Another contract has been signed between Saab and the Indian manufacturer CIM. The contract, which relates to the manufacture of machined components for the Boeing 787, means that Aerostructures is moving production from the USA to India.
A happy Kerstin Vuopio, Strategic Purchaser in Saabs Boeing-team, handing over the signed contract to G S Srikanth, Head of Business Development at CIM.
The contract is a key step in Saab's continual work to lower costs.
"Our presence in India, and in particular the establishment of manufacturing operations in a competitive low-cost environment, is vitally important for us to meet our business objectives," says Stefan Rönnmark, VP and Head of Sourcing & Supply. "The need to have access to low cost suppliers in order to fulfil customer demands is something that is happening throughout the industry. You have to continually work to lower costs without compromising on quality and performance."
This is the third work package to be placed with CIM in Bangalore. They are already manufacturing components for the A320 and A380 programmes on Saab's behalf.
"CIM is a relatively small company, yet it has excellent machinery, tremendous commitment and a strong customer focus. Thus far, they have lived up to our expectations and they have shown that they really do want to strive ahead and develop a partnership with us," says Stefan Rönnmark.
A strategic country
For a long period Saab has regarded India as a strategic country and after a thorough analysis of companies, Aerostructures initiated a co-operation with Indian suppliers a couple of years ago. Apart from the co-operation with CIM Tools, we have also placed and industrialized work packages with two other Indian companies with the ability to produce metallic and composite work packages.
To establish a supply chain in India has not been without headaches, but given the position we have reached today, the long and winding road has given us immense knowledge and experiences from the companies, the setting-up of a supply chain, the culture and the opportunities and problems you meet. The new contract with CIM Tools is a good sign of the potential we see with India and its supply chain and it is a vital step in our next step in the development of our co-operation.