Korea Aerospace Industries lands Americas expansion deal with Mexico
The Korean manufacturer signed an agreement with Mexico's aerospace association and Posco International to pursue local production and broader exports across the Americas.
From left: Minister of Trade, Industry and Resources Kim Jung-kwan, Korea Aerospace Industries CEO Kim Jong-chool, Mexican Federation of Aerospace Industry executive president Luis Lizcano, Posco International CEO Lee Kye-in and Mexican Economy Minister Marcelo Ebrard pose for a photo at the Korea-Mexico Business Forum in Mexico City on Sept. 28.
KOREA AEROSPACE INDUSTRIES
Korea Aerospace Industries (KAI) is looking to Mexico as a base for its aircraft business in the Americas, signing a three-way agreement with the country's main aerospace industry association and Posco International.
KAI said Monday that it signed a memorandum of understanding on aerospace industry cooperation with the Federación Mexicana de la Industria Aeroespacial (Femia) and Posco International in Mexico. The signing took place during President Lee Jae Myung's state visit to the country.
KAI said the agreement follows Plan Mexico, the Mexican government's mid- to long-term economic development strategy, and aims to strengthen Mexico's aerospace ecosystem. Femia has more than 100 member companies and helps shape the government's aerospace industry policy and expand global supply chains.
Under the MOU, KAI will draw on its fixed-wing aircraft, rotorcraft, unmanned aerial vehicle, satellite, maintenance, repair and overhaul and aerostructures businesses to pursue local production, technology cooperation and supply chain localization with Mexican partners. The company said it plans to set up business models such as supply chain cooperation and look for more opportunities in Latin America.
Femia will connect KAI with Mexican industry stakeholders and public institutions, help identify vetted local partners and provide information on local policy. Posco International will use its global network to find new business opportunities and explore financing cooperation. The company said it plans to pursue supply chain partnerships and other business opportunities in Latin America.
KAI and Posco International signed a separate strategic agreement last October to enter the global aerospace market together by combining their capabilities.
KAI did not disclose financial terms or specific projects under the new agreement.
"This cooperation will contribute to the successful implementation of Plan Mexico, Mexico's national strategic industrial policy, and at the same time will be a significant turning point in establishing both countries as key partners in the aerospace industry," KAI CEO Kim Jong-chool said. "Using our cooperation with Mexico as a base, we will accelerate the FA-50's entry into Central America and expand our exports to the North and South American markets." The FA-50 is a light combat aircraft built by KAI.
BY KIM MIN-YOUNG [[email protected]]
