The Securities Times learned that Yuefeng Aluminum's aviation business will grow rapidly in the next two years and become a new profit growth point for the company. The company plans to continue to promote the research and development of new specifications, new alloy brand products, expand the scope of product certification, the next three to five years, to achieve an annual output of more than 30,000 tons of aircraft materials products, Yuefeng Aluminum will become the world's advanced supplier of aviation materials.
At present, the company is further promoting cooperation with Airbus, France Flight, Saifeng, Bombardier, China Aviation Industry, China Commercial Airlines and other well-known aviation enterprises at home and abroad. Airbus signed a memorandum of cooperation with the National Development and Reform Commission (NDRC) on September 28 at the Ninth National Development and Reform Commission-Airbus Cooperation Summit on Aerospace Industry, in which Airbus said it would fully support and promote Yuefeng Aluminum Alloy Material Certification and Yuefeng Feizhuo Aerospace. The establishment and operation of a joint venture.
It is also reported that on Oct. 9, German local time, Yuefeng Aluminum, as a leading comprehensive enterprise in China's aluminum industry, participated in the 12th International Aluminum Industry Exhibition and Aluminum Industry Congress, which is the world's largest aluminium industry event. Many visitors received hundreds of customers on the first day of the exhibition.
In recent years, Yuefeng Aluminum has been committed to the transformation of high-end aluminum products processing, aviation business is part of its high-end manufacturing. At present, the world's aviation aluminum supply mainly comes from the United States aluminum, Caesar aluminum and other five enterprises, the domestic enterprise aviation aluminum is mostly in the experimental stage, Yuefeng aluminum is the first domestic aircraft manufacturer Boeing, Airbus and other suppliers of aviation aluminum deep processing enterprises, the first obvious advantage.
It is reported that Yuefeng Aluminum's aviation business mainly includes the development and manufacture of aviation sheets, profiles and forgings. Now Yuefeng Aluminum has passed the certification of Boeing, Airbus, Comac, Bombardier and other international large aircraft manufacturing companies, and has realized the batch supply.
This year, the company has gained a lot in aviation business. In addition to signing a long-term contract with Boeing over the next five years, the company has passed the Airbus A320 wing truss extrusion profile product certification, becoming the only supplier in China through the Airbus aluminum extrusion profile certification, formally signed a forging contract with Saifeng landing gear system company, and the world-renowned aviation launch. Rolls-Royce, the manufacturer of the machine, has reached a supply agreement for shaft forgings, and has signed a joint venture contract with French Aerospace Group to invest in the construction of a deep processing line for aviation components.
These gains will bring more orders to the company, the next two to three years, the company's aviation business will be multi-point blossom.
On the profile side, after passing Airbus A320 wing truss extrusion profile product certification, the company has received a small number of orders from Airbus. At present, the cooperation between the two sides is good. In the future, Airbus will gradually increase the order volume according to the company's product delivery performance.
At present, only five companies in the world can produce long wing trusses, all of which are European and American companies (Arconic, UAC, French Constellium, German OTTO, FUCHS). Yuefeng aluminum is the only company in China that has passed the certification of aviation extrusion profiles.
On the plate side, the company is participating in Airbus plate testing certification, certification cycle for 18 months, if progress is smooth, in June 2020, the company can pass Airbus certification, then will get Airbus plate orders.
Forgings, the company's aviation parts processing line is being planned for construction and is expected to be put into operation in two years. Compass parts, axle parts and Saifeng landing gear forgings are currently under trial production or production line construction, and are expected to achieve mass production by 2020.
Yuefeng Feichuang Aerospace Parts and Components Co., Ltd., a joint venture between the company and France Feichuang Aerospace, has also been established and is currently in the preparation of the joint venture. The main products of the joint venture are processing parts for aerospace machinery (long beams, orbits, wing strings, etc.).
In the domestic market, the company plans to further expand its market and increase its market share on the basis of domestic subcontracting to Boeing, Airbus, Bombardier, ARJ21 and other companies. In the next three to five years, it will realize the replacement of imported materials. At present, the domestic aviation industry is developing rapidly, and the demand for aviation materials products is increasing year by year. Traditional enterprises in the industry can not meet the demand for aviation materials products. There is still about 50% import share every year, and the market potential is huge. The "Guiding Opinions on Promoting the Development of General Aviation Industry" issued by the General Office of the State Council in 2016 clearly states that China's general aviation industry will have an economic scale of more than 1 trillion yuan by 2020 to cultivate a number of general aviation enterprises with market competitiveness.
The company said that the company's aviation business accounted for a small proportion of operating income, the future with the increasing size of the aviation market, as a new aircraft materials manufacturers, with perfect equipment, professional technical team as a backing, Yuefeng Aluminum aviation business revenue will grow rapidly.
Contact Person: Mr. James Wong
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