Aerospace sector brochure by internazionalizzazione

A glimpse at manufacturing in Apulia

AEROSPACE

FOR FURTHER INFORMATION REGARDING THE INTERNATIONAL BUSINESS PROMOTION INITIATIVES OF THE APULIA REGIONAL GOVERNMENT Puglia Sviluppo S.p.A. SPRINT Apulia REGIONAL DESK FOR INTERNATIONAL BUSINESS PROMOTION

A glimpse at manufacturing in Apulia

Via delle Dalie, angolo Via delle Petunie Zona Industriale – 70026 Modugno (BA) Italy Ph. +39 080 549 88 11 Fax +39 080 549 88 153 sprint@regione.puglia.it

FOR FURTHER INFORMATION REGARDING THE INITIATIVES OF THE APULIAN AEROSPACE BUSINESS CLUSTER Apulian Aerospace Business Cluster Strada Stat. 7 Appia, km 706+030 72100 Brindisi Italy Ph. +39 0832 29 97 49 Fax +39 0831 181 59 10 info@apulianaerospace.eu www.apulianaerospace.eu

The aerospace sector 6 12 16 20 24 28 32 38 42 52 56 64 72 74 75 76 82 88

A long Italian story Looking down on Apulia The aerospace sector Main fields of specialization The strength of the business clusters The main production hubs and major airports Innovation, technology and development Aerospace research centres Apulian wings Engines and software: Apulian excellences On the frontiers of space Investing in Apulia Apuliaâ&#x20AC;&#x2122;s strengths The infrastructure in place The entrepreneurial network and exports Universities and research centres Incentives for development Regional investments in aerospace

A glimpse at manufacturing in Apulia The aerospace sector The Apulia Regional Government, Ministry of Economic Development, with this brochure, aims to present Apulia’s aerospace industry, one of the most successful sectors in the region’s economy, in the hope that the level of excellence it has achieved will act as a springboard towards new markets and so create yet more opportunities for growth and jobs across the territory. Today, Apulia is one of Italy’s top regions in terms of aerospace activity and it has earned considerable recognition of this fact at national and international levels. The aerospace sector is a clear example that embodies the regional government’s current policies. In fact, recognising that it is one of the most strategic levers for territorial development, it has benefitted from focused, effective policies implemented by the Apulia Regional Government - Economic Development, Employment and Innovation Policy Department. Up until a few years ago, Apulian aerospace industries were not particularly active on overseas markets, and companies tended to work only as sub-contractors.

The trigger for change was the creation of the technological and business clusters promoted by the regional government, which in conjunction with regional initiatives in support of international business promotion, and business incentives, enebled companies to pursue foreign clients, leading to excellent export figures. In 2010, the regional government began to significantly intensify its promotional programmes directed at foreign markets through its International Business Promotion Department, which organized participation in fairs, seminars and workshops, foreign missions for Italian companies abroad - and vice versa set up bilateral meetings and even created training courses in internationalization. This intense activity, born of targeted industrial policies, has meant Apulia, as a region, has been chosen to host important international events, including “Space4you: Space as a key to competitiveness and growth”, an international conference organized in Bari for the first time on 27 and 28 February 2014 by the Apulia Regional Government and NEREUS (the Network of European Regions Using Space Technologies) and in collaboration with the Apulian Aerospace business cluster. It is yet more proof of the key role played by Apulia in space technology. 3

An Apulian “ultralight” aircraft in flight over the region’s Adriatic coast.

LONG

Only a few are lucky enough to see the earth from space, a sight that arouses the emotions and invites important questions. It is a challenge that man has always tackled with ingenuity and technology and it has led to innovation and wealth. A challenge that, since the days of the great Leonardo da Vinci himself, has led to Italy’s success in aerospace research, thanks in part to the important contribution made by Apulia, a region that has been “flying” for a long time now - the aerospace industry has, in fact, been present in the region since 1934.

The region has a long tradition of well-established companies and as they have grown, they have transformed Apulia’s aerospace sector into one of the driving forces behind the territory’s economy. Thanks to its strategic position, the region has been used as a logistic base for air traffic since the early 20th century, after World War I. The military airports of Brindisi, Grottaglie, Galatina, Bari  and Foggia date to that period, as does Apulia’s aerospace industry - and that helped sustain Italy’s national airline, at that time in its infancy.

Italian STORY 7

Brindisi Airport.

Detail of the retractable carriage of one of the ultralight aircraft built in Apulia.

Looking

DOWN ON

Since 1934, Apulia’s aerospace industry has continued to extend across the territory, thanks in part to the immense synergy created between large, medium-sized and small companies, local administrations and research centres that have, between them, created a true regional hub of excellence. Several of the region’s large companies also drew on smaller concerns to join them in the creation of the region’s successful industrial network.

Apulia is the only Italian region that not only accommodates the entire production chain, from manufacturing components to the creation of software, it is also home to companies in different design and production sectors, from fixed-wing aircraft to helicopters, aerospace propulsion and software and state-of-the-art technology for use in composite materials in carbon fibre for which Apulia is an acknowledged world-leader. Great industrial capacity, a drive to innovate and research along with strong ties to the territory, the regional government and the targeted incentives it offers are just some of the ingredients that have led to the success of Apulia’s aerospace sector and the reason that today, it is also a leading player on the international stage.

APULIA

Components of the B787 Dreamliner fuselage, produced in Apulia, take to the skies from Taranto-Grottaglie Airport aboard a B747LCF.

THE

AEROSPACE

SECTOR

The sector in numbers * Active companies: over

6000

* Number of employees: ABOUT INCLUDING RESEARCHERS ** Exports:

393 million Euros

* SOURCE: DAP - Apulian Aerospace Business Cluster, 2013 ** SOURCE: ITA (Italian Trade Agency), 2013 16

An Apulian laboratory that utilizes innovative techniques for materials analysis (Brindisi).

Design, production, testing and maintenance of structures in metals and ceramics for use in engines and aeronautics Technologies for sensor and mechanical systems Smart structures made from composite materials Intelligent engine, aeronautical and space systems Remote tracking

Main fields of specialization Design and construction of aircraft and their components, both mechanical and electronic Aircraft production and assembly Production of aircraft interiors Quality control Design, production and testing of structures in carbon-fibre composite materials 20

Detail of equipment used in industrial tomography (x-ray imaging).

THE

strength

The regional government takes the view that “unity strengthens the economy of the whole region” and it backs that vision by providing know-how and funding to support all the various industrial sectors. It is this commitment that, in the case of the aerospace sector, led to the establishment of the Apulian Aerospace Business Cluster (DAP) and thereafter to meta- business clusters that today operate on a national level, as well as the Apulian Aerospace Technological Cluster (DTA). Both clusters actively seek to increase production and competitiveness, create innovation, stimulate and support research and training and ultimately, foster the internationalization of local enterprises.

The region’s primary objective, actively backed by the business clusters, is to develop ground-breaking educational opportunities that are increasingly orientated towards the reality of today’s job market and it was with this in mind that Italy’s only technical training institute dedicated to the aerospace industry – It’s Aerospazio Puglia was established in Brindisi, offering a two-year post-diploma course to train specialist technicians.

of the

business clusters Apulian aerospace business cluster (DAP):

57 companies 8 universities and research centres 8 government agencies, union

and sector-business associations *

* SOURCE: DAP - Apulian Aerospace Business Cluster, 2013

Apulian Aerospace Technological Cluster (DTA):

7 universities and research centers 12 companies **

** SOURCE: DTA - Apulian Aerospace Technological Cluster, 2013

The first production stages of printed circuits for aerospace use, (Modugno, BARI).

THE MAIN PRODUCTION HUBS AND MAJOR AIRPORTS

●

FOGGIA DOMESTIC ● AIRPORT

●

REMOTE TRACKING SYSTEMS AND SPACE SOFTWARE INTERNATIONAL AIRPORT

BARI

FIXED-WINGS ●

BAT

●

(Barletta-Andria-Trani) ●

FIXED-WINGS, ROTARY-WINGS AND PROPULSION INTERNATIONAL AIRPORT

BRINDISI

●

INTERIOR AIRCRAFTS

LECCE TARANTO SPACE SOFTWARE ● FIXED-WINGS ● GROTTAGLIE CARGO AIRPORT ● TEST BED AIRPORT ● 28

Ultralight airplane production plant in Monopoli (Bari).

Innovation, and technology

development

The primary aim of the Apulian Aerospace business cluster (DAP) has always been to support the development of Apulian companies active in the sector. This is accomplished by building cooperation between protagonists and encouraging investment in research, training and internationalization. The cluster acts throughout the territory in line with the region’s development plan to broaden national and international relationships, and to create a progressive process that will result in innovation and high-quality productivity as well as technological and economic growth. The cluster encourages research projects in the various ambits of the aerospace industry, including the production of integrated sensors that monitor structural conditions, combustion and the reduction of environmental pollution along with the production of mini/micro UAVs (drones), new engines for light aircraft, innovative components for new aerodynes, projects on thermal resistance, predictive maintenance and the repair of composite materials. 32

Pursuant to the regional government’s model, according to which innovation is synonymous with economic growth, the Apulian Aerospace Technological Cluster (DTA) has been working for years to strengthen technological excellences and increase competiveness and production levels of companies in this sector. The cluster aims to create a hub of excellence in applied research by encouraging the establishment of public laboratories and training qualified researchers. The research projects currently underway are looking at three things. Firstly, projects involving technologies useful to the design, testing and production of structures in composite materials: SPIA – innovative load-bearing aeronautical structures, MASTCO – composite materials and structures for light aircraft, drones and applications for engines, DITECO – defects, damage and repair techniques related to the production processes of large composite structures, and MAIPCO – advanced inspection and control methods for the production processes of complex composite structures. Secondly, projects about technologies for designing, producing, testing and maintening structures and components made of metals and ceramics for use in engines and aeronautics: TEMA – production technologies for aluminium and titanium alloys, and MEA – production and maintenance technologies for use in aeronautical jet engines, and thirdly, those are: technologies for use in sensors and mechanical systems, smart structures in composites as well as intelligent engine, aeronautical and space systems: the APULIA SPACE project that involves sensors, models and integrated systems for structures, engines and aircraft management, and the SMEA project that is looking into technologies for sensors and micro-electronic systems for use in health monitoring in the aeronautical / space sector. PRACTICE is another industrial research project that aims to set up a consortium of operators and small and medium-sized businesses involved in the aerospace sector that will lead to the establishment of a technological platform(cloud framework)based on Secure Multiparty Computation (SMC). 33

Product testing phase for components used in aeronautics.

Manufacturing process for components used in aeronautics.

AEROSPACE RESEARCH CENTRES

Universities:

University of Bari

Polytechnic of Bari University of Salento

Research Centres: CETMA Engineering ENEA CNR-IMM CNR-ISSIA OPTEL INP Laser Centre

A company active in the mapping and development of geo-space solutions (Bari).

In addition to this major international project, civil and military aircraft, the latest generation of drones, airframes for commercial airlines and ultralight leisure craft are also produced in Apulia. Thanks to the efforts of the Regional Government, even small companies are able to take on important projects. Apulia today is also a centre of excellence when it comes to the civil and military helicopter markets. The region also has a role as the technical and production co-ordinator for various national and international centres and in the design and production of systems and components on its home ground.

APULIAN WINGS One of Apuliaâ&#x20AC;&#x2122;s strong points is in the production of fixed-wing aircraft components â&#x20AC;&#x201C; a production network that involves some of Italyâ&#x20AC;&#x2122;s largest manufacturers. Amongst the various made in Puglia products, the most important is the manufacture of some of the components used in the B787 Dreamliner, the most innovative airliner - in terms of its aerodynamics and the materials utilized currently in use by major airlines. Manufacturing plant in Grottaglie produce some sections of the fuselage, whilst those in Foggia produce the horizontal stabilizers used in the tail plane.

Detail of a military helicopter (Brindisi).

Production of printed circuits for aerospace applications, in Modugno (Bari).

Manufacturing plant for military helicopters (Brindisi).

Computerized lathe for the production of aluminium components.

Apulian excellence in the aerospace sector also involves software design - another of the region’s important resources. Researchers and IT experts based here are engaged in the development new high-tech IT systems for satellite navigation, the automation and security systems for fixed-wing aircraft and helicopters and for collecting data by satellite.

Engines SOFTWARE: APULIAN AND

New designs and the manufacture of state-of-the-art engines mean that the latest generation of turbo reactors are propelling Apulia towards yet another area of excellence. The region has always been a hub for mechanical engineering and it has been able to transfer the knowledge accrued there to the aerospace industry. Research into new materials and nano-technologies are also a contributory factor. Some components for the new turbofan engine, Genx, used in the innovative B787 airliner – Dreamliner – are built in Apulia, as are other engines used in military, civil and ultralight aircraft.

EXCELLENCES

Prototype of a micro-sensor for monitoring atmospheric pollution.

ON THE

The management software for Columbus, a state-of the-art European laboratory in orbit around the International Space Station where important experiments in physics, biology and physiology are carried out is amongst one of Apuliaâ&#x20AC;&#x2122;s most innovative product and the region is also part of another international project the Ariane 5 rocket used for satellite launches. The regionâ&#x20AC;&#x2122;s success in the space sector is due to the long-standing and well-recognised experience of regional businesses in designing new software and components as well as the vigorous pursuit of innovation by both the regional government and the business clusters across the entire sector.

FRONTIERS OF Space is one of the frontiers that man has been able to conquer, a challenge that has always fired the imaginations of scientists, writers, entrepreneurs and dreamers, and one that Apulia took on many years ago and that, in time, led to its involvement in programmes set up by the European Space Agency (ESA). High-technology information systems, engine modules and components are just some of the made in Puglia products that are helping man to continue to conquer the frontiers of space.

SPACE 57

There are companies recognised as leaders in software design for aerospace based in Apulia (Taranto).

Prototypes of intelligent robotics systems.

X-ray inspection machine for electronic components (Bari).

Apulia is one of Southern Italy’s most dynamic regions. The development model to promote new synergies between businesses and research to improve infrastructure and the availability of a qualified workforce has proved to be a winning strategy for all manufacturing sectors.

The regional government ensures high standards in the management of international relations, as well as support for new foreign operations arriving in the territory.

INVESTING IN APULIA The great strength of the “Apulian model” is the guarantee of clear guidelines for economic operators, including the creation of incentive packages for all types of Apulian businesses that are dynamic, proactive leaders in their respective sectors, operating at an international level, open to experimentation, but also custodians of a heritage of rich artisanal traditions.

Apulia’s strategic geographic position, its commitment to environmental sustainability, an avant-garde social welfare system, and the wealth of its social capital are also factors that make Apulia a region of beauty and also of interest, both for investment and as a place to live.

Many innovative projects came into being thanks to the resources made available by the regional government.

The manufacture of electronics components.

Soldering microprocessors.

A REGIONAL GOVERNMENT THAT IS SENSITIVE TO THE NEEDS OF BUSINESSES THAT INVEST IN THE DEVELOPMENT OF THE LOCAL ECONOMY. A POSITIVE BUSINESS CLIMATE WITH a highly DYNAMIC ENTREPRENEURIAL SYSTEM.

APULIA’S AN EXCELLENT NETWORK OF UNIVERSITIES AND RESEARCH CENTRES.

A STRATEGIC GEOGRAPHIC POSITION AND EXCELLENT INFRASTRUCTURE.

A HIGHLY SKILLED WORKFORCE AND AN ACTIVE JOB MARKET.

STRENGTHS WELL STRUCTURED INCENTIVE PACKAGES AIMED AT ATTRACTING FOREIGN INVESTMENT AND ENCOURAGING ENTREPRENEURIAL DEVELOPMENT OF REGIONAL PRODUCTION.

A GOOD QUALITY OF LIFE (THE APULIAN LIFESTYLE). 72

THE

INFRASTRUCTURE

INPLACE 12.000 KM OF ROADS 1.528 KM OF RAILWAY LINES

2 INTERNATIONAL AIRPORTS AND 2 DOMESTIC AIRPORTs 9 PORTS – COMMERCIAL & PASSENGER 1 INTERPORT 99.2% OF THE POPULATION HAS ACCESS TO BROADBaND

THE

entrepreneurial NETWORK AND

Exports 332,000 active businesses; *

1 company for every 12 citizens ** 1 million 156 thousand people in work *** 7,9 BILLION EUROS WORTH OF EXPORTS *** 2,039 BILLION EUROS OF EXPORTS DURING THE FIRST QUARTER OF 2014 ****

18.1% ON 2013)

(

Sources: * Bari Chamber of Commerce (CCIAA), 2013 ** Bari Chamber of Commerce and Istat, 2013 *** Istat, 2013 **** Istat, 2014 74

UNIVERSITIES ANDRESEARCH

CENTRES

4 UNIVERSITIES (3 PUBLIC & 1 PRIVATE) 1 POLYTECHNIC 30 NETWORKS OF PUBLIC RESEARCH LABORATORIES 6

TECHNOLOGICAL BUSINESS CLUSTERS RECOGNISED BY MIUR (italian Ministry of Education, University and Research)

3 PUBLIC-PRIVATE GROUPS

Laboratory for the design of prototypes with micro-sensors (Brindisi). 78

260째C Liquid soldering process. 80

In recent years the Region of Apulia has activated total investments in production of 2,4 billion euros on regional territory, of which circa 630 millions are from direct government budgets. In addition to EC regional funding, the national Ministry for Economic Development has instituted the Fund for Sustainable Growth, with objectives of promoting research, development and investment, reinforcing production structures, promoting enterprise at the international level and attracting foreign investment.

INCENTIVES FOR

DEVELOPMENT

Regional government policies and actions provide a strong push towards synergies between the production and the research spheres, leading to experimentation, innovation and knowledge transfer. The regional government has also allocated and continues to allocate substantial resources to support and promote Apuliaâ&#x20AC;&#x2122;s business sectors. A large part of these resources derive from the European Regional Development Fund, and are designated for companies of different dimensions, active in the different sectors of production operating in Apulia.

Regional Programme Contracts for Large Enterprises 292 million euro for manufacturing companies, to favor development of projects and manufacturing activities, strengthen the competitiveness and attractiveness of the region and promote employment.

Regional Programme Contracts for the tourism sector 50 million euro for supporting and for favoring growth of sousteined off-peak tourism.

AID for medium-sized companies and consortia of small-to-medium sized businesses (Integrated incentives packages) The current call provides 201 million euro for manufacturing and agro-food processing and commercialization, to create employment, social stability and economic dynamism.

AID FOR MEDIUM ENTERPRISES AND CONSORTIA OF SMALL-TO-MEDIUM ENTERPRISES ACTIVE IN TOURISM SECTOR (Integrated incentives packages for the tourism sector) The current budget of 54 million euro is designed to raise standards of quality and classification for the Apulian tourism offer.

Aid packages for micro & small business (Title II) A total of 107 million euro to favor development of economic activities by small and very small businesses through improved access to credit.

Aid packages for small Businesses for touristic sector (Title II â&#x20AC;&#x201C; Tourism) The call for proposals provides 25 million euro in assistance for small and medium businesses active in tourism-hotel services, tourist port management and beach services, and for small-medium enterprises that undertake new tourism and hotel initiatives including restoration-renovation of architecturally and historically significant properties.

Aid packages for innovative small businesses In Early Development The program provides 15 million euro of support to stimulate the birth of new micro and small enterprises for spin-off application of research results in industrial sectors strategic to Apuliaâ&#x20AC;&#x2122;s regional development (new materials, advanced logistics, advanced ICT manufacturing, energy conservation and environmental enhancement, public health, agro-food systems).

Aid packages for operative innovative small businesses The call for proposals provides 15 million euro to support consolidation and growth of innovative micro and small enterprises active in the strategic industrial sectors identified by the Apulia Region Government (new materials, advanced logistics, advanced ICT manufacturing, energy conservation and environmental enhancement, public health, agrofood systems). The program supports investment projects proposed by businesses already in operation, for further development of previous research and entrepreneurial activities.

Integrated incentives packages for small businesses The call for proposals offers over approximately 49.5 million euro in incentives to the most dynamic small Apulian businesses, for consolidation, innovative restructuring and expansion. 86

Aid package for the setting up or moving to suburban areas The call for proposals offers a total of 10 million euro for consortia or company networks intending to move manufacturing units out of urban centers with population over 40,000, to extra-urban industrial areas and production parks.

Call for proposals: Internationalization The current call is the first regional incentive programme in support of international business promotion. With a budget of 20 million euro, it is aimed to increase the number of exporters operating in Apulia.

New Enterprise Initiatives (NIDI) This initiative of the Apulia Region Government is directed at women, youth, the unemployed, persons subject to layoff, contract staff and the self-employed, who wish to begin a new business. The program provides 54 million euro in forgivable loans and mortgage financing, with investment insurance of up to 80 or 100%. 87

REGIONAL Apulia’s regional government has provided strong support to the aerospace sector through numerous business incentives that have allowed large, medium, small and even micro enterprises to invest, become more innovative and increasingly competitive on international markets. Medium and large companies have presented projects of significant innovative impact, while small companies have built ultralight aircraft and invested in advanced materials.

Companies have been able to invest in their futures – and plan it – thanks to the business incentives provided by the regional government such as Regional programme contracts, integrated incentives packages for small-to-medium sized companies, start-ups, aid packages for innovative small businesses – both new and existing.

INVESTMENTS IN AEROSPACE

glimpse at manufacturing in Apulia

Via delle Dalie, angolo Via delle Petunie Zona Industriale – 70026 Modugno (BA) Italy Ph. +39 080 549 88 11 Fax +39 080 549 88 153 sprint@regione.puglia.it

EUROPEAN UNION

Project co-financed by the E.U., in accordance with the Operational Programme E.R.D.F. European Regional Development Fund Puglia 2007-2013 – Line 6.3., Action 6.3.2 “Initiatives in support of local business internationalisation”

APULIA REGION ECONOMIC DEVELOPMENT EMPLOYMENT AND INNOVATION POLICY DEPARTMENT International Business Promotion Office Corso Sonnino 177 70121 Bari Italy Ph. +39 080 540 47 47 Fax +39 080 540 47 43 servizio.internazionalizzazione@regione.puglia.it www.regione.puglia.it www.sistema.puglia.it