AUVERGNE-RHÔNE-ALPES AEROSPACE

Transcription

1 AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Intrductin - R&D - Electrnic Systems - Materials Industry SMEs Prspects - Capability Index

2 AEROSPACE BY NATURE A leading aerspace netwrk Majr aerspace players respnsible fr systems and equipment design and prductin Wrld class suppliers ffering a large range f prducts and services Efficient educatinal netwrk and an high level aerspace research hub 350 INDUSTRIAL PLAYERS INNOVATIVE MATERIALS AND PROCESSES JOBS 3.3 BILLION ANNUAL SALES ADVANCED EMBEDDED SYSTEMS EFFICIENT MRO SOLUTIONS Supprted by:

3 Dear Reader, Welcme t the Auvergne-Rhône-Alpes Aerspace reprt, prduced in partnership between Glbal Business Reprts and the Auvergne-Rhône-Alpes Aerspace Cluster. We hpe that this first cmprehensive publicatin f the reginal industry will prvide yu with a better understanding f the sectr, its key decisin-makers, and the pprtunities and challenges that it ffers. Glbally famed fr its beautiful landscapes, buntiful nature and rich cultural and cmmercial histry, the Rhône-Alpes regin was recently merged with Auvergne, psitining the regin t be a new pwer ecnmy. The regin benefits frm its gegraphical psitin prviding access t the Eurpean market, strng talent pls with the netwrk f specialised universities, innvatin capabilities with majr Research Centers, diversified and strng industry and abve all, a high quality f life. The regin s president, Laurent Wauquiez, has set ambitius plans fr grwth in aerspace in particular, building n the presence f many glbal players already psitined here, including Michelin in its Clermnt Ferrand headquarters since the 19th century, Cnstellium with its wrld-class Issire mill and Lrd s recent arrival t manufacture in the regin. Hwever, the drive fr innvatin is mst evident amngst the regin s SMEs and universities that alne r via cllabratins are prducing innvative prducts in electrnic systems, materials, MRO and beynd. As the SMEs shake up the sectr with their lightweight, mre efficient r time-saving slutins, many are als facing a challenge t meet the ramp-up demand frm primaries which pens the drs fr cnslidatin r internatinalizatin ften as a necessity t survive. France s President Macrn has publicly declared that the aerspace and defence industries will be key ecnmic drivers fr the cuntry during his ffice. Mrever, in 2017, at the Paris Airshw, the Auvergne-Rhône-Alpes regin s President Laurent Wauquiez and CEO f Dassault Aviatin, Eric Trappier, signed their cmmitment t advance the reginal industry in precisin mechanics, machining, mechatrnics and the advanced prductin prcesses within the regin. The ultimate aim is t psitin the Auvergne-Rhône-Alpes regin within the tp five clusters in Eurpe in the cming five years, but this requires cmmunicating the regin s capacity n a glbal stage. Hence, this reprt prvides a cmprehensive insight int the ecsystem f the regin s aerspace sectr after speaking with ver 50 leading executives frm the industry, as well as quantitative data t highlight the regin s ptential. Fllwing launch at the Lyn Aerspace Techdays, the reprt will be distributed t internatinal decisin-makers via GBRs netwrk and ur cnference partners s they t can understand the regin s ffering. Enjy the read, Francis Bergez President Of Cluster Auvergne-Rhône-Alpes Aerspace Cluster Alice Pascletti General Manager Glbal Business Reprts (GBR)

4 CONTENTS Intrductin t Auvergne-Rhône-Alpes 8. ARA France s ther aerspace valley 10. Interview with The Regin Auvergne-Rhône-Alpes 11. Interview with the Auvergne-Rhône-Alpes Aerspace Cluster 12. Interview with Auvergne-Rhône-Alpes Enterprises Agency 13. Industry Executives Survey Results: Auvergne-Rhône-Alpes Aerspace 14. The Research Tax Credit Scheme: Spurring n Innvatin 16. Insights: The Search fr Talent 17. Interview with Ingenierie@Lyn The Research Tax Credit Scheme Opprtunities t advance innvatins in France and the Regin Electrnic Systems 20. Electrnics: The Current Trends 22. Interview with Thales Helicpter Avinics Interview with Secaer 23. Interview with Cruzet Aerspace Interview with SKF Aerspace 24. Interview with Teledyne e2v 25. Interview with Zdiac Aerspace Interview with Eldec France Capabilities Index Find yur partner in the Auvergne-Rhône-Alpes Materials Thinking Outside the Bx: What is it made f? 30. Interview with Cnstellium 31. Interview with Sintex NP 32. Interview with Safran Landing Systems Interview with Michelin 33. Interview with DBC 34. Cutting Edge Technlgies Interview with Jet Cut 35. Insights: Cutting and Treating Electrnic Systems Industry Prspects The regin s expertise in innvating in this sectr 38. Industry 4.0: Can Auvergne-Rhône-Alpes keep up? 40. Interview with Inprd 41. Insights: Industry 4.0 in Auvergne-Rhône-Alpes 42. Insights: SMEs stepping up t the primary expectatins 43. Editrial & Management Team Credits 44. Capability Index 50. Participating Cmpanies Directry Auvergne-Rhône-Alpes Aerspace 2018 Industry Explratins Glbal Business Reprts Materials This research has been cnducted by Laura Brangwin and Sarah Crmptn Dnnelly Edited by Mung Smith Graphic design by Gnzal Da Cunha A Glbal Business Reprts Publicatin Fr updated industry news frm ur n-the-grund teams arund the wrld, please visit ur website at gbreprts.cm, subscribe t ur newsletter by signing up t ur VIP list thrugh ur website, r fllw us n AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Experts share their insights n cmpsites vs traditinal materials 26-35

5 Nrth Sea Amsterdam NETHERLANDS Lille Brussels BELGIUM Auvergne- Rhône-Alpes Ruen Amiens HAUTS-DE-FRANCE LUX. Lux. Internatinal Bundary Regin Bundary Natinal Capital N GERMANY Caen NORMANDY Paris ÎLE-DE-FRANCE Chalns-sur- Marne GRAND EST Metz Strasburg Rennes Orleans PAYS DE LA LOIRE Nantes Pitiers CENTRE-VAL DE LOIRE F R A N C E Dijn BOURGOGNE-FRANCHE-COMTE Besancn Bern SWITZERLAND Vaduz Geneva Limges LIMOUSIN Clermnt- Ferrand Lyn AUVERGNE-RHÔNE-ALPES Saint- Etienne Chambery Grenble Turin ITALY Brdeaux Valence NOUVELLE-AQUITAINE Tuluse OCCITANIE Mntpellier PROVENCE-ALPES- CÔTE D'AZUR Marseille MONACO Andrra la Vella Kilmeters SPAIN ANDORRA Mediterranean Sea CORSICA Ajacci

6 GBR Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Image: GBR

7 Intrductin t Auvergne- Rhône-Alpes The Auvergne-Rhône-Alpes regin is very dynamic: it has a GDP f 235 billin, which is 12% f the GDP f France, and we anticipate cntinued grwth in the cming years. We want t prepare cmpanies in the regin t cntribute t and take advantage f this grwth, s we are wrking t simplify the landscape fr SMEs and t gather tgether all f the strengths f the new regin f Auvergne-Rhône-Alpes in rder t fster the crss-fertilizatin f cmpanies. - Cécilia Tejedr, Directr General, Entreprises Auvergne-Rhône-Alpes

8 EDITORIAL Glbal Business Reprts ARA - France's ther aerspace valley 8 With a GDP f $2.4 trillin, France is the third largest ecnmy in Eurpe and the sixth largest in the wrld. France has a strng internatinal reputatin in a number f key industries, ncluding energy, agriculture, autmbile and aerspace. Accrding t the Internatinal Air Travel Assciatin (IATA), revenues generated by the glbal cmmercial air travel industry have grwn by US$254 billin in the past 10 years. The French aerspace industry has bth cntributed t and benefited frm this grwth. With leading OEMs Airbus and Being ramping up prductin t meet increased demand, French cmpanies acrss the entire aerspace value chain are preparing fr cntinuing grwth ver the cming years. While the primaries f the French aerspace industry, such as Airbus and Dassault, are based in the French Aerspace Valley in Occitanie and Nuvelle Aquitaine, in the suthwest f the cuntry, the regin f Auvergne-Rhône-Alpes is fast becming an equally relevant hub. Frmed by the merger f the regins f Auvergne and Rhône-Alpes during the territrial refrm f French Regins in 2014, Auvergne-Rhône-Alpes sprawls acrss 70,000km² f sutheastern France, stretching frm the Swiss and Italian brders t the centre f the cuntry. The regin is as dynamic as it is large, generating 11.4% f the natinal GDP f France. Its GDP f 240 billin makes it the secnd richest regin in France and the eighth richest regin in Eurpe. It is ne f the mst highly develped industrial regins in Eurpe, with ver 500,000 f its inhabitants emplyed in industrial jbs, earning its reputatin as ne f the Fur Mtrs fr Eurpe, alngside Baden-Württemberg in Germany, Lmbardy in Italy and Catalnia in Spain. The regin is a hub nt nly fr industrial activity, but fr research, design, and innvatin. With ver 40,000 f the regin s residents wrking in research-based rles and ver 600 labratry facilities, it is ranked the secnd highest regin in France in terms f research utput, and the fifth highest in Eurpe. It is secnd nly t Île-de-France in terms f the number f patents filed each year, with 20% f all f the patents applied fr in France cming frm this regin. The regin basts a particularly strng ffering t the aerspace industry, bth in France and internatinally, as it is hme t a large number f thriving Tier 1 and Tier 2 suppliers fr Original Equipment Manufacturers (OEMs) as well as many SMEs (PMÉs) ffering mre niche prducts and services. Fllwing Laurent Wauquiez, the regins president s pledge t prmte the regin as ne f the five leading regins in aernautics within five years (Le Burget), and the partnership agreement and actin plan he signed with Dassault Aviatin in 2017, the industry in the regin lks set t grw. The actin plan pledges t develp aerspace industry apprenticeship prgrams within the regin and t spnsr start-up cmpanies in underrepresented sectrs f the industry. Supprt fr cmpanies within the regin: Ample supprt is available t help SMEs grw, including access t Eurpean research funding schemes and, perhaps mst significantly, frm the gvernment agency Entreprises Auvergne-Rhône-Alpes. The agency was funded in May 2017 upn the merger f the regins f Auvergne and Rhône-Alpes and exists t nurture business develpment in the regin. Directr General Cécilia Tejedr stresses the key ways that such a private-public partnership can ffer business develpment supprt: We are wrking t simplify the landscape fr SMEs and t gather tgether all f the strengths f the new regin f Auvergne- Rhône-Alpes in rder t fster the crssfertilizatin f cmpanies. We are identifying cmpanies with high grwth ptential and ffering them supprt in a number f AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

9 Glbal Business Reprts EDITORIAL Auvergne-Rhône-Alpes reginal GDP 244 billin dllars which is 11.6% f the natinal GDP f France 3.3 billin dllars is generated by the aerspace industry Mulins ALLIER Burg-en-Bresse HAUTE-SAVOIE AIN Clermnt-Ferrand RHÔNE Annecy LOIRE Lyn Chambéry PUY-DE-DÔME Saint-Étienne SAVOIE ISÈRE CANTAL HAUTE-LOIRE Grenble Le Puy-en-Velay Aurillac Privas Valence ARDÈCHE DRÔME ways, whether it be with HR and training, financing, investment, strategizing innvatin prjects, r bsting internatinalizatin. In additin t ffering training and financing, the agency als supprts SMEs t benefit frm pprtunities that they may therwise nt have the resurces t access, such as research grants and business meetings with internatinal cmpanies. Increasing the number f SMEs benefiting frm Eurpean funding is ne f ur Key Perfrmance Indicatrs Tejedr explained, and we attend aernautical business shws and set up meetings with internatinal cmpanies wh culd ptentially be interested in cming t wrk in France. We encurage them t cme t Auvergne-Rhône-Alpes by shwcasing the strengths f cmpanies in the regin. Prepared t meet the needs f the future: With leading OEMs requiring their suppliers t increase their prductin capacity in rder t meet their wn prductin ramp-up needs, cmpanies in the Auvergne-Rhône- Alpes regin are develping innvative ways t imprve prductin capacity and manufacturing efficiency. Cmpanies like GO2CAM and Inprd assist manufacturing cmpanies in incrprating Industry 4.0 int their prcesses, ffering service such as Cmputer Assisted Manufacturing (CAM) techniques and sftware prviding digital simulatins f manufacturing plants in rder t maximize efficiency. Others, like Grupe Rux-Jurfier, ffer cmpanies the pprtunity t incrprate cllabrative rbtics int their plants, bth t perfrm entirely autmatic prcesses and als t wrk cllabratively alngside human peratrs t perfrm mre cmplex tasks. These advancements prmise t create a mre efficient industry, ready t meet ramp-up prductin demand. While there may be an increase in autmated prcesses being incrprated acrss the industry, cmpanies nnetheless require a skilled wrkfrce t meet their needs, especially as many lk t expand. With many aerspace cmpanies acrss the Auvergne-Rhône-Alpes regin currently reprting difficulties finding adequate numbers f sufficiently qualified staff, there are a number f educatinal institutins acrss the regin wrking t address this skill shrtage. Séverine Durieux, directr f peratins at the Campus Aérnautique Auvergne-Rhône-Alpes, explained that her institutin is cmmitted nt nly t creating the next generatin f tp-class engineers, but als t encuraging them t fllw careers within the aerspace industry and equipping them with the necessary specialist skills: We ffer very specific aerspace diplmas, such as a prfessinal baccaulauréat fcused n the aerspace industry, in rder t encurage ur students t fllw careers in aerspace as ppsed t ther industries such as the autmtive industry, which is an equally attractive industry fr yung, qualified talent. Karim Chibane, transfer technlgy directr at ESISAR Grenble INP, explained that students studying at his institutin are ready t meet the demands f wrking in the aerspace industry immediately upn graduatin, stressing the invaluable influence f the wrk experience placements they undertake with industry partners: We have already bridged the gap between the high level f theretical knwledge that students have after graduatin and the industrial experience that they need t acquire t succeed and excel in the wrkplace. With Auvergne-Rhône-Alpes basting a strng cllectin f cmpanies acrss the entire aerspace value chain, a wealth f research facilities, a lcal gvernment cmmitted t the advancement f the industry and a cmmitment t creating the skilled wrkfrce the industry s desperately needs t meet increasing demand, it will nt be lng befre the regin is knwn as France s secnd Aerspace Valley. 9 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

10 INTERVIEW Glbal Business Reprts 10 Annabel André- Laurent Vice President f Enterprise and Ecnmic Develpment THE REGION AUVERGNE- RHÔNE-ALPES What makes the regin attractive fr internatinal investrs in aerspace? The aernautics sectr has a strng presence in Auvergne-Rhône-Alpes with nearly 700 cmpanies, including 350 specialist cmpanies (equipment manufacturers and suppliers) bringing tgether nearly 30,000 direct jbs and representing 3.3 billin in sales. Auvergne-Rhône-Alpes is the secnd regin f France and the seventh Eurpean regin fr ecnmic grwth and develpment. It cntains 600,000 cmpanies, f which 98% are small and medium-sized businesses backed by a few majr internatinal grups including Michelin, SEB, Cnstellium, Aubert and Duval, Safran, Salmn, Nestlé, Sanfi Pasteur, Limagrain etc. Hw des the gvernment supprt SMEs in their develpment? The Regin has established an ambitius plicy t bst transfrmatins related t the industry f the future. In this cntext, it supprts SMEs and ESI s (Intermediate Sized Enterprises), including the reginal aernautics sectr, with innvative technlgical develpment and with their rganizatinal changes related t additive manufacturing (3D printing), rbtics and intelligent prductin lines, as well as financial engineering fr prjects. The Regin als supprts the investment f industrial cmpanies in the frm f a subsidy fr material investments and fr prjects such as the creatin f new sites r majr challenges f mdernizing prductin tls. The Regin subsidizes nearly 1 millin f the "industrial perfrmance phase 2" prgram prpsed by GIFAS after subsidizing phase 1. This prgram benefits abut 100 SMEs which, rganized in clusters arund a client, are trained t achieve the bjectives f industrial excellence and therefre better meet the needs f the subcntracting chain. What is the gvernment s strategy fr facilitating the internatinalizatin f businesses in the regin t access glbal exprt markets? The Regin finances the Aerspace Cluster PDI by up t 50,000 in 2018, which ffers several internatinal missins per year t member cmpanies, such as the Aerspace & Defense meeting in Seville, Missin MRO Malaysia-Singapre, Passprt Nrth America (cmmercial actins, ADDS Seattle Cnventin) and thers. Hw is the gvernment supprting educatinal institutins within Auvergne- Rhône-Alpes, and wrking t ensure that there is a sufficient level f qualified talent t service the industry in the regin? Industry is ne f ur main ecnmic activities in ur Regin. Different departments, such as Ain, Haute-Savie and Isère have develped a real activity in this sectr. In rder t supprt industries in ur Regin, Auvergne-Rhône-Alpes Regin has decided t fcus its training ffer n «hard t fill» jbs. In this cntext, the l- cal gvernment has decided t supprt the industry thrugh apprenticeships and nging vcatinal training. On the base f this plicy, Auvergne- Rhône-Alpes can cntinue t develp its industry thanks t qualified prfessinals. Which internatinal regins d yu see as mst cmpetitive with Auvergne- Rhône-Alpes, and what differentiates the regin frm these cmpetitrs? The presence f a rich technlgical and industrial landscape within the Auvergne- Rhône-Alpes Regin enables us t cmpete as a glbal player and this is a hallmark which differentiates us frm ther French Regins. We have a unique capacity f reginal industry manufacturers t supply all aernautical materials and structural cmpnents. Als, beynd the basic sub-cntractr / end custmer relatinship, many f these industrialists enter c-cntracting agreements with their end custmers in rder t actively participate in the design and technlgical develpment f the end prduct. This cntributes t cnslidating and sustaining their cmmercial relatinships. The Regin is well knwn fr its very brad skills in embedded systems, including electrical cntrl. Fr example Dassault and LORD FLY BY WARE fr flight cntrls. The Regin als has substantial aernautical maintenance skills and knwhw. We cnstantly endeavur t spur the grwth and develpment f ur industrial cmpanies and enable these industries t frge strnger ties with their end custmers, be they lcal r freign. We enable industries t prepare fr the future thrugh innvatin and n-ging technlgical upgrading. We als raise awareness amngst industrialists f the need t invest in machines which reduce the envirnmental impact and we can financially participate in their purchase when such machines g beynd cmpliance requirements. What final message wuld yu like t cmmunicate? Cme and discver the wealth f ur Regin and enjy ur unique gegraphical psitin, quality f life, excellent infrastructure and ur industrial pwer. The Auvergne-Rhône-Alpes Regin is there t help crpratins with a range f ffers and resurces t supprt varius initiatives and create strng synergies n ur territry. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

11 Glbal Business Reprts INTERVIEW Francis Bergez President AUVERGNE-RHÔNE-ALPES AEROSPACE CLUSTER Please intrduce the Cluster and its rle within the aerspace fr ur internatinal readers. Aerspace Cluster is the nn-prfit rganizatin gathering the aerspace players f ur regin, Auvergne-Rhône-Alpes. It plays an active rle with its prgrams supprting cmpanies t meet high perfrmance levels, t develp innvative prjects, t address internatinal markets, but als branding the reginal aerspace knw-hws at internatinal events. Furthermre, the Cluster is a gateway fr internatinal aerspace glbal players t discver and identify new innvative and high perfrmance slutins develped by the reginal players. France is increasing its aerspace and defence activity glbally, and many members in the Auvergne-Rhône-Alpes are lking abrad fr grwth. Hw des the Cluster supprt its members n their internatinalizatin strategies? Many amng ur 200 members realize direct internatinal sales, mainly in Eurpe Nrth America, Asia and the Middle East. T help them t grab new pprtunities the cluster has been develping an annual internatinal develpment prgram fr the past 10 years. Supprted by reginal funding, it allws cmpanies t attend internatinal events such as business cnventins and trade fairs, t take part in trade missins and t meet internatinal decisinmakers. The Cluster is als the place where cmpanies share can share feedback and best practices, learn abut internatinal pprtunities, and discuss cmmn strategy and glbal ffers. In 2017, we rganized the participatin f 95 cmpanies t 11 missins, f 184 participants t seven wrkshps, in additin t ur participatin at the Paris Air Shw where mre than 150 reginal players were exhibiting. Hw des the Cluster facilitate research and develpment prjects fr its members? We develp a supprt plicy t allw members t share ideas, identify trends, build partnerships, select funding pprtunities and address it successfully. We manage t bring t maturity frm 15 t 25 prjects each year, which then becme candidates fr Eurpean, natinal r reginal funding. Mrever with ur Aerspace Techdays initiative we ffer a unique platfrm t valrize innvatins, prducts and services t internatinal decisin-makers. Fr the third editin in June 2018, we will be pleased t present mre than 30 new prjects lead by reginal cmpanies and their partners. Finding qualified talent can be a challenge fr niche cmpanies, what develpments in the regin are supprting this agenda? This year the reginal aerspace industry needs t recruit mre than 1,500 peple. It is an everyday challenge we face with strength and determinatin. We act by launching different initiatives t encurage training and recruitment. We encurage yung peple we meet n frums t gain an interest t the industrial careers and aernautics. We assist cmpanies t recruit by taking part in jb dating within the regin. We can als train jbless peple accrding t cmpanies needs. As the ramp up sets in, cmpanies acrss the value chain feel pressure t ptimize peratins in a cst-effective manner, hw des the Cluster help members remain cmpetitive? The aerspace supply-chain is at a turning pint, engaged in a deep transfrmatin where cnslidatin, increased prductin rates, digitalizatin, and new technlgies must be seen as pprtunities. Our rle is t bring the right level f infrmatin and analysis t allw everyne t make the right strategic decisins, t realize the right investments, t develp the mst relevant prjects and bring mre added value and satisfactin t custmers. The regin is hme t ver 350 cmpanies wrking in the sectr. What makes the regin s attractive fr new investrs? In Auvergne-Rhône-Alpes we ffer a unique aerspace technlgies pedestal fr all glbal players. Recent success and cntracts signed by reginal cmpanies with prestigius custmers such as Airbus, Being, Gulfstream and Safran demnstrate that we are attractive and cmpetitive. We need nw t prmte ur ffering and capabilities glbally. D yu have a final message fr yur members? Auvergne-Rhône-Alpes has incredible assets t meet aerspace s current and future challenges. Its cmpetencies and innvatin capability are evident nt nly in the fields f materials and structures, embedded systems, maintenance, in digital technlgies, but als in the quality and visin f wmen and men wh run the cmpanies. We are a regin fully mbilized t supprt the develpment f its aerspace industry, and tgether we have the ability t tackle this very exciting perid and succeed. 11 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

12 INTERVIEW Glbal Business Reprts 12 Cécilia Tejedr Managing directr AUVERGNE-RHÔNE-ALPES ENTREPRISES AGENCY The Auvergne-Rhône-Alpes Enterprises Agency launched May Can we begin with an intrductin and explanatin f why it was established? The agency Auvergne-Rhône-Alpes Entreprises was funded in respnse t a change in French law which mandated that French departments culd n lnger directly fster the develpment f SMEs in their territry, and that pwer was instead transferred t lcal gvernments. Many French departments had, ver the previus years, develped small agencies t fster the develpment f their businesses, which became redundant when this law was passed. The president f the Auvergne- Rhône-Alpes regin, Laurent Wauquiez, did nt want all the expertise and value f these agencies t be lst, s he decided t create a large reginal agency t take n the ex-lcal agencies as its subsidiaries. Auvergne-Rhône-Alpes Entreprises is a legal merger f 15 such structures that had previusly been managed n a departmental level. The agency was created at arund the same time as the merger between the regins f Auvergne and Rhône-Alpes, and since its funding n the 18th May 2017, has served the whle jint regin. The agency is run by a bard f directrs and a supervisry bard. The supervisry bard is cmpsed f 56 bard members, half f whm are elected pliticians, and half f whm are representatives frm cmpanies, assciatins, universities and research institutins, and it is led by tw c-presidents, ne f whm is Laurent Wauquiez, the president f the Auvergne- Rhône-Alpes regin, and the ther wh is Jean-Dminique Senard, the president f Michelin. What are the specific aims f Auvergne- Rhône-Alpes Entreprises? The Auvergne-Rhône-Alpes regin is very dynamic: it has a GDP f 241 billin, which is 12% f the GDP f France, and we anticipate cntinued grwth in the cming years. We want t prepare cmpanies in the regin t cntribute t and take advantage f this grwth, s we are wrking t simplify the landscape fr SMEs and t gather tgether all f the strengths f the new regin f Auvergne-Rhône-Alpes in rder t fster the crss-fertilizatin f cmpanies. We are identifying cmpanies with high grwth ptential, and ffering them supprt in several ways, whether it be with HR and training, financing, investment, strategizing innvatin prjects, r bsting internatinalizatin. What specific assistance d yu ffer aerspace cmpanies? We initiate a lt f business-t-business cntact fr cmpanies in the aerspace sectr. We are cmmitted t helping aerspace cmpanies that are lking t internatinalize; fr example. We attend aernautical business shws and set up meetings with internatinal cmpanies wh culd pten- tially be interested in cming t wrk in France, and we encurage them t cme t Auvergne-Rhône-Alpes by shwcasing the strengths f cmpanies in the regin. The president f the regin, Laurent Wauquiez, als extensively travels t encurage internatinal investment. He recgnizes that attracting internatinal business is a lngterm gal and s we are wrking tgether t launch a tender t develp a netwrk f cuntries that are a high-pririty fr internatinalizatin, such as the US, Canada, China and Germany. We will ffer supprt with the lgistics f cmpanies frm these cuntries setting up internatinal business in the regin, such as investing in rganizing business visits t receive internatinal cmpanies t meet lcal cmpanies. We will als be investing in market intelligence research, and preparing a detailed catalg f the key sectrs here in ur regin that we will display n ur website and lcal scial netwrks and distributin channels. What specific supprt is available fr SMEs and start-ups? There are many ways but I wuld like t dwell n ne in particular regarding ur ability t facilitate their access t Eurpean grants and funding schemes, such as Eurzne 2020 and Instrument Expertise. It is difficult fr SMEs t access these schemes alne as they ften d nt have sufficient resurces t dedicate t lengthy and cmplicated applicatin prcedures, but as a result f s many agencies merging tgether, Auvergne-Rhône-Alpes Entreprises has a wealth f experience in cmpleting successful applicatins and is perfectly placed t help cmpanies acrss the entire regin. This is ne f ur gals and increasing the number f SMEs benefiting frm Eurpean funding is ne f ur Key Perfrmance Indicatrs. D yu have a final message fr the readers f ur publicatin? Auvergne-Rhône-Alpes Entreprises is here t gather the strengths f the regin because we are strnger tgether. We lk frward t nurturing the grwth f cmpanies in the whle regin int the future thanks t ur range f expertise spread acrss the varius territries. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

13 Glbal Business Reprts SURVEY INFORMATION ABOUT YOUR COMPANY INNOVATION 1. Please indicate the type f cmpany yu represent within the aerspace industry 2. The main sectr in which yu perate 1. The access t funding fr research and develpment is easy PME ETI Grande Entreprise Start-up Institutin Ingénierie (Engineering) Cnceptin de systèmes (System design) Cnseptin & Fabricatin (Design and build) Fabricatin (Build t print) Services Recherche et Frmatin Institutin Very easy Easy Neither easey nr difficult Difficult Very difficult Des yur cmpany serve the internatinal market? 4. If yes, what ther markets des yur cmpany serve? 2. The research tax credit system effectively supprts R&D and the recruitment f qualified talent Yes N Eurpe Asia Nrth America Suth America Middle East Africa Strngly agree Agree Neither agree nr disagree Disagree Strngly disagree Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

14 EDITORIAL Glbal Business Reprts The Research Tax Credit Scheme: Spurring n Innvatin Surce: Chambre de Cmmerce et d Industrie Auvergne-Rhône-Alpe 2 nd mst ppulus regin in France after Île-de-France with a ppulatin f 7.8 millin (12% f the ppulatin f France) There are 300,000 students in the regin 14 France s cntinuing strength as a hub fr innvatin is encuraged by the French gvernment s generus Research Tax Credit Scheme, which cvers 30% f all R&D expenses up t 100 millin, and 5% f expenses ver 100 millin. The scheme is available fr cmpanies f all sizes perating in France, acrss all sectrs, and aerspace cmpanies within the Auvergne- Rhône-Alpes regin are taking particular advantage f the scheme t fund their research. Karim Chibane, directr at research and educatinal institute Esisar Grenble INP, explained hw the Research Tax Credit Scheme has enabled strnger links between his institute and aerspace cmpanies within the regin: While participating cmpanies benefit frm the prgram by having access t ur research resurces and talent, they als receive significant financial benefits frm partnering with us as a result f gvernment incentives such as the research tax credit system, which awards tax discunts t cmpanies that cllabrate with academic structures fr research. The aerspace sectr f the regin is investing heavily in research spending supprted by the Research Tax Credit Scheme. "Last year, ur industry research prjects brught in revenue f 15.4 millin, with 25% cming frm the aernautics sectr, said Manuel Cllet and Régis Dufur, directrs at research cluster Lyn, which is hme t ver 1,800 researchers and cnducts partnership research fr cmpanies in the regin. Cmpanies at all levels f the value chain are nt nly benefiting frm this funding individually, but als finding that it enables greater cllabratin between leading cmpanies and SMEs. Christian Bardt, VP at Thales Helicpter Avinics, said: We take advantage f the Research Tax Credit Scheme, and wrk with SMEs and institutins t access funds in France and Eurpe which alne may be a challenge fr them t btain. In Valence, we are taking advantage f the technlgical advancements t cdesign with the agile SMEs f the regin. SMEs in particular have fund the scheme prfitable and far easier t access than ther surces f funding, as explained by David Perret, general manager at Eldec: "We have benefited hugely frm the French Research Tax Credit Scheme; it grants us a tax discunt f arund half a millin eurs a year, and we have between three and The mst industrialized regin in France, with ver 500,000 peple in industrial jbs There are 40,000 researchers in the regin (which makes it the secnd regin in France fr research activity) 2 nd mst dynamic regin in France in terms f imprt and exprt activity (ver 12% f France s exprts cme frm this regin) AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

15 Glbal Business Reprts EDITORIAL Image curtesy f Teledyne e2v five students wrking with us at a time. We have fund it difficult t access Eurpean funding schemes as it is necessary t be in partnership with leading cmpanies and research bdies t apply. A wrkfrce fr the future Beynd making intensive research accessible t SMEs that wuld therwise find it cst-prhibitive, the Research Tax Credit Scheme als supprts the educatin and training f the skilled wrkfrce the regin s desperately requires. Cmpanies acrss the regin reprt a struggle t attract and retain sufficiently qualified staff in high enugh numbers, with SMEs facing particular challenges. Big cmpanies will always be attractive t graduates, but it is very difficult fr SMEs t recruit sufficiently qualified engineers tday because the entire Eurpean market needs arund twice as many engineers than we currently have, explained Chibane. The Auvergne-Rhône-Alpes regin faces a further particular challenge in terms f the relatively rural and remte lcatins f many f its hubs. Patrick Besnier, president at DBC, explained: Finding enugh qualified staff is a majr issue fr us. We are striving every day t find peple t wrk with us and, althugh we are ffering very high salaries, it is a struggle. The industry is nt attractive enugh fr yung peple, and particularly the industrial lcatins that many aerspace businesses are based in are unattractive t yung peple wh prefer t be based in cities. With many cmpanies in the regin reprting a desire t take n mre staff in the cming years as they expand their peratins in the regin, the pressure is n t create a wrkfrce t meet this demand. Chibane is cnfident that his institutin, which runs wrk experience and industry placement schemes with its partner institutins, is ensuring nt nly that its students develp the necessary skills t meet industry needs, but als that they are prepared t take n jbs specifically within the regin. Our partner cmpanies als benefit in the lnger term because in building relatinships with yung engineering talent, they are ensuring that they will nt be affected by the shrtage f qualified talent that s many ther cmpanies are facing, he explained. 15 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

16 INSIGHTS Glbal Business Reprts The search fr talent: bridging the gap between educatin and industry We recgnize that different aspects f the industry require differently trained and qualified human resurces; fr example, designing the subsystems f an aircraft requires a very different skill set t wrking n a cmpleted aircraft. Further t this challenge f educating a sufficiently diverse wrkfrce is preparing students t enter an industry that is cnstantly evlving and changing. We are anticipating the full intrductin f Industry 4.0 in the aerspace industry, the develpment f mre advanced machinery, and an increase in additive manufacturing techniques. Our students are expsed t all f these advancements and are prepared fr these wrk envirnments. - Séverine Durieux, Directr f Operatins, Campus Aernautique Auvergne-Rhône-Alpes 16 Althugh Tuluse is traditinally knwn as the centre f space develpment in France, a large prprtin f the inner elements f satellites are develped here in Grenble, and we have a wealth f knwledge and experience acrss the entire space develpment and instrumentatin services value chain. We are nt in cmpetitin with any ther Eurpean aerspace centers but wrk in cllabratin and prvide cmplementary services, and we will cntinue t d s. - Mathieu Barthélèmy, Head f Aernautics, Centre Spatial Universitaire de Grenble "Frm speaking myself with ther industry managers, we seek a link between lcal gvernment and industry that prepares candidates t wrk at a level we require. All candidates that we recruit require training frm ur side and therefre a link with gvernment equipping candidates with the skills required t wrk in the industry will g a lng way in grwing the aerspace industry in this regin." - Benit Nel, General Manager, Timet Savie Big cmpanies will always be attractive t graduates, but it is very difficult fr SMEs t recruit sufficiently qualified engineers tday because the entire Eurpean market needs arund twice as many engineers as we currently have. - Karim Chibane, Technical Directr, Esisar Grenble INP AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

17 Glbal Business Reprts INTERVIEW MC Manuel Cllet Chairman LYON Can we have a brief verview f the institute and its recent activities? We were funded in 2006, and in 2007 became a member f the Assciatin Instituts Carnt, which is a natinal multi-disciplinary research netwrk. We currently have ver 1,800 researchers cnducting partnership research fr cmpanies, prmting innvatin, and develping technlgy transfers, mainly in the aerspace industry. Each Carnt Institute is recgnized fr its high scientific standard and cmmits t develping R&D activities t prmte industry innvatin, building n ur strng relatinships with lcal industry leaders, Safran and Airbus, and als a number f SMEs. We ffer different services t larger cmpanies than SME s t cater t their different budgets. Larger cmpanies tend t use us as a mre general research and develpment wing, whereas smaller cmpanies will apprach us with smaller, mre specific and targeted prjects. What industry-wide trends are driving yur research? The reductin f nitrgen xide emissins is the principal driving factr. T achieve this, aerspace cmpanies are primarily lking t develp and use mre lightweight materials, as lighter aircraft translates int less verall fuel cnsumptin. The mve twards electric engines is als a majr driving factr. A particular example f engine develpment and innvatin is with the ultra-high-bypass (UHB) turbfan engine. This is when yu have a very large fan cmpared t the size f the engine, which ffers high speed and perfrmance. We are lking at hw t develp this kind f engine s that is has the maximum fuel efficiency. Smart materials and smart machinery will als be a big fcus. The internet f things, in terms f aernautics, remains a brad field t be explred and develped. Whereas in the past we wuld build patches t be cnnected t existing systems, nw we need t integrate thse systems directly int the materials we are using. We are wrking twards a methd where the intelligence is all built directly int the systems themselves. Are there any examples f gvernment funding that has supprted yur research, r made it mre widely accessible? We are invlved with a six-year gvernment funded prgram called AIRCAR, which was launched in AIRCAR aims t use R&D innvatin t strengthen the cmpetitiveness f the SME market. The prgram is led by ONERA, the aernautics, space and defense research lab, and there are seven ther Carnt institutes invlved in this prgram, and we are mapping the skills f the scientific and technlgical platfrms available and ffering them t SME s. We want t prpse slutins t the prblems that SME s have that are nt always strictly research-based prblems. We respnd t any scientific and technlgical needs that the cmpanies might have. We are als invlved with the PHARE prject, which is wrking t develp rtating machine platfrms fr the cntrl f envirnmental risks. This prject received 3 millin in 2016 frm the French Natinal Research Agency (the ANR), and is als supprted by Safran, wh we have a very strng relatinship with. Multidisciplinary prjects like this bring tgether different leading labratries and benefit frm funding frm multiple surces. D yu have a final message fr ur readers in the aerspace cmmunity? Lyn has a high level f scientific and technlgical skills which are directly applicable t the aernautic sectr. We are here t lend yu ur creativity and scientific excellence t strengthen yur capacity fr innvatin. T larger cmpanies: we want t cprduce knwledge in rder t btain large-scale innvatin. We will listen t yu and shape ur research arund yur needs. T smaller cmpanies: ur knwledge, experience and expertise is als accessible t yu. We are here t respnd t individual technlgical needs, t cnsult n yur prblems, and t create innvative slutins. We have the labratries and we have the skilled engineers wh are ready t wrk. 17 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

18 GBR Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Image: Asymtek, curtesy f Teledyne e2v

19 Electrnic Systems The internet f things and Industry 4.0 are creating business pprtunities fr us because the level f hyper-cnnectin between prcesses that is becming increasingly cmmn requires advanced electrnics t relay infrmatin within cmputers and ther netwrks. It is a very interesting time fr us, and we are wrking n the develpments in a number f ways, including safety issues, which we are very skilled in. - M. Xavier Benit, VP Technique, Innvatin, Quality, Centum Adene

20 EDITORIAL Glbal Business Reprts Electrnics: The current trends The bjective fr aerspace cmpanies is always t cnsume less fuel, which typically is achieved by making the aircraft lighter. We are the mtr cmpany f chice in this regard as the industry leader in creating mtrs that are bth highly pwerful and very small. Develping lighter mtrs are imperative in reducing the weight f aircraft; fr example, a cmmercial aircraft culd have tw r three mtrs per business/1 st class seat. With arund 100 business seats per aircraft, a reductin f even 100 grams per mtr accumulates t a large weight saving ver the whle aircraft. - Michael Niemaz, Key Accunt Manager Aerspace, Maxn MDP Mtr France 20 The glbal trend f the increased use f electrnic cmpnents within aircraft manufacturing. is shwing n signs f slwing dwn, with the glbal market f electric cmpnents fr aircraft applicatins expected t reach US$10.9 billin in 2021, up frm US$7.7billin in 2016 (Markets and Markets). Electrnic cmpnents are predicted t be the highest grwth sectr within the c- class aerspace parts market between 2018 and 2023 (Stratview Research) With aircraft prductin n the rise glbally, and arund 20% f the manufacturing cst f a new cmmercial aircraft generated by the electrnics within it, there is a huge ptential market and cmpanies within the Auvergne-Rhône-Alpes regin are clamring t gain market share. The regin has the ptential t excel in the aircraft electrnics market because f its easy access t research and develpment facilities and its wealth and breadth f cmpanies experienced in the electrnic cmpnent field. This increase in electric cmpnents has influenced the business strategies f cmpanies acrss the value chain in the regin. Fr cmpanies lking t develp mre advanced electrical cmpnents fr aerspace applicatins, the infrastructure is there t supprt them in Auvergne-Rhône-Alpes. The internet f things and Industry 4.0 are creating business pprtunities fr us because the level f hyper-cnnectin between prcesses that is becming increasingly cmmn requires advanced electrnics t relay infrmatin within cmputers and ther netwrks, explained Xavier Benit, VP technique, innvatin and quality at Centum Adene. Many cmpanies with access t research and develpment facilities are earnestly turning their fcus t develping high-end slutins fr the aircraft electrnics market. The aim is t create parts that are mre technlgically advanced, capable f intelligently gathering and utilizing data, and capable f cmmunicating with ne anther - all while simultaneusly being mindful f the glden rule f aircraft manufacturing: the lighter, the better. Manuel Cllet and Régis Dufur at educatinal and research institute Lyn, said: Smart materials and smart machinery will als be a big fcus [in the near future]. The internet f things, in terms f aernautics, remains a brad field t be explred and develped. Whereas in the past we wuld build patches t be cnnected t existing systems, nw we need t integrate thse systems directly int the materials we are using and we are wrking twards a methd where the intelligence is all built directly int the systems themselves. Cmpanies that are already experienced in the electrnic aircraft cmpnent space are fcusing n the incremental innvatin f their existing prduct lines in rder t remain ahead f the curve. Alain Lacrix, sales directr at Meggitt Sensrex, said: We eventually want t replace all f ur wn prducts with mre sphisticated prducts, mstly using MEMS sensrs inside ur systems. In this way, we can incrprate a smart sensing apprach, allwing the end user t detect far mre precise infrmatin with the sensrs. The cmpany s apprach is mindful f the barriers that currently exist when incrprating electrnics int aircraft manufacturing, and is wrking t vercme them: We will als be creating sensrs that can withstand far higher temperatures, f up t 400 degrees celsius, which will pen up pssibilities fr mre applicatins. Specific niches within the electrnic aircraft parts market are particularly well-catered fr within the Auvergne-Rhône-Alpes aerspace cluster, such as electrnic actuatrs, which is ne f the highest grwth sectrs within electrnic cmpnents, with the cmpund annual grwth rate fr the glb- AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

21 Glbal Business Reprts EDITORIAL Image curtesy f Thales al aircraft actuatr market predicted t be 9.5% between 2018 and 2022 (Markets and Markets). The demand fr actuatrs is nt nly grwing but evlving in tandem with wider trends in the aerspace industry, and here t mre technlgically advanced slutins are increasingly required. Michael Niemaz, key accunt manager aerspace at MDP Maxn Mtrs France, said: The shift twards electric aircraft has necessitated the replacement f hydraulic equipment with a mixture f hydraulic and electric, r fully electric actuatrs. Old prblems: new slutins Embedded systems designed t slve sme f air travel s ldest prblems are being develped in the Auvergne-Rhône- Alpes regin, as demnstrated by Frank Mreau, directr f Michelin Aircraft Tires, speaking abut the PresSense prject that Michelin and Safran unveiled at the Le Burget Paris Air Shw last year, which has develped smart sensrs fr air craft wheels. The prject was cnceived in respnse t a prblem that has always faced the cmmercial aircraft industry. Aircraft tires increase in temperature during flight, but the tire pressure can nly be accurately tested and measured when the tire is cld, and there are very strict rules n hw lng a tire must be left fr after psitining and stpping at the gate. Typically, fr cmmercial aircraft, it takes arund three hurs after stpping and psitining at the gate fr the tire t cl t the required temperatures fr pressure testing. We decided t develp a methd f measuring temperature and pressure simultaneusly, s that as sn as an aircraft lands we can determine the tire pressure, and then use algrithms t calculate exactly what the tire pressure will be when the wheel has cled dwn. Electric sensrs are embedded within the tire itself and will be able t measure far mre data than previus methds f tire pressure testing, he said. New slutins: future challenges? While the increase in demand fr electrical parts, smart technlgy and embedded systems prvides pprtunities fr cmpanies t develp mre innvative slutins, it als brings with it an entirely new set f security risks fr the future f the industry. Karim Chibane, directr f technlgy transfer at ESISAR Grenble INP, stresses that his institutin has identified and is wrking t tackle these risks: Embedded systems and the internet f things bring s many advantages in terms f manufacturing and peratinal efficiency, but they als present an entirely new type f hacking and security risk, bth fr individual cmpanies and gvernment bdies. We anticipate a shrtage f qualified talent in this area in the cming years as there are currently very few electrical engineers specialized in security, s we are investing in this area f training and technlgy transfer in rder t fill the gap. With cmpanies in Auvergne-Rhône-Alpes at all stages f the value chain, frm industry leaders such as Michelin, wrking in partnership with Safran, t mre niche SMEs, develping the electrnic cmpnents f tmrrw s aircrafts, it is safe t say that the regin has earned its reputatin as a hub fr innvatin. The regin still faces challenges: it remains t be answered whether the qualified talent in the regin will entirely meet demand, especially in prmising high-technlgy fields such as electrnics. Similarly, nly time will tell whether the high cst f prductin in the regin and the small vlumes f niche prducts being prduced will meet the csteffective demand frm the US and Asia. 21 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

22 INTERVIEW Glbal Business Reprts 22 Christian Bardt VP THALES HELICOPTER AVIONICS Thales has ver 2,300 emplyees in the Auvergne-Rhône-Alpes regin. Culd yu intrduce the rle the Thales Valence sites and hw it fits int the glbal cmpany structure? Frm the Valence ffice, tgether with ur ffices in UK, US and Australia, we serve the wrldwide civilian and military helicpter market, plus we have here ur Navigatin centre f excellence. We see Valence as an innvatin hub fr avinics, alng with ur hubs in Brdeaux and Mntreal, and the hub we are currently lking t develp in Asia. Hw has Thales Helicpter Avinics respnded t the helicpter industry pilts demands t bring integrated slutins t the market? The systems within ur new generatin cnnected cckpit bring advanced technlgies t simplify and save task wrklad fr the pilt s they can fcus n the missin in hand. We wrked with pilts in develping the TpOwl and Scrpin Helmet Munted Sight Display fr rtr wing and fixed wing aircraft. We use ur center f excellence in aircraft navigatin and flight management systems in Valence t lk at hw the helicpter flies, hw we can add MEMS sensrs and enhance GNSS systems r develp advanced algrithms t imprve systems fr bth the civil and military custmers. Hw des Thales Helicpter Avinics cllabrate with lcal SMEs and institutins n R&D initiatives? We take advantage f the Research Tax Credit scheme, and wrk with SMEs and institutins t access funds in France and Eurpe, which alne may be a challenge fr them t btain. In Valence, we are taking advantage f the technlgical advancements t c-design with the agile SMEs f the regin. Fr example, we have Prject ALMEE develping aluminum additin layer manufacturing fr electrnic equipment. In additin, we are wrking n Prject Next4MEMS t develp MEMS accelermeter and gyrmeter sensrs in cllabratin with Asygn, an electrnic expert in integrated circuits fr inert sensrs and Trnics, the French and glbal leader in MEMs fundry and high-perfrmance MEMs inertial sensrs. Bernard Lucereau President SECAERO Culd yu explain Secaer s structure and cmpany expertise in the ptrnic and maintenance space? Aertech Grup was recently renamed Secaer, after its acquisitin at the end f 2017 by the leading French grup Secamic. Fr ver 30 years, Secamic has prvided spare parts in ver 22 cuntries, and it is ne f the leading French cmpanies exprting military aircraft and helicpter spare parts and prviding glbal lgistic and peratinal supprt. Secamic als prvides glbal aircraft maintenance services, and wrks mainly in the military and helicpter sectrs, prviding purchase and resale, MRO, and technical supprt services. Secaer will nw take advantage f Secamic s glbal netwrk and cmplement their capabilities with ur maintenance and mdernizatin expertise in helicpters. Secaer is als a market leader in night visin technlgy, which was develped internally. Hw des Secaer ensure that its supply chain is a smth and sustainable prcess? We usually wrk very clsely with ur suppliers thrughut the OEM prcess and we try t capitalize n their experience in the industry. We need t plan very far in advance t ensure that we anticipate what the industry s future requirements may be. The supply chain prcess differs drastically, depending n which prduct is needed. All in all, we have a strng team that has cntrl ver the entire supply prcess. What are yur future grwth prspects and ptential challenges? Our majr grwth prspects in the shrt t medium term will be Suth American and African markets fr maintenance and mdernizatin services. We will als expand ur capabilities in the fixed wings market. Secaer als has the ability t grw with its existing clients and custmers with nging maintenance, technical assistance and ffering them additinal cmplementary prducts. It is essential that Secaer fcuses n being practive with its prduct fferings and maintenance instead f being reactive. This culd als be seen as Secaer trying t create a mre integrated prduct ffering and slutin fr clients. Other grwth prspects wuld be t grw ur partnerships with and thrugh cmplementary businesses partners. Prduct develpment, structure and mdernizatin f ur fferings and capabilities is ur path frward. Our gal is t be a leader in MRO activity by 2020, and the grwth f ur grup will therefre cme thrugh new acquisitins. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

23 Glbal Business Reprts INTERVIEW Cedric Errard VP Sales and Marketing CROUZET AEROSPACE Can we begin with an intrductin t Innvista sensrs and the Cruzet brand? Cruzet designs, manufactures and supplies cmpnents such as switches, psitin sensrs, actuatrs and electrical prtectin and cckpit cntrl slutins. We serve missin critical applicatins where reliability and quality are paramunt t ur custmers. Aerspace is ur single largest market, accunting fr a third f the cmpany s revenue. We design specifically t meet ur custmers applicatin needs, and we have a deep understanding f the envirnments that they are wrking in. As a result f this expertise, 80% f ur revenue is generated by adaptated and custmized prducts. Althugh we are a medium sized cmpany, we remain a Tier One supplier t all f the majr OEMs; we serve Airbus, Being, Bmbardier, Embraer, and Airbus Helicpters. We are a leader in all f the prduct lines that we supply, with an annual revenue f 142 millin. Leading OEMs are putting increasing pressure n their suppliers t bring their prices dwn - hw are yu respnding t this? At Cruzet we fcus n innvatin t cntinuusly deliver better value t ur custmers with slutins that lwer the ttal cst f wnership. Larger cmpanies such as Airbus and Being are pushing fr a cnslidatin f the supply chain in rder t increase efficiency and decrease prices. As a medium size cmpany are yu lking t acquire ther cmpanies t add t yur prtfli? As Cruzet has an efficient and high-perfrming supply chain it is ready t accept these challenges, and act as a platfrm fr ther cmpanies t participate in this jurney. One f the key fcuses fr Cruzet is t lk fr acquisitins r partnerships with ther cmpanies, in a strategic and sustainable manner and s we have taken n an M&A directr t help us achieve this gal. 23 Yves Mahe Prduct Develpment Manager SKF AEROSPACE Culd yu intrduce ur readers t SKF Aerspace s glbal ffering and its significance in the Auvergne-Rhône-Alpes regin? SKF Aerspace represents 5% f the cmpany s business with 3,000 emplyees and 12 manufacturing sites: tw in France, seven in the USA, tw in UK and ne in Italy. Fr research and develpment, we have tw centers; in Eurpe in Valence, Rhône- Alpes and ne in the USA in Jamestwn, New-Yrk. In Valence Innvatin Centre, we emply 50 peple. In bth Eurpe and Nrth America, we prvide aer-engine bearing slutins, whereas in Eurpe we have a strng presence als in airframe aerstructure bearings and cmpsite prducts. Black Design will launch end f 2018, replacing the steel prcesses with a 2D material made frm carbn fiber and resins. Hw des SKF cntinue respnding t market demand fr increased cmpsite material applicatin? SKF Black Design is a different design apprach t wrk with cmpsites and explre their ptential fr functin integratins acrss all interfaces where SKF prducts feature. We are lking t make prducts lighter t reduce fuel cst and cnsumptin, as well as reduce the energy lst, especially with rlling bearings due t issues f frictin r heating. The end f prduct life is a key industry tpic, n whether it will be pssible t recycle r reuse the grwing number f cmpsite materials, even thugh aerspace is nt a high-vlume user cmpared t the autmtive industry. Thermplastic seems easiest t recycle; researchers are als wrking t separate resins and carbn fibers at the end f the life f the prduct. Hw des SKF recruit a team that has the qualified expertise t bring these innvatins t the market? We have a special relatinship with the Natinal Institute f Applied Sciences Lyn (INSA) t wrk with third-year mechanical engineer students t prepare them fr wrk in the industry. Thrugh SKF s Glbal Trainee Prgram we recruit ptential new talent wh gain experience acrss different rganizatins within the cmpany ver a perid f tw years. Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

24 INTERVIEW Glbal Business Reprts 24 Niclas Chantier Marketing Manager TELEDYNE E2V AREA: LANDING SYSTEMS MAIN ACTIVITY: DESIGN AND BUILD Culd yu utline hw Teledyne e2v and specifically the Grenble site fit int the glbal cmpany strategy? Teledyne crpratin has a current revenue f US$2.6 billin, which is split amng fur segments: instrumentatin represents 35%, digital imaging 29%, aerspace and defence electrnics 25%, and engineered systems 11%. Teledyne strategy is abut bringing enabling technlgies t prfessinal grwth markets. As such, the Teledyne e2v Grenble acquisitin by Teledyne has cntributed int enlarging the crpratin prtfli f technlgies in a cmplementary manner, as well as enabling Teledyne t cntinue t increase its ftprint utside the USA in rder t be a truly glbal player. Last but nt least, Teledyne recgnizes the imprtance f mastering supply chain and manufacturing when it cmes t serving demanding prfessinal markets with the latest technlgies. As such, the manufacturing capability ut f Grenble is a perfect fit. Hw des Teledyne e2v differentiate itself in the aerspace and defence market? We are the nly semi-cnductr cmpany in Eurpe EN9100 certified fr aerspace and defence, and Sensitrn in the USA is the nly ther cmpany in the wrld als certified. The certificatin acts as a pint f differentiatin and has a psitive effect fr ur business, especially in the aircraft industry. Our market share is primarily the United States representing ver 50% f ur business frm Grenble, Eurpe cmes secnd and Asia third. Our prducts play a key rle in differentiatin as well. Our biggest line is the micrprcessrs, and we supply fr a variety f aerspace and defence electrnically cntrlled systems, including flight cmputers n the majrity f glbal aircraft and engine cntrls. Within the heart f the systems r engine cntrls, there is always an embedded cmputer with a micrprcessr that we supply t aerspace and defence standards with specific reliability requirements that the regular cmmercial manufacturers wuld nt prvide. What are the latest innvatins cming frm the Grenble prduct lines? Fr the micrprcessrs line we wrk with a majr US manufacturer, NXP, whse prducts we qualify t aerspace and defence standards, bringing added value by adjusting the level f reliability fr each prduct applicatin case by case. The Qrmin family is ur latest innvatin in cmputing mdules, integrating prcessrs with 4GB memry, which saves precius engineering hurs and risks fr ur custmers: they can fcus n engineering differentiatrs fr their custmers and ultimately significantly reduce time t market. A secnd prduct line frm Grenble is ur data cnverters that we design in huse and which perate at extreme micrwave signal frequencies. The main value fr ur custmers is that we push the digital bundary much clser t the antenna n any RF system, digitizing mre radar and telecmmunicatin systems. This business has cllected a number f wrld firsts since 22 years in data cnversin technlgy, the latest ne being an unprecedented digital t analg cnverter perating in K-band frequencies; this is knwn as the EV12DS4xx series. The Auvergne-Rhône-Alpes regin has prgrams t unite the private sectr with qualified talent at universities t meet industry needs. Hw has this impacted Teledyne s business? Signal prcessing has an academic histry here with French mathematician Jseph Furier, after whm the Grenble University f Science was riginally named. There used t be a discnnect between industry and the academic wrld but this gap has narrwed significantly in recent years lcally. We are very happy with the stream f talent cming ut f the lcal universities; they are very gd engineers wh cntribute t ur differentiatin. We can see ther regins where ur cmpetitin struggles t find that level f talent lcally cmpared t what we can d, s the prgrams are a bnus t being in the Auvergne-Rhône-Alpes regin. As a large player in the regin, hw d yu see the market structure develping in the cming years, and what are Teledyne e2v s grwth plans? We see at Cluster meetings that the primary aircraft manufacturers have high expectatins fr SMEs. They n lnger wish t deal with numerus small entities and wuld rather see talented SMEs be acquired by a larger grup, which is happening. We felt sme f that pressure urselves as a midcap when we were e2v and becming a large cap, nw part f Teledyne, has been received psitively by custmers t meet their grwing demands. Our current grwth plan is fcused n differentiatin and we may make further acquisitins when relevant t ur strategy. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

25 Glbal Business Reprts INTERVIEW André Gauthier Site Directr Rche la Mlière ZODIAC AEROSPACE Culd yu give an intrductin t Zdiac Aerspace? Zdiac Aerspace is a French grup headquartered in Paris, which this year was acquired by the Safran Grup. We have mre than 35,000 emplyees wrldwide, and design and manufacture prducts fr aircraft interirs such as cabin parts and seats, as well as aircraft systems such as fuel systems, electrical pwer distributin systems, and xygen systems. What is the cmpetitive landscape like and hw des Zdiac Aertechnics differentiate itself frm its cmpetitrs in France? The cmpetitive landscape is strng, and we differentiate urselves thrugh ur lean manufacturing techniques and ur cutting edge prduct technlgy. Have there been any key recent technlgical advancements that have imprved Zdiac Aertechnics manufacturing prcesses r prduct lines? Over the past ten years we have invested heavily in a new prduct line fr aircraft fuel tank inerting systems. We had ur first inerting systems certified earlier this year with Embraer E2. What rle des Zdiac Aertechnics expect t play in the grwth f the aerspace industry in the Auvergne-Rhône- Alpes regin? Zdiac Aertechnics grwth ver the past few years has already significantly cntributed t the grwth f the aerspace industry in the regin: five years ag we had less than 300 emplyees, and tday we have arund arund 500. We have expanded ur physical presence by building new facilities and develping ur existing premises by adding extensins and new wrkshps. This grwth has allwed us t supprt the grwth f a strng lcal supply base and t fster strng vendr relatinships. I am als a bard member f the Aerspace Cluster in Auvergne-Rhône-Alpes, and this rle allws Zdiac Aertechnics t be pen t discussins with lcal businesses, and t be able t prmte the lcal industry in a clear and transparent way. We are prud f playing a leading rle in the develpment f the lcal business envirnment, and will cntinue t d s int the future. 25 David Perret General Manager ELDEC FRANCE Can we begin with a brief intrductin t Eldec and the Crane brand? Eldec France was created in 1992 by a spinff f the Swedish grup ABB. At that time, Eldec was based in Washingtn in the US, and we were then created as Eldec France. Eldec was acquired by Crane C in Within aerspace, we ffer six slutins: landing slutins, sensing slutins, fluid slutins, cabin slutins, pwer slutins and micrwave slutins. What is the current R&D fcus at Eldec? We are currently fcusing n three main areas: develping new fuel slutins, develping new ways t reduce the weight f aircrafts, and develping ways t decrease the installatin time f ur prducts fr ur custmers. asking fr lwer and lwer prices frm suppliers, and as a result we are facing a vertical integratin f the supply chain in aerspace. Strategies are changing acrss the industry because f the fact that leading cmpanies nw prefer t develp prducts themselves by acquiring smaller cmpanies, such as in the case f Safran with the acquisitin f Zdiac. This has certainly affected us ver the years; 20 years ag we were Tier One supplier, then we became Tier Tw and nw we are Tier Three. We are nw in a situatin where we need t find the right balance. With the new strategies being develped at the mment, it is pssible that Airbus r Being will want t buy technlgy directly frm us, s perhaps in the next 10 years we will becme a Tier One supplier again. Hw has the business landscape changed in aerspace ver the past few years, and what challenges have arisen? Ten years ag, aircraft cmpanies were making very small prfit margins, whereas suppliers like us were making a much larger margins, but tday this has cmpletely reversed. Aircraft cmpanies are always Hw easy is it t access funding pprtunities fr R&D? Mst significantly, we have benefited hugely frm the French research tax credit system; it grants us a tax discunt f arund half a millin eurs a year, and we have between three and five students wrking with us at a time. Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

26 GBR Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Image curtesy f Jet Cut

27 Materials While in the shrt term, cmpsite materials are gd fr the envirnment because they enable the prductin f lighter airplanes that cnsume less fuel and emit less C02, there needs t be mre wrk dne t ensure that they are dispsed f in an envirnmentally respnsible and sustainable manner in the future. - Gilles Duqueine, President & CEO, Duqueine

28 EDITORIAL Glbal Business Reprts Thinking Outside f the Bx: What is it made f? 28 Aircraft manufacturers have been fcusing their effrts n creating lighter aircraft since the aerspace industry s very beginnings. A lighter aircraft requires less pwer, therefre cnsumes less fuel, is thus cheaper t run, and can becme a mre cmpetitive prduct t sell t end-users. Hwever, in recent years, the demand fr lighter aircraft has intensified nt fr ecnmic reasns, but because f a pressure t reduce glbal man-made carbn emissins. The directin f tday s aerspace industry is heavily influenced by Reslutin A38-18, adpted by the Internatinal Civil Aviatin Organizatin (ICAO) in Octber 2013, which utlines a shared aim f achieving carbn-neutral grwth in the sectr frm 2020 nwards. With 192 member states arund the wrld represented by the rganizatin, this gal is cmmn t all f the wrld s leading OEMs. The internatinal aerspace cmmunity s effrts t reduce carbn emissins are already enjying sme success. Technlgical advancements in aircraft design and manufacturing ver the years have, as a general rule, greatly increased fuel efficiency: aircraft prduced tday are arund 80% mre fuel efficient per passenger kilmeter travelled than thse prduced in the 1960 s (ICAO). As a result, while glbal passenger numbers may be grwing at a steady rate, emissins are nt prprtinally increasing. Passenger grwth is grwing at 5% per year, and aviatin emissins are grwing at arund 3% per year (Intergvernmental Panel n Climate Change, IPCC). The verall increase in carbn emissins, hwever, still has a nticeable effect n glbal carbn emissins, with the IPCC frecasting that the aviatin industry s share f glbal man-made CO2 emissins will increase frm arund 2% t arund 3% by 2050, if n further emissin reducing measures are made. It is clear that there is still significant prgress t be made if the ICAO s target is t be met, which presents bth pprtunities and challenges fr research-heavy aerspace clusters arund the wrld, including Auvergne-Rhône-Alpes. With n primary in the regin, but instead suppliers at all levels f the value chain, the pressure is n t develp innvative aircraft parts that will cntribute t the gal f creating lighter, mre fuel-efficient aircraft. Cmpsite materials: unrealized ptential Arguably the mst impactful trend in the aerspace industry in terms f emissin reductin has been the increase in the use f cmpsite materials in aircraft manufacturing. While aircrafts prduced in the 1990 s cntained 5-6% f cmpsite materials by weight, aircrafts prduced in 2017 cntained, n average, clse t 50% cmpsite materials by weight (Cmpsites Manufacturing Magazine). Cmpsite materials are s valued in aerspace manufacturing because f their cmbinatin f lightweight, highstrength, lw electrical cnductivity and durable prperties enables a significant reductin in the weight f aircraft. Cmpsite materials are n lnger restricted t the aircraft fuselage, and cmpanies within the Auvergne-Rhône-Alpes regin are fcusing their R&D n the applicatin f cmpsite materials in smaller aircraft parts. Yves Mahe, prduct develpment manager at SKF Aerspace, said: We are lking t make prducts lighter t reduce fuel cst and cnsumptin, as well as reduce the energy lst, especially with rlling bearings due t issues f frictin r heating. Fr us, it is a AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

29 Glbal Business Reprts EDITORIAL Image curtesy f DBC gd pprtunity t utilize ur lng-term experience with cmpsites, but engineering skill and an pen mindset are als key t get the best frm cmpsite materials if yu want them t utperfrm a cnventinal black metal design. The ptential fr cmpsite materials in aircraft ges beynd simply creating lighter replicas f aircraft parts traditinally manufactured frm metal. Gilles Duqueine, directr at Duqueine Rhône- Alpes, explained that it is pssible t manufacture several parts at nce, in such a way that they are already cnnected and d nt need t be jined tgether later by the OEMs themselves. We are fcusing n develping cmpsite slutins which are mre cmplete, s that we can replace several metallic parts with ne cmpsite part, which saves n prductin csts as well as weight within the aircraft, he said. Further research is required when using cmpsite materials fr applicatins beynd aircraft fuselages, such as within the aircraft engines r electrical systems, and cmpanies acrss the Auvergne- Rhône-Alpes regin are pineering this research: The current research fcus is develping cmpsite materials that are specifically adapted t meet the technical needs f the aerspace industry, such as thse that can be repeatedly expsed t extreme temperatures withut suffering a deteriratin in quality r perfrmance. The main difficulty we are facing is develping methds t transfrm materials that can then later be effectively manufactured in larger quantities, explained Jean-Michel Deck, VP f develpment at Cmpse. The increased use f cmpsite materials in aerspace manufacturing is significantly affecting demand fr ther prducts and services acrss the industry in Auvergne-Rhône-Alpes, as explained by Franck Picard, peratinal directr at Acnis Internatinal: Titanium is ding particularly well at the mment as it wrks well alngside cmpsite materials. The increase is significant: whereas 10 years ag, titanium represented 7% f the weight f a cmmercial aircraft, tday it represents clser t 15%, and is cntinuing t increase. Alternatives: Cmpsite materials are nt the nly ptin. Cnstellium sees ptential in the develpment f aluminum allys. The cmpany is participating in the Airbus Wing f the Future prgram, which is based in the UK and aims t explre the best materials and manufacturing and assembly techniques fr aircraft wings. We are wrking t develp a metallic wing with the same perfrmance as a cmpsite wing but at a significantly lwer cst, explained Rafael Carbnell, VP sales, aerspace and transprtatin at Cnstellium. Recycling aluminum scrap is part f Cnstellium s legacy and we have built a strng supply chain s that mst f the aluminum that has ever been created is in use r is recycled, he added. Tday s slutin, tmrrw s prblem? While cmpsite materials enable the manufacturing f lighter aircraft, Gilles Duqueine cautins against the ptential shrt-sightedness f hailing cmpsite materials as the answer t all f the aerspace industry s envirnmental sustainability needs: In the future, ur custmers will face the challenge f dispsing f ld cmpsite materials, which are nn-recyclable. While in the shrt term, cmpsite materials are gd fr the envirnment because they enable the prductin f lighter airplanes that cnsume less fuel and emit less CO2, there needs t be mre wrk dne t ensure that they are dispsed f in an envirnmentally respnsible and sustainable manner in the future. Eric Pisani, CEO at Sintex, als recgnizes this prblem and cmments that his cmpany is steering twards a mre sustainable future: "We are fcusing n thermplastic cmpsites which have the advantage f being recyclable. I believe that, even if the materials cannt be recycled within the aernautics industry, these materials culd be reused fr ther applicatins in the autmtive industry, fr example. Tday s slutins have the ptential t create their wn challenges tmrrw, but with cmpanies within the research-heavy Auvergne-Rhône-Alpes regin demnstrating an awareness f the current limitatins and future drawbacks f cmpsite materials, it seems almst certain that the regin will play a leading rle in vercming them. 29 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

30 INTERVIEW Glbal Business Reprts 30 Rafael Carbnell Vice President Sales, Aerspace and Transprtatin CONSTELLIUM Culd yu utline Cnstellium s activities in the Auvergne-Rhne-Alpes regin fr aerspace? We have tw majr facilities in Auvergne- Rhne-Alpes: the Issire plant and CTEC. The Issire plant is a large wrld-class rlling mill with nly ne ther mill with the same ranking glbally, and we prduce mstly fr aerspace but als ther industry transprtatin markets with ur team f 1,500 emplyees. Althugh Issire serves the glbal markets and we are a glbal leader, we are strngly rted in the Auvergne-Rhne-Alpes regin and many partner suppliers and custmers frm the clusters penly participate in ur success. Clse t Grenble, we have the Cnstellium Technlgy Centre (CTEC), which is ne f the wrld s leading aluminum research centres. This wrks fr all the different business sectrs f Cnstellium, including aerspace, researching acrss different metallurgy tpics and custmer applicatins. In aerspace, the research centre particularly benefits frm the hightech clusters in Lyn and Grenble and frm the nearby universities. Fr Cnstellium, what is the strategic advantage f manufacturing in the Auvergne-Rhne-Alpes regin and hw d yu stay cmpetitive? At Issire, we are gegraphically extremely well lcated t serve the glbal market and can get a truck t ur Eurpean aerspace custmers within a day. France is als a cmpetitive destinatin fr manufacturing with regards t energy csts. The initial investment fr a plant the size f Issire can be 2 billin eurs, including a lt f capital expenditure n machines, because given the quality requirements f aerspace, we are a highly prcess-fcused industry. The key drivers in making a rlling mill cmpetitive are technical knwhw and maintaining equipment at a high level f readiness and perfrmance; it is really prductivity that matters and n this frnt France has many cmpetitive industries. What are the current drivers and fcus fr Cnstellium s R&D? Our research centres fcus n making the same structure at a lwer weight, driven by density f material, mechanical characteristics arund strength, durability and crrsin resistance. A key innvatin frm the Auvergne- Rhne-Alpes is Cnstellium s Airware Al-Li allys that can ffer 10% t 20% perfrmance imprvement which. We launched ur pilt cast huse in CTEC, and in ur new facility in Issire we have nearly 100 peple emplyed t manufacture the Al-Li allys. They have had great cmmercial success being used fr mst f the internal structures in the A350, als with the Bmbardier C series and Space X Falcn amngst varius ther space and defense applicatins. Hw has Cnstellium taken n the increasing cmpetitin frm cmpsite materials in aircraft? Fr example, we are wrking n the Wing f the Future prgram in partnership with custmers t develp a metallic wing with the same perfrmance as a cmpsite wing but at a significantly lwer cst. The Fuselage f the Future is already flying in the Bmbardier C series and the 777X kept the metallic fuselage, s we have clearly shwn metallic fuselages are superir cmpared t carbn fibre fuselages fr smaller aircraft. Hw imprtant a rle des recycling aluminum play fr Cnstellium? Recycling aluminum scrap is part f Cnstellium s legacy and we have built a strng supply chain s that mst f the aluminum that has ever been created is in use r is recycled. Recycling makes the mst sense when yu have high purity allys: when yu are adding lithium, silver and a lt f cpper. Recycling frm ur Al-Li, r custmers scrap is fundamental fr sustainability, but mrever is ecnmically advantageus in respect t the buy t fly rati, as the final aluminum architecture can remve 90% f the material. Ultimately, recycling imprves cst-benefit trade-ff fr custmers and makes it mre cmpetitive. Hw has Cnstellium psitined itself fr the ramp up and are yu seeing cmpetitin frm develping markets? Our ramp up was earlier in the decade when we saw increased build rate in wider aircraft, s we are well-psitined fr the current single-aisle prductin ramp up and d nt see a big grwth in aluminum - just 2% per annum. Fr ur custmers, we have helped reduce time t market by intrducing the free-machining, where we remve material and prepare the piece t g int their machines. We are seeing lcal metallic slutin supply mdels being discussed in emerging markets that culd be cmpetitin fr us but that is yet t be taken t the real sustained delivery phase. Hence, we have a huge capital investment behind us t supprt grwth and bring in Airware Al-Li technlgy. Mrever, Cnstellium s grwth market is autmtive, fllwing the trend that sees aluminum replacing steel. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

31 Glbal Business Reprts INTERVIEW Eric Pisani CEO SINTEX NP EMPLOYEES: > 500 TURNOVER: > 100 M AREA: MATERIALS MAIN ACTIVITY: DESIGN AND BUILD Culd yu intrduce the cmpany and the recent perfrmance perating internatinally in the aernautic space? The Sintex NP grup made 266 millin in sales in 2017, 8% f which was generated by the aerspace industry. We supply Airbus and its suppliers frm ur plants in France as well as in Tunisia and Mrcc, t be clse t ur key players and custmers in these cuntries. The last three years have been very dynamic with grwth linked t new aircraft such as the A350 prgram r the new LEAP engine. T what extent has the search fr lighter materials been the main R&D driver fr Sintex NP? As a result, what new inn- vatins are the cmpany able t bring t the market? We are finding that develpments in cmpsites are driven by a search fr lightweight materials and this is the main reasn why the percentage f cmpsites is increasing in aernautics. The ther driver fr this is the cst saving element. When cmparing traditinal thermset cmpsites manufacturing with a thermplastic prcess, there is a cst advantage because f a capacity advantage thrugh reducing cycle times. Mrever at Sintex NP we are able t prpse thrugh this thermplastic technlgy integratin f functins directly int the mld. Fr R&D we wrk a lt with universities in the regin, mainly with INSA. Our R&D department is wrking n develping vermlding f Cntinuus Fibre Reinfrced Plymers (CFRP), cmbining the mechanical functins f CFRP and integratin f functins thrugh injectin mulding. In thermplastic cmpsites we are knwn by custmers in aernautics as an expert, especially fr small and mid-size parts. Hw d yu carry ut testing and what rle des accreditatin play in giving Sintex a cmpetitive edge? Manufacturing testing is mstly realized internally, fr example nn-destructive testing (NDT) using ultrasnic r dye penetrant testing are carried ut with COSAC- COFREND certified peratrs. This prcess is als NADCAP accredited. We believe that mastering prcesses in huse is key t gaining a cmpetitive advantage. We als try t bring smething new t the market, which is why we invest heavily in R&D with an emphasis in the develpment f thermplastics cmpsites applicatins. Even thugh aernautics is nt ur main business segment, in terms f R&D investment, mst f ur resurces are allcated t this sectr. Culd yu talk abut the imprtance f sustainable develpment as a cmpany as well as the challenges faced when a prduct reaches the end f its lifespan. What will happen t the materials? We try t take care f all f these challenges and indeed, recycling is a key ne fr aernautics. We are fcusing n thermplastic cmpsites which have the advantage f being recyclable. I believe that even if the materials cannt be recycled within the aernautics industry these materials culd be reused fr ther applicatins in the autmtive industry, fr example. Hw d yu view the market s mve tward cnslidating t meet ramp up demands? As far as Sintex NP is cncerned, we have made many acquisitins in the last 25 years and were able t develp at a 10% annual grwth rate in Eurpe, which cannt be dne thrugh rganic grwth alne. Ten years ag, we acquired a cmpany called AIP, lcated in the Lyn regin enabling us t grw in aernautics. AIP has brught its expertise in machining and 3D printing f cmpnents. The market cnditins are a lt slwer in the aernautics industry cmpared t thers, but we still intend t play a rle in the cnslidatin f the supply chain. What is the grwth strategy fr Sintex in the cming years? We have ambitins t further develp ur cmpany thrugh rganic and inrganic grwth and, as a result, we hpe t extend the industry in the regin. We pay a lt f attentin t ur lcal netwrk. But a big driver in the midterm wuld be t have manufacturing capabilities in Nrth America. Fr us t be cnsidered as a key player in this industry yu need t cver bth Eurpe and Nrth America. What final message wuld yu like t cmmunicate t ur glbal readers abut Sintex and the future f the cmpany? We are wrking twards becming a glbal player in the aernautics supply chain thrugh ur technical expertise in the prcessing f thermplastic cmpsites and ur high investment in innvatin. 31 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

32 INTERVIEW Glbal Business Reprts 32 Jean-Luc NirJean Eurpean Hub & Villeurbanne Site Directr SAFRAN LANDING SYSTEMS Culd we have an intrductin t the carbn brakes activity and the Villeurbanne site? We are part f the aerspace wheels and brake divisin f Safran Landing Systems. Our expertise is in the carbn-carbn cmpsite used fr airplane braking systems. Our site is the riginal site that started the develpment and manufacturing f this prduct in The main prductin is fr the aerspace business but we are als wrking n diversified prducts, such as the Frmula One race cars braking applicatin. The research and technlgy develpment fr the carbn-carbn material prduct line has been maintained lcated n the site since the beginning. We are nw preparing fr entry int service the furth generatin f material. T what extent is Safran Landing Systems implementing a mre preventative maintenance apprach? Fr many years we have been wrking t execute preventive maintenance n 95% t 99% f ur prductin machines n a regular basis. We have nw started t deply Ttal Predictive Maintenance using ur IT systems s we can learn frm previus experiences t imprve. With the increase f cmpsite materials in airplane structures, d yu think the industry is prepared t manage sustain- able slutins fr the end f prduct life? In this respect, we are mre advanced than ther cmpanies in the cmpsite industry. We have been using carbn cmpsites fr ver 30 years fr the braking applicatins and we have made imprvements t the material s that we can reuse ur carbn material after several cycles under ur refurbishment prcess, t minimize the waste materials. Mrever, we resell ur fiber chutes t suppliers wh are able t make tissues, and we can reuse them in ur prcesses t clse the lp and reduce waste, which is gd fr ur business as well as the envirnment. Hw des Safran Landing Systems cllabrate at a reginal level fr research and develpment? Tday, we wrk clsely with the regin s universities fr ur research and develpment prjects. In particular, we wrk with INSA Lyn als based in Villeurbanne because f their fcus n triblgy, and we wrk with lcal labratries and ther cmpanies f Safran, such as Safran Ceramics. Frank Mreau Directr f Michelin Aircraft Tires MICHELIN Culd yu give an intrductin t Michelin s peratins within the aerspace sectr? Michelin is a wrldwide rganizatin, with a lng histry f wrking in the aerspace industry. In 1981, we intrduced the first radial tire in the histry f aircraft tire manufacturing, and since then have cn- tinued t develp new technlgies and slutins fr the industry. Tday we fllw the grwth f the glbal aircraft industry clsely, and we wrk in all aspects f tire design and manufacturing, and have design teams and factries based in France, the US and Thailand. Michelin and Safran intrduced their partnership prject PresSense at the Paris airshw last year. Culd yu intrduce ur readers t the prject and its develpment? Aircraft tires increase in temperature after the landing, but the tire pressure can nly be accurately tested and measured when the tire is cld. We decided t develp a methd f measuring temperature and pressure simultaneusly, s that as sn as an aircraft lands we can determine the tire pressure, and then use algrithms t calculate exactly what the tire pressure will be when the wheel has cled dwn. Electric sensrs are embedded within the tire itself and will be able t measure far mre data than previus methds f tire pressure testing. What are Michelin s main gals fr the next three t five years? The aircraft industry is currently experiencing a perid f rganic structural grwth, with the glbal number f aircraft expected t duble in the next twenty years, and Being and Airbus bth facing enrmus backlgs. We knw that we must be very agile in rder t meet the increasing demand. We are als anticipating the cst pressure n the market due t the increasing cmpetitin between air framers n ne hand and the airlines n the ther. Within this cntext, we are develping bth new affrdable prducts and new manufacturing schemes including digital and industry 4.0 and new technlgies. In the lnger term, as a result f the Michelin Ecnmy Circular strategy (Reduce Reuse Recycle - Renew), we are als develping specific R&D initiatives, particularly with new equipment and partnership prgrams, such as that we have with Safran. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

33 Glbal Business Reprts INTERVIEW Patrick Besnier President DBC EMPLOYEES: TURNOVER: M AREA: MATERIALS MAIN ACTIVITY: BUILD TO PRINT / PRODUCTION Can we start ff with an intrductin t the cmpany and its peratins in the aerspace industry? DBC has been wrking in machining, bar turning and precisin mechanics in the aernautics, aut-mtive, hydraulics and medical sectrs since We were a relatively small cmpany until 1994, and since then have grwn t a staff f 120 and a turnver f 18 millin. We have a wide range f technlgies at ur dispsal, with single and multi-spindle cam-cntrlled lathes, and ur wide range f technlgy sets us apart frm arund 500 cmpetitrs within France. Yu invest a minimum f 10% f yur revenue int yur machine fleet every year. Hw has it invlved in recent years - have yu been incrprating mre f Industry 4.0 int yur prcesses? The incrpratin f Industry 4.0 in and f itself is nt a driving factr at DBC. Cmpanies acrss the value chain are talking abut it and fcusing n it as a main gal, but we believe that upn exam-inatin, Industry 4.0 as a blanket term is misleading. Just because a piece f equipment might be classified as Industry 4.0 des nt mean that it is ging t translate int imprved efficiency, a re-ductin in cst r an increase in prductin capacity. Hw are yu cping with the pressure t bring yur prices dwn? We fcus n having first-class prductin quality, because we actually find that ur custmers are willing t pay a little mre fr ur prducts. We wrk n factrs like ur n-time delivery recrd in rder t ensure that we have a great reputatin t set us apart frm ur cmpetitrs, and t en-curage repeat business. D yu have the capacity t meet the increased demand f the prductin ramp-up? As we have dubled ur turnver in the last five years and we are wrking n increasing ur pr-ductin capacity by building an additinal 2500 square meters f prductin space. The site will be cmpleted in the July f this year. Hw d yu find recruiting qualified staff within the regin? Finding enugh qualified staff is a majr issue fr us. We are striving every day t find peple t wrk with us, and althugh we are ffering very high salaries, it is a struggle. The capacity f students that universities and technical clleges can take fr curses relevant t the aerspace industry is nt high enugh. The industry is nt attractive enugh fr yung peple, and particularly the industrial lcatins that many aerspace businesses are based in are unattrac-tive t yung peple wh prefer t be based in cities. It is a real prblem fr us, and ne that we cannt slve alne. 33 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

34 EDITORIAL Glbal Business Reprts Cutting edge technlgies Jcelyn Lardet Industrial Directr JET CUT EMPLOYEES: TURNOVER: 5-10 M AREA: MATERIALS MAIN ACTIVITY: BUILD TO PRINT 34 The cllabrative spirit f the Auvergne- Rhône-Alpes regin is exemplified in the appraches twards material cutting and treating services. One f the regin s cmpetitive advantages is nt nly that cmpsite materials are being widely develped, manufactured and used here, but that innvative methds f cutting and treating them are available clse by. As traditinal methds f cutting, such as laser, are inapprpriate fr using with cmpsite materials as they damage their structural integrity, mre cmpatible methds have been develped by cmpanies within the regin, such as high pressure water jet cutting at Jet Cut. After the cutting and shaping f materials has been cmpleted, surface finishing services t extend the service life f the finished parts are als widely ffered within the regin. Cmpanies such as BINC Industries are treating mechanical parts fr Tier 1 and Tier 2 suppliers with their patented MMP technlgy and delivering peratinal efficiency imprvements f up t 1.5%. Culd we start with an intrductin t the Energie Metal grup and in particular Jet Cut? Jet Cut prvides water jet cutting services primarily fr the aerspace sectr, which generates 80% f its revenue. Water jet cutting is an alternative t ther frms f cutting such as laser cutting, plasma cutting and sawing, whereby high-pressure water is used t cut metal and cmpsite materials. We intrduced water jet technlgy within the aerspace industry in cllabratin with Airbus and frm here we have develped a very strng partnership with them which has extended int further prjects. Our main clients are cmpsites parts manufacturers and ther metallic subcntractrs manufacturing titanium, steel, special allys and aluminum parts thrugh milling and frging technlgies. We have three main prducts that we use water jet cutting fr: the first is aerstructure parts f an aircraft, the secnd applicatin is fr aircraft cabins, and the third applicatin is aircraft engines. What are sme f the benefits f using water jet cutting ver ther frms f cutting? The main benefit is the reductin f material waste because ur technlgy is able t cut materials f any shape and thickness using nesting ptimisatin. An additinal benefit is t avid causing any damage where the cut is made. We d nt change the structure f the material that we use, whereas techniques like laser r plasma cutting drastically alter the prperties f the material at the place f the incisin. Hw d yu ensure that yur prcesses will be cmpatible with materials f the future fr the aerspace industry? We are cnstantly develping ur technlgies arund new materials, and we spend a lt f time and capital n R&D fr new materials that culd be used in the future. D yu anticipate any cmpetitin within this industry? The water jet market is still very narrw but we d anticipate cmpetitin t increase as demand increases, and s we are dubling the size f ur plant in preparatin fr this. We have launched an ambitius investment plan t ptimize prduct quality and prductivity t ffer the best service t ur clients. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

35 Glbal Business Reprts INSIGHTS Cutting and Treating The current research fcus is develping cmpsite prcess slutins that are specifically adapted t meet the technical needs f the aerspace industry, such as thse that can be repeatedly expsed t extreme temperatures withut suffering a deteriratin in quality r perfrmance. The main difficulty we are facing is develping methds t transfrm materials that can then later be effectively manufactured in larger quantities. - Jean-Michel Deck, Business Develpment, Cmpse 35 When a tl is first designed n a cmputer, it has n structural flaws r weak pints, hwever, when it is created in reality there are s many factrs invlved that there will always inevitably be a tiny weak pint. Our sftware will identify the mst fragile parts f engineering tls and anticipate which repeated actins will cause them t break and adapt the methd f prductin in rder t avid putting t much pressure n the weakest pints. - Eric Gerval, President, G2Cam A cuple f years ag, we did a study with the engineering department f NASA t explre ways f imprving turbine engines in cmmercial aircraft. They wanted t imprve the surfaces f different cmpnents and, after being treated with MMP technlgy, the cmpnent imprved the turbine efficiency by 1.5%. This imprvement is huge - it translates int a drastic reductin f fuel cnsumptin and an increased lifetime f the cmpnent. - Frédéric Bajard, C.O.O, Binc Industries Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

36 GBR Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Image curtesy f Sintex NP

37 Industry Prspects "When we started, we exprted nne f ur prducts, and nw we exprt nearly 12%. Nw, as OSG s subsidiary, we enjy their channel f distributin and their supprt, with presence in Belgium, Spain, and Pland. Our pririty has been t access Airbus cuntries, as 50% f ur turnver cmes frm Airbus related wrk. - Jean-Françis Bain, Internatinal Sales Directr, Grupe Desgranges

38 EDITORIAL Glbal Business Reprts 38 Industry 4.0: Can Auvergne- Rhône-Alpes keep up? With glbal passenger travel grwth ver the last five years averaging 6.2%, and aircraft demand massively surpassing supply, the glbal aerspace industry is cnstantly searching fr ways t increase prductin capacity. Many OEMs are adpting mre digital and hypercnnected technlgies int their manufacturing prcesses, glbally dubbed Industry 4.0. The use f digital technlgy in aircraft manufacturing is nt new, at least when it cmes t OEMs. Airbus utilizatin f the cmplex Dassault Systemes 3D Experience sftware platfrm fr the manufacturing f the A350 XWB series demnstrated the transfrmative ptential that Industry 4.0 has fr aircraft manufacturing, creating a single platfrm fr design, simulatin and manufacturing, where emplyees and suppliers can instantaneusly cllabrate with ne anther n digital simulatins f the manufacturing prcess. Airbus utilizatin f this sftware represented nt nly an adptin f Industry 4.0, but als ne f its majr pushes twards a cnslidatin f the aerspace supply chain. The sftware cnnected up t 4,000 peple per day, with 85% f that number cming frm their supply chain. One f the principal aims was t remedy a lack f cmmunicatin that had previusly plagued the aerspace supply chain that extended design time, included errrs that drve up csts. This cllabrative apprach demnstrably prvided psitive results. The OEM design and assembly prcess has thus becme altgether mre cnnected, and the success f this mre cllabrative apprach is driving OEMs t encurage suppliers at all levels f the value chain t adpt a similarly cllabrative spirit t their wn individual peratins. Smaller cmpanies (SMEs) must integrate this cnnectedness within their wn peratins which brings a new set f challenges. SMEs face mre hurdles than OEMs in incrprating Industry 4.0, because, while adpting new technlgies may ffer clear lng-term benefits, it can be a cstly prcess. Nwhere is this mre apparent than in the Auvergne-Rhône-Alpes aerspace cluster, with its lack f primary cmpanies and its abundance f SME players. An abundance f SMEs prducing niche prducts might be cnsidered as a strength ffering high-level innvatin, but if fully incrprating Industry 4.0 prves t cstprhibitive fr them, they may als hinder the regin s chances f achieving its aim f becming ne f the tp five aerspace clusters in Eurpe. S far, cmpanies within the regin are generally making psitive steps twards incrprating Industry 4.0. The facilitatrs f this prgress are primarily lcated within the regin itself: a thriving market has emerged f cmpanies geared twards assisting ther SMEs t incrprate Industry 4.0 in an affrdable and sustainable manner. Digital twin and simulatin technlgy: trickling dwn t the SME space While digital twin technlgy, which simulates manufacturing plants and is able t calculate the mst efficient methds f prductin pssible based n available resurces, may nce have been the reserve f OEMs and Tier One suppliers, it is becming increasingly accessible t cmpanies further dwn the value chain in Auvergne- Rhône-Alpes. Cmpanies such as Inprd have identified the specific needs f the SMEs in the regin and develped ways f applying their technlgy t SME peratins. Pascal Dubuis, CEO, utlined hw his cmpany s expertise in dynamic flw simulatin technlgy, amng ther tls, can facilitate a level f peratinal analysis and frward-planning that wuld therwise require mnths f bservatin and human mental labr: "In just a few minutes, we are able t simulate several mnths f prductin and thus predict hw the plant will be perating and what its future perfrmance will be, such as its ODT. This is particularly useful at the mment with the prductin ramp-up in the aernautics industry because we are able t calculate a cmpany s capacity t meet demand and advise n where they shuld invest their resurces in rder t increase their capacity, he said. Niche sftware slutins fr cmpanies further dwn the aerspace supply chain are als becming ppular. GO2Cam, a Lynbased cmpany, develps sftware that calculates the mst ptimal rute fr a cutting tl t take mre quickly and accurately than a human peratr can. We knw that suppliers in the aerspace industry are facing increasing pressure t reduce their csts and we ffer a unique and cst-effective slutin t help them d s, explained CEO Eric Gerval. The cmpany is mindful f the real need fr a quick and easily quantifiable ROI that SMEs with limited budgets have: Our custmers can expect a very fast return n investments. Using the sftware results in prductin savings in tw ways: firstly, we can typically reduce the prductin time f specific parts by 10% t 20%, with n changes t the machines r tls used. Secndly, we can dramatically reduce the frequency and cst f repairing and replacing cutting tls, he added. Rbtics: the way frward? The use f rbtics and autmated prcesses in manufacturing is als rapidly increasing in the regin. Grupe Rux-Jurfier AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

39 Glbal Business Reprts Image curtesy f Jet Cut EDITORIAL family businesses in the regin. These cmpanies are chsing t take a mre cllabrative apprach in rder t avid being left behind in the regin s technlgical develpment. This is demnstrated by MGB and Lathuille Hudry, tw small family cmpanies in Annecy that recently c-invested in sme shared additive manufacturing (3D printing) equipment. Investment in new technlgy such as 3D printing technlgy, which is arund 1millin, can be cstprhibitive s we prefer t share the risk by partnering. We are far strnger when we wrk tgether, explained Bertrand Duby, sales manager at MGB. While mre autmated manufacturing will certainly bring csts dwn fr smaller cmpanies by reducing the need fr human peratrs, fr cmpanies prducing mre cmplex parts, the need fr high-skilled staff can never be entirely eliminated. A balance must be fund between the autmated and the human, with test-benching becming predminantly autmated and able t wrk 24 hurs a day, and final assembly and quality and safety tests perfrmed by human peratrs. 39 An alternative way frward? helps cmpanies intrduce cllabrative rbts that are capable f wrking clsely alngside human peratrs t increase peratinal efficiency. There has been a significant increase recently in cmpanies requesting rbtics t assist with welding prcesses. Three years ag, we had n aerspace custmers in this area, but tday they generate arund 50% f RJ Industrie s revenue, disclsed Franck Kerrachi, missin leader at Grupe Rux-Jurfier. Family cmpanies: traditin versus the future The incrpratin f Industry 4.0 als brings less bvius benefits t cmpanies within the Auvergne-Rhône-Alpes regin, beynd a straightfrward maximizatin f resurce ptential: it may ffer a lifeline t small family cmpanies cmmitted t remaining in France and t avid utsurcing wrk t best-cst cuntries. As Yann Ginn, prject manager at Kalistrut, said: It is a challenge t be cmpetitive when manufacturing in France because salaries and general perating csts are higher. We are reacting t this challenge by incrprating mre f Industry 4.0 int ur prcesses and we wrking n making ur manufacturing mre autmatic. While an awareness f the benefits f incrprating new technlgies prevails in smaller cmpanies, it is a strategy that is prving cst-prhibitive fr sme smaller While the majrity f cmpanies within the Auvergne-Rhône-Alpes regin appear t be priritizing the incrpratin f Industry 4.0 in their strategies fr the near future, acceptance f the benefits f such a system is nt universal. Sme industry leaders, such as Patrick Besnier, president at DBC, believe that incrprating Industry 4.0 is nt necessarily the best way t mve frward. "The incrpratin f Industry 4.0 in and f itself is nt a driving factr at DBC. Cmpanies acrss the value chain are talking abut it and fcusing n it as a main gal, but we believe that upn examinatin, Industry 4.0 as a blanket term is misleading. Just because a piece f equipment might be classified as Industry 4.0 des nt mean that it is ging t translate int imprved efficiency, a reductin in cst r an increase in prductin capacity, he explained. The cmpany is instead chsing t fcus n surcing manufacturing equipment frm German suppliers. Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

40 INTERVIEW Glbal Business Reprts 40 Pascal Dubis CEO INOPROD EMPLOYEES: 1-19 AREA: INDUSTRY OF THE FUTURE MAIN ACTIVITY: ENGINEERING & DESIGN Can we start ff with a brief intrductin t Inprd and the services it prvides t the aerspace industry in Auvergne-Rhône-Alpes? Inprd is an engineering cnsultant based in Auvergne-Rhône-Alpes that helps industrial cmpanies t ptimize their manufacturing prcesses and supply chain management, with arund 20% f ur business in the aerspace sectr. We can create new manufacturing plants, ptimize existing plants, and thus secure the CAPEX investments f ur custmers. We use dynamic flw simulatin technlgy, thrugh different digital tls. Thanks t this expertise we are able t create digital twins f manufacturing plants and calculate the interactin between all f the prcesses and resurces within it. The capabilities f this simulatin sftware are very advanced. Thanks t the expertise f ur engineering team, we are able t represent the flws f materials and pieces in 2D & 3D and build all the KPIs needed fr decisin making. In just a few minutes, we are able t simulate several mnths f prductin and thus predict hw the plant will be perating and what its future perfrmance will be, such as its ODT. This is particularly useful at the mment with the prductin ramp-up in the aernautics industry because we are able t calculate a cmpany s capacity t meet demand and advise n where they shuld invest their resurces in rder t increase their capacity. Our prjects can help peratrs wrk better and mre safely; we can assess all f the wrk statins within plants and calculate their maximum resurce capacity in terms f human resurces, energetic pwer, rbts and all ther types f machinery. We als simulate the impact manufacturing machinery is having n the peple wh are perating it in rder t avid musculskeletal prblems arising frm labur within manufacturing sites. We calculate the safest and mst ergnmic ways fr peratrs t use equipment by simulating them in a virtual envirnment and then dwnlading the settings directly t the equipment. This means that there is less human risk invlved and time is saved in prductin. OEM s are pushing fr a cnslidatin f the supply chain in rder t meet ramp-up demand. Hw can Inprd cntribute t a cnslidatin f the supply chain? We cntribute by helping small and medium cmpanies in aerspace significantly increase their prductin capacity. Fr example, we were recently wrking with a cmpany that prduces engine parts fr the Airbus A321Ne prgram and that was having big prblems with meeting ramp up demand. When they came t us, they were able t prduce less than 100 parts per year. After wrking with us they are nw prducing 3000 parts per year. We spent ne mnth assessing their site and develping a mdel fr their future peratins, which we then helped them t implement. We are als in discussin with majr cmpanies in the ASD sectr. Fr example we wrked with the Ariane Grup t help them develp their manufacturing prcesses fr building the new Ariane launcher. Cmpanies acrss the value chain in the aerspace industry are increasingly incrprating Industry 4.0 int their prcesses. What rle is Inprd playing in this develpment? We are a strategic partner in the implementatin f Industry 4.0. Fr example, we met with Airbus recently, wh cnfirmed that it is imprtant fr them t have a rbust supply chain and guaranteed delivery times, which will nly be pssible with the integratin f digital bricks as we prpse them. Small cmpanies need t prve that they can answer Airbus needs and we can help them d that. We are the nly cmpany that ffers this kind f engineering and simulatin services, s we expect t play a leading rle in this develpment. What is the future strategy fr Inprd? We are expanding int the Nrth American aernautical market, particularly Canada. We have ur first custmers there nw and we expect t attract mre quickly as the Canadian aernautic industry is increasingly cmmitted t incrprating Industry 4.0 int their prcesses and we are best placed t partner with them n this. Befre the end f this year, we hpe t have a subsidiary in Mntreal in rder t be near t ur custmers and ffer them the best pssible service. AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

41 Glbal Business Reprts INSIGHTS At a glance: Industry 4.0 in Auvergne-Rhône-Alpes We implemented peratinal excellence with lean techniques acrss the cmpany[ ] This enables us t have arund 80% f ur manufacturing carried ut in Lyn with high qualified manpwer; we are prud t keep ur manufacturing in France. - Jean-Manuel Pauchet, Managing Directr, SIC Marking Grup 41 "Our strategy fr the next three years is t develp and imprve the way that we use cnnected systems and big data in industrial systems. We have been studying additive manufacturing fr almst 10 years nw, and have recently been testing the use f rbtics in 3D impressin prcesses." - Jsé Alba, Directr, 2matech Image: Tkapic Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

42 INSIGHTS Glbal Business Reprts SMEs: stepping up t primary expectatins Partnerships are increasingly becming essential fr the survival f smaller cmpanies because big cmpanies like Zdiac and Safran need suppliers that they can rely n, and they have made it very clear that there is a minimum size f cmpany that they are willing t wrk with. - Bertrand Duby, Cmmercial Directr, MGB 42 Leading cmpanies nw prefer t wrk with larger suppliers because they are cncerned that smaller suppliers d nt have the capacity t meet increased demand, s we have benefited greatly frm becming a family member f the OSG Grup, as we are nw n lnger seen as a small cmpany. - Emmanuel Saint Supery, President, SMOC "SN Auvergne Aernautique nw has the cmpetitive edge f being part f the Figeac Aer Grup. We are nt limited at all in the types f custmers r prjects that we can cnsider taking n, because if we d nt have a certain type f machinery r a particular resurce that a prject might need, we are able t quickly find it with the supprt f the Figeac Aer Grup." - Bernard Lavergne, President, SN Auvergne Aernautique In rder fr an SME t successfully wrk with leaders such as Airbus, it needs t be generating revenues f ver 20 millin; this is ging t be a big barrier ver the next few years fr SMEs acrss France, but Cmpse is cmmitted t meeting this gal. We see this as a huge pprtunity t grw and develp rather than as a barrier. The interesting thing with this market is its future ptential, as this industry is always grwing and develping. - Jean-Michel Deck, Business Develpment, Cmpse AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

43 Glbal Business Reprts CREDITS EDITORIAL AND MANAGEMENT TEAM Prject Directr: Laura Brangwin Prject Jurnalist: Sarah Crmptn Dnnelly Editr: Mung Smith Operatins Directr: Miguel Pérez-Sler Graphic Design: Gnzal Da Cunha Graphic Design (adverts): Özgür & Deniz General Manager: Alice Pascletti Yur pinin is imprtant t us, please be in tuch t share yur cmments n this reprt! Fr updated industry news frm ur n-the-grund teams arund the wrld, please visit ur website at gbreprts.cm, subscribe t ur newsletter thrugh ur website, r fllw us n 43 THANK YOU We wuld like t thank all the executives and authrities that tk the time t meet with us. Als, special thanks t: AUVERGNE-RHÔNE-ALPES AEROSPACE CLUSTER LA REGION AUVERGNE-RHÔNE-ALPES Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

44 CAPABILITY INDEX Glbal Business Reprts COMPANY ENGINEERING & DESIGN SYSTEM DESIGN AND BUILD DESIGN & BUILD BUILD TO SERVICE MATERIALS PRINT MECHANICS AND METALLURGY ELECTRICAL AND ELECTRONICS (HARD AND SOFT) PLASTICS AND COMPOSITES PAINTING, COATINGS AND SURFACE TREATMENTS 2MATECH ACOEM APOJEE AVNIR AIRPORT AVNIR ENGINEERING AXEAL CONSULTANT CEREBRUM INGENIERIE CFD NUMERICS CNEP (Centre Natinal d'evaluatin de Phtprtectin) EVIATEK GO2CAM INTERNATIONAL INFLUTHERM INOPROD Services InS SA SOGILIS TECHNI-MODUL ENGINEERING UF1 VIBRATEC AIR LIQUIDE ADVANCED TECHNOLOGIES LORD FLY-BY-WIRE SYSTEMS France NTN - SNR ROULEMENTS SAFRAN ELECTRONICS & DEFENSE SECAERO SKF Aerspace THALES AVIONICS VISION SYSTEMS AERONAUTICS ZODIAC AEROTECHNICS 2MI - Mdèles et Mules pur l'industrie ADDUP AEROFORM FRANCE AEROPLAST GROUP AMPHENOL SOCAPEX SAS AUBERT & DUVAL BONNAVION SECURE SYSTEM BROCHIER TECHNOLOGIES CADNUM CARBONE FORGE CARI ELECTRONIC CEDRAT TECHNOLOGIES S.A. CENTRALP CENTUM ADETEL CHOMARAT TEXTILES INDUSTRIES CMI SLETI COMPOSE CONDAT CONSTELLIUM ISSOIRE CORIMA TECHNOLOGIES CRANE AEROSPACE & ELECTRONICS - ELDEC France CRISTAL INNOV CROUZET AUTOMATISMES DAM/DACTEM DEVELOPPEMENT DAXEN DESGRANGES OUTILS COUPANTS DIAMOUTILS DIATEX SAS DUQUEINE RHONE-ALPES EFR SAS (Eurpean Furnace Rpin SAS) EOLANE SAINT AGREVE FB PACK FOURS INDUSTRIELS B.M.I. GARDNER - AIRIA AEROSPACE GROUP GGB France EURL HEAT CONCEPT HERATEC SAS HEXCEL COMPOSITES INVENTEC PERFORMANCE CHEMICALS ISI ISOJET EQUIPEMENTS KALISTRUT AEROSPACE LE CRENEAU INDUSTRIEL MDP MAXON MOTOR FranceNE-ALPES AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

45 Glbal Business Reprts DIRECTORY INDEX Industry Explratins TOOLING TESTS AND CONTROL INDUSTRIAL PROCESS (MACHINES) MRO GROUND SUPPORT EQUIPMENT TRAINING RESEARCH LOGISTICS COMPUTER SERVICES OTHER SERVICES ISO ISO 9001 EN/AS/ JISQ 9100 NADCAP PART 21 PART 145 ISO WEBSITE airliquideadvancedtechnlgie.cm sagem.ds.cm aerspace.maxnmtr.fr AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

46 CAPABILITY INDEX Glbal Business Reprts COMPANY DESIGN & BUILD BUILD TO SERVICE MATERIALS PRINT MECHANICS AND METALLURGY ELECTRICAL AND ELECTRONICS (HARD AND SOFT) PLASTICS AND COMPOSITES PAINTING, COATINGS AND SURFACE TREATMENTS MECACONCEPT MECAPOLE MEGGITT SENSOREX MGB MICHELIN AIRCRAFT TYRE MIJNO PRECISION GEARING MODELAGE MECANIQUE DU DAUPHINE - MMD MPM (METAL VALUE PRESSES & MACHINES) NEFAB PACKAGING France NICOMATIC NSE OROS S.A.S.U PETERCEM PLANSEE TUNGSTEN ALLOYS - CIME BOCUZE PORCHER INDUSTRIES RADIALL REEL REXIAA SAFRAN LANDING SYSTEMS SAINT-GOBAIN PERFORMANCE PLASTICS France (BU PROCESS SYSTEMS) SAT EQUIPEMENTS THERMIQUES INDUSTRIELS SCAIME SFH SIC MARKING SINTEX NP SLICOM TECHNOLOGIES SMW-AUTOBLOCK SOFILETA SOFIPLAST SUNAERO TECALEMIT AEROSPACE TELEDYNE - E2V TEXPROTEC THERMOCOMPACT / GROUPE THERMOTECHNOLOGIES TIMET SAVOIE TIVOLY TRONICS MICROSYSTEMS UGITECH AMDI 0 ANTHOGYR ATELIERS D ENGRENAGES DE PRÉCISION (AEP) BALLAND-GAILLETON SAS BERGHEAUD BILLARD ENGRENAGES CATTIN SAS - Usinage numérique de précisin COURBIS INDUSTRIES CTMI DBC DECOPREM (ALPES USINAGE) DOMAERO EFITAM EKTRO GABRIEL MAUVAIS SARL GMP-ATIM Technlgies Grupe BRIZARD INDUSTRIES GROUPE RJ GUERIPEL ICA 63 - INGENIERIE CHAUDRONNERIE AERONAUTIQUE ICM INDUSTRIE JET CUT LASER RHONE-ALPES LATHUILLE HUDRY SAS LEPTONS TECHNOLOGIES LOIRE INDUSTRIE MARCEL INDUSTRIE MDV MICROWELD MINITUBES MISSLER SOFTWARE MOULINAGE DU SOLIER AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

47 Glbal Business Reprts DIRECTORY INDEX Industry Explratins TOOLING TESTS AND CONTROL INDUSTRIAL PROCESS (MACHINES) MRO GROUND SUPPORT EQUIPMENT TRAINING RESEARCH LOGISTICS COMPUTER SERVICES OTHER SERVICES ISO ISO 9001 EN/AS/ JISQ 9100 NADCAP PART 21 PART 145 ISO WEBSITE aep.fr/ ingenierie-chaudrnnerie-aernautique.cm leptns-technlgies.cm AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

48 CAPABILITY INDEX COMPANY ENGINEERING & DESIGN BUILD TO SERVICE MATERIALS PRINT MECHANICS AND METALLURGY ELECTRICAL AND ELECTRONICS (HARD AND SOFT) Glbal Business Reprts PLASTICS AND COMPOSITES PAINTING, COATINGS AND SURFACE TREATMENTS NEONICKEL NOVARESSORT PEZET SAS PMD VALLON PORTELLI PRODUCTIONS PROFORM SAVOIE RECTIFICATION SEEB AUTOMATION SERINOX SERRE INDUSTRIE MECANIQUE SETFORGE LA CLAYETTE Sciété Nuvelle SIMEP SMOC INDUSTRIES SN AUVERGNE AERONAUTIQUE SPECIAL BRIDES SERVICE (SBS) SUCHIER SUDELEC SUPERMETAL TECHCI RHONE-ALPES TOLYREX WE ARE Grup WICHARD ACNIS INTERNATIONAL AD SOFTWARE ADDEV MATERIALS (DIMEX) AÉROPORTS DE LYON AUVERGNE QUALITE AVIATION STRUCTURE ASSISTANCE BANC NATIONAL D'EPREUVE BINC INDUSTRIES SAS BOUYGUES E&S Maintenance Industrielle CIPAM COMPOSITES DISTRIBUTION CT CORETECHNOLOGIE DEVILLE RECTIFICATION DIMOTRANS GROUP EMITECH HOP! REGIONAL INFODREAM INTERFACE TECHNOLOGIES LMBA MARLIER SA MODERTECH INDUSTRIES PRAXAIR SURFACE TECHNOLOGIES SIAE / AIA Clermnt-Ferrand - AIA Ambérieu SOPAVIB SOUDAGE TECHNIQUE D'AUVERGNE TECHNO LOGISTIQUE TECKNOWMETRIX THERMI-LYON TMD ZEP AVIATION ZYLIA TECH ADFI CFAI DU DAUPHINE CAMPUS DES METIERS ET DES QUALIFICATIONS AERONAUTIQUES AUVERGNE-RHONE-ALPES CETIM Délégatin Réginale ECOLE SUPERIEURE D'INGENIEURS EN SYSTEMES INDUSTRIELS AVANCES RA FONDATION LA MACHE-ECOLE LA MACHE I M A A (Instructin Maintenance Aérnautique et Autmbile) - MFR INSA DE LYON INSAVALOR INSTITUT CARNOT LYON IPC - INNOVATION PLASTURGIE COMPOSITES LYCEE ROGER CLAUSTRES ONERA - CENTRE DE MODANE AVRIEUX SIGMA CLERMONT AUVERGNE-RHONE-ALPES ENTREPRISES CCI DE REGION AUVERGNE-RHONE-ALPES DIRECCTE AUVERGNE-RHONE-ALPES REGION AUVERGNE-RHONE-ALPES AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

49 Glbal Business Reprts CAPABILITY INDEX Industry Explratins TOOLING TESTS AND CONTROL INDUSTRIAL PROCESS (MACHINES) MRO GROUND SUPPORT EQUIPMENT TRAINING RESEARCH LOGISTICS COMPUTER SERVICES OTHER SERVICES ISO ISO 9001 EN/AS/ JISQ 9100 NADCAP PART 21 PART 145 ISO WEBSITE esisar.grenble-inp.fr AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

50 PARTICIPATING COMPANIES DIRECTORY Glbal Business Reprts Cmpany Website Lcal Telephne 2matech (+33) Acnis Internatinal (+33) Air Liquide Advanced Technlgies (+33) Amphenl Scapex (+33) Auvergne-Rhône-Alpes Aerspace Cluster (+33) Auvergne-Rhône-Alpes Enterprises Agency (+33) Avnir Engineering (+33) BINC Industries France (+33) Campus Aernautics Auvergne-Rhône-Alpes (+33) Centum Adene (+33) Cmpse Grup (+33) Cnstellium (+33) Cristal Innv (+33) Cruzet Autmatismes (+33) CSUG csug-cntact@univ-grenble-alpes.fr Desgranges Outils Cupants (+33) DBC (+33) Duqueine (+33) Eldec France \ (+33) Emitech (+33) Esisar (+33) GGB (+33) GO2CAM Internatinal Grupe Rux Jurfier (+33) (+33) Inprd (+33) Institut Carnt (+33) Jet Cut (+33) Kalistrut Aerspace (+33) Lathuille Hudry (+33) MDP Maxn Mtr France aerspace.maxnmtr.fr (+33) Mecaple (+33) Meggitt-Sesnrex (+33) MGB (+33) Michelin Aircraft Tyres (+33) Prfrm SAS (+33) Safran Landing Systems (+33) Secaer (+33) SIC Marking (+33) Sintex NF Grup (+33) SKF Aerspace France (+33) Smc Industries (+33) SN Auvergne Aernautique (+33) Techni-Mdul Engineering (+33) Teledyne E2V Semicnductrs (+33) Thales (+33) Timet Savie (+33) Tresse Industries (+33) Zdiac Aertechnics (+33) AUVERGNE-RHÔNE-ALPES AEROSPACE 2018 Industry Explratins

51 Glbal Business Reprts PARTICIPATING COMPANIES DIRECTORY Lcal Address 220 rue Lén Blum, VILLEURBANNE 220 rue Lén Blum,69100 VILLEURBANNE 2 rue de Clémencières, Les Engenières, BP 15, SASSENAGE 948 Prmenade de l'arve, BP 29, THYEZ 32 quai Perrache, LYON 30 Quai Perrache, Immeuble Empreinte, LYON 15 bulevard Vivier Merle, LYON 10 rue du Champ Dlin, SAINT PRIEST Rue Maryse Bastié, AULNAT 4 chemin du Ruisseau, ECULLY 8 bis avenue de la Gare, BP 79, OYONNAX Rue Yves Lamurdedieu, ZI des Listes, CS 40042, ISSOIRE Parc d'activités Alpespace, 354 vie Magellan, SAINTE HÉLÈNE DU LAC 2 rue du Dcteur Abel, BP 59, VALENCE 120 Rue de la Piscine, SAINT-MARTIN-D'HÈRES rue Jean Marturet, BP 12, ANDREZIEUX BOUTHEON 151 rue de la Marinière, SCIONZIER 442 avenue Lavisier, MASSIEUX 10 Rue de Lmbardie, SAINT-PRIEST 7 rue Gerges Méliès, CHASSIEU Esisar, 50 rue Barthélémy de Laffemas BP 54, VALENCE 65 chemin de la Prairie, BP 2074, ANNECY 120 avenue Jean Jaurès, LYON Rue de Serbie, CLERMONT-FERRAND 46 Rue de Sarliève, Centre d'affaires du Zénith, COURNON-D'AUVERGNE 66 Bulevard Niels Bhr, VILLEURBANNE ZA de Lavée, YSSINGEAUX 1 avenue Marc Seguin, CS 14189, SAINT VALLIER ZAC des Léchères, Rue des Nisetiers, BP 69, MARNAZ 21 Prte du Grand Lyn, Neyrn, MIRIBEL 95 curs Lafayette, LYON 196 rue Luis Rustin, Parc d Affaires Internatinal, BP 63108, ARCHAMPS Rue du Bargy, BP 16, MARNAZ Place des Carmes-Déchaux, CLERMONT FERRAND 4-8 rute du Caillu, BP 12 - Zne des Sables, CHAPONOST 7, AV du Bel Air, VILLEURBANNE Aérprt de Valence-Chabeuil, CHABEUIL ZAC de la Braille, 13 rue de Limnest, BP 73, LISSIEU 10, Rue Jean Rstand, GENAS 22 rue Brillat Savarin, Rvaltain - Parc du 45ème Parallèle, BP 16235, CHATEAUNEUF-SUR-ISERE ZI Rute de Saint Quentin, TULLINS 1 rue Turia Chaui, AULNAT ZA de Pérache, COUDES Avenue de Rchepleine, BP 123, SAINT EGREVE 25 rue Jules Védrines, VALENCE 62, AV Paul Gird, UGINE Rue Marc Seguin, Zne Industrielle, AMBERT Bulevard Sagnat, BP 3, ROCHE LA MOLIERE 51 Industry Explratins AUVERGNE-RHÔNE-ALPES AEROSPACE 2018

52