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AIDC’s 20th Anniversary and TACC-19 Grand Opening Ceremony

Today AIDC celebrated its 20th anniversary and the TACC-19 Grand Opening inauguration. A few of the distinguished dignitaries attending these celebrations included the Legislative Vice President Tsai Chi-Chang, Deputy Director of the Industrial Development Bureau, Lu Zheng-Hua and Airbus International Business Department Director, Mr. Remy Moreau. The Grand Opening ceremony was hosted by AIDC’s Chairman Liao Rong-Xin, while AIDC’s 20th Anniversary celebration was jointly celebrated along with the other distinguished guests from foreign companies, domestic suppliers as well as AIDC’s employee representative .

During the TACC-19 facility inauguration ceremony, Legislative Vice President Tsai Chi-Chang said, “Before I assumed the current post, I strongly advocated manufacturing military aircraft domestically because the professional analyses provided by the AIDC’s on-site engineers made me believe they have sufficient capability to research and make new generation of advanced jet trainers. During the past period of time, I kept communicating and made a recommendation to the then-elected President that an industrial trip to AIDC must be arranged. Therefore, from the trip we learned AIDC confronted problems of talent poaching and retirement. He hopes AIDC’s privatization will enhance its overall efficiency and work together to pass down their technology as well as experience to implement the national policy. With AIDC’s perseverance and determination, he will continue to advocate homemade aircraft policy in Legislative Yuan to obtain their support.”

Tsai Chi-Chang also mentioned the development plan on the Taichung Airport should be not only an localized airport as its name would imply but should be combined with multiple industries for example with aerospace industry, precision machinery industry, etc. Furthermore, it should be linked with Taichung Harbour; connecting both sea and air, as an overall planning which will be very instrumental to the economic development both of the local city and to Taiwan.

Chairman Liao Rong-Xin said, AIDC was established on July 1, 1996 and reformed into a state-owned enterprise, formally starting its civil aircraft business. AIDC had encountered a hard time on its business performance after the completion of IDF (Indigenous Defensive Fighter) mass production, adding that the aerospace industry characteristics of long-term and large amount of investment as well as slow profit feedback resulted in an impact on its finance. However, with the efforts of its previous management teams and the support from the MOEA (Ministry of Economic Affairs), they turned a profit since 2007, moreover, AIDC reach a new high record on revenue.

Liao Rong-Xin pointed out AIDC is aware of the rising challenges from the developing countries offering low-cost competition as well as competition from Europe and America using high-tech unmanned automation placing multiple pressures upon Taiwan’s aerospace industry. In order to break through the difficult situation and overcome the trials and challenges posed by international competition, AIDC convened the supply chain and the cross-sector to integrate them vertically and horizontally for teaming up as a coalition named by Taiwan Aerospace Industrial Alliance A-team 4.0.

In addition, Airbus forecasted the global air traffic will grow by 4.6% annually in the next 20 years. The aviation market will demand 32,600 new aircraft. The composite material proportion of AIDC intake from foreign business in recent years increased significantly so that the #19 complex was converted into TACC-19 plant producing composite material components since the existing TACC building (Taiwan Advance Composite Center) can no longer bear the load demand from other new cases of production. Chairman Liao stressed this plant is designated for producing Airbus composite components A320 belly fairing which will bring AIDC steadfast business; besides, the other possible businesses are being closely negotiated as well.

TACC-19 complex is inside AIDC’s Sha-Lu factory which is located in Sha-Lu district of Taichung, covers an area of 5,500 square meters, with the most advanced equipment, including three hot stoves and two five-axis CNC machines. It is believed the TACC-19 complex is instrumental for domestic aerospace industry to vie for international business and improve product quality. To promote the AIDC-based aerospace industry park, they expect the government to continue to offer concessional land rent, tax relief and incentives to enhance the overall yield of Taiwan’s aerospace industry.