KUALA LUMPUR: DRB-HICOM’s subsidiary, Composites Technology Research Malaysia Sdn Bhd (CTRM) is sanguine about the encouraged demand for the new aircraft globally particularly from airliners.
Its chief executive officer Shamsuddin Mohamed Yusof said CTRM would continue to aggressively bid in manufacturing aircraft components, diversifying into aircraft seats production and venturing into high-value added sub-assembly and assembly works.
“The aerospace industry continues to enjoy good growth momentum. Apart from going after some of the low-hanging fruit business, we are currently bidding for more contracts and expansion of orders from existing customers and prominent aerospace players.
“We are confident to be able to benefit from such crutch as there will be orders from original equipment manufacturers (OEMs), despite the lack of new aircraft development,” he told NST Business in an interview recently.
According to Airbus Global Market Forecast 2018-2037, about 37,400 new aircraft valued at US$5.8 trillion will be required over 20 years, with traffic growing at a resilient 4.4 per cent per year, driving a need for 37,390 new passenger and freighter aircraft.
Airbus chief commercial officer Eric Schulz said there is a growing trend to use aircraft across a broader range of operations, with today’s more capable aircraft blurring the boundaries between market segments.
“These realities made us develop a new segmentation with small, medium, large and extra-large categories, reflecting more closely the way airlines operate aircraft,” he said.
Airbus noted that the growth drivers include private consumption increasing 2.4 times in emerging economies, higher disposable incomes and a near doubling of the middle classes globally.
The report also highlighted that greater aircraft range and capacity through technological developments allow airlines the flexibility to explore new business opportunities whilst maintaining focus on cost reduction.
Shamsuddin said CTRM is also committed to pursue into more integrated assembly for its future plan to manufacture aircraft seats and interior parts for the aircraft including galleys and lavatories.
“We believe that there are the areas we can continue to leverage on composite application in order to boost our future business.
“However, it is still in preliminary stage and we have been talking to several parties for this plan. We also work with certain research institutes and partners for our potential customers,” he added.
Shamsuddin said CTRM’s biggest customers include Spirit AeroSystems (produces wings components) and UTC Aerospace Systems (produces fan cowl).
CTRM group’s overall revenue is largely derived from Airbus, Boeing and others, contributing about 70 per cent, 27 per cent and 3.0 per cent, respectively.
Shamsuddin pointed out that CTRM began in the bidding activities for the aircraft seats manufacturing and had presented its test result to potential customers.
Shamsuddin said through continuous development, CTRM would also create more employment for Malaysians with the aim of adding 300 jobs within two to three years from the current 2,700 jobs at its facility in Batu Berendam, Melaka.
“Aerospace industry is a highly regulated sector that requires competent workforce. We currently employ technicians, executives and engineers, which are the crucial jobs at our plant. This is the benefit that the industry contributed to the well-being of the people locally,” he said.
Shamsuddin said CTRM is focused on improving its operation efficiency, identifying new technology to enhance its aircraft components manufacturing and developing its human capital to remain competitive and ensure future sustainability.
“We were seeing that the aerospace industry landscape in the past few years was in the midst of transforming itself into more cost-conscious.
“OEMs like Airbus and Boeing are now looking more rigorously on the cost-reduction activities, enabling them to remain competitive and sustainable in the long run.
“Demand from airliners is centred towards price reduction for aircraft, which has become more obvious than before, particularly with the emergence of low-cost carriers (LCCs) as their business model require them to look into ways of cost-cutting measures,” he said.
Although there was not much of new generation aircraft development, Shamsuddin said aircraft requires years to manufacture unlike cars, however, airlines kept placing their orders for an improved version of aircraft.
“Being the manufacturer for the aircraft components, we are seeing the shift from the traditional technology to more advancement technology application.
“It’s important for us to relook into this to stay ‘afloat’ as the industry landscape has been changing and becoming more demanding,” he said.
Shamsuddin said CTRM has established a few collaborations with institutions and researchers as well as academia from the European universities and OEMs to formulate new material application.
He said the application must suit with new technology including the resin transfer moulding system, out-of-autoclave processing, infusion technique and thermoplastic structure that are centered towards cost breakthrough.
“We are seeing a lot of experimentation going on in the industry. CTRM is moving towards that direction to ensure the new technology can serve us better,” he said.
Shamsuddin said CTRM is slated to complete its sixth manufacturing facility worth RM125 million by end of this month, giving a combined floor space of 1.0 million sq ft to be used for the assembly of aircraft components for Airbus A320 and A350 shipsets.
CTRM is primarily involved in manufacturing aircraft components including wings, tailplane and fan cowl (engine cover), using composite materials.