Boeing set to acquire Hawker from TenixHawker

[David Bromage]

Boeing set to acquire Hawker from TenixHawker
CANBERRA, Oct 17 AAP - American aerospace company Boeing is set to
acquire the long established Australian aviation firm Hawker de Havilland.
The move means Boeing will own a firm manufacturing aircraft components
for itself as well as for competitors Lockheed Martin, Airbus and British
Aerospace.
Hawker de Havilland, founded in 1927, currently employs 950 people at
plants in Bankstown, Sydney, and Fishermens Bend and Bayswater, Victoria.
Revenue exceeded $160 million last year.
Hawker de Havilland is being sold by Australian firm Tenix Defence
Systems which acquired the group in May 1998. The sale, for an undisclosed
amount, is expected to be finalised this month.
This marks the latest step in Boeing's expansion in Australia. The
company owns another major components manufacturer, AeroSpace Technologies
of Australia (ASTA Components), the former Government Aircraft Factories,
at Fishermens Bend.
Boeing Australia executive chairman Ken Peacock said the acquisition
was another milestone in the partnership between Boeing and Australia
which went back more than 60 years.
"With this acquisition Boeing will achieve better utilisation of its
ASTA Components subsidiary as well as lower manufacturing costs through
increased operating efficiencies," he said in a statement.
"With their complementary skills, the combined operations will be even
more competitive suppliers to aerospace companies, and continue as
significant exporters to global markets.
"Hawker de Havilland and ASTA will be available to team with all prime
contractors for Australian defence projects."
Tenix managing director Paul Salteri said the global consolidation in
the aviation industry meant that Hawker de Havilland would have the
strongest prospects as part of Boeing, the world's largest aerospace
manufacturer.
"Tenix will continue a strong involvement in aviation in Australia
through Tenix Defence Systems," Mr Salteri said in the statement.
"We will also continue to pursue our strategic aim of greater balance
within the Group with the sale of the Hawker de Havilland companies
providing cash and therefore other opportunities."
Industry Minister Nick Minchin said the move was good news for the
Australian aerospace industry.
"This acquisition should improve the company's leverage for involvement
in national defence projects and enhance its capabilities to meet
defence's future capital needs as well as project modification,
maintenance and support requirements," he said.
Boeing is prime contractor for the RAAF's $2.5 billion airborne early
warning aircraft project, recently postponed by federal cabinet in a move
which provoked widespread concern within defence and industry.
AAP mb/daw/hu