U.S. composite-parts supplier Hexcel has announced that it is building a new facility in Roussillon, near Lyon, in the southeast of France–an important commitment to its European customers. When Hexcel (Chalet 113, Hall 2B F80) began looking for a new location in Europe, it had plenty of choices but very strict specifications. “We want to have reliable production lines on both sides of the Atlantic,” vice-president and European general manager Thierry Merlot explained to AIN. “We want to get closer to our customers,” he said.
Now based in Lyon, the French engineer has been employed by Hexcel in France since 1988. He saw the composite market take off in Europe, due to big changes in aircraft design and production over the past ten years. Hexcel took three and half years to find the perfect location for its new plant.
Despite high labor costs in Europe, especially in France, the choice at the end was logical. Because the EU Seveso Directive regulates the safety of hazardous substances, Merlot said, “We were looking for a location classified as a ‘Seveso high threshold site’ able to deal with the chemical installation, water treatment and one that offers low energy costs. We got offers from all over Europe, about 60 applicants.”
Before the final decision, Hexcel had limited the choices to two sites in France and one in the UK. “We chose the site at Roussillon in Rhônes-Alpes, 80 km away from our own installation near Lyon,” said Merlot. “The energy price is lower in France than in the UK and it’s also closer to our customers Airbus and Safran.”
Municipal leaders in Roussillon have pledged to help recruiting and training the new employees. No infrastructure will have to be built at the site, because other chemical companies already operate there.
The new facility represents a $250 million investment and will generate 130 direct jobs, plus 130 indirect positions, said Merlot. Hexcel, which already employs some 1,000 people in France, will start the recruitment process at the end of 2015. The new employees–mostly operators for the production line–will then be trained in the U.S. and Spain in order to start operations at the beginning of 2018. If it works properly, “We could then double production by 2018/2019,” Merlot explained. Hexcel is building two factories at the new site. The first will produce polyacrylonitrile (PAN), the basic material used in many composite materials. The second will manufacture carbon fiber.
Hexcel products can also be found in cars, skis and wind turbines, but by far, its largest market in Europe is aerospace, at around 90 percent. The company produces carbon-based material for all types of aircraft: helicopters, the Ariane rocket launcher and for Dassault’s Falcon and Rafale military aircraft.
Another big customer is Safran, which is starting production of its new Leap engine, part of the CFM joint-venture with GE. More than 7,500 engines with carbon-fiber blades have already been ordered and it is important for Safran to have a reliable supplier that can help ramp up the program.
Hexcel is also able to invest because of excellent business forecasts. The company is looking to boost revenues by more than 66 percent over the next decade, growing from the $1.8 billion it achieved in 2014 (10 percent growth from 2013) to $3 billion in 2020.
At the JEC trade show in Paris on March 10, the U.S. group’s president and CEO, Nick Stanage, told reporters that growth will be driven by acquisitions as well as the expanded use of new aerostructures manufacturing technology. Merlot confirmed, “Our revenues will grow by 10 percent a year as we are able to invest capital in our development.” More and more aircraft are using composites, with the Airbus A350XWB consisting of up to 53 percent carbon-fiber material. The composite components are worth about $5 million per plane.
Here at the Paris Air show Hexcel will unveil new materials to help reduce engine noise and offer better heat-resistance, preparing the way for the A320Neo, Boeing 777X and a possible A380Neo.