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AIDC Privatization Anniversary Press Conference


Aerospace Industrial Development Corporation, the leading aircraft manufacturer in Taiwan, sponsored a Privatization Anniversary Press Conference recognizing domestic equipment delivery, contracting and held excellent supplier awards ceremony on the first day of the Taipei Aerospace and Defense Technology Exhibition.

Currently supported by total of 121 qualified domestic suppliers, AIDC awarded seven outstanding suppliers for Delivery Excellent, Quality Excellent, Accurate Delivery Excellent and Delivery Outstanding Growth, including Chenfull International Co., Ltd. And Magnate Technology Co., Ltd. among them. Additionally, the machine & tool manufacturer, Tongtai Machine & Tool Co., Ltd. had acquired AIDC’s contract worth NT$320 million for special five-axis gantry machines, not only choosing the same occasion for delivery ceremony, both parties also signed another machine & tool equipment acquisition contract worth NT$230 million.

AIDC formerly was a state-owned enterprise under the Ministry of Economic Affairs, being completed with privatization by releasing 54% of its shares on August 21, 2014 and listed on Taiwan Stock Exchange on August 25. Undergoing the transformation, AIDC play an important role among the international commercial aircraft and engine manufacturing suppliers. After privatization and in stock exchange listing, AIDC’s management and decision-making on personnel, budget, procurement and accounting have become more flexible and efficient over the past year.

AIDC Chairman Liao Rong-Xin said, AIDC’s personnel are more flexible and posts are relaxed after privatization; timely recruiting new members in accordance with business demand to fill the talent gap. Besides, procurement and budget management are more efficient. Furthermore, to cater to the future robust market demands and maintain the indigenous products service as well as the core technology capability, AIDC invested approximately NT$2.4 billion on three fixed assets, including Engine Case Manufacturing Center, TACC-19 (Composite Material) building and F16 A/B Upgraded Maintenance Building, which are under construction and scheduled to be completed within 2014-2015. The investment will bring AIDC the long-term and stable business.

Recently AIDC achieved good results on business development, winning consecutive honorary awards, such as "Outstanding Growth Award ", " Best supplier Award " etc. by a number of international aerospace companies, including GE Aviation (referred GE), RR (Rolls Royce, called RR), Sikorsky Aviation and Boeing companies. Besides, it was signed, ranging from 4 to 13 years for a new generation of commercial aircraft engine casing components, a long-term contracts with GE and RR company during the Paris Air Show.

This time at the biannual Taipei Aerospace and Defense Technology Exhibition, AIDC displayed not only an array of indigenous aircraft models of T-CH-1 “Chung-Hsing” trainer, F-5E fighter, AT-3 advanced trainer and IDF(F-CK-1D) “Xiang-Sheng” fighter, but also displayed special models showing new generation trainer options, such as AT-3 MAX, XAT-5, M346 and so on. The whole displayed the past, the present and the future of domestic aerospace industry.

Based on advanced trainer facelift project, ROC Air Force proposed to appropriate NT$69 billion budget for the procurement of 66 advanced trainers to replace the existing AT-3 trainers and F5E/F fighters. Liao Rong-Xin stressed “ with exception of having complete IDF “Ching-Kuo” military aircraft development capacity as well as AT-3 trainer research technology and experiences, to cater to the new generation trainer demand, in recent years AIDC invested its own R & D capacity, the associated key technologies, and a variety of design programs to study the feasibility and design ability to enable participating in the new generation advanced trainer research and manufacture. Under the policy of national defense Law Article 22 “independent defense”, homemade aircraft as a priority, AIDC expect to join Air Force to achieve the goal that “national aircraft national made”. If restrictions or risk factors considered in the process of the budget and delivery can not reach the requirements results in the international cooperation model to achieve as scheduled, as quality, as the budget target, AIDC will actively seek to raise the self-made ratio to more than 50 percent, to serve with promoting the development of the domestic aerospace industry. " For advanced trainer facelift project, whether homemade or international cooperation programs, AIDC is ready.
AIDC’s annual revenue in 2014 was NT$24.924 billion which was 8% growth year-over-year; net profit was NT$1.872 billion, growing 45% compared to the previous term; gross operating profit was NT$2.765 billion, which increased 23% compared to the previous term; earnings was NT$2.06 per share. Cash dividend of NT$0.92 per share distribution was approved by the shareholders’ meeting. As of the end of July this year, operating revenue was NT$2.098 billion, accumulated revenue was NT$14.859 billion, an increase of NT$1.7 billion compared to the same period last year, representing 12.97% growth. AIDC forecasts the operating performance is optimistic for this year; excepting the commercial business which will be consistent with the growth and the trend of the global aerospace industry development, the military business will also continue to grow up to not less than last year’s operational goal.