with ter, the technical schools were able to adapt are shipped. long pieces of different types of metals, their curriculum as to have specializations. What was the incentive for MFCO to es- which is often a limiting factor for compa- L3 relies on relationships with technical tablish a facility in Chihuahua? Can you describe the array of processes nies of our craft. Another unique capability schools for our recruitment of technicians, Beechcraft moved a significant portion of that MFCO Chihuahua provides? What that we can offer to the industry is stretch- as they understand the requirements of the its operations to Chihuahua and focused on new offerings have recently been imple- ing and forming processes for aluminum industry and provide hands-on training assembly. Though it produced most of its mented or are impending by MFCO? extrusions. Currently L3 is the only fa- with similar equipment. structures internally, it decided to outsource Chihuahua’s facility has a NDT process Alvaro cility with stretch-forming capabilities in Rene chemical processing operations, creating a line where we inspect all parts for cracks Chihuahua. With all of our equipment, What is L3’s role in the further devel- demand for contract metal finishing servic- and damages as required. Our hybrid line Aguilar we are able to produce machining parts, opment of the aerospace in Chihuahua? Espinosa es. Our main goal was to become certified for chemical processing has three different aluminum-sheet metal parts, and finished The vision is to offer the aerospace mar- within two years for all OEMs operating in types of anodization processes, and chemi- parts for any type of aircraft. ket critical parts at a competitive cost, all Chihuahua. Currently we are approved by cal conversion for sheet metal parts. Passiv- the while ensuring the highest quality and Cessna, Boeing, Bombardier, UTAS, Bell ation capabilities will soon be added to the Where does L3 source its supplies, and on-time delivery. The expertise of Crest- Helicopter and recently Honda Jet. MFCO hybrid line, hopefully by the close of 2016. General Manager Plant Manager what is your assessment on the local view Aerospace, which is our parent plant, was able to develop a commercial process- We also have a skilled masking department; L3 CRESTVIEW AEROSPACE METAL FINISHING CO. supply chain? is very extensive, and their technical sup- ing contract and strategic partnership with masking is a very artisanal and critical pro- CHIHUAHUA OPERATIONS CHIHUAHUA (MFCO) Since our operations are based on alu- port can help L3 make a difference in the Bombardier; we are currently working on cess, requiring sensitive and precision minum and sheet metal, we have a small industry with regards to new processes and future approvals for products that Bombar- work. In addition, our internal certified lab number of suppliers. All supplies are cur- products in the Chihuahua region. dier is aiming to bring to Mexico. Most of offers chemical testing, and MFCO has the rently imported from the United States. It L3’s capabilities are based on sheet met- their aerostructures are imported, but ap- capability to fabricate its own equipment will be beneficial for L3 to have a supplier al, but we are not limited. We intend to proximately 85% of the few that they buy and undergo blasting processes. base in Chihuahua, as it would decrease work on composite materials and plastics, in Mexico come from Chihuahua. MFCO currently ships an average of 3,500 lead times and costs. as these capabilities reside in our parent pieces a day, which only accounts for about We need local suppliers that can conglom- plant. The initial idea was to establish a What differentiates MFCO in the mar- 70% utilization of its current capacity Can you give a brief introduction to L3 erate the supply and demand of several company that would grow continuously. Having opened in Chihuahua in 2011, ket? of its first shift. Most of the parts that we Aerospace and how the company has companies so that the inventory invest- L3 comes from the same school of thought can you provide a brief history of MF- The way that MFCO handles customer ser- process go to local Chihuahua suppliers. evolved since its establishment in Chi- ment makes sense. It is easy for a maquila- and we know that sustainable growth is CO’s presence in Mexico and how it has vice gives us a great advantage. There is a MFCO Chihuahua’s greatest demand lies huahua? dora to obtain an Immex permit, and there necessary for a company to survive. To since evolved? significant amount of close communication in anodizing aluminum, chemical conver- L3 wanted to establish manufacturing op- are many tax return benefits. The gap in achieve sustainable growth, we operate as Established in 1940, MFCO is a family- with our customers and we try to really un- sion, primer, top coats, teflon and masking erations in a lower-cost region as a means the local supply chain offers many oppor- an independent company from our opera- owned business that specializes in chemical derstand their needs. By implementing ef- for electrical bonding—the core processes of enhancing competitiveness. Consider- tunities for investors. tional branch. The main difference is that processing and, as mentioned, our Chihua- ficiency programs, we gain more capacity of the Mexican aerospace industry. Alu- ing we already had a customer in the re- we are a profit center and not a cost center. hua operations commenced in 2011. We are and we can also reduce costs for our cus- minum heat treat, aging and straightening gion, Chihuahua was an ideal location, Where does L3 source its employees, Our sheet metal cutting and forming capa- the largest privately owned aerospace pro- tomers. MFCO decided to diversify with capabilities will be added in 2016, follow- and the city is particularly focused on and what is the size of the current op- bilities will continue growing for the en- cessing company in North America and also OEMs, which created a large customer ing the trend of how the industry has been aerostructures when compared to other erations? tirety of 2016 and beyond. We are already maintain the most special process approv- base. Some of our customers are vertically transferred into Mexico. Integrating steel Mexican regions. Another motivation was L3’s operations are relatively new as we in conversation with potential customers als for Boeing and other aerospace origi- integrated and have internal special pro- processing into our operations will be the that sheet metal operations require special initially started production in March 2015. that require other techniques and tech- nal equipment manufacturers (OEMs). The cesses, but they will still outsource some logical next step. processes, and these processes are already We are a small team with about 30 people, nologies, forcing us to update our opera- Chihuahua facility occupies 60,000 square services to MFCO as we have the expertise, MFCO is currently developing other NDT provided by the Metal Finishing Co., and of which the majority are engineers. There tions and offerings according to the latest feet of floor space with room for growth. the capacity and the certifications. Another techniques with its customers. The aim is to L3 was able to open its facility in the same are not many operators on the team, as ev- demands of the industry. The timeline to MFCO prides itself on being a one-stop key differentiator is our ability to be a one- transfer the entire service scope of MFCO building. erything is centralized around establishing start our new operations will take about shop solution for its customers, as it spe- stop shop for all of our customers’ process- to the Chihuahua facility, but we need to the systems and processes. The Chihuahua one year, giving L3 the projected start date cializes in non-destructive testing (NDT), ing needs. follow the industry trends. Six months ago Can you elaborate on the equipment market offers an abundance of skilled en- of 2017. The diversification of knowledge surface finishing and plating. Heat -treat MFCO decided to add aluminum heat treat- and processes within the L3 facility? gineers as a result of the city’s rich history. and having a team with forward thinking ment capabilities were also added to our What on-time and quality-control mea- ment that will be ready for operation soon. L3’s facility in Chihuahua is 60,000 sq. ft. Cenaltec, a local institution, is an excel- and a vision is extremely motivating. • scope of services within the last two years. sures does MFCO have in place? As the industry expands with regards to equipped with new Haas CNC machines. lent training center and a good baseline to We are the first independent aerospace pro- MFCO can turn around orders within three steel, we could eventually install heat treat- Using well-known brands helps us to se- source employees. The institution will re- cessing company on the continent to offer a to five days; of course, turn times depend on ment for steel. •

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Aerostructures, NORDAM Aerospace, Zodiac Aerospace, and EZ Air collaboration with the corresponding clus- What role will the Parque Tecnológico TARGETED Interior Ltd. are working with composites, which is why Cenaltec is ters, we link our students and professors with play in the overall picture of the aerospace considering moving towards those types of courses,” noted Alberto projects in the aerospace industry. For exam- industry in Mexico? EDUCATION AND Salomon, director of Cenaltec. “Last year we bought an electrical dis- ple, Honeywell will assign challenges related This park is one-of-a-kind in Mexico with re- charge machine that has six-axis movement. Even though no one has to a part or component and the students will gards to the entrepreneurial ecosystem pres- THE FUTURE OF asked for it, we want to be competitively prepared,” added Ramiro then work on solutions within a given dead- ent in the way it was physically constructed. Cedillo, a professor at the school. line. These projects help mature the capabili- The park can offer laboratories for testing, CHIHUAHUA’S Realizing the supply-chain problem, educators are trying to fill the ties of the next generation of aerospace. We entrepreneurship programs, companies fo- gaps by fostering an entrepreneurial spirit: “The goal is to have stu- have no goal to enter into the manufacturing cusing on research and development (R&D), AEROSPACE dents create their own businesses as local suppliers for the aerospace sector at this stage, as the aim is to develop and support from the industry clusters. After industry—currently, 92% of aerospace industry suppliers are not lo- beyond that. a social impact survey, the Parque Tecnológi- INDUSTRY cal,” explained Dr. Antonio Ríos Ramírez, director of Chihuahua’s An intention of the Parque Tecnológico is co received a 0.6% PVI. Eventually we want Parque Tecnológico. to develop an entrepreneurial spirit and at- what takes place within this infrastructure to The Parque Tecnológico was built as a campus for Tec de Monter- titude within its students. The goal is to have contribute 1% to Chihuahua’s GDP. As Chihuahua’s aerospace cluster expands, the need for an equipped rey, but also to connect companies related to software, automation and students create their own businesses as local workforce will grow accordingly. Over ten universities contribute to electronics to the aerospace and automotive industries. Companies on suppliers for the aerospace industry—cur- As the director for the R&D extension of the local labor pool, six of which offer aerospace specific degrees. The site include BTEC, FabLab, and Goal Tech—a 3D printing and en- rently, 92% of aerospace industry suppliers the campus, can you elaborate on what de- challenge is not the availability of people in itself, but rather, manag- gineering solutions company developed by a student and incubated are not local. Solving that problem starts velopments are currently in progress and ing expectations as to what type of jobs will exist upon graduation. within the park five years ago. At present, Goal Tech is supplying both Dr. Antonio with creating awareness and building oppor- what can be expected? Fundacion CIDAC, in collaboration with the United States Agency Honeywell and SAFRAN Labinal. tunity. We try to partner with aerospace companies for International Development (USAID), published a study in 2014 At the Universidad Tecnologica de Chihuahua (UTCH), a new Center Ríos Ramírez that grant specific research projects, mainly reporting on the mismatch between taught skills and actual needs. In of Innovation and Design for the Aeronautical Sector (CIIDA)—a re- How is the Parque Tecnológico funded related to parts and components. Together Chihuahua, high school training programs were outdated, making the sult of the commitment between the Mexican President Enrique Peña and what is the business model behind the with Soisa, we developed an impressive developed skill-sets non-transferrable outside of the classroom. These Nieto and his French counterpart, François Hollande—has commenced way in which it operates? project related to the design of aircraft seats findings, along with intelligence provided by local industries, sparked construction. With 25 PLM of 50 PLM work stations already installed, To build the infrastructure, the park received and the components of the seats. Director General the creation of Programa Rutas, which aims to retarget youth into the laboratory hopes to serve the purpose of adequately transferring funding from Monterrey Tech, the private Aerospace companies are just now starting to available job vacancies by recalibrating existing curriculums, once the knowledge from French professionals abroad. “Additionally, this cen- PARQUE TECNOLÓGICO sector, and the federal, state and municipal open up to design capabilities. The difficulty pilot class graduates in May 2016. “Many people forget that while ter will host a delegation from the Mexican Space Agency, which will CHIHUAHUA governments. To secure some financial sta- lies in that there are not enough people to there is certainly room for engineers in the aerospace sector, the vast complement UTCH’s curriculum with further experience and knowl- bility, we have small- and medium-sized supply this demand. There is a 20-year plan majority of the positions available are technical. We want to equip edge,” noted Dr. Benjamin Palacios Perches, dean of UTCH. companies in the park that pay a monthly for universities related to the necessity of individuals so they will find work, so it is necessary that there be dia- Other universities—such as Universidad Politecnica de Chihuahua, fee for space and access to the school’s re- technical and professional people. Universi- logue between the public sector, the technical high schools, and com- Tec de Monterrey, etc.—see opportunities for masters level programs sources. These companies, as well as the ties are precisely focused on investing in hu- panies,” said Jorge Barragán, director of Programa Rutas. in the future, but the reality of the industry’s demands still remain ma- projects from the automotive and aerospace man capital and making a substantial effort After the initial establishment of major OEMs in Chihuahua in 2005, a quiladora-centric. The excitement is surely present, but currently the industries, make the park’s establishment to reach goals in design development. technology-training center, Cenaltec, was created to address the imme- larger question lies in endurance and follow-through. “This industry sustainable. diate skill deficit for CNC machining, sheet metal assembly, and struc- needs to walk before it can run,” posits Salomon. Can you give a brief introduction to the What technological advancements co- tural assembly. To date, nearly 4,200 students have passed through Parque Tecnológico and how the campus What case studies can you highlight as a incide with the changing demands and Cenaltec’s programs. Though there have not been drastic changes in has evolved since its establishment? successfully cohesive relationship between trends within the aerospace industry? regards to training necessities, the pull to continue experimenting with Conclusion Entrepreneurs, the private sector, and the the Parque Tecnológico and an aerospace The Parque Tecnológico is involved in R&D more advanced technologies seems to draw from an eager anticipation government all came together to develop company? for new technologies, and we try to utilize of what is to come from Chihuahua: “So far in Chihuahua, Fokker With its main products and services being high-precision machining, a vision for the city of Chihuahua. We se- The company Goal Tech was created, devel- them in current projects—for example the harnesses, seats, aircraft parts, structures, slides and rafts, turbines and lected the aerospace, automotive and metal oped and incubated within the park by one of shift in going wireless in the aerospace in- heat treatment, the volume of exports from the aerospace industry in mechanics industries as key focal sectors our students five years ago. Currently, Goal dustry. Collaboration with other universities Chihuahua exceeded $1.5 billion in exports per year as of the close since Chihuahua has 50 years’ experience in Tech is now a supplier working with compa- in terms of aerospace projects is important of 2015. Covering more than 5 million sq. ft. of industrial buildings, the automotive industry and about 15 years’ nies such as Honeywell and Labinal within for increasing capabilities. Chihuahua’s aerospace sector is establishing its predominance both in experience in aerospace. Over the years the the aerospace industry. Mexico and internationally. Presently, three out of every ten jobs in government has made significant efforts to Are you able to orient the students’ efforts To what extent would the Parque Tec- Mexico’s aerospace industry are generated in Chihuahua, a statistic invest and bring aerospace companies to in incubating different business and research nológico hope to evolve in the coming two that is expected to increase. Chihuahua, a major reason why the indus- ideas to fill specific gaps in the market? to five years? Confidence in this sector permeates every aspect of the grander pic- try has seen significant growth. The Parque There are huge opportunities in the market, The Parque Tecnológico needs to support the ture—students, educators, government, small businesses, large multi- Tecnológico was the needed infrastructure to as there are still numerous gaps in the supply aerospace industry in terms of research re- nationals—and with each interview, expansions were nodded as inevi- best develop people and connect companies chain. Specifically, a potential business ven- lated to technologies but also more efficient table. “In the same way that one place can have certain characteristics related to software, automation and electron- ture that needs more attention is small parts ways of assembly. We do have very good tal- that are impossible to imitate somewhere else, the manufacturing, ics to the aerospace and automotive indus- and components, as these need huge amounts ent in that regard, and we aspire to improve reparation, and overhaul of an aircraft is only possible in certain places tries. of investment. Our administration is focused engineering, testing and design. Synergy and where the sum of competence, abilities, and circumstances come to- The Parque Tecnológico is aerospace- and on determining what parts and components collaboration between universities will cata- gether to bring forth growth,” said Martin Flores, director of Colegio automotive-focused and is mainly lead by can be used in a startup business and then lyze advancements in the aerospace and au- Aeronautico (CAAMEX), “Chihuahua has that combination.”. • design, testing and engineering. Through building the company from there. tomotive industries in Chihuahua. • Image: Universidad Politécnica de Chihuahua (UPCh)

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and graduating professionals adapt quickly vation or software development? licopter were also developing in Chihua- Since the aerospace industry is growing into the workforce. Through site visits and BPP: UTCH is constantly updating its hua, making the demand for skilled labor so rapidly, how is Cenaltec able to keep internships, students graduate familiarized laboratories. Our Center of Innovation incredibly steep. An institution needed to up with the evolution of technology? with how the companies function and de- and Design for the Aeronautical Sector be developed so that thousands of people AS: Cenaltec utilizes the latest and great- velopment opportunities. Our faculty is (CIIDA) is a result of the commitment be- could be trained in the shortest amount of est technologies from the companies them-

BPP also in constant contact with companies to tween the Mexican President Enrique Peña CDR AS time possible, because all of these compa- selves, as we also conduct training on-site, be up-to-date with current knowledge and Nieto and his French counterpart, Fran- nies were eager to commence operations. which saves on overall costs and ensures technology, allowing our students to be çois Hollande, to establish this center. Af- Courses have now evolved to include spe- companies’ continuous improvement. best prepared to fill job openings. ter several negotiations led by the State’s cializations such as electrical harnesses for Cenaltec has been working on-site with UTCH currently has 1,254 collaboration governor, Cesar Duarte Jaquez, the Secre- helicopters, lean manufacturing and qual- Cessna since 2007, in which we train the agreements between ourselves and com- tary of Education at the federal level has ity assurance. trainers for their two factories in Chihua- panies in the production sector. These decided to establish this center at UTCH. hua. The same has been done for Hawker FRR agreements range across industries; from This building will require an investment of RC What skills are in the highest demand Beechcraft and Bell Helicopter. aerospace, automobile, metallurgy, etc. $45 million pesos, equipped with 50 PLM presently? RC: Cenaltec ensures that its trainers trav- We provide qualified laborers, which con- work stations that will allow our students AS: The multitude of people who were el around the country and the globe to ex- tributes to UTCH’s level of prestige both to be involved in design processes advised Chaquer Dajlala trained in all of the above aspects were pose them to the latest technologies. Last Dr. Benjamin in and out of our state borders. UTCH al- by professionals from France that will needed at the time, but Chihuahua does not month, some of our instructors went to the lows students to take part in exchanges or come to transfer knowledge. Additionally, Ricarte, see the addition of a new company every United States to attend a seminar concern- Palacios Perches scholarship programs abroad sponsored this center will host a delegation from the month; therefore, there is no great demand ing CNC machining and brought back the by the government, and when our students Mexican Space Agency, which will com- Alberto Salomon for sheet metal assembly anymore. To idea that using liquid nitrogen on the ma- & Francisco return, they transmit a new mentality to plement UTCH’s curriculum with further some extent, this can be seen in regards to chines will elongate equipment lifespans. Rodriguez Rico their peers. It transforms attitudes towards experience and knowledge. & Ramiro Cedillo machining. If we do not attract more com- Cenaltec is the only school in the north- navigating their career with a strong sense Out of 129 technological universities in panies to Chihuahua, labor demands will ern region of Mexico to have F5 machin- of security. Chihuahua is changing day by Mexico, UTCH was awarded the center. be stable. However, new developments are ery and an Acumen milling machine. Ad- day and is becoming a better place realize The most important aspect of the project is appearing on the horizon; composites be- ditionally, we receive new performance BPP: Dean CDR: Director General of INADET transformational careers. that the state will now contribute to a sys- ing the prime example. So far in Chihua- training from overseas through our part- FRR: Director AS: Director of Cenaltec UNIVERSIDAD TECNOLÓGICA tem of integrated universities that will in- RC: Professor hua, Fokker Aerostructures, NORDAM nerships. For example, through Fokker Do you have any specific example of crease the supply of highly trained profes- Aerospace, Zodiac Aerospace, and EZ Air Aerostructures we know have the knowl- DE CHIHUAHUA (UTCH) CENALTEC how UTCH has changed its curriculum sionals from all over the state. The center Interiors are working with composites, edge and technology of Jet-Melt. to adapt to the necessities of the aero- already consists of 25 PLM workstations. which is why Cenaltec is considering mov- space industry? In August, we will inaugurate the official ing towards those types of courses. This What new efficiencies coincide with the BPP: Our graduates have a strong presence building and continue installations. would commence by conducting training Jet-Melt process? in every company based in Chihuahua. In at facilities that are currently involved in RC: One of the main differences lies in the aeronautical industry, 67% of the in- What goals does the university have for composites, and partnering with those who that it does not require a pre-preparation novation and design group in Labinal, a the coming five years? have a specific need for composite devel- in mixing the adhesive components, and Can you give an overview of the univer- company from the SAFRAN Group, are BPP: UTCH is developing a pilot plan opment skills to secure the proper equip- it is instantly ready for use. The adhesive sity and tell us a bit about the history of UTCH graduates. with the same career paths but taught com- ment. is quickly melted for a seamless joining of UTCH’s involvement in Aerospace? FRR: Labinal, which has its design group pletely in English. We have another cam- Can you give a brief introduction to CDR: Cenaltec’s specialized trainers and the parts. This will start to become more BPP: The Universidad Tecnológica de Chi- here in Chihuahua, bases its design process pus south of the city where the first class- Cenaltec and how the institution has adaptable services work as a point of at- present in Chihuahua as composites be- huahua (UTCH) is approaching its 15th on the Dassault Systèmes CATIA software. room building is being finished. UTCH evolved since its establishment? traction for companies looking to invest in come more common, but the humidity of anniversary since it was established by At UTCH, we offer courses in our indus- needs to take advantage of the 30 hectares AS: Cenaltec Chihuahua started opera- Chihuahua’s aerospace industry. We work the state will remain a challenge. Since decree in the Congress of the State, which trial processes and other programs that of space we have to grow, because we tions in 2006. We have been growing and closely with the government to ensure that the air we breathe is roughly 12% water, was created as a public organization de- teach students this software. Right now we predict that in 5 years our enrollment and incorporating new areas of expertise into all those who relocate here are fulfilled in companies have had issues with composite centralized from the government. UTCH have a new product lifecycle management faculty will have doubled. UTCH is also our training programs. We are not exclu- their human-resource needs. bonding in the past, but this can be miti- has grown sustainably throughout its short program that teaches this software for use about to announce the launch of two mas- sive to the aerospace sector, but 4,200 of AS: When Fokker Aerostructures came to gated with proper investment in tempera- history, constructing a new building each in developing projects applied to product ters programs, and eventually we hope to our students are working towards, or are Chihuahua, Cenaltec was already trained ture control. year, and our campus now consists of 18 lifecycles. In the case of Honeywell Aero- establish a doctoral program. already in, that field. Cenaltec’s course in the tools and processes for sheet met- edifices. Initially having only 264 enrolled space’s plant, where they are dedicated to FRR: After conducting a situational analy- content is driven by the private sector. al assembly and structural assembly, but How does Cenaltec hope to grow in the students, continual expansion is needed to the manufacturing of turbines and parts, sis, UTCH plans to expand in two aspects: In 2006, Honeywell aerospace moved a we had only been working with Ameri- coming five years? accommodate our 5,000 students. UTCH we offer specialization a in precision ma- the first being manufacturing and the other facility to Chihuahua as everything was can companies. Fokker brought three of RC: Our work is closely related to what is modelled after the dual system in Ger- chinery, where students gain experience in maintenance. In manufacturing we have properly developed here, with one main its best technicians from Holland to train our customers require, but from time to many and the alternation model in France in using conventional machines as well as more short term goals. We are really excit- exception: people. Chihuahua has a tech- staff on the intricacies of their systems and time we like to preemptively act in the in order to harbor close ties with industry CNC equipment. We are also the only uni- ed to participate in the aerospace industry nology park, impressive services, the wel- ways of operating. Thus commenced our direction we hope Ceneltec will go. For needs. The model entails an interrelation versity that has a waterjet system for cut- on an international level. • coming from government and community training-the-trainers program. After train- example, last year we bought an electri- between the production plants and educa- ting metals and other materials. etc., but there was a deficit of skill for com- ing comes recruitment, which then creates cal discharge machine that has six-axis of tion, and we have designed a flexible cur- puter numerical control (CNC) machining, a sustainable pool of talent. Today Fokker movement. Even though no one has asked riculum that adapts to the specific needs What changes have you had to make to sheet metal assembly, and structural as- Aerostructures has about 150 technicians for it, we want to be competitively pre- of the companies operating in Chihuahua, adjust to the trends in technology inno- sembly. Beechcraft, Cessna, and Bell He- who have gone through Cenaltec. pared for the needs of the industry. •

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technologies, and administration management capacity for 30 students and is equipped with structural reparation, sheet metal, structural at a high level, especially when one takes of small- and medium-sized businesses. Our various CNC machines, as well as computer- analysis, non-destructive tests, metrology, into account the amount of experience that students spend three and a half years obtaining assisted manufacturing (CAM) software for machining, maintenance, aircraft power has been attained in recent years. This be- their degrees, including at least 800 hours of G-Code and M-Code machine programming, plant overhaul, applied aerodynamics, hy- ing said, Chihuahua still has room to grow working in their respective industry. where the students practice on control pan- draulic, pneumatic, and electric systems. regarding the level of education. els identical to those on CNC machines. Stu- On average around 200 students graduate One practice that we focus on is making sure What relationships do you have with the dif- dents can apply their technical knowledge in per year from our certification programs those who graduate from current aerospace ferent companies in the area to achieve these our manufacturing lab, using machines such as and workshops. Between 60 and 80 gradu- programs are prepared to immediately enter necessary hours? lathes and milling machines in manual or CNC ates are engineers who work in design and the aerospace workforce following gradua- UPCh has a strong link with industry. For ex- configurations. Drills and welding machines production, while 50 to 60 are educators. tion. This is why theoretical and technical ample, one of our students studied aeronauti- are also used in this lab, among other machines The remaining numbers are college students education systems work dually; this indus- cal engineering and completed an internship and tools. Academics and students to carry out who seek to become specialized in some- try requires hands-on knowledge. with Cessna, focusing on composite materials. their projects can use this equipment. thing particular to a job in the aerospace in- Companies specifically ask for UPCh students UPCh’s materials lab contributes to the devel- dustry. With aerospace as a rapidly expanding because we mold quality technicians through opment and skills related to properties analy- industry in Chihuahua, do you predict an competency-based training. Classes such as sis and materials resistance, in accordance to Where does CAAMEX source its aero- uptake in the number of students pursu- Science of Materials properly teach students courses such as: elasticity, resistance of materi- space engineering professors? And what ing that field? how to form composites, the engineering of the als, matrix analysis of structures, manufactur- kinds of industry related machines do Absolutely. This trend can even be found Dr. Héctor structures, the angles of formation, the chemi- ing processes, science of materials, mechanics Martin F. students have access to on campus? seeping into this area’s high schools, which cals and safety behind the processes etc., giv- of solids, machine elements design, vibrations, Our multinational instructors currently work have begun to develop more training pro- García Nevárez ing them a solid foundation for practical work thermal machines design and CAM. Flores in maintenance, reparation, and inspection grams to adhere to these needs. Technical in aerospace plants. The theory and instruction The automation lab is to develop capabilities of aircrafts in several manufacturing plants certificates, bachelor’s degrees, and - engi that they learn in the classroom is directly ap- and skills related to industrial automation, in the area. Students have the privilege of neering programs all already exist in with a plicable to their work in the private sector. Not hydraulic and pneumatic movement control, working with tangible materials, actual fuse- focus on aerospace. only do they learn the necessary hard skills, but guided by courses such as: mechanics of flu- lages, and with real power plants rather than Director Director UPCh teaches the humanistic side of engineer- ids, internal combustion engines, hydraulic and being limited to a workbench with sample In what ways does CAAMEX hope to ad- UNIVERSIDAD POLITÉCNICA ing as well. pneumatic systems, thermal machines design, COLEGIO DEL AERONÁUTICO parts. Our flight simulation room emulates vance over the next five years? DE CHIHUAHUA (UPCH) electronic programmable devices, braking sys- CAAMEX (CAAMEX) a working aircraft with its diverse systems, CAAMEX is already addressing the pro- How many students graduate from UPCh’s tems, steering and suspension and automation. as it presents real-life defects that would be jected needs of the Chihuahua Aerospace aerospace programs each year? Metrology is aimed to increase knowledge and difficult to experience without jeopardizing Cluster. As demands surface, the respective This year we will have 68 graduates, and that skills related to dimensional measurements in equipment. The simulator allows students to topics are added to our technical programs. number is always increasing. As the aerospace accordance with classical physics, static, me- develop their field-specific skills. In 2016, CAAMEX will have access to cur- industry continues to grow in Chihuahua, more trology and computer-aided drawing. riculums accredited by the International students are taking interest. Our design lab is specialized in computer-as- Are there any internships or co-op part- Civil Aviation Organization (ICAO), which sisted design, computer-assisted engineering, nerships that CAAMEX offers students, will add more value to the training programs Having been established in 2008, please pro- How does the UPCh curriculum properly CAM, reverse engineering and quick prototyp- Can you give a brief introduction to or are there special relationships with the offered to aerospace businesses. vide a brief introduction to UPCh and the prepare students to fill the vacant roles in ing with help of a 3D printer, a plotter and the CAAMEX and how the institution has private sector? Please provide a final message for GBR’s university’s involvement in the aerospace the aerospace industry? And what kinds of latest versions of software such as NX, CATIA, evolved since its establishment? CAAMEX has active agreements that link readers, the international aerospace com- industry? industry related machines/specialized soft- ANSYS and Solid Works are used. In UPCh’s CAAMEX was officially established in it with many educational institutions, which munity. La Universidad Politécnica de Chihuahua is ware do students have access to on campus? navigation lab, students can simulate real 2012 as a training and consulting firm, but allows its students to receive the training In the same way that one place can have an institution of higher education belonging We are constantly in conversation with the flights with prototype aircraft using specialized its beginnings trace back to 2004 when its they need, but at the same time adhering to certain characteristics that are impossible to the system of polytechnic universities of Chihuahua aerospace cluster, the Chamber of software, which is FAA- and DGAC-approved. founding partners started servicing busi- the needs of the private sector. This guar- to imitate somewhere else, the manufactur- Mexico. There are about 58 universities with Commerce, and other relevant institutions, lis- We can also test flight electronic devices for in- nesses that repair and manufacture parts for antees that students’ knowledge areas are ing, reparation, and overhaul of an aircraft the mission to form professionals with higher tening to the direct needs of the industry and strument flight. small aircrafts. Responding to the increas- not out of touch with what the aerospace is only possible in certain places where the social and technical competitiveness, where responding accordingly. For example, Hon- ing demand from the aerospace industry, industry needs presently, in both the short sum of competence, abilities, and circum- our academic programs and our educational eywell was in need of computer numerical In what realms does UPCh hope to advance CAAMEX started to provide training, con- and long term. Constant collaboration with stances come together to bring forth growth. model is based on teaching skills and being control (CNC) operators, metrology and ma- over the next five years? sulting, and design of educational manuals said institutes, and the Chihuahua Aero- Chihuahua has that specific combination of relevant to the national and international pro- chining processes specialists. UPCh now has We now have six graduated classes from our to those working on the technical and uni- space Cluster, ensures that there is always factors that allows for success in the aero- ductive sectors. Our institution is continually courses that directly teach those skills. Our aeronautical program, and hope to incorporate versity level. Over time, training was of- an influx of prepared personnel in all needed space industry. These factors have been in recognized for the quality of our educational students also participated in one of NASA’s our alumni in best crafting future classes. In the fered to engineering students from a number areas. constant development over the years, which programs, research, specialized services, and design competitions, winning an award for cre- medium term, graduate level and PhD offerings of universities with hopes of enriching their has made Chihuahua the perfect place for the leadership of our graduates who help sus- ative engineering design. will be added to our university capabilities. professional potential. How would you rate Chihuahua’s educa- any stage of a project—from the design tain the aerospace industry. Currently, UPCh The vehicle electrical and electronic systems Due to CONACYT, many of our students are tional capabilities in comparison to other stage of an aircraft to its overhaul and main- is on the course of accrediting its programs in lab bench tests for aeronautical communica- presently going abroad to achieve higher-level, What are the students’ academic track aerospace hubs in Mexico? tenance—to attain success. Presently, Chi- engineering with the purpose of improving the tions, as well houses the equipment necessary aerospace-related degrees, giving them an in- options? And how many students gradu- Previous factors ignited rapid growth in huahua is named the aerospace center of quality of the educational process. UPCh has for power testing, channel change, modula- ternational perspective on the global industrial ate each year? the aerospace industry, which raised a need Mexico. We invite you to visit the region four educational programs: aeronautical engi- tion, consumption, alarm flags, parts location, trends. UPCh is still a young university, but we The options vary greatly and courses are of- for high-paced training. In regards to tech- where the word ‘impossible’ does not exist neering, automobile mechanics, environmental readjustments, etc. The CNC laboratory has a have great character and big aspirations. • fered in the following areas: manufacturing, nical capacity, I consider Chihuahua to be concerning aerospace projects. •

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NUEVO LEÓN: MONTERREY'S INDUSTRIAL EXCELLENCE APPLIED TO AIRCRAFTS

“Nuevo Leon has a very strong and developed industry compared to other regions, especially in metal mechanics. In contrast to the other aerospace clusters in Mexico, the aerospace industry in Nuevo Leon started with tier-one and tier-two suppliers.”

- Pauline Medori, Managing Director, Monterrey Aerocluster Image: FRISA EDITORIAL Global Business Reports Global Business Reports EDITORIAL

Image: Maquinados Industriales Mitras, S.A. de C.V. (Mimsa) Aerocluster said: “In contrast to the other aerospace clusters in Garza T. Junco. “In any case, the barrier to entry for the aerospace AN INTRODUCTION Mexico, the aerospace industry in Nuevo Leon started with tier industry will always be very high. It requires a long-term strategy one and two suppliers. Mexican companies, like Frisa Aerospace, in order to establish the trust that is so essential to being a supplier started to develop components for the aerospace industry.” in this sector,” he continued. TO MONTERREY’S The Monterrey aerospace cluster was established in 2009 to sup- It is important to note that, unlike Mexico’s other aerospace hubs, port the city’s growing aerospace sector through cementing the the majority of Monterrey Aerocluster’s members are Mexican AEROSPACE link between the triple helix that is government, industry and owned companies. In fact, 80% of companies with operations academia. The state government has representation in the cluster in the aerospace industry are local businesses. One exception is INDUSTRY through SEDEC and the cluster acts as a guide for the government Monterrey Aerospace, the sister company to MD Helicopters and as to the policies to be taken for the development of the aerospace a defense oriented OEM. Despite being the country’s smallest sector. The cluster is also implemental in educating the sector. aerospace hub in terms of number of companies, Monterrey is an To date, the Monterrey Aerocluster has imparted 7,402 hours of example to Mexico’s other clusters as to how local companies can training, supporting 68 companies. In 2014, the aerocluster was successfully diversify their activities into the aerospace industry. awarded the Bronze Certification for cluster management by the Today there are around 26 tier one and tier two suppliers operat- European Secretary of Cluster Excellence. According to the clus- ing in the Monterrey region mostly focused on metal mechanic ter as of 2015, Monterrey’s aerospace sector directly supported work. Companies that have diversified into the aerospace industry more than 3,000 jobs and last year saw sales over $800 million. have focused on fields that bear resemblance to their traditional The expectation for 2016 is a growth of 13%. sectors thus lending Monterrey a specialization in high-precision Nuevo Leon’s main success story in the aerospace industry is machining. Benito Gritzewsky, general director of, HEMAQ, a Frisa Forjados. Originally a manufacturer of heavy capital goods company that provides integrated solutions for CNC Machine for industries such as oil and gas and power generation, it is now tools, said: “Monterrey’s rich history in metal mechanic processes one of the top three international providers of seamless rolled gave us the advantage of understanding what was needed from rings to the aerospace industry. Frisa is a good example of a well- this sector.” established Mexican company diversifying to apply its expertise Katcon garnered great success in the automotive industry manu- in the aerospace industry. “It is easier to transition from indus- facturing catalytic converters. The company is now applying its tries which are more technical and where the focus is more on expertise in the design of components to create nonstructural the product rather that productivity,” said Frisa’s CEO Eduardo composite parts for aircraft. Blanca Lopez of Maquinados Indus-

Monterrey, located in the northern state of Nuevo León, is Mex- ico’s third largest metropolitan area. The region has enjoyed considerable economic growth over the years and today is the country’s second richest city. The main industries contributing to Monterrey’s economy are the steel, cement, glass and automo- tive industries in which many of the major players operating are Mexican owned companies. These sectors continue to be the main drivers for growth in Monterrey. This is the primary reason that the region has not seen as much of a focus on the aerospace sec- tor. However, many companies are recognizing the growing im- portance of this industry, as are the government. “The aerospace industry is a strategic sector for the government of Nuevo Leon and we have been focusing substantially on getting aerospace companies into the state,” said Fernando Turner, the Secretary of Economic Development for Nuevo León (SEDEC). Companies looking to expand to Mexico see Monterrey as be- ing able to offer an established business infrastructure and can also benefit from the city’s proximity to the U.S. border and its international airport. With its rich history in industry it was only a matter of time before international players from the aerospace industry began to look to Monterrey in their efforts to develop the Mexican supply chain. Companies such as GE and Honeywell es- tablished sourcing offices in the region with the aim of developing Mexican companies to become aerospace suppliers. The model of Monterrey’s aerospace sector today differs from that of Tijuana in that it is composed nearly entirely of tier one and tier two sup- pliers with core competencies in Monterrey’s aforementioned tra- ditional industries. Pauline Medori, president of the Monterrey

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triales Mitras (Mimsa), a smaller family owned company offer- have specific aerospace degrees. Instead, the university aims to What is the importance of the aerospace In terms of foreign investment, what ing machining services, said: “Our experience in other industries develop transferable skills that can be applied in the aerospace industry for Nuevo Leon? are the strategies and processes through such as oil and gas and power generation has meant that in terms industry. “The approach that we have had for a long time is to The aerospace industry presents a bigger which SEDEC is promoting Nuevo Le- of machining our transition into aerospace has been straightfor- offer the pure basics, such as industrial engineering, mechanical challenge than some of the other indus- on’s aerospace industry? ward. The quality requirements of these industries are similar to engineering and mechatronic engineering,” said Dr. Manuel Zer- tries, but for private investors, it is a long- SEDEC has been working closely with that of the aerospace sector”. tuche, dean of science and engineering. term investment in terms of productiv- local suppliers so as to promote their ser- Metal mechanics demands secondary processes. Like in Queré- Zertuche believes that this gives the students more freedom to ity, growth potential and competitiveness. vices abroad. We work with the office of taro and Chihuahua, in Monterrey there are still gaps in the sec- move within the industry. The Monterrey Aerocluster plays an Nuevo Leon is the fifth largest state with procurement to help us find suppliers that ondary processes supply chain that need to be filled. But again, important role in ensuring that Universities in the region are kept regards to the aerospace industry and the are open to joint ventures and partner- the major challenge is lack of demand due to the low volume informed of current industry requirements so as to tailor their cur- third largest state with regards to research ships. Companies moving their operations nature of the aerospace industry. “Chemical processing is a huge ricula accordingly. and development. These ranks can be con- to Mexico are often looking to reduce their challenge. The difficulty is that there is not enough work to make While graduates may not be in short supply, one issue that the tributed to the very high level of education costs in terms of labor as well as attaching it beneficial for companies to establish themselves in the Monter- Aerocluster has identified is the lack of skilled labor. Universities Fernando in Monterrey. The region supplies a signif- their operations to the local supply chain. rey region,” said Medori. like Tec de Monterrey have identified this issue and offer techni- icant amount of human capital with excel- This results in many international compa- The arrival of Noranco, a machining and fabrication company cal programs on a company need base, but there are still no con- Turner Davila lent engineering and technical capabilities nies entering joint ventures or partnerships headquartered in Canada, may alleviate some of these challenges. tinuous technical education programs for the aerospace industry to the aerospace industry. with local suppliers in order to fulfill their Noranco’s business model is to be as vertically integrated as pos- in Monterrey. This is a key issue that the cluster members are In Mexico in general, foreign compa- needs and requirements. sible with all secondary processes under one roof. Local compa- working together to address. For Aldo Rodriguez, the Monter- nies own most of the aerospace industry, The industry has been developing at a sig- nies will soon be able to benefit from the newcomer’s internal rey site director for Noranco, this is the most valuable aspect of whereas most of the aerospace companies nificant rate and we are aiming to complete Secretary for Economic Development capabilities such as special processing and heat treatment. the Aerocluster. “As a cluster we can pool knowledge and work for Nuevo Leon located in Monterrey are not only locally the development of the different parts of Certification certainly remains a challenge for SMEs wanting to towards establishing communal training programs,” said Rodri- SEDEC owned, but also significantly growing on the aerospace sector. The next step for break into the aerospace supply chain, but the Monterrey State guez. their own without foreign investment. The SEDEC is to attract a tier one company to Government has established a number of successful programs Shared training resources will allow companies to save money by aerospace industry is a strategic sector for the region. that allow companies to become certified in six months. The cutting the costs of internal training. In this regard, the Aeroclus- the government of Nuevo Leon and we cluster also has an agreement with TUV whereby local suppli- ter must work to promote the technical level of the younger gen- have been focusing substantially on at- What are the key pillars that SEDEC ers wanting to expand into aerospace pay only 30% of the cost eration, the majority of which today only have eyes for becoming tracting aerospace companies to the state. wants to focus on so as to better develop of an audit. Despite this support, accessing finances remains a an engineer. We currently have 28 MROs that are certi- the aerospace industry in Monterrey? challenge for smaller companies. With regards to developing the In 2006, the Autonomous University of Nuevo León (UANL) no- fied by the DGAC and 4 of them certified SEDEC’s strategy is to apply the joint ven- supply chain, the focus from the government and the cluster is ticed how foreign investment was growing in the country’s aero- by FAA. ture or partnership model to several com- to develop local suppliers rather than attract international ones. space sector, and in 2007, UANL started offering an aeronautic panies in Monterrey. The focus is to diver- However, attracting a prime contractor is a major imperative for engineering program and began to look at the idea of having an What role is SEDEC playing in devel- sify existing companies into supplying to Monterrey. “A large prime contractor will definitely encourage aerospace-dedicated research center that would develop highly oping local SMEs to serve the aerospace the demands of the aerospace industry. major developments within the aerospace sector which will lead specialized human capital. The Center for Research and Innova- market in Nuevo Leon? There is a pending issue within NAFTA to significant growth,” said Secretary Turner. tion in Aerospace (CIIIA) was founded in 2012. “CIIIA offers SMEs in Mexico face a huge challenge in with regards to the mutual recognition It is important for the government to really understand the na- bachelor’s degrees, where we train aeronautical engineers with a terms of access to credit, which results in of standards and certifications within the ture and the strengths of Monterrey’s aerospace industry in order strong tendency towards design, structural design and materials very few Mexican owned companies en- aerospace industry. If this agreement is to identify which companies stand to gain most value from the like nickel and titanium based super alloys and composite materi- tering the aerospace industry. Entering the signed, it will be a significant catalyst for region and vice versa. Continued efforts must be made by the als” said Dr. Patricia Zambrano, general director of the center. aerospace industry is a long term invest- the aerospace industry in Mexico. Impos- government and the industry, through the Aerocluster, to promote CIIIA’s focus on design is important for Monterrey’s role in ment which means that return on the in- ing mutual recognition of the standards, the State’s many competitive advantages abroad. Mexico’s aerospace. According to SEDEC, though the Monterrey vestment will take a significant amount of will allow companies operating in Mexico cluster is 5th in the country in terms of size, it is third in terms of time which SMEs cannot afford. to certify their products within the country research and technology. “Monterrey especially is home to some As an economic development agency, without having to go the US. Nurturing talent – The importance of local academia of the best universities and local design and engineering compa- SEDEC tries to help SMEs to enter the nies have been able to benefit hugely form the wealth of talent,” aerospace market, but the incentives and Do you have a final message for the in- Tecnológico de Monterrey is one of the largest and most estab- said Octavio Rangel, general manger of Demaq Technologies, a support that we can offer are not enough to ternational aerospace community? lished private universities in Mexico and has 31 campuses in 25 local automation company. put these companies in a position to com- The challenge is still to convince OEMs cities across the country. The institution has been implemental in Demaq technologies want to expand into the aerospace industry pete with bigger companies. For SMEs that Monterrey has very strong capabilities improving emerging industries so as to support Mexico’s com- by offering automation solutions with a focus on testing and in- to be competitive in the aerospace sec- within the aerospace sector. The Monter- petitiveness. Human resources are one of the most important re- spections. Strong capabilities in design and engineering coupled tor, they need access to long-term loans rey Aerocluster can help to diversify exist- quirements of the industry and Tec de Monterrey is positioning with the Mexico’s highest labor rate means that for foreign com- at more flexible rates. SEDEC provides ing companies into the sector and to certify itself to be the partner of choice. Unlike UNAQ in Querétaro, panies looking to invest in Monterrey should see the destination aeroclusters with funds so as to neutralize local companies. • which is entirely, aerospace oriented, Tec de Monterrey does not for higher value added and more technical processes. • some of their costs.

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not yet operate in the industry and design States or mainly to tier-one and tier-two capital but more importantly the expertise our products. In general Mexican compa- was not yet incorporated. Over time, more suppliers in Mexico? on how to operate in this industry. After nies do not have the equipment or facili- supplier companies became certified and The supplier companies operate in both three years of activity in aerospace, Frisa ties to accommodate these components. entered the aerospace industry. Monterrey the United States and Mexican market. bought the 50% share from its U.S. part- For destructive testing, however, we man- has a group composed of one OEM, about We have noticed that although the the big- ner and now operates as an international aged to convince one of our suppliers from 26 tier-one and tier-two suppliers, most of gest OEMs and tier one companies based supplier to major prime contractors around California to establish a lab in Monterrey. which are small and medium-sized enter- in Mexico states that they want to develop the world. We were able to offer Exova (originally prises that do metal mechanic works while rapidly the local supply chain; it is a long Bodycote) a 10-year contract to incentiv- also operating on Mexican capital. process to develop a supplier-base in Mex- How important was the expansion into ize them to set up operations here. It is Most of the manufacturing companies in ico. 98% of our sales in the aerospace in- aerospace for your continued growth important for companies in Mexico that Nuevo Leon are operating in different sec- dustry of the region are exported with 50% and is this a strategic decision more want to attract suppliers to the country to tors like the automotive sector, electrical being exported to Europe. Frisa and MD Mexican companies should be taking? be able to offer a well laid out, long-term sector, mining sector, home appliances sec- Helicopters do source their suppliers from Aerospace represents around 20% of our business plan in order for the investment to tor and the aerospace sector. For all of these Mexico and are taking part in supplier de- business. Frisa’s expansion into the aero- be worthwhile. companies, the aerospace sector plays a velopment of the region. space industry has proven to be a very very important part in their operations. The strategic one as this sector is generally With regards to attracting foreign sup- exception to working in different sectors What is Monterrey Aerocluster’s strat- counter-cyclical to our other areas of fo- pliers what profile of company should is MD Helicopters, which is an OEM that egy in terms of developing the supply cus such as oil and gas. The general think- the government be targeting? Pauline works only in the aerospace industry. MD chain? Eduardo ing in Mexico is that a history in the auto- There are many labor-intensive process- Helicopters is the only military OEM in The cluster will continue to try and develop motive industry provides a good gateway es required in the aerospace industry and Medori Mexico, and is ITAR-certified. purely local supplier companies as opposed Garza T. Junco into aerospace, but this is not the case. It certainly some regions in Mexico are well In 2000, the government had interest in de- to attracting foreign suppliers. The cluster is easier to transition from industries that suited to that. However, in Monterrey, veloping a new public policy for the state, acts as an intermediate and makes contact are more technical and where the focus is where the cost of labor is higher than the in particular to promote research and de- with the supply company. CAINTRA has more on the product than on productiv- rest of the country, we can provide more velopment (R&D), innovation, and design. 3,000 manufacturing companies and, as ity. In any case, the barrier to entry for the value-added labor at a more technical lev- Managing Director CEO A research study was done with the result we have an alliance with them, we have aerospace industry will always be high. It el. OEMs should look at Mexico, in par- MONTERREY AEROCLUSTER that it was decided to adapt the Basque access to their database. The cluster will FRISA requires a long-term strategy in order to ticular Nuevo Leon, as being able to offer model from Spain. Different programs to thus source suppliers from the CAINTRA establish the trust that is so essential to be- this higher level of labor and be confident support R&D were created as well as the database amongst other database. After ing a supplier in this sector. in transferring more critical processes to development of nine clusters for the nine initial contact is made, we will support the the region. different strategic sectors in the region. contact as to build a good relationship with Can you provide details of Frisa’s prod- In 2008, a legal organization for the aero- the company. ucts and their application in the aero- Mexico still has a stigma of being simply space industry was created based on a The most important thing for the cluster space industry? a destination for cost-competitive manu- triple-helix model of industry, education, is to obtain funding for supplier develop- Frisa’s products are seamless rolled rings facturing, but in Nuevo Leon the real dif- Can you give a brief history of the Mon- and government working together. At that ment. The biggest challenge is that many and their application is almost entirely in ferentiator is the mid-tier human capital. terrey Aerocluster and what inspired time, the council consisted of six members local suppliers do not have the certification, Can you introduce us to Frisa with a engines so our customers are the engine There is a far greater abundance of engi- you to establish the cluster? from the industry, two universities, and capabilities or knowledge to operate in the brief background on the company and original equipment manufacturers (OEMs) neers in Mexico than in the United States In contrast to the other aerospace clusters two members from government. Over the aerospace industry. The cluster will con- a history of its involvement in the aero- such as G.E, Pratt and Whitney, Rolls- or Canada. It is important for the interna- in Mexico, the aerospace industry in Nue- years the association has grown signifi- tract consulting experts to do assessments space industry? Royce, and SNECMA. These rolled rings tional aerospace community to understand vo Leon started with tier-one and tier-two cantly and in 2013, we decided to include of what is needed in a company from them are a critical component in a jet engine and that the skill of Mexican engineers is the suppliers. Mexican companies like Frisa maintenance, repair and overhaul (MRO) to develop into a supplier that can service Frisa is a fully Mexican-owned company require very high specification materials as same as north of the border or in Europe. Aerospace started to develop components companies in the cluster. The cluster now the aerospace industry. We will also assist that is involved in heavy capital goods well as strict processes and controls. We for the aerospace industry. About 10 years consists of both manufacturing and MRO the supplier companies with training and components for industries such as oil and are predominantly involved in the new pro- Do you have a final message? ago, it also happened that companies like companies. educational courses. gas, and power generation. In early part of grams, as breaking into legacy programs is The aerospace industry is a challeng- Honeywell and GE Aviation started to look The Monterrey Aerocluster promotes and the twenty-first century, there was -an in challenging. Our products are used in plat- ing, but important step for Mexico as it for suppliers in Mexico and this resulted in supports all initiatives that can support What are Monterrey Aerocluster’s ma- creased interest from aerospace prime con- forms such as Trent, LEAP, GTF and the brings value for all other industries and a supply-chain-development program. the industry. Education and specialized jor goals that you would hope to achieve tractors in developing suppliers in Mexico. GEnx engines. Frisa is now acknowledged is hugely strategic from a diversification Nuevo Leon has a very strong and devel- training is very important, and the cluster within the next five years? GE and Honeywell are two companies that as a world-class player in the aerospace in- perspective. The talent is readily avail- oped industry compared to other regions, is responsible for promoting this in the in- Our main focus is to be much better posi- established sourcing offices in Monterrey, dustry and has been recognized by several able and willing to serve this sector, and especially in metal mechanics, and we also dustry. The cluster will also be involved in tioned in different strategic sectors within a city with a strong history in the manufac- major aerospace customers as supplier of Mexico can be a vital solution for interna- have an alliance with CAINTRA, which is helping companies to obtain certifications. the aerospace sector through the active col- turing industry. Their goal was to develop the year based on its high level of delivery, tional players. What is critical now is to be the regional chamber for industrial trans- The aim is for our 35 members to collabo- laboration of the triple helix. The sectors existing Mexican companies into aero- quality, and cost performance. able to establish a platform on which local formation composed of 3,000 members. rate and create projects to promote and de- are MRO for private aviation, machining, space suppliers. Frisa was one of the first small and medium-sized enterprises can There was great opportunity for growth in velop the industry. forged rings, and assembly. We want to be Mexican companies to pursue this strat- Has Frisa made any effort to externalize communicate with prime contractors and the Monterrey aerospace industry and the recognized and to have good suppliers in egy of diversification. Our expansion in any secondary processes needed for the demonstrate their potential. • first companies operating in the industry these four main pillars of the sector. Cur- the aerospace sector began as a joint ven- fabrication of its products? were the suppliers. At that time, original Where is the major market for the sup- rently we are busy redesigning our strategy ture with a U.S.-based company that was The reason that we carry out most second- equipment manufacturers (OEMs) did plier companies? Is it to the United for the coming 10 years. • able to provide us both with the necessary ary processes in-house is due to the size of

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free of charge. HEMAQ is able to perform We have not been able to fully share our rey was chosen in particular was because of government and academic institutions. This projects from the very simple to the most success stories outside of the country, the available talent that has been nurtured allows the industry to have far more influ- complex turnkey projects. Today HE- which is one of our biggest challenges. by the city’s rich history in industry. Today, ence and better chances at succeeding in im- MAQ’s customers are able to benefit from The international aerospace community universities such as Tech de Monterrey and plementing potentially beneficial changes. its high-quality engineering capabilities needs to be made aware of what is hap- UANL are playing an important role in sup- without having to look outside Mexico, pening here. As an example, Monterrey plying highly qualified human capital to the What profile of prime contractor should making local solutions more convenient is home to one of the top three aerospace aerospace sector. The decision to expand the government be looking to attract to and economical. forging companies in the world. There through acquisition rather than start from Monterrey? are huge facilities in the States of So- greenfield was taken in part because of the The profile of prime contractor that would At what point did HEMAQ begin oper- nora, Querétaro, Nuevo Leon, Baja and firm infrastructure that the previous compa- benefit most from what Monterrey has to ating in the aerospace industry and how Chihuahua that are playing vital roles for ny had in place, particularly with regards to offer is one that is involved in the integra- important is this sector for the compa- companies’ global operations. The latter human resources. tion of more sophisticated equipment such ny? state is the location of the number one ma- as electronics, flight controls, or even retrofit Mexico has a strong expertise in the metal chining shop for a huge U.S. corporation, What geographic market was this facility of interiors. There is a wealth of opportuni- mechanic processes and HEMAQ has lev- which operates over 1,100 CNC machines. established to serve? ty in the retrofit of aircraft. Even the newer eraged this to serve many industries that Companies that do migrate to Mexico find In the short term, Noranco’s facility in Mon- fleets are constantly being reconfigured and operate in Mexico. We noticed very early that they achieve success in a far shorter terrey will be more oriented to balancing the updated and Mexico, in particular Monter- on the trend of aerospace business arriv- time than they expected. From their site footprint of the corporation in North Amer- rey, could play a leading role. Monterrey’s Benito ing in the country. Our involvement in in Querétaro, a very well known original Aldo G. ica and will take on processes that are not industry is young and still adapting, but this sector really took off with a project in equipment manufacturer achieved a level necessarily well suited to our other facilities growing exponentially. The arrival of large Gritzewsky which we were approached by a very large of performance in year three that it did not Rodríguez due the costs associated with labor. Looking international players involved in the retro- European aerospace company that seen expect until year seven. to the future, I foresee more prime contrac- fit or reconfiguration of aircraft could be a our capabilities and saw that they matched tors arriving to Mexico and we are position- catalyst for a boom similar to the one that their requirements. After a serious dia- As President of FEMIA, do Mexican ing ourselves for when those opportunities Querétaro has seen. logue we were granted this project that has small and medium-sized enterprises arise. Director General Site Director since turned out to be far more productive (SMEs) that want to serve the industry Over the next five years what challenges HEMAQ with the use of our machines, our process- have sufficient access to government NORANCO, What are the key services this facility is do you foresee in your ramp up and what es and our engineering definition of what funding to diversify their operations? MONTERREY DIVISION able to offer the aerospace industry? is your strategy to overcome them? they needed. For HEMAQ this opened up It is nothing new that in Mexico we have a Today our core competency is in sheet metal The challenge for Noranco will be in keep- our eyes to the nature and requirements tremendous challenge related with financ- fabrication of structural components for fu- ing up with the addition of more work while of the aerospace industry. Following this, ing. Unfortunately for more than 30 years, selage. We also have additional manufactur- maintaining good control. There is no short- we upgraded our ISO certification to the financing for the industry in general has ing cells for the machining of solid plate, age of business for us, but we will have to AS9100, not because we were required to, been extremely limited, and this is a miss- primarily aluminum, for components that ensure that we have human resources avail- but rather to let our staff better understand ing link that definitely affects supply chain are primarily for fuselage and engine ap- able in both quantity and quality to take it Could you introduce HEMAQ with a the aerospace quality systems that govern development. However, one needs to also plications. This plant is the most vertically on. My main focus therefore will be on brief history of the company? the sector. Today, aerospace represents understand that getting involved in the in- Can you introduce Noranco with a bit of integrated of all Noranco’s facilities with training and specific skill development for HEMAQ was founded in July of 1988 35% of our business. dustry requires a profound shift in mental- background on the corporation? nearly all secondary processes carried out our existing personnel. Our goals will be to as a machine-tool distributor in Mexico. ity due to its different culture. Patience and Noranco is a manufacturing group of eight in-house. The corporation has the structural develop those that are efficient and oriented Just a few months into our operations, we What where the main challenges in di- commitment are key, and too often SMEs centers of excellence for manufacturing in maturity and experience for this site to be towards to the future needs of our custom- upgraded the company to a high-tech dis- versifying into the aerospace industry? switch to an easier, more accessible indus- Canada, the United States and Mexico. The fully vertically integrated without distract- ers. Another challenge for us will be keep- tributor with only world-class computer HEMAQ ensures that its staff is flexible try as this offers a faster return on invest- company began in Canada and through ac- ing from our core competency of fabrication ing pace with global advances in technology numerical control (CNC) machines with and highly competent in all sectors and as ment. What we are seeing more, though, quisitions and organically has grown rap- and machining. and stay ahead of the curve in terms of new high-precision capabilities. Our unique such does not have a team only dedicated is prime contractors attracting their own idly over the past 10 years. The company is manufacturing processes. advantage over the rest of the market was to aerospace. The country’s rich history in suppliers to Mexico. a prime supplier of components and struc- How important is your membership to that HEMAQ was able to offer local tech- metal mechanic processes gave us the ad- tural parts for landing gear, airframes, and the Monterey Aerocluster and what role Do you have a final message? nical and engineering support, plus show- vantage of understanding what was needed Do you have a final message? engines. The company has been involved is this platform playing for Noranco? Today Mexico is achieving things within rooms with live machines for our custom- from this sector. The challenge came with I would reiterate that competitiveness, per- in the aerospace industry for nearly two de- Noranco only recently became a member of the aerospace industry that would have been ers. This has made a substantial difference the jump to using more exotic materials formance, commitment, productivity, and cades and is oriented to metal mechanic pro- the Monterrey Aerocluster but our member- unthinkable 20 years ago. The country has in the country. A big step for HEMAQ in such as titanium and special alloys, which reliability are the keys to today’s manu- cesses. ship is a crucial tool for important, pre-com- a huge amount of advantages to offer the 1994, was the implementation of our pro- had not previously been processed in Mex- facturing. Mexico has proven that it can petitive collaboration between local aero- international aerospace community particu- gram named HEMAQ Atencion Plus, of- ico. We maintain that the key factors in be a destination where investments see all What were the initial opportunities iden- space companies. The key benefit is shared larly with regards to available talent and it fering full 24/7/365 support for emergency the aerospace today throughout the world of them together. The Mexican aerospace tified in Mexico? training resources. Training can be costly is important that the world be made aware purposes. This program was upgraded in are quality, compliance, productivity and industry is growing, and we gladly invite Mexico continues to be an attractive desti- and challenging should it be carried out by of this. Mexico is now number five in the May 2010 to HEMAQ Atencion Plus Ga- competitiveness. As long as you can guar- global companies to grow together with nation for investment. Globally the coun- individual companies and made specific to world for aerospace exports. This rank could rantizada, a guarantee to our customers antee, these you will be successful. us, to expand in Mexico by taking advan- try is becoming more associated with the their needs. As a cluster we can pool knowl- easily rise, but the country must now focus that should they require any technical sup- tage of the growth of the local aerospace aerospace industry. Noranco expanded to edge and work towards establishing commu- more on being more sophisticated and more port, our teams would reach them on site Why are people outside of Mexico some- industrial market. • Mexico in 2014 through the acquisition of nal training programs. Another benefit is be- involved with higher-value processes such within 24 hours or the service would be what unaware of Mexico’s capabilities? an existing facility. The reason that Monter- ing able to put forward a unified voice to the as systems integration and design. •

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tify within the aerospace industry as to operations and in 2009 we also acquired tial amount. Companies are willing to pay a diversify into the sector? Delphi’s exhaust business. After the acqui- hefty amount to reduce the mass of an air- The aerospace industry in Mexico has sitions, Katcon had a presence in every con- craft as over a period of 25 operating years, grown significantly and will continue to tinent in the world. mass has a substantial effect on fuel effi- grow in the years to come. There are inter- Currently we have a limited scope of Today we have completely bought out Del- ciency and carbon dioxide emissions. Kat- national players that are moving into Mex- supplies, but the objective is to offer phi and have technical centers with design- con is aiming to make premium composites ico, which is making the aerospace sector the full basket to our customers. This ers in the United States, Luxemburg, Shang- for the aerospace industry. hai, and Monterrey. The company has sales We will mainly use carbon fiber as to manu- a very attractive industry for business. Vi- will include from conventional wires akable’s mission is to play a more active revenue of $400 million and has grown from facture reinforced composite parts. Carbon up to high-end products. To achieve role within the aerospace sector even if it servicing one country to 11 countries. Kat- fiber is very expensive, but the mechanical this objective, Viakable would have to is through acquisitions. con has the capabilities to design, engineer properties of the material are excellent. We obtain additional capacity. One way to and validate products for entire exhaust sys- are also open to use any other kind of com- What is the scope of the products that grow quickly is to acquire a tems. In 2014, we made the decision to par- posites. Katcon does not want to compete Viakable is offering to the aerospace in- company operating within the ticipate in lightweight materials and have with companies operating in the plastic in- dustry? aerospace industry. designing and manufacturing capabilities jection molding industry, as it is a mature Currently we have a limited scope of sup- mainly in composite plastics. industry. The injection molding that we do plies, but the objective is to offer the full Katcon aims to make structural composite is only done as an accessory to a different basket to our customers. This will include parts for vehicles and nonstructural com- composite part. We have also been investi- Patricio from conventional wires up to high-end Fernando J. posite parts for aircraft. We are currently gating other types of fiber such as hybrid -fi products. To achieve this objective, Vi- focusing on nonstructural composites for bers, glass fibers and natural fibers. The new Murga akable would have to obtain additional Turner the aerospace industry, as obtaining certi- trend is to not only use expensive premium capacity. One way to grow quickly is to fication for structural parts will take a sig- materials like carbon fiber, but to optimize acquire a company operating within the nificant amount of time. Katcon has HP- other materials and properties by combining aerospace industry. RTM equipment, which will be the main them with carbon fiber. In this way, one can young engineers seeks work in this region. technology that we use for manufacturing create a ratio between the lightweight of the Director of Technology & Development Executive Vice President, With regards to the manufacturing What capabilities does Monterrey possess lightweight products. With regards to the part and the costs. Strategic Planning VIAKABLE plant in Monterrey, is there a part of the in order to grow the aerospace industry? aerospace industry, Katcon can add value to KATCON facility that will facilitate growth within Monterrey has excellent technical univer- composites components within the interior What are the challenges working with the aerospace industry? sities that can supply outstanding engi- of aircrafts. composite materials compared to tradi- Growth within the facility will depend on neers to the industries. The aerospace in- tional materials? what acquisition is made. If the partner dustry in the region is not yet as strong as The transition from the automotive in- The cycle times of composites are slow that we might acquire is big enough and in other parts of Mexico. For the aerospace dustry to aerospace can be quite complex. compared to traditional materials. The cur- has better structures, we might move our industry to grow faster, we need to have How important is it to have guidance ing of composite materials can take a sig- existing capacity to their facilities. Viak- a major original equipment manufacturer when diversifying into the aerospace sec- nificant amount of time. Another challenge Can you give a brief background of Via- able does have the capabilities in the Mon- (OEM) in the region, so as to attract sup- tor? is to introduce composite materials to engi- kon and the development of Viakable? terrey plant to serve the domestic aero- pliers to diversify into the aerospace sec- Can you provide a brief introduction and We have found that being an automotive neers that have been working with steel for Viakon is a product brand name of Viak- space market. tor. The government should try to attract history of Katcon? supplier helps substantially with being a a significant amount of years. The engineers able, and the company will celebrate its The certifications processes are difficult. OEMs to the region to promote investors’ Katcon started operating in 1993 as a manu- supplier in other industries. With regards to have to be convinced to work with new ma- 60th anniversary in 2016. Viakable is part We had to overcome substantial obstacles interest in the aerospace industry. facturer of catalytic converters. The reason the interiors of aircrafts, we have experience terials. of the Xignux Group which is a consor- as to obtain the preliminary certifications. for establishing Katcon was that Delphi, from the recreational vehicle and car indus- The infinite combinations of materials and tium consisting of four divisions: cables, Military audits are a requirement for cer- What goals would Viakable hope to who was then still part of General Motors, try. In the aerospace sector, one has to com- orientation of fibers is almost impossible to transformers, infrastructure, and food. Our tification. achieve within the aerospace industry had a demand for catalytic converters. Our ply with additional safety requirements, but model as it will be very expensive and diffi- manufacturing plant in Monterrey is also over the next five years? parent company was already supplying alu- the technologies are readily available. cult and may not be very reliable. Modeling the mother plant of Xignux. There is significant potential in Monter- Viakable defines success as when one minum parts for General Motors, and thus Katcon is very open-minded. Currently, it is of combinations is something that is holding Viakable started very small with only the rey in terms of academia. Is the sourc- reaches a point where one can interact Katcon went into a partnership with Delphi very beneficial to get technical advice from the industry back from growing faster. Tools manufacturing of conventional-wiring ing of human capital for Viakable and with the designers in the industries. Thus, as to supply them with converters in Mex- companies that are specialized in compos- for manufacturing composite components systems, and we have grown significantly with regards to the aerospace industry success is exceeding the point of being ico. ites. We are open to joint ventures, but we are also very expensive. over the years. Until 1985, we had a stra- something that is readily available in just a supplier of commodities. Our goal Katcon started as a very small company are also content with the advice that we are tegic partnership with Canada Wire & Ca- Monterrey? is to reach the point of success and start with only four operators and two young en- getting from players within the aerospace What goals does Katcon hope to achieve ble. We are present in most of the product Monterrey is known for its metal mechani- interacting with designers within the next gineers. For the first eight years, the com- industry. within the aerospace industry? families in the group with the aerospace cal works, as it is in this area where it has few years. pany grew quickly, expanded its operations, Katcon would like to supply six different product family being the latest addition. the highest skills and strengths. The re- and moved into a new facility. Katcon also What are the general materials that Kat- orders of composite parts to the aerospace Even though we are still a small player in gion has a strong supply of good techni- Do you have a final message for the in- started to export its products to Colombia con uses for the aerospace industry and industry in the next five years. We want to the aerospace industry, our strategic mis- cal workers. The automotive industry in ternational aerospace community? and Brazil and by 2005 it reached the goal how do these materials differ from the manufacture products that are lightweight, sion is to grow and become one of the ma- Monterrey is mature and, as the aerospace Investors should join the industry, but also of shipping five million catalytic convert- automotive industry? high-quality, and still cost-competitive. The jor players. industry requires similar workforce skills, be patient. If one wants to have an active ers from its plant in Mexico. In 2007, we A kilogram of mass makes no difference in company wants to build on its existing track it is readily available. Monterrey is a city role in the aerospace industry, one has to acquired the Delphi manufacturing plant the automotive industry whereas in the aero- record and continue growing in both the au- What opportunities did Viakable iden- of immigrants and a significant amount of already have a sustained business. • in North America as to further expand our space sector a kilogram of mass is a substan- tomotive and aerospace industries. •

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The aerospace industry is very specific re- Eventhough the new market was a challeng What is Tecmaq’s strategy for growth in Jaime garding certifications. How do you source Carlos ,Tecmaq also saw the opportunities and de- the aerospace industry and what is the your human resources so the people that cided to get involved. It took several years typical profile of the customers you will Perez work here are trained and qualified? Ramírez to comply with the industry requirements. be targeting? Our engineers and operators were trained to After accreditation, we attained Honeywell Tecmaq will be targeting tier one and tier work with these materials when GE support- as our first aerospace client and we are still two suppliers. We are not looking for op- ed us to develop the business. We have de- providing services to them today. portunities with OEMs in the nearly future. veloped a Training System to certify our op- Tecmaq also had opportunities in other sec- Our goal is to keep the interest in the devel- Director erators and engineering personnel internally. tors like oil and gas. We saw significant opment of the local aerospace supply chain JAITER growth in the oil and gas industry and 65% by continuosly satisfy our current client´s In terms of Monterrey and Nuevo Leon, of our 2014 sale shares were in this segment. needs. there are great opportunities for compa- In the present year, there has been a de- The other goal is to develop the human re- nies to get into aerospace. Can you elabo- crease in the oil and gas sector and the com- source further in terms of engineering and Please provide a background of Jaiter? rate on the advantages that Monterrey has Director pany started a diversification program. We quality personnel. There are currently sub- Jaiter was established 35 years ago. It began for aerospace companies? TECNOLOGÍA PROCESOS Y look for new opportunities and one of them stantial efforts from the academic institu- manufacturing parts for machinery made here In Monterrey there is a lot of human talent. MAQUINADOS, S.A. DE C.V. was with Fokker Aerostructures. The proj- tions to align academics with the aerospace in Monterrey. Since 1998, we have been pro- Monterrey it's a constantly growing indus- (TECMAQ) ect is still in the development stage, but it industry. Although all this efforts to develop ducing aircraft turbine parts for GE Aircraft. trial area and located nearby USA which is will certainly be an important project to Tec- the manpower there is still a lot to do. They helped us to develop the products and an important advantage for export opportu- maq. In terms of the aerospace sector, the put together our quality control procedures. nities. expectation is to grow from 3% to 20% sale What is the profile of companies that the From there we obtained our AS9000 in 2004 shares in the next five years. Growth in the government should be targeting to attract and have maintained it since. We specialize What kind of support do you receive from aerospace sector has not boomed as there is to the region? in rings for aircraft turbines. We have made being part of the aerospace cluster and no OEMs or Tier 1 companies in the region. Based on the history of the State, the gov- other smaller components for fuselages, but how important is it for the industry to Can you give a brief introduction and ernment should focus on attracting aero- rings remain our specialization. We are cur- have one? history of Tecmaq and elaborate on any Tecmaq has AS 9100 certification. Are space companies to the region. With this, rently manufacturing parts for Frisa. Promotion and training. It is of a big impor- recent milestones? there programs in place in Monterrey to more local manufacturing companies tance to count on an organism that helps to Tecmaq has been operating for 15 years and help companies achieve these certifica- should be involved in the aerospace indus- Do you source materials locally or do you promote the industry overseas. we are a company dedicated to do CNC ma- tions? try. In terms of developing the local compa- receive them from your client directly? chining. The company focusses on provid- It is not very difficult to attain AS 9100 if nies, programs should be in place to target Now that we are working with Frisa, they Is there a need to promote Monterrey’s ing production parts to our clients to satisfy you have an ISO certification. The govern- the requirements of the quality systems of produce the alloys and send them to us. We aerospace products to other states and their market supply chain. With turning and ment has substantial incentive programs this market . Through the aerospace cluster then manufacture the parts using these mate- countries? milling capabilities we serve several mar- that help companies to achieve them. With we need to be able to show the Tier 1, Tier rials and send them back to them. Currently, this need is covered by the FEMIA kets including oil and gas, power transmis- regards to Tecmaq, we participated together 2 and OEM companies what infrastructure and the Monterrey AeroCluster. sion, fluids, transportation and aerospace. with an educational institution to achieve and possibilities the region has to offer. To Please describe your facilities? Tecmaq has grown substantially in the 15 our AS 9100 certification. grow the aerospace industry, we need to We currently have 130 employees in total and You mentioned you are also involved in the years that we have been operating as we In the aerospace industry, customer approv- become a value added region showing a over 60 CNC operational machines for turn- design process for other industries. Do you started with only four machines. Currently als are also required and every client is dif- strong integration between academics and ing, milling and laser cut. As for territory, we see Jaiter expanding its design capabili- we have 80 machines and 200 employees. ferent. One of the toughest challenges in the industry. have 5,000 square meters for growth oppor- ties to grow its business in the aerospace Pricing, quality and performance are very region is that the supply chain is not estab- tunities. During the last 2 years we have been industry? important if you want a business to be suc- lished completely. Raw materials and some What are some of the key factors in Tec- investing in new 5-axis functionality machin- As of now, we have engineers that have cessful. If these aspects are covered, the op- specialized processes are still being import- maq’s growth strategy and what goals ery, 2 small size machines for more special- the expertise needed to design parts. In the portunities to grow the business are there. ed from the US. For these specialized pro- would you like to achieve within the next ized parts, and one large machine for larger aerospace industry it is difficult to design Our mission is to form a strategic partner- cesses, they need to have a NADCAP certi- five years? and specialized parts. We are also implement- new parts but we do have people qualified ship with our customers. The opportunities fication as well as the customer’s approval. Tecmaq has the equipment, manpower, ing an administrative software RPS to keep enough to do so. A few clients have asked us in the market are still very high as the local As these processes are mostly sourced out- quality and skills to machine the aluminum track on each part and have strengthened our to design some improved parts and they have supply chain is still developing. side of the region, it takes away some of the structural components. The most challeng- quality control systems and design capacity. liked the outcomes. economic price advantages of machining in ing goal is to convince special process sup- Recently we have received visits from many When did Tecmaq identify opportunities a low cost country. pliers to come to the region and get involved aerospace companies looking for a small As a final message for our readers, what do in the aerospace sector and how impor- Can you elaborate on the parts and the in the local supply base. parts manufacturer and they have asked us to you have to say about Mexico, Monterrey tant is this sector to the company’s opera- materials the company works with for the have the CATIA software to be able to offer and its aerospace industry? tions? aerospace industry? Do you have a final message for our inter- quotes on the products they are looking for. Mexico is a country of big opportunities for About 7 years ago Honeywell identified Tecmaq defines our strategy in the machin- national readership? We can perform turning, milling and CMM the foreign industry, where you can find com- México as a low cost region with a poten- ing of aluminum structured parts. We de- Aerospace is a tough industry, but the sup- inspection processes for aerospace. panies highly qualified on the fabrication of tial supply chain to be develop for the aero- cided to focus on this type of parts due to plier customer relations are very depend- aerospace parts like Jaiter. We are competi- space market. As there were ample oppor- its cost structure having a higher machining able and stable. Diversification is very im- What percentage of your business is aero- tive, offer good pricing and count on interna- tunities, the state government joined the content with more cost savings to our cli- portant and the aerospace industry can offer space? tional quality standards. We know how to do developing program and several companies ents. We do parts in the range of 20 by 20 that. There are a many great opportunities About 20%. things well. • were invited to participate in the program. inches and below. as there is a huge need for a supplier base. •

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Can you provide an introduction to Ma- rate one. The first aspect that we addressed Customers can login to the system and keep track of their orders. Blanca quinados Industriales Mitras? was production. We began implementing a Diego Mexico has a negative reputation concerning security, and certain Our company is a family-owned busi- new system by which we could measure industries have difficulties with this issue. We offer a GPS system Lopez ness that began operating under its current all aspects of our production line. Follow- Martinez that puts a device inside the container or pallet as to keep track name, Maquinados Industriales Mitras, ing this, according to customer’s require- of products and to make sure that they are following the planned S.A. de C.V. (Mimsa), in 2002. We offer ments, we had to put in various security route. Through this new technology, we are able to measure not machining services to select companies measures to back up all project informa- only location, but also temperature for perishable goods. The real from a range of industries including oil tion. time GPS system will send alerts to the customers’ e-mails and Administrative Manager and gas, steel and automotive. Our in- Commercial Director the route chronology can be accessed online. There are different MAQUINADOS INDUSTRIALES volvement in the aerospace industry began What challenges did Mimsa encounter DYNAMIC LOGISTICS systems for different industries, depending on the demand. If you MITRAS, S.A. DE C.V. (MIMSA) three years ago when we were approached in transitioning into aerospace? are in an industry that has a high security risk, the GPS also has a by a multinational corporation that de- Most parts that we are manufacturing for light sensor that will send an alert if the container or box is opened signs, manufactures and sells airplanes the aerospace industry are small compo- during the transit. All this will happen in real time allowing our with a wish to develop our company as nents of relative simplicity and as such are customers to have a quick response time to any inconvenience. one of their suppliers after seeing the qual- well within our range of capabilities. Our ity of components we had been producing experience in other industries such as oil Besides security, what logistical challenges coincide with op- for fixtures used by aerospace company and gas and power generation has meant erating in Mexico, particularly in the aerospace industry? SNECMA. that in terms of machining our transition In some towns the police and authorities make logistical servic- into aerospace has been straightforward. Can you give a brief introduction and history of Dynamic Lo- es difficult due to road closures. As clusters are developing and Can you provide details of the transition The challenge has been on the adminis- gistics? creating more opportunities, local suppliers are starting to offer process that Mimsa underwent? tration side. We have had to begin using Dynamic Logistics has been in business for 15 years and our core their services in these clusters. When companies enter Mexico, It has certainly been a challenging transi- highly technical and specialized software business is providing international transportation services to vari- they consider if the local supply chain will be able to meet their tion. The first requirement to be consid- such as Catia. ous industries. We are involved in complex transportation servic- demands. Location is therefore very important. The local govern- ered as a supplier was for us to implement es that require experience and knowledge of the dynamics and ments are very involved in trying to bring in foreign investments the AS9100 certification. We had to make To what extent do you have control over particularities that different industries require. into their states, but for exports location is the most important. substantial changes to the organization of your own supply chain? Like most of the freight forwarding companies, Dynamic Logis- Monterrey it’s a great location as it is very close to the US border our business and shift our mentality from Mimsa is fully responsible for managing tics is a non-asset business. We offer an integral solution, bringing and has quick access to main ports. It has a a very well developed a family-owned company to a more corpo- all aspects of its supply chain. We have one all of our service platforms to the different customers in differ- service industry because of all the industrial activity that has been raw materials supplier that is pre-approved ent industries. In order to be competitive, the company invests growing for many years. • from which we buy the metals. For second in building our platforms with all the structure that each industry processes we are currently sending our needs. Dynamic Logistics develops working plans for our cus- products to companies in Chihuahua. For tomers and we try to stay innovative offering tailored solutions future projects we will be using Monter- for each company and sector. rey-based Noranco with a view to bring- ing our supply chain closer to home. Fol- With regards to the tailored platform Dynamic Logistics has lowing secondary processes it is Mimsa’s for the aerospace industry, what are the typical demands of responsibility to carry out all final inspec- this industry? tions prior to sending the products to our In order to meet the demands of Mexico’s Aerospace Industry client. Dynamic Logistics became a member of the Aerospace Logis- tic Group (ALG). All members are independent companies with How important is Mimsa’s membership many years’ experience in the aerospace industry – joined togeth- in the Monterrey Aerocluster and what er to provide seamless global coverage. Dynamic Logistics un- are some of the issues you are tackling derstands the industries requirements, particularly by air and sea, collectively? and our customers worldwide are able to enjoy a team with the Being a member has certainly been use- knowledge witch is rarely by our competitors. ful in securing government funding and Lead times always depend on where the product is going. We investment. One issue that the cluster is have a well-developed air charter service for our customers in currently collaborating to resolve is the order to meet urgent demands. Also our ground services include lack of a shared training center. The indus- team driver options for quick and effective deliveries to the U.S. try in Monterrey is not as established as in and Canada. It is important to know the industry as well as the Baja California or Querétaro and does not customer to be able to form a synergy that allows us to work out have technical schools, but it is unrealis- the best possible solution for the customer. tic for companies to send their staff out of state for training, as the costs are too high. Can you elaborate on the software and technology that Dy- We are working together to create train- namic Logistics use to keep up with industry demands? ing programs in Monterrey to better pre- Dynamic Logistics uses a real time freight forwarding system that pare the available talent for the aerospace is called Soft Cargo. This is a system where we input all our infor- industry. • mation and where we offer a service platform for our customers.

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laboratory was built with a view to serving from the Monterrey Aerocluster. However, that was established in 1979. We special- What NDT methods are most commonly this industry. Today we are able to provide the availability of these funds is not well ize in the field of non-destructive testing used in the aerospace industry? a wide range of metrology services to the publicized enough to the other companies (NDT), which, when the company began, In the aerospace industry in Mexico the aerospace sector. wanting to expand into aerospace. was used mainly in the oil industry for the most common methods of NDT are liquid The third company is Metalinspec Labo- inspection of pipelines. After the global penetrant, x-ray, magnetic particle, eddy

RL ratories. This materials test laboratory be- What is the scope of services that Meta- trade agreement was signed with the Unit- current, and ultra sonic. The key differentia- came NADCAP-accredited with the sup- linspec Laboratories offers to the aero- ed States, manufacturing began to arrive to tor between the aerospace industry and the port of ITESM, Tecnológico de Monterrey. space industry in Mexico? Mexico, and we began to grow the company other sectors we work in is conditions under From its inception it took three years to FY: Typically our aerospace customers re- with customers in the automotive industry. which the processes must be carried. The gain all necessary accreditation to work in quire mechanical tests at room temperature Since the aerospace boom in the mid 2000s, aerospace industry demands a much more the aerospace industry. Today Metalinspec or high temperature. These include, ten- AEISA identified this sector as an important controlled environment and process as well Laboratories has aerospace customer ap- sion, compression, hardness, stress rup- driver for growth. Today the aerospace in- as tight inspection criteria. FY provals from GE, Honeywell and MTU. ture, and creep tests. Metalinspec Labora- dustry accounts for 15% of our overall sales tories has a Commercial representation in with higher concentrations from our offices Is NDT generally carried out in-house What is the typical profile of customer Mexico for Westmoreland Material Test & in Chihuahua and Querétaro. or will companies seek to outsource this that Grupo Forem companies are work- Research in the United States to offer any process? Ramiro Lozano ing with in the aerospace industry? service that we are unable to provide in What is AEISA’s business model and Generally companies that have high-volume FY: Our current customers in the aerospace Mexico. what value-added services can it offer in NDT requirements will carry out this pro- & Fausto Yépiz industry include GE, MTU, Frisa, Honey- RL: Metalinspec also has an accredited Edgar addition to being a distributor of prod- cess in-house. It is one of the most sensitive well and MD Helicopters. For these clients machine shop, which is used to take apart ucts? special processes needed for the aerospace we are providing primarily mechanical the larger components that we receive. Escalante AEISA is a distributor of NDT equipment. industry and as such requires a great deal of testing services at room and high tempera- This is important, as we have found that We have the advantage of representing training and certification. We have encoun- tures. that dimensions of a sample affect the reli- González brands that are world leaders in this field tered companies that simply do not have a RL: We currently have testing laborato- ability of a test result. We are currently in such as Magnaflux, Rohmann and Yxlon. high enough need of NDT to warrant hav- ries in Monterrey and in Querétaro. We the process of migrating the NADCAP ac- These companies have extensive experience ing internalized equipment and as such will RL: CEO, Quality Control Division General Manager recently made a large investment into a fa- creditation to the machine shop operating in the aerospace industry, which AEISA is seek third-party inspectors. FY: Deputy Director General, Metrolab ASESORÍA Y EQUIPOS DE able to leverage to better serve our custom- GRUPO FOREM cility in Mexico City, which we will have in Querétaro. operational early 2016. With this addition INSPECCIÓN, S.A. DE C.V. ers from this sector. Our core business is to What is AEISA’s growth strategy over the we will be strategically located to serve a How does Grupo Forem fulfill its human (AEISA) sell the machines, consumables, and sup- next five years? rapidly expanding aerospace market. The resources (HR) needs and what chal- plies used in NDT. AEISA also conducts NDT is growing in technology day by day challenge we now face is that prime con- lenges do you encounter in sourcing hu- all installation, maintenance and calibration so our efforts will be focused on incorpo- tractors are still generally using suppliers man capital for the testing industry? of our products. For the other sectors AEI- rating more product lines and fielding new in either the United States or Europe. Our RL: We have a strong HR department and Can you introduce Asesoría y Equipos SA has been providing training courses to techniques. We are finalizing our ISO17025, goal now is to persuade companies of the the maximum time they have to fill a po- de Inspección with a brief history of the our customers on NDT processes for many which is the standard needed for the calibra- available local capabilities. Breaking into sition is two months and in general this company? years. We are beginning to extend this of- tion of equipment. We are planning to have Can you provide some background on the aerospace supply chain is not a quick is plenty of time. A problem we are see- Asesoría y equipos de inspección, S.A. de fering to our customers in the aerospace in- a fifth office to be able to better attend to our Grupo Forem and an overview of how process, but we are committed and as a ing in Querétaro is that as a result of the C.V. (AEISA) is a family-owned company dustry. customers and increase our customer base. • the company is divided? Mexican company we appreciate a com- aerospace boom there are far more students RL: Grupo Forem is divided into two busi- petitive landscape. graduating with aeronautics degrees and ness segments. One is dedicated to the fewer that are focused on metrology, cali- metal mechanic industry and the other is Can you talk about the challenges you bration and testing. involved in quality-control equipment, faced and the support you received in metrology and the testing of materials. gaining NADCAP accreditation? Do you have a final message? The latter business segment is divided FY: Obtaining NADCAP accreditation was RL: Our next major milestone will be to into three companies. Metalinspec began certainly a challenge, but we saw it more begin operating from our testing labora- in 1989 as a small operation representing as an opportunity to optimize our existing tory in Mexico City, and we would like to manufacturers of quality-control equip- quality system rather than simply adjust increase the number of tests that we have ment in Mexico. As this business grew our model to meet the requirements. Gain- NADCAP-accredited. Though we are fo- we created Metrolab and began offering ing this certification has involved a process cused mainly on growing in Mexico, Gru- metrology and maintenance services. For of investing in new equipment, integrating po Forem has begun a process of exploring this we built the first-ever underground newer technologies and developing a high- the U.S. market. This is with a view to both metrology laboratory in Mexico. Being un- er level of human capital. gaining a foothold in the market, but also to derground we are able to have much more RL: One challenge in particular was to un- spreading awareness of the available capa- control over temperature, humidity and vi- derstand that shifting from the automotive bilities in Mexico. The international aero- bration, the proper environmental condi- industry to the aerospace industry required space community needs to give Mexico tion for high accuracy calibration. Grupo a fundamentally different mindset. With the opportunity to perform in these higher- Forem anticipated very early on the arrival regards to the support we had for this pro- value-added services and a chance to prove of an aerospace boom to Mexico and this cess, Grupo Forem was granted some funds that it has what is needed. •

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to better serve an existing customer of ours, dustry. Human resources are one of the most three years ago. We are also involved in ma- Frisa. This laboratory was built according to important requirements and in this area the terials. Through modeling, we can understand Frisa’s requirements and offers mechanical university can be a partner to the industry. how materials will behave in different condi- testing, metallurgical testing, and non-de- tions. structive testing (NDT). What courses does Tecnológico de Monter- Most of the projects are done within the uni-

FR JR: An agreement was made between Frisa rey offer that are specifically designed for versity facilities. Through the cluster we can and Exova to establish a laboratory in the aerospace industry? propose our ideas and from there we will Mexico. In doing this Frisa would no lon- The approach that we have had for a long partner with companies. We will either fund ger have to send its testing services to the time is to offer the pure basics such as in- the project ourselves or collaborate with state United States. For Exova, it was a chance to dustrial engineering, mechanical engineering agencies. The research that is being done is gain a foothold in Mexico’s rapidly expand- and mechatronic engineering. Tecnológico de mainly for the current needs of the Mexican ing aerospace industry and develop the test- Monterrey does not have a particular special aerospace market and at this stage we are not JR ing capabilities of the country. A long-term degree for the aerospace industry. Where the yet exporting our technologies. agreement was signed with Frisa to guaran- university has given more depth to its human tee enough business to make the investment resources training is in the areas of research With regards to research projects, is there worthwhile, and Exova has since been suc- dissertations and internships at companies in collaboration between the various academ- Fernando Ramos cessful in expanding its base of customers in the industry. The aim is to develop transfer- ic institutions in Mexico or is it a competi- Mexico. rable skills as to give the students more free- tive field? & Juan de Dios Dr. Manuel dom within the industry. Companies will then There is a growing incentive from Mexican What are some of Exova’s key competitive add on if there are more particular skills and institutions, which support science and tech- Rodriguez advantages over other third party inspec- Zertuche knowledge required within their businesses. nology, to collaborate on research projects. tion companies in Mexico? With regards to the main challenges in Mex- FR: Frisa’s most competitive advantage is To what extent does the industry try to in- ico, universities will collaboratively think of that it can leverage its worldwide presence fluence the curriculum and how does the ideas and collectively search for solutions. to benefit its customers here in Mexico. The university keep up to date with current in- There may not be as much collaboration FR: General Manager, Aerospace Division Dean of Science, Exova brand name is well known and one dustry needs? within the aerospace industry, as it is still an JR: Strategic Business Development Technology and Engineering that our customers can trust. We ensure that It has been an instrumental initiative to part- emerging market. Manager TECNOLÓGICO DE there is good synergy between all Exova’s ner with the various industry clusters. The MEXICO AEROSPACE MONTERREY AMERICAS, EXOVA facilities so that a customer in Mexico re- cluster initiates collaboration between the To what extent is the university trying to quiring a test that we are not able to carry out industry, government, and academic institu- encourage entrepreneurship that would in here can take advantage of our vast network tions. Within the cluster, particular industry turn foster Mexican innovation within the and have the testing performed at another needs are identified. The cluster has been an aerospace industry? Exova facility. This is also true for other instrumental link as to understand the indus- One of the major characteristics that the uni- Exova facilities; they can take advantage of try needs, requirements and expectations. versity encourages in students is entrepre- our services in Mexico. neurship, and we see ourselves as a world Can you introduce Exova with a brief Tecnológico de Monterrey is one of the How important is internationalization for leader in entrepreneurial values. We want to overview of the company’s history in What are the main services Exova is cur- largest and most established universities in the training of students? provide our students with a way to channel Mexico? rently able to provide for the aerospace Mexico. How are the industry needs incor- Internationalization is a very important aspect their energy into new businesses, innovations FR: Exova is an international provider of industry in Mexico? porated into the syllabus? with regards to training. We are the strongest and entrepreneurial initiatives that is of value testing, calibration and advisory servic- JR: Mechanical testing is our main testing The university aims to help improve emerg- university In terms of students that graduate to society. The university’s aim is to have a es with offices in 32 countries around the capability. For this, we can provide tensile ing industries as to support the competitive- with international experience. The amount of significant and positive impact on the econo- world. Exova has two facilities in Mexico, testing at either room temperature or elevat- ness of the country. We work closely with in- students who graduate with international ex- my of Mexico. one in Monterrey and another in Toluca, ed temperature. We also provide hardness dustry initiatives as to incorporate their needs perience is currently at 55%, and the aim is to both are part of the company’s Americas di- testing, stress rupture and impact testing. and requirements into the syllabus. The uni- have 75% by the end of 2017, and 100% by What developments within the aerospace vision, which has its headquarters in Canada. FR: NDT is the second largest part of our versity’s school of engineering has been sup- 2020. Internationalization gives our students industry do you foresee for the next five Exova has been in Mexico since 2007 and business, as the demand has grown substan- porting initiatives in emerging sectors such as the values of global vision and understanding years? over the past eight years we have focused on tially in recent years. We provide a range of aerospace, biotechnology and nanotechnolo- of global markets and trends. Tecnológico de Monterrey would like to be a investing in more equipment, more personal, NDT methods and next year we hope to add gy. The leverage that we can provide is train- player in the higher-value aspect of the indus- and newer technologies. We have quadru- ultra sound testing to this portfolio. ing in the specific needs of the industry and Can you elaborate on the university’s real- try. There is a demand for higher knowledge pled in size. JR: We also provide state-of-the-art metal- research-based innovations. time projects directed particularly at the and that is where we want to play a role. The JR: This facility in Monterrey began as an lurgical testing services. The importance of the aerospace industry aerospace industry? university has an open mind and is willing to aerospace laboratory service center for Frisa, within the university grew as the industry can There is major excitement within the area provide for any needs of the industry. and we are now expanding to serve more Do you have a final message for our GBR give Mexico a competitive advantage. As the of intelligent-systems projects. With these, aerospace companies. readers? industry evolves, more design needs are ap- we try to incorporate sensors to differ- Do you have a final message? FR-Exova’s success in Mexico on the back pearing, and there is greater need for specif- ent platforms and get intelligent responses Mexico has a significant amount of opportu- What was behind the decision for Exova of local talent is proof that this country is ic materials and greater demand for specific from robotics. Making a contribution to the nities in the aerospace industry. The country to expand to Mexico? ready to undertake more technical, higher- intelligence systems. Our mission is to best aerospace industry in terms of intelligence- has a strong human-capital platform to offer, FR: The expansion was undertaken in order value-added processes. • support the high-value requirements of the in- response systems was not thought possible and there is a great manufacturing culture. •

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important topic we research is material corro- sion and failure probabilities. There is an ad- RG Rogelio Garza & vanced manufacturing laboratory that serves other labs by producing molds and prototypes. Dr. Patricia del C. There are design and simulation rooms where are various clients ask us to conduct simula- Zambrano tions on the parts and materials they are ask- ing us to develop. We monitor what software and technologies companies are using so that we can adapt to use these technologies. RG: Rector PZ: General Director, Center for Research and PZ Are there any projects that you are par- Innovation in Aerospace Engineering (CIIIA) THE AUTONOMOUS UNIVERSITY ticularly excited about that are playing an OF NUEVO LEÓN (UANL) important role in global aerospace? PZ: Our biggest project at the moment is with Airbus, and it has motivated the institution to expand its facilities and capabilities. This project is intended to establish a training fa- cility in aircraft maintenance that is up to the Could you provide a brief introduction to master’s candidates are specialized in three standards of those in Miami, Toulouse, China CIIIA and an overview of the circumstanc- main areas: flight dynamics, aeronautic struc- and other parts of the world. Today, Airbus es that led to its establishment? tures, and materials. Finally, CIIIA began to has five of these centers and this would be PZ: The CIIIA project and the idea of devel- offer a Doctoral degree in 2014. We are work- their sixth. This center will benefit from the oping aeronautics here in Nuevo León began ing to integrate the doctoral program with research of many of our students. This cen- in 2006. That year, the Autonomous Univer- CONACYT to offer the same scholarships as front of new technologies that surface every ter is targeted at training people who maintain sity of Nuevo León (UANL) noticed how for- the Master’s degree. day. The UANL is currently in the process of the electric systems, people who repair the eign investment was growing in our country’s certifying its laboratories that specialize in aircraft. In aeronautics, being able to repair a aeronautics sector and that in that same year Are these degrees unique in Mexico and aeronautical engineering with the goal of of- part made of composite materials requires a only one institution of higher education of- how do you tailor them to meet current fering quality services to companies that sup- high degree of specialization and knowledge. fered an aeronautics-engineering program. In needs in the aerospace industry? ply the aeronautical industry. This is on top of This center will bring a lot of benefits to Nue- that moment, UANL set itself goals to estab- PZ: As a university with a long history, we the courses on AS9100 and NADCAP, which vo León and Mexico. lish a strong and solid base to offer programs have a strong link to industry in all our fields. are requirements in this sector. This will incite in this discipline. In August 2007, UANL be- Especially since Nuevo León is a state with a greater link between university-industry- Does the international aerospace commu- gan offering the Aeronautic Engineering pro- strong industrial vocation. Though the aero- government that will develop local suppliers nity fully recognize the engineering capa- gram and began to look into the idea of hav- space industry in Mexico is relatively new, as well as increase the industrial infrastruc- bilities of Mexico? ing a research center in the field that would our existing links to the automotive, mechan- ture and aeronautical services. PZ: Not in today’s world because we are still develop highly specialized human capital. ic, and metallurgy industries made it easy for in an infant stage in the eyes of others. In my That is how UANL began to design what us to build connections with the aeronautical Could you talk about what’s inside the CII- experience, hosting visitors from around the would become the Center for Research and industry. We have students that have worked IA building and where the funds are being world, they cannot believe what they see here Innovation in Aerospace Engineering (CII- with MD Helicopters, Frisa’s aerospace di- directed to develop your equipment? because they have a different vision of Mex- IA). Towards the end of 2009, the cornerstone vision, and we are beginning to work with RG: We have 12 very specialized laborato- ico. We are not perceived as what we are ca- of the center was laid using both federal funds Noranco. Our students also participate in ex- ries and in each we can see cases in which pable of and we do not project our capabilities from the Secretary of Public Education and changes with other research centers in Mexi- projects are being developed. For example, in abroad. People are surprised by the work that the National Council of Science and Technol- co and abroad. In 2014 we began to collabo- composite materials, we are seeing projects we are doing here. Several years ago, Mexico ogy (CONACYT), and university resources. rate with Airbus to maintain a training facility from companies where we are developing consolidated itself as an automotive hub, and The center was founded in March 2012 boast- with simulators to train airline personnel. parts in carbon fiber and teaching companies we hope it will consolidate as an aeronautic ing 20 full-time faculty members with doctor- about the development and design process of hub as well. al degrees in fields related to aeronautics. CII- How important is academic participation making these parts. Given the integration of RG: We have an enviable geographic loca- IA offers bachelor’s degrees, where we train in the development of Mexican suppliers industry within Nuevo León, a lot of automo- tion and innovative people. Part of our role aeronautical engineers with a strong tendency to the aerospace industry and what role is tive companies are reaching out to us looking is to help people pursue their ideas. Our stu- towards design, structural design and materi- UANL playing to approach the ‘inverted at how to take advantage of composite ma- dents, on average, come from low-to-middle- als like nickel and titanium based super alloys pyramid’ model that prevails in the Mexi- terials. Not only are we teaching the process income families and do not have the resourc- and composite materials. The university also can aerospace sector? but also the quality control tests they need to es to pursue their ideas. The support that we created a master’s program in aeronautical RG: It is very important for the country, and go through to ensure they can withstand their can give them is very important for them to engineering in August 2012. It is a full-time especially for the State of Nuevo Leon, that intended use. We have an avionics laboratory achieve their potential. At any moment, Mex- program, where students receive scholarships academia participate in the development of where the researchers are working in the de- ico is going to boom, and when it fully real- from CONACYT and must reach a certain Mexican suppliers to the aerospace industry. velopment of the electronics and algorithms izes its potential, the world will see what it level of qualifications to be accepted. The We are obliged to keep ourselves on the fore- associated with controlling drones. Another can offer. •

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tion company that operates and maintains helicopters out of the Mexico, and Monterrey Jet Center was the THE AEROSPACE Aeropuerto del Norte. only company that could offer them those However some feel that the MROs and manufacturers in Monter- services, as we were Federal Aviation Ad- We expect the market to shift towards AFTERMARKET rey have little in common, particularly with regards to a local- ministration (FAA)-authorized and had the Embraer type aircrafts and that will ized supply chain. “The advantage of synergy between MROs and required certifications. be very beneficial for the company. Monterrey’s MROs manufacturers in Mexico does not affect us as a company” said A few years later, when Embraer started to We are a one-stop shop, which Roberto Marcos, vice president of Monterrey Jet Center. promote their Legacy line in Mexico, they differentiates the company in the MROs tend to require used parts, which can only be sourced from needed a repair center in the country. The competitive market. the U.S. While the benefits of shared training offered by the Aero- only company with the knowledge, experi- cluster do exist, many MROs found at the aeropuerto del Norte ence and certification to deliver the required Monterrey is one of the busiest cities in Latin America in terms are too small for this to have any real benefit. services was Monterrey Jet Center. We then of private aviation and the city is home to the country’s only pri- Certification is just as important for maintenance companies as signed the contract and become the ASC for vate airport, the Aeropuerto del Norte. The airport is populated it is for manufacturers in the aerospace industry. DGAC is the Embraer. with a number of operators and maintenance shops making for a Mexican standard that most companies operate to, though it is Is there a collaborative effort between competitive MRO industry. Not to be likened to the Delta, Aero not internationally recognized and as such does not allow busi- When did Monterrey Jet Center obtain maintenance, repair and overhaul México TechOps operation in Querétaro, these are smaller more nesses to work on aircraft coming from outside of Mexico. For a FAA certification and what were some of (MRO) comapnies and manufacturers to boutique maintenance shops for private aircraft many of which company wanting to attract foreign aircraft they must first receive the challenges that you encountered in develop a local supply chain supporting also serve as forward operation bases (FBOs). FAA approval. This is an expensive process and not an important the process? the aerospace industry? The integration of the MRO companies into the Monterrey Aero- step to take for a lot of the companies here that are satisfied with Roberto To get a certification as a FAA-authorized The advantage of a synergy between MROs cluster in 2013 was an important move for the cluster and it hopes the level of business the domestic aviation offers. Monterrey Jet service center we had to go through a series and manufacturers in Mexico does not af- that the two branches of Monterrey’s aerospace sector can col- Center, on the other hand, deemed this approval necessary in or- Marcos of quality-control systems. We also had to fect us as a company. In our business, we laborate on issues such as shared training resources. “The two der to grow. “Although being a certified service provider is costly, prove that there was a need for a FAA re- mainly buy used parts for aircrafts. Used facets share technical resources and that seems to be working. it is still in the best interest for repair stations to become FAA cer- pair facility in the country. With regards to parts are not available in Mexico and thus They have the same needs and demands and work on similar proj- tified as it is an investment into the success of the company,” said EASA approvals, Monterrey Jet Center de- we source our parts from the United States ects, but they have different points to where they are working to,” Marcos. “Certification broadens the company’s customer profile cided, for the time being that EASA certifi- and Europe. There are efforts to localize the Vice President said the cluster’s managing director Pauline Medori. and we have many customers from the US.” cation is too expensive to get as there is not supply chain for maintenance facilities, but As with manufacturing, MROs want to eliminate the steep costs Though it mat not be seen as a key driver for the growth of Nuevo MONTERREY JET a huge European market here in Mexico. the number of suppliers that have parts for associated with internal training. “Training is sometimes a dif- León’s aerospace sector the MRO market is essential for support- CENTER S.A. DE C.V. FAA certification requires that the company jets is significantly few. The local supply ficulty as often one has only two or three technicians to train but ing Mexico’s rapidly increasing domestic and international busi- follow a manual that includes all aspects of chain is currently only able to supply to the you have to pay the complete training for seven technicians,” said ness aviation. Further integration between maintenance shops and the business like warehousing, presenta- small and inexpensive needs of the MRO Eduardo Alvarez, operations manager for AviHel, a small avia- manufacturers will only bring mutual benefits to both parties. • tion, tools, qualified personnel, and mostly industry. procedures. It is sometimes a challenge to Image: Monterrey Jet Center S.A. de C.V. comply with the rules and regulations of the There is an established and friendly eco- manual. Certification can be challenging. system around the Del Norte Airport. We are inspected annually by FAA inspec- What are your thoughts on the evolution Can you give a brief introduction and tors as to confirm that we are still compli- of the airport and the services that are history of Monterrey Jet Centre? ant with all the standards. Although being a going to be available? Monterrey Jet Center has been in the aero- certified service provider is costly, it is still There is competitiveness between the shops space business for about 36 years. The first in the best interest for repair stations to be- in the airport, as government regulations facility was situated at the international come FAA-certified as it is an investment on aircrafts are currently very challenging airport, but as the company grew we es- in the success of the company. Certifica- especially with regards to imports. As for tablished an expanded facility where we tion broadens the company’s customer pro- the challenges, there are currently not many are currently situated. The company of- file and we have many customers from the aircraft coming into Mexico, which slows fers repair and maintenance services to the United States. We do not have many Euro- down the market. The amount of shops at aerospace industry. We mainly do repairs pean customers and therefore are currently the airport is growing, but the demand is not on Hawker, Lear, Cessna Citation, and not looking to get EASA-certified. very high, and thus there is a high sense of KingAir aircraft. The company was also re- competitiveness. cently granted a contract as an authorized What is the company’s strategy for service center (ASC) for Embraer. sourcing the technical talent that is re- Where would you like to see Monterrey quired in the business? Jet Center in five years? Can you elaborate on the process of how In terms of training, the company has an Monterrey Jet Center is a well-known name Monterrey Jet Center became an ASC agreement with the Autonomous University and with our experience and knowledge we for Embraer? of Nuevo Leon (UANL). Students do prac- foresee a good future. We expect the market Our indirect relationship with Embraer tical internships at Monterrey Jet Center to shift towards Embraer type aircrafts and started in 2000 when American Airlines and and once they have finished their academic that will be very beneficial for the company. Continental Airlines started flying Embraer studies, we have a choice to employ them. We are a one-stop shop, which differenti- aircraft to Mexico. Both airlines needed a We thus source technical talent directly ates the company in the competitive mar- company to support their maintenance in from academic institutions. ket. •

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What is the company’s strategy for iden- Accreditation is authorized by the DGAC on fixed-wing aircraft. The company has tifying the types of aircrafts that you will agency. This is currently the quality system grown considerably over the past decades work with? that the company is complying with and in and today is an ASF for Cirrus and the Phe- In the private sector, AviHel grows and 2016 we will complete phase two and three nom family of Embraer aircraft. Transpaís gains customers through recommendations. of the program. also has capabilities in Piper and Falcon There is much lower risk in Mexico The company’s growth strategy is to offer Although SMS is not internationally rec- airplanes for which we are approved by the than other cost-competitive efficient and quality services at low cost. ognized, it is similar to a program of the DGAC. The company operates in Monter- destinations, and we are becoming AviHel can handle both helicopters and Federal Aviation Administration (FAA). We rey and Toluca. well versed in the aerospace industry. fixed-wing aircraft. Our market is currently hope that as soon as we complete the SMS, 60% fixed-wing aircraft and 40% helicop- it will be easier to get accredited by interna- How do ASESA and Transpaís Aero ters. Helicopters are, however, more profit- tional norms and standards. We will start to maintain a competitive advantage over able and thus we are working to expand our work on the AS9100 in 2016, and this will the other operators and MROs at Mon- capabilities in terms of turbine engines. We help us to get accredited as an FAA repair terrey’s Aeropuerto del Norte? are also looking into working with larger station on the future. ASESA and Transpaís Aero have the aircraft. youngest fleet at the Aeropuerto del Norte How long has AviHel been a part of the and as an MRO we are ASF for both Cir- Can you elaborate on the facility and Monterrey aerocluster and what has the rus and the Phenom family of Embraer. An equipment that you have here? company’s role been in the industry? important competitive advantage that we ing to develop more local suppliers for the Eduardo AviHel has the VXP and RAD’s to analyze AviHel has been part of the cluster for about Humberto have is the proved experience of our main- aerospace industry. This is something that vibrations on helicopters, on avionics we a year and a half. In terms of the aviation tenance team. All of our staff have at least is important for the MRO business as well Alvarez have some Aeroflex equipment’s like IFR industry and maintenance, repair and over- Lobo 15 years working with us on the technical as for manufacturing industry. In the fu- 4000 and IFR 6000 some equipment from haul (MROs) companies, the cluster is still side and have deep knowledge about all the ture, we will see more integrated processes Barfiel and other panels to test headphones, relatively new and is learning to help one aircraft that we maintain. carried out in Mexico with the use of local HIS, etc. another and learn from each other. Train- suppliers. This can be achieved through a Technicians are equipped with all the tools ing is sometimes difficult, as often one has What is ASESA and Transpaís’ strat- collaborative effort of industry and govern- that are needed to do maintenance and re- only two or three technicians but must pay egy for sourcing their human capital re- Operations Manager Director General ment organizations. quirements? AVIHEL pairs on aircrafts and helicopters. The com- for training seven technicians. The cluster GRUPO LOMEX pany also has two, two-ton runway systems, is working on implementing training pro- Both Transpaís Aero and ASESA send a lot What is the importance of the aerospace hoist-to-handle engines, transmissions and grams that train individuals from various of their personnel to train directly with the industry for Nuevo León? complete aircrafts, we also have special companies. manufacturer and well-recognized train- For many years, Monterrey has had more tools for Bell 206, 407, 412, Airbus Heli- ing centers. Also, we make local training potential development in the aerospace in- copter AS350 and EC120, King Air Series, Is the specialization of Monterrey’s de- programs. Finding the right staff is not al- dustry than any other region in Mexico, but jacks, work tables, hydraulic press, tug, velopment in the aerospace industry ways easy, but we have found that many it still has potential for substantial growth. Can you give a brief introduction to Avi- abrasive equipment, borescope, electric maintenance-orientated? specialized personnel in Mexico aspire to This can be seen by its success in other in- Hel with a history of the company? power plant, and others. Monterrey specializes in two branches: work for us. This means that we have little dustries such as the automotive. Monterrey AviHel was established in 1994 as a small manufacturing and MROs. Manufactur- Can you provide some background on trouble with retention. Training is of huge was recently successful in attracting KIA to aviation company. The company has grown Is the staff split between helicopters and ing runs pretty well and has been growing the aviation segment of Grupo Lomex? importance for us and a large part of our the region, and can have similar success in significantly over the years and currently we aircraft or can every staff member work quickly in the last eight years. Monterrey Within Grupo Lomex we have two compa- resources are spent on this. ASESA con- the aerospace industry. serve the whole Northern part of Mexico. on both? has a huge market for MROs because it is nies that are involved in aviation, ASESA tinues to run a dedicated training program We started with only one small aircraft and We have very experienced staff, who are an industrial city, so we have a lot of na- and Transpaís Aero. ASESA was founded for which we recruit directly from schools. Do you have a final message for our grew significantly in terms of the number split by areas and equipment. One team of tional and international companies, both in 1977 by my father and I took over as They work for a year and a half with us as GBR readers? and types of aircrafts that we are handling. technicians works only on fixed wing, the small and large, which brings traffic to our CEO in 1999. ASESA is the largest heli- an apprentice until they are ready to handle I would encourage the international com- AviHel has huge expansion plans for 2016. second on rotating wing, and the third team airport. Monterrey also has a great location copter operator in the country and is divid- more advanced work. munity to first turn their eyes to Mexico in on avionics. The people who do the over- to bring customers from other regions of ed between operations and maintenance, Mexico produces a lot off engineers, but general. What has happened in this country What is the scope of services and capa- haul on helicopter components belong to Mexico. repair and overhaul (MRO) services. As what is often lacking is human capital on in the past ten years is remarkable, and for- bilities the company is able to offer to the rotating-wing team. However, some techni- an MRO, ASESA offers the most variety the technical level. However, recently eign companies can benefit from our stable industry? cians can work on both fixed and rotating What goals would AviHel like to achieve of maintenance capabilities with regards there has been more in the way of techni- economy and business environment. There AviHel has customers in both the private wing. in the next five years? to models of aircraft. As an authorized ser- cal schools offering this type of formation. is much lower risk in Mexico than other sector and government and works closely AviHel has to increase capabilities as a vice facility (ASF) for Pratt and Whitney Universities such as UANL and govern- cost-competitive destinations, and we are with insurance companies in terms of air What are the quality requirements of this MRO facility, achieve SMS and AS9100. and Bell Helicopter we are able to work ment programs like CONALEP are devel- becoming well versed in the aerospace in- claims. The company has the capabilities type of business and what are the quality These are our priorities because with qual- on all Bell Models. We are also able to oping schools to meet these specific needs dustry. For Nuevo León and Monterrey in to do repair works especially for insurance systems that govern AviHel’s operations? ity, safety and efficiency create the base provide services to the AW109, AW139 particular I would draw their attention to companies. AviHel’s expertise is focused Mexico has a safety management system from which to grow in the right way. We and AW119 models of Augusta Westland. How important is the development of a the great education system that we have in on maintenance and annual inspections. (SMS) that focuses on ensuring quality. The also have to increase our fleet. We only ASESA offers MRO services out of facili- local supply chain for the MRO business place and the high number of engineers and We also do overhaul for some components system has four facets and currently we are have two aircraft. Finally, we are working ties in Ciudad del Carmen, Mexico City in Mexico? technicians this state is producing. Monter- on the Bell Helicopter 206. The expansion working on the second phase. AviHel was towards providing the best possible envi- and Monterrey. Currently ASESA and Transpaís Aero rey is an industrial Mecca and its rich ex- plans for 2016 is with regards to compo- the first MRO facility to a pass and attain ronment and worksite for our employees. • Transpaís Aero was established before source all their supplies from the United perience offers a wealth of opportunities to nents for the Bell Helicopter 412. accreditation for phase one of the program. ASESA in the early 1970s and is focused States. ProMéxico and FEMIA are push- companies looking to invest. •

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QUERÉTARO: AN EMERGING AEROSPACE POWERHOUSE

“Querétaro has every component needed to nurture the growth of local suppliers supporting the aerospace industry. Once this is achieved Querétaro will very much be seen as one of the most competitive aerospace destinations throughout the world.”

- Marco Antonio del Prete Tercero, Secretary of Economic Development for Querétaro Image: Bombardier Mexico Image: Bombardier EDITORIAL Global Business Reports Global Business Reports EDITORIAL

INTRODUCING Image: Airbus Helicopters’ Site, Querétaro THE AEROSPACE INDUSTRY IN QUERÉTARO

The State of Querétaro is flush with com- the arrival of Bombardier in 2006. This petitive advantages that are helping to globally recognized original equipment grow its aerospace cluster. Its proximity to manufacturer (OEM) uses its Querétaro Mexico City and major ports serving both facility to manufacture aero-structures for Europe and Asia makes it favorable to for- its family of business jets and for its har- eign investors. The state also has solid in- nesses and electrical components. Bom- Globally, every two seconds there frastructure of roads and industrial parks. bardier has been labeled an anchor com- is an aircraft flying with GE engines The modern, well-designed airport is an- pany and part of its strategy has been to serviced by Mexican talent. other attractive asset for aerospace compa- attract other companies in the aerospace nies. The region is also one of the safest in industry to set up manufacturing capacity ics as aerospace. The challenge facing able to combine training with serving the Mexico, which fosters an environment that in Mexico. Some of Bombardier’s sup- RYMSA is to find certified secondary pro- industry. Jorge de Velasco Rodriguez, the - Vladimiro de la Mora, is conducive for business. Querétaro has a pliers that have come to Mexico after the cesses such as heat treatment and coating, school’s president, said: “Every invest- population of 2 million people, but has the company’s arrival are A.E. Petsche, PCC President, and it is looking to consolidate this aspect ment is focused on being as transversal as potential to attract 45 million from a radius Aerostructures, and Aernnova. General Electric Infrastructure of its supply chain. Aeroprocess TTT, part possible, with shared resources among stu- of 350 kilometers. Finally, Querétaro has Beyond attracting foreign suppliers, Bom- Querétaro (GEIQ) of the Spanish Grupo TTT, has identified dents researchers and companies.” The only challenge that lies ahead for a rich background in automotive manufac- bardier has created a team dedicated to these growing needs in Querétaro and re- Developing the available talent in the potential companies wanting to break turing, which has laid the framework for developing a local supply base, whereas cently began offering heat-treatment ser- state is fundamental to the progression of into the global supply chain is a matter the aerospace industry to flourish. Airbus Helicopters, which established a vices. the supply chain. It provides the essential of financing. Through promoting these strengths manufacturing presence in Querétaro in Meanwhile, companies throughout the skills needed to operate computer numeri- abroad, the Secretariat for Industrial De- 2013, has adopted a vertically integrated supply chain are still sourcing raw mate- cal control machinery for welding and for velopment of Querétaro has attracted con- business model. Airbus Helicopters claims rials from overseas as Querétaro has no other processes that are currently lacking siderable foreign investment to the state that what is lacking is a consolidated net- certified distributors. Alex Slouka, CEO in Querétaro. It also creates an environ- - Marco Antonio del Prete Tercero, that has been crucial in the development work of tier-two and tier-three companies of Omni-X MX, a tooling company that ment in which the state can evolve the Secretary, of its aerospace sector. This remains a key supporting the OEMs and tier-one compa- chOps is now in the process of reaching provides bending services, said: “The es- role of design in its aerospace sector by Secretariat for Industrial Development, strategy of the government. nies. Another player, SAFRAN Group, has out to local suppliers of metals, but first tablishment of a distribution center for training engineers. GEIQ, GE’s engineer- State of Querétaro As the strongest emerging aerospace clus- two main companies in Querétaro, Snecma needs to ensure that these companies have raw materials in the area would mean that ing center in Querétaro, is leading this de- ter in Mexico, the focus in Querétaro has and Messiers-Bugatti-Dowty, which focus the necessary certification. Omni- X would be able to offer a much velopment with over two thirds of its staff now turned to developing a local supplier on engines and landing gear respectively. For local companies wanting to enter the more value-added product to our custom- dedicated to aviation, and is adopting a HR base. Secretary Marco Antonio del Prete Daniel Parfait, country delegate for SAF- aerospace sector, obtaining certification is ers.” strategy of hiring from local schools. Cur- Tercero said: “The only challenge that lies RAN Group, also cites the benefits of a challenge. For a small and medium-sized The inauguration of the Aeronautical Uni- rently, GEIQ has 100 engineers working ahead for potential companies wanting to Querétaro’s “strong, skilled labor force.” enterprise (SME) to receive the AS9100 versity of Querétaro (UNAQ) in 2007 on GEnx—the next-generation advanced break into the global supply chain is a mat- The company is now dedicated to grow- certification, it not only needs funding, but means that companies in the area have ac- dual rotor, axial flow, high-bypass turbo- ter of financing.” ing its base of suppliers and has developed also guidance. cess to talent that has been trained solely fan jet engine used in Boeing 787 and 747- its strategy of attracting foreign invest- ProMéxico has pinpointed Querétaro’s a tool called the Franco-Mexican strategic Due to Querétaro’s history in the automo- for the purpose of serving the aerospace 8 aircraft. President Vladimiro de la Mora ment, but the common focus of industry, specializations as being in parts for fuse- counsel, which is directing funds to the de- tive industry, most SMEs are geared to- sector. Initially established to support boasted: “Globally, every two seconds academia and government is to address lage, landing gear, cables, harnesses, pre- velopment of a local supply chain. wards a low-mix, high-volume business. Bombardier’s harness assembly, today the there is an aircraft flying with GE engines the evident gaps in the supply chain. The cision machining and maintenance, repair The joint venture between AeroMéxico Expanding to encompass the high-mix, university provides bachelor’s and mas- serviced by Mexican talent.” Mexican Federation of Aerospace Industry and overhaul (MRO), which are being at- and Delta Airlines led to the establishment low-volume of the aerospace industry is ter’s degrees, Ph.D.s, and the technical The aerospace cluster of Querétaro is an (FEMIA), the industry’s trade association, tended to by the state’s 40-plus companies. of TechOps, the largest MRO company in somewhat unrealistic. RYMSA, a family- training required for personnel working on efficient networking platform that fosters views Querétaro as pivotal in growing the Though ITP has been operating MRO ser- Latin America. TechOps moved to Queré- owned Mexican company that offers ma- aerospace factory floors. Beyond supply- collaborative efforts to address the needs country’s reputation as a major interna- vices in Querétaro since the 1980s, Queré- taro in 2013, but has identified a gap in the chining services, has its core competency ing human capital, the university also takes and directions of the state’s aerospace in- tional player not just in manufacturing, but taro’s aerospace industry boom began with local supply chain in plating services. Te- in oil and gas, which faces similar dynam- onboard projects from the industry and is dustry. The local government is continuing also in innovation and design. •

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an opportunity to move to a low cost man- the core competencies related to the aero- We started our activities by providing main- grate to a facility in Mexico to reduce their ufacturing location. Following a bidding space sector and also on internationalizing tenance, support, and training for our cus- production costs. In that case, the support process, Querétaro was selected as the site its academic institutes. Through partner- tomers in the region. Two years ago, seek- on our part will simply be in terms of dis- of choice and the industry has since grown ships with France and Canada, our univer- ing more opportunities to further develop cussing the volume of business that we will from there. Today, the state’s aerospace sities are ensuring that students are receiv- our global supply chain, we decided to fur- require from them. The second scenario sector boasts 80 active members including ing the correct training and formation in all ther extend our footprint in the country by is to develop a purely local company, but two major original equipment manufactur- levels of the aerospace HR chain. It is the investing in the aeronautical manufacturing this case is more complex. The support will ers; five maintenance, repair and overhaul development of Querétaro’s education sys- industry in Querétaro. We inaugurated our come through the Aerospace Cluster, as (MRO) companies; 12 design and engi- tem that has nurtured Querétaro’s reputa- plant in Querétaro in February 2013, and it we can offer advice and intelligence. This neering centers; and a range of general ser- tion as a national leader in innovation and was an honor to have President Peña Nieto applies, for example, in any adjustment of vice companies that complete the supply research and development. The Aeronau- as one of our guests. the potential supplier’s business model and chain. Valued at over $1.2 billion and with tic University of Querétaro (UNAQ) has Our company has a fleet of 500 helicopters how to gain the certifications. The govern- more than 8,000 workers, Querétaro ranks seen more than 5,000 technical graduates in the region and is currently the only heli- ment is also supportive in this regard and first in aerospace FDI nationwide. since 2006. It is through the alignment of copter manufacturer with maintenance and through organizations such as CONACYT industry, academia, and government that industrial sites in Mexico, where we employ and INADEM, companies are now able to What are some of the main qualities the aerospace industry in Querétaro will more than 300 people, 140 of which work secure the funding needed to break into the that Querétaro offers to the global aero- truly thrive. in Querétaro. Our plan is to increase the aerospace supply chain. space community? production capacity of the Querétaro site Marco Antonio Being in the center of the country, Queréta- Two years ago, the Aerospace Cluster Julien in order to pass from the current 120,000 What has been Airbus Helicopters’ strat- ro’s geographical location lends it a highly of Querétaro was made official. How hours of work per year to 800,000 hours egy for the transferal of technology and del Prete Tercero efficient logistics framework. It is favored important has this been for the state Fabreguette per year by 2020. We expect to achieve this knowledge? for its proximity to Mexico City and its government's efforts in supporting the by transferring more products from Airbus Airbus Helicopter has a long and tested ex- equidistance from ports serving Europe aerospace industry? Helicopters. perience of technology transfer. The con- and Asia. Though having a population of With the rapid growth of the aerospace cept that Airbus Helicopters uses is ‘train 2 million, the state has the possibility to industry, its consolidation became impor- Despite being vertically integrated, does the trainer’. At the beginning of a new Director of Industrial Development Director attract 45 million people from a radius of tant for the state government so as to be Airbus Helicopters intend to adopt a transfer, we invite a group of operators, en- SECRETARIAT OF 350 kilometers. The business environment able to quickly and efficiently meet the de- AIRBUS HELICOPTERS’ SITE, more horizontal business model? gineers and quality controllers to our head- SUSTAINABLE DEVELOPMENT is important for the development of any mands of the companies operating within QUERÉTARO We have recently begun the process of quarters in Europe for a training period at (SEDESU), STATE OF industry and being one of the most peace- it. Querétaro Aeroclúster has been hugely sourcing local suppliers. The current situa- the end of which they return to the facil- QUERÉTARO ful regions in the country, Querétaro offers successful in achieving this and now is tion in Querétaro is that there are a number ity here in Querétaro and begin training the great security and a high quality of life. helping to promote and strengthen the of original equipment manufacturers and rest of the staff. state’s aerospace industry and is increas- tier-one companies, but what is lacking is What types of aerospace companies op- ing its competitiveness both nationally and a consolidated network of tier-two and tier Will Mexico become more involved in the erate in Querétaro? internationally. three suppliers. We are working together design aspect of the aerospace industry? Can you provide background on the Today, Querétaro’s main areas of expertise What role is the Querétaro facility play- through the Aerocluster of Querétaro to The evolution of Querétaro’s aerospace State of Querétaro and how its aero- are in the machining of complex compo- What is the most significant goal for ing for Airbus Helicopters’ global opera- resolve this by sharing our knowledge and industry has a clear model that is being space cluster has evolved? nents, aero structures, components for Querétaro to guarantee the continued tions? experience with potential suppliers and in- defined by the large corporations like Air- The history of Querétaro’s industrializa- braking systems, engine MRO, and com- growth of its aerospace industry? This plant is dedicated to the production of tegrating small and medium-sized enter- bus Helicopters and Bombardier that came tion starts in the 1960s with textile, food, ponents for engines. Companies in the Investment attraction depends on many metallic aerostructures for Airbus Group. prises into the cluster. It is very important here in order to manufacture products at and beverage companies establishing a state also operate in landing gear MRO, factors, but what is crucial for us is to be- Currently, we are a vertically integrated for the companies here and for the growth best-cost. The first step is technology and presence here with a view to serving the components for landing gears, heat and come more prolific through our own local business and practically all of our produc- of Querétaro’s aerospace industry that we knowledge transfer. After a few years, we markets of Mexico City. Over the years surface treatments, harnesses, and flight/ companies, a number of which have devel- tion is carried out in-house. The first work work together to build this base of suppli- embark on the second step, which is to es- the state saw the arrival of companies motion control actuation. Querétaro has oped some great opportunities for them- package that we transferred was actually ers. For that, we also need strong leadership tablish an engineering department to sup- from metals, mechanics, home appli- the resources and capacity to branch into selves within the aerospace sector. It is of the emergency exit doors for the fixed wing from both federal and state levels to accom- port production. After a while, the local ances, and a range of other industries, but a range of other products and processes these success stories that the international A320, but future work packages will in- pany this industrial maturity. Despite start- facility starts to understand the product up until the 1990s these were all focused when the demand arises. aerospace community must become more clude a mix of fixed wings and helicopter ing with an integrated business model, Air- better than the mother company, which no on the internal markets. It was in 1994, aware to truly strengthen our local supply parts to be integrated in Airbus Helicopters’ bus Helicopters facility in Querétaro plans longer manufactures it. When that moment when Mexico signed the North American What are the state’s main strategies and chain and reduce imports. The only chal- world assembly lines. to change this to a horizontal one, but, in arrives, the local facility shifts from work- Free Trade Agreement (NAFTA) with the areas of focus in ensuring the growth lenge that lies ahead for potential compa- order to achieve this, we will have to get bench to build to print, at which point we United States and Canada, that the biggest and success of its aerospace industry? nies wanting to break into the global sup- Can you provide more details on how a sustainable network of suppliers in place. are able to incorporate our own improve- change came about and projects began to It is important to note that a key part of ply chain is a matter of financing. Outside Airbus Helicopters has grown since it es- ments and modifications in the manufactur- be geared towards international markets. It the development of the aerospace indus- of financing, Querétaro has every compo- tablished itself in Mexico in 2013? What efforts are being made to create ing process. was then that Querétaro became an attrac- try was FDI, and it continues to be today. nent needed to nurture the growth of local As a reminder, Airbus Helicopters has been this strong base of lower level suppliers The next and ultimate step, on which I be- tive destination for foreign direct invest- Without the arrival of Bombardier and the suppliers that support the aerospace indus- present in Mexico for nearly 35 years. for the aerospace industry? lieve Mexico is on the brink, is design. GE ment (FDI). SAFRAN group Querétaro, the growth of try. Once this is achieved, Querétaro will Since then, our activities in the country With regards to establishing tier-two and is already incorporating this into their op- Querétaro’s aerospace industry began nine this sector would not nearly have been as very much be seen as one of the most com- have grown steadily, and so has our com- tier-three suppliers, there are two scenarios. erations as it is designing and certifying years ago when the Mexican government substantial as it has been. A major driver petitive aerospace destinations throughout mitment with our customers and with the The first is to have a pre-existing supplier parts and system for use in aircraft from its learned that Bombardier was looking for now is education. The state is focusing on the world. • country. from either Europe or North America mi- Querétaro design center. •

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How far away do you think we are from seeing whole aircraft Alfredo assembled here and what challenges lie ahead in achieving this goal? Nolasco We do not have plans for assembling a complete aircraft We do not have plans for assembling a complete aircraft in Mexi- in Mexico at this moment. However, any other of the co at this moment. However, any other of the international manu- international manufacturers present in Mexico will find the facturers present in Mexico will find the appropriate conditions to appropriate conditions to achieve this goal if it is part of achieve this goal if it is part of their business plans. The Mexican Chief Country Representative their business plans. The Mexican aerospace industry has aerospace industry has shown a continuous and increasing growth BOMBARDIER MEXICO shown a continuous and increasing growth throughout the throughout the last years, which has strengthen all the compo- last years, which has strengthen all the components of the nents of the national aerospace supply chain. We think the in- dustry needs to keep working as a team with the authorities and national aerospace supply chain. the research institutions in order to keep supporting its long-term development into the future. Having been operational in Mexico since 1992, what is the strategic importance of the country today to your aerospace What are the next major milestones that Bombardier hopes to operations? achieve within its Mexico operations over the next five years? Mexico has a strategic importance for Bombardier’s global man- On the next years, we will keep focused on strengthening our op- ufacturing operations. At present, Querétaro conducts design, tures, as well as electrical harnesses. Main products manufactured such as the inauguration of the UNAQ in 2009, with the support erations in the country within the new Aerostructures and Engi- manufacturing and assembly activities of large metallic and com- at the facility are: of the Federal and State Governments, as well as the ITESM CE- neering Services business segment, which will enable us to fur- posite structures, as well as electrical harnesses for Bombardier the aft fuselage of the Bombardier Global family of business jets DIA, in 2012. We currently have collaboration agreements with ther market our expertise on this field to the aerospace industry, business and commercial aircraft. Likewise, in the context of the (5000, 6000, 7000, and 8000), the UNAQ and the Universidad Tecnológica de San Juan del Río, thus generating new revenues. We will also continue collaborat- creation of Bombardier Aerostructures and Engineering Services, electrical harnesses and electrical components for Bombardier to develop aerospace training programs. We also have collabora- ing with the authorities, academic institutions, and other compa- Querétaro’s site will support the new division business objectives, business and commercial aircraft, and the forward fuselage and tion agreements that include working internships, thesis projects, nies of the sector, to strengthen the Mexican aerospace industry. by enabling the Company to further market its expertise in these doors for the CSeries family of aircraft. recruitment programs and job opportunities with the Universidad At Bombardier, we are proud of our partnership with the Mexican fields of the aerospace industry, thus generating new revenues. del Valle de México, the Instituto Politécnico Nacional, the In- government in developing an industry that is attracting invest- Bombardier is proud of its partnership with the Mexican gov- What are some of the key strengths that Querétaro offers as stituto Tecnológico de Querétaro, the Universidad Autónoma de ments, highly qualified labor, technology and new expertise in ernment in developing an industry that is attracting investments, Bombardier’s base of its aerospace operations in México? Querétaro, and the ITESM. many business sectors in addition to aerospace. • highly qualified labor, technology, and new expertise in many Before we made our decision to set operations in Querétaro, we business sectors in addition to aerospace. evaluated several different locations around the world and we de- termined Mexico to be the best option because it is a country with Can you talk about the facilities you have in Mexico, the com- very solid macroeconomic indicators for the future. It is part of ponents you manufacture and how they are fitting into your the NAFTA agreement, and is within a similar time zone as our global supply chain? headquarters in Canada. It has a solid infrastructure, such as the We have four facilities in Querétaro in which we conduct design, dedicated aerospace park in Querétaro, a good road infrastruc- manufacture and assembly large metallic and composite struc- ture; Querétaro’s international airport; and a vast industrial expe- rience through the automotive industry. It also has an important pool of skilled hu- man resources, and a strong commitment from the federal and state governments to develop an aerospace industry.

Can you talk about the work that you have done with universities and aca- demic institutes to foster the local talent pool? To date, Bombardier Aerostructures and Engineering Services Mexico has nearly 1,500 full-time employees. In Bombar- dier we know that an industry as complex as the aerospace industry requires a solid team of workers, trained in the different areas of the processes we use to manufac- ture our products. We think education is one of the three pil- lars that support the development of the aerospace industry, and for this reason we recognize the efforts done in the matter,

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Snecma will be inaugurated in the coming industry more involved with design and in- At that time the company was called ITR towards the direction that the aerospace months but is already in operation. novation. The country realized that they had and the main business was focussed on re- industry is taking? Two other subsidiaries also have an impor- achieved a certain level of maturity and that pairs of JDND engines. In 2000, ITR also Yes, ITP plays an active role, and I can give tant presence in Mexico; those being Turbo- for them to move up in the value chain they started with manufacturing and design- some examples here: our general manager meca, which provides customer support ser- had to launch into innovation. ing operations. The company started to is on the counsel of UNAQ as an industry vices to 250 helicopter engines in Mexico In Chihuahua, one of our subsidiary, Saf- manufacture small complex parts and, in representative. Also, an important univer- and Morpho, world leader in biometric sys- ran Engineering Services, employs about 2006/2007, we moved to a different set of sity that established in Querétaro came to tems and smart cards who has established 250 engineers focused on design and in- components manufactured for turbine en- ITP to ask for recommendations for its pro- contracts with the government, airports novation. This is a clear representation of gines. ITR also had an engineering division grams and we responded accordingly. ITP banks and telecommunication companies. SAFRAN’s commitment to this important in which all of the operations were dedicat- has also funded employees in a master’s There is also a lot of interest for SAGEM. transition. ed to turbine engines. In 2010, ITP acquired degree with a prestigious university linking all of the company shares, and the company international professors. We also play an ac- Can you give more details regarding the What are doing to support your human was then named ITP Engineering and Man- tive role as members of the Aerocluster De role and importance that each of these capital needs in Querétaro? ufacturing. Querétaro and participate with the research operations has for SAFRAN’s global op- In partnership with Airbus Helicopters and ITP has three different businesses within the centers in different projects. Whenever it is erations? the government we have created this Fran- organization in Mexico. The first one is ded- possible, ITP provides feedback to the uni- In terms of employment, SAFRAN Group in co-Mexican campus in Querétaro, and we icated to tubes and the manufacturing of end versities that send interns to our teams as to Mexico is third after France and the United would like to develop a replica campus in fittings for the tubes. The second is an engi- tailor their programs to meet the demands of Daniel States. Therefore, Mexico represents a fun- Chihuahua but with the inclusion of broader José Carlos neering and development facility. The third the markets. damental platform notably in aerospace re- scope of training. business under the ITP umbrella is involved Parfait garding our proximity to the United States. We also have had success with our work- Garcia in MRO activities on turbines and all their There are significant gaps in the local study exchange program in partnership with components, which includes the repair and supply chain in Querétaro. How does What advantages does the State of Queré- the French-Mexican high school of Mexico overhaul services. The company has grown ITP’s business model operate in terms of taro offer to SAFRAN? City in which students receive a bachelor’s significantly over the years and currently outsourcing processes for your capabili- Chihuahua and Querétaro are both pro-busi- in aeronautics. We work with Mexican of- ITP is also involved in the design of engine ties? Country Delegate Engineering and Design Director ness and are both good environments for ficials through Mexprotec to allow us to in- models. This is not an easy move but is also part of SAFRAN GROUP investment. In terms of human capital de- vite students in our factories and train them ITP, QUERÉTARO the strategy. ITP continues to look for manu- velopment, the Aeronautical University of in France. This internationalization is an im- Are the designs still exported to the Unit- facturing capabilities that we have not yet Querétaro has played a key role. For the de- portant factor in aerospace education. ed States and ITP’s existing customers been able to find in Querétaro or Mexico. velopment of the Franco-Mexican campus, overseas? Given that many processes are very specif- we donated a CFM 56 engine and two land- What are SAFRAN’s next plans in Mex- ITP’s design operations in Mexico are ex- ic, and ITP cannot have everything in-house ing gears so students might work directly ico? ported to Europe and to customers in North and the gap with local supply exists, this is on these products to promote their technical We are in period of growth and Mexico is America, but there are relevant engine mod- an opportunity. Certification of local suppli- formation. Furthermore, we have an open going to play an important part. For exam- ules that we design and manufacture in our ers to aerospace standards is one issue, but dialogue with government officials in both ple for the development of the upcoming Can you give a brief history and overview facility, all integrated. Manufacturing capa- process capabilities and talented people are Can you provide some background on states who express a lot of comprehension LEAP engine, which will take over from of ITP and the company’s operations in bilities of ITP are not for the Mexican mar- the challenges the local suppliers are facing. SAFRAN Group in Mexico, as well as the and willingness to support investment and CFM56. This will be commercialized in Mexico? ket, as everything is marketed overseas to This is so important for ITP that we have a different companies operating in Mexico businesses. the coming two years, for which we already ITP's story dates back to Spain in 1989, the place where original department dedicated to developing the sup- under the umbrella? have nearly 10,000 orders and Mexico will when the company first became involved equipment manufacturers have their facili- ply chain that has a wide technical knowl- We have been operating in Mexico for 25 Can you elaborate on SAFRAN’s efforts play a major part of this demand. in a European defence program, the EJ200 ties. edge and also of the local supply chain. years when we started buying factories in to grow and support the local supply engine for the Eurofighter. The company ITP has robust processes and expertise in Chihuahua which now fabricates plane ca- chain? Do you have a final message for the inter- has evolved from this original programme Can you elaborate on how ITP is develop- developing suppliers who can manufac- bles for Boeing, Airbus, etc. Developing this local supply chain is a pri- national aerospace community? and it currently participates in nineteen ing the young talent in the area as to sup- ture our products. It is our desire to localize Today we have more than 4,000 employ- ority for us. We have put a lot of our efforts Mexico for us is strategically important and separate commercial aviation and defence port your engineering and design needs? more volumes than we currently subcontract ees and five factories in Chihuahua with and human capital into a tool called the we are experiencing very fast development. programmes, having consolidated its mar- Design operations in Mexico are relative- somewhere else in the world away from our Labinal Power Systems. We also have five Franco-Mexican Strategic Counsel, which There is also a strong sense of confidence ket position as one of the top ten aerospace ly new compared to the experience that factories. factories in Querétaro, which started devel- was put in place by the French and Mexican after 25 years present in Mexico and we engine and components companies in the ITP has, and other companies are adding oping mid 2000s. Within the Safran fam- governments. It permitted the creation of an have the intention to stay and continue our world. those capabilities. For the majority, staff is What are some of ITP’s major goals over ily we have Snecma, which produces mo- aero-fund that channels millions of dollars development. There are three factors which Prior to becoming part of ITP, the business sourced from universities that send the stu- the next five years? tor parts for the CFM56 and will shortly into the development of the local supply define our reason for our continued commit- in Mexico was established in 1982 and was dents for internships where ITP will develop Commercial aerospace is ramping up and, produce LEAP engine parts. We then also chain. ment to Mexico: the presence of a strong then a government-owned company. It start- practical skills required for the industry. We as a global sector, Querétaro is linked to the have Messier-Bugatti-Dowty (MBD) who skilled labor force, which is very involved ed as there was a need for aerospace engine also provide many internal courses in disci- same growth that most aerospace companies produces landing gear. Finally to round out We are seeing the role of design becom- in our operations; the federal and local gov- repairs in Mexico and the government set up plines very specific for ITP utilizing the ex- in the region are. ITP has the challenge to our portfolio in Mexico we have two main- ing more important within the industry. ernments, which are focused on creating a an engine-repair facility. In 1995 the order perience gained globally. double its production in Mexico; the goal is tenance, repair, and operations centers, one What role does design play for SAFRAN pro-business environment in which we can of the company changed as the government then to optimize our processes. On the other with MBD that does maintenance on land- Mexico? develop; and thirdly, geographically, we are sold some of the shares. In 1996 the govern- Does ITP play an active role in linkage hand, as new products also evolve, we need ing brakes and one with Snecma that does Mexico is currently moving from its reputa- at the door to one of the biggest markets in ment owned company went to bankruptcy activities with academic institutions to to keep up with the tendencies and techno- maintenance on engines. Anew factory of tion of solely a manufacturing industry to an the world for aerospace. • and ITP purchased the company in 1997. ensure the curriculum is being geared logical developments for future engines. •

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Querétaro. TechOps provided housing, free TechOps trains its own technicians, since opened its first associate’s degree in avion- basic or generic competences, then used to of charge to them, for six months, moving the aeronautical technicians needed are ics, maintenance, and aeronautic engineer- develop the program curriculum, whether services, transportation between Querétaro, rare. Training occurs through TechOpsU, ing, focused on manufacturing. Bachelor’s for the two- or four-year program, for the as- Guadalajara, and Mexico City to visit for which then the MRO reviews, making sure degrees with competencies for setting up sociate’s or bachelor’s, respectively. six months to visit their families, in the pro- they have a great profile for the company’s manufacturing processes, aircraft compo- The company develops the initial profile, cess of relocating. It was the only time an needs. After a year or so, they should have nents and maintenance activities launched at UNAQ provides it, and companies hire a effort this large has been done by the com- the knowledge base to acquire a license. the end of 2008, beginning of 2009, respond- large percentage of graduates, and UNAQ pany in Mexico. After the move, TechOps With the license, they come on as interns ing to the existing needs of the industry at follows up. The follow up includes asking began hiring personnel from Querétaro and and if they pass a final evaluation are hired that time. UNAQ continues adding new how the graduates perform. If their perfor- strengthened its relationship with the gov- as technicians with TechOps Mexico. Te- bachelor’s degrees, such as the two new- mance is not up to standard, UNAQ fine ernment, which put the company in touch chOpsU was developed with the UNAQ est—one in mechanical, other in tooling and tunes its program, developing skills that they with the Universidad Aeronáutica en Queré- and Dirección General de Aeronáutica Civil mechanical components design, and another underperformed or lacked, for example. In taro (UNAQ) to train TechOps’s personnel. (DGAC). Training its own technicians, Te- in embedded systems design; all focused in some cases, UNAQ develops and sets up Making this move required constant work, chOps assures it counts with the human re- the aeronautical field. labs, which will help foster skills for other and our staff has been great, with relevant sources needed. For example, a class of 120 companies as well. For example, nonde- players, just as our Attorney General Mr. students will graduate in January, and ide- Can you please provide details of the na- structive testing is a process applicable to Omar Cuevas. ally they will all work at TechOps. ture of the work UNAQ undergoes with many industries and with many activities in aerospace companies today? aerospace. UNAQ enters joint ventures to Rick What key competitive advantages does Where are you focusing most to inno- Jorge Gutiérrez UNAQ fine-tuned a model for attracting and set up labs and choose equipment, and com- TechOps offer over other MROs in the vate? setting up training programs, starting with panies either have time to use the equipment Uber region? Most of TechOps attention must be focused de Velasco gathering the needs of companies. When they purchased in the university or there is TechOps competes against other MROs on new technology in the aerospace indus- companies look at Mexico and scout whether an exchange of technical training with them. for the same work and on the same crite- try. This airplane, 25 years old, will be oper- Rodríguez they may establish in the country, they tend This close relationship is part of the success- ria, competing on turn times, cost, and qual- ated by Delta another 10 years. As aircrafts to contact UNAQ and the state government ful activities UNAQ achieves and why its ity. If anything, Delta and Aeromexico hold are retired, some will just kind of go away, through the Economic Ministry (Secretaría training programs remain pertinent. CEO President TechOps to a higher standard than other replaced by newer products, such as Boe- de Desarrollo Sustentable), while decid- TECHOPS MEXICO MROs they have worked with because their ing 717s or 757s. Focus on new technology AERONAUTICAL UNIVERSITY ing whether to manufacture components to What role has the institution played in name is in the building, and therefore want can be in flight structures or avionics. The OF QUERÉTARO (UNAQ) fulfill needs of clients in Mexico or of their the evolution and growth of the country’s this MRO operating better than the compe- 787 that Aeromexico currently operates is country of origin. UNAQ works with them aerospace industry? tition. essentially a flying computer. The UNAQ to define this, and also helps develop a list of UNAQ’s faculty, that is to say professors, All of TechOps’s personnel have a license, has great facilities, and TechOps hopes to competences for technical training. technicians, and trainers, come from the unlike other MROs. TechOps also has a tap into their programs. Training employ- Fortunately, companies consider UNAQ industry. The faculty’s profile in general is geographical advantage over competition. ees how to work on new aircraft requires an more than simply a technical training pro- more technical or with hands on experiences Querétaro’s weather is good for fuselage, outlook that is longer than 10 years. vider. The university receives several aero- than having scientific backgrounds. UNAQ Can you provide a brief overview of not needing climate conditions in the inte- Can you please provide a history of nautical related projects, at any point in the keeps its faculty well trained, they already the joint venture between the two air- rior of the facilities. It also well positioned Do you have a final message about Te- UNAQ and any recent major milestones? process. Here at the UNAQ, we work also have degrees or certifications in the field, lines that lead to TechOps Mexico being with quick access to U.S. and local suppli- chOps Mexico? Mexico’s commitments with the arrival of on technical issues, such as applied research and the university asks companies if they formed? ers. TechOps Mexico is an ecofriendly facil- Bombardier included firstly setting up a Fast and technology development for companies. can include UNAQ’s faculty in their train- The CEOs of Grupo Aeromexico and Delta ity, using 30% solar energy. The roof is de- Track Training Program, started in 2006, and Many companies initially visualize Mexico ings. Airlines began conversations about working What challenges did you face establish- signed to take rainwater, clean it, and use it secondly creating a new institution formed as a country with basic manufacturing ac- Due to the established close relationships, together more closely, in trying to provide ing yourself as the largest MRO in Latin for the facilities. Beneath them, the facili- as part of the long term commitments. The tivities, but now with Bombardier´s involve- the institution reproduces company environ- better service and considering that great America? ties have a surface covering to avoid soil team, along federal and state government, ment and engineering services develop, ments as closely as possible, both in manu- workmanship in Mexico. With this, the Te- Building these facilities was a huge project. damage. The MRO also has a state of the art decided to found not only a technical insti- companies are beginning to perceive the facturing and maintenance. On a daily basis, chOps Mexico project began with the help Most MROs begin as a small outfit and then wash rack, reducing the time of washing an tution but a university. This began analyz- country differently. UNAQ members use raw materials, consum- and vision of Miguel Uribe (TechOps Mex- grow, but TechOps Mexico was designed to aircraft from three days to 16 hours, saving ing the most representative manufacturing ables, equipment, and documentation, reduc- ico founding CEO). Originally, the idea was be very big, with corporate offices, hang- a significant amount of water. The -chemi aerospace clusters in the world, like the ones How does UNAQ tailor its courses to cater ing the learning curve of graduates because to expand the facilities of the original MRO ers, and spaces for workshops, among oth- cals used when washing the aircraft are in Wichita, Montreal and Toulouse, looking to the needs of Mexico’s aerospace indus- they are already totally embedded in training in Guadalajara, problems were found in the ers. The negotiation for the land was also ecofriendly, not damaging the environment. for a model that could be adapted to the spe- try? environments. land in Guadalajara. The airports in Mexico a challenge. In Mexico, land for a facility Water is also recycled, potentially used six cific circumstances of the country. With this UNAQ’s college programs work differently. Other aerospace clusters, such as the ones City, Toluca, and Tijuana were among those with direct contact with an airport implies times when washing an aircraft, and when in mind, the idea of a new university began Ideally, the institution counts with a profile in Wichita, Seattle, and Montreal, reproduce considered, but Querétaro presented itself a complex negotiation. The move also was the water is returned to city sewage, it com- taking shape with the creation of the UNAQ, of students at the end of the technical degree, this environment as well, but in separate fa- as the most appealing. Its geographical lo- a challenge, as it was ambitious under little plies with city standards. Hazardous materi- which provides technical training, associ- developed together with the companies look- cilities. In Mexico, we managed to foster a cation, in the center of the country, and gov- time, but TechOps accomplished it due to its als are well treated and processed correctly ate degree, bachelor’s degree, and master’s ing to hire UNAQ graduates. The profile typ- different model, embedding all the different ernment aperture to help with a joint venture organized approach. for disposal. Metals and titanium are taken degrees, and eventually PhDs. All training ically includes English fluency, understand- aspects in one single space, Every lab, every were advantages that Querétaro provided. to company to reuse. TechOps Mexico is a is embedded in one institution, which ful- ing blueprints, drawing, competency with aircraft, every investment is focused on be- TechOps moved at the end of 2013, a sig- How have you been working with local big facility, with a large number of person- fills the needs and grows together with the certain programs, among others, to fulfill ing as transversal as possible, with shared re- nificant accomplishment, considering academic institutions here to support nel, which cares for the environment, for industry. minimum competences the company wants. sources among students, teachers, research- 800 people relocated from Guadalajara to your human resources needs? quality, for security, and for compliance. • UNAQ was born in November 2007 and After that, UNAQ develops a matrix with ers and companies. It is a unique model. •

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existing aircraft engines, tool designs for There are many machining and electrical assembly of new engines and maintenance harness vendors, but there are gaps in Mex- MAKING THE of current engines. Today, GEIQ has gath- ico's aero supply chain, e.g. heat treatment, ered sufficient expertise to be considered special materials machining. To be efficient It is important for OEMs and tier-one competent in a specific area of aviation. The and cost effective, the home value chain has PRIMES FEEL companies to invest in suppliers company's personnel strategy has been to to be closed. There are 300 companies fo- in order to consolidate the local hire from local schools and invest consid- cused on aerospace in Mexico; the sector is AT HOME erable capital in training/assignments in the growing at 18% year-over-year. To ensure a supply chain by offering training United States; GEIQ's work performance is continued supply chain of talent, the Uni- Building Querétaro's and assistance. With training and continuously appraised by its superiors in versidad Aeronautica en Querétaro (UNAQ) Local Supply Chain consulting services from experienced the United States. Mexico was the first en- was established in 2007 to focus on tech- players, local suppliers will be able gineering center outside the United States nician development primarily to support to break into the industry and reach to sign drawings, a major milestone in the Bombardier's electrical harness assembly. the necessary level to become an aerospace industry. Master degree programs are offered in asso- aerospace company. ciation with universities outside of Mexico. Top-heavy would best describe Querétaro’s aerospace sector to- How many personnel does GEIQ have day. It seems that the state has invited too many people to a party in its engineering center and how does it How does GEIQ collaborate with univer- with too few drinks to go around. Though showing promising - Esteban Sanchez, operate with its other global engineering sities in Mexico? signs as the leading emerging cluster, the state’s goal to develop a Operations Manager, Vladimiro centers? The company sends engineers to UNAQ to solid local supply chain has yet to be realized. HYRSA Aerospace Today, GEIQ has 1,800 personnel: 1,100 be exposed to aircraft and instruments to Beyond the aforementioned obstacles in supply chain develop- de la Mora being in the aviation sector; 550 in power fully understand when writing the code for ment, a significant challenge is the often vastly contrasting- re and water; the remainder in oil and gas, a the end function of a device, i.e. navigation quirements of the prime contractors. While high quality is always new business for GEIQ. GE's engineering systems. GEIQ also has collaboration with expected, specific process requirements can differ. In Querétaro centers have specific expertise; however, all the biggest university in Mexico—the Uni- there is a greater need for suppliers of machining services. While centers do interact and cooperate on draw- versidad Nacional Autonoma de Mexico, certification is cited by many as a major challenge, -some con President ings and analysis of components, i.e. stress which has a master degree program in me- sider it not to be the only one. “Certification of local suppliers work between the United States and Mexico has meant that it is GENERAL ELECTRIC and strain. chanical engineering. GEIQ also associates to aerospace standards is one issue, but process capabilities and challenging to establish credibility in the aerospace sector. Suc- INFRASTRUCTURE with Instituto Politecnico Nacional in Mex- talented people are the challenges that the local suppliers are fac- cess stories like ETU are being used by the local government to QUERÉTARO (GEIQ) Are there any case histories that would ico, which accredits the company's internal ing,” said José Carlos Garcia, engineering and design director at convince OEMs to permeate more of their business into the local demonstrate GEIQ's capabilities? classes as part of the university's master de- ITP, Querétaro. supply chain. A big part of GEIQ's operations is to sup- gree program. ITP claimed that developing local suppliers is part of its strategy But what about attracting foreign suppliers? As was mentioned port legacy engines and major periodic in- but it is proving challenging. It is using its internal expertise and earlier, Querétaro certainly offers an attractive business environ- spections (MPI). Currently, GEIQ has 100 What affect will the proposed construc- leveraging its knowledge of developing supply chains in other ment to potential foreign investors. It may not be able to offer the engineers working on GEnx—the next- tion in Querétaro of the National Center countries in which the group operates. proximity to the border that one has in Baja California, Sonora, Can we begin with a brief overview of generation advanced dual rotor, axial flow, for the Research of Composite Materials There is certainly a willingness from the local small- and me- Chihuahua, and Monterrey, but the state compensates by offering GE's aviation history in Mexico and the high-bypass jet engine used in have? dium-sized enterprises (SMEs) to develop aerospace operations, heavy subsidies to large firms and comprehensive training pro- circumstances that initiated GEIQ? Boeing 787 and 747-8 aircraft. Other work Laboratories have been lacking in Queréta- but the consensus is that more support is needed. Despite origi- grams out of UNAQ. GE has been present in Mexico since 1896 includes MPI on Passport engine for Bom- ro, and the center will be a great addition. Its nal equipment manufacturers (OEMs) operating dedicated sup- A number of foreign suppliers have already been attracted to the with manufacturing plants in the north of the bardier, and analysis and component work emphasis on composite materials will com- ply chain development teams, some Mexican companies feel business opportunities presented by the OEMs in the state. NDT country. In 1999, GE's infrastructure busi- for CFM International’s (a joint venture be- plement the work of Bombardier and others that there needs to be more integration on the contractors part. Expert Mexico, a subsidiary of the European Testia Group, was ness combined aviation, power and water, tween GE and Snecma) LEAP, a high-by- in composite materials; the center proposes HYRSA Aerospace is a family-owned, CNC-machining company established to cater to Bombardier’s NDT needs. A challenge and looked at the opportunities of global- pass turbofan aircraft engine. to expand into other disciplines. that recently received its AS9100 certification and is currently in for foreign suppliers is to guarantee enough business from the izing engineering: selected locations were the process of obtaining customer approvals. “It is important for aerospace industry in Querétaro to warrant the establishment of a ; Mexico; Poland and China; the ra- How has the local supply chain developed What are GEIQ's focused areas in avia- OEMs and tier-one companies to invest in suppliers in order to facility, but the centrally located state is also very active in the au- tionale being that engineering talent was to accommodate the aerospace industry? tion and in what areas will it look to in- consolidate the local supply chain by offering training and assis- tomotive industry and business can also be found from this sector. readily available in these countries. Today, GEIQ is an engineering center and does not novate? tance,” said Esteban Sanchez, the company’s operations manager. “The state is also in the Bajio region and forms part of Mexico’s Mexico has one of the highest number of manage supplier relationships, but works GEIQ's focused areas in aviation are the “With training and consulting services from experienced players, largest automotive industry,” said Itziar Larrañaga, general direc- engineers per capita globally, ranging from directly with GE in the United States. The external part of the engine, external perfor- local suppliers will be able to break into the industry and reach the tor of Aeroprocess TTT. “This gave us the opportunity to serve 80,000 to 100,000. Other reasons for the se- aerospace supply chain in Mexico is evolv- mance analysis, and software development necessary level to become an aerospace company.” both the automotive and aerospace industries.” lected locations were that GE wished to be ing: many suppliers are diversifying from for aviation systems. The aerospace indus- Government funding is available in Querétaro to support an Ultimately, whether it is through the development of local SMEs close to its customers, and favorable operat- the automotive industry into aerospace, but try will look to complete the value stream SME’s process of entry through organizations such as CONA- or the attraction of international suppliers, the goal of the state is ing costs. GE launched its power and water there is a difference in regulations between and develop the manufacturing process in- CYT and INADEM, but guidance is needed. Julien Fabreguette, to reduce imports and offer local processes covering all aspects engineering initiatives with steam turbines these two industries. Companies such as cluding fast machining, and the machining director of Airbus Helicopter’s site in Querétaro, said: “Support of the value chain. As Querétaro’s aerospace sector matures, the and steadily gathered expertise on turbo Bombardier are helping local vendors to de- of specialized alloys and composite materi- here will come through the Aerospace Cluster as, collectively, we large companies will begin to develop more complex, value-add- machinery. In 2000, aviation joined GE's velop and introducing vendors from outside als. For GEIQ, a composite of new materials are able to offer advice and intelligence.” ed processes. Querétaro has the most potential to become a hub power and water service offering in Mexi- Mexico; this will generate opportunities for and 3-D manufacturing will be an important Yet even with certification, it can be difficult to attract business for innovation and design, but for the large firms to be able to co, majoring on the external part of the air- tier-two and tier-three companies. It takes step forward; engines will become lighter without the support of a globally recognized name. Especialistas incorporate such processes, there must be a solid supply chain to craft's engine, performance analysis of new/ time to be recognized as a tier-one supplier. and more efficient. • en Turbopartes (ETU) states that the difference in the culture of absorb the simpler, but equally important, procedures. •

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titanium; stainless steel; aluminium; and revisions every quarter to follow up on them can provide a full turnkey product. What steps to RYMSA take to ensure inconel, with a parts diameter of 4", 36" and to improve company development; it also the quality and on-time delivery of its 56". All of ETU's manufactured parts are examines yearly feedback from customers What was behind the decision to expand products? exported to Canada and United States; this about the company's performance, achiev- into the aerospace industry? Regarding on-time delivery, constant com- includes bearing carriers in titanium for the ing an average 85% to 90% qualification. With our core business being oil and gas, munication and transparency through our main landing gear of Boeing 737 aircraft. we have found that this industry tends to supply chain is crucial. RYMSA seeks to New customers that we are developing are: From where does ETU source its raw ma- be contra-cyclical to the aerospace indus- establish firm partnerships with both our Airbus Helicopter, Messier-Buggatti-Dow- terials and how does this affect on-time try. When one is in a downward flux there suppliers of raw materials and the compa- ty, and those in the aero engine sector. delivery? will be more in the way of purchasing nies offering the secondary processes ser- Raw materials come from the United States from the other. In this sense it was a logical vices. Communication with our customers Can you give details of your facility and or via customers under concession. Sourc- decision for us to move into the aerospace and understanding their needs is equally equipment that support your operation? ing outside Querétaro mainly affects price sector as it provides a natural safety net to important. We can thus prepare our part- ETU’s facility opened in 2010; all equip- negotiation; the main cost is logistics. Raw our business. ners for what our requirements will be on a ment is new, has numerical control, and material companies are predominantly in The requirements regarding safety, qual- particular project, thus significantly reduc- was purchased between 2010 and 2014. The North America and deliver to warehouses ity and delivery times of both the oil and ing delivery time. company has a vertical turning lathe with close to the Mexican border: Tijuana, Mon- gas and aerospace industries are also very Regarding quality, we are committed to a diameter capacity of 56"; a Mazak 550 terrey, and Chihuahua. There are currently Rene Trulin similar. Our work is geared towards low the constant training of our team. Our team with a maximum machine capacity to 36", no warehouses in Querétaro. volumes with highly specialized labor. embraces the industry standards as their Jatziri Mazak 350 and 450 for the smaller diam- own principles, which is reflected in the eters, and a Mazak Nexus 510 installed at How long will be needed to develop a lo- What is the strategy you are using to company’s results. Also, we do not skimp Barrios high pressure of 1,000 psi capable to deep cal supply chain? grow into the aerospace industry and on investment in quality equipment. drill on specialty metals, i.e. titanium and Small and medium-sized enterprises (SMEs) define the profile of customer you hope inconel. in Mexico are unfamiliar with medium to to work with? What is a major goal you hope to achieve long-term planning and seek profitability We recently attended both the Boeing sum- over the next five years in the aerospace What were some of the challenges when within a year rather than five. The aerospace mit in Mexico City and the manufacturing industry? Program Manager Vice President of Operations ETU changed its facility to expand into industry affords steady growth with medium show in San Diego, CA. This gave us the In five years we hope to have 50% of our ESPECIALISTAS EN the aerospace industry? and long-term contracts; long-term agree- RYMSA S.A. DE C.V. opportunity to establish first contact with operations dedicated to the aerospace in- TURBOPARTES S.A. DE C.V. A main challenge was to fulfil its customers' ments run from three to five years. Compa- potential clients and develop a deep under- dustry. To achieve this we will have to en- requirements, e.g. manufacturing quality nies must be patient for a profit. standing of what their machining require- sure that we maintain pace with advances control. A further challenge was the special Arguably, in the last two years, there has ments were. Our current expertise is in in technology so as to provide the reliabil- processing required for a finished product, been a favorable change of business de- the machining of small- to medium-sized ity that is essential for working in the aero- i.e. non-destructive testing (NDT) and heat meanor by original equipment manufactur- components. Additionally, we identified space sector. treatment; currently, ETU still lacks heat- ers (OEMs) towards Mexico's SMEs. ETU the need for certifications on all aspects of We are working to a strategy to offer not treatment capability. Another challenge recently secured Airbus Helicopters and our own supply chain and so recognized only complex machining services, but also Can we begin with a brief history of Es- was to establish credibility; there has been Messier-Buggatti-Dowty as new customers; the importance of consolidation on our engineering capabilities that help us to pecialistas en Turbopartes and its recent serious competition between the culture of five years ago, there was no business perme- Could you provide an introduction to side with regards to secondary processes provide our clients the insights to reduce major milestones? work in United States and Canada versus ating from OEMs. Currently, some Mexican the company with a brief history and such as heat treatment and coating. costs and improve the designs of their ETU is a privately owned, 100% Mexican Mexico. SMEs do not have certification, capabilities, details of any recent major milestones? components. family business, established in 1991 as a infrastructure, and supply chain develop- RYMSA was founded in 1989 and has al- What are some challenges and com- specialist in parts of turbomachinery. To- Do you have in-house secondary process ment to the standard of OEM requirements. ways been dedicated to offering machine plexities of making that transition from Do you have a final message? day, the company leads the Mexican market capabilities? The Mexican government needs to coerce services. Having initially catered primarily your core industries to the aerospace Mexico certainly has the HR resources to in the manufacture and assembly of low- Within ETUs facility, it has complemen- the OEMs to recognize that Mexico has a to the appliances industry, it was in 2000 industry? support the aerospace industry and compa- pressure turbines. In 2010, ETU launched tary processes for its core business turbo viable supply chain, and the SMEs to com- that we shifted our focus to the oil and gas Currently 80% of our machines are CNC nies are willing and ready to expand into its aerospace division to build a new manu- machinery, such as non-destructive testing mit to deliver products on time. industry. Today, aerospace and oil and gas lathes 20% are vertical, 4-axis machines. this sector. We hope that in the future that factured cell with certified quality standard (MPI & FPI), HVOF, and plasma spray. As are our principle target markets. In general we have found that the aero- Mexico will not just be seen as a destina- AS9100, and hire and train a specialized the company's aerospace division manufac- What are ETU’s goals for the next five In 2006 RYMSA became ISO-certified and space industry requires more in the way tion for competitive manufacturing, but team dedicated to aerospace requirements; turing expertise increases, its capabilities in years? started working with number of companies of milling than turning. Our first challenge will also be a key global player in terms of currently, the team consists of 12 personnel, special processes will also grow. ETU intends to have a new shop construct- in Houston from the oil and gas sector. At will be to develop our expertise and capa- engineering and design. 10% of the 120 that ETU employ. The com- ed close to the OEMs in Querétaro with an this time 80% of our products were being bilities on machines that work on a 5-axis In the last few years the Querétaro Govern- pany is divided into three divisions: turbo How does ETU ensure quality? integrated division for special processing exported to the United States, Canada, Ma- model. The second major challenging is ment has worked very hard to increase the machinery; research and development sup- ETU has configuration management; this and manufacturing. Land for the shop has laysia and China. making our supply chain more efficient participation of the Aerospace industry in porting the core business; and aerospace. includes an installed in-process quality been acquired; the completion date for con- Our move into the aerospace sector came in particularly with regards to sourcing the the region. This has been successful in po- What is your service offering to the aero- system plus risk management. Each time a struction will be 2018. ETU will service the 2008 with our first customer being Messier raw materials. The majority of raw ma- sitioning Querétaro as a key global player space sector? request for a quote is received, a complete three divisions of the aerospace industry in Services. We are now able to offer a range terials found in the local area are for the in manufacturing. At Rymsa, we will keep ETU's current offering to aerospace is ad- analysis and gap analysis of what is required Mexico: engines in Sonora; aero structures of machining services to original equip- automotive industry. Currently, we have investing resources and efforts to be a key vanced manufacture in three different sec- is carried out to achieve customer's require- in Chihuahua and Tijuana; and landing gear ment manufacturers and tier-one compa- to source our aerospace materials from the part of this success in history. • tors: landing gear, engine and aero struc- ments. The company has in place key per- in Querétaro. In five years, ETU will have nies from the aerospace industry and in United States, which is increasing delivery tures. The company's capabilities include: formance indicators, and has management an active role in all three markets. • taking care of our whole supply chain we times.

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high-precision small parts ranging from one companies, these institutes are able to teach for the continued development of the indus- capable skilled labor force. This needs to be quarter of an inch to six inches. Our products practical skills that can be of service to the try and for Mexico’s economy that there be fully utilized by the aerospace industry. are used in the construction of turbines, hy- industry. a strong network of SMEs working within draulics, and pneumatics. JS: Workforce mobility has increased with the aerospace sector. TechFab hopes to be Where does TechFab hope to be in five ES: HYRSA mainly serves the Mexican mar- the arrival of new aerospace companies to a pioneer in achieving this. From our facil- years in terms of market positioning and

ES ket by supplying parts to OEMs that they pre- the region. The supply of skilled labor has ity in Querétaro, we are now able to offer all service offerings? viously had to import. However, we plan on increased exponentially and, since the aero- TechFab competencies in which we have 25 We estimate that our entire work force will exporting in the near future, particularly to the space industry absorbs most graduates, the years of experience. We began the process of comprise over 100 people in five years. We United States and Canada. demand for skilled labor remains high. obtaining purchase orders three months ago see the potential for this in Mexico, so we are and hope to become a key strategic partner hopeful that our efforts will complete our vi- What materials does HYRSA work with? In what ways has Mexico grown as a player for aerospace companies operating in Mex- sion. In terms of technical expertise, we will JS: Stainless steel is the main metal used in in design and innovation in the global aero- ico. continue to engage in single-parts manufac- JS the food and beverage industry. HYRSA has space industry? turing and build on the applications of our several decades of experience in these indus- ES: Several companies in Mexico already What do you see as being the most impor- products. The market for our product and tries and continues to employ a mix of 75% conduct conceptual design work and testing. tant factor for the continued growth of service offering in Mexico is large, there- stainless steel for some products. HYRSA The industry has taken note of Mexico’s cost Mexico’s aerospace industry? fore there is plenty of potential and scope for Esteban Sánchez Aerospace has capabilities to work with spe- competitiveness in manufacturing. Now, it Part of our business in Canada was the growth. cialty materials such as nickel alloys, titani- is moving to utilize the abundance of highly knowledge aspect of the industry, which is & Jerónimo um, and aluminum. skilled engineers to gain a competitive advan- Olivier something that we want to bring to Mexico. Do you have a final message for readers? tage not only in manufacturing but also in de- Mexico, and in particular Querétaro, has Mexico is a vast country with a large, ex- Sánchez Have you encountered challenges sourcing sign and innovation. Jay-Rayon great potential to not only manufacture air- tremely talented young population. It is a specialty materials in Mexico? JS: Recent private sector investments in Mex- craft components, but also to be involved stable environment for our business, and the JS: The challenge is finding local suppliers ico demonstrate this trend. GE operates an in the design. A key factor in achieving this economy is growing. Finally, Mexico of- who sell small quantities at competitive pric- advanced engineering center in Mexico that is education. We are working closely with fers talent in the aerospace and engineering es. In aerospace, low volumes are the norm. specializes in research and design of airplane the academic institutes here to establish ef- fields. These factors make Mexico a viable ES: Operations Manager General Manager Importing from the United States is an option turbines and power systems. These invest- fective training programs that will ensure a place for investment and manufacturing in JS: Executive Director when we have challenges sourcing locally. ments bode well for the companies and for TECHFAB INC., MEXICO deep talent pool of qualified personnel avail- the aerospace industry. • HYRSA AEROSPACE ES: When HYRSA imports raw materials, we Mexico as a center of innovation in aerospace. able to serve the human resources needs of lose competitiveness. However, the establish- the aerospace industry. Our eventual goal is ment of warehouses in the Querétaro Aero- What advice can you give other small, local to no longer be dependent on our counterpart space Cluster has started to alleviate these enterprises trying to break into the aero- in Montreal for human resources. Pursuing challenges. space market? the design facet of this industry will not only ES: Aerospace companies have voiced the give TechFab a competitive edge among What partnerships have you formed local- need for suppliers to enter the market. How- other similar companies, but will also con- ly in order to establish an efficient supply ever, the high barriers to entry make it diffi- Could you provide a brief introduction to siderably strengthen Mexico’s reputation as Can you provide a brief history of HYRSA chain for special processes? cult for local suppliers to acquire the capaci- TechFab? a popular destination for the aerospace com- and any recent major milestones? JS: HYRSA works with companies in the tation required. It is important for OEMs and TechFab is a privately owned Canadian munity. ES: HYRSA was established fifty years ago Querétaro region to complete special pro- tier-one companies to invest in suppliers to company based in Québec that was founded Mexico, and in particular Querétaro, as a supplier of high-precision parts to the cesses required for its products. The arrival consolidate the local supply chain by offer- in 1990 and specializes in the gun drilling, Do you see Mexico offering opportunities has great potential to not only food and automotive sectors. Decades of ex- of new players to the Querétaro area has in- ing training and assistance. With training and machining, and tooling of industrial compo- for pursuing a strategy of acquisitions? manufacture aircraft components, perience with Computer Numerical Control creased the availability of companies per- consulting services from experienced players, nents. With a strong focus on the aerospace We certainly see potential for this. Our but also to be involved in the design. (CNC) equipment paved the way for HYRSA forming secondary processes such as heating- local suppliers will be able to break into the industry, TechFab is able to offer turnkey so- main goal is to establish a strong SME net- A key factor in achieving this is to enter the booming Mexican aerospace mar- treatment and coating. This growing network industry and reach the necessary level to be- lutions to our clients from design and con- work within the aerospace industry. There education. We are working closely ket in 2013. HYRSA Aerospace has grown of suppliers has, in turn, attracted additional come an aerospace company. Long-term in- ception, production, assembly and laser in- are many companies that offer the services with the academic institutes here to considerably in the past two years, the AS players to come to the region. In the coming vestments from suppliers plus OEMs and Tier spection. Furthermore, we work closely with needed but they lack the certification or fi- establish effective training programs certificate put us on the map. years, additional suppliers entering the aero- 1 long term planning are key for Querétaro´s our clients in design and conception of cus- nancial means to break into the aerospace that will ensure a deep talent pool of space business will solidify supply chains in Aerospace industry to succeed. tom machinery. market. Through a strategy of acquisition or qualified personnel available to serve What products does HYRSA manufacture Querétaro. simply sharing our knowledge and expertise the human resources needs of the for the aerospace industry? What does the aerospace industry repre- Having only been in Mexico since Febru- with these companies, we will ensure reli- ES: HYRSA Aerospace is the only compa- How does HYRSA utilize the academic in- sent for you? ary, what was behind this decision and able local suppliers are ready to meet the aerospace industry. Our eventual goal ny of its kind in Mexico. OEMs and other stitutes in Querétaro to acquire talent? ES: At HYRSA, we see aerospace as a life what is Techfab’s strategy in establishing needs of the aerospace industry in this coun- is to no longer be dependent on our large players currently import many small ES: HYRSA works extensively with Univer- project. It is a difficult industry to penetrate, itself as a key player in the country’s aero- try. The local and federal governments here counterpart in Montreal for human parts required to produce turbines and other sidad Aeronáutica en Querétaro (UNAQ) to and we understand that long-term strategies space industry? are very active and supportive when it comes resources. aerospace products. Therefore, we see po- create internships and job opportunities for are the keys to success. HYRSA will contin- Having studied closely the evolution of this to funding, which is extremely beneficial to tential for HYRSA to substitute some of the students. These programs help us examine ue to invest to make sure aerospace players country’s aerospace industry, TechFab iden- the industry as a whole. TechFab shares the parts that original equipment manufacturers worker’s aptitudes and skills in order to retain have the suppliers that they need to succeed tified the opportunities for small to- medi Mexican government’s vision of reducing (OEMs) and tier-one companies import. the best talent. With the help of the state gov- in Mexico and raise the global profile of the um-sized enterprises (SMEs) to support its imports and having a fully independent sup- JS: HYRSA’s machining capabilities cover ernment, and in coordination with aerospace country’s aerospace sector. • supply chain. We saw that it was important ply chain. Mexico can boast an extremely

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growth that Querétaro was experiencing in NG: The state government’s commitment its aerospace sector and acted on the oppor- to growing the aerospace industry has also tunity that was presented to us. meant that it has been easy for companies Can you provide some background on CEO visited Mexico and noted how the NG: We also felt that we could contribute like Omni-X to establish itself in Queré- Grupo TTT? state of the aerospace industry was very to the growth of the country’s aerospace in- taro.

Grupo TTT is a Spanish company with similar to what it had been in the Basque AS dustry by transferring our knowledge from over 50 years experience in the field of Country 25 years ago and what was lack- our other global sites. Companies here are How have you seen Querétaro’s supply heat treatment. We have been working in ing was companies that were able to offer very willing to develop their operations chain grow in recent years? the aerospace industry for more than 30 special processes, particularly in Queréta- in this sector, but many lack the internal AS: Querétaro is home to many great ma- years, and today 35% of our total business ro. After the decision was taken to migrate structure to do so. We have been interact- chining shops and a lot of these have been is focused on this sector. We have four fa- to Mexico, we embarked on a thorough ing with a number of local businesses to aid able to transfer their skills to the aerospace cilities in the Basque Country that offer a exploration of the market to seek out what Querétaro in successfully shifting from the industry. What we are seeing is a distinct total of 23 different special processes, all we would be able to bring to the table. NG automotive to the aerospace sector. lack of raw materials, not only in this state of which are NADCAP-certified. All labo- The most important part for us to address but also in the whole of Mexico. 90% of ratory processes that we have supporting first was ensuring that we had sufficient What are the services and products that our raw materials are coming from the Itziar our operations there are also NADCAP- power to run our furnaces, which all run you are able to offer to the aerospace in- United States, as is the case for other com- approved. Each facility is dedicated to dif- on electricity. This facility was completed Alexandr M. dustry? panies here. This increases overheads and Larrañaga ferent processes from vacuum heat treat- in October 2014, and Aeroprocess TTT NG: We manufacture bending tools for lead times. The establishment of a distribu- ment to hard chrome and shot peening. began operations in May 2015. Since we Slouka & tubes. We are given specifications of the tion center for raw materials would allow arrived without a contract from an exist- tube and an idea of what the customer Omni-X to offer a much more value-added What were the opportunities you identi- ing partner, we have been focused mostly Nora Guerra wants in terms of the bend. We then de- product to our customers. General Director fied in Mexico? on establishing ourselves as the partner sign, engineer and manufacture the tools AEROPROCESS TTT When Grupo TTT initially decided to ex- of choice for all companies needing heat- with which to achieve this. We have strong How have you found the quality of the pand overseas we began a process of iden- treatment services in Querétaro. relationships with the machine makers on talent pool in supporting your human tifying which market would offer us the which our tools are used to ensure that the resources needs in Mexico? AS: CEO most opportunity and would be most in How important is heat treatment to the customer receives the greatest value prod- NG: Unfortunately, the academic centers NG: General Manager need of our services. Three years ago, our supply chain of a metal component? OMNI-X MX uct. and training schools in Querétaro have not Heat-treatment and other special processes AS: There are a great many components yet caught up with high-quality demands come last in the supply chain for a metal that go into an aircraft and a lot of tubing. of the aerospace industry. We have found component and are the most important. We are able to work with tubes ranging in that the talent coming out of these schools The processes are designed to increase the sizes from half an inch to four inches and is not up to par with our needs. To address hardness and resistance of a metal so that in any metals, though typically in the aero- this, Omni-X has used its experience from is able to stand up to extreme conditions. space industry we work with Inconel and the Czech republic and the United States to titanium. establish its own in-house training. What steps are you taking to ensure AS: What we have found, however, is that quality and on-time delivery? Can you provide a brief overview of Om- What measures does Omni-X have in the general education is good and, most im- To work in the aerospace sector, certifica- ni-X’s history and global operations? place to ensure the quality of its prod- portantly, the Mexican people are incred- tion is essential and we have our AS9100 AS: We are a family business started by my ucts? ibly dedicated to self improvement and will certifications. This will mean that - poten father, my brother and myself in 1987 in AS: We have rigorous quality checks in always complete a task to the best of their tial customers will be able to use us as a Colorado. We expanded to the Czech Re- place, but really what lends us our level ability. supplier. Gaining certification is a rigor- public in 2000 and started our facility in of quality is significant experience in this ous process; every detail must be closely Querétaro three years ago. We have invest- field. The bending sector requires a lot of What are some of the goals that Omni-X monitored from the time a furnace will be ed a lot of time and energy into this site, science, but also a great deal of knowledge hopes to achieve in Mexico over the com- in use to what you expect the laboratory as we see Mexico as a growing market for from the staff working in it. This is some- ing five years? test results to show. us in the aerospace and automotive indus- thing that Omni-X has built up over the last AS: We hope to be moving next year to a tries. We are a tier-two supplier of bending 28 years. larger facility in order to accommodate our Do you have a final message? tools. All of our locations are strategically rapid growth. Our goal is to establish our- Aeroprocess TTT wants to invest in more placed to supply that specific region. Over- What are the specific advantages that selves as a leader not only in Mexico, but technologies, depending on the demand all about 30% of our business is focused on Querétaro offers to Omni-X as its re- also in Latin America, by using this facility of the market and customers’ needs. The the aerospace industry and in Mexico this gional base? as a base for those operations. • aerospace sector is growing up so fast, and is about 25%, but a figure we are looking AS: A number of our pre-existing custom- we want to be here and help on that. In to grow. ers are based here, but beyond that, the cen- August of 2016 we are going to have the tral location of Querétaro and the security NADCAP audit, which will help us gain Why is Querétaro’s aerospace sector im- of state makes for a very strong business more work. Having a company that does portant for Omni-X? environment. Because of this, we are see- special processes in Querétaro will make it AS: We offer a very niche service and, as ing a constant flow of new companies to easier to develop a complete supply chain such, do not have a lot of competition in the the area and, as such, our business is grow- in the area and in Mexico. • aerospace industry. We identified the rapid ing.

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IT’S THERE IF YOU Miguel NDT Expert established itself in Querétaro in 2011 to capital- KNOW WHERE TO ize on the opportunities presented by the gap in non-destructive Saldamando Could you provide an overview of Téc- What services does Técnica Test-CEAT testing. Though the company has now successfully expanded its Rangel, nica Test-CEAT? offer to achieve cost reductions for cli- LOOK customer base in the region, it claims that the principle challenge MSR: Técnica Test began offering non- ents? was convincing its customers to trust an external provider in an Miguel destructive testing (NDT) services in 1993 MSF: Técnica Test assists companies with Testing and Quality-Control emerging market. “It has been difficult for us to convince compa- and expanded to become a provider of the introduction of enhanced automation nies here of the ability of local personnel carrying out these tests,” Saldamando quality-control equipment for the aero- capabilities to reduce testing costs. Téc- Services in Querétaro said Nicolas Fournier, Testia International subsidiary manager for space and automotive markets. Through nica Test’s non-destructive testing equip- Testia Group, NDT Expert’s parent company. “We have worked Flanagan & partnerships with vendors, such as Institut ment can be used for testing in production hard and also leveraged our reputation in Europe to achieve this. Dr. Foerster, Carl Zeiss, Karl Deutsch, etc., lines. Today, companies ask for mechanics Now that we have a strong customer base, we are seeing more in Israel Salas we offer dimensional metrology, magnetic and integration capabilities from their sup- the way of recommendations.” particle and ultrasonic inspection, coordi- pliers. Accordingly, the addition of CEAT In a quality-driven industry, there is considerable emphasis on Similarly to NDT Expert being attracted to Querétaro to serve nate measuring, Eddy-current inspection, allows our company to offer a complete MSR: General Director testing and quality control. Testing can often be a highly special- Bombardier, Exova moved to Monterrey in 2007 to meet the me- MSF: Technical Director and microscope equipment, among others. solution that can be integrated into our ized and particular process, which companies seek to outsource. chanical testing, metallurgical testing and non-destructive testing IS: Commercial Director CEAT was founded as a design center costumer’s system. Mexico has not yet developed a strong network of testing ca- needs of Frisa. The Canadian headquartered testing company has TÉCNICA TEST S.A. DE C.V. and was part of an incubator project at pabilities and contractors are forced to look outside the country since been successful in expanding its client base throughout the Tecnológico de Monterrey. Through this How has research and development for these services, which greatly increases costs, and lead-times. country. Juan de Dios Rodriguez, strategic business development program, CEAT grew from a small, fam- (R&D) grown in Mexico and how is Tec- Nonetheless, more companies, both local and international, are manager for Exova Mexico, is noticing an increased desire for ily project to a structured business unit. nica Test contributing? arriving into this field. The country’s progression into the field outsourced testing services. “[Internal testing] is a trend that ex- In 2010, CEAT did a joint venture with MSF: Companies are aware of Mexico’s of composites has put more pressure on developing testing ca- ists today, but as the aerospace industry in Mexico matures, aero- Técnica Test. We noticed manufacturing cost-competitive advantages. Today, how- pabilities. Additionally, the push for greater integration between space companies will look to outsource their testing requirements companies offered free design services if ever, companies are eager to relocate R&D academia and industry has contributed to a rise in the number of to be able to better focus on their core competences.” a customer decides to buy the final man- projects to Mexico and utilize the growing testing laboratories that are geared towards serving the aerospace Nuevo Leon is certainly proving to be a strong player in the field ufactured product as a key turn project. talent pool of engineers. The addition of industry. of testing. Grupo Forem is a Mexican group that, through its com- Therefore, CEAT experimented with this CEAT at Técnica Test demonstrates our ponent companies, offers a diversified range of metrology- ser business model (turnkey projects) to offer belief in the bright future for Mexican in- vices and a number of mechanical tests. It is also one of the few competitive services and address the low novation and research. local businesses that have been successful in achieving NADCAP demand for stand-alone design services. MSR: Today, Técnica Test-CEAT engag- certification. “Obtaining NADCAP accreditation was certainly a MSR es in reverse engineering and conducts challenge for us,” said Fausto Yépiz, deptuy director general of What projects demonstrate the compa- complex technical tests for our clients. Metrolab, one of the group’s companies. “However, we saw it ny’s capabilities? We have some of the best talent in the in- more as an opportunity to optimize our existing quality system MSR: Técnica Test-CEAT helped Sigma dustry and access to special technologies rather than simply adjusting our model to meet the requirements.” Aerospace establish a design center and such as laser scanners. Our staff is able to Grupo Forem has already been able to expand its service offer- train its new engineers. Our company em- conduct research and invent new solutions. ings to meet the needs of the aerospace industry in Querétaro, barked on a one-month training to fast The systems that Técnica Test-CEAT pro- and Mexico City and is now even exploring the U.S. market. This track the specialization of our engineers duces have the ability to eliminate manual is proof that local companies can be successful in more value- for work in the aerospace industry. We of- inspection processes, in order to automati- added processes and that these services are becoming more read- fered several courses including finite ele- cally inspect a product and identify cracks ily available. ment and flow analysis. Técnica Test is or other faults. There is also a large number of public research centers in Mexico proud to witness the continued success of that are becoming more involved and supportive of the aerospace this project. Do you have a final message for the sector. The Center for Advanced Technologies (CIATEQ) re- MSF readers of this publication? cently inaugurated its Laboratory for the testing of Aeronautical What will be the capabilities of Técnica IS: Mexico is prepared to grow and be a Technologies (LABTA). This laboratory, located in Querétaro’s Test’s new plant? mature player in the aerospace industry. airport, is seeking to enhance the competitiveness of the state, MSR: Técnica Test-CEAT will open a new The country has a wealth of talent and and has been working with major companies such as SAFRAN, Querétaro plant in October, which will Mexicans are known for their commitment Bombardier and ITP in the field of mechanical testing. CIATEQ’s possess conventional machines for the as- and hard work. As with our decision to director, Dr. Francisco Anton, believes: “In order for Mexico to sembly of our integration and automation open a new plant, Mexicans seek to fully establish a strong network of suppliers we must have more in the solutions. The new plant will also house a achieve their goals. Técnica Test-CEAT way of reliability testing capabilities.” lab specializing on application develop- plans on taking advantage of our estab- Testing and quality control are vital aspects of the aerospace in- ment and testing. lished connections with other players to dustry. Though testing companies are still relatively few, Mexico IS: Many clients prefer single-supplier grow within the aerospace industry. • has leveraged its strong engineering talent pool, fostered by the contracts for the provision of an entire so- country’s world-class universities, to now offer these services at a lution, and, with this new plant, Técnica level that one would expect to find in more established aerospace IS Test seeks to consolidate our clients’ sup- hubs. • ply chain.

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non-destructive examination for a faster evaluation of the coating thickness. We ended up incorporating our XRF product into the Leonardo client’s company laboratory in order to run the test. Another example is a project that we carried out with a large Romero American company, which requested a hardness evaluation with- out marking the component. For this, we use a nano-indention instrument, which is able to measure the hardness of a material in a tiny area.

Why was the State of Querétaro chosen as a base for Mexican Senior Sales Manager operations? HELMUT FISCHER, One of the main reasons for Fischer to locate itself in Querétaro S. DE R.L. DE C.V. was security. The state offers one of the highest qualities of life in the country. Another reason is proximity to other companies in the aerospace and automotive industries. The geographic loca- Could you provide an introduction to the company and a brief tion of Querétaro is also beneficial as we can make day trips to overview of Helmut Fischer’s move into Mexico? Guadalajara, Mexico City, and many other places from here for Helmut Fischer offers a broad range of measuring and analysis work purposes. instruments for the most diverse applications and industries, and our products have been used in Mexico for a long time. It was in terial analysis, hardness, coating thickness amongst providing a Have you noticed a stronger emphasis on innovation and re- 2012 that we established a permanent office here in Querétaro number of other assays. We can also conduct the essential quality search and development (R&D) in Querétaro? in response to a growing demand for a number of our product checks on a company’s product, something that is of the utmost Yes, it is interesting because there have been many research cen- lines. Since then, we have been very active in raising our pro- importance in the aerospace industry. With our office now estab- ters in Querétaro for a long time. Within the aerospace sector, file amongst companies here and have steadily gained recognition lished in Mexico, we are able to offer full product application there has been a boom coming not only from government insti- from a number of large businesses. Our name has lent us a sig- services. We will soon be certified here in Mexico, thus allowing tutions but also from private companies. Fischer just joined an nificant advantage in assuring our clients of the highest standard us to further contribute to the aerospace industry. association for surface finishing, and we have been partaking in of service with full certification. Though currently accounting for the conventions and lessons for the expertise and technique of op- 25% of our business in Mexico, we view the country’s aerospace Can you provide a case study or example that demonstrates erations for this. People from research institutions are also com- industry as being a key area of growth of our operations. your role in implementing the services that you provide to a ing and speaking to the association in order to provide education company? on certain topics, so there is certainly a trend towards R&D in What products does Helmut Fischer offer and where in the We were recently requested to conduct measurements on titanium Querétaro. supply chain do you fit in? hydraulic components. For this we carried out an imparallel mi- Helmut Fischer products are an integral part of any form of in- croscopy analysis in a third party laboratory. The client had asked What must local companies address in order to succeed in spection. We offer high-quality measurement instruments for ma- that we use our X-ray fluorescence (XRF) method, as this is a Mexico’s growing aerospace industry? Certification is crucial. Currently the AS9000 certificate is barely known in Mexico. I was able to attend a speech by someone from SGS, which has the certification to provide an audit on AS9000, and there were very few companies mentioned that are behind this. There is a large scope for businesses to get certified on AS9000, and while it would be a challenge financially to get in- volved and accredited, it would also lead to massive gains for the company. The level of qualification needs to grow in Mexico, and this is in the process of happening. I believe that it is possible that this will be achieved in the next few years.

Where will Helmut Fischer be in five years? I hope that we can begin manufacturing in Mexico of our com- plex instruments, in addition to offering full service on laboratory testing and quality checks. With regards to manufacturing, we are aiming to initially start doing the final assembly of components in addition to selling more complex solutions that we are working on. We are also beginning to work with non-destructive radioac- tive measurements, and we have a few customers lined up for this product. We will be training our staff to handle isotopes and the equipment for radioactive material testing. I am excited about the discoveries we will make here in Mexico, and my expectation is that we will find opportunities to grow and develop in the com- ing years. •

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this is a number we aim to increase in the future. Our goal has been the globe and our able to identify what are the best practices for Nicolas Fournier to deploy all of our service offerings from Europe here in Mexico and Gene any given company. It is important to note that we are not a con- we are well on the way to achieving his goal. sultancy and as such cannot give a company direct solutions, but & Rubén Garcia Morrison what we can do, which in a way is more important, is train a com- Can you provide details about the facilities, equipment and certi- pany to solve a problem for themselves. We offer these services fications that you have supporting your operations in Querétaro? NF: Testia International Subsidiary Manager to them not just on a local level, but also with a global view to TESTIA GROUP There are three different certifications required to work in the NDT ultimately meet their strategic needs? service industry: level one, level two and level three. Amongst our RG: COO NDT EXPERT MÉXICO seven personnel we have a total of 15 certifications, a mixture of level Global Aviation, To what extent does Intertek remain a strategic partner for a twos and level three, covering all five principle NDT methods. Space and Defence company following a successful audit? Program Manager NF We have an office here in Querétaro and a laboratory at the UNAQ Intertek is constantly thinking of the future and the services that with whom we have a strong relationship. In our lab we have ultra- INTERTEK we can offer companies post certification. Following a success- sonic immersion tanks, portable ultrasonic equipment for carrying out ful audit we will return once or twice a year to not only confirm Please provide an introduction to NDT EXPERT Mexico? tests on aircraft directly, eddy current equipment and dye penetrant that the practices are still meeting the standard’s requirements, NDT Expert Mexico is a subsidiary of the Testia Group, which is equipment. We are fully equipped to carry out all of our testing com- but also to assess whether the quality management system is truly based in Europe. The company was incorporated here in 2011 and petencies. helping a customer achieve their strategic goals. In addition to is focused on providing a range of services in the field of non-de- Can you provide a brief history of Intertek’s operations in the this we can provide a number of other services such as training structive testing (NDT). The reason behind our move to Mexico was What has been the largest challenge in establishing yourself in the Mexican aerospace industry? services and second-party supplier audits. the fact that the country’s aerospace industry has enjoyed two-digit Mexican aerospace market? Intertek has been operational in Mexico for 12 years now and growth annually for the past eight years. This considerable boom and NF- Non-destructive testing is a very specialized service and can have started initially in the commercial sector. Seven years ago, it be- Do you have a final message? the arrival of many foreign OEMs and tier one companies prompted serious repercussions if not carried out correctly. As such, trust is the gan servicing the country’s aerospace industry. The sector is in- Intertek anticipates a lot of growth in Mexico’s aerospace sec- us to explore the market. We noticed at the time that there were no most important aspect of any partnership in this field. The largest credibly active and vibrant and has grown rapidly over the past tor. This is an industry and market that we are extremely excited available aerospace NDT services in the country and so we estab- challenge for us has been to overcome this and assure our partners of decade. We expect to see significant exponential growth in the about. We have several large strategic customers, each with their lished ourselves here to address that gap. Bombardier was our first our capabilities and the quality we offer. We have worked hard and future. own supplier base, which will considerably help us grow our mar- contract and for the first year of our operations in Mexico this OEM also leveraged our reputation in Europe to achieve this. Now that we ket. I would stress that Mexico is no longer just a cost-compet- took up 80% of our business. Today we have reduced business with have a strong customer base, we are seeing more in the way of rec- What services do you offer? itive location. The extremely reliable and willing labor force is Bombardier and now have around 20 customers in the country. We ommendations. We have managed to gain a strong reputation and our Intertek offers quality-management systems certifications to in- a huge credit to the country and is launching Mexico on to the currently have seven people working at NDT EXPERT Mexico and market is growing. ternational quality standards. With regards to the aerospace in- global stage as a promising player in the international aerospace dustry, these certificates include the AS9100, AS9110, AS9120. industry. • Please explain how you intend to diversify your activities in the These standards encompass manufacturing and service compa- Mexican aerospace sector? nies, MROs and warehouse and distribution companies. Current- NF-One important area for NDT EXPERT Mexico’s development is ly Intertek has approximately 35 strategic customers in Mexico, to be able to offer services to the MRO and airline industry. We have but we hope to increase this number substantially. We have a been pushing to obtain certification in order to work in this sector. strong focus on Querétaro and have recently hired a local auditor We were recently awarded FAA part 145, but must now seek to attain to reduce costs for our customers in the state. the EASA part 145, and most importantly the Mexican DGAC. With these three we will be able to diversify our activities and provide NDT How do you leverage your global capabilities to ensure com- services in the maintenance and repair of aircraft in Mexico. Once we panies in Mexico are receiving a value-added service? have reached this goal we will begin to look to other parts of Latin Intertek is unique amongst other third-party certification busi- America to offer our services. nesses in that we tailor our services completely to the individual customer’s needs. During our primary approach we integrate our- How have you seen the aerospace industry in Mexico evolve since selves fully with the client to discern what we can do specifically its beginnings? to help them, whether this be a small family-owned company or RG-I first began working in aerospace in 2000 when there was only a large multinational. Another key advantage is our large glob- one international player with a presence in Mexico. At that time, no al network of existing customers. Intertek offers a networking one could have predicted the growth that this sector has seen over the platform through which our certified clients can meet potential past 15 years. The country now boasts a strong local supply chain customers. This has been hugely successful in Mexico and has and companies are focused on quality and achieving the highest stan- brought a wealth of opportunity to the smaller businesses trying dards. Here at NDT EXPERT Mexico we have had not a single NCR to break into the global aerospace supply chain. since we began operations. What role is Intertek playing in fostering the growth of the Do you have a final message for our GBR readers? local aerospace supply chain in Mexico? NF- The aerospace industry in Mexico offers countless opportunities Intertek’s key advantage as a strategic partner is our ability to to companies that are willing and able to operate in this sector. New fully understand the needs and requirements of all our customers. plants are being built here by foreign players everyday. Despite being In Mexico it has been important for us to appreciate the cultural a subsidiary of a European group, we feel ourselves to be a Mexican differences and to adapt accordingly. Having achieved this we company and as such are dedicated to the continued growth of this are able to offer them the best service to help them achieve their country’s aeronautics sector. • goals. We have the experience of doing hundreds of audits around

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SONORA: REVVING UP AEROSPACE

“Guaymas is a very enchanting place, which at times may be “Guaymas is a very enchanting place, which at times may be ineffable. It is once businessmen come that they really get a ineffable. It is once businessmen come that they really get a sense of a workforce that has industrial roots, being an area sense of a workforce that has industrial roots, being an area that has been focused on industry for quite a while which that has been focused on industry for quite a while which is a hidden gem. Whatever investments a company may is a hidden gem. Whatever investments a company may make to train people; that investment is more protected here make to train people; that investment is more protected here because people tend to stay. Guaymas is a niche for high-tech because people tend to stay. Guaymas is a niche for high-tech machining companies and it has been our job to put this city on machining companies and it has been our job to put this city on the map, and we believe that we have done that.” the map, and we believe that we have done that.”

- Eduardo R. Saavedra, - Eduardo R. Saavedra, Executive Vice President, Business Development, Executive Vice President, Business Development, The Offshore Group The Offshore Group Image: St. Clair Technologies skilled operators making an engine harness. Image: St. Clair Technologies EDITORIAL Global Business Reports Global Business Reports EDITORIAL

area,” emphasized Bruno Ferrand, president and CEO of Latecoere IN RARE AIR International. “Best-cost areas mean the best location, talent, and eagerness to succeed, while a low-cost area immediately triggers a Sonora Powers negative perception.” Aerospace in Mexico One important way that Sonora allows companies to achieve cost gains is by having a stable workforce. Speaking to Minco Manu- facturing a Demmer Affiliate’s operations in Empalme, Rafael Re- galado, president of the company, noted, “There is a very competi- tive workforce in the area. The turnover of operating in Empalme in comparison to Tijuana or Nogales is less than 1%, while absen- teeism is around 1.5%. The Empalme facilities have the benefit of developing local personnel that usually do not want to leave, as they see they have the opportunity to develop their career by staying with their companies.” What would the Mexican aerospace industry be without the Sonora Another great benefit that many aerospace companies enjoy is that cluster? This is akin to asking what an aircraft would be without many customers are quite literally next door in the aerospace-engine its engine. The Sonora aerospace cluster, largely divided between hub in the cities of Guaymas and Empalme, located a short 10-min- Hermosillo, the capital, and Guaymas and Empalme, neighboring ute drive apart, created in large part thanks to the efforts of The cities to the south of Hermosillo, is filled with companies focused Offshore Group shelter. In this area, 15 out of 40 clients within the on precision machining or electromechanical assembly, while others shelter are spread over three industrial parks. The Offshore Group utilize highly sophisticated processes to change the physical proper- has been instrumental in the development of the aerospace industry ties of metal through heat-treating processes or other procedures. not only in Mexico, but specifically in Guaymas. This combination of capabilities makes Sonora the largest cluster of “In less than 60 days, St. Clair Technologies was fully operational precision-machining and engine-component companies in Mexico, and when running a business, the old adage of ‘time is money’ is serving major players such as Rolls-Royce, GE, Siemens, Honey- true,” said Hess of St. Clair Technologies. “The Offshore Group,” he well, and Pratt and Whitney. continued, “was a strategic partner from the very beginning. Its team has the expertise to bring in a business, get it set up, employ cor- rectly trained personnel and let the company focus on its core com- Image: Passenger Door mechanism check. Latecoere. Operational Benefits of Sonora petence. So the hiring of the people and the acquisition of the bricks were all managed for us. It is extremely beneficial to a smaller-sized, transferred has been, efficiency gains (reductions to manufacturing thermal spray, dry-film lubricant, VPA (vapor-phase aluminizing), Sonora is traditionally a mining state, but it has been recruiting for- privately-held company. It really makes a difference for me as presi- times, attributable to introducing lean principles) have more than heat treatment and brazing, full metallurgical laboratory and FPI lo- eign players to work in its aerospace sector. Apart from the pro- dent and CEO not to have to worry about the peripheral issues.” compensated for the logistics and inventory costs for transferring cally so that companies operating in Mexico can concentrate their business government that has been going the extra mile to attract product. In regard to the logistics solutions,” he continued, “we have operations in Mexico. “These are not new technologies to the in- foreign companies by, for example, establishing training centers been fortunate to work closely with The Offshore Group, develop- dustry, but they are new to Mexico, which is a game-changer in the such as the Sonora Institute for Aerospace and Advanced Manufac- Logistics Challenges ing a robust cross-docking process, which has enabled our consoli- Mexico aerospace community,” stated Eric Dolby, director of sales turing (SIAAM) in Hermosillo, the state has many intrinsic advan- dated California shipments to cross and arrive in Guaymas within and marketing. “Because of the technologies we have introduced, tages to offer. Though companies operating in Sonora are positive overall regard- two days of shipment date.” the industrial park offers aero engine original equipment manufac- A key competitive factor that Sonora enjoys is an excellent logistics ing the region’s attributes, no location is devoid of challenges. So- Latecoere, on the other hand, brought one of its long-time partners turers something that is not available in other regions of the world: and technology pipeline thanks to its proximity to the United States, nora is indeed close to Arizona, a key aerospace hub in the United to Mexico, which is conveniently located across the street, allowing a complete supply chain from raw material to finished part, all in specifically the Phoenix region. “Phoenix is a pretty active area States, but that does not negate the fact that operating in Mexico the company to receive the necessary components in short time. Fer- one location.” where there are always aerospace summits and seminars. Honeywell poses additional logistics challenges not seen on the other side of rand explained that, “As this industry picks up speed, we will have Latecoere is also innovating in Mexico, but through experimenting is there, and it loves the fact that we have an engineering and service the border. to strengthen our relationship with our suppliers in order to ensure with a new operational plant model. Octavio Baro, general manager center in Chandler, while still manufacturing in Sonora,” said Char- “As in all domestic businesses, inventory is one of the key elements outstanding performances control. […] This is the ‘Extended Enter- of Latecoere Mexico, explained: “If you were to ask us what the lie Hess, president and CEO of St. Clair Technologies. “Guaymas is of cost control,” said Paul Cappelli, director of program manage- prise’ concept. Once we use this technique to get a price-effective future looks like for manufacturing in the aerospace industry, the a great launching pad, as there are a number of highly experienced ment of Ducommun. “Doing offshore business creates another ele- model, we will therefore be able to acquire more business and cus- model that we are operating under in Mexico is what it will look people and companies that are doing aerospace-type business […] ment of expense in the amount of inventory required to compensate tomers by being more cost-efficient.” like. The plant manager is in charge of two different divisions. In- Through operating in Guaymas we [are] able to find qualified talent for the logistics flow of material getting to the production line and stead of a plant focusing on harnesses or solely on doors, our plant with previous experience, as well as being able to supply to major delivering to the customer.” has a number of different foci. It is an honor to be here in Mexico players both in Tucson and Phoenix.” In addition to inventory challenges, the developing area is just that, A Bright Future Ahead where this has been able to become a successful reality.” While location is a key consideration, regardless of whether com- still developing and not all supplies are readily available. Late- Seeing a country absorb a new industry is rare. Even more rare is panies are operating in a booming industry or not, cost is still king, coere’s Ferrand stated, “We want to do more assembly and com- While the cluster is still in its early stages, companies are betting the pace at which this is being done in Mexico and Sonora. The and Mexico has long been known for helping companies achieve ponents in Mexico. One issue was that the only suppliers around heavily on Sonora by making serious investments and bringing in- aerospace industry wholeheartedly believes Mexico is doing an ex- cost-efficiency gains. “Cost is a big factor. We have to be creative did not meet the needed requirements or did not have the quality of novative solutions to Mexico. cellent job, especially in Guaymas, the engine cluster. “The future in finding ways to cut costs, and Mexico is one of the ingredients. products that we look for. The few ones able to do it did not show A case in point is the work being done by Ellison Surface Tech- is very bright for aerospace manufacturing in Sonora,” concluded It is not everything, but it has been an important factor. We have the expected competitiveness.” nologies, which is commercializing a unique set of processes to the Cappelli. “For companies that have well engineered products and been very creative in challenging the design of some of our prod- Well aware of the obstacles they face, both companies have been country. As Mexican companies want to grow, produce, and process standardized processes, Mexico provides a great opportunity to be- ucts, but it comes to a point where we have to find the best-cost aggressive in resolving the issues that the region presented. Ducom- their goods solely from within the country, Ellison Surface Tech- come more competitive and provide greater value to their customers area, which, please keep in mind, is very different from a low-cost mun’s Cappelli stated, “Our experience on the products that we have nologies is helping them to do so at the Guaymas site by providing and stakeholders.” •

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companies who are considering investing in the region. We con- in Mexico seems like the clear natural step, but it is not being sider Guaymas to have the necessary foundations to support the taken nor there seems to be an intention to do so. Michael J. Smith & arrival of maintenance repair, and overhaul and tier-one compa- nies. Could you tell us a little about the university that The Off- Eduardo R. Saavedra The Offshore Group is looking for gaps in the value chain in order shore group is establishing? to go out and solicit the arrival of those suppliers to Mexico. Our ERS: There is not a university per se that is ours. There are many Guaymas suppliers are increasingly working together, as a com- universities that work as technical trade schools that are making munity, to add value to their manufactured products. Nonetheless, their way into the industry by preparing people with necessary most Mexican aerospace clusters are waiting for the full commit- skill sets. What The Offshore Group has done is found a train- ment of an OEM or a large tier-one company to disseminate their ing center full of machines and have carried out various train- MS: Director, Business Development needs into the supply chain and push for local players to compete ing courses there, proving to be successful at providing targeted ES: Executive Vice President, Business Development for its contracts. Special processing of hard metals remains So- training for specific companies. What perhaps is on the horizon is THE OFFSHORE GROUP nora’s Achilles heel in regards to the aerospace industry. doing more massive training seminars for an entire labor force. It can take up to 2,400 hours of training to operate some of these

MS What are the key strengths of the State of Sonora as a hub for machines. Doing more of these kinds of training seminars would the aerospace industry? distinguish us from other regions. MJS: The Sonora Economic Development team is very knowl- edgeable, proactive, and dynamic. The State of Sonora has been How would you evaluate the region of Guaymas in regards to labeled the gas-turbine engines capital and although that is not its safety in comparison to the locations of the other four aero- specialty, it does highlight the capabilities in the region. space clusters? ERS: The population in Guaymas is around 200,000 people, which Can you provide a brief overview and history of The Offshore What are the next major milestones The Offshore Group makes it considerably smaller than the other cluster locations, a Group, as well as any recent major milestones? hopes to achieve in the next five years? factor that definitely helps with the security situation. Safety, on MJS: The Offshore Group was founded in 1986 in Sonora, Mex- MJS: The Offshore Group wants to establish a strong presence in the business side, however, is always part of the equation. We ico. The beginnings of the company coincided with the growth Querétaro and offer its services to companies looking to enter the have secure access to our plants and constant surveillance and so- of maquiladoras in the country. While most of the maquiladoras Mexican aerospace industry. We will continue to offer the most phisticated cameras. Most people on the outside know that there were being set up along the border with the United States, our tailored solutions so that our clients can focus on their product are enough checks and balances that they would rather commit a founders saw more opportunity further south in Guaymas, So- ES and have successful and sustainable operations in Mexico. crime somewhere else where there is less security. Additionally, nora. Guaymas offered a stable and committed workforce. Today, The Offshore Group works closely with U.S. Customs and Bor- over 13,000 workers contribute to the success of The Offshore What are some additional tangible benefits for companies to der Protection to learn from them and teach them what we have Group. collaborate with The Offshore Group that you would like to learned so that we are not a target—or at least not an easy target. workforce. Mexico has one of the youngest workforces in the draw attention to? What products and services does your company offer the world, with an age average in the low 20s. In Guaymas, The Off- ERS: The Offshore Group has a substantial amount of services Where will most of the growth come from in the short-to- aerospace industry? shore Group is not subject to significant transient labor since most that are geared toward people, including an extensive human re- medium term? MJS: The Guaymas Cluster is the only cluster in the country of our workers want to remain in Guaymas. sources department that assists with payroll and all of the legali- ERS: Most of the growth that we have seen is coming from ex- formed without the initial presence of an original equipment man- ties that come forth when having employees. Additionally, we isting clients. As they win customers, they are able to continue ufacturer (OEM) or tier-one company. It evolved, in part, through What are some of the challenges aerospace players can expect provide transportation for our employees and have a very large growing. Clients of the Offshore Group are actually reporting that Rolls-Royce and its efforts to establish a supply chain in the state to encounter in Mexico? daycare center, which companies had previously mentioned as they need more buildings or more people. With regards to the of Sonora. In light of its involvement, Guaymas has the largest MJS: The Offshore Group provides the resources, but the culture an operational challenge for its workforce. The Offshore Group newcomer companies, their growth has been steady but relative- concentration of gas-turbine engine suppliers in Mexico. is that of the company establishing operations in the region. In helps our clients with the importation and exportation of goods ly low. This year so far, we have already had two organizations As a manufacturing service provider, we provide a low-risk and terms of corporate culture, companies cannot expect to have oper- across the border and to deal with the Mexican IRS. So, when that are interested in coming and setting up shop here. Business low-cost option for clients to establish a manufacturing presence ations the same way they have them in Canada, the United States, we approach an American, Canadian, or European company to is good, so that will trickle down and encourage more people to in Mexico. We provide facilities, human capital, and import-ex- or Europe. Academic and technical institutions in Mexico, such as come to Mexico, they typically already have Mexico, and Guay- come. port regulatory compliance services so our clients can focus sole- UNAQ and Tec de Monterrey, have created a vibrant talent pool mas specifically, on their radar. When they come see what we do ly on production. but this talent pool is still young and semi-skilled, or ‘skilled- on the ground, it speaks louder than a website or a brochure. Please provide a final message for GBR’s readers, the interna- We have seen incredible growth with all of our clients due to the trainable’. The aerospace industry is complex and the workforce tional aerospace community about Guaymas, Sonora. scalability that The Offshore Group offers. Our clients are able to needs to be nurtured so companies can see the fruits of their in- Have you seen the lack of OEMs as a factor that limits the ERS: Guaymas is a very enchanting place, which at times may grow with minimal risk and we adapt our services to the specific vestments in the coming years. success of the cluster? be ineffable. It is once businessmen come that they really get a needs of our client. Additionally, there is a strong sense of com- Mexico built its aerospace industry through Foreign Direct In- ERS: Right now there are no OEMs present in Guaymas, and en- sense of a workforce that has industrial roots, being an area that munity in Guaymas. Special processing and machining compa- vestment. Today, with foreign direct investment flows growing gine OEMs are not making complete engines here. As of now, has been focused on industry for quite a while which is a hidden nies in the cluster support the manufacturing needs of our clients. less rapidly, there is a great opportunity for local suppliers to en- there are no plans to bring a full-assembly operation to Mexico, gem. Whatever investments a company may make to train peo- When downturns occur in the aerospace market, we offer options ter the aerospace sector. Commitment is key to a successful entry so this is a factor that can limit the success of the cluster. Imagine ple; that investment is more protected here because people tend to scale down operations in a cost-effective manner. into the industry. if GE were assembling entire engines in Mexico. It would draw to stay. Guaymas is a niche for high-tech machining companies in even more levels of that supply chain into the country. Aero- and it has been our job to put this city on the map, and we believe What are the key strengths that you see in Mexico as a hub for What are some industry areas in which Sonora can still grow? space is a different industry in that it is a cautious one, very slow- that we have done that. The Offshore Group is the largest private the global aerospace industry? MJS: Sonora would benefit from a machining cluster. Moreover, moving and sensitive to the marketplace. They have a backlog of employer in the state of Sonora that contributes directly to the MJS: As demonstrated by our workers in Guaymas, Mexico The Offshore Group is committed to the growth and development thousands of planes that need to be made, yet only build a few of well-being of the community employing around 13,000 people in counts with the availability of an eager, talented, and trainable of Hermosillo as an aerospace city. We will work with tier-one them every year, so the development of airplane assembly plants this small city. •

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What opportunities did you see in open- ing lean principles) have more than com- room for improvement. St. Clair Tech- erational and when running a business, Paul ing a facility in Guaymas that would al- pensated for the logistics and inventory nologies is trying to penetrate the market the old adage of ‘time is money’ is true. low you to better serve your clients? costs for transferring product. In regards to through innovative solutions and products. The Offshore Group was a strategic part- Cappelli The clearest benefit was the cost savings the logistics solutions, we have been for- To give an example, there are harnesses ner from the beginning. Their team has the that manufacturing in Mexico would af- tunate to work closely with The Offshore in the cockpit of an airplane that have the expertise to bring in a business, get them ford us. When we were performing our Group, developing a robust, cross-docking same temperature rating of 175°C as the set up, employ correctly trained person- due diligence, a couple important features process, which has enabled our consolidat- harnesses on the engine. Imagine what nel, and let the company focus on its core ultimately brought us to Guaymas. Guay- ed California shipments to cross and arrive could be happening in an airplane if the competence. The hiring of the people and Director, Program Management mas is a well-established town, steeped in in Guaymas within two days of shipment cockpit was undergoing 175°C phenom- the acquisition of the bricks were all man- DUCOMMUN INC. stable family life and family values, with a date. ena as the protocol states—it just does aged for us. It is extremely beneficial to a reputation for its hard-working and dedi- One of the start-up challenges was finding not happen, whereas if a harness in the smaller-sized, privately held company. As cated people. That was one of the key fac- local technical talent in engineering, man- cockpit is built with a 100°C rating, it the president and CEO, I did not have to tors in the selection of Guaymas as our ufacturing and quality. It was a time when could change things on a weight and cost worry about these peripheral issues. offshore manufacturing site. As a result aerospace was new to the State of Sonora. perspective for the manufacturer. For the of the selection of Guaymas, we have ex- That is less of an issue today. The State of aviation industry, if some weight can be re- How has operating in Guaymas helped perienced a less-than-2%, year-over-year, Sonora has aggressively pursued the aero- moved from the harness, it becomes more you develop in the aerospace industry? personnel-turnover rate, which has been space sector and has supported advanced interesting from an attractive sales cost be- Sonora represents an excellent pipeline Can you provide us with a brief intro- of great benefit to our consistent quality of technical training as one of their key ob- cause the fuel saving over its lifecycle is because of its proximity to the Phoenix duction to Ducommun and its work in product. jectives. Charlie exponential. region, which is where St. Clair Tech- Mexico? nologies is focusing its marketing efforts Ducommun is a publicly held company While there are clear advantages to Please provide a final message for Hess Why is there such a close relationship given. Phoenix is an active area with many on the New York Stock Exchange (DCO) working in Guaymas as you mentioned, GBR’s readers, the international aero- between automotive-part manufactur- aerospace summits and seminars. Hon- that was established during the California what are some of the challenges that Du- space community. ers and aerospace? eywell is there, and it loves the fact that gold rush in 1849 and is the oldest, con- commun faces? For companies that have well engineered In the automotive, truck, and bus markets we have an engineering and service center tinuously operating corporation in Cali- As in all domestic businesses, inventory products and standardized processes, one can obtain new customers fairly quick- in Chandler, while still manufacturing in President & CEO fornia. Originally focused on mining, the is one of the key elements of cost con- Mexico provides a great opportunity to be- ly, while the aerospace industry moves Guaymas, Sonora, Mexico. Guaymas is a company later transitioned into becoming trol. Doing offshore business creates an- come more competitive and provide great- ST. CLAIR TECHNOLOGIES much slower. Aerospace requires a very great launching pad, as there are a number one of the major aerospace metal suppliers other element of expense in the amount er value to their customers and stakehold- mature relationship to advance in terms of of highly experienced people and compa- during the California aerospace boom, and of inventory required to compensate for ers. The future is very bright for aerospace obtaining opportunities, as there are many nies that are doing aerospace-type busi- eventually evolved into one of the premier the logistics flow of material getting to manufacturing in Sonora. Thus far, it has long-term agreements for projects. The ness. We thought it was a natural move for aerospace providers of both electronic and the production line and delivering to the been a great experience for Ducommun, aerospace industry, however, is ready for us to take the high-quality standards from structural solutions for a wide array of cus- customer. Our experience on the products and we are looking forward to growing some change; the supply chain is actively automotive and apply them to aerospace. tomers. that we have transferred has been that effi- our current customer base, providing them looking to reduce pricing while being in- Through operating in Guaymas, we can The facility in Guaymas was established ciency gains (reductions to manufacturing with the same excellent service for which novative as well through its suppliers. find qualified talent with previous experi- in 2007 and was specifically developed to times, which are attributable to introduc- we have become known. • Can you provide us with a brief intro- Discussion is taking place with regards to ence and can supply to major players both allow Ducommun to gain a competitive duction to and history of St. Clair Tech- using automotive suppliers to sell into the in Tucson and Phoenix. Finally, we have edge in the global aerospace market. Our nologies? aviation and aerospace industry, given that done a lot of defense and military work in facility provides lower total cost labor for St. Clair Technologies started in 1951 and our quality standards have basically come the past, which allows for a smooth transi- Ducommun business units; including post- is a producer of electrical systems, rang- to a level of a zero-defect product. If one tion. bond machining, paint and final assembly ing from low-volume, high-complexity to were to compare an aerospace wire har- The goal of St. Clair Technologies is to of Boeing 737 and 777 products for the very ultra-high volume and, in some cases, ness that goes into a Rolls Royce engine grow and have aerospace make up 10% Bonded Component Solutions business lower complexity. We started out exclu- versus an automotive wire harness for a to 15% of our portfolio. We are taking unit located in Monrovia, California. Ad- sively in Ontario, Canada producing for Ford engine, it might be close to impossi- critical steps by getting involved with the ditionally, the Guaymas facility provides the automotive industry, but began oper- ble to tell them apart: the same connectors Phoenix-based organizations like Greater sheet metal fabrication, machining, chemi- ating in Empalme 20 years ago. St. Clair and wires are assembled by hand, with po- Phoenix Economic Council as well as the cal processing, mechanical assembly and Technologies has grown the business in tentially more robust features on the aero- Canadian-Arizona Business Council, who wire harness assembly for several of the Guaymas to the point that we have now al- space product. As such, most of the aero- have very good, existing connections. This other Ducommun business units. The fa- most 1,000 direct employees manufactur- space components are made and sourced is helping us to get the warm introductions cility is AS 9100 Rev. C-certified and has ing wire harnesses. in the United States or Europe, but most with the aerospace players, because once several NADCAP accreditations. innovation comes from the United States. we have one foot in the door, we are confi- The facility has gained a good reputation “Innovative solutions for electrical sys- dent in our products and services. We just for the quality and on-time delivery per- tems” is the mission statement of St. What role has working with the Off- need that opportunity from a like-minded formance that has been sustained over the Clair Technologies. Can you tell us what shore Group played in the success of St. company that sees value in our local pres- last several years. Our Guaymas facility opportunities you are seeing in aero- Clair Technologies? ence and cost-effective offerings. • has maintained a five-year, 100% quality space with regards to innovation? St. Clair Technologies came to Sonora in and on-time delivery for a major customer, In aerospace, there is over-engineering July of 1996 and shipped its first part in which has led to the awarding of a long- everywhere, which is a great thing from a September of that year; in less than 60 term contract. safety perspective, but there is significant days, St. Clair Technologies was fully op-

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Could you explain more about the tech- Most organizations in the region dedicate not everything. We have been very creative able to receive components from them and nology that Ellison has developed that themselves to rough machining and source in challenging the design of some of our they will be in very close proximity. As has never been seen before in Mexico? further processing or treatments to the products, but there comes a point where this industry picks up speed, we will have ED: Ellison is commercializing a unique United States. Ellison Surface Technolo- we have to find the best-cost area, which is to strengthen our relationship with suppli- set of processes in our Guaymas, Mexico gies is providing the coating and treatment very different than a low-cost area. Best- ers in order to ensure outstanding perfor-

EP facility. The site already has in place ther- processes in country, which is drastically BF cost areas mean the best location, talent, mances control. We will be able to work mal spray, dry-film lubricant, vapor phase reducing the supply chain lifecycle. This and eagerness to succeed, while a low-cost together everyday and, if there is a prob- aluminizing, heat treatment and brazing, will enable steady growth, as record aero- area immediately triggers a negative per- lem or shortage, we can cross the street full metallurgical laboratory and FPI. space backlogs put greater emphasis on re- ception. The product that we were target- and fix the issue. This is the ‘extended en- Additional processes are being consid- duced lead times. ing when we decided to open operations in terprise’ concept. Once we use this tech- ered based on market demands. These are Traditionally, components coming from Mexico was the doors for the Boeing 787. nique to get a price-effective model, we not new technologies to the industry, but Mexico for processing will cover thou- It is the most high-engineered item in this will acquire more business and customers ED they are new to Mexico, which is a game- sands of miles over many weeks to go OB range of products. by being more cost-efficient. changer in the Mexico aerospace commu- through post-processing, coating and fin- OB: If you asked us what the future looks OB: We are focused on beating cost, time, nity. We are pleased to be located in the ishing. The real value in Ellison’s opera- like for manufacturing in the aerospace and workforce efficiency. It is a challenge Roca Fuerte Industrial Park in Guaymas, tion in Mexico is the impact on turn time industry, the model that we are operating to take care of these three factors, especial- Erick Passalacqua a constantly growing center for aerospace and delivery. We are there because the Bruno Ferrand & under in Mexico would be our answer. The ly since we are new. This is risky because manufacturing. Because of the technolo- industry demands speed, so locating near plant manager is in charge of two different being here and trying to get suppliers pres- & Eric Dolby gies we have introduced, the industrial customers is critical. We have seen the Octavio Baro divisions. Instead of a plant focusing on ents resistance so we need to ask what our park offers aero engine original equipment impact of this model in our U.S. and Ca- harnesses or solely on doors, our plant has strategy is whether we stay with those who manufacturers (OEMs) something not nadian facilities as well. In Mexico, what a number of different foci. It is an honor to are around us or begin to take matters into available in other regions of the world – a used to take 10 to 12 weeks can now be be in Mexico where this has been able to our own hands. complete supply chain from raw material achieved in two weeks or fewer by bring- become a successful reality. to finished part, all in one location. ing multiple processes under one roof and Where do you see growth coming from close to our customers. This allows for You say that Mexico was the best-cost and what are your strategies to keep BF: President and CEO EP: Director of International Business How is Mexico adapting to the new pro- a significant paradigm shift in sourcing location, but why Sonora? growing? ED: Director of Sales and Marketing cesses and technologies that are now strategy. LATECOERE BF: We looked at the aerospace footprint BF: We also know that we need to con- ELLISON SURFACE available? INTERNATIONAL INC. in Mexico. I was impressed with Queré- tinue to be more aggressive, especially TECHNOLOGIES EP: We are extremely happy with the en- What are your key priorities and stra- OB: General Manager taro, but there are a lot of big players there when it comes to getting more business in thusiasm and efforts from the partnerships tegic plans for the next three-to-five LATECOERE MEXICO and there was already a plant with a wiring North America. We are currently working that we have developed in Mexico. The years? shopfloor and another company building to increase and develop our business, and local, state and federal leaderships under- ED: Ellison is currently focused on a se- doors. We did not want to be somewhere Mexico is helping us a lot. Customers who stand the value of our capabilities and have ries of new product introductions with key where we would have to fight for people or know about our production in Mexico also been very supportive. In addition, we were relationships. These projects represent having problems with workforce availabil- know about the crew, quality, and trust pleased to find a highly skilled labor force. both aerospace and power-generation plat- ity. Also, Querétaro has a higher cost asso- that they can have. This is especially true Can you give a brief introduction to In every aspect, Mexican workers have ex- forms. Our facility in Guaymas, Mexico Can you give a brief introduction to ciated with it. Safety was another big fac- with Boeing. They were cautious from the Ellison Surface Technologies and what ceeded our expectations and have excelled offers a significant opportunity for diver- Latecoere and your operations in Mex- tor for our employees. We wanted to make beginning because they could not imag- you offer to the aerospace industry? through the training process and achieved sification of business both within the op- ico? sure that we did not choose a place famous ine what was going to happen when we ED: Ellison Surface Technologies was approval as certified operators. We are eration and across the organization. As the for unrest. The willingness of the govern- moved production from France to Mexico, founded in 1986, offering special-process pleased to be investing in the growth of the supply chain matures, many organizations BF: In 2017, Latecoere will be celebrating ment to set and develop aerospace in Her- but they saw that we succeeded. They have technologies to the aerospace industry, local community through offering techni- across multiple industries will leverage the the 100th anniversary of its founding. We mosillo was also an important factor. They been available and involved in every step which today makes up approximately 70% cal jobs. The goal now is to work in con- value and expertise of Mexico’s supply are made up of 5,000 people who are dedi- were very efficient and supportive in many of the way from day one. When we were of its business. We have operations in sev- junction with the government of Sonora chain. Ellison is intentionally focused on cated to three divisions: aerostructures, manners in many areas, specifically with building our facility, when we installed our en locations throughout the United States, to ensure that the state is continually im- listening to these OEMs and making sure connecting systems (wire bundles, elec- establishing an aerospace training facility equipment, when we kicked off produc- Canada, and Mexico. The company main- proving the labor force and manufacturing that it invests in technology and expertise tronic bays and video systems), and ser- (SIAAM) very quickly. tion, they saw the progress. Now, we are ly deals with coating and surface treatment technology, ultimately elevating Mexico’s that will bring sustained growth to the vices (engineering and tooling). Latecoere one of their favorite facilities. • applications on aero engine, structural and ability to compete globally. company and the region. is not only a manufacturer, but functions What challenges are unique to Mexico landing gear components. These types of EP: We will also continue to develop our as a design + manufacturing company. The and how can they be solved? coatings exhibit a variety of functional Looking towards the future, where do employees and give them opportunities to operation in Mexico is the only location in BF: We want to do more assembly and uses from thermal protection to wear, ero- you expect the main source of growth to advance their skillset and certifications. the world where Latecoere operates two components in Mexico. One issue was sion and corrosion protection, all extend- come from? Ellison has a strong desire to bring pros- divisions at one location, under the same that the only suppliers around did not meet ing the life and enhancing the performance ED: In Guaymas, there are a broad mix of perity and advancement to the local com- roof, with a single management team. the needed requirements or did not have of the components they are applied to. Ad- companies originating from within Mex- munity in Guaymas. • the quality of products that we were look- ditionally, Ellison Surface Technologies ico, the United States, and Europe. The Why did Latecoere choose Mexico as a ing for. The few ones able to do it did not has invested significantly in recent years to presence of special-process capabilities is location? show the expected competitiveness. To offer supporting processes like heat treat- changing the dynamic of the aerospace in- BF: Cost is a big factor. We have to be resolve this, we brought one of our long- ment, lubricant coatings and advanced lab- dustry and how global organizations view creative in finding ways to cut costs, and time partners to Mexico, who are actually oratory and inspection capability. the prospects of doing business in Mexico. Mexico is one of the ingredients, but it is to be located across the street. We will be

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LA LAGUNA: THE CREATION OF A NEEDED HUB OF LOCAL PLAYERS

‘‘Locals say ‘we defeated the desert’, and it is true, the climate has forged these strong businessmen; the environment has not given any other choice. They are always over-achieving.”

- Martha Elvia Meza Meléndez, Director, ProMéxico Coahuila Image: Equipos Inoxidables del Norte SA de CV, ACV Group Image: Equipos Inoxidables del Norte SA de CV, EDITORIAL Global Business Reports Global Business Reports EDITORIAL

taken in regards to the aerospace transition, as most members have We have already shown that we can provide quality IMMENSE or will obtain their AS9100 certification in 2016. The desire to be equal to any country in the world and we have the involved in aerospace specifically responds to a targeted push from capacity to acquire high-tech equipment; that just needs POTENTIAL government, with support and guidance being provided accordingly. to be translated into aerospace… By 2019, Coahuila “I have very high expectations of what successes the La Laguna should be an important aerospace manufacturing La Laguna’s Pioneering region can achieve if all private sector entities and the government platform, much like other aerospace hub states. collaborate with the common goal of developing the aerospace in- Aerospace Cluster dustry further,” noted Alfonso Cabello Guerrero, business developer and vice president of ACV Group, a family-owned company estab- - Alejandro Cabello, lished 46 years ago that is focused on value-added processes for Managing Director, various metals and is specialized in welding. Intelligent Sourcing Solutions High expectations directly correlate with the growth and expansion plans for these companies. Kirbymex is extending its plant by 3,000 square meters to add a machining center; Kimball Solutions has a Chihuahua Among the fastest growing conurbations in Mexico, the northern- brand new testing and inspection laboratory; Intelligent Sourcing central region of La Laguna has a footprint that crosses both Coa- Solutions plans to add four- and five-axis machines and a metrology huila and Durango states. The three cities that comprise the majority laboratory to its repertoire. These expansions are all in preparation of its contents are Torreón, Gómez Palacio, and Lerdo, which com- for aerospace client development. “International B&S has been pre- COHAUILA bined boast a population of just over 1 million. Though aerospace paring its operations and employees for the aerospace sector for over has not yet solidified a renowned presence in La Laguna, there are two years so as to go above and beyond requirements,” explained a handful of local, dedicated companies that are working to break José Luis Benitez, general director and founder of Industrial B&S into the industry and fill some of the many gaps in the supply chain. de México, which utilizes laser cutting, plasma cutting, turning and The impressiveness of La Laguna lies in how successful these enti- milling for small to medium pieces. LA LAGUNA ties have become without the boost of foreign funding. All but one Habilitaciones y Servicios Industriales (HASEIN), a family-owned member of the newly forming aerospace cluster represents a trans- company founded in 1977, is one of the only cluster members pres- Gómez generational, family-owned company. This concentration of locally ently servicing the industry, manufacturing approximately 150 dif- Palacio Monterrey grown businesses that are in tune with the national industry roadmap ferent aerospace parts. “Just two years ago, we moved to a new facil- Torreón Ciudad Saltillo cannot be found in any other part of Mexico. Most of them have ity which encompasses all of the computer numerical control (CNC) Lerdo evolved from owning a single machine into becoming a supplier for machines that are required to meet the aerospace industry’s needs… DURANGO world-class companies across industries, including agricultural, en- HASEIN has a team of experts in logistics as well as extremely re- ergy, medical devices, and more. Concrete steps have already been liable raw material suppliers,” explained Jaime Carrera, managing director of HASEIN. “This is key for the aerospace industry, and it Durango is something La Laguna region has targeted as a necessary means of improvement.” Within La Laguna, one can find a variety of processes, attributed to the high level of vertical integration and low-volume, high-mix model of the established facilities—CNC machining, anodizing and chemical processing, HD plasma and laser cutting, bending, rolling, welding and liquid or powder painting, destructive and non-destruc- tive testing, assembly, etc. Kimball Solutions, a FEMIA member and family-run business since 1966, has heavily invested in its abil- ity to supply a majority of the above. “Kimball Solutions would like to offer the aerospace industry as much as we can, but we want to be experts in a process before we offer it as a service to our customers. We can start supplying machine parts…as we have multiple two- axis and three-axis CNC machines, break presses capable of sup- The facility employs over 6,000 people and has been described as in aerospace. The eight pioneering companies—all of whom are in- porting 200 tons, and a FARO machine,” explained Arturo Dueñes, a small city within Lerdo City. Fully capable of all necessary means terviewed in the following chapter—exhibit unified devotion, which general director of Kimball Solutions. of self-investment, Ropa Siete Leguas has a research team working translates into immense potential; however, to ensure the success One of the most interesting additions to the gamut of aerospace to strategize its aerospace accreditation and preparation movements. of their efforts, more companies need to subscribe to their mission. companies is Ropa Siete Leguas, the entirely Mexican, high-fashion “When Marcos says he is breaking into a new industry there is no There is power in numbers and value in cohesion when attempt- jeans manufacturer for American and European brand designers. doubt that he will accomplish it,” said Martha Elvia Meza Melén- ing to attract OEM and maintenance, repair and overhaul attention Similar to Chihuahua’s success story of SOISA Aerospace, Ropa dez, director of ProMéxico for Coahuila, “He is a strong business- and the small cluster is well aware that it still has a lot to prove. Siete Leguas hopes to apply its textile talent to aircraft interiors and man with impressive foresight. Locals say ‘We defeated the desert’, “We have already shown that we can provide quality equal to any seats. “If you look at an airplane, there are stitches everywhere,” and it is true, the climate has forged these strong businessmen; the country in the world and we have the capacity to acquire high-tech explained Jose Juan Marcos González, CEO and son of the founder environment has not given any other choice. They are always over- equipment; that just needs to be translated into aerospace…By 2019, of Ropa Siete Leguas. “With our sewing capacity and lean-manu- achieving.” Coahuila should be an important aerospace manufacturing platform, facturing procedures, we can become a more efficient and reliable Advantageously located and a historically attractive maquiladora much like other aerospace hub states,” posits Alejandro Cabello, supplier to aerospace customers.” destination, La Laguna has a strong foundation on which to build managing director of Intelligent Sourcing Solutions. • Image: HASEIN

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deep draw, conventional machining, computer ordinates system, which ensure that client responded to international sales. What are some of the challenges of work- numerical control (CNC) machining, wood, specifications are perfectly satisfied.- Alu The growth strategy for PSB INDUSTRIES is ing in both the automotive and aerospace and metal mechanical, among others. minum parts are sent to an external supplier to achieve a turnover of 600 million Euros by industries? for finishing, including anodization. Once we 2020. The automotive industry involves high vol- What certifications were necessary for get the parts back, they are tested and certi- umes, compared to mix of volume of aero- HASEIN to be able to work with its inter- How important is the aerospace industry to JC fied for quality, before they are shipped to the space. Operations in the two sectors are national aerospace clientele? customer. Deltaplast’s operations? different, and Deltaplast tries to be price-com- HASEIN had to be ISO 9001:2008- and The aerospace industry represents about 20% petitive by strategically assigning the right AS9100-certified. The company has been How have technological and machining ad- of Deltaplast’s business. The automotive in- resources. The management and cycle of pro- working under ISO for 14 years and four years vancements improved the productivity of dustry is still our biggest division and contrib- duction differs in the two different sectors, and

with AS9100. HASEIN’s operations? GD utes 60% to 65% of our operations. We expect thus we have two separate the process of pro- HASEIN began by merely working with con- to grow significantly, with 30% in the - aero duction. The aerospace industry utilizes more ZC What is HASEIN’s current and intended ventional machining equipment. To expand space industry over the next two years, and technical parts, and the raw materials used are involvement in the aerospace industry? our services, we incorporated CNC equip- are aiming for a steady balance between the different. HASEIN currently supplies approximately ment. This optimized production and effi- aerospace, automotive, and medical-devices 150 different parts for Rockwell Collins, but ciency, as we could manufacture more parts industries. What are some of the strengths that La La- Jaime Carrera & is in the process of expanding its client base. per minute. These kind of advancements have Gerard Didienne guna offers to potential investors? At the moment, HASEIN’s aerospace manu- been critical for our success, which is why we Deltaplast does contract-injection molding. The human resources available in the area Zaide Carrera facturing constitutes for about 35% of total keep an open mind and progressive attitude to- & Javier Garcia What is the scope of the capabilities that have a high level of education, as there are production. We are aiming for this percentage wards technology. Deltaplast is able to offer to the aerospace many strong universities. The workforce is to grow to 50% of our overall output. industry? dedicated and trustworthy, and the employee How will the aerospace industry in Coahui- Deltaplast produces thermoplastic parts, but turnover is low. The government is focused How available is machining, plastics injec- la evolve over the coming years? through the partnership with Radiall, we are on developing all sectors and offers support tion, metal work, etc. in La Laguna? Are We have great confidence that Coahuila will focusing on connectors used in Boeing and to potential companies looking to enter aero- there plans for expanding your offerings? have significant development in the coming Airbus aircraft. The connectors are assembled space. In terms of logistics, transportation of JC: CEO We know there are 10 companies certified that years. I have seen the interest of other compa- GD: Plant Manager on the aircraft and are used for all electrical raw materials and supply chain costs, Coahui- ZC: Director of Sales JG: Commercial Manager offer their services to the aerospace industry, nies, which are already seeking certification to connections on the planes. Deltaplast supplies la is economical compared to other regions. DELTAPLAST MEXICO HABILITACIONES Y SERVICIOS seven of which are located in Torreon, and participate in the aerospace industry as suppli- the plastic parts, and Radiall is responsible for Index has a target to grow the Mexican aero- INDUSTRIALES (HASEIN) HASEIN is one of them. ers. The government and organizations such as the rest of the process. Our aim is to diver- space industry so that it can produce every HASEIN hopes to continue expanding steadi- ProMéxico are incredibly supportive, which sify our market and evaluate any new potential component inside an aircraft, but more suppli- ly, possibility opening another plant in the is why I have no doubts that in the next few aerospace partnerships. ers are needed. United State or in another state of Mexico. years, Coahuila will become one of the most With the continued support of the local gov- developed entities of local suppliers. Can you elaborate on Deltaplast’s Mexico What goals would Deltaplast like to achieve ernment as well as organizations like Pro- facility and any attained certifications? over the next five years? México, we are confident that HASEIN will Would you say there is a sufficient enough Can you provide a brief background to Del- The facility is 4,000 square meters. Currently Deltaplast has already doubled its sales in Can you provide a brief history of HASEIN continue developing. pool of talent from which HASEIN can pull taplast explaining its operations in Mexico? we have 33 presses ranging from 50 tons to only two years, and expects to again double its and its operations in Mexico? Just two years ago, the company moved to a employees? Deltaplast started as part of the French indus- 350 tons. Deltaplast is planning to grow and sales in 2017. The company wants to acquire Habilitaciones y Servicios Industriales’s new facility which houses all of the CNC ma- No. In fact, our main challenge is finding trial group, Plastibell, which was established expand its operations into other regions of more presses, and is finding it necessary to (HASEIN) founder, Jaime Carrera, started chines that required to meet the aerospace in- qualified technicians. Even those that are the in France in 1971. Deltaplast began operations Mexico. Radiall, which is our main customer start expanding its facilities and move closer providing carpentry services in 1977 and sub- dustry’s needs. In this plant, HASEIN has the most prepared still lack significant knowledge. in Mexico in 1999, as Thompson Electric for aerospace parts, is already operating in So- to its customers. We are eager to further de- sequently expanded into production process- space to grow production capacity by 40%, Most employees arrive with about 30% prepa- Televisions requested Plastibell’s presence in nora and successfully pushed for us to move velop our customer base in the aerospace in- es for metals and plastics. HASEIN has now and is constantly analyzing opportunities for ration completed, and HASEIN finishes the Torreon. closer to them. dustry. been a manufacturing supplier in the medical equipment additions and new technologies to necessary training. La Laguna needs clearer Deltaplast began supplying for the aerospace Deltaplast has an investment to establish a Deltaplast’s expansion strategy is to purchase industry and the aerospace industry for the optimize its processes. dialogue between the universities and the sec- industry in 2009, when a long-term business new facility there that will help it to consoli- an existing company or, if we are growing, we past 11 years with GE Healthcare, and for the tor’s actual needs. relationship with the aerospace company Ra- date its 2020 vision. In 2015, we had a turn- can rent a building. We want to grow in aero- past five years with Rockwell Collins, achiev- On-time delivery is critical for manufactur- diall was formed. over of $12 million, which grew to $16 mil- space, but also in the medical-devices and au- ing the appropriate certifications along the ers’ productivity. How is HASEIN able to Do you have a final message? On March 2015, PSB Industries acquired lion in 2016 and is projected to be $24 million tomotive sectors. way: ISO 9001:2008, AS9100 and the Clean ensure that delays are avoided? HASEIN has 40 years of experience. Thanks Plastibell Group, which positioned the compa- in 2017. For 2020, the aim is to have a turn- Industry certification. HASEIN has a team of experts in logistics, as to the quality of its products and services, it is ny as a major player in plastics for the health- over of about $50 million. To achieve this, ex- Do you have a final message? well as extremely reliable raw material sup- now one of the most important suppliers in the care, automotive, aerospace and industrial pansion is practically required. Deltaplast has a positive feeling about the Dedicated to manufacturing, can you ex- pliers. This is key for the aerospace industry, region. We want to reassure our commitment markets, complemented the Texen and CGL Over the years, Deltaplast has obtained the in- aerospace market in Mexico, and there are plain the diversity and size of your product/ and is something that the La Laguna region to our clients and thank them for the oppor- Pack brands, and contributed to the combined ternational standards ISO9001, TS16949, ISO still ample opportunities for growth. Mexico service offerings? has targeted as a necessary means of improve- tunity and trust that they have instilled in us. strength of both groups in having a global 13485 and AS9100. With years of experience is prepared for the transfer of operations as HASEIN manufactures products for a vari- ment. It is important to have additional and better presence in the automotive industry, Deltaplast has a many companies already have the structure ety of industries, including mining, medical, sources of jobs in Mexico, and HASEIN is do- PSB INDUSTRIES Group with production successful transition from TS16949 certifica- to start operating. Deltaplast aims to improve aerospace, food and beverage, industrial pack- Can you describe both HASEIN’s inspec- ing its part to accomplish that goal. We want plants in France, United States, Japan, Poland tion to AS9100, and was the first company in year-on-year to meet the industry’s demands, aging and machinery, and product-design. tion and testing measurements? our company, region, and country to be seen as and Mexico reported consolidated revenues of Mexico to produce plastic parts with this cer- which could mean consolidating a partnership HASEIN offers injection and blow molding, HASEIN uses scanning processes and a co- qualified suppliers for companies worldwide. • 262 million Euros in 2014, 60% of which cor- tification. as part of its growth strategy. •

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fications. Currently, ACV has a team of 500 The expectation is to invest $7 million to Industrial B&S obtained AS9100 certifica- ers should be trained for the specialized re- employees fabricating enclosures, machined $10 million in 2017. ACV aims to acquire tion in 2015 in preparation for operations quirements of the industry. Academic insti- bases, insulated ducts, train components, co-investors for 2018 and achieve a level of within the aerospace industry. Our clients tutions are looking for innovative projects, parts for trucks, tanks, skids, grids and cabi- $25 million to $30 million of investment. We mainly operate in the construction, electric and we are working to create relationships nets. We are focused on the oil and gas, water have a facility of 1 million square feet, of motors, and mining industries, and the oil with the industries. As the aerospace indus- treatment, energy, chemical, transport, and which only 35% is currently being used for and gas segment is currently small. We do try needs specialized capabilities, collabora- medical sectors, shipping mainly to United production. The goal is to expand our opera- not have any clients in the aerospace indus- tively working with academic institutions is States and Europe. We are in the process of tions in the facility and install new processes try, as we are still preparing and testing our a necessity for aerospace growth. transitioning our capabilities into the aero- and laboratories to meet the demands of the systems before we offer our capacity. space sector through AS9100 certification aerospace industry. We want the aerospace Can you elaborate on the current capa- and process specialization and segregation. industry to contribute 25% to 30% to our op- Breaking into the aerospace industry can bilities of Industrial B&S’s facility, and erations within the first three years. be challenging in terms of international will the company be able to keep up with Can you explain the diversity and size of standards, and big companies are looking the requirements of aerospace compa- your product and service offerings as well How is ACV going to transfer specific skills for manufacturers with experience. What nies? as the processes that ACV expects to trans- that are needed for operating machines? is Industrial B&S’s strategy for making a Since the establishment of Industrial B&S, fer into the aerospace realm? How have technological advancements in transition into the aerospace sector? we have invested in equipment that has both ACV manufactures a wide range of products machining improved the productivity of Industrial B&S’s strategy is to show inter- the capacity to produce precision compo- in different sizes, volumes, complexity and current operations? national customers that we are prepared. nents and is very easy to program—mainly Alfonso type of materials; from small production-line New technologies surely improve production José Luis Through delivering the best products and Mazak machines. For more complex com- products, to large and heavy fabs, and sev- times. ACV is always looking to improve and services to our current clients, we can show- ponents, we have invested in Cad-Cam soft- Cabello Guerrero eral part assemblies, all of them with high is constantly searching for new technologies Benítez case our capabilities. We can comply with ware which will help us to have much bet- value added. We also offer services such as to help it be more efficient for its clients. Our the specifications, demands, and require- ter programs for part development. We have HD plasma and laser cutting, bending, roll- production control team develops the plans Rodríguez ments of our customers, which can add equipment of various axis’, with different ing, machining, certified welding and liquid to achieve 100% on-time deliveries, and our value to their products. Industrial B&S has capacities and speeds and for different ma- painting and international trade skills. These continuous improvements team works to been preparing its operations and employees terials. Industrial B&S has experience with Business Development VP General Director services can either be internal, for our own make processes faster. for the aerospace sector for over two years components from different sizes, tolerances EQUIPOS INOXIDABLES DEL production, or external, for client projects. With regards to the aerospace industry, our INDUSTRIAL B&S DE MÉXICO as to go above and beyond requirements. and materials. NORTE SA DE CV, ACV GROUP With regards to the aerospace industry, the machining and welding processes will be au- In the Laguna region, the adaptability of our aim is to add capabilities such as automation tomated to improve efficiency. ACV’s human Can you talk about the collaboration and capabilities is unique to our facility. We can processes for welding, a certified laboratory capital will be responsible for assemblies formation of the Laguna region cluster? support a high-mix, low-volume demand for DT and NDT, and computerized powder of electronics and hydraulics and NDT pro- The difference between Laguna and other and can monitor where in the process our painting. cesses. The company will internally train its regions in Mexico is that Laguna is mainly components are and what is our capacity employees to be self-sufficient in the produc- formed by local industries. Laguna is a nat- used. By monitoring our processes, we can What certifications correspond with this tion processes, testing processes and comply- ural cluster; the members of the industries deliver our products on time to our custom- Can you provide a brief history of Equi- work? ing with and the maintaining of certifications. Can you provide a brief history of Indus- know each other very well. The local com- ers. Industrial B&S focuses only on our spe- pos Inoxidables del Norte’s presence in We are certified based on many international ACV has three training academies where it trial B&S and its operations in Mexico? panies have been in the region for years and cialized machining services. With regards to Mexico? standards such as ISO9001 and ISO14000, aims to educate at least 100 employees at Industrial B&S was founded in 1999, with are still operating here and trying to attract services such as assembly and painting, we Equipos Inoxidables del Norte, ACV Group ASME and AWS. We expect to obtain the same time to create better human capital a focus on manufacturing components for more offers from outside the region. Our are looking for specialized suppliers as to be (ACV) is a family-owned company that was AS9100 in June 2016. within our business. construction equipment. We identified a products are not sold within the region, but our partners. There are many companies in established 46 years ago. The core focus of ACV has received significant support from need in the market and diversified our capa- rather sent to other parts of the country. The the region that we can partner with to supply the business was fabrication of stainless steel ProMéxico to obtain certifications. ProMéxi- What processes and services does ACV of- bilities to offer oxy fuel, plasma and laser- Laguna cluster will be a reference for other to our demands. tanks and piping for the water and oil indus- co is also inviting us to events in order to ob- fer that are not available in other facilities cutting services to supply parts for machin- clusters, as we share a significant amount of tries. After 20 years, we started to enter the tain information, international shows, feed- in the region? ing. The business grew significantly over knowledge and greatly support each other to Do you have a final message for the inter- American market with companies like Gen- back, and ideas for ACV to become more Manufacturing of steel and aluminum is the years, and we decided to invest in other ensure that we are providing good offers to national aerospace community looking at eral Electric, which is now our biggest cli- targeted in achieving its transition goals. widely available in Coahuila and there are companies. the outside markets. Laguna as a potential aerospace destina- ent. Working with world-class companies several manufacturing companies in the state Industrial B&S invested in manufacture tion? taught us various techniques and continuous What is ACV’s strategic plan for invest- that can process these materials for differ- components for the electrical- and mechan- Is product testing of component parts a Mexico is a growing country that is eager to improvement methods that allowed us to im- ing in the aerospace sector in the coming ent sectors. What differentiates ACV from ical-motion control and power-generation challenge in the region, and what other perform much better in the global market. prove performance in quality, costing and di- years? competitors is that it has the best welding products. We also invested in the oil and gas challenges does Industrial B&S experi- Laguna is looking to improve its industries versification strategies. ACV aims to invest in automated material- processes according to its customers. We can industry and the aerospace industry, as we ence? as well as the lifestyle of its citizens. The re- Three years ago, we acquired one of the handling subsystems, automated welding weld any material from aluminum to stain- wanted to manufacture more complex parts. Final testing is a great challenge for all the gion offers a good opportunity for supplying biggest industrial complexes in the north of processes and improving our quality system. less steel, which is a rare capability. We can industries present in the region, and we need components to the aerospace industry as we Mexico with the main initiative of diversi- The aerospace industry quality requirements manufacture very large products as well as What is the global footprint of Indus- to invest in this area and develop the local are making great efforts to grow within the fying into the automotive and aerospace in- differ from other industries. Currently ACV low-volume, high-mix products, giving us trial B&S in respect of its international supply chain. Major customers have re- industry and supply better and cost-efficient dustries. Expansion projects required ACV to is producing a very wide mix and a low vol- an advantage. We have an excellent manage- clients? What certifications correspond quired testing capabilities, and this is defi- products. • not only consolidate its processes and prod- ume of parts for different sectors, but the aim ment team that handles planning processes with this work? nitely an aspect to which we should attend. ucts, but to make a significant investment in is to have specialties where we produce high oriented with on-time delivery, cutting inven- We have a certified manufacturing facility Training of workers is another key aspect terms of time, training, equipment and certi- volumes through automation. tory and slicing costs. • that houses approximately 100 employees. that deserves some more attention. Work-

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ed people, high tech machinery and value local supply chain. ISS has submitted some manufacturing has changed, and customers similarly tailored specifications to come added engineering development, and inno- projects to federal innovation entities and have shifted focus from cheap labor to cer- from aerospace clients. vation. ISS’s main goal for the future is to has already received extraordinary benefits tified labor, especially regarding the - aero Kimball solutions would like to offer the expand our capabilities and presence within and support from Coahuila´s government. It space industry. aerospace industry as much as it can, but the aerospace industry. also has other open projects waiting for au- Kimball has heavily invested in machinery it wants to be experts in a process before it

AC thority approval. ISS is investing heavily in and training its staff to keep up with global offers it as a service to our customers. We Can you explain the diversity and size innovation and its strategic plan is to grow trends. Companies operating in the aero- can start supplying machine parts to the of your ISS’ product/service offerings at within the aerospace industry. The aim is to space industry require high-tech machinery aerospace industry as we already have the present? innovate and create equipment that can add as well as specialized and skilled workers, infrastructure and capabilities. Kimball has We are a group (ISS-ALDAJO-ISEEMSA- value to our manufacturing processes. making training a basic necessity for all multiple 2-axis and 3-axis CNC machines, PCSA) of companies who works together to ISS currently services about 22 customers, Mexican operations. Another key driver for break presses capable of supporting 200 intensify efforts and get better results. Our including Siemens, General Electric, and a company to be successful in Mexico is to tons, a Faro machine, and our AS9100 cer- EJ sourcing and logistics division offers inte- Mitsubishi. The majority of our customers have laboratories for inspection and measur- tification. gral supply chain management and solutions is operating in the energy sector and utilizes ing. such as: air, ground and sea transportation, our specialized water-jet services. Cutting Can you elaborate on the training that expedited logistics solutions as air charter services are in high demand in the region What were the first machines that Kim- is required specifically for the aerospace Alejandro Cabello services, air hand carry and ground hot shot, and there are not many companies offer- ball Solutions purchased, and what gaps industry? export and import management, lead logis- ing these services. ISS just attained AS9100 in the supply chain did you hope to fill? Kimball Solutions invests heavily in the & Enrique Juarez tics provider, warehousing and distribution, certification and we are in the process of Arturo Kimball Solutions saw a need for special- training of its staff, as they need as much international purchasing’s, and regulatory creating a presence in the aerospace sector. ized machining in the aerospace industry knowledge as possible to supply certified and tariff classification. As to meet the demands of the aerospace Dueñes and we took advantage of that opportunity. parts to our customers. Any company can ISS is a sheet/plate metal structural fabri- industry, we are in the process of acquiring The first machines that Kimball Solutions manufacture machining parts, but it does not cation and engineering design company. a high-tech bending machine. A capability purchased for our aerospace operations mean that they have certification for the spe- Manufacturing capabilities include special- that is also on high demand and will com- were Mazak CNC machines. Every single cific part. In order to supply certified parts, ized piping, fixtures and brackets, structural plement our solutions is finishing processes. product that leaves our plant is inspected one has to be able to provide testing reports Managing Directors General Director metal components and parts, CNC machin- We should invest in the final protection of and measured under very tough circum- from a laboratory. INTELLIGENT SOURCING ing, metal forming, water jet cutting, bend- the parts and fill this gap in the local sup- KIMBALL SOLUTIONS stances in our new laboratory. SOLUTIONS (ISS) ing, welding and small sheet metal assem- ply chain. To become a major player in both the aero- Is the government collaborating with the bly. We work with three main materials: space and automotive markets, certifications cluster and trying to develop the industry carbon steel, aluminium and stainless steel. How will the aerospace industry in Coa- are very important. Kimball Solutions had further? The aerospace industry requires alloys, huila evolve over the coming years? the equipment and skilled human capital to We are about seven companies that are try- which we can also provide. ISS also has a The support of the Mexican government is diversify our operations to other industries ing to get the Torreon aerospace cluster go- design and engineering division that focuses very important to the aerospace industry, and the aim is to become certified in all as- ing, but we do not yet have all the required on finite-element analysis, structural design, with special thanks to the Coahuila state au- pects as to fill a gap in the supply chain. services in hand. The local government will mechanical components, process design, thorities. If there is continuous reciprocity Can you give a brief introduction to Kim- Not to mention we are already members of be willing to encourage the development of Can you give a brief introduction to Intel- and specialized software. The specialized between the government and companies in ball Solutions and how the company has FEMIA, which shows our commitment to the industry and will provide their support ligent Sourcing Solutions (ISS) and how software’s includes NX (Nastran), Inventor, the region, La Laguna will become a strong evolved since its establishment in Mexi- this evolution. to the cluster. The cluster receives support the company has evolved since its estab- Dessauls Systems, CAD/CAM and CAE aerospace cluster. We have already proven co? from ProMéxico, and the federal govern- lishment in Mexico? (Computer Assisted Engineering). All ISS’ that we can provide quality equal to any Kimball Solutions began its operations in Kimball Solutions has CNC machines, ment is also heavily pushing the aerospace Intelligent Sourcing Solutions (ISS) was fabrications are in preparation to emigrate, country in the world and have the capacity 1966, manufacturing farm equipment for over 80 welders, painting capabilities etc. industry aiming to create jobs and attract founded in 2008 by people who were expe- as we have a strategic plan to ultimately fab- to acquire high-tech equipment. With this the domestic market. In 1985, there was a What work do you hope to have from foreign investment. We are not yet in a po- rienced in metal manufacturing processes. ricate products for the aerospace industry. mix, we can compete in the global markets. significant amount of changes in Mexico aerospace companies? sition where we have contact with the gov- Sourcing is a critical aspect for both cus- There is a great synergy in the cluster, and related to exports and free trade, granting Our main focus is firstly to supply machine ernment, but the government would be very tomers and suppliers, and we saw an oppor- What is the scale of Intelligent Sourcing this has the result that the aerospace indus- Kimball the opportunity to diversify our parts to the industry; secondly, our attention interested in collaborating with the cluster tunity in this market. ISS started as a global Solutions’ facility? What is the ISS cur- try is a significantly fast growing sector in product portfolio. We had the capacity and is on assemblies. We have expertise in very in the near future. logistics, transportation solutions, and in- rent production capacity? terms of revenue and overall capacity. labor capabilities to manufacture products large parts, but that is not yet our focus with- dustrial-sourcing services company. Logis- Our current facility is approximately 2,500 According to the Coahuila government’s vi- that were not related to farm equipment and in the aerospace industry. Our philosophy is Do you have a final message for our inter- tics in Mexico are challenging, as there are square meters and there are plans for future sion of the aerospace sector, the participation we began to partner with American compa- to first learn to walk before we start running. national aerospace community looking at many complex federal requirements includ- expansion. ISS wants to increase its current of current and new companies in aerospace nies that were taking advantage of free trade Eighteen years ago, Kimball solutions start- Torreon as a potential aerospace destina- ing NAFTA certification and declaration. production areas and aims to construct a manufacturing should start to significantly agreements and looking at supply chains in ed to manufacture only hydraulic tanks for tion? We are dedicated to revolutionize response metrology and measurement laboratory that increase. The aim is that by 2019, Coahuila Mexico. an American garbage company. Over the In the near future, the La Laguna region will times and punctual deliveries to our custom- verifies diameters, lengths, position, ratio should be an important aerospace manufac- At that time, most American companies years we have evolved with the company find all the services that are required to im- ers. and some other requirements according to turing platform much like other aerospace were looking at Mexico’s supply chain, as and currently we are manufacturing their prove the local supply chain, including as- In 2012 ISS started an advanced manufac- customer’s needs. It is part of our strategic hub states. Coahuila has the potential to be the country could offer very cheap labor. entire units that are supplied all over the semblies, machining parts and specialized turing division, and our main goal is to in- plan for 2016 to acquire more testing tools at the same level as the current aerospace Since then, Kimball has been manufacturing United States. We need to have knowledge parts. La Laguna used to be a great region tegrate our manufacturing scope with our and equipment. clusters in Mexico and in addition, the geo- equipment for about three to four companies of the end user for the unit as every single for the textile industry, and the textile mar- logistical expertise. Our philosophy is based The availability of testing tools and equip- graphic location of Coahuila is an advantage that shut down their manufacturing facilities state in the United States has different regu- ket is now again starting to develop within in three main aspects: qualified & motivat- ment in the Laguna region is a gap in the due to its proximity to the border. • in the United States. However, the trend in lations for noise and sizes, etc. We expect the region. •

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advanced technologies and excellent labor grow in other segments; therefore, we will the business to start a diversification pro- signers from , we are well- force enable us to be effective and provide increase our punch-press capacity as well cess, entering new industries beyond textile versed in the particularity of perfection. Cli- added value services to well-known brands as our machining centers and forming ma- manufacturing. Siete Leguas has now been ents send us their rough designs, and within as Caterpillar, Regal Beloit, Tug Technolo- chines. present in the construction industry for 15 two weeks our staff sends mock ups and gies and Volvo Construction Equipment. years and the mining industry for 12 years. samples outlining variations of their ideas. What are your expectations for the aero- Employing approximately 6,000 people, we The aerospace industry has a similarly cus- Can you elaborate on the capabilities space sector in the La Laguna region? have become one of Mexico’s most impor- tom demand for each brand of each aircraft, and equipment that Kirbymex has within In the past, the companies operating in the tant businesses. With this track record of and we are surely capable of matching de- your facility? aerospace sector were growing separately growth and diversification in mind, we are sign with delivery. Our facility currently has 8,000 square me- but there is a significant push towards inte- excited and eager to break into the aero- ters (sq. m.) of floor space and by the end gration and synergy between government, space and automotive industries in the near Please provide a final message. of March 2016 we will have expanded to universities and the private sector. The La future. Siete Leguas has the custom-design capabil- 11,750 sq. m. In this additional 3,750 sq. Laguna region will experience significant ities, machinery, human capital, funds and m., we plan to add a large machining cen- growth and witness an aerospace boom. The Why were aerospace and automotive cho- raw material suppliers necessary to break ter and reserve space for new projects. The government is focused on developing a clus- sen as target industries? into this industry. The company’s record of operations in our facility include: cutting, ter and the location of La Laguna has a great Siete Leguas is extremely adaptable with an success with past diversification ventures is bending, grinding, machining, welding, advantage. The region also has substantial incredible capacity for production. We have a good indicator. We would like potential punching, assembly, cleaning, painting and universities and technical schools and can evolved to become a worldwide jeans sup- clients to know we are willing to invest in Carlos Roberto finishing. Our cutting machines are capable soon offer skilled human resources to the José Juan Marcos plier to top brands, capable of manufactur- the equipment necessary to meet their needs to take on projects of any size and/or thick- sector. ing 1 million pairs of jeans per month. With if need be, and Siete Leguas is looking for- Braña ness. We have five bending machines that al- González this in mind, imagine the immense equip- ward to the fruitful challenge ahead. • low us to handle parts with great length and Can you elaborate on the in-house train- ment and efficiency of our business- pos thickness. We also have computer numerical ing of Kirbymex? sesses. Siete Leguas will not need to expand control (CNC) lathes and machining centers Our personnel are one of our most important its manufacturing capacity to enter into the of various sizes to support our operation. assets. Our facility houses 230 employees aerospace and automotive sectors; rather, Director CEO We use in-house designed tools for robotic who continuously undergo equipment and using the existing equipment, Siete Leguas KIRBYMEX S.A. DE C.V. welding processes that allow us to carry out software training. Every six months, our op- SIETE LEGUAS will offer clients in these industries what projects from all sizes—from diesel engine erators apply for an exam towards achiev- they need. It is a natural expansion. Yet, that supports to large and heavy airport-tractor ing level A, which is the expert; they start is not to say Siete Leguas is opposed to in- chassis. All materials and products can be from level E, which is basic knowledge of vesting in any equipment necessary for ful- cleaned and finished through sand blasting, machining. Based on their skill level, fur- filling clients’ demands. The aerospace- in shot blasting, phosphating and painting ther training is scheduled. All work groups dustry is taking-off in Mexico, and fostering To support our commitment to on time de- are also supported by programs such as Kai- its growth will be beneficial for both Siete livery and quality products we use top of the sen Multi-Functional Teams, SPC, 5S, and Leguas and the country’s overall advance- Can you give a brief introduction to Kir- line technologies and first class materials Six Sigma Black Belt projects. Continuous Founded in 1958, can you provide a brief ment and stability. bymex and how the company has evolved such as carbon steel, galvanized steel, stain- improvement is encouraged by having our history of Siete Leguas and its evolution? since its establishment? less steel, and aluminum. Kirbymex has its workforce come up with innovative ideas Founded by my grandfather, Antonio Juan Which machines and processes will di- Kirbymex is a family-owned manufacturing own warehouse facilities and two quality- that are tracked on our floor displays. Marcos, Siete Leguas specializes in the rectly transfer into aerospace solutions? company that has been present in the na- control laboratories that are equipped with manufacturing of clothing, mainly denim What additional investments need to be tional and international market since 1999. state-of-the-art tools that perform measure- Kirbymex started completely dedicated products, for the international fashion mar- made? In the beginning our main product focus was ments and extensive testing on all our prod- to the agricultural sector, but this sector ket—including GAP, Levi, Ralph Lauren Being the textile manufacturer it is, Siete in the agricultural sector through a joint ven- ucts. is only contributing 3% to your business and American Eagle—covering Europe, Leguas has the sewing and cutting equip- ture with an American company; therefore, today. What percentage does Kirbymex Asia, and the Americas. We no longer sim- ment, as well as laser-printing technologies, Kirbymex began to assemble and sell cattle- In which technologies does Kirbymex hope the aerospace sector will contribute? ply manufacture jeans, but rather we are re- necessary to manufacture aircraft cabin in- feeder mixers in Mexico. wish to invest and what capabilities do Our focus in the aerospace sector is current- sponsible for the entire process, from prod- terior pieces like seats, rugs, air bags, and In 2003 Kirbymex started to manufacture you hope to transfer to the aerospace ly in the Ground Support Equipment seg- uct development and design to packing and anything else that has stitches. Coming into custom designed parts for various customers market? ment. This segment represents 27% of our shipping. the industry via this route is the most ob- and grew significantly within the industrial In the coming year Kirbymex will invest in business and we expect this percentage to Siete Leguas was founded in 1958, but I vious and safest entry point. Given the ca- sector. Our operations are mostly high mix, welding robots and stamping. We also have grow up to 33% during 2016. The challenge like to think of Siete Leguas in two different pabilities and machines we have experience low volume. With more than 15 years of plans to invest in fiber optic lasers. The com- is to double our sales in the aerospace sector respects: prior to 1994 and post 1994—the with in our facilities, the possibilities are metal mechanic experience in the industrial pany will expand significantly with regards by the end of 2017. year in which NAFTA was passed. NAFTA endless. We have a large range of produc- and agricultural markets, we aim to provide to CNC machining centers and the first ad- was key to the success of our company, and tive processes such as cutting, embroidery, quality products to our customers according ditional unit will be operational by late Do you have a final message for our inter- with its passage we began steadily increas- sewing, hand sand and all dry processes, to their requirements. The company is com- March 2016. This center will be capable of national aerospece community? ing our exports to U.S. and European mar- special finishing, 3D finishing, packing and mitted to high-precision specifications, low- completing horizontal and vertical four-axis Investors who are looking for reliable and kets. finishing; we have a distribution center, wa- cost production and short delivery times; jobs, which will meet the current demand. eager additional suppliers will be surprised Between 1994 and 2005, Siete Leguas went ter treatment plant, development center, trim this policy has allowed us to become one of With regards to the aerospace market, in when they visit La Laguna and witness the from approximately 400 employees to 4,000 warehouse, etc. the most reliable suppliers worldwide. Our addition to GSE, Kirbymex is looking to capabilities that the area has to offer. • employees and its financial success enabled Having worked with high-end fashion de-

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CONCLUSION: MEXICO STAKING ITS CLAIM IN THE GLOBAL AEROSPACE INDUSTRY

“We have now proven to be successful at bringing corporations here, resulting in them making significant savings and managing well. The next step is to create mutually beneficial partnerships between them, making local investments, combining assets, sharing knowledge and fostering growth. ”

- Luis Lara, Chairman of the Board & CEO, American Industries Image: EZ Air EXPERT OPINION Global Business Reports Global Business Reports INTERVIEW

sector 23% are Mexican companies, supplying mainly to tier-three HUMAN CAPITAL companies.

Human Capital Stage and Competencies Required in the Aero- TRENDS IN THE space Sector

AEROSPACE As we have seen, Mexico is in the transition from the efficiency stage to the innovation stage, and, according with Harris Poll study, SECTOR the name of the game in the single-aisle market will also be innova- tion; nevertheless, only 11% of the aerospace operations in Mexico By José Flores, President, are concentrated in engineering services and R&D. In research conducted by IDEA and ABT associates about human Corporate Recruiters capital needs in Mexico’s aerospace sector, the main deficiency was the need for soft skills such as interpersonal skills, team work- There is no doubt that Mexico is becoming a key player in the global ing, multicultural exposure, analysis, problem solving and business aerospace manufacturing industry, and the federal government has sense, in order to understand the economic impact of decision mak- implemented several measures to assure that will be among the 10 ing. These skills are also marked as critical in the study conducted by largest providers of this industry before 2020. the Institute for Defense Analysis and the Society of Manufacturing In our 30 years of experience supporting the aerospace sector in Engineers for the aerospace sector in United States. Alejandro J. Mexico, we have witnessed the evolution of the automotive, elec- Nevertheless, at Corporate Recruiters, we have found that soft skills tronic, and medical sectors from cost centers to a profit centers and are the most hard to define by our clients and therefore the most diffi- Guzman from manufacturing plants to a shared-services centers. How ready is cult to evaluate. For this reason we have supported them to elaborate the aerospace sector to achieve this level of maturity and what needs solid job descriptions and create a search plan by using our Compe- of human capital competences are required to achieve this? tencies' Pyramid (1) system that has been the result of our 30 years To answer this question, we must answer three questions: (1) in of experience in the manufacturing industry. Commercial Director which stage of competitiveness is Mexico as a country?; (2) what Our evaluation system contemplates five levels of competence: TRANSTELCO will be the global demands in aerospace for the next 10 years?; and personal, position-related, manufacturing sector, management, and (3) how is the aerospace value-added curve in Mexico? global competences. For each level it is important to identify the proper competences according with the moment and dimension of Mexico’s Competitiveness Stage the operation, and as well as the challenges and responsibilities of the position. It is also important to assign value to each competence As home to one of the main aerospace vals to ensure that our clients receive the According to the World Council Forum 2014 /2015 competitive- in order to evaluate candidates match accordingly. clusters in Mexico, Querétaro has some of fastest delivery of their information and ness report, Mexico is transitioning from the second stage focused the largest, global aerospace multination- transactions. on efficiency to the third stage focused on innovation. In order to The Take Off als in the country. These companies need achieve this transition, corporations must work together with edu- Could you provide a brief overview and high-quality, real-time communication What are some major challenges that cational institutions to produce the professionals with the necessary Mexico already has a well educated workforce and a proven manu- history of Transtelco? systems to run their operations. Transtelco Transtelco has encountered in the aero- technical and soft skills. Fortunately, in 2007, Mexico founded the facturing market, but, in order to soar to the next level, educational Transtelco was founded 15 years ago in offers the latest technologies to improve space sector? Mexico Council for Aerospace Education (COMEA), which is inte- institutions and corporations must work together to create programs Ciudad Juárez, with the goal of bridging the communication and transaction re- When Transtelco first arrived in Querétaro, grated with universities and technical institutions to meet this need. and opportunities to develop soft skills mainly in all positions related the communication gap between the Unit- quirements of international companies. large aerospace companies in the region As reported by COMEA, Mexico has 52 educational programs in 12 to R&D, NPI supply chain and liaison functions among local plant, ed States and Mexico. We wanted to create were building and operating their own fi- states, 50% of which are for engineering careers and 1.6% of which headquarters and tier-one and tier-two suppliers. Fortunately, global an efficient and streamlined communica- What services does Transtelco offer its ber networks. Local providers could not are for post-degree studies at the Master’s and Ph.D. levels, and, as companies such as Bombardier and Honeywell and educational In- tion system between both countries. The clients? offer the speeds and reliability required stated by PROMEXICO, each year graduates 90,000 engineers. stitutions such as CETYS and Instituto Tecnologico de Monterrey largest players in the telecommunications Transtelco connects a customer in Queré- and, if they could, they charged exorbitant are working together to develop R&D programs with state of the art industry in both countries only served their taro to its U.S. branch through a single- fees for the bandwidth. Transtelco can of- Aerospace Global Trends in Aircrafts laboratories. respective national market. Hence, Trans- fiber network. Communications flow- di fer the amount of bandwidth that corpora- Companies will have to put in place training and developing pro- telco saw an opportunity to become a tele- rectly between both countries without the tions need to succeed in the industry and The CIT 2015 aerospace study conducted by Harris Poll among 100 grams to foster soft skills such as global awareness, languages, communications player with operations on need to interconnect with another Tele- avoid efficiency losses from running a pro- of the top global airlines executives showed that in the next five multicultural team working, business sense, IT tools proficiency, both sides of the border. communications provider, which would be prietary fiber network. years, the major trends in aircrafts manufacturing will be concen- information literacy, analysis, decision making and critical think- The arrival of international companies to responsible for taking the services to the trated in: technology innovations (75%), social media (57%) and ing. In the market these competences will be highly demanded com- Mexico brought to light the complexities other side of the border. Our bi-national What are some major milestones for air safety (55%). Therefore, airframers will launch replacement modities, therefore companies with the right training programs to of dealing with two separate telecommu- network augments the value of the services Transtelco in the next five years? programs for the single-aisle market before 2030, with a projected develop and recruit professionals with these skills will prevail over nications carriers to connect operations on we offer our customers. Transtelco plans to expand its infrastruc- demand of over 25,000 commercial aircrafts. their competition. • both sides of the border. Transtelco wants Transtelco owns the infrastructure that it ture and grow its commercial market in If you want to know more about this article please feel free to write at to solve this coordination problem and of- operates. Therefore, our company does not both the United States and Mexico. Our Mexico Aerospace Value-Added Curve [email protected] fer a one-stop solution. need to lease third-party networks. We can company will continue to simplify com- At the moment, 79% of the aerospace plants in Mexico are dedi- react and quickly repair problems when munications between both countries so our 1 The Competencies' Pyramid is a trademark model of Corporate Recruiters What attracted Transtelco to offer ser- they arise. More importantly, Transtelco clients can focus on their business opera- cated to manufacturing and assembly processes, 11% to engineering for the best assesment and evaluation of executive talent, to consult it visit services R&D, and 10% to MRO. From the 270 suppliers of this www.global-recruiters.com/our-services vices in the Querétaro region? offers the best latency compared to its ri- tions. •

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Global Business Reports EDITORIAL

MADE WITH PRECISION AND INTENT The Future of Mexico’s Aerospace Industry

With $1.8 billion in aerospace foreign direct investment over the ciencies. Mexico needs to better capitalize on its profound diversi- past ten years and $6.4 billion in aerospace exports in 2014, Mex- ty, as this would increase not only attractiveness but also efficiency. ico is an increasingly important global player. President Enrique Yet, being that 45,000 Mexicans are employed in the industry, Peña Nieto recently announced that Mexico is now ranked sixth aerospace development is undoubtedly progressing. In 2007, among the suppliers of this industry to the United States, a number Mexico housed 150 aerospace factories. Today, there are over 300 that is expected to climb even further now companies and support organizations, most that composites are being added to the south- of which have NADCAP and AS9100 certi- C ern neighbor’s repertoire. What was once an There is a great deal of talent and fications. One of the largest is Safran Group,

M emerging industry has now solidified itself as patience residing within the country Mexico’s leading aerospace employer and a a national priority and government interven- principal investor. At the start of 2016, Saf- Y and companies are finding that tion into aerospace is more than complemen- skills of this kind are invaluable ran not only opened a new plant in Chihua- CM tary. The National Flight Plan aims to fully hua and Querétaro, but announced its dedica- and irreplaceable—those that have take advantage of cost competitiveness with tion to invest $74 million for the creation of a MY relocated to Asia are making their way the ambition to produce nearly every part new LEAP engine facility. Parts at this plant CY back to Mexico to re-open facilities. of the complete aircraft; this plan, however, will be using composite materials, making CMY cannot be completed without state synergy. engines lighter with less pollution via the lat-

K As realized by researching each of the five est technology. Growth of the sector has been major Mexican aerospace hubs, the uniqueness of each cluster con- arbitrarily resilient, at a registered 15%, as a result of companies tributes differentiated and important elements to the overall pic- realizing the full potential that Mexico has to offer. Multinationals ture. To fully maximize this potential, the next step should be to such as Safran that have already chosen Mexico as a destination ensure all clusters are painting on the same canvas. Though Mexico help mitigate the negative stigma that were previously attached has attracted seven original equipment manufacturers to establish with the country’s brand. Crime rates and drug lords are typically themselves within its borders, the government’s main priority is the only newsworthy pieces picked up by the international press, filling the many persisting gaps in the supply chain, but it is unclear and the successes of stability and friendly trade policies are over- if this is being done in a unified manner. The Boeing 737—one looked. There are many misconceptions about the capabilities of of the smallest and most popular commercial the country; beyond its maquiladora mastery, jets—is made up of 367,000 parts and, over Mexico’s world-class engineers and state-of- the next decade, commercial aircraft annual “It is rare to find an overarching the-art research and design centers are unin- production levels are anticipated to increase expansion effort into Mexico as a tentionally underrated. by an estimated 20%. By 2033, more than whole and, though there is great As portrayed in each preceding chapter, more 31,350 new passenger and freight aircraft are cohesion and logistical stability within aerospace parts are made in Mexico than expected to take flight. It is safe to say that each respective region, there lacks meets the eye—from engines, to safety gear, the opportunities of aerospace parts suppliers to aerostructures, to seats. These products interconnectedness between the are evident, but most companies are preoccu- boast a seal of approval not only qualifying not-so-distant clusters. Shortages or pied with weighing the costs and benefits of for international standards, but a majority are one state versus the other. It is rare to find an vacancies at one hub are rarely taken perfectly handcrafted. There is a great deal of overarching expansion effort into Mexico as care of by another; the United States talent and patience residing within the coun- a whole and, though there is great cohesion remains the prime destination for any try and companies are finding that skills of and logistical stability within each respective and all deficiencies.” this kind are invaluable and irreplaceable— region, there lacks interconnectedness be- those that have relocated to Asia are making tween the not-so-distant clusters. Shortages their way back to Mexico to re-open facili- or vacancies at one hub are rarely taken care of by another; the ties. More are indeed coming to realize that “Hecho en Mexico” United States remains the prime destination for any and all defi- means made with precision; made with intent. •

Industry Explorations - 167 - MEXICO AEROSPACE 2016 COMAPANY DIRECTORY - PROMEXICO COMAPANY DIRECTORY - PROMEXICO

BAJA CALIFORNIA Asteelflash Group Consolidated Precision Products, S. de R. L. Delphi Connection Systems Tijuana, Goodrich Aerospace de México, Máquinas, Accesorios y Avenida Producción 5-B de C. V. S. A. de C. V. S. de R. L. de C. V. Herramientas de Tijuana S.A. Parque Industrial Finsa Carretera Tijuana - Ensenada Km. 97.5 Blvd. Pacífico 14532 Calzada Venustiano Carranza 238 Av. Del Fuerte 18 – 469Fracc. Campestre Murua 3d Robotics Tijuana, Baja California El Sauza de Rodríguez Parque Industrial Pacífico Desarrollo Industrial Colorado 4a. Etapa CP 22520 Tijuana, Baja California Libramiento Oriente 14299-9, CP 22760 Ensenada, Baja California CP 22643 Tijuana, Baja California CP 21384 Mexicali, Baja California (664) 623 2544 | 624 3015 CP 22643 Tijuana, Baja California (646) 175 8871 (664) 622 6100 | 622 6152 | 622 61 55 (686) 904 7900 | 904 7998 www.mahetsa.com (664) 104 3435 www.cppcorp.com www.delphi.com www.goodrich.com www.3drobotics.com Bazz Houston 12700 Western Avenue Garden Grove Market Power(Cooper Industries) CA 92841, USA Crissair de México, S. A. de C. V. Deutsch Servicios Hartwell Dzus S. A. de C. V. Calle Romanoc 13525 – C, Col. La Mesa Aerothecnical Solutions (01) 714 898 2666 Romano 13525-M Carretera Federal Mexicali – Tijuana km.127 Prol. Av. Juárez 999, Col. El Refugio CP 22440, Tijuana, Baja California Privada Misiones 1123 www.bazzhouston.com Fracc. Alcalá La Mesa Parque Industrial Tecate CP 21440 Tecate, Baja California (664) 681 9760 Parque Industrial Misiones CP 22440 Tijuana, Baja California CP 21430 Tecate, Baja California (665) 654 0493 | 654 6681 www.cooperindustries.com CP 22500, Tijuana, Baja California (664) 683 3021 (664) 633 4300 www.southco.com (686) 157 4853 www.crissair.com MTI de Baja Dynamic Resources Group Tecate Llc, Honeywell Aerospace de México, Calle Cuarzo S/N lotes 7 y 8 Aerospace Solutions de Mexico Cubic de México S. A. de C. V. S. de R. L. de C. V. CP 22790 Ensenada, Baja California S. de R.L. de C.V. Reiny Giesecke Av. Maple 7B-1 Circuito Aeroespacial 12 (646) 154 1193 Av. De las Palmas 4800 BAP Aerospace de México, S. de R.L. de C.V. Privada Misiones 1120 Parque Industrial Tecate Parque Industrial El Vigía II Las Palmas Calle Maquiladoras 101 Parque Industrial Misiones CP 21430 Tecate, Baja California CP 21395 Mexicali, Baja California CP 22106, Tijuana, Baja California Cd. Industrial, CP 22425 Tijuana, Baja California (665) 655 0151 (686) 580 5300 | 580 5307 | 580 5385 (619) 661 5232 CP 22444 Tijuana, Baja California (664) 621 5171 www.craitools.com www.honeywell.com www.aerosolutions.info (664) 686 5557 [email protected] www.cubic.com Hutchinson Seal de México, S. A. de C . V. Afiliados Industriales Eaton Industries, S. de R. L. de C. V. Calle Pelícano 313 Unión de Comerciantes 1123 BC Manufacturing, S. de R. L de C. V. Esterline México Av. Santa Rosalía 9707 Col. Lomas de San Fernando, Parque industrial Morelos Rampa de Otay 1115 Alberto Osuna Parque Industrial Pacífico II Ex Ejido Chapultepec CP 22450, Tijuana, Baja California Parque Industrial Misiones de las Californias Vía Rápida Poniente 16955-58 CP 22572 Tijuana, Baja California CP 22785 Ensenada, Baja California (664) 622 4167 CP 22396 Tijuana, Baja California Col. Río, CP22215, (664) 978 1600 | 626 5006 (646) 173 6712 www.afiliadosindustrialesdeprecision.com (664) 624 9939 | (664) 188 9707 Tijuana, Baja California www.aerospace.eaton.com www.hutchinsonrubber.com Nex Tech Aerospace www.bcmanufacturing.com (664) 231 4594 (Industrial Vallera de Mexicali, S.A. de C.V.) [email protected] Calle Saturno 2 PIMSA 1 Aerodesign de México www.esterline.com Electro-Ópticas Superior, S. A. de C. V. Interiores Aéreos S.A. de C.V. (Gulfstream) Parque Industrial Mexicali 1, Alamitos Blvd. Pacífico 14634 Bourns de México Alba y Terrazo 9 Boulevard Lázaro Cárdenas 2385 CP 21210 Mexicali, Baja California Parque Industrial Pacífico Blvd. Agua Caliente 4600 Local 13 La Mesa, Parque Industrial Bustamante Col. Calles CP 21397 Mexicali, Baja California (686) 841 0330 CP 22670 Tijuana, Baja California Centro Industrial Barranquita CP 22450 Tijuana, Baja California (686) 562 8600 www.nex-techaerospace.com (664) 626 0555 | 626 0558 CP 22400 Tijuana, Baja California Galvanizadora Tijuana (664) 626 1530 www.cdzodiac.com (664) 608 6800 Mariana Montalvo www.lockeedmartin.com www.bourns.com José Manuel Salvatierra 137 Jonathan Mfg. de México, North American Production Sharing Fracc. Garita de Otay S. de R. L. de C. V. de México, S. A. de C. V. Aerospace Coatings International CP 22430 Tijuana, Baja California Circuito Siglo XXI 2136 Carretera Tecate Km. 14.5 (Industrial Vallera de Mexicali, S. A. de C.V.) (664) 623 8514 Empresas L.M., S. A. de C. V. Parque Industrial Ex-XXI Centro Industrial Los Pinos (bodega 30) Calle Industria del Papel 17 Chromalloy, S. A. de C. V. www.platingtj.com Av. Mecánicos 1350, Col. Industrial CP 21259 Mexicali, Baja California CP 22850 Tijuana, Baja California Parque Industrial El Vigia (Chromalloy Aerospace) CP 21010 Mexicali, Baja California (686) 567 6767 | 567 6769 (664) 660 8376 CP 21389 Mexicali, Baja California Calle Galaxia 91 (686) 554 6691 | 555 6178 www.jonathanengr.com www.napsintl.com (686) 562 64 09 Parque Industrial Mexicali 1 Jet Cabo www.elm-aerospace.com www.aerocoatings.com CP 21210 Mexicali, Baja California Aeropuerto Internacional de Tijuana, (686) 566 5331 | (686) 566 5333 Hangar Matriz Lat Aero-Espacial S. A. de C. V. Oncore de México, S.A. de C.V. www.chromalloy-cnv.com CP 22500 Tijuana, Baja California Americas Plating Company Ermita Norte 2-C, Col. La Mesa, Industrial 9, Del Prado Este Allied Tool & Die (624) 146 5121 (Craig Tools Ensambladores Electrónicos CP 22440 Tijuana, Baja California CP 22500 Tijuana, Baja California Circuito de las Misiones Sur 199 Módulo 1 www.jetcabomx.com de México, S. A.) (664) 621 6138 (664) 134 6774 Mexicali, Baja California Remec México, S. A. de C. V. Av. Sierra San Agustín 2498, Col. El Porvenir www.lionindustries.com (602) 276 24 39 Terrazas 4350 Parque Industrial Progreso www.alliedtool.com Colonia Gas y Anexas CP 21185 Mexicali, Baja California Orcon de México, S. A. de C. V. CP 22115 Tijuana, Baja California Spectrum Integrity (686) 556 6301 | 837 3400 Leach International México S. de R.L. de C.V. Blvd. Lázaro Cárdenas 244 (664) 661 6025 Blvd. Benito Juárez 907-7 www.rockwellcollins.com Ave. Águila Azteca 19190 Ejido Chapultepec, Co-Production de México, S.A. de C.V. Ocean Plaza Parque Industrial Baja Mac El Águila Parque Industrial Chapultepec (All-power Manufacturing Co.) CP 22666 Rosarito, Baja California CP 22215, Tijuana, Baja California CP 22785 Ensenada, Baja California Calle Olivo 204 (661) 612 9266 (664) 625 5111 (646) 120 18 88 | 129 24 25 Tecate, Baja California Coast Aluminum www.spectrumintegrity.com Ensambles del Pacífico S. de R.L. de C.V. www.esterline.com www.orcon-aerospace.com (665) 521-12-95 | 521-13-84 Andador del Rey 20051, Mod 10AB Av. Sierra San Agustín 2498 Parque Industrial Girasol Col. El Porvenir Col. Rancho el Águila Techmaster de México Parque Industrial Progreso LMI Aerospace Parker Hannifin, S. de R. L. de C. V. Anodimex de México, S. de R. L. de C. V. CP 22215, Tijuana, Baja California Calle Monterrey 3130-A CP 21785, Tijuana, Baja California (Industrial Vallera de Mexicali S. A. de C. V.) Calle Siete Norte 111 Blvd. Pacífico 9217 (664) 625 5052 Col. Mineral de Santa Fe (664) 637 5602 Av. Eucalipto 2351 Módulos C y D Parque Industrial Nueva Tijuana Parque Industrial Pacífico www.coastaluminum.com CP 22416 Tijuana, Baja California www.parpro.com Parque Industrial Calafia CP 22500 Tijuana, Baja California CP 22709 Tijuana, Baja California (664) 624 4444 CP 21259 Mexicali, Baja California (664) 623 3066 (664) 969 96 34 www.techmaster.com (686) 905 0044 www.parker.com www.anodimex.com Compoende Aeronáutica de México, FSI de Baja, S. A. de C. V. www.lmiaerospace.com S.A. de C.V. Av. Reforma 394 Júpiter 193 Welch Allyn Fraccionamiento Loma Linda Placas Termodinámicas Parque Industrial Mexicali I Calle Emilio Flores 2471-A CP 22890 Ensenada, Baja California MAIS Industries LLC / SINCO Av. El Rey del Desierto 66 CP 21210, Mexicali, Baja California Col. Canon del Padre (646) 120 5884 Avenida Uno Poniente #19090-A Ciudad Indus- Parque Industrial El Sahuaro (686) 565 8600 CP 22203 Tijuana, Baja California trial, Otay Tijuana, CP 22444 CP 21399 Mexicali, Baja California www.compoende.com (664) 211 6900 619) 270 2304 (686) 561 5400 www.welchallyn.com www.maisind.com GKN Aerospace Chem-tronics Inc. Arneses y Conexiones S.A. de C.V. (Industrial Vallera de Mexicali, S. A. de C. V.) Procesos Térmicos y Especiales de Mexicali, Calle Uno Norte 1108 Conesys Customs Sensors and Technologies de Circuito Siglo XXI 1974 S. de R. L. de C. V. Ciudad Industrial Los Olivos 2000, Col. Industrial México Aerospace Parque Industrial Ex-XXI Av. Eucalipto 2351 CP 22444, Tijuana, Baja California CP 21430, Tecate, Baja California Parque Industrial FINSA CP 21290 Mexicali, Baja California Parque Industrial Calafia (664) 623 3700 (665) 655 5008 Baja California (686) 905 0005 | 905 5700 CP 21259, Mexicali, Baja California www.osca-arcosa.com www.conesys.net (665) 682 2190 www.chem-tronics.com (686) 905 0075

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River Manufacturing International Technolgy and Industrial Services de México Arnprior Aerospace México L3 Crestview Aerospace Transtelco Zodiac Monogram Av. 2B Corporativo, Parque Industrial OT, www.nex-techaerospace.com Av. Tabaloapa 8901 Chihuahua Operations 500 W. Overland Ave., Suite 310 Calle Taguchi 18702 Tijuana, Baja California, México Parque Industrial Chihuahua Sur Nicolas Gogol 11332 El Paso, TX 79901, USA Parque Industrial Supra (664) 624 94 95 Chihuahua, Chihuahua CP 31136 1(915)534-8100 CP 31183 Chihuahua, Chihuahua www.rivermanufacturing.com Teledyne Microelectric Technologies (614) 238 5000 Chihuahua, Chihuahua. México www.transtelco.net (614) 306 5100 Blvd. Díaz Ordaz 15270 www.arnprioraerospace.com (614) 260 6601 www.zodiacaerospace.com Col. Benton www.l-3crestview.com Rkern Manufacturing de México, CP22115, Tijuana, Baja California S. de R. L. de C. V. Atlas Aerospace Chihuahua Zodiac Electrical Power Systems Valle del Sur 8431-1 Ave. Washington 3701 Ed. 43 Kaman Aerostructures Calle Taguchi 18702 Col. El Rubí Transmex International, S. A. Parque Industrial Las Américas Blvd. Fuentes Mares 9403 Parque Industrial Supra CP 22620 Tijuana, Baja California Romano 13525-B CP 31200, Chihuahua, Chihuahua CP 31064 Chihuahua, Chihuahua CP 31183 Chihuahua, Chihuahua (664) 701 0539 | 637 9179 Fracc. Alcalá La Mesa (614) 426 2140 (614) 380 1424 (614) 158 6800 Parque Industrial Jumare www.theatlasgroup.biz www.kaman.com Tighitco www.zodiacaerospace.com CP 22106 Tijuana, Baja California Calle Aeroespacial S/N Ryerson (664) 681 5027 Parque Industrial Chihuahua Sur Zodiac In-Flight Innovations Ave. Encantada Oeste 11510 www.transmex.net BE Aerospace Manoir Industries Chihuahua, Chihuahua Benoît-Marie Mellet El Florido Ave. Nicolas Gogol 11332-A Av. Oscar Wilde 11390 (614) 238 2250 Calle Taguchi 18702 CP 24050, Tijuana, Baja California Complejo Industrial Chihuahua Complejo Industrial Chihuahua www.tighitco.com Parque Industrial Supra (664) 231 6830 Tyco Electronics Tecnologías, S. A. de C. V. CP 31109 Chihuahua, Chihuahua CP 31109 Chihuahua, Chihuahua CP 31183 Chihuahua, Chihuahua www.ryerson.com Av. Producción 20 (614) 179 5104 (614) 481 3235 Wesco Aircraft (614) 158 6800 Parque Industrial internacional Tijuana www.beaerospace.com www.manoir-industries.com Luis Rivero www.zodiacaerospace.com CP 22424 Tijuana, Baja California Av. Nicolás Gogol 11342 (664) 647 4500 | 647 4520 Complejo Industrial Chihuahua www.tycoelectronics.com Beechcraft Metal Finishing Co. CP 31136 Chihuahua, Chihuahua Blvd. Fuentes Mares 9003 Av. Nicolás Gogol 11332 (614) 427 0719 CP 31090 CP 31136 Chihuahua, Chihuahua www.wescoair.com Vescio Manufacturing International Chihuahua, Chihuahua. México (614) 483 1324 Seacon Global Production, (Dafmex S. de R.L. de C.V. o (614) 429 5700 www.metalfinishing.com S. de R. L. de C. V. Dameron Alloy Foundries) www.beechcraft.com Zodiac Seat Actuation DISTRITO FEDERAL Callejón Terrazos 8, Local 2-C Av. Galaxia y Júpiter 72 Calle Taguchi 18702 Centro Industrial Las Brisas 1a. Sección Parque Industrial Mexicali 1 Nordam Parque Industrial Supra CP 22610 Tijuana, Baja California CP 21210, Mexicali, Baja California Bell Helicopter - Textron International Mexico Parque Industrial Supra Chihuahua, Chihuahua Aerovías de México, S. A. de C.V. (664) 626 2726 (686) 841 0455 Ave. Cristóbal Colón Fontanarrosa 22101, CP 31183 Chihuahua, Chihuahua (614) 306 5100 Av. Fuerza Aérea Mexicana 416 www.seaconglobal.com www.dameron.net Fracc. Nombre de Dios (614) 158 0140 www.zodiacaerospace.com Col. Federal CP 31170, Chihuahua, Chihuahua www.nordam.com CP 15700 México, D.F. (614) 238 7000 (55) 9132 6377 | 9132 6379 Segó Precisión de México, S. de R. L. de C. V. Volare Engineering, S. de R. L. de C. V. www.bellhelicopter.com Zodiac Aero Elastomer America www.aeromexico.com Calle Torre de Piza 230 Calzada Cuauhtémoc 899-2ª www.textron.com Palomino High Precision Machining Av. Ishikawa 1000 Col. Magisterial Col. Pro-hogar Calle 24 No. 2412 Parque Industrial Supra CP 22470 Tijuana, Baja California CP 21240 Mexicali, Baja California Col. Pacífico CP 31183 Chihuahua, Chihuahua Mexicana MRO Services (664) 645 4300 (686) 567 5286 | 567 4998 CAV Aerospace Chihuahua, Chih. CP 31030 (614) 306 5000 Av. 602 No. 161-A Col. San Juan de Aragón www.segoprecision.com www.volare-eng.com Alejandro Dumas 11321 (614) 278-0779 www.zodiacaerospace.com CP 15620, México D.F. Complejo Industrial Chihuahua www.palomino.cc (55) 1204 0315 | 1204 0315 CP 31109 Chihuahua, Chihuahua www.mexicana.com/mroservices Southco Hartwell Dzus S.A. de C.V. (614) 158 6600 Zodiac Aerosafety Evacuations Systems Avenida Juarez 999 www.cav-aerospace.net Av. Ishikawa 1200 El Refugio Parque Industrial Supra CP 21444 Tijuana, Baja California CHIHUAHUA Cessna CP 31183 Chihuahua, Chihuahua (665) 654 0493 Av. Miguel de Cervantes 140 (614) 483 5551 www.southco.com Complejo Industrial Chihuahua www.zodiacaerospace.com A&E Petche CP 31109 Chihuahua, Chihuahua Safran Labinal Power Systems Av. Washington 3701 Edificio 13-B Interior (614) 236 1000 Av. Nicolás Gogol 11322 Suntek Manufacturing Technologies, Parque Industrial Las Américas www.cessna.com CP 31136 Chihuahua, Chihuahua Zodiac Interconnect Technologies Americas S. A. de C. V. CP 31200, Chihuahua, Chihuahua (614) 442 5900 Av. Ishikawa 1000 Circuito Internacional Norte 14-Sur (817) 461-9473 www.labinal-power.com Parque Industrial Supra Parque Industrial Nelson www.aepetsche.com EZ Air Interior Limited CP 31183 Chihuahua, Chihuahua CP 21395 Mexicali, Baja California Oscar Wilde 11340 (614) 306 5000 01(686) 580 0414 Complejo Industrial Chihuahua Safran Engineering Services www.zodiacaerospace.com Eurocopter de México, S. A. de C. V. www.karelmanufacturing.com Altaser Aerospace CP 31109 Chihuahua, Chihuahua Av. Nicolás Gogol 11322 Hangar 1 Zona "G" de Hangares AICM Calle Sicomoro 2905 (614) 158 8600 CP 31136 Chihuahua, Chihuahua Col. Aeropuerto Chihuahua, Chihuahua, México www.zodiacaerospace.com (614) 442 5900 CP 15620 México D.F. Suntron de México, S. de R. L. de C. V. (614) 417 5492 www.safran-engineering.com Zodiac Lighting Solutions (55) 5716 7571 Av. Producción 20 Módulo C www.altaser-aero.com Av. Ishikawa 1001 www.eurocopter.com.mx Parque Industrial Tijuana Fokker Aerostructures Parque Industrial Supra CP 22425 Tijuana, Baja California Av. Tabalaopa 830 LISI AEROSPACE CP 31183 Chihuahua, Chihuahua (664) 979 1100 | 979 1111 | 979 1114 Parque Industrial Chihuahua Sur Av. Oscar Wilde 11390 (614) 158 6800 Gima Aerospace, S. de R. L. de C. V. www.suntroncorp.com CP 31385 Chihuahua, Chihuahua Complejo Industrial Chihuahua www.zodiacaerospace.com Poniente 116 No. 4, (614) 260 6021 CP 31136 Chihuahua, Chihuahua Col. Trabajadores de Hierro, C.P.02650 www.fokkeraerostructures.com (614) 481 3235 (55) 5368 6022 | Cel. (044) (55) 4139 4169 Switch Luz, S. A. American Industries www.lisi-aerospace.com Zodiac Seat Shells www.gimaaerospace.com Av. Las Brisas 14930 Int. 1 y 2 Ave. Washington 3701 Ed. 18 Calle Taguchi 18702 Parque Industrial Las Brisas II Parque Industrial las Americas Honeywell Aerospace Parque Industrial Supra CP 22610 Tijuana, Baja California Chihuahua, Chih. C.P. 31200 Vialidad Tabalaopa 8507 SOISA Aerospace CP 31183 Chihuahua, Chihuahua ProMéxico (664) 686 8088 1-877-698-3905 Parque Industrial Chihuahua Sur Melchor Guaspe 3800-3, Col. Dale. (614) 306 5100 Camino a Santa Teresa 1679, Jardines del www.electromechcomp.com www.americanindustriesgroup.com CP 31074 Chihuahua, Chihuahua CP 31050 Chihuahua, Chihuahua www.zodiacaerospace.com Pedregal, (614) 429 5400 (614) 442 5900 01900 Ciudad de México, D.F. www.honeywell.com www.soisaaerospace.com 55 5447 7000 TDI-Transistor Devices de México, www.promexico.gob.mx S. de R. L. de C. V. SOURIAU Zodiac Seats US Calle Viñedos 3000 HT-MX Ave. Nicolas Gogol 11332-A, Av. Ishikawa 1001 Parque Industrial El Bajío Calle 40ª 5200 7, Col. Dale Complejo Industrial Chihuahua Parque Industrial Supra CP 21440 Tecate, Baja California CP 31050 Chihuahua, Chihuahua CP 31136 Chihuahua, Chihuahua CP 31183 Chihuahua, Chihuahua (665) 655 5115 (614) 492 3800 (614) 481 9769 (614) 158 6800 www.tdipower.com www.ht-mx.com www.souriau.com www.zodiacaerospace.com

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Intertek Indumet, S.A. de C.V. Kimball Solutions Aeroservicios Especializados, S.A. de C.V. Dynamic Logistics Pte. 134 660, Industrial Vallejo, ESTADO DE MÉXICO Alfredo del Mazo 1420 (Agro Industrial DUZA S.A. de C.V.) Av. Ricardo Margain No. 444, Col. Valle del Prolongación Alfonso Reyes No 10 02300 Ciudad de México, D.F. Santa Cruz Azcapotzaltongo Calle Antonio Dueñes Orozco No. 259, Ciudad Campestre, Edif. EQUS, Piso 6, Monterrey, N.L. Vía Cordillera Valle Pte. (55) 5998 0900 CP 50030 Toluca, Estado de México Industrial Torreón, C.P. 27019 C.P. 64060 Santa Catarina, N.L. www.intertek.com.mx Ingenieros en Aeronáutica y Arquitectos (722) 237 3036 Torreón, Coahuila (+52) 81 5000 7579 (81) 20 87 80 70 Interioristas de Aeronaves, S. A. de C. V. 52 -871 720-2245, 792-3022, 750-6518 www.asesa.com.mx www.dylo.com.mx Adolfo López Mateos 202, Reforma www.kimball.com.mx CP 50070 Toluca, Estado de México (722) 2 73 12 00 Aeroservicios Técnicos Regiomontanos, EZI Metales, S.A. de C.V. [email protected] S.A. de C.V. Blvd. Interamerican No. 233, Parque Industrial LA LAGUNA Carretera Monterrey - Nuevo Laredo km 20, FINSA, Apodaca, N.L. C.P. 66600 Hangar 13, Aeropuerto Internacional del Norte, (+52) 81 8145 0405 Representaciones Asesoría, Mantenimiento y Apodaca, N.L. C.P. 66600 www.ezimetales.com.mx Servicios Anexos, S. A. de C. V (RAMSA) Deltaplast Mexico (+52) 81 8319 7861 Bosques de Guinea 73, Blvd. San Pedro s/n www.asertecfbo.com Bosques de Aragón Parque Industrial Ferropuerto Laguna Exova de México, S. de R.L. de C.V. CP 57170 Nezahualcóyotl, Estado de México Carretera Torreón-Mieleras Km. 8 Carretera Monterrey – Saltillo No. 3279-B, (55) 5799 5228 CP 27400 Torreón Coahuila Aerovitro, S.A. de C.V Col. Privada de Santa Catarina, www.paginasprodigy.com/ramsa10/prov- 52-871-733 25 60 ext 120 Carretera Monterrey - Laredo km 20, Hangar 23, Santa Catarina, N.L. C.P. 66367 eedores.html www.deltaplast.com.mx Aeropuerto Internacional del Norte, (+52) 81 8032 4444 Safran de México Apodaca, N.L. C.P. 66600 www.exova.com Campos Elíseos No. 345 Piso 5, Col. Polanco (+52) 81 8329 3100 11560 México Aerovics, S. A. de C. V. www.aerovitro.com (55) 5281 8775 | 5281 8705 Hangar 3 Calle 1 Lotes 5 y 6 Kirbymex, S. A. de C. V. www.safran-group.com Aeropuerto Internacional Adolfo López Mateos Carretera Torreón Mieleras km 6.5, CP 27400, Col. San Pedro Totoltepec Torreón Coahuila Ankura Desarrollos Aeronáuticos, S.A de C.V. CP 50200 Toluca, Estado de México Ph : 52-871-732-92-73 Carretera Monterrey - Laredo km 24.5, Hangar (722) 273 1171 |273 1172 | 273 1173 Equipos Inoxidables del Norte SA de CV www.kirbymex.com 22, Aeropuerto Internacional del Norte, www.aerovics.com.mx Address : Calle Carretera el Tajito no. 225 Col. Apodaca, N.L. C.P. 66616 Senermex, Ingeniería y Sistemas, Ex Ejido Cuba Gómez Palacio Dgo. CP 35140 (+52) 81 8237 1130 S. A. de C. V. +52- 871- 7193540 www.ankuraaero.com Juan Racine 112, Colonia Los Morales Centro de Servicio Avemex, S. A. de C. V. www.acvgroup.com CP 11510, México D.F. Calle 4 Hangar 14 Lote 35 (55) 5029 3132 Aeropuerto Internacional Adolfo López Mateos Asesoría y Equipos de Inspección, www.sener.es Col. San Pedro Totoltepec S.A. de C.V. CP 50200 Toluca, Estado de México asesoríaLucas y Alamánequipos No.1109, Col. deBellavista, inspección, s. a. de c. v. (722) 273 1266 | 273 1165 Monterrey, N.L. C.P. 64410 www.avemex.com.mx (+52) 81 8374 1428 Siete Leguas www.aeisa.com.mx Servicio Técnico Aéreo de México, S. A. Calz. Tecnologico 1055 Ote. FRISA Forjados, S.A. de C.V. Hangar 10, Zona G de Hangares Raytheon Aircraft Services México, Ciudad Lerdo 35150 Durango Valentín Rivero No. 200, Col. Los Treviño, Colonia Aeropuerto Internacional de la Ciudad S. de R. L. de C. V 52 (871) 748 1400 Santa Catarina, N.L. C.P. 66150 de México Ex Hacienda Canalejas Calle 2 Habilitaciones y Servicios (HASEIN) www.sieteleguas.com.mx (+52) 81 8153 0300 CP 15620 México D.F. Hangar 9 y Lotes 14 y 18 Av. Adolfo Aymes esquina con Luis F. García www.frisa.com (55) 5133 1109 Aeropuerto Internacional de Toluca s/n, Zona Industrial Torreón www.stam.com.mx CP 50200 Toluca, Estado de México Torreón, Coahuila, México, C.P. 27019 (722) 279 1684 722 2791685 01 871 750 6191 www.raytheon.com haseinsa.com.mx

Tata Technologies de México, S. A. de C. V. Henkel Capital Aviones y Helicópteros del Norte, S.A. de C.V. Oficina en Nuevo León Blvd. Magno centro 8, Piso 2 Carretera Monterrey - Laredo km 20, Hangar 36, Loma Alta 2369 Centro Urbano Interlomas Aeropuerto Internacional del Norte, Col. Loma Larga, Monterrey, Nuevo León CP 52760 Naucalpan de Juárez, Apodaca, N.L. C.P. 66600 (81) 8343 1645 Estado de México (+52) 81 8344 8470 Full Services NDT, S.A. de C.V. (55) 3300 3000 www.avihel.com.mx Av. Anillo Periférico No. 1824-5, Oficina en Ciudad de México www.henkel.com.mx NUEVO LEON Col. Hacienda San Jerónimo, Monterrey, N.L. Parral 16-A, Col. Condesa C.P. 64630 CP 06140, Distrito Federal Industrial B&S de México, SA de CV Conductores Monterrey, S.A. de C.V., Viakon (+52) 81 1366 0809 (55) 5211 22 97 Hitchiner Manufacturing Company de México, Juan F. Brittingham No. 134 Ciudad Industrial, Aero Alterno, S.A. de C.V Av. Conductores No. 505, www.ndt.mx S. de R. L. de C. V. 27019 Torreón, Coahuila Director General Col. Constituyentes de Querétaro Sector 3, Oficina Coahuila Cruce Carretera La Marquesa - Ph : 52- 871- 750 -6495 Carretera Monterrey – Nuevo Laredo km 10.6, San Nicolás de los Garza, N.L. C.P. 66493 Blvd. Independencia 1600 Ote. Local C-46 T. Tianguistenco - Chalma, Parque Industrial www.industrialbs.mx Hangar 52, Aeropuerto Internacional del Norte, (+52) 81 8030 8094 Hawker Beechcraft Services de México, CP 27100 CP 52600 Santiago Tianguistenco, Apodaca, N.L. México, C.P. 66600 www.viakon.com S. de R.L. de C.V. (871) 722 1920 Estado de México (+52) 81 8158 45 00 Carretera a Salinas Victoria Hangar 5, www.tatatechnologies.com (715) 135 1901 www.aeroalterno.com Aeropuerto Internacional del Norte, www.hitchiner.com Apodaca, N.L. C.P. 66600 (+52) 81 8851 7000 Aero Corporación Azor, S.A. de C.V. www.hawkerbeechcraft.com.mx Procesos Control Numérico Computarizado [email protected] The Mexican Federation of Aerospace S.A. de C.V. Carretera Monterrey – Nvo. Laredo km 20, Han- Industries, A.C. (FEMIA) Manuel Martínez 105 gar 45, Aeropuerto Internacional del Norte, Carbones Industriales Mexicanos, HEMAQ, S.A. de C.V. Montecito Nº38 Piso 36, of. 38. Parque Industrial San Antonio Buena Vista Intelligent Sourcing Solutions Ciénega de Flores, N.L. C.P. 65550 S.A. de C.V. Juan Cantú García No. 601, Col. Garza Cantú, Torre WTC, Ciudad de Mèxico, Toluca, Estado de México Alberto N. Swain no. 60 Int. 1 (+52) 81 8369 4637 Carretera Monterrey – Nuevo Laredo km 16.5, San Nicolás de Los Garza, N.L. C.P. 66480 Col. Nàpoles, Delegaciòn Benito Juàrez, Tel. 01 722 2162686 Ciudad Industrial Torreón, www.azoraero.com Col. Moisés Sáenz, (+52) 81 8131 3199 C.P. 03810, Mèxico, D.F. www.pcnc1.com Torreón, Coahuila CP 27019 Apodaca, N.L. C.P. 66604 Toll Free USA: +1 (877) 700 5060 (55) 9001 0335 52-871-169-2069, 318-7041, 137-7930 (+52) 81 8385 2960 www.hemaq.com www.femia.com.mx www.isspg.com Aeronaves Dinámicas del Norte, www.cimsamex.com Tecniflex Ansorge de México y Compañía, S.A. de C.V. S. en C.S. de C.V Ricardo Margain 444 Calle 9 - 6 y 6ª Col. Alce Blanco Parque Corporativo Equus Torre Sur - Demaq Technologies, S.A. de C.V. CP 53370 Naucalpan, Estado de México Piso Penthouse, Col. Valle del Campestre San Av. Manuel Ordoñez No. 1501 Int. 5, Col. Zimex, (55) 5358 8701 Pedro Garza García, N.L. C.P. 66265 Santa Catarina, N.L. C.P. 66358 www.ansorge.com (+52) 81 5000 7590 (+52) 81 8388 9356 www.grupolomex.com www.demaq.com.mx

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Jaiter, S.A. de C.V. Parker Hannifin de México, S.A. de C.V. Advance Real Estate Planta de estructuras Helmut Fischer NDT Expert Mexico Ocampo No. 165, Col. Las Encinas, Vía del Ferrocarril a Matamoros, Prolongación Av. Tecnológico Norte 950 B Piso Aeropuerto Internacional de Querétaro Anillo Vial II Junípero Serra, #2450, Int. 201, Av Fray Luis de León 8051, General Escobedo, N.L. C.P. 66050 Segunda Oriente No. 730, Apodaca, N.L. C.P. PH1, Carretera Querétaro -Tequisquiapan Km. 22.5 Pabellón Corporativo. Col. Valle de Juriquilla, Centro Sur, 76090 Qro. (+52) 81 8397 6645 66600 76159 Santiago de Querétaro, Qro. Col. Pedro Escobedo 76230 Santiago de Querétaro, Qro. (442) 210 3860 www.jaiter.com (+52) 81 8156 6077 (442) 199 0557 CP 76270 Colón, Querétaro (442) 260 9295 www.testia.com www.parker.com www.advance-realestate.com (442) 341 7369 www.helmut-fischer.mx www.bombardier.com

Pinturas Industriales y Automotrices García, S.A. de C.V. Bravo No. 502 Ote., Col. Centro, Guadalupe, N.L. C.P. 67100 Brovedani Reme de México (+52) 81 81570340 Avenida Industria de la Construcción 411 www.piaga.mx Parque Industrial Querétaro Querétaro Hyrsa Aerospace Maquinados CNC de PCC Aerostructures de México, S.A. de C.V. Maquinados Industriales Mitras, S.A. de C.V. (442) 256 0300 | 256 0314 Precisión Carretera Estatal 200 Querétaro-Tequisquiapan Av. Las Palmas No. 119, Parque Industrial Las Tecnología, Procesos y Maquinados, A.E. Petsche Co. www.brovedanigroup.com S. DE R.L. DE C.V. Colón, Querétaro Palmas, Santa Catarina, N.L. C.P. 66368 S.A. de C.V. (Grupo American Industries, S. A. de C.V) John F. Kennedy 106 (442) 713 5600 (+52) 81 8316 6323 Avenida Texas No. 125, Parque Industrial Na- Carretera Tequisquiapan - Querétaro Km. 22.5 Felipe Carrillo Puerto www.precast.com www.mimsamaquinados.com cional, Ciénega de Flores, N.L. C.P. 65550 Parque Aeroespacial Querétaro CP 76138 Querétaro (+52) 81 8319 0407 CP 76278 Colón, Querétaro Centro de Ingeniería Avanzada en (442) 455 2600 | 217 2600 www.tecmaq.com.mx (442) 101 6702 Turbomáquinas, S. de R. L. de C. V. (GE-IQ) www.hyrsaaerospace.com www.aepetsche.com Av. Campo Real 1692 Southwest United Galnik S.A. de C.V. Col. Ampliación El Refugio Avenida de la Luz 24, Acceso II, Nave 16 (442) 296 2302 Zona Industrial Benito Juárez Aernnova Aerospace México, S. A. de C. V. www.ciat.com Industria de Tuberías Aeronáuticas México CP 76120 Querétaro, Querétaro (Aernnova Aerospace / Aernnova México) Acceso IV Número 6 (442) 209 5184 | 209 5185 Av. Benito Juárez 109 Zona Industrial Benito Juarez www.swunitedgalnik.com.mx Parque Industrial Querétaro CP 76120 Querétaro, Querétaro Carretera Querétaro - San Luis Potosí Km. 28.5 Crio, S. A. de C.V. (442) 296 3900 CP 76220 Querétaro, Querétaro Calle 3-11 www.itrmexico.com.mx Monterrey Aerospace México, (442) 227 2866 Zona Industrial Benito Juárez Turborreactores de México S. de R. L. de C. V. www.aernnova.com CP 76120 Querétaro Acceso IV Número 6 Zona Industrial Benito Vía Monterrey - Matamoros S/N, (442) 257 3023 ITR Fabricación Juarez Parque Industrial Milenium, Transpaís Aéreo, S.A. de C.V. www.crio.mx.com Acceso IV Número 6 CP 76120 Querétaro, Querétaro Apodaca, N.L. C.P. 66600 Carretera Monterrey – Nvo. Laredo km 20 Aernnova Componentes México, Zona Industrial Benito Juarez (442) 296 3900 (+52) 81 1156 2130 Hangar 10 y 44, Aeropuerto Internacional del S. A. de C.V. CP 76120 Querétaro, Querétaro www.itrmexico.com.mx [email protected] Norte, Apodaca, N.L. C.P. 66400 Av. Industria de la Transformación 431 (442) 296 3900 (+52) 81 8319 7932 Parque Industrial Querétaro Curtiss Wright Controls Flight Systems / www.itrmexico.com.mx www.transpaisaereo.com Carretera Querétaro-San Luis Potosí Km. 28.5 American industries de Querétaro Safran Snecma México , S.A. de C.V Metalinspec, S.A. de C.V. CP 76620, Querétaro, Querétaro S.A. de C.V. Carretera Estatal 200 Querétaro, Av. San Nicolás No.114, Col. Arboledas de (442) 227 2876 Autopista México - Querétaro Km. 195.5 Tequisquiapan Km 22.5-D San Jorge, San Nicolás de los Garza, N.L. C.P. www.aernnova.com Av. Circuito El Marqués Nte. 50 ITR Diseño Parque Aeroespacial Querétaro 66465 Corporation Aerospace Parque Industrial El Marqués Acceso IV Número 6 CP 76120 Colón, Querétaro (+52) 81 8383 6930 System, S. de R.L. de C.V. CP 76246 El Marqués, Querétaro Zona Industrial Benito Juarez (442) 153 3915 | 296 5629 www.metalinspeclaboratorios.com.mx Galeana No. 467 Oriente, Aeroprocess TTT (442) 256 04 17 | 2531488 CP 76120 Querétaro, Querétaro www.snecma.com Fraccionamiento Industrial El Lechugal, Av del Marquez 70, Parque Industrial Bernardo www.aiig.com (442) 296 3900 Santa Catarina, N.L. C.P. 63350 Quintana, www.itrmexico.com.mx Metrolab, S.A. de C.V. (+52) 81 8318 5399 76246, El Marqués, Querétaro Av. San Nicolás No.114, Col. Arboledas de www.hamiltonsundstrandcareers.com (442) 139 3319 Snecma America Engine Services, San Jorge, San Nicolás de los Garza, N.L. C.P. www.grupottt.com Elimco Prettl Aerospace S. A. de C. V. ITR Ingeniería y Fabricación, S.A. de C.V. S. A. de C. V. 66465 Carretera Libre a Celaya Km 8.6 Acceso IV Número 6 Acceso IV Número 3 (+52) 81 8057 8989 Fracc. Industrial Balvanera Zona Industrial Benito Juarez Zona Industrial Benito Juárez www.metrolab.com.mx Unmanned Systems Technology CP 76900 Corregidora, Querétaro CP 76120 Querétaro, Querétaro CP 76120 Querétaro International, (442) 192 9100 | 219 3746 | 192 9140 |253 1288 (442) 296 3900 (442) 296 5600 | 296 5629 S.A. de C.V. www.prettl.com www.itrmexico.com.mx www.snecma-services.com Monterrey Aerocluster Bermudas No. 146, Col. Vista Hermosa, Edificio Cintermex Av. Fundidora 501, Monterrey N.L. C.P. 64620 Local 127 A, Obrera, 64010 Monterrey, N.L. (+52) 81 8122 0304 (81) 8191 5687 www.usti.mx Especialistas en Turbo Partes, S. A. de C. V. Meggitt Aircraft Braking Systems Querétaro, Tecnica Test www.monterreyaerocluster.com Cuauhtémoc 3 S. de R. L. de C. V. Amado Nervo 41, Los Alcanfores, Industrial San Pedrito Peñuelas Carretera Estatal 200 Querétaro - Tequisquia- 76150 Santiago de Querétaro, Qro. CP 76148 Querétaro pan km22+547 (442) 216 8265 Wyman Gordon Monterrey, S de R.L. de C.V. Alaxia Aerosystems S. A. de C. V. Avenida del Conde 4-B CP 76270, Colón, Querétaro www.tecnicatest.com Av. Las Norias No. 1050, Col. Sierra Morena, Autopista México-Querétaro Km. 181.5 s/n Parque Industrial El Marqués (442) 153 43 00 Guadalupe N.L. C.P. 67190 CP 76700 Pedro Escobedo, Querétaro CP 76246, El Marques, Querétaro www.meggitt.com (+52) 81 8215 9304 (442) 238 09 56 (442) 220 6895 www.kuo.com.mx www.especialistasenturbopartes.com.mx Messier Services Americas, S.A. de C.V. Av. De la Noria 131 Carretera Querétaro - San Luis Potosí Km. 28.5, Monterrey Jet Center, S.A. de C. V. AXON Interconex, S. A. de C. V. Eurocopter de México (Planta Querétaro) Parque Industrial Santa Rosa de Jauregui, Carretera Monterrey - Nvo. Laredo km 20 Han- Av. Peñuelas 21-A1 Carretera 200 Querétaro - Tequisquiapan C.P.76220, Querétaro, Querétaro Tecnum Service, S. A. de C. V. gar 54, Aeropuerto Internacional del Norte, Industrial San Pedrito Peñuelas Colón, Querétaro (442) 192 5800 | 192 5806 Calle 2 106-B, Parque Industrial Jurica Apodaca, N.L. C.P. 66600 CP 76148, Querétaro (442) 256 2600 www.safranmbd.com CP 76120 Querétaro (+52) 81 8154 5100 (442) 215 2713 www.eurocopter.com (442) 218 7496 |218 7497 www.mtyjet.com QUERÉTARO www.axon-cable.com www.tecnum.com.mx

Messier Bugatti-Dowty México, S.A. de C.V Noranco México - Monterrey división AAMEC González Aerospace (México) Carretera Estatal 200 Querétaro - Tequisquia- Av. TLC No. 150, Parque Industrial Stivia Aero- Circuito Andamaxe 6, interior 17 Bombardier Aerospace México, S. A. de C. V. Av. del Marques 10 pan 24032 Thyssenkrupp Aerospace México puerto, Apodaca N.L. C.P. 66634 Col. Paseos del Bosque, Corregidora, Oficina y planta de arneses Parque Industrial Bernardo Quintana Parque Aeroespacial de Querétaro Avenida del Marquez No. 36-A (+52) 81 8386 5448 Querétaro Retorno El Marqués 4 F CP 76240 El Marqués, Querétaro CP 76270, Colón, Querétaro Parque Industrial Bernardo Quintana www.noranco.com (442) 303 5595 Parque Industrial El Marqués (442) 221 5368 | 412 0243 (442) 153 3900 C.P. 76245, Querétaro, Querétaro www.aamec.mx CP 76246 Querétaro www.gonzalezaerospace.com www.messierdowty.com www.thyssenkruppaerospace.com

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SONORA CRM Advanced Manufacturing JJ Churchill Ltd Phoenix of Chicago TE Conectivity Instituto Tecnológico y de Privada Bustamante Final s/n Parque Industrial Rocafuerte Carretera Internacional Km. 1969 Av. Obrero Mundial 9 Estudios Superiores de Monterrey Col. Granja Nogales Carretera Internacional km.129 Norte Guadalajara-Nogales Km. 2 Parque Industrial Dynatech Departamento de Ingeniería Aeronáutica CP 84065 Nogales, Sonora CP 85400 Guaymas, Sonora Empalme, Sonora CP 83200 Hermosillo, Sonora Av. Eugenio Garza Sada 2501 Sur Acra Aerospace (631) 314 9812 (622) 223 9333 (662) 289 7220 Col. Tecnológico Parque Industrial Roca Fuerte www.te.com CP 64849 Monterrey, Nuevo León Carretera Internacional Km. 129 Norte Curtis Wright Controls de México Groupe Latecoere (81) 8358 2000 | 836 25832 CP 85400, Guaymas, Sonora Carretera Internacional Km 5.5 135 rue de Périole, BP 25211 Saint-Clair Technologies Inc. www.itesm.edu (622) 221 1497 Parque industrial San Ramón 31079 Toulouse Cedex 5- FRANCE Calle Diamante s/n Col Vermillion de México CP 84094 Nogales, Sonora (33) 5 61 58 77 00 Guadalupe, Guaymas, 85440, Sonora Carretera Internacional Km. 1969 Avnet Logistics (631) 314 0710 www.latecoere-group.com (622) 224 3834 Guadalajara - Nogales Km. 2 Universidad Autónoma de Nuevo León Parque Industrial Nuevo Nogales www.stclairtech.com Parque Industrial Bellavista Facultad de Ingeniería Mecánica y Eléctrica Calzada Industrial Nuevo Nogales y Daher Aerospace, S. A. de C. V. CP 85340 Guaymas, Sonora Av. Universidad s/n, Ciudad Universitaria Ave. de la Tecnología 1061 Calz. Industrial Nuevo Nogales 270 (622) 223 59 91 | 223 50 53 CP 66451 Monterrey, Nuevo León Nogales, Sonora CP 84094 Nogales, Sonora www.vermillion.com (81) 1492 0375 (631) 311 5900 (631) 311 4850 [email protected] www.daher.com Latelec www.uanl.mx American Precision Assemblers Blvd Solidaridad 1066, Interior 3 Williams International García Morales 257, Edificio 1ª Ducommun AeroStructures México Col. Emiliano Zapata 83280 Carretera Internacional Km. 129 - Salida Norte Parque Labor Carretera Internacional Km. 129 Norte Hermosillo, Sonora Parque Industrial Roca Fuerte CP 83200 Hermosillo, Sonora, México CP 85400 Guaymas, Sonora (52) 662 204 1974 CP 85400 Guaymas, Sonora (662) 260 6380 (622) 221 4911 | 221 4529 (622) 221 0582 Ext. 1768 www.ducommun.com www.williams-int.com Amphenol Optimize México, S. A. de C. V. BF&S - Manufacturas y Ensambles Los Gavilanes 51 Ellison Surface Technologies Fernández y Asociados Parque Industrial San Ramón Parque Industrial Rocafuerte Calle 15 Ave. Emiliano Zapata 720, Col. Sur Sheryl Manufacturing Winchester Electronics CP 84094 Nogales, Sonora Carretera Internacional km.129 Norte CP 84500 Sonora (Quantum Metal, S. A. de C. V.) (Sonitronies, S. A. de C. V.) (631) 311 1600 | 311 1602 CP 85400 Guaymas, Sonora Planta Cumpas: Carretera Internacional Km. 6.5, Edificio 20 Av. Álvaro Obregón 1772 – T, Col. Moderna www.amphenol-optimize.com (513) 770 4952 Avenida C entre calle Benito Juárez y Luis Parque Industrial, CP 84094 Nogales, Sonora CP 84000 Nogales, Sonora Centro para el Desarrollo de la Industria Cosme Barceló Granados (631) 314 31 35 (631) 314 0040 Aeronáutica Arrow Electronics Consolidated Precision Products Cumpas, Sonora www.winchesterelectronics.com Epigmenio González 500 Blvd. Luis Donaldo Colosio 1179 (ESCO Turbines Technology Mexico) (634) 346 0208 Fraccionamiento San Pablo CP 84058 Nogales, Sonora Carretera Internacional Km. 129 Norte QET-Tech Aerospace CP 76130 Querétaro (631) 311 4900 Parque Industrial Roca Fuerte Planta Agua Prieta: Obregon International Airport Windtech – Dix-Mex S.A. de C.V. (442) 238 3100 Ext. 3766 www.arrow.com CP 85400 Guaymas, Sonora Calle 7-498 (331) 567 2398 Calle 16 Avenida 14 y 15-1401 www.cedia.campusQuerétaro.net (622) 221 2989 Ferrocarrilera Agua Prieta Agua Prieta, Sonora BAE Systems Products Group www.escocorp.com CP 84500 Sonora (633) 338 6860 Carretera Internacional Km. 129 (634)3460 208 Radiall (Sonora S. Plan, S. A. de C. V.) Centro de Tecnología Avanzada, A.C. Parque Industrial Roca Fuerte G.S. Precision, Inc. de México, S. A. de C. V. Blvd. Ing. Jorge Pérez de la Peña y (CIATEQ) Guaymas, Sonora Carretera Internacional Km. 129 Norte Blvd. Las Torres, CP 85065, Ciudad Obregón Unidad Bernardo Quintana (622) 221 4227 |221 4333 Parque Industrial Roca Fuerte Minco Manufacturing (644) 411 00 62 ORGANIZACIONES DE EDUCACIÓN, Av. Manantiales 23-A www.baesystems.com CP 85400 Guaymas, Sonora Carretera Internacional Km.1969 www.radiall.com INVESTIGACIÓN, DESARROLLO E Parque Industrial Bernardo Quintana (622) 221 3880 Ext. 104 Guadalajara - Nogales Km.2 El Marqués, Querétaro BE Aerospace www.gsprecision.com Empalme, Sonora INGENIERÍA (442) 211 2609 | 211 2679 Calzada Industria de las Maquiladoras (622) 228 0305 Rolls Royce International Procurement Office www.ciateq.mx Parque Industrial Nuevo Nogales UTC Aerospace Systems Parque Industrial Roca Fuerte Universidad Nacional Autónoma de México CP 84094 Nogales, Sonora (Goodrich Engine Components Blades & Vanes) Guaymas, Sonora (UNAM) www.beaerospace.com Carretera Internacional Km. 129 – Norte National Manufacturing Mexico Universidad Nacional Aeronáutica en Parque Industrial Roca Fuerte Calle Bustamante s/n Instituto de Ingeniería Querétaro (UNAQ) Benchmark Electronics Precision CP 85400 Guaymas, Sonora Col. Granja Sargent Aerospace México Circuito Escolar s/n Carretera Estatal 200 Querétaro-Tequisquiapan Technologies 01(622) 221 2981 CP 84065 Nogales, Sonora Carretera Internacional Km. 129 - Salida Norte CP 04510 Ciudad Universitaria, DF 22154 Carretera Federal No. 15 (631) 319 2228 Parque Industrial Roca Fuerte (55) 5623 3600 CP 76270 Colón, Querétaro Parque Industrial Roca Fuerte Amphenol Griffith Enterprises, Inc. www.nationalmachinecompany.com CP 85400 Guaymas, Sonora www.iingen.unam.mx (442) 270 1578 CP 85430 Guaymas, Sonora Calle Kennedy 5 (622) 221 0854 Ext. 102 www.unaq.edu.mx (622) 221 3660 (631) 314 60 94 www.sargentaerospace.ca Instituto Politécnico Nacional www.bench.com www.griffith-ent.com Paradigm Precision Calle Diamante s/n, Col. Guadalupe ESIME, Unidad Ticomán Centro de Entrenamiento en Alta Tecnología Bodycote Horst Engineering de México CP 85440 Guaymas, Sonora Semco Instruments, Inc. Av. Ticomán 600, San José Ticomán (CENALTEC) Parque Industrial Bellavista, Planta 5B Carretera Internacional Km. 129 – Norte (622) 222 7777 |(622) 224 31 76 Av. Libre Comercio Edificio 2, Parque Industrial CP 07340 Distrito Federal Av. Central 8901 Carretera Internacional Km. 1969 Parque Industrial Roca Fuerte www.paradigmprecision.com CP 84094 Nogales, Sonora (55) 5729 6000 Ext. 56092 Complejo Industrial Chihuahua Sur Guadalajara – Nogales Km. 2 CP 85400 Guaymas, Sonora (631) 311 39 50 |320 7878 www.esimetic.ipn.mx (614) 429 8500 al 25 | 01 800 CENALTEC (223 CP 85340 Sonora (622) 221 2559 www.semcoinstruments.com 6258) (622) 223 4434 www.horstengineering.com Parker Hannifin Aerospace Carretera Internacional Km. 129 CETYS Universidad Mexico Bosch – División de Sistemas de seguridad Integrated Magnetics de México Parque Industrial Roca Fuerte Carlisle Interconnect Technologies Calz. Cetys S/N, Rivera, Centro de Ingeniería y Desarrollo Industrial Periférico Poniente 310-C San Patricio 20, Colonia San Carlos Guaymas, Sonora (Thermax Wire Group) 21259 Mexicali, B.C. Av. Playa Pie de la Cuesta 702 Col. Las Quintas CP 84090 Nogales, Sonora 01(622) 225 02 00 Ext. 2301 Gerardo Blanco, Gerente de planta (686) 567 3700 Desarrollo San Pablo CP 83240, Hermosillo, Sonora (631) 319 1514 | 314 2593 www.parker.com Calle Fernando Bustamante 645 www.cetys.mx Querétaro, Querétaro (66) 2260 7012 | 2260 7010 www.intemag.com Col. Granja, CP 84065 Nogales, Sonora (442) 211 9800 | 01800 552 2040 www.bosch.com.mx (631) 314 6105 Incertec Pencom CSS de México, S. de R. L. de C. V. Consolidated Precision Products Parque Industrial Bellavista Ed. 13 A-D Calzada del Raquet 46, Fracc. California Centro de Investigación en Materiales (Aerocast Internacional) Carr. Internacional Km. 1969 CP 84000 Nogales, Sonora St. Clair Technologies Avanzados, S.C. (CIMAV) Av. Industrial 47-2 Guadalajara - Nogales Km. 2 (631) 319 1485 Carretera Federal 15, Hermosillo-Guaymas Ave. Miguel de Cervantes 120 Fraccionamiento California CP. 85340 Empalme, Sonora www.pencomsf.com Parque Industrial Roca Fuerte Complejo Industrial Chihuahua Nogales (622) 223 5851 CP 85430, Guaymas, Sonora CP 31109 Chihuahua, Chihuahua Centro de Investigación y de Estudios (631) 311 3100 www.incertec.com (622) 221 3960 (614) 439 1100 Avanzados del Instituto Politécnico Nacional www.aerocastinc.com Pinnacle Aerospace Sonora Soft Park in Obregon (Cinvestav) Cadence Aerospace (PRV Aerospace) ITT Cannon de México, S. A. de C. V. Prolongación Boulevard Colonial 300Sur, edifi- Trac Tools de Mexico Unidad Guadalajara Calle Alejandría 9 Av. Libre Comercio s/n cio A, Local 20-2° piso Carretera Internacional Km. 129 - salida Norte Av. del Bosque 1145 Parque Industrial Los Álamos Parque Industrial Nuevo Nogales Col. Parque Tecnológico Obregón Parque Industrial Roca Fuerte Col. El Bajío Zapopan Col. El Greco Nogales CP 84090 Nogales, Sonora Cd. Obregón, Sonora CP 85400 Guaymas, Sonora CP 45019 Jalisco, Zapopan (631) 313 7449 (631) 311 00 50 (644) 4336163 Ext. 104 (622) 221 4301 (33)3767 3300 www.aerodesignmfg.com www.itt.com www.pinnacleaerospace.com www.trac-group.com www.cinvestav.mx

MEXICO AEROSPACE 2016 - 176 - Industry Explorations Industry Explorations - 177 - MEXICO AEROSPACE 2016 CREDITS Global Business Reports

EDITORIAL AND MANAGEMENT TEAM

Senior Project Director: Gabrielle Morin ([email protected]) Project Coordinator: Ty Jeevaratnam ([email protected]) Project Director: Josie Perez ([email protected])

Journalist: James Hogan ([email protected]) Journalist: Meredith Veit ([email protected]) Journalist: Jose Pablo Buerba ([email protected])

Executive Editor: Mungo Smith ([email protected]) Graphic Designer: Gonzalo Da Cunha ([email protected])

For updated industry news from our on-the-ground teams around the world, please visit our website at gbreports.com, subscribe to our newsletter by signing up to our VIP list through our website, or follow us on Twitter : @GBReports.

Additional copies of this book can be ordered through Elif Ozturk ([email protected])

THANK YOU

We would like to sincerily thank all the governmental bodies and associations that took time to share insights into the market as well as their experience and knowledge.

PROMÉXICO promexico.gob.mx

MEXICAN ASSOCIATION OF AEROSPACE INDUSTRIES, A.C. (FEMIA) femia.com.mx

AEROSPACE CLUSTER OF BAJA CALIFORNIA bajaaerospace.org

CHIHUAHUA’S AEROSPACE CLUSTER aerospaceclusterchihuahua.com

NUEVO LEON’S AEROSPACE CLUSTER monterreyaerocluster.com

AEROCLUSTER QUERÉTARO aeroclusterqueretaro.mx

SECRETARIAT OF SUSTAINABLE DEVELOPMENT (SEDESU), STATE OF QUERÉTARO queretaro.gob.mx/sedesu/

MEXICO AEROSPACE 2016 - 178 - Industry Explorations