© SORTUZ DISEÑO Y COMUNICACIÓN
REPORT 1997 - 2007
HEGAN adhered member of
HEGAN member of
HEGAN founding partner of
HEGAN member of the management committee
This publication is sponsored by:
INDEX
1. PRESENTATION ………………………………………………
4
2. HISTORY ……………………………………………………
6
3. THE MAIN MILESTONES ……………………………………… 11 4. PRODUCTION CENTRES AND PROGRAMMES …………………
24
5. MAIN CLIENTS AND PROGRAMMES …………………………
28
6. HEGAN STATISTICS …………………………………………
30
7. ASSOCIATES ……………………………….………………
34
8. ACKNOWLEDGES ……………………………………………
36
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1
PRESENTATION
This year marks the tenth anniversary of the foundation of Hegan, the association of the Basque aeronautics industry. This is an appropriate moment, therefore, to recall the positive and exemplary achievement of creating an entirely new industrial sector in the Basque Country, leading to the creation of wealth, employment and the development of technology in a complex and forwardlooking industrial area that has highlighted the industriousness and initiative of this country. Today, the Basque aeronautics industry has a turnover of 1000 million euros and provides direct employment for 7000 people. The sector has grown fourfold in ten years. These figures give a clear idea of the success achieved by companies in this sector. Although strategic issues are based on solid premises, clear and well structured interactions and stable objectives, these are often developed in accordance with forecasts to secure the planned effects. In the creation of the Basque aeronautics industry in 1992, grouped at a sector level in Hegan since 1997, all these circumstances came together. The initiative came from the business sector with businessmen who put their faith in the project and took many risks. Without doubt, the names of Sendagorta, Arregui, Galan, De la Peña, López Gandasegui, Basagoiti, Valdés and others should be remembered as the creators and promoters of a sector for which there was virtually no historical base, with an extraordinary vision of the future. The importance of this initiative will surely become clearer with the passing of time. Stable support was offered by the Government to provide backing for the project but there was no attempt to usurp control from the business sector. This support took many different forms, from the temporary participation with public funds in the share capital of the leading companies that provided the driving force behind this initiative, to the specific support in R&D projects, the creation of the CTA Aeronautics Technologies Centre or the support given to training engineers such as the aeronautics engineering masters course at the Industrial Engineers School in Bilbao. There was no attempt to take over leadership and these solid bases, created on an industrial fabric with the
experience, determination and dedication of the Basque Country, achieved results that can without doubt be considered excellent. It is necessary to recognise that the natural prominence of Gamesa Aeronáutica, today Aernnova, and ITP as sector leaders gave rise to the development of other industries that have contributed to the creation of a capable, efficient and competitive industrial fabric. In Spain, there are other contemporary examples of initiatives that have been less successful, due, obviously, to a number of different reasons, but probably the fundamental factor that led to the success of this project was collaboration and the adequate, ordered and planned coordination of private initiative and public support. It is true, however, that the support of the Industry Ministry was probably important, as without the decided will and permanent support of the Basque Government in the development of this industry, it would not have been possible to achieve the same results. The Industry Ministers of the Basque Government, Azua, Imaz and Retegui are examples of how discreet and efficient public support in favour of businesses, the industrial sector and the country at large, can foster growth and ensure the profitability of a new industrial area. HEGAN’s contribution to the growth and strengthening of this sector can be seen in four specific areas. it is a forum for exchanging ideas and the collaboration between companies, it has been involved in the creation of the CTA, it has promoted and fostered both product and management quality and has contributed to personnel training. We wish HEGAN every success in the future and hope that this will be as important as the achievements obtained until now because its success is linked directly to that of the Basque aeronautics industry itself. Work, effort, collaboration and discretion have been its bywords in the past this will continue to be the case over the coming years. Joaquim Coello Brufau First President
PRESENTATION
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PRESENTATION -- 5
It is a source of great satisfaction for me to share the presentation of this report, a summary of the first 10 years of this association, with the person who was our first president during the initial five years of existence of HEGAN, and I should like to mention Messrs. Cesar Fernandez de Velasco and Jorge Unda, who had the honour of steering this boat before me. My job is perhaps the most difficult – to take stock of the results of the last financial year, which we can define as very good, considering the difficulties that are affecting the builders of aeronautics materials at a world level. The aeronautics and space industry, grouped under the Aeronautics and Space Cluster Association, has seen how the favourable turnover forecasts for 2007 have been fulfilled, with 13.7% growth, to reach a figure of over 913 million euros. In addition to this encouraging data, employment has continued to rise, on this occasion by 12.8% compared to the previous year, and now stands at 6553 workers in direct employment, distributed between the Basque Country (55.5%) and the rest of the Spanish state (41%) and abroad (3.5%). Exports stand at 676 million euros while investment in R&D has now reached a figure of 99 million euros. Regarding the activities of our companies, we should highlight their participation in the A380 project of AIRBUS, BOEING’s 787 aircraft and in the other programmes in which the broad client base of this aeronautics cluster is currently engaged. The investments in the dollar zone of our large industrial groups AERNNOVA and ITP, are also worthy of mention. There are now 8 production centres abroad, in addition to the 41 centres located in the Basque Country and the 21 centres scattered throughout the rest of the Spanish State. We should also mention the consolidation of our small and medium-sized companies who have seen major growth in their turnover and export figures, as well as moves to form alliances and integrate their activities in order to acquire a larger dimension and to work successfully on the new programmes. There is also a determination to increase the gamut of our activities, such as the accelerated life trials (HALT) of the CTA, whose facility was inaugurated last year. Although last year’s aircraft sales and the forecasts for the next 20 years at a world level are
extremely encouraging for the whole sector and in spite of the fact that our order books are full for the next three or four years (depending on the company), there are a number of major challenges that must be faced by all agents involved in the sector: these include the long-term business model with after-sales services that create tensions in the supply chain due to unrealistic pricing; the euro/$ exchange rate, following a 15% devaluation during the course of this year; difficulties in gaining access to financing with debts sustained over excessively long periods of time; the complex situation of the management and pricing of raw materials; insufficient leverage in negotiations with the transformers of steel ingots, and the need for qualified professionals. During the year in which we celebrate the 10th anniversary of the foundation of our association, 15 years have already gone by since the first meetings of the Technology Committee, the origin of the association itself, more than 20 years since the first activities of the companies in this Cluster in the field of aeronautics, and more than 40 years since SENER began to work in the space sector. Over this period, many people have understood (each one in his/her own way) that working for the development of the sector was worth the trouble and have contributed with their decisions, effort, hope and determination. This especial edition of the HEGAN report highlights some of the many achievements gained as a result of their dedication. Nothing of what our sector is today would be possible without the constant, realistic and sometimes visionary work of our predecessors, and in the same way our actions will influence the future success of the sector, filling us with a feeling of importance and great responsibility. In the name of Basque society, which is the ultimate beneficiary, I should like to thank you for the work you have done and call on everyone who forms part of HEGAN to work hard so that, when we take stock of the achievements of the next ten years, we will also be able to look back with great satisfaction.
Ignacio Mataix Entero President
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2
HISTORY
The beginnings. Sowing the seeds The history of the Basque Aeronautics and space sector can be seen as the result of the determination and commitment of the business community and institutions at a time of deep economic recession to develop new sectors of industrial activity. This forward-looking policy, which has developed successfully towards the most advanced technological sectors, is deeply rooted in a long and prosperous industrial tradition that began with iron and steel and shipbuilding, backed by an extensive network of specialised subcontractors. The aerospace adventure began in the Basque Country at the end of the sixties when the engineering company SENER began to take part in a number of space projects. In the eighties, SENER initiated efforts to break into the engine division of the aeronautics sector and in 1989 took an active part, together with SEPI, Construcciones Aeronáuticas, S.A. (CASA) and Rolls Royce, in the creation of the company ITP (Industria de Turbo Propulsores), that began life with the development of the EJ200 engine nozzle, used to propel the future European combat aircraft. Since then, ITP has become one of the leading companies in the Basque Aeronautics sector. In the field of aeronautics structures, an emerging company called GAMESA (Grupo Auxiliar Metalúrgico, SA)(*) founded the company Fibertecnic, to supply carbon fibre parts to a company known at that time as CASA, thus establishing its first contact in the aeronautics sector.
HISTORY
In 1993, ITP undertook major engineering development work in collaboration with its technological partners SENER and ROLLS ROYCE, and GAMESA saw the opportunity of increasing its presence in the sector by taking part in the birth of a new regional aircraft with the Brazilian company EMBRAER. That year saw the foundation of the company GAMESA AERONÁUTICA (*), which would become the third largest company in the sector. In the early Nineties, and within the framework of its Competitiveness Programme, the Industry Department of the Basque Government promoted the creation of sector association according to the “Cluster” model, conceived at Harvard University, and commissioned MONITOR, led by Michael Porter and SENER, to carry out a study into the competitiveness of the aeronautics industry in the Basque Autonomous Community. Once the study had been completed, the Basque Government invited all the companies that had been contacted during the survey to form part of an Aeronautics Cluster. Although HEGAN –Aeronautics Cluster of the Basque Country- was not formally constituted until 1997, it is no less certain that the collaboration between GAMESA AERONÁUTICA (*), ITP, SENER, INASMET (representing the Basque Technology Centres) and the Engineering School of the University of the Basque Country (UPV-EHU), began to take shape, however loosely, thanks to the cooperation between businesses and institutions in July 1993.
(*) hoy AERNNOVA
2
The emergence of HEGAN The Aeronautics and Space Cluster Association of the Basque Country, HEGAN, was founded four years later, on December 5 1997, with the three leading companies in the sector and a dozen SMEs who were already working for the latter by supplying them with parts of the quality required in the sector. Since the Cluster began work in 1992, through its Technology Committee made up of representatives of GAMESA (*), ITP and SENER and with the participation of INASMET and the University of the Basque Country and the Industry Department of the Basque Government., these companies had grown considerably and by 1997 the sector had secured a certain degree of consolidation, increasing its turnover from 116 million euros and 1000 jobs to 251 million euros and 2000 jobs in 1997.
The second stage began in 1997 with the creation of the association HEGAN, made up of leading companies in the sector and their suppliers. As of 1998, the association began to develop a number of other activities in addition to technology and innovation, such as business management, quality, human resources and internationalisation. Virtually at the same time as the official creation of HEGAN and as a result of the cooperation between a number of the different entities that formed part of its Technology Committee, CTA (Aeronautics Technology Centre) was set up with facilities in two different locations, one mainly engaged in structural and fire tests and the other equipped with a fluiddynamics test bed. This was the first major result of the effort of professionals working in cooperation. Ten years following the initiation of this project, the economic results reported by this still very young
HISTORY -- 7
Basque aeronautics and space sector reveal the significant development of this industry both in quantitative and qualitative terms. The 50 companies that currently make up the Aeronautics and Space Cluster of the Basque Country expect to break the 1000 million euros turnover barrier by the end of 2008, of which half corresponds to exports of products and services with a high technological content. The Cluster has more than 7000 workers in direct employment. The development of this process of expansion in cooperation has also had a positive effect on small and medium-sized companies, who have reached the high level of autonomy by consolidating their activity and increasing their sales and exports. In an ever more global and competitive environment, SMEs are currently engaged in a process of integration and are forming alliances in order to acquire a larger dimension, which will enable them to work successfully on new programmes. The aerospace sector today. Major diversification.
As of 1998, the association began to develop a number of other activities in addition to technology and innovation, such as business management, quality, human resources and internationalisation.
The Basque aeronautics and space sector grew and matured thanks to clients such as Bombardier, Embraer and Rolls-Royce, with whom it has consolidated relations. Moreover, the rapid adaptation of the indus-
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2
HISTORY HISTORIA
The aerospace sector today. Major diversification. trial fabric, business foresight and the selection of market niches has allowed Basque industry to offer internationally recognised products and services to all top ranking end customers. This international recognition can be seen in the customer base of HEGAN’s associate companies, with aircraft manufacturers such as Airbus, Boeing, Bombardier, EADS, Embraer, Eurocopter and Sykorsky; engine manufacturers such as EPI, Eurojet, General Electric, MTRI and Rolls-Royce, to mention just a few of the most important. Indeed, one of the peculiar traits of the Basque aerospace industry is its great diversification in products and clients. Basque aerospace companies have a presence today in
all market segments, from lounge aircraft programmes, including the A380, the other Airbus families and a number of Boeing models, such as the 787, as well as regional aircraft manufactured by Embraer, ATR and Bombardier, business aircraft, Sikorsky and Boeing helicopters and transport, defence, rescue and space programmes. Over this period of more than 20 years, the considerable stability of the Basque aerospace sector is largely a result of this diversification.
The role of the HEGAN association. An historic endorsement of R&D&I, Total Quality and the Environment.
Today, the Basque aerospace and space industry has become a highly competitive sector generating 17% of the total turnover and direct employment of the Spanish State, and plays an active part at all levels of the supply chain for the supply of aerostructures, the manufacture of engines and tooling, from the design stage to maintenance, as well as subassemblies of aeronautics and space systems and equipment.
Today, the Basque aerospace and space industry has become a highly competitive sector generating 17% of the total turnover and direct employment of the Spain.
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HISTORY -- 9
The role of the HEGAN association. An historic endorsement of R&D&I, Total Quality and the Environment. While these companies were achieving these brilliant results, the Cluster Association HEGAN worked hard to gain its status as an international reference model of an innovating business association that responds to the strategic challenges of the sector in a spirit of cooperation. It was created in order to foster, promote and stimulate the industrial, professional, technological, research and innovation fabric of this sector in the Basque Country. Since 1997, the Basque aerospace industry has invested a total of 950 million euros in R&D, with an average reinvestment of 15% over the annual turnover for the last ten years, several points above the Spanish and European average. This figure, materialised in the countless R&D projects in which it has taken part, illustrates the determination of this industry over the last ten years to ensure the current and future competitiveness of the sector and of its companies on the world market and to play a leading role in investment activities in the aeronautics sector in the Spanish State. Consistent with this objective, companies belonging to the HEGAN Cluster Association promoted and designed the “Aeronautics Technologies Specialisation Course� organised by the Bilbao Engineering School in collaboration with the long-established Aeronautics Engineers School of Madrid. This course began in 2001 and offers specialist aeronautics training in companies. In 1998, 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. This initiative allowed HEGAN to anticipate the requirements of the sector, and the Cluster drew
up its own quality standard called HEGAN 9000, based on the most relevant international references: the American AS 9000 standard, the European AECMA and ISO 9001, to provide a specific quality system for the Cluster.
The initiative proved highly successful and allowed the Basque aeronautics and space industry to gain a privileged position when the international aeronautics industry adopted the EN 9100 standard. The development of its own quality standard within the Cluster has secured a place for the Basque aeronautics and space sector among the leading countries in terms of the number of companies certified in this standard and has made quality and essential part of the culture of our businesses. As a result of this passion for quality, HEGAN was the first regional association member of the European Aerospace Quality Group (EAQG), which led to its regular Committee Meeting being held in Bilbao in 2005. Within this quality promotion strategy, 99% of these special processes of companies in the Cluster has been awarded the aeronautics certification NADCAP. With regard to the environment, ITP was the second engine manufacturer in Europe to secure its adherence to environmental principles
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2
HISTORY
with the EMAS II certifications, and other Basque aerospace organisations have also demonstrated their firm commitment in this area by signing the Environmental Agreement, fostered by HEGAN and the Department for the Environment of the Basque Country, in collaboration with IHOBE. The Agreement will run from 2006 to 2008 and allow signatories to control and reduce their consumption of resources, monitor and cut noise levels, minimise the generation of dangerous waste, increase the valuation of waste, include ecodesign principles in their projects, increase their dedication to R&D for the benefit of the environment, implement management systems in accordance with Ekoskan standards or the international ISO 14001 standard and increase their level of transversal environmental actions. The achievements of the aeronautics and space sector of the Basque Country during this period are largely due to the efforts of HEGAN’s associate companies and all the entities that form part of the Cluster. HEGAN has the satisfaction of having taken part in laying the foundation stones of a number of these initiatives and developments, and is committed to seeing these through. Today, 10 years after the creation of our association and 15 years following the first meetings of the Technology Committee of the Cluster, we can say that the strategic decision taken at that time was without
doubt the right one and that the entities that take part in HEGAN’s activities have paved the way for the future of this organisation, based on past strengths, opening the way to new areas of opportunity and seeking the highest levels of competitiveness through cooperation.
The future In an ever more demanding sector, the young Basque sector owes its competitive nature to its ability to work in virtually all aerospace subsectors and to intervene in every stage of the development of products and services, from R&D and design, to manufacture, integration, testing, certification and product support. During the first ten years of our history, the sector has developed greatly based on its investments
in R&D. The relevance of the innovating activities of the aeronautics and space sector becomes clear when we consider the work of technological research and development undertaken by the sector, which has allocated an average of 15% of its turnover over the last ten years to these activities, several percentage points above the average for the Spanish State. In a global environment in which sales forecasts for the coming 20 years are extremely encouraging for the whole sector, there are a number of major challenges that all our companies and all the agents involved with them must face. These include a long-term business model, the dimension required to undertake new and more complex projects, the dollar/euro exchange rate, the difficulty of securing financial backing, the maintenance of debt for excessively long periods of time, the complex situation of the management of raw materials and their prices, the lack of leverage in negotiations with the material transformers and the need for qualified professionals. To these challenges and any others that might emerge in the future, everyone involved in this association will respond by contributing to the innovating development of our beloved world aeronautics and space sector.
THE MAIN MILESTONES
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THE MAIN MILESTONES -- 11
There follows a summary of the main milestones in the history of the aeronautics and space Cluster of the Basque Country, grouped in the following areas: Quality, the Environment and Management Improvement; R&D, Technology and Competitiveness and Internationalisation, Trade, Industrial and Sector Development.
1966
- SENER signed its first contracts in the space sector and began to work with ESA on a number of different programmes such as the first Ariane rocket, the Ulysses probe and Spacelab.
1985
- SENER was appointed member of the European Eurojet consortium, in representation of Spain. The company began work on the definition of the EJ200 engine.
1986
- GAMESA (*) set up Fibertecnic and signed its first contracts with C.A.S.A. (today EADS-CASA) for the supply of composite structural parts.
1988
- An agreement was signed by Turbo 2000 (SENER+INI) with 51% of the share capital, Rolls Royce with 45% and Bilbao-Vizcaya Bank with the remaining 4%, to create the company ITP (Industria de Turbopropulsores) in order to manufacture the EJ200 engine nozzle in Spain.
1992
- The Basque Government commissioned MONITOR, a company led by Michael Porter, and SENER to carry out a study of the Aeronautics sector and its potential for the future of the Basque economy: the “Competitiveness programme of the Aeronautics cluster of the Basque Country� (MONITOR-SENER, 1992). As a consequence, the Aeronautics sector was included as one of the priority industries of the industrial policy of the Basque Country.
(*) hoy AERNNOVA
12 -- 3
THE MAIN MILESTONES
1993
- The Technology Committee of the Cluster (COMTEC) met for the first time, embryo of the HEGAN association and formed of ITP, GAMESA, SENER, and representatives of the technology centres, the University of the Basque Country and the Industry Department of the Basque Government. - Creation of GAMESA AERONÁUTICA (*) and the first contract with Embraer: the ERJ145.
1995
- Contract signed between Sikorsky and GAMESA AERONÁUTICA (*).
1996
- The Technology Committee of the Cluster agreed to prioritorise the establishment of the Aeronautics Technologies Centre (CTA) and the definition of the Cluster Technologies Plan (PTCA), based on the Technology Strategy of the sector in the medium and long term. - The European Aeronautics industry was restructured to increase the integration of European companies in order to compete more efficiently with American industry. - The Cluster considered the need to reinforce its position with the incorporation of companies based in the Basque Autonomous Community who were already working for the sector, and a platform was set up to enable SMEs to break into larger markets both at home and abroad. - GAMESA AERONÁUTICA (*) won a contract to produce the fuselage for the SJ30-2 business jet of the American company Sino-Swearingen. - ITP signed a contract with BMW and Rolls-Royce to take part in the BR751 engine, which propels the McDonnell Douglas MD95.
1992 .... 1993 ..... 199
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THE MAIN MILESTONES -- 13
1997
- A technological infrastructure was set up, the Aeronautics Technologies Centre (CTA), with structures and fluid-dynamics testing and certifying areas, and as a vertical technology centre specialised in aeronautics technologies, that would add to the already existing technological infrastructure in the Autonomous Community. - The Association HEGAN was created to develop a number of other activities in addition to technology and innovation, such as business management, quality, human resources and internationalisation. Through the HEGAN Cluster, common policies designed to strengthen companies at an individual and collective level were established. - The member base of the Cluster continued to be limited to the three largest companies in the sector that had led to the formation of the association in 1993: GAMESA AERONĂ UTICA (*), ITP and SENER. - That year, GAMESA AERONĂ UTICA (*) consolidated its position on the market thanks to the success of the ERJ-145 and the launching of the Embraer ERJ-135.
1995 .... 1996 .... 1997
-Signature of the agreement between Rolls-Royce and ITP, through which ITP acquired technology for the design and development of Low Pressure Turbines
1998
- Creation of the Quality Committee to coordinate joint efforts to improve the quality of products and management of companies in the Cluster, based on the EFQM Total Quality model. The committee was also responsible for drawing up a feasibility study to establish a reference model for the quality assurance system of the Cluster, through a group of experts. - HEGAN began to promote the participation of associate companies in R&D projects at all levels, namely regional, national and European, providing them with information on initiatives in this area.
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THE MAIN MILESTONES
- Installation of the Fluid-dynamics Test Bed, the only one of its kind in Spain. - Review of the Technology Plan of the Cluster. - Identification of integrated and R&DT co-operation projects: optimisation of engine output flows, intelligent structures in composite materials for aeronautics components, virtual reality applied to design and advanced joining technologies for aeronautics. -The 1998–2000 Activities Plan set out a number of objectives, namely to increase the industrial fabric of the Basque Country, approve the quality system of all the companies in the Cluster and to define and increase the prominence of the Cluster at a national and international level. - Other objects included improving the position of associate members of the Cluster on the market, improving turnover and the number of jobs created, increasing the technological potential of the Cluster and carrying out feasibility studies of new segments of the aeronautics sector.
.... 1997 .... 199 - GAMESA AERONĂ UTICA (*) increased its production of wings and nacelles for the Embraer 145 aircraft.
- ITP stepped up its collaboration with Rolls-Royce and took part as risk partner in the Trent 500 engine programme, that equips the Airbus A340-500/600. - SENER participated actively in several engine and space programmes. - Eleven SMEs joined the association: ARATZ, BURULAN, FERVILOR, FOTOCORTE, MESIMA, METRALTEC, NOVALTI, NUTER, SK10, SPASA (today the ACITURRI Group) and TECNICHAPA (today WEC).
998 .... 1999 .....
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THE MAIN MILESTONES -- 15
1999
-Development of a specific Quality Assurance System for HEGAN companies. Work began on the development of this model under the title HEGAN 9000, bringing together the criteria of the ISO 9000.94 standards and the American and European aeronautics industry. HEGAN 9000 was the first model created by the Cluster to help in efforts to create a common certification process and to enable companies to take part in future international aeronautics programmes. -The first participations in projects developed under the 5th European Framework Programme (SILENCER -Efficient and non contaminating engine of the future -, SPARC, FLTP, SAILOR…). - R&D efforts among associate companies exceeded those of the aeronautics sectors in the Spanish State and in Europe. - The EUROTILT programme of the European VPM showed that collaborations within associate members of HEGAN enable the creation of the EUSNAC consortium. -The HEGAN Association adopted more global objectives with cooperation between companies as the common denominator. - Growth and expansion of the Basque Aeronautics Sector. Over recent years, the sector has experienced 71.8% of growth in turnover and 45.7% in employment. - International recognition. Efforts by the Association have contributed to HEGAN being cited as an example of regional initiative for technological innovation. Internationalisation acquired greater importance. The HEGAN Cluster was present for the first time with its own stand at the 43rd Aeronautics Fair in Le Bourget, used as an international shop window to display the capabilities of HEGAN’s Associate Companies. - IONTECH, LAZPIUR, SIEGEL and TRATAMIENTOS TÉRMICOS TTT joined the Cluster.
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THE MAIN MILESTONES
2000
- That year saw the application for the first time of the plan for the progressive implementation of a specific Quality Assurance model for the Cluster. That same year, all the associate companies of the Cluster had certified quality systems. - Investments in R&D in the Basque Autonomous Community remained above the average for the aeronautics sectors in the Spanish State and in the European Union, with a 20% investment over sales. - Organisation of the first AEROTRENDS Conference “New Manufacturing Trends for the Aeronautical Industry” held in the city of San Sebastián. -The consortium of HEGAN associate companies consolidated its leading participation in the European SILENCER project. - The growth and maturity of the aeronautics sector in the Basque Autonomous community was confirmed. Together with the prolific activity of leading companies in the sector, an increase in the activities of small companies in investment, innovation and international projection was seen. - HEGAN defined the basic premises of the 2001-2004 strategic plan of the Cluster . - The Cluster attended the Berlin International Fair, ILA, where it established contacts with the largest companies in the sector in order to secure the participation of a number of companies in the Cluster in the A380 programme. - Companies in the Cluster reached 535 million euros in turnover. Exports virtually doubled between 1988 and 2000. - EUROBLOCKS and TEGRAF joined the Cluster.
2001
- The HEGAN 9000 standards Coordination Committee extended the application of the progressive implementation of the standard to include the drafting and performance of the calendar of evaluations-audits of the different suppliers of HEGAN companies. - The “Aeronautics Technologies Specialisation Course” was created, an initiative promoted by HEGAN members. - The Human Resources Committee was set up. - R&D projects continued, joined by continuous fluid-dynamics testing technologies with advanced instrumentation at CTA.
.... 1999 .... 2000 ...
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THE MAIN MILESTONES -- 17
- Period of contrasting fortunes. Consolidation of the maturity of the aeronautics sector of this Autonomous Community and the negative impact of the events of September 11 on our sector, with a drop in demand for aircraft and the cancellation of orders. - Large orders were awarded for the A380 projects, the largest capacity commercial aircraft on the market. - BURDIN BERRI and Industrias TEY joined the Cluster.
2002
-All the companies in the Cluster were certified according to the HEGAN 9000 standard. - HEGAN began negotiations to become a member of the International Aerospace Quality Group (IAQG).
.... 2001 .... 2002 ....
- HEGAN became leader of the ECARE project for the whole of Spain in line with its aim of incorporating SMEs in European R&D projects based on the preparation of a form (Mapping Questionnaire) designed to standardise the applications of SMEs who will receive the leaders of the IPs. -The biennial Conference AEROTRENDS was held in its definitive headquarters in Bilbao.. -Internationalisation efforts were reinforced in order to strengthen our presence on the French market. With this aim, contacts were made with similar groups to HEGAN. The INTERREG collaboration projects were presented. - First contacts of the Association with SCRATCH and AeroSME projects. - Participation in the AWIATOR and NEWTIRAL project by companies in the Cluster association. - Completion of the HEGAN 2002-2004 Strategic Plan setting out the general aims of the cluster for the coming years. - HEGAN attended the AEROMART trade fair with companies from the Basque Country, and the ILA trade fair of Berlin. - All the companies in the Cluster were certified according to the HEGAN 9000 standard and undertook to obtain certification during 2003 according to the EN 9100 standard. - AEROMEC, AEROSPACE ENGINEERING GROUP, Mecanizados ASTORKIA, Desarrollos Mecánicos de Precisión –DMP-and TECNASA joined the Cluster.
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THE MAIN MILESTONES
2003
- HEGAN became the first regional association represented on the International Advisory Quality Group (IAQG), through its European organisation (EAQG), demonstrating the interest of its associates in management excellence. The Cluster was represented by ITP. This allowed our associate companies to benefit from the participation in this group through cooperation, the main aim of HEGAN. - Awarding of diplomas to graduates of the first year of the “Aeronautics Technologies Specialisation Course”, given by the Higher School of Engineers of Bilbao. - ITP invested more than 100 million euros in R&D programmes. - HEGAN took part in INTERREG projects. - Space projects in the ESTALKI, OMUX and HIPER-CRACK programmes. -Critical technology projects DART and TRISYD for the Tilt-Rotor demonstrator programme and the ANTLE, FRIENDCOPTER, COCOMAT and ARTIMA programmes. -Creation of the Virtual Aeroacoustics Institute (IVAe). - SENER Aeronáutica –SENER (72%), Lehman Brothers (18%) and SOCADE (10%)-took part in the privatisation process of ITP and won the competition, being the current holder of 53.125% of the shares of ITP, while Rolls Royce maintained 46.876% - The year which saw the centenary of aviation was a year of great satisfaction as the companies had successfully negotiated the first crisis in the sector since the association had been set out, a fact that demonstrates the maturity of the sector. - Our companies prepared themselves to take part in A400M. ITP achieved a 21% stake in the TP00-D6 engine that will propel this aircraft. - HEGAN became member of the Spanish Aerospace Material Constructors Association (ATECMA). - HEGAN dedicated a great deal of effort to increasing its presence abroad, in line with the wishes of
its members: Le Bourget, ACE Montreal, Aerosolutions in Bordeaux, organisation of MET–Bilbao, the first Businesses Meeting.organización de MET–Bilbao, el 1º Encuentro Empresarial de Negocios.
.... 2002 ... 200
3
THE MAIN MILESTONES -- 19
-The first stage of aerospace quality EN 9100 was consolidated, the specific standard for the sector, according to which 70% expected to obtain certification in mid 2004 and the rest before the end of the year. - AEROTEAM, IMESAZA and UPM joined the Cluster.
2004
- The European Aerospace Quality Group (EAQG) met in Bilbao. - HEGAN and ITP, Technical Secretariat of the Quality Committee held a meeting in Derio (Bizkaia) to present the forthcoming implementation of the NADCAP certification system for special processes to suppliers from the Spanish State. - Organización del Congreso AEROTRENDS 2004, tercera edición en Bilbao. -The MMFCS project “design in order to manufacture” concluded.
003 ... 2004 ...
- Initiation of the AISHA project (Aircraft Integrated Structural Health Assesment). - VITAL project to reduce contamination in engines.
- The Basque aerospace industry showed great capacity for recovering from the crisis of the last few years and in spite of the sharp increases in the price of the barrel of crude oil. - Participation of all companies of the Cluster in Airbus A380. - ITP’s securing of a share of more than 10% of the aero engine market was of special importance. In other words, of every 10 turbines manufactured in the world, 10.6% would be manufactured by ITP. -Agreement between GAMESA Aeronáutica* and BOEING to join the design group for the structure of the future “747 Large Cargo Freighter”. -Growing contribution of systems and equipment subsectors, as well as consolidation of their position in space activities.
20 -- 3
THE MAIN MILESTONES
- Strategic Reflection 2005-2008, with a 2015 planning horizon, which established the bases for future operations both of the Association and of the Basque sector. This was 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. - The presence of the association in international events increased: AIR CARGO FORUM 2004 (Bilbao), FARNBOROUGH 2004 (London), ILA 2004 (Berlin), IRCs seminars (Pescara) concerning the creation of clusters as a key to innovation at the regional level, Atlantic Logistic Forum (Bilbao), seminars Quebec, Aerolink 2004 (Cardiff), Aeromart (Toulouse), COAST project in which the regional association’s ADOUR COMPETITIVITÉ, WALES AEROSPACE and HEGAN took part. - HEGAN organised the 7E7 similar (today 787). Visit by directors of BOEING to Bilbao to see our potential as suppliers in this programme. - HEGAN sponsored, together with SENER and the INASMET technology centre, the publication of the book “Space”, with a preface written by the Spanish Astra Pedro Duque and prepared by Maria Angeles Rabadán.
... 2004 ... 200
- MICROFUSIÓN DE ALUMINIO and PCB and joined the Cluster.
2005
- 100% of organisations associated with HEGAN had EN9100 certification. The Basque Aerospace sector had the largest number of companies certified according to this European Aerospace standard and quality became part of the culture of our organisations, largely thanks to the process to develop the Cluster’s own quality standard. - One year following the presentation of the NADCAP system of special processes, more than 50% of special processes were certified. - HEGAN continued its activities in the ECARE+ project. -Participation of companies in the integrated projects CESAR (Cost Effective Small AiRcraft), ADVICE (Autonomous Damage Detection and Vibration Control Systems), TATEM (Technologies and Techniques for New Maintenance Concepts) and ARTIMA (Aircraft Reliability Through Intelligent Materials), NICE TRIP, VIVACE, HISAC - The Fluid-dynamics Testing Institute Fluidodinámicos –IEF, began its activities. - Se inicia la producción del A380, cuyas primeras entregas se prevén a finales de 2006.
005 ... 2006 ...
3
THE MAIN MILESTONES -- 21
- Production of the A380 began, with first deliveries expected at the end of 2006. Work on the development of the A350 began, a programme that suffered delays in its official launching. - HEGAN took part in the Paris Air Show 2005, Le Bourget 2005, the most important Aerospace fair at an international level. - HEGAN companies collaborated directly with all the divisions of Airbus (France, UK, Germany and Spain) in a number of different work packages for most of its programmes. -Contracts in new programmes such as Boeing 787-LCF, in which GAMESA AERONÁUTICA (*) took an active part in the development of one in the most critical sections of the fuselage of this aircraft, the opening and loading area. - ADVANCED DYNAMIC SYSTEMS –ADS-, Talleres AIBE and ELECTROHILO, as well as the technology centres CTA, FATRONIK and TECNALIA joined the Cluster.
2006
- 75% of the special processes of our companies had obtained the PRI/ NADCAP certification at the end of the year. - Signature by 19 companies in the aeronautics and space sector of the Voluntary Environmental Agreement corresponding to 95% of their activity. - Aeronautics specialists of the AWIATOR consortium made in Bilbao to evaluate the AWIATOR, platform in which SENER and SPASA (today ACITURRI) took part. - HEGAN took part in the AEROSFIN European project for technical and scientific cooperation to stimulate interregional aerospace cooperation within the framework of the INTERREG programme. - R&D was promoted through BCP-Aero (Basque Contact Point in Aeronautics). -Some programmes within the framework of the: AIDA, TATEF 2, TATMO, COJEN - Control of GAMESA AERONÁUTICA changed hands, and was renamed AERNNOVA -Further contracts with BOEING, specifically its 787 programme. The three leading companies of the Cluster secured a presence in the 787 “Dreamliner” programme. AERNNOVA consolidated its collaboration with the design teams of this American manufacturer for the design of the structure of the 747-LCF ‘Dreamlifter’, which will transport parts for the ‘Dreamliner’. ITP was responsible for the Low Pressure Turbines (TBP) for the Trent 1000 engines that were to propel this aircraft and SENER as-
22 -- 3
THE MAIN MILESTONES
sumed responsibility for a number of different engineering tasks both for its wings and the HTP. Our SMEs manufactured a number of different parts and tooling as well as kits for the front landing gear shock absorber.programa 787 “Dreamliner�.
- AIRBUS published POWER-8, a programme that aimed to rationalise its supply chain. - Completion of the development of the A380 aircraft with its complete certification, with the participation of Basque companies in its structures, engines, systems and tests.
- Launch of a member of the CRJ family by BOMBARDIER, and the CRJ1000, which will return to AERNNOVA the participation with a production rate of 100 aircraft a year.
... 2006 ... - In the space sector, there was a further increase in the number of new customers who maintaind and consolidated the long-standing activities of our associate companies.
- Our companies expressed their commitment to the environment by signing the Environmental Agreement with the Department for the Environment of the Basque Government,
- AEROTRENDS enhanced its traditional biennial conference with a Business Meeting. The meeting became the most important professional aerospace event in Spain. - Grupo AYZAR, QAES and TAMOIN Power Services joined the Cluster.
3
THE MAIN MILESTONES -- 23
2007
- 99% of our companies had certified their special processes with the NADCAP certification. - The association with the collaboration of IHOBE organised internal environmental quality courses. In addition, the first internal auditor course in EN9100 was organised by and for associates. In total, these courses were attended by 56 people from virtually all our associate organisations - Participation in new 7PM European programmes: FUTURE, AISHA II, DREAM, FANTOM II. - GTID (Grupo de Trabajo de Investigación y Desarrollo) successor to the Technology Committee (COMTEC) celebrated its 15th anniversary and initiated 6 expert group’s carry out R&D projects in collaboration: Nanotechnologies, Health Monitoring, Chip forming machining, Joining Technologies, flexible and intelligent tooling and simulation of manufacturing processes.
... 2007 ...
- AERNNOVA became the most important group in Spain in the manufacturer of Aeronautics structures and the only Spanish company within the council organised by Airbuds for the A350, and made major investments in the dollar zone. Likewise, ITP was the only Spanish company to design, manufacturer and integrates complete subsystems for engines and made heavy strategic investments in the area of maintenance. - Consistent with market demands, the companies in the Cluster reached their maximum levels of expansion with 34 production centres outside the Basque Country, 25 in the rest of Spain and 9 abroad. - For the first time,the turnover of the Basque Aerospace Cluster exceeded the 900M€ barrier and employment exceeded 6500 jobs. The Basque Country accounted for 63% of the total turnover and 55,5% of employment. - Grupo ACITURRRI (associated from the beginning through its sister company SPASA) and MEDIA Consultores (today ALTRAN Technologies).
24 -- 4
PRODUCTION CENTRES AND PROGRAMMES
1997
Plants, Production centres and technical offices outside the Basque Country: Madrid [2].
4
CENTROS PRODUCTIVOS Y CADENA DE VALOR -- 25
2007
Plants, Production centres and technical offices outside the Basque Country: Barcelona, Cรกdiz [3], Madrid [10], Miranda de Ebro, Orense, Sevilla [6], Tarazona, Toledo [2].
Plants, Production centres and technical offices outside Spain: Brazil [2], USA [2], Malta, Mexico [2] and the United Kiungdom [2].
1997
PROGRAMMES
4
PRODUCTION CENTRES AND PROGRAMMES -- 27
2007
5
MAIN CLIENTS AND PROGRAMMES
GAMESA hoy AERNNOVA
28 --
SME= less than 250 Aerospace employees
PRINCIPALES CLIENTES Y PROGRAMAS -- 29
SPASA hoy ACITURRI
5
TECNICHAPA hoy WEC
Conceptual Design / Complete Sub-Systems –metallic and Composites- / Engineering / Castings / Tooling / Sheet Metal Work / Components /Systems & Equipments / Treatments / Testing / Certification / Maintenance / Product Support
Conceptual Design / Complete Sub-Systems –LPTs- / Engineering / Castings / Tooling / Sheet Metal Work / Components / Systems & Equipments / Treatments / Testing / Certification / Maintenance / Product Support
Design & Engineering / Systems & Equipments / Software / Tooling / Components / Treatments / Testing / Certification
HEGAN STATISTICS
6
ESTADÍSTICAS DE HEGAN -- 31
32 -- 6
HEGAN STATISTICS
6
ESTADÍSTICAS DE HEGAN -- 33
ASSOCIATES
ASSOCIATE COMPANIES
34 -- 7
RESEARCH CENTRES
7
ASSOCIATES
-- 35
ACKNOWLEDGEMENTS
Following what has become a tradition, set some years ago, I should like to end this 1997-2007 annual report by expressing my sincere gratitude to all those people with whom we have had the good fortune of sharing our professional experiences over these years with special reference to Miguel Angel Hernán and Juan Pedro Vela. For the group of people who work in this association and for myself, many recollections and memories come to mind when we think back and remember the many different feelings and concepts that went through our minds when we set out on this adventure: hope; trepidation; co-operation; support; differences of opinion; fears; rancour; a shared vision; enrichment; challenges; directives; silent, efficient work; long-term; generosity; “cluster” men and women; strategy, and so on. The infinite number of different situations we have lived through and the great variety of people with whom we have shared our day-to-day experiences, strengthen our conviction that co-operation is a more and more valiant option; the existence of cluster associations, as entities created by and for co-operation, can help many different industrial and economic sectors to realise their potential and develop more efficiently in response to the challenges with which they are faced. On this the tenth anniversary of HEGAN, we, the people who work in this association, can say that we have had the honour of working with a group of people whose professionalism and worth as human beings has had a profound effect on us and their motivation has made the job of working hard in order to achieve the goals set out for this association much easier. We will continue to work with determination and pride in the services we provide to our beloved sector and, in short, to society to whom we owe our existence. Many thanks for your invaluable, constant and essential support.
José Juez Langara Managing Director