2004_ING by Hegan Cluster

Annual Report 2004

Design: SORTUZ© 653.729.308

Index

1. Presentation ……………………………………………………

2. Organisation of the association ………………………………..

3. Summary of HEGAN´s activities 3.1 Activities in the area of technology ………………………… 3.2 Activities in the area of management quality ………………… 3.3 Activities in the area of internationalisation ………………… 3.4 General activities ………………………………………………

5 7 8 10

4. Summary of the activities of associate companies 4.1 Aerostructures 4.1.1 Large aircraft ……………………………………… 4.1.2 Regional civilian aircraft ………………………….. 4.1.3 Business aircraft and general aviation …………… 4.1.4 Defence sector aircraft …………………………… 4.1.4 Helicopters ………………………………………… 4.2 Engines 4.2.1 Civil sector engines ……………………………….. 4.2.2 Defence sector engines…………………………… 4.3 Space ………………………………………………………….. 4.4 Systems and Equipments ……………………………………… 4.5 Maintenance 4.5.1 Civil sector maintenance …………………………… 4.5.2 Defence sector maintenance ……………………… 4.6 Tests 4.6.1 Structural and fire tests …………………………… 4.6.2 Fluid-dynamic tests ………………………………… 4.7 R&D …………………………………………………………… 5. 2004 Statistics ………………………………………………… 6. Aerospace specialities of HEGAN companies ……………… 7. Acknowledgements ………………………………………………

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HEGAN is an adhered member of

HEGAN is member of

HEGAN participates in the Regional Associations Meetings of

HEGAN is founding partner of

This publication is sponsored by:

1- Presentation by the president

I will try to summarise the motives for this optimism and I invite readers to get to know the Basque Aerospace sector better by reading the following pages which set out its main activities, successes and data. We observe that the turnover for all the member companies as a whole increased 6% in comparison to the previous year, reaching the significant figure of 8.2% in SMEs as a whole. Although the overall percentage of investment in R&D over sales this year was 16%, this did little to alter the ongoing average of 20%.There was an increase in jobs created of 14%, above the figure for the previous year, to 5000 workers and member companies maintain their percentage of exports at around 80% of their total production. Apart from the participation of all the companies in the Cluster in the AIRBUS A380 project, some of the other major achievements in 2004 are outlined below: the 10% increase in ITP’s share of the aeroengine market, in other words, of every 100 turbines manufactured in the world, 10.6 are manufactured by ITP; GAMESA AERONÁUTICA’s agreement with BOEING to join the design team for the structure of the future cargo aircraft, the “747 Large Cargo Freighter”; the ever-increasing presence in systems and equipment subsectors as well as the consolidation of our participation in space projects. In view of all these achievements, together with the increase in our participation in international projects, in new market segments, enabling SMEs to collaborate directly with a greater number of international customers, we can declare categorically that the Basque Aerospace sector is growing and maintaining its competitive edge in a sector which is more and more demanding.

It is interesting to note, furthermore, the increase in work volume of the Aeronautics Technologies Centre (CTA) and the contracts it has won with new international customers for structural and fluid dynamics tests. Seven new structural tests for the A380 programme have been secured and the centre has been able to integrate assembly and instrumentation activities in its fluid dynamics test bed in order to reduce the time required to carry out these tests. We should also mention the continuous collaboration of HEGAN companies with the Higher School of Engineering of Bilbao, enabling graduates of the Aeronautical Technologies Specialisation Course (our companies took an active part in its creation) to do internships in their plants. The HEGAN Cluster Association has worked hard to assist all its member companies in attaining the objectives they have set for themselves and has striven to ensure the increasing effectiveness of the support it tries to offer. Thus, 2004 was HEGAN’s first complete year as a member association of ATECMA (Spanish Association of Aerospace Material Manufacturers) and, as member of the EAQG (European Aerospace Quality Group), the HEGAN has worked to secure a meeting of the committee meeting of the latter association in Bilbao –for the first time in Spain. HEGAN continues to play a leading role in the activities of the ECARE project at a state level, in interregional cooperation projects (INTERREG), and there has been an increase in its presence at international events (FARNBOROUGH, ILA and AEROMART). The association also dedicated a great deal of effort to the organisation of the AEROTRENDS 2004 Conference held in Bilbao, and to the design of a strategy whereby the future lines of activity of the Association will be established in response to the strategic challenges of the sector. The satisfaction of sharing this experience with the professionals of the entities that work and collaborate in the evermore consolidated aeronautics and space sector of the Basque Country, inspires HEGAN to continue working, year after year, with renewed enthusiasm to contribute more added value to this activity. Jorge Unda President of HEGAN

It is a pleasure for me, one more year, to present the report of HEGAN, the Cluster Association of Aeronautics and Space of the Basque Country of which I have the honour of being President. 2004 was a year characterised by a set of good results for the Basque Aerospace industry, which has shown similar levels of capacity for recovery to the international sector in spite of the crisis that has afflicted this industry over recent years and the unfavourable effects of the increase in the price of crude oil, which in 2004, rose 50%. But a growth in air traffic of around 10% as well as an increase in orders for large jets confirmed the expectations for recovery and growth in the world aerospace sector.

2 - Organisation of the association AIMS The aim of the Aeronautics Cluster Association of the Basque Country is to carry out as many actions as necessary to promote, encourage and foster the development of an industrial, professional, technological and research framework capable of providing goods, products and services for the aeronautics market. To do this, the Association endeavours to achieve the maximum levels of co-ordination and synergy between the different social and institutional agents involved, obtain the recognition of the Basque aeronautics strategic subsector by the international community, contribute to the strengthening of our economy, and favour the creation of highly-specialised jobs, the scientific and technical development of our society and the restructuring of our industry towards activities that offer a more promising future and higher added value. ORGANISATION GENERAL ASSEMBLY This is the highest body of the Association and is formed by all its partners. It is therefore the organ in which partners can voice their concerns. GOVERNING COUNCIL This is the Collegial Body of Administration and Management. Its members are appointed by the General Assembly. Members 2004 - Jorge Unda (President), SENER - José Luis Osoro (Vice President), GAMESA AERONÁUTICA - Plácido Márquez (Secretary), ITP - José Ignacio Tellechea (Member), GOBIERNO VASCO - Javier Hernando.(Member), GOBIERNO VASCO - Román Arrasate (Member), AEROSPACE ENGINEERING GROUP - Francisco Larrea (Member), TECNICHAPA - José Juez (Managing Director), HEGAN

TECHNOLOGY COMMITTEE (COMTEC) Created in 1993, it is responsible for defining objectives relating to technological development, defined by the Management Board at an operational level, in order to increase the competitive age of the sector, by means of: - A constant observation of the technological/aeronautical environment - Promoting the conditions of the environment, and - Projecting this environment abroad. Members 2004 - Juan Miguel López Uria, BASQUE GOVERNMENT - Juan Ignacio Burgaleta / Javier Viñals. (Secretary) SENER - Plácido Márquez / José Luis Encinas, ITP - Rafael Pax / Iñaki Alti / Pedro Rey, GAMESA AERONÁUTICA - Iñaki Manero IONTECH - Ángel Alonso. NOVALTI - Alberto Fernández. SPRI - Juan Pedro Vela / Idurre Sáez de Ocáriz, CTA - Itziar Uribe, EITE - Estibalitz Erauzkin, EITE-INASMET - José Antonio Tárrago. UPV-EHU - HEGAN representative

QUALITY COMMITTEE (CECAL) Set up in July 1988, the aim of this Committee is to provide guidance in efforts aimed at enhancing the quality of the products and management of companies in the Cluster. Members 2004 - Iñaki Cortijo, BASQUE GOVERNMENT - Jesús Murga.(Secretario), ITP - José Ramón Muro, GAMESA AERONÁUTICA - Pedro María Mugarra, SENER - José Antonio Castaño, MESIMA - José María Ruiz, NUTER - Juan José Urrutia, BURULAN - HEGAN representative INTERNATIONALISATION COMMITTEE (COMINTER) Set up in 2003, it aim is to promote and evaluate the range of activities that companies in the Association carry out in the area of internationalisation on a cooperation basis. Members 2004 - All associate companies - HEGAN Representative HUMAN RESOURCES COMMITTEE Is aim is to define and promote activities to improve the management of personnel in associate companies. Members 2004 - Garbiñe Urrutikoetxea, GAMESA AERONÁUTICA - Arantza Hallet, ITP - Julián Rodrigo, SENER - HEGAN Representative

3 - Summary of HEGAN’s activities In 2004, the Aeronautics and Space Cluster of the Basque Country - HEGAN - pursued the objectives set out in its 2002-2004 Strategic Plan and performed a large number of additional activities considered to be of interest to this sector. As in the case of the other Cluster Associations of the Autonomous Community of the Basque Country, HEGAN has drawn up its strategic plan with a 2015 planning horizon, in line with the “Basque Country Competitiveness Forum 2015”, an initiative promoted by the Department of Industry, Commerce and Tourism of the Basque Government, which has allowed the preparation of the 2005-2008 strategic plan for the sector and association.

3.1 ACTIVITIES IN THE AREA OF TECHNOLOGY ECARE Project In the field of technology, HEGAN’s activities in the European ECARE project are of special interest. This association is a member of the consortium that is promoting the project and is leader of the consortium in the Spanish State. This project, included within the 5th European Framework Programme, is a pilot scheme for the 6th Framework Programme. The aim is to promote, together with other European regional aerospace associations, the participation of SMEs in integrated aeronautics projects (IPs). ECARE has become a practical and useful tool and, as a result of results obtained after the second call of the 6th Framework Programme, has earned the praise of the European Commission. Following a proposal presented by HEGAN, the BAIE association (Barcelona Aeronautics and Space), which is doing excellent work among SMEs in Catalonia, is a partner in this project, working in perfect synchronization with HEGAN and the ECARE project. Moreover, HEGAN has continued to work within frameworks of collaboration and coordination with Spanish and European representatives of the SCRATCH and AEROSME projects, which are the other two measures included in the 5th European Framework Programme, which aims to involve SMEs in European R&D projects.

In addition to providing information about the project, the key activity of the ECARE project is the preparation of a questionnaire (Mapping Questionnaire) designed to regulate the applications made by SMEs to the leaders of the IPs and to facilitate the work of selecting participants. This year, HEGAN will continue preparing mappings for the third call of the 6th Framework Programme, and will encourage SMEs to take part in the IPs as well as controlling and assessing the progress of the Project.

AEROTRENDS 2004 One of the major activities pursued by HEGAN in 2004, was the organisation of the International Conference: New Manufacturing Trends– AEROTRENDS 2004–. The organisation of this event included all those aspects required to bring this, the third international conference, to a successful conclusion: logistics, administration, promotion, operations and technical aspects. On this occasion, HEGAN was responsible for the Secretariat of the Technical Committee and it is interesting to note the large number of entities that took part in the selection of subject matter and speakers: INASMET (a collaborator since the 1st Conference) AEROTEAM, CTA, FATRONIK, GAMESA AERONÁUTICA, IDEKO, ITP, SENER and TEKNIKER. Without their support, the success of the conference and the favourable response of delegates from the Spanish and European sectors would not have been possible. But we should not forget either all those entities that have helped us at a financial level: BASQUE GOVERNMENT, MINISTRY OF EDUCATION AND SCIENCE, PROVINCIAL COUNCIL OF BIZKAIA AND BILBAO CITY HALL; as well as the corroboration of ATECMA (Spanish Association of Aerospace Materials Manufacturers) and ASD (European Association) in its dissemination and promotion, With the presence of more than 30 speakers from different countries, the conference, which aimed to provide the aerospace industry with the opportunity to discover the latest trends in the manufacture of aeronautical products and to make them more competitive, was a great success. Likewise, with this activity, HEGAN contributes to a greater collaboration between agents in the sector at an international level, converting the Basque Country into a meeting point at the service of the international aeronautics sector.

10th anniversary of the COMTEC Also in 2004, the Association celebrated the 10th anniversary of the COMTEC, Technology Committee of the Cluster Association. This was the first committee, set up in 1983, to promote this sector and creation of HEGAN. The committee was formed by some of the key figures involved in the creation of HEGAN, such as Joseba Jaureguizar, Technology and Society of Information Director of the Basque Government, and all those persons who had made the creation of the Aeronautics and Space Cluster Association of the Basque Country possible with their work, were remembered.

Moreover, there were a large number of activities in this area of technology in 2004: preparation of European projects (AEROSFIN), technology conferences, visits by companies to explore potential collaborations, the training of workgroups to promote market surveys and business groups and the preparation and publication of the sector’s Technology Surveillance Bulletin.

3.2 ACTIVITIES IN THE AREA OF MANAGEMENT QUALITY

The concern within the Basque aerospace sector about quality issues and the large number of standards and certifications in existence at the time, led the association to promote the development of its own quality standard by bringing together the criteria of the ISO 9000:94 standards, on the one hand, and those of the European and American aerospace industries on the other. The standard, called HEGAN 9000, which was created from within the Cluster as the result of a collaboration between its member companies, has been used as a reference for the certifications of the Basque Aeronautics industry and has placed the Association in a very advantageous position in view of the adoption by the international aeronautics industry of the compulsory international standard, the EN 9100. The EN 9100 standard adds about 80 specific aerospace requirements to the ISO 9000/2000 international standard, as well as 18 extensions to paragraphs of the ISO 9001:2000 standard. 2003 was a year of consolidation for the EN 9100 aerospace quality standard. At the end of 2004, 84% of HEGAN companies were already certified and the rest expect to obtain certification before June 2005. These figures are eloquent proof of the fact that HEGAN associated companies are among a leading group of firms both in Spain and at a European level. Within this quality promotion strategy, last November 10, HEGAN and ITP, the company responsible for the Quality Committee Secretariat, organised a meeting in Derio – next to Bilbao airport – to present details of the forthcoming implementation of the NADCAP certification system of special processes to suppliers of the main aerospace manufacturers in the Spanish state. The clearest testimony to the commitment of the Basque aerospace industry to quality is its participation as full member in the EAQG (European Aerospace Quality Group) and its acceptance to organise a meeting of the Group in Bilbao, which took place in February 2005.

The hosts of this event were also HEGAN and ITP, representative of the Basque Aerospace industry in the EAQG quality group. The aim of this meeting was to examine the strategy of the European sector and to review the progress of the initiatives put into motion for the next meeting of the IAQG, which took place in April 2005 in Amsterdam. The meetings of the IAQG (Internacional Aeroespace Quality Group) are organised in accordance with the three sectors into which this international group, created in 1988, is divided, represented by European members through the EAQG, American members (AAQG) and AsiaPacific members (APAQG). In total, about 60 aerospace companies, representing the full range of aerospace activities from all over the world take part in the IAQG.

The purpose of these sessions of the IAQG is to pursue initiatives that represent significant improvements in quality, safety and cost efficiency in the supply chain through the establishment of co-operation activities that aim to create a sense of trust between international aerospace companies. To do this, they establish: • Common standards and requirements. • Continuous improvement processes for products and processes throughout the supply chain. • Methods to share results. • Implementation plans to carry out the initiatives as these emerge. The meetings of the EAQG are held twice a year in different European locations, and attendance figures at the Bilbao meeting beat all previous records, with 15 representatives of virtually all the European companies in this sector, above the average figure for these meetings, which stands at around 35 delegates.

Shortly after the creation of the Association, HEGAN set up a Quality Committee in order to provide companies belonging to the Cluster Association with guidance on issues relating to the quality of their products, services and management systems.

3.3 ACTIVITIES IN THE AREA OF INTERNATIONALISATION

In accordance with the desires of its member companies, HEGAN has dedicated a great deal of its time to promoting its activities in the field of internationalisation, and this has helped this Association to consolidate the presence of the Basque Aeronautics sector. To do this, HEGAN attends trade fairs, promotes the Basque Aerospace sector and consolidates its relations with other sector associations through meetings, trade missions and visits, as well as international conferences and events. Workgroups have been created and contacts have been established at an institutional level. Relations with key regions for this sector have been strengthened and HEGAN had attended meetings held by regional European Aerospace associations, organised by ASD, the European sector association.

HEGAN was invited to speak about our Cluster, and was well received by all the delegates who attended. 7E7 CONFERENCE. Visit by BOEING executives (Bilbao). HEGAN organised a visit by representatives of BOEING to the Basque Country in order to demonstrate our potential as suppliers for the 7E7 programme (now called the 787). After visiting the most representative production facilities of our industry, BOEING gave a talk about its supplier policy and presented the programme for the new 7E7 aircraft (January 2004).

TRADE FAIRS AND CONFERENCES AIRCARGO FORUM 2004 (Bilbao). This biennial international transport, logistics and air cargo fair, which was held for the first time in Spain, was hosted by VIAS (Vitoria Airport Development Agency). This international fair deals with air cargo at a world level. HEGAN and its companies have collaborated in its promotion and both HEGAN and ITP participated with their own stands. FARNBOROUGH 2004 biennial International Aeronautics Trade Fair (Farnborough-London). This is one of the largest aeronautics fairs in Europe and, due to the good relations that exist between HEGAN and WALES AEROSPACE, this association took part in the stand belonging to the Welsh aeronautics industry. This British association was kind enough to provide its partners in the COAST project, HEGAN and ADOUR COMPETITIVITÉ, with space on its stand and the chance to use its meeting rooms. ILA 2004. International Aeronautics Fair (Berlin). HEGAN took part with its own stand at this biennial fair, which it had attended on two previous occasions.

IRCs CONFERENCE (Pescara). Workshop organised by the Central Units of the IRC-IRE (Innovation Relay Centre - Innovation Regions in Europe) about the importance of clusters as a key to innovation at a regional level. At this conference,

ATLANTIC LOGISTICS FORUM, EuskadiAquitania Logistics Fair (Bilbao). Within the “Atlantic Arc” project, HEGAN took part in this trade fair with its own stand. 1st DEFENCE SECTOR MEETING, 2nd TECHNOLOGICAL DEVELOPMENTS MEETING (IFE) and 1st AERONAUTICS INDUSTRY MEETING. Specific conferences on the Aerospace Sector, organised by RECOLETOS and the IFE (Business Promotion Institute - Madrid). HEGAN took part in these sector meetings and at one of these attended in representation of the Industry Department of the Basque Government. PROFESSIONAL MEETINGS AND TRADE MISSIONS QUEBEC CONFERENCE. Professional meetings between companies from the regions of Quebec and Midi-Pyrénées, (Toulouse). As a result of the excellent relations that HEGAN maintains with the trade offices of Canada and the Quebec region, the latter invited companies belonging to

AEROLINK 2004. Professional meetings in Wales organised by WALES AEROSPACE (Cardiff). HEGAN provide assistance for three associate companies in interviews with Welsh contractors and suppliers and a number of French suppliers. They also had the opportunity to visit AIRBUS UK and BRITISH AIRWAYS production facilities, among others. AEROMART 2004. Professional meetings of European aeronautics companies, (Toulouse). In the space of only two days, HEGANâ&#x20AC;&#x2122;s stand was the venue for about 70 interviews between nine of our associate companies and aeronautics contractors from all over Europe. Within the COAST project, a trade mission led by French heat treatment specialists was arranged in order to encourage co-operation between them and Basque companies in this sector. CESA trade mission. Visit by CESA executives (Bilbao). HEGAN organised a presentation by CESA executives of the purchasing policy of this company, engaged in the manufacture of integration of systems and equipment for aircraft.

During this session, 14 entities had the opportunity of holding talks with this customer to demonstrate their capabilities. In total, almost all the associate companies and a large number of the entities that form part of the Aeronautics and Space Cluster of the Basque Country have taken part in all the aforementioned activities. We might add that more than 70 entities have joined HEGAN in these activities and one hundred sales and business meetings have been held at all these events. COAST PROJECT Once again, the Cluster took part in the COAST project, financed by INTERREG IIIB, in the Atlantic space programme. The regional associations taking part in this project (ADOUR COMPETITIVITĂ&#x2030;, WALES AEROSPACE and HEGAN) aim to favour the establishment of commercial relations and co-operation between aerospace companies in the three regions. Within the framework of this project, in addition to the meetings described above, a trade mission by French heat treatment specialists was formalised in order to foster co-operation between them and Basque companies in this sector.

this Cluster association to take part in professional meetings designed exclusively for contractors from Quebec and suppliers from the Toulouse area.

3.4 GENERAL ACTIVITIES

During 2004, work has continued to give the Clusterâ&#x20AC;&#x2122;s web site (www.hegan.com) greater weight, efficiency and content. Accordingly, a number of forums have been activated. This is a system in which, with different and structured levels of access, a large number of entities representing a wide range of issues and areas can enter simultaneously. 2004 was HEGANâ&#x20AC;&#x2122;s first complete year as Associate Partner of ATECMA (Spanish Association of Aerospace Material Constructors) and excellent relations are maintained with BAIE (Barcelona Aeronautics and Space). HEGAN enjoys an increasingly close and fruitful collaboration with both entities. There have been further contacts with key entities in the sector at a state level such as ISDEFE (Industrial Cooperation Office) and AFARMADE (Spanish Association of Armament and Defence and Security Material Manufacturers); and European entities such as ASD (Aerospace and Defence Industries Association of Europe), Ministries and the European Commission. Clearly, the magnificent relations with the Department of Industry, SPRI, other Clusters and local authorities continued throughout 2004. In 2004, HEGAN has optimised the use of the media with its press releases and interviews and has adopted measures to safeguard the information provided by users under the terms of the Data Protection Act.

With regard to training, we should highlight, once more, the collaboration of our companies in the Aeronautics Technologies Specialisation Course given by the Bilbao Engineers School (ESIB) in the form of internship programmes and course assessment. This course was designed by the Basque companies in this sector and the ESIB in collaboration with the (at that time unique) Higher Aeronautics Engineers School (ETSIA) which belongs to the Polytechnic University of Madrid, which celebrated its 75th anniversary in 2003. The aim of the course is to cover the specific needs of the sector in an academic manner but, especially, with regard to the real situation of companies. As in previous years, HEGAN attended the diploma ceremony.

Among the logotypes of HEGAN companies that appear at the end of this Report, there are two new ones, PCB and MICROFUSIÓN DE ALUMINIO, who joined the association in 2004. Last year, the 2005-2008 Strategic Reflection, which has a 2015 planning horizon, established the bases for future operations both of the Association and the Basque sector, representing an important step in HEGAN’s development. This document has been used to identify the challenges faced by the Basque Aerospace sector and the measures to be taken by all the agents involved in the sector for its success in the future. During this reflection, relations with the Telecommunications Cluster (GAIA) have strengthened, as shown by the joint analysis made by both associations and the unique result of the reflection to encourage our companies to become involved in avionics activities.

Finally, we wish to acknowledge the efforts made by all members of the Strategic Committee who have worked together with HEGAN and SOCINTEC personnel. Without their invaluable input, this strategic reflection on the sector and association would have been impossible. These persons and their companies are as follows: Joseba Cano, AEROTEAM Juan Pedro Vela, CTA Eduardo Junkera, DMP Pedro Rey, GAMESA AERONÁUTICA Plácido Márquez, ITP Alberto Ortiz de Mendibil, METRALTEC Alberto Badiola MICR. DE ALUMINIO Juan Ignacio Burgaleta/Javier Viñals, SENER Juan José Ayo, UPM We wish to express our sincere gratitude to all of them and to all the companies and entities who have taken part in the reflection process through interviews and meetings

Also in 2004, in co-operation with SENER and the technology centre INASMET, the association has sponsored and promoted the book entitled “Space”. This book, with a prologue by the Spanish astronaut Pedro Duque, was written by the journalist Ángeles Rabadán with contributions by experts from the Spanish space industry. The book explains, in the form of questions, the current situation and development of space exploration activities in the world and, in particular, in Spanish industry.

4 - Summary of the activities of associate companies 4.1 AEROSTRUCTURES 4.1.1 Large aircraft AIRBUS HEGAN companies are currently involved in the following projects for Airbus, the most important manufacturer in Europe. GAMESA AERONÁUTICA is responsible for the design and manufacture of prototypes and for the production of the metal structure of Section 19 for the fuselage and leading and trailing edges, as well as the joining elements of the boxes of the horizontal stabiliser for the Airbus A380 aircraft. In 2004, GAMESA AERONÁUTICA redesigned part of the structure, obtaining a major reduction in weight and modifications were made as a consequence of the new loads. The production line was ready to construct aircraft number 5, which was delivered to AIRBUS Spain’s facility at the beginning of 2004. For the same aircraft, GAMESA AERONÁUTICA performed development tests on the horizontal stabiliser units, with satisfactory results and without exceeding their ultimate breaking point. Since then, GAMESA AERONÁUTICA has delivered 8 metal structures for Section 19, making a total of 12 aircraft since the beginning of the Programme, and units for five horizontal stabilisers. SENER completed the design of composite material panels for the front and rear sections of the A380 “Belly Fairing”. This component, manufactured by SACESA, has been successfully installed on the final assembly line of the AIRBUS in Toulouse. NOVALTI developed the manufacturing engineering for the metal parts of landing gear mechanisms for the A380. The company delivered a number of different components and sub assemblies to EADS-CASA for the series 2 and 7 aircraft. Likewise, it developed a number of modifications to the design of new parts and retrofitted previously delivered models.

NOVALTI has also developed the manufacturing engineering of metal parts for zone 5 of the ‘Belly Fairing’ for the Airbus A380, and has delivered a number of different components and sub assemblies to EADS-CASA for series 1 to 7 aircraft.

Besides continuing with its machining, bodywork, paint and heat treatment processes, METRALTEC extended its range of services to include the manufacture of a number of small assemblies and robotised microplasm welding. METRALTEC is supplier for the AIRBUS, A310/320/340 and 380 programmes. AEROTEAM, the company engaged in the design, programming and machining of aerospace parts and tooling, has supplied a number of different parts for the Rudder and Elevator of the A380, strengtheners for section 19, supports for the fuel tank, FTI accessories of the hydraulic MLGD unit. In addition to moulds for composite materials, the company has developed a number of special edging and drilling tools. ARATZ continued to generate closer links with this sector, with the manufacture of carbon steel, aluminium and invar curing tools for the AIRBUS A320, A340 and A380. BURULAN, a GAMESA AERONÁUTICA subcontractor, engaged in the machining and manufacture of components with CNC lathes and machining centres of up to five axes, has participated in the AIRBUS A320/380 programmes. For this last project, in 2004, BURULAN acquired new five axes machining centres. Mecanizados ASTORKIA, specialised in complex machining processes, consolidated its contribution to this sector by machining structural parts for the AIRBUS A380 programme. For its part, NUTER continued to supply parts in 2004 for the landing gear of the AIRBUS A310/320. In 2004, SIEGEL broadened its activities with the manufacture of high-precision machined components for AIRBUS A318/320/380.

AIRBUS A380

BURDINBERRI was engaged mainly in turnkey projects for the manufacture of aeronautics tooling, metal elements and the automation and robotisation of assembly processes. The large dimension tools, which it sells directly to AIRBUS for the A320/330/340 and 380 programmes, are of special interest.

SPASA, who provides overall solutions in the aeronautics sector and has optimised its capacity for the production of structural components by developing its engineering and assembly system, manufacturers machined aluminium parts for the belly fairing in the A380 programme.

MESIMA is specialised in special cutting systems and in the management and qualitative reception of materials and supplies raw materials (and preforms) in aluminium, titanium and steels to several subcontractors. In 2004, it managed raw materials for GAMESA AERONÁUTICA for its work on the A380, and for EADS it carried out 2D and 3D water cuts for a number of different parts of the A340 and A380. AEROMEC, specialised in the machining of titanium and other special alloys, uses its experience in the energy generation sector (manufacture of centrifugal compressors for gas turbines or the grinding of curved gear teeth) to strengthen its offer for the aerospace sector, such as for the A320 and A380 programmes.

BOEING Every year sees an increase in the work HEGAN companies do for this, the largest American manufacturer. In 2004, GAMESA AERONÁUTICA, began work, together with BOEING’s design team, on the structure of the 747 “Large Cargo Freighter”, a modified 747-400 passenger which will be used to transport large structures of the new BOEING 787 Dreamliner. The larger perimeter of the future Large Cargo Freighter will allow it to carry 300% more cargo on the main deck than the largest cargo aircraft currently in regular service, the 747-400. The Large Cargo Freighter” is expected to be certified in 2006. GAMESA AERONÁUTICA has thus become the first Spanish supplier for the 787 Dreamliner programme, and is working with Boeing on the engineering analysis and development of the “swing zone,” the critical section of the Large Cargo Freighter. The “swing zone” is a very complex structure through which the rear fuselage opens to allow the large composite material structures of the 787, such as the wings or fuselage, to be loaded and unloaded. BURDINBERRI also has a presence in BOEING’s 737 programme as supplier of aeronautics tooling.

MICROFUSIÓN DE ALUMINIO is engaged in the manufacture of aluminium and super alloy parts by means of casting and 1 AEROTEAM, 2 BURDINBERRI, 3 GAMESA, 4 UPM 13

Tratamientos Térmicos TTT, one of the leaders of the national heat treatment and surface treatment subcontracting market, recorded considerable growth in the aeronautics sector, and continues to be present in all the civil programmes of AIRBUS, A300/318/319/320/321/3 30/340 and 380.

investment casting process, which allows great liberty of design. The company’s wide range of services, which include rapid prototyping, investment casting, machining, treatment and painting, allow them to deliver completely finished parts for the AIRBUS, A300/310/320/340 and 380 programmes.

4.1 AEROSTRUCTURES 4.1.2 Regional civilian aircraft ERJ 145 FAMILY, EMBRAER Eight years after certification, the programme now finds itself at an advanced stage in its life cycle, characterised by a deceleration in sales. Firm orders and options for this family of Embraer aircraft reached 1340 units at the end of 2004, of which Embraer has delivered 878 aircraft to airlines all over the world. This family consists of the ERJ 135, ERJ 140, ERJ 145 LR and ERJ 145 XR commercial passenger aircraft, “Legacy Executive” and “Legacy Shuttle” (executive transport) and others used for defence activities. GAMESA AERONÁUTICA is a risk partner in this project, having taken part in the development and certification of these aircraft and today is responsible for the manufacture and maintenance of wings, control surfaces, engine housings, air inlets and thrust reversers for all the models in the family. All are equipped with their corresponding systems and are ready for incorporation into the aircraft. In 2004, GAMESA AERONÁUTICA delivered assemblies for 103 aircraft to EMBRAER bringing the total number of deliveries to 896 in 9 years, without including spare parts.

ERJ 170/190 FAMILY, EMBRAER The 170 is the first of the family made up of models 170/175/190 and 195 for the 70-110 passenger market segment. The first member of the new family was certified in February 2004. It came into service immediately and the company began to supply this aircraft to a number of airlines. At the same time, the certification campaign for different members of the family continued to make progress: Thus, in March 2004, the EMBRAER 190 with a capacity for 98 passengers, made its maiden flight only one month after the roll-out ceremony. Two months later, in May 2004, the second aircraft of this model joined the certification test campaign, which is expected to take place during the third quarter of 2005. The next member of the family to make its maiden flight was the EMBRAER 195, with a capacity of up to 108 passengers. This took place in July 2004 and certification is expected for

1 2 GAMESA AERONÁUTICA, 3 CRJ 900, 4 FAMILIA ERJ 170-190, 5 NUTER, 6 ASTORKIA, 7 METRALTEC

the second quarter of 2006. On the other hand, the EMBRAER 175 has been the subject of an intensive certification campaign during 2004, and this was obtained from the local authorities last December. Firm orders for the EMBRAER 170 amounted to 158, 155 for the EMBRAER 190, 15 for the EMBRAER 195 and 15 more for the EMBRAER 175 and 177, 230 and 20 purchase options respectively, were taken out, representing a promising start for this recently certified aircraft. The first 46 units of the Embraer 170 were delivered to operators during 2004. 1 GAMESA AERONÁUTICA has played a part in the Programme since the beginning, and is responsible for the development (design, calculation and certification) of the rear section of the fuselage, horizontal and vertical stabilisers with their corresponding elevators and rudders. In this sense, GAMESA AERONÁUTICA continued work on the development of the different models that make up the family, and is responsible for their certification. In 2004, GAMESA AERONÁUTICA delivered assemblies for 67 aircraft, thus completing a total of 99 aircraft already delivered for this new family.The work was done at the GAMESA PRODUCCIONES AERONÁUTICAS (Vitoria), FUASA (Berantevilla, Alava) and MOASA (Vitoria) production facilities. 2 BOMBARDIER CRJ700/900

GAMESA AERONÁUTICA develops and manufactures the horizontal and vertical empennages, including depth rudders for this family of aircraft, the customer and final integrator of which is the Canadian company BOMBARDIER. GAMESA AERONÁUTICA delivers complete products, including the corresponding functional tests and accessories to ensure correct assembly.

During 2004, GAMESA AERONÁUTICA delivered 50 aircraft at an average rate of four aircraft/month. In this way, a total of 52CRJ700 and 15 CRJ900 were delivered to airlines during the last financial year. Compliance with the delivery schedule set by GAMESA AERONÁUTICA, through its Seville-based company, EASA del Sur, and the final integrator, BOMBARDIER, reflects a sound industrialisation of the programme with regard to produc6 tion means and methods. BOMBARDIER congratu5 lated the company for the high marks it has achieved both for quality and compliance with delivery dates. The sales of these aircraft reached a total of 267 firm orders for the CRJ700 and 45 for the CRJ900 with a total of 178 and 25 aircraft, respectively, already delivered to a number of airlines. In 2004, AEROMEC, ARATZ, BURDINBERRI, BURULAN, MECANIZADOS ASTORKIA, MESIMA, METRALTEC, MICROFUSIÓN DE ALUMINIO, NUTER, SPASA, and Tratamientos Térmicos TTT took part in the EMBRAER and BOMBARDIER programmes and supplied tooling, machined and sheet metal components, and heat treatments to GAMESA AERONÁUTICA.

1 2 GAMESA AERONÁUTICA, 3 CRJ 700, 4 SPASA, 5 ERJ 135, 6 SIEGEL

4.1 AEROSTRUCTURES 4.1.3 Business aircraft and general aviation With regard to business aircraft, Basque companies are already working on the new DASSAULT FALCON 7X, which is expected to come into service at the end of 2006, as it is yet to complete the maiden flight, testing and certification stages. SIEGEL manufactures structural components, AEROTEAM has manufactured PEAU tooling and BURDINBERRI has also supplied tooling. ARATZ has also manufactured tooling form complex materials for general aviation aircraft made by the company EADS-SOCATA, heir to the firm Morane-Saulnier. 1

4.1.4 Defence sector aircraft A400M In March 2004, GAMESA AERONÁUTICA signed a contract for the development and production of stringers for the A400M. GAMESA AERONÁUTICA designs and manufactures 2 these parts in composite materials, through its sister company in Orense, COASA, and through its participation in this programme, has added a new item to its range of products with a high technological content. Another of the associate companies also linked recently to this programme is UPM, who offers products and services based on a high content of development engineering of aeronautics tooling. 3 EADS CASA C-212 In 2004, GAMESA AERONÁUTICA continued to perform its commercial agreement with EADS-CASA for the assembly of the complete fuselage of the

1 ARATZ, 2 SPASA, 3 AEROTEAM

C-212 aircraft. The main assembly of large units is carried out by GAMESA AERONÁUTICA through its sister company, EASA del Sur in Seville. Thus, during the year 2004, 3 fuselages were delivered to the San Pablo facility where EADS-CASA completes the assembly of the aircraft and its delivery. On several occasions, EADS-CASA has expressed its satisfaction with the work done by EASA del Sur in the assembly of its fuselages. EADS CASA C-295 GAMESA AERONÁUTICA manufactures and assembles the engine cowling for this transport aircraft through its company ICSA. AEROTEAM has made moulds for composite is as well

as riveting tools and SPASA has made parts for the ramp and door. Other partners in these EADS-CASA programmes are MICROFUSIÓN DE ALUMINIO, NUTER, SIEGEL and Tratamientos Térmicos TTT. OTHERS Other defence programmes and other companies associated with HEGAN who took part in these programmes in 2004, include the following: BURDINBERRI, NUTER, SPASA, Tratamientos Térmicos TTT and MESIMA work for the EF2000); AEROTEAM, SIEGEL, Tratamientos Térmicos TTT and SPASA work for the MRTT; SPASA is working on the P3B Orion and the BOEING AWACS; and ARATZ is working on DASSAULT AVIATION defence aircraft.

4.1.5 Helicopters SIKORSKY S-92 In 2004, Sikorsky Aircraft Coorporation continued to develop its sales campaign for this helicopter. The S-92 is available in different configurations for a wide range of operating scenarios, from commercial passenger and VIP transport, to military, rescue operations and transport to maritime oil rigs. Its proven capabilities place it ahead of other helicopters available on the market. GAMESA AERONÁUTICA is a member of the international consortium engaged in the design and production of this helicopter; GAMESA AERONÁUTICA’s contribution includes the design, certification, and production of the turbine support structures, firewalls, upper fuselage structures, fuselage transition section, tail cone and horizontal stabilizer, as well as interiors. During 2004, structures for 10 helicopters were delivered by companies in the GAMESA AERONÁUTICA Group. BURDINBERRI, BURULAN, MESIMA, METRALTEC, NUTER, Tratamientos Térmicos TTT and SPASA, continued to work on the SIKORSKY programme. For its part, the last of these, SPASA, is working on a number of different helicopter projects for BOEING.

1 SIKORSKY S92, 2 BURULAN, 3 BURDINBERRI

4.2 ENGINES 4.2.1 Civil sector engines Industrial capacity being lower than demand at the present time, in 2004, orders for large jets (which represent most of ITP’s work) exceeded by 21% those for 2003,. Not all engine manufacturers have grown at the same pace, however. The most successful were CFM, IAE and Rolls Royce, who have sold large numbers of the TRENT 700, 500 and 1000 in which ITP is taking part. With regard to this company’s order books, the TRENT 500 and 900 engines will be responsible for a major increase in workload over the coming years. As a result, in 2004 and for the first time in ITP’s history, its market share exceeded 10%. In other words, 10.6 of every 100 turbines sold in the world will be manufactured by ITP, a major milestone for a company that represents only 1.8% of the European aeroengine sector. ROLLS ROYCE In the civil engine sector, ITP’s participation in Rolls Royce’s TRENT family of engines is of special significance. The success of this collaboration, which has grown since the first engines of the family (TRENT 700 and 800) were manufactured, has allowed ITP to consolidate its position as a supplier of lower pressure turbines both from the technological and commercial viewpoints. In this way, the company has developed from the manufacture of housings and the final assembly of modules (TRENT 700 and 800), and is now responsible for designing and supplying the complete low pressure turbine (TRENT 500, 900 and 1000), as a risk-profit partner of Rolls Royce, the number one European manufacture and number two world aviation engine manufacturer. ITP is responsible for the assembly of lower and intermediate pressure turbine modules. Last year, a total of 70 modules were delivered for the TRENT 700 and 38 for the TRENT 800. The company also manufactures compressor housings. Due to the commercial success of the TRENT 700, which is fitted to the Airbus A330 aircraft, 2004 saw an increase in production of this item. ITP has a 10% stake in the TRENT 500 project, and is responsible for the design and manufacture of the low pressure turbine module. The Airbus

1 IAE v2500, 2 ROLLS ROYCE TRENT 500

1 A340-500 and 600 are equipped with this engine and in the case of the new EP version (Enhanced Performance), whose low pressure turbine has been built with technology developed entirely by ITP, the improvement in fuel consumption makes Airbus A340-500 the aircraft with the longest operating range on the market with direct flights between Singapore and Los Angeles. In 2004, the year in which the EP version came into full production, ITP delivered 82 units, demand in the manufacturing area having increased by 6% more than forecasted. The Airbus A380, presented recently, and which is currently being made ready for its maiden flight, will be equipped with the TRENT 900 engine. 2

It is expected that this aircraft will come into service with Singapore Airlines at the beginning of 2006. At this time, engine production has begun in earnest in order to comply with delivery programme commitments. ITP, with a 16.7 % stake, is responsible for the design, manufacture and assembly of the low pressue turbine and the radial structure that supports the bearings (Turbine Bearing Housing â&#x20AC;&#x201C; TBH) of this engine and in 2004 a large number of bench tests were made. ITP delivered the corresponding development engine modules, with up to a total of 10 lower pressure turbine modules. Likewise, the engine was certified within the deadline set at the beginning of the programme and has successfully made its maiden flight in an Airbus A340 aircraft specially prepared for this purpose. ITP has supplied a total of 11 modules for in-flight test engines. The Boeing 787 aircraft will be propelled by the TRENT 1000 engine. According to the initial agreement, ITP will have a stake in the programme of around 11%, with responsibility for the design, manufacture and assembly of the low pressure turbine, also within a risk-profit agreement (RSP). The Boeing 787 is expected to come into service in 2008. This, together with the Total Care Agreement (the manufacturer takes responsibility for all maintenance and charges fees in accordance with the operation of the engine) for engine maintenance represents a major challenge. According to this agreement, the company undertakes to reduce the delivery dates and costs of its design and development programme and to improve the efficiency levels of its manufacturing processes. In 2004, engineering work was done for the conceptual design of the low pressure turbine in compliance with the demanding parameters established with regard to weight, unitary cost

1 and service, efficiency and noise. The technologies developed by ITP in national and European Community R&D programmes were of major importance and the expected use of ITPâ&#x20AC;&#x2122;s own design tools and new criteria such as noise, flutter and non orthogonal aerodynamics represents an important milestone in the companyâ&#x20AC;&#x2122;s history. ITP also manufactures exhaust conduits for the BR715 engine made by Rolls Royce Deutschland, which powers the Boeing 717 aircraft. In view of the limited commercial success of this aircraft, which is expected to complete production in 2005,

the workload was very low during the course of 2004, and this programme will be cancelled.

PCB (Precicast Bilbao), a company engaged in the casting and precision investment casting of stainless steels and super alloys based on nickel and cobalt, has supplied turbine blades, vanes and structural components for the TRENT 500 and 900 engines.

1 ITP, 2 ROLLS ROYCE TRENT 900

HEGAN companies such as AEROMEC, ARATZ, MICROFUSIÓN DE ALUMINIO, NUTER, SIEGEL, SPASA and TECNICHAPA manufacture components for TRENT 500/700/800/900 and JR engines. In 2004, NOVALTI continued work on a number of different pre-series components for the TRENT 900. In 2004, Tratamientos Térmicos TTT, who perform heat treatments for a range of different parts for these engines, initiated a new nitriding process according to the AMS2759/10 aeronautics standard.

NUTER is increasing its production of parts, especially in super alloys, for the last two of these companies.

MESIMA continues to do 2D and 3D water cutting jobs for ITP, within the TRENT 500 programme and AEROTEAM has supplied edging tools for TRENT 900 housings.

ITP has designed the lower pressure turbine for the AS900 engine, as well as modifications to generate different variations of this engine, also in a risk-profit association, with a 7.3% stake in the total programme. This family of engines powers regional transport aircraft and the VIP Bombardier-Challenger 300, and the first models equipped with this engine were delivered in 2004.

Tratamientos Superficiales IONTECH applies metal coatings by means of thermal plasma sprayed abradable coatings on housings, hoods and other engine components for the Rolls Royce TRENT 500/700/800/900, RB211 and V2500. Tratamientos Térmicos TTT, subcontractors of heat and surface treatments, with long experience in quenching and tempering, case hardening, high vacuum, carbonitriding, electroless nickel, etc., work for ROLLS ROYCE and ITP.

Likewise, IONTECH makes abradable coatings by means of thermal spray and plasma techniques on components (housings and hoods) for the TRENT 500/700/800/900, RB-211 and V2500 engines. HONEYWELL

During that year, production of turbine modules continued and the demand from Honeywell in the second half of the year was double that expected. This confirms the growth expected for this programme in which ITP has obtained major cost reductions.

1 MESIMA, 2 ROLLS ROYCE BR 715, 3 ITP, 4 IONTECH

GENERAL ELECTRIC, PRATT & WHITNEY AND SNECMA ITP also participates as a subcontractor in the GE90 project, the engine being developed by General Electric for the Boeing 777. This engine provides the largest amount of thrust in the world: 569 KN. ITP also manufactures internal and rear compressor housings. These were certified by the manufacturer last year for the first time and 14 units have already been delivered. 1

Likewise, LAZPIUR has done short precision machining runs for higher responsibility parts for ITP (blades, Allison compressors, housings), for almost all the modern civil engine programmes.

TECNICHAPA, engaged in specialised and precision boiler making, has increased its participation in the CFM56 programme with the engine manufacturer SNECMA, supplying a large number of brackets and with a new contract to manufacture parts for the exhaust case. This civil engine manufactured by SNECMA in several different versions, is used to power 2 aircraft such as AIRBUS A318/319/320/321/340 and BOEING 737-300/400/500/600/700. PCB has won major contracts for the supply of components for the last of these engines and for the GP7000, the engine that is to power the AIRBUS A380.

1 IAE v2500, 2 AEROTEAM, 3 TTT, 4 PCB

4.2 ENGINES 4.2.2 Defence sector engines EJ200 This engine, which powers the Typhoon aircraft (Eurofighter), is manufactured by the EUROJET consortium, in which ITP has an 18% stake. ITP designs, manufactures and develops the logistics support of the variable geometry nozzle, the housings of the bypass line and afterburner, the turbine cone and external elements (pipes and wire bundles). ITP has continued to work on the programme of changes and improvements, making substantial progress towards obtaining Full Operational Clearance (FOC), which completes the development process. Of special interest were the series of operational tests conducted on the aircraft under conditions of extreme cold (under -30 ÂşC) during the months of December and January at the Vidsel airbase in Sweden, demonstrating the excellent behaviour of the EJ200 engine under these conditions. A team of ITP mechanics and engineers were present during the testing of the engines in order to provide technical support. With regard to manufacturing, in 2004, ITP continued to deliver modules to the rest of its partners and 11 complete engines have been assembled for delivery to the Air Force. The certification obtained by ITP for its own titanium alloy chemical milling process is of special interest as it allowed the company to deliver the first afterburner housing unit manufactured entirely by ITP. In December 2004, the so-called Tranche 2 of engines was signed, involving a total of 519 engines from 2007 to 2011, for which ITP will manufacture modules under its responsibility and assemble a total of 72 complete engines for delivery to the Air Force. A number of HEGAN companies continued to work on the EJ200 engine. MESIMA supplied material, ARATZ, LAZPIUR, NOVALTI, NUTER and SIEGEL manufactured parts and diverse metal components, TECNICHAPA brackets and petals, AEROMEC titanium and Inconel rings of the gas expulsion nozzle, and Industrias TEY, Tratamientos Superficiales IONTECH and Tratamientos TĂŠrmicos TTT performed a wide range of heat treatments. TP400

The TP400 turboprop engine, designed and manufactured by the Euro Propulsion International consortium (EPI), formed by Rolls Royce, SNECMA, MTU and ITP and whose central headquarters are in Madrid, will power the future European four-engine military transport aircraft, the Airbus A400M. This aircraft is expected to come into service in 2008 and the first bench testing of the engine will be conducted in August 2005. In this engine, the most powerful turboprop ever

developed in the West until now, ITP participates as a manufacturing consortium partner with a 21% stake, being responsible for the design, development and manufacture of the low pressure turbine, the structural support of the front bearing, the turbine exit cone, the gas exhaust conduit and external elements (pipes and wiring). The Turkish company TEI, which represents ITP and takes responsibility for design, has undertaken the design of some of its components. ITP is also responsible for maintainability, the development of the logistics support for first level maintenance and the design and construction of an open-air testing bed for the engine-propeller unit. In 2004, ITP components were subjected to preliminary and critical design reviews. For the first time, this involved integrating of all the company’s areas of knowledge, including manufacture. SIEGEL took part in this activity by manufacturing components. The interface and method for installing the engine in the aircraft were also defined jointly with Airbus Military. Moreover, ITP has performed the conceptual design of the open-air test bench, drawn up the infrastructure project and chosen the location. MTR390Enhanced The MTR390 is a turboshaft engine, the new Enhanced version of which, with 14% more power compared to the basic model, will be fitted to the Tiger-HAP attack helicopter, manufactured by the Eurocopter consortium. This version will be developed and manufactured by the MTRI consortium, formed by MTU, Turbomeca, Rolls Royce and ITP. ITP will have a 25% stake in this consortium, being responsible for the design and supply of the power turbine and the inter-turbine diffuser. This project represents a technological challenge, both for design and manufacture, as the advanced features needed require a system to cool the turbine blades, for the first time in an ITP design.

launched. Preliminary design activities have begun and conceptual studies have been undertaken for the power turbine and inter-turbine diffuser. The process of transferring the manufacture of components from a number of consortium companies such as MTU and Turbomeca to ITP has also began. The manufacture of ITP components also represents a challenge as, due to the small size of the components, these fall outside the company’s manufacturing capability. F135 The F135 is a military turbofan engine which will be fitted to the Joint Strike Fighter (JSF), the American multipurpose vertical takeoff combat aircraft. Within this project and as a Rolls Royce subcontractor, ITP is responsible for the design of the stabilisation subsystem during vertical takeoff and landing manoeuvres (Roll Post System). ITP’s main activities during 2004 consisted of reviewing development checks and the modifications programme for the new IFR standards. It is interesting to note that the first testing of the engine with the Roll Post system, designed and manufactured by ITP, was performed in accordance with the schedule established for the certification of the engine in mid 2006. In addition to the Roll Post system, ITP also designed the pipes for the aircraft’s vertical lift fan as well as instrumentation for the development of this component. GEM, RTM, MTR, SPEY, ADOUR, PEGASUS and F414 Continuing within the defence engine subsector, ITP has done engineering work for Rolls Royce on turboshaft engines (GEM, RTM322, MTR390) and turbofans (Spey 807, Adour, Pegasus), and a wide range of activities such as checkability analysis, service life analysis, dynamic analysis, the design of air and heat systems, etc.; and for General Electric, within the F414 programme, the engine that will be fitted to the F-18 aircraft, manufacturing the lower pressure compressor housing. The company delivered a total of 110 units in 2004.

2004 saw the signing of the engine specification 3 and in December a letter of intent was signed allowing the development programme to be

1 EROJET EJ 200, 2 EPI TP 400, 3 TECNICHAPA

4.3 SPACE SENER plays a major role as the supplier of orbit and attitude control systems, mechanisms, control electronics and structures for probes and scientific exploration satellites, as well as equipment for the International Space Station. In December, the HELIOS 2 defence satellite was launched, for which SENER has supplied the spring-driven articulations for the deployment of instrument protective panels. These panels are supplied by EADS CASA Espacio. The satellite was successfully launched. For the ROSETTA probe, launched at the beginning of 2004, the company had delivered fifteen thermal control blinds for the satellite and protective screens for the star sensor and for two cameras. Moreover, both arms used for deploying experiments in orbit were actuated without problem. SENER also provided the electronic control module for the GIADA experiment on board the ROSETTA satellite, developed jointly with the Astrophysics Institute of Andalucia, as well as the electronic unit for the OSIRIS instrument. SENER played a major role in the development of the second generation of European meteorological satellites METEOSAT. In 2004, a protective screen and two ejectable covers for the main SEVIRI instrument, as well as the calibration mechanism for this instrument, were delivered for the fourth MSG satellite. The four units of the securing and aiming mechanism of the X manned antennas for the X-Star satellite, which SENER delivered in 2003 to Space Systems Loral, were installed in the satellite ready for launch in February 2005. Development also continued on the panel deployment mechanisms for the MIRAS radiometer (for which the main contractor is EADS-CASA), which will be fitted to the SMOS satellite. The structural models were delivered in October 2004

The PLEIADES programme consists of two satellites that will form part of a constellation in synchronous orbit with the sun and will ensure the continuous operation of the earth image service from the SPOT series satellites. SENER has continued to work on this programme in which it will supply the shutter mechanism to protect the high-resolution telescope and high stability detector support structures for two observation satellites. The main contractor is Alcatel Espace in France.

SENER is taking part in the development of two items for the GAIA astrometry mission. One of them is a parasol measuring 11 m in diameter, complete with its mechanisms, structure and heat shield, which must deploy after the satellite has been placed in orbit, providing the telescope with thermal stability. The other items involve a fine positioning mechanism of the secondary mirror of the telescope. In 2004, the design and manufacture of models was completed, ready for an exhaustive series of tests. In the technological programme, ESA has commissioned SENER to develop a compact, precision rotary actuator for a wide range of uses. In 2004, the company designed and made progress in the manufacture of the first unit, which will be subjected to intensive tests. It is also interesting to note that SENER has joined the AURORA programme of the ESA which aims to relaunch the exploration of the solar system, both in manned flights and with automatic probes. SENER will define the system and mechanisms used to pick up the sample container carried by the vehicle on the return trip to planet Earth. Moreover, in addition to developing the Attitude and Orbit Control Subsystem for the ConeXpress Orbital Life Extensión (CX OLEV), whose mission is to prolong the operating life of telecommunications satellites in geostationary orbit, once the fuel stored on board is used up, SENER has a financial stake in the company Orbital Recovery Limited, the company that developed the vehicle. A number of HEGAN companies contribute added value to the work of SENER in several space programmes. SIEGEL manufactures complex machined components, MESIMA supplies raw materials and Industrias TEY performs heat treatments. SPASA does detailed design, calculations and structural analysis, definition of test protocols, both at source and on-site integration and tests for the ELMER instrument installed in the “Gran Telescopio de Canarias” (GTC), designed to make observations of the sky with different modes of operation depending on the scientific objective. NUTER collaborates with SENER in the following projects and programmes: ANTENA

PHOENIX, ENTRY BAFFLE COVER parts –MODEL FM4-, OPTICAL BENCH ASSEMBLY, XEUS and FSL SS. AEROTEAM has manufactured the Launch Vehicle Adaptor and the Coupole MVS for the THEOS satellite, and has developed moulds, tools, assembly structures and prototypes. NOVALTI’s turnover in the space subsector continued to increase in 2004 and represented its most profitable range of new and established products, making this company one of the most advanced companies in this subsector. NOVALTI has developed, manufactured, checked and tested a number of different components and pieces of the group meant for the payload for the fourth generation Arabsat 4-A and B satellites, which belong to the Arabsat programme whose “prime contractor” is EADS Astrium. Both satellites will be placed in a position 26º East, with the other Arabsat satellites. They will be used to increase and optimise the capacity for live transmission of television, telephony and the transmission of data by the telecommunications organisation of the Arab League, covering North Africa, the Middle East and part of Western Europe. NOVALTI have delivered 24 Channel equipment for the C and Ku bands of Arabsat 4-A, while for its sister satellite Arabsat 4-B, 36 channel equipment have been delivered, all of them in Ku band, dedicated to Fixed Satellite Services and for satellite transmission services. This contract, won by a European team led by EADS Astrium, is the result of many years of collaboration by NOVALTI in a number of different Arabsat projects. With the exception of the first generation, developed in the eighties when NOVALTI had still not begun to work in this sector, the company’s presence has increased dramatically in the second generation with Arabsat II in the early Nineties, and in the third generation of this family of satellites with Arabsat III A and B at the end of the last decade.

and performed several different tests on filters, equalisers and other systems to complete the 24 channels in Ku Band and other channels in C Band of Galaxy 17, to offer telephone and television transmission services for North America over the next 15 years. During 2004, NOVALTI completed the manufacture of different flight equipment for the Koreasat 5 satellites for the company KT Corporation (formerly Korea Telecom) and for the Korean Agency for Defence and Development (ADD) to be fitted to what will be the first civil communications satellites in South Korea. To do this, the company has used the latest technologies and designs, especially with reference to broadband payload, in order to satisfy the criteria and requirements of the programme. The payload developed and manufactured by NOVALTI, consists of a number of different equipment for 36 channels in the Ku and C bands, which will provide broadband access to multimedia contents and digital television services, as well as traditional communications services to operators in the AsiaPacífic region. Also in 2004, NOVALTI completed the manufacture of a number of different pieces of equipment and components, developed and designed during 2003 for the pan-African satellite service operator RascomStar, promoted by the RASCOM consortium (Regional African Satellite Communication Organization) which groups 44 operators in different African countries, in order to ensure that the first African telecommunications satellites to cover the entire African continent will be operative in 2006. NOVALTI’s participation in this programme covers all the components for the different communications channels in the system, consisting of 12 in Ku Band and 8 in C Band. The first models were developed and manufactured in 2003. This satellite will provide fixed voice (with rural terminals that operate with solar energy), Internet access, as well as broadband access to different satellite services. HERSCHEL-PLANCK PROJECT The Herschel-Planck project, one of the most ambitious scientific programmes of the ESA, is the name given to two satellites: Herschel and Planck. - Herschel is a continuation of the Infrared Space Observatory launched in 1995. For the first time, Herschel will allow astronomers to study the formation and development of Galaxies and stars from the creation of the universe in a

In 2004, NOVALTI also delivered a number of different pieces of equipment and components for the new satellites of the American PanAmSat operator. Called Galaxy 17, it is the first satellite built by Europeans for the extensive fleet of PanAmSat, which is one of the largest suppliers of satellite communications services in the world, covering areas like the USA, Latin America, Africa, Europe, the Middle East and Asia. During 2004, NOVALTI designed, developed, manufactured

submillimetric waveband. This will be the largest space telescope ever instructed with a primary mirror measuring 3.5 metres in diameter. - Planck will provide us with a better understanding of the origin and development of large structures in our universe, just after the “Big Bang”. It will measure the temperature fluctuations of the cosmologic spectrum with an unprecedented resolution and sensitivity. Herschel and Planck will be launched together in 2007, on board the Ariane 5. Nevertheless, they will separate just after launch so that they can be controlled individually. They will be positioned in separate objects around a virtual point called “Second Lagrange Point”, at an average distance of 1.5 million kilometres from earth. Once the design and equipment supply stages had been completed for the AOCS (attitude and orbit control system) of both satellites, SENER began the AIT stage (Assembly, Integration and Test) of all the specific requirements for these subsystems. SENER has delivered both models (qualification and flight) of the Optical Bench Assembly (OBA) for the Herschel satellite, structural-thermal support equipment for payloads at cryogenic temperatures. ARATZ has worked intensely on the design and pre-assembly manufacturing, assembly tooling and aluminium parts for the OBA, a flat, 1.6 m diameter structure. NOVALTI has delivered a number of different payload components of both satellites to the “prime contractor” of the programme (Alcatel Space), and has also applied numerous forms of protection to the waveguide equipment of both units. These satellites will carry high-technology payloads for their main missions.

1 4 SENER, 2 3 NOVALTI

GALILEO PROGRAMME The European Commission and the European Space Agency manage the economic and technical aspects of the GALILEO programme. This major project, which emerged from within Europe but with a range and scope that covers the entire world, is a European initiative to offer global navigation by satellite. During the first definition stage of the programme, engineers have concentrated mainly on reaching an agreement between the main prime contractors of the main companies involved, establishing the bases of the capacities of the system, development and operating costs, as well as the dedication to the project of each company according to their capabilities. During this stage, which is currently in progress, the following tasks have been completed: - Definition of the global service and definition of standardisation and frequencies. - Detailed preliminary definition stage. - Development of a test-bed to validate algorithms and systems designed by the different teams. During 2004, NOVALTI began to work on the second stage (development) in which, based on data from the first stage, a number of different designs, developments and BreadBoards, corresponding to filters and transponders, have been initiated. SENER, who has a financial stake in GALILEO, has begun to work with Galileo Aviónica on the development of mechanisms for a general-purpose robot arm for use in space activities and continues to work on this major European project.

4.4 SYSTEMS and EQUIPMENTS With each year that passes, the importance of this sector for HEGAN companies is becoming more and more important. Some of their more relevant activities are described below: GAMESA AERONÁUTICA’s participation in the EUROFIGHTER programme is well known. Specifically, this company has developed and produced the Flare Dispenser fitted to this aircraft. Its structure has been designed basically in composite materials with the consequent reduction in weight of the entire system. Its magazine, made completely with advanced composite materials, is the only one in the world to use these materials. During 2004, GAMESA AERONÁUTICA continued to pursue its product improvement and mass production campaign. The company has delivered shipsets for a total of 140 aircraft during the lifetime of this programme. The participation of the ITP Group, through its subsidiary companies ITD and ITA, in the area of aircraft systems for civil aircraft projects, is growing rapidly, although ITD also has a presence in the structural components area. During 2004, the first standard was completed for sections 19.1 and HTP of the Airbus A380 project, in which ITD designs and supplies systems, and the company has begun to make deliveries to the production line. Moreover, as part of the development programme, ITD has designed and supplied flight test instrumentation for sections 19, 19.1, HTP and Belly Fairing, as well as the supports for the systems for section 19.

1 and systems modifications of the installation of the first BOOM prototype, in the same model of aircraft, within the ARBS programme. Lastly, it is interesting to note ITD’s collaboration with Airbus for the A400M transport aircraft in the conceptual design of the wing systems. In 2004, ITP’s subsidiary company, ITA, signed a contract with Rolls Royce for the supply of all the pipes for the TRENT900 and V2500 civil aircraft engines. SENER has continued to make progress in this new field of activity comprising design, development, mass production, integration and actuation systems tests and the control of applications in aeronautics, defence and propulsion, thanks to more than 25 years of experience in engineering and the design of mechanisms, and to the intense activity in its new Integration and Testing Centre. In 2004, SENER completed the design of the following systems connected to the Belly Fairing of the AIRBUS A380: the Emergency Ram Air, the Low Pressure Ground Connector, the Supplemental Cooling System and the actuated air intakes. In 2004, Tratamientos Superficiales IONTECH continued to work with the Cermets type coating process by means of high velocity thermal spraying (HVOF) for components of the landing gear for the A380. Also for this aircraft, AEROTEAM has manufactured supports for the fuel tank and FTI accessories for the MLGD hydraulic unit.

Within the area of pipe production, ITA, as manufacturer of fuel and hydraulic pipes, has delivered the first units of the horizontal stabiliser for Airbus A380. The prospects for manufacturing pipes for models A310, A320 and A340 are also very good. With regard to participation in projects associated with defence sector aircraft, it is interesting to note the participation of ITD in the NIMROD modernisation project for the RAF. This aircraft flew for the first time in August, and production was initiated soon after. As for the range of Airbus refuelling aircraft in which a number of structural and system modifications were made for the A310 MRTT aircraft, there have been further structural 1 SENER, 2 MICROFUSIÓN DE ALUMINIO, 3 SENER, 4 AEROMEC, 5 TECNASA

territory of BOEING. With his project, DMP is developing its assembly and integration activities and is assimilating new technologies. For the tail boom, SPASA has machined parts for CESA.

TECNASA, specialised in technical parts in rubber and silicone, was founded in 1999 in order to take part in the development of aerospace projects. TECNASA’s services cover all processes, from the development of materials, including design of tooling, to the finished part and in 2004, continued with the design, manufacture and supply of “O” rings, flat gaskets and parts moulded in different materials (rubber, silicone, fluorinated silicone, viton, etc.) for including the launching rings of ejector seats within the EUROFIGHTER, NACES and JSF international aerospace programmes. In this way, TECNASA is taking part in all the combat aircraft of the world equipped with MARTIN-BAKER ejector seats. The advantages of these materials supplied by TECNASA compared to the ones used until now are as follows: Greater flexibility at low temperatures, higher resistance to the lubricants used, exceptional resistance to ozone and the same conditions of flexibility with the safety paints used in these elements.

DMP has increased its participation in the A380 with new contracts for cargo compartment door mechanisms and in the Sikorsky S92 helicopter project with a number of different component kits. This company has also begun to manufacture a number of different components for Eurocopter’s TIGER helicopter and has continued to manufacture components and mechanisms for flight systems, steering systems and landing gear for LATECOERE, MESSIER DOWTY, CESA, EADSCASA, GOODRICH and LIEBHERR. NUTER continued to supply parts for LIEBHERR for the AIRBUS A340 front landing gear actuator as well as, for other client, parts for the AIRBUS A310 and 320 landing gear. NUTER and also collaborates in the EUROFIGHTER in the Antiskid off valve project, Arrestor-hook and Tankexpector-unit. AEROMEC continues to manufacture landing gear components for EADS-CASA for the C235 and 295 transport plane Industrias TEY has been approved by AEROSPACE sector companies from all over the world for heat treatments of steel alloys for aerospace components. These heat treatments give these components exceptional mechanical strength and performance. Industrias TEY supplies treatments with structural transformation and dimensional stability qualities in steels and super alloys for landing gear and air brake components for the C212/235 and Nurtiano programmes.

In 2004, DMP was one of our most active associate companies in the field of engineering, design and manufacture (precision cylindrical and cubic machining, spark erosion, micro finishes and systems integration). DMP has performed concurrent Engineering Functions from the design stage and the subsequent manufacturer of different assembled units belonging to the TAIL BOOM project, the most important of which was the Articulated Ball Joint. This is a system used to equip the new MRTT tanker aircraft by AIRBUS with which this manufacturer is breaking into the In-Flight Fuel Supply Systems sector which until now was the exclusive

1 DMP, 2 TEY

4.5 MAINTENANCE 4.5.1 Civil sector maintenance In 2004, GAMESA AERONÁUTICA’s business interests in this area continued to grow through its subsidiary engaged exclusively in maintenance activities, called IKARUS Aircraft Services. This company offers and performs maintenance activities for airlines. Currently, its scope is limited to products designed by GAMESA AERONÁUTICA, but the company’s clear aim is to expand its activities towards other products and to broaden its range of services. IKARUS has the capacity to perform field repairs all over the world, with a service that operates all day and every day, throughout the year. Moreover, IKARUS is a spares distribution centre, providing airlines and aircraft manufacturers all over the world with a 24H service.

During 2004, ITP was certified by Pratt & Withney Canada as a Designated Overhaul Facility (DOF) for PW200 family engines. The company was also recognised as an Authorised Maintenance Centre – AMC by Rolls Royce for its RR250 engine, for which maintenance contracts have been signed with the Polish and German police forces.

In this area of civil maintenance, throughout 2004, AEROSPACE ENGINEERING GROUP continued manufacturing spares and specialised maintenance 5 in the coiling and repair of the most advanced range of stators, rotors, armatures y fields in AC/DC generators, starters, the invertors, fuel pumps and electric motors for power generating aeronautics components, hydraulic aeronautic components and avionics components. The main customers of AEROSPACE ENGINEERING GROUP in the civil sector are: SABENA TECHNICS, SAS, LUFTHANSA TECHNICS, IBERIA, EADS SECA, EADS SOGERMA, FOKKER SERVICES, TAP, KLM, etc.

12345

ITP,

6 AEROSPACE

Within the commercial aircraft engine maintenance subsector, it is interesting to note that during 2004, ITP delivered its first Pratt & Withney PW127 turboprop to Binter. The main customer of the company’s maintenance programme for the PW100 family of engines is Air Nostrum, with whom a ten-year maintenance contract has been signed. A further maintenance contract which, besides the Pratt & Withney PW127 turboprop, includes the Honeywell TPE331, has been signed with Iran Aseman.

4.5 MAINTENANCE 4.5.2 Defence sector maintenance In 2004, ITP signed a contract of major importance with the US ARMY for the maintenance of their T63-A-20 engines (military version of the Rolls Royce M250 turboshaft), fitted to Kiowa helicopters. This contract covers the general overhaul of 144 engines during 2005 (AprilNovember) and includes an option for 126 more engines during 2006-2007. In order to cater for this large volume of work, it was necessary to open a new workshop and, due to a lack of space at the Ajalvir facility, the new workshop was set up in Arganda del Rey (Madrid). Its turboshaft beds had to be modified for the engine acceptance test. During 2004, the deployment of the Typhoon at Spanish Air Force bases began with the Morón air base. The aforementioned air base was supplied with the first aircraft in mid 2004 and by the end of the year, 5 units had been delivered. ITP provides logistical support in the form of human and material means both for the assembly

line and the Air Force for the operation and maintenance of engines, adjustments to the test beds designed and constructed by ITP at the aforementioned air base, support during the start up of the engine workshop on the base and in general all those technical assistance activities required by the Air Force.

Force, the State Attorney of the Mexican republic (PGR), EADS-CASA for Chile, Royal, etc. Existing contracts have also been renewed such as the one with Royal Maroc Air Force for the maintenance of their General Electric CT7, Honeywell T55 and T53 and General Electric CF700 engines.

Also during 2004, ITP began the maintenance of the EJ200 engine which is fitted to Eurofighter, and delivered the first production engine repairs to the Air Force at the Ajalvir facility.

For its part, AEROSPACE ENGINEERING GROUP has continued to work for the North American Air Force, the Dutch Air Force, the Spanish Air Force, and the Belgian Air Force, which was subcontracted through the SABCA agency.

With regard to SNECMA’s ATAR engines, a pre-agreement has been signed for ITP to do the maintenance of engines currently maintained by SNECMA. This will give new life to a maintenance line which has been in decline due to the scarcity of engines currently in service with the Air Force. ITP has signed maintenance contracts with the Argentinian Air Force, the Colombian Air

EUROJET EJ 200

4.6 TESTS 4.6.1 Structural and fire tests We dedicate this chapter in its entirety to an account of the contribution made by the Aeronautic Technologies Centre (CTA) since the company was set up in Miñano (Alava), in 1997. Throughout 2004, the CTA-Miñano facility has been involved in several research programmes. TESTS Airbus Seven new tests for the A-380 have been initiated, contracted directly with AIRBUS FRANCE, AIRBUS SPAIN, SOCATA, SOGEMASA, GAMESA AERONÁUTICA and CESA. Tests have been performed on the A-320 elevator for AIRBUS SPAIN. Dassault The impact cannon has been put into operation for the ‘Fan Blade Burstout’ tests conducted for SOCATA and DASSAULT, for their FALCON 7X programme . Fire behaviour Once approval had been obtained from the Civil Aviation Administration of all the fire behaviour tests for aircraft materials and components according to American and European standards, the certification process was accelerated. Tests have been conducted for several manufacturers of aircraft interiors and firebreak bulkheads. R&D LINES Since the Centre defined its Lines of Research 2004, CTA has obtained a number of important results. In some cases, these have led to the contracting of tests or have given rise to new industrial developments. Combustion Having obtained the certification of the flame propagation test chamber for fuselage insulation panels, this is now available for industrial tests. Work is continuing on an adimensional study of the behaviour of fire in aircraft cabins. New structures In collaboration with SPASA, a project is underway to improve the leading edges of wings with metal foam. Non destructive tests Work during 2004 focused on the use of infrared thermography to detect defects in composite materials and metal components as a complement to ultrasound inspection, with excellent results. An agreement has been reached to develop inspection techniques on manufacturing and assembly lines for 2005-2006.

Gyroscopic actuators The new generation gyroscopic actuator project for the control of satellites and the adjustments to static test beds continued throughout the year.

4.6 TESTS 4.6.2 Fluid-dynamic tests

This section is dedicated to the activities of CTA’s facility in Zamudio (Bizkaia). TURBINE AERODYNAMIC TESTS Throughout 2004, rotary tests have been conducted with the PTB4 turbine experimental prototype for ITP, with highly satisfactory results. These tests were carried out in 50% less time, representing a considerable improvement over previous series. ASSEMBLY AND INSTRUMENTATION One of the most important contributions to the improvement in delivery dates was the integration of assembly and instrumentation activities at CTA’s Zamudio facility. With this additional capacity, the centre has made a significant step forward in its aim of completing its range of tests.

R&D LINES Advanced instrumentation Rapid response probes were used for the first time during the tests on the PTB4 turbine. These have optimised Area Traverse operations with a time saving of more than 50% compared to the use of pneumatic probes, as well as providing high-resolution measurements. Work on the development and final adjustment of these measurements contributed greatly to the success of these tests.

AEROACOUSTICS In 2004, the first noise measurements of a turbine prototype were made. Specifically, ITP’s experimental rotary PTB1 turbine was used for these measurements. Aeroacoustics continues to be a priority research area for the centre and this is shown by its participation of the coming years in the VITAL programme integrated within the 6th Framework Programme. Fluid-dynamic Studies Institute The IEF, Fluid-dynamic Studies Institute has been constituted with the participation of the Bilbao Engineering School, the EUVE technologies Centre and CTA-Zamudio. Through the IEF, it is intended to provide the scientific personnel of the university with access to its test bed installations by pooling the efforts of scientific-technological agents working in the field of fluid-

4.7 R&D PROJECTS HEGAN companies are taking part in a number of R&D projects in the aeronautics and space sectors. These are outlined below.

ANTLE

During 2004, GAMESA AERONÁUTICA intensified its presence through a number of new tools, already included in the 6th Framework Programme. In this way, it took part in the preparation and presentation of a number of proposals for major projects in this sector, together with the main manufacturers and research centres in Europe.

Currently, GAMESA AERONÁUTICA has registered 2 patents and 4 utility models and is in the process of applying for 11 more. The patents that have been granted already relate to ground effect vehicles and fire protection and the utility models relate to tooling and production assembly processes. Following the policy of R&D investments applied by ITP since its creation, in 2004, the company dedicated a considerable amount of effort in this area. ITP’s material characterisation activities at the Zamudio Materials Laboratory will allow the company to draw up its own design standards to undertake future projects with its own technology. Likewise, CTA has prepared an aerodynamic test

programme on the PTB4 rig, the results of which will be applied to projects such as TP400 and TRENT 1000. ANTLE With regard to the ANTLE project (a demonstration engine in which several European companies are taking part), it is interesting to note that tests have now started on rig DT74 and the turbine module for the prototype of the complete engine which will be bench tested has been delivered to Rolls Royce. Moreover, ITP has conducted studies in the development of infrared stealth technology with satisfactory results, including the development of an advanced, world-class infrared prediction signature system, and a system developed for calculating flutter in the field of aerodynamics. MMFCS and MANHIRP In the area of manufacturing technologies, the co-operation project led by ITP within the 5th Framework Programme, called MMFCS, has been brought to a successful conclusion. The project has enabled the company to gain a knowledge of “designed for manufacture” tools applied to radial structures. The MANHIRP project, also within the 5th Framework Programme, in which ITP’s engineering department has also taken part, has enabled the company to gain an in-depth knowledge of the influence of machining anomalies on the service life

of rotating parts. Other noteworthy projects in which ITP is taking part with subsidies from the INTEK programme are RENAMILL and Waste Treatment in Electrochemical Machining Installations. In the first of these, under the leadership of Lidia and with the support of the CEIT, validation tests are being carried out on milling cutters with nanostructured coatings to improve performance in titanium alloy machining processes. In the second, together with CIDETEC, the aim is to reduce the environmental impact of electrochemical machining facilities, through the treatment of waste and an improved use of the electrolyte. In the area of engineering, ITP has also begun work on new engine standards such as the service life analysis of rotors, hot and cold structures, etc. With regard to maintenance, ITP has developed new repair processes for aeronautical engine parts, such as the application of thermal barriers, the repair of shear seals, the replacement of the heavy-metal chemical baths with thermal spray technologies, the repair of hot zone parts by means of braising, etc. The application of these technologies, once approved by the aeronautics authorities through the engine manufacturer (which is not always easy due to their protectionist tendency) or through the DER (Designated Engine Representative) these will

FRIENDCOPTER, TATEM, COCOMAT AND ARTIMA GAMESA AERONÁUTICA is taking part in the integrated FRIENDCOPTER projects (The environmentally FRIENDly heliCOPTER) and TATEM (Technologies And Techniques for nEw Maintenance concepts), in the COCOMAT (Increasing safety and MATerial exploitation of COmposite airframe structures by accurate simulation of Collapse) and ARTIMA (Aircraft Reliability Through Intelligent Materials Application), and is the leader of the consortium that is promoting the last of these projects.

allow for a reduction in costs and maintenance times. SILENCER ITP continues to participate in the engine and aircraft noise research project, SILENCER. SILENCER (Significantly Lower Community Exposure to Aircraft Noise) is an R&D programme of the technology platform TP6 “Low External Noise Aircraft” within the 5th Framework Programme. This is led by SNECMA with the collaboration of the main European manufacturers both of engines, SNECMA itself, Rolls Royce, MTU, etc., as well as the main aircraft manufacturers, AIRBUS, FOKKER, DASSAULT, ALENIA and the engineering company SENER. For this project, SENER is performing integration activities TRENT 500 de Rolls Royce; specifically, the complete design (acoustic, thermo-mechanic, etc) of two gas exhaust cones; and leads a consortium of HEGAN companies for the manufacture of these components: two gas exhaust cones, in addition to the acoustic validation test pieces. SENER has got Rolls Royce to transfer the design and mechanical integration of circumferential divisors. CTA, INASMET, SIEGEL, and SPASA have also taken an active part in this European project of the 5th Framework Programme, promoted, among other reasons, in order to reduce aircraft noise by 6dB.

VITAL CTA, together with ITP, continues to take part in VITAL with a budget comparable to those granted to large European centres such as Onera and DLR. CTA’s is one of the highest participations of any university and research centre. IMPRESS Tratamientos Superficiales IONTECH is taking part in the Integrated Project (IP) IMPRESS, within the 6th European Framework Programme, for the development of special coating applications by means of thermal spraying in aviation engine components. This project began at the end of 2004. AEROESTALKI and OMUX NOVALTI completed the different stages and tasks of two of the most important research projects in which it was engaged, meeting the objectives initially set for 2004. The first, AEROSTALKI, an aerospace coatings project, has two aspects. On the one hand, a new composition has been developed and optimised for the application of zinc/nickel coatings for the progressive replacement of the cadmium coatings currently in use but which are so damaging for the ecology and are being phased out according to the demands of European regulations. In addition, a new process has been analysed, developed and industrialised for the electrolytic deposition of conductive coatings on magnesium wrought alloys, which will allow a reduction in the final weight of the product of over 30%, with the consequent improvement during the satellite launch and positioning processes. With regard to the OMUX A project, during 2004 the compa-

AWIATOR

ny continued with the designs, modifications and BreadBoards corresponding to several different pieces of equipment and systems in order to define the definitive pieces of equipment that will be used in future generations of satellites. These new designs of multiplexor “Ku” band output components with a technology not used by any manufacturer at this time would represent a considerable technological advance. AISHA The AISHA (Aircraft Integrated Structural Health Assesment) and STREP projects of the 6th Framework Programme, in which CTA plays a major role, have been put into motion. NEWTIRAL SENER continues to coordinate the NEWTIRAL project, included within the 5th Framework Programme of the European Union, the main objective of which is to assess the manufacturing processes of metallic compound matrix materials (titanium) with applications in the Aeronautics sector, in order to reduce weight while still obtaining the same features. This implies a greater amount of thrust in the aircraft, less need for fuel and, therefore, lower emissions of contaminating gases. The consortium that SENER coordinates consists of INASMET, the University of Bordeaux, QINETIQ, SETTAS, BODYCOTE, DONCASTERS, CESA, EADS CCR and INASCO. DART, TRISYD and AWIATOR DART and TRISYD are two of the other seven critical technology projects with which it is intended to establish the bases for launching a demonstrator programme of the European TILT-ROTOR within the 6th Framework Programme of the

SENER

DART (Development of an Advanced Rotor for Tilt-rotor) involves the design, manufacture and testing of an advanced rotor for implementation in a demonstrator aircraft TILT-ROTOR (aircraft propelled by propellers which can fly like a helicopter and like a conventional aircraft). The project sets out to improve the current designs of external noise, vibrations, safety and cost, as this will be the first rotor in the world to be fitted with four blades. TRISYD (TiltRotor Integrated Drive System Development) consists of developing the integrated actuator system. SENER is responsible for the detailed design and the calculation of components. AWIATOR (Aircraft Wing with Advanced Technology Operation) has a budget of €18 million and the consortium is made up of work teams from AIRBUS Germany and United Kingdom, as well as more than 20 European industrial partners and Israel (ONERA, IAI...) The project involves technology validation flight tests amounting to more than 100 hours of flight. These tests will be done with an A340 (MSN001), an aircraft which has been modified for the AWIATOR project. SENER has carried out the design and validation of different devices and mechanisms that will be tested in flight in an AIRBUS 340: braking ailerons (successfully tested

in flight during the last quarter of 2003) and currently in the design stage of the modified leading-edge of the flaps. In 2004, SPASA also dedicated a large amount of resources to the aforementioned projects, AWIATOR, DART and TRYDSID. LUBRIJET and AEROFIVE SPASA, took part in the general micro-machining and nanomachining improvement projects: LUBRIJET, demonstration of the competitiveness of machining by means of high-pressure lubricant jet in the machining of titanium base alloys, and AEROFIVE, development and implementation of high-speed machining technologies for the sector, the search for a new applications in the performance of tests on test pieces in order to evaluate their technical/economic interest. POA SENER also continued its work in the POA project (Power Optimised Aircraft), the aim of which is to identify, perfect and validate innovating developments that contribute to optimising the management, generation and consumption of electricity in medium-size passenger aircraft. This is a four-year programme in which the number of major European Aeronautics companies such as AIRBUS, ALENIA, HISPANO-SUIZA, LIEBHERRAEROSPACE, ROLLS ROYCE, SNECMA MOTEURS, THALES and TRW are involved. SENER is taking part in the integration of equipment, as well as in the test bed and its design. IPU-EF and IPU-DL In the area of Image Processing for air reconnaissance, SENER

is developing the following programmes: - IPU-EF: Adaptation of the IPU card (Image processing Unit) to the Litening ‘pod’, which is to be fitted to the Eurofigther aircraft, provided with reconnaissance capabilities. The Programme involves making an initial batch of four electronic cards for Zeo and Rafael. - IPU-DL: Increase the features of the IPU card, based mainly on the communications functions provided through Data Link (radio link). The Programme includes the preparation of an initial batch of 4 electronic cards, followed by the second batch of 16 Zeo and Rafael cards. HELINOVI SENER continued to work on the HELINOVI project (Helicopter Noise and Vibration reduction) performing analytical activities to estimate excitation and noise reduction in helicopters; the development of a stochastic design for aerostructures (sandwich panels, monolithic structures, etc.) of great use in the optimisation of designs and the reduction of weights, and the development of the BOSTOOLS computer system, which allows the systemisation of these methodologies which are, in turn, compatible with the most widely used commercial software in the aeronautics, MSC/PATRAN, MSC/NASTRAN. SENER also continued doing research into different alternatives to replace the conventional honeycomb nuclei, defining solutions to improve the features and to reduce costs and weight.

European Union; the last one is a Technological Platform of the 5th Framework Programme of the European Union, the aim of which is to develop advanced technologies for the wings of commercial aircraft in order to reduce noise levels and turbulence and in this way improve the efficiency of combustion gases.

5- Statistics 2004 5.1 Sales (Mâ&#x201A;Ź)

5.2 Employment

5.3 Exports (M€)

5.4 Investments in R&D (M€)

6 - Aerospace specialities of HEGAN companies

ASSOCIATE FOUNDERS

ASSOCIATE COMPANIES

TECHNOLOGY CENTRE

7- Acknowledgements

I should like to conclude this report with a message of thanks to all those who have made this publication and the continuous development of HEGAN, Aeronautics and Space Cluster Association of the Basque Country, possible. In our Cluster, which is small comparison to the world aeronautics sector, but which, today, we can describe, without false modesty, as a reference model, there are people - perfectly identifiable - who would like to make a contribution to its development with their minds and I would say, sometimes, even with their hearts. Without their invaluable help, facing the difficult challenges of a more and more competitive global market would be so much more difficult. The involvement of our associate companies and the support and collaboration of all the agents that form part of the Cluster - Institutions, Universities, Technology Centres, non associate companies, etc. -, has inspired us to continue going about our daily business with renewed enthusiasm. In my opinion, 2004 was a point of inflection, during which companies engaged in Aeronautics activities and all the agents mentioned above have shown that they hold this Association in great esteem and that the decision they took to associate themselves with it and/or collaborate with it, was the right one. The satisfaction of working on a daily basis with such good professionals is a stimulus which we wish to repay with our modest contribution to the increasingly fruitful development of the Basque Aerospace Cluster and, consequently, of society as a whole. Once again, many thanks for your invaluable, constant and indispensable support.

JosĂŠ Juez Managing Director