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AIDC Hosts 2018 Supply Chain Conference and Completes 3rd Phase Outsourcing for AJT Program


AIDC hosted the annual 2018 Supply Chain Conference on October 17, 2018. The conference featured the signing ceremony for outsourcing contracts with domestic suppliers for the of Advanced Jet Trainer (AJT) Program.

The signing of AJT outsourcing contracts with domestic suppliers were divided into 3 groups. The first group was signed in 2017 with 48 suppliers; the second group was signed in April 2018 with 23 suppliers; and the remaining contracts were signed during the 2018 Supply Chain Conference with 37 suppliers. The outsourcing was meant to downsize the cost structure and increase the made-in-Taiwan percentage by procuring domestic items such as; raw materials, toolings, and machine tools.

The National Chung-Shen Institute of Science & Technology (NCSIST) officially commissioned AIDC on April 25, 2017 to manufacture 66 Advanced Jet Trainers for the ROCAF. With the assembly of the first aircraft beginning on June 1, 2018, it is currently on schedule to roll out in September of next year followed by ground tests with first flight scheduled in June 2020.

During the meeting AIDC Chairman Anson Liao, who also serves as Chairman of the Taiwan Aerospace Industry Association, shared what he had observed while he was in Kuala Lumpur participating in the International Aerospace Business Convention 2018. He pointed out that increasing international investment; making good use of offset agreements and creating business opportunities; and encouraging innovation were common strategies for the development of aerospace industries in Malaysia and Singapore.

“With the aerospace industry booming in the Asian region, Taiwan needs to continue our efforts with strengthening competitiveness as Boeing, Airbus, GE, Rolls Royce and other prominent aerospace companies are demanding further enhancement in cost controls and that Taiwan suppliers need to cope with the trend in order to win our place in the international new business opportunities,” Anson Liao noted.

“AIDC along with its suppliers must rise to the occasion of micro-profit with sufficient productivity; on-time delivery; zero QA escapes; continued improvements; and innovative design to cost.” Chairman Liao called for a team effort among the AIDC suppliers to support the campaigns involving; innovation, Smart Manufacturing, and supply chain integration to create a mutual successful future.