The Hindu Business Line : Boeing signs 10-year deal with HAL

New Delhi, Dec. 21 The US-based Boeing Company and Hindustan Aeronautics Ltd (HAL) on Thursday signed a 10-year memorandum of understanding which is intended to bring more than $1 billion of new aerospace manufacturing work to India.

The agreement that was signed here by the President and Chief Executive Officer, Boeing Integrated Defence Systems, Mr Jim Albaugh, and the HAL Chairman, Mr Ashok Baweja, also includes sharing key Boeing business and manufacturing tools with the Indian company.

The agreement would see Boeing and HAL explore business opportunities aimed at transferring work packages to India with an initial value of between $10-20 million annually. The size and complexities of the work packages would increase as business opportunities grow, officials said. The agreement will also see Boeing support HAL in developing manufacturing processes and capabilities needed for the production of hardware for the US company and also for its sub-contractors.

HAL has agreed to offer Boeing competitive pricing, to invest in the required manufacturing infrastructure and to join Boeing in seeking recognition by the Indian Government for the value of the work packages and technology transfers in support of credits against both existing and future offset obligations. In addition, Boeing will also support the training and transfer of its best practices for lean principles and supplier and programme management.

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