Aerospace industry in Latin America

For 50 years, Frisa has faced various challenges that have marked the history of the Monterrey company, to be more competitive and achieve a presence in practically the entire world.

The internationalization of the company, the diversification of the market and the integration of different capacities have been some of the most important milestones that the company has had over the years, as explained by Erick González, director of Supply Chain and New Business Development at Frisa, at the conference “Frisa: Forging a success story.”

Frisa was founded 50 years ago and one of its great challenges was to internationalize the company, so if it wanted to reach more countries and markets, it had to focus on the quality of its products in order to export them. However, in Mexico in the 80s this issue was not yet relevant.

“Mexico had a closed economy, quite complicated, possibly the issue of quality was not so well known within the productive aspects of Mexico.

“When we went international, we saw quality specifications that we had not seen before. So, really, even though they were unknown, we had to adapt to the needs of the clients that existed internationally,” said González, within the framework of the Aerospace and Advanced Manufacturing Congress “Altitude,” organized by Monterrey Aerocluster and the Aerospace Society (SAERO) of the Tecnológico de Monterrey.

Another of the milestones that has been a key point for the company to have greater stability is the diversification and segmentation of markets.

“The first product that Frisa made was the blades for forklifts, and that was the flagship product for several years. Later, Frisa bought new equipment, equipment with more capacity, presses, and when the press was purchased, it came with a bending machine,” he said.

The company has a presence not only in the aerospace sector, but also in the oil, industrial, heavy machinery and more.

And the last milestone that the exhibitor highlighted was the vertical and horizontal integration of the process, which has led the company to increase its offering according to the needs of its clients and those of the market.

“And sometimes the way to grow is how we sell different products to those same clients. We don't necessarily have to look for a new market, but rather what else we can offer our clients,” he explained.

The company melts its own steel to make forged rings, forged blocks, among others, and currently has nearly 3,000 employees.

In 2003, Frisa installed its plant aimed at the aerospace industry in Santa Catarina, Nuevo León. Frisa Aerospace is a leader in the manufacture of components for aircraft engines and has the capacity to forge up to 25 tons of steel.

“Growth was very slow, but 40% of the company's sales are from the aerospace sector.

“Practically, the Frisa Aerospace component is in every aircraft engine,” he added.

Currently, 68% of the company's production goes to the North American market (United States and Canada), Europe and a high percentage to Asia.

Frisa's client portfolio includes General Electric, Siemens, Pratt and Whitney, Rolls-Royce, Kawasaki, Caterpillar, John Deere, among others.

"Perhaps in the future we will be able to assemble more abundant components within the industrial space network," he said.

ATG Additive Manufacturing was founded by four businessmen from Guanajuato, all directors of companies dedicated to the aerospace sector in the state. Mexico Industry had an exclusive interview with Carlos Alastair, general director of this company.

This company specializes in the design, development and manufacturing of parts with additive manufacturing (AM) of metals through the PBF-L (Powder Bed Fusion by Laser) process, also known as DMLS or SLM.

With this technology, highly complex and high-performance parts can be manufactured. The company has three divisions:

Molds, dies and tooling,
Aeronautical and aerospace and
Medical.

Multidisciplinary talent

“We are dedicated to the design, development, simulation and manufacturing of complex parts for different sectors in terms of additive manufacturing of metals, it is known as Powder Bed Fusion by Laser or many people colloquially know it as 3D metal printing. We have a multidisciplinary talent group, we have aeronautical engineers, mechanics, physicists, among others,” said Alastair.

“In the aerospace field we are working with several companies, we are collaborating to be able to apply this technology in applications of aircraft interiors, such as seats, which are components that are not very critical and for which we have identified many areas of opportunity,” he added.

And he continued: “In addition, we are also working hand in hand with the academy, through an initiative with which we can provide them with our technology and thus, they can exploit their potential,” the executive shares.

Three business units

ATG Additive is the first company in Guanajuato that is dedicated to additive manufacturing through the use of metals, currently operating with three business units, such as design focused on new technologies, product development, component manufacturing, among others.

NUEVO LEON - The Monterrey-based company Frisa will invest US$200 million to increase the capacity of its plants located in the municipalities of Garcia and Santa Catarina, said Eduardo Garza T Junco, president of the company.

He indicated that these resources will be used basically to develop special steel and aerospace products, so the capacity of the forging and aerospace plants will be increased.

"We are taking advantage of the growth we are seeing in the North American region, and we are going to increase production in the aeronautical sector and develop markets for special export steels," he said in an interview at Expo Pyme 2023.

Regarding the supply to Elon Musk's company Space X, Garza T emphasized that it was a relationship that started very technically in a process that took a year and a half, but today Frisa is the main supplier of products for engines that go under the launch rocket.

"Every time there is a Space X launch, there is a product made in Santa Catarina," emphasized the executive.

When questioned about Frisa's relationship with the automotive industry, he commented that they participate indirectly by supplying the tools used by the automotive manufacturing companies.

"Frisa exports to around 60 countries, has a workforce of 3,100 employees and with the growth it expects to experience, it would be close to 4,000 jobs," said the executive.
 
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@E-195 I have always wondered why couldn't South American countries take up the cream of the manufacturing and IT outsourcing work that goes to Asia. I work with Devs from Brazil and they are as good as any and from your post it looks like the South American countries have a pretty solid manufacturing and designing base.

It would be so much easier to get work done in South American countries due to their proximity and shared culture with the USA. Hell, it will also be easier for EU to outsource their manufacturing there..

Is it all due to the political instability & cartels or is there some other reason ?
 
@E-195 I have always wondered why couldn't South American countries take up the cream of the manufacturing and IT outsourcing work that goes to Asia. I work with Devs from Brazil and they are as good as any and from your post it looks like the South American countries have a pretty solid manufacturing and designing base.

It would be so much easier to get work done in South American countries due to their proximity and shared culture with the USA. Hell, it will also be easier for EU to outsource their manufacturing there..

Is it all due to the political instability & cartels or is there some other reason ?
Well to put it short, transnationals and multinational coorporations are everywhere, investment in India or China will not stop, the difference is for some technologies is safer to invest in Latin America, Safran and GE will assemble the Leap engine from 2026 in Mexico.

Why Mexico? first because Mexico does not ask tech transfers as China does for example.
In aerospace the USA is a big invester in Mexico same France

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Brazil already has a large aerospace industry, Argentina and Colombia they also have aerospace industries of considerable size, however in terms of Market India and China continue being important markets.

Drug dealers are a small factor in aerospace Industry, they only affect agriculture or crime activities and definitively they can not affect the industries, aerospace industries need smart people, skilled and with high quality in their craft, so I doubt drug dealers affect it.

Mexican or Colombian drug dealers are exaggerated in terms of their influence, drug dealers only affect the agriculture, the weapons industry (guns) small drones, but in terms of purchases they are customers since they buy light aircraft and drones, but the industry is no depedant on them.

United States
According to Business Airport International, there are nearly 15.000 private jets in the US, approximately 67% of all private jets worldwide. What a number! The US is home to some of the world’s richest business executives and celebrities.
The State of Texas had the highest number of 1.651 private jets registered last year. Coming in second place is Florida with 1.619 private jets. California with 1.431, New York with 487 and Georgia with 439 private jets.

Brazil
Second place goes to Brazil with over 775 private jets and another 2.000 business aircraft, including turboprops. Brazil is also the home of the world’s third-largest airplane manufacturer, Embraer.

Mexico
A country with a population of almost 130 million sits in third place with nearly 1.000 private jets aircraft registered in 2019, alongside 459 turboprops and six executive aircraft. Private aviation market in Mexico is steadily growing.

Canada
Neighbor country of the United States with an estimated 532 private jets registered across its provinces, alongside 790 turboprops and ten executive aircraft. Its geographical condition makes bush planes a common transportation mode for their citizens’ mobility, like the arctic conditions in some of its cities and remote places.

German
There are around 496 jets and 284 turboprop aircraft making German as the most private jets registered in Europe and fifth in the world. This represents approximately 2,2% of the total private jet industry worldwide.
 
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Well to put it short, transnationals and multinational coorporations are everywhere, investment in India or China will not stop, the difference is for some technologies is safer to invest in Latin America, Safran and GE will assemble the Leap engine from 2026 in Mexico.

Why Mexico? first because Mexico does not ask tech transfers as China does for example.
In aerospace the USA is a big invester in Mexico same France

View attachment 5713


Brazil already has a large aerospace industry, Argentina and Colombia they also have aerospace industries of considerable size, however in terms of Market India and China continue being important markets.

Drug dealers are a small factor in aerospace Industry, they only affect agriculture or crime activities and definitively they can not affect the industries, aerospace industries need smart people, skilled and with high quality in their craft, so I doubt drug dealers affect it.

Mexican or Colombian drug dealers are exaggerated in terms of their influence, drug dealers only affect the agriculture, the weapons industry (guns) small drones, but in terms of purchases they are customers since they buy light aircraft and drones, but the industry is no depedant on them.

United States
According to Business Airport International, there are nearly 15.000 private jets in the US, approximately 67% of all private jets worldwide. What a number! The US is home to some of the world’s richest business executives and celebrities.
The State of Texas had the highest number of 1.651 private jets registered last year. Coming in second place is Florida with 1.619 private jets. California with 1.431, New York with 487 and Georgia with 439 private jets.

Brazil
Second place goes to Brazil with over 775 private jets and another 2.000 business aircraft, including turboprops. Brazil is also the home of the world’s third-largest airplane manufacturer, Embraer.

Mexico
A country with a population of almost 130 million sits in third place with nearly 1.000 private jets aircraft registered in 2019, alongside 459 turboprops and six executive aircraft. Private aviation market in Mexico is steadily growing.

Canada
Neighbor country of the United States with an estimated 532 private jets registered across its provinces, alongside 790 turboprops and ten executive aircraft. Its geographical condition makes bush planes a common transportation mode for their citizens’ mobility, like the arctic conditions in some of its cities and remote places.

German
There are around 496 jets and 284 turboprop aircraft making German as the most private jets registered in Europe and fifth in the world. This represents approximately 2,2% of the total private jet industry worldwide.
Thank you for taking the time to explain. Can you expand on why you think the level of general manufacturing and IT outsourcing did not come to SA countries when they made it to as far off places like Vietnam and Philippines.
 
Thank you for taking the time to explain. Can you expand on why you think the level of general manufacturing and IT outsourcing did not come to SA countries when they made it to as far off places like Vietnam and Philippines.
This thread is for aerospace news and technology from Latin America so I will reply you and if you want to continue go to the economics thread about latin america.

My first point is technology is not exclusive to some nations, thus to say IT does not exist in any country well is not real.

All nations now have development.

Now Multinationals do not care about the nation state, they care about profits.

and third is population size will reflect economic size.

Latin America is around 656 million people but Brazil and Mexico are 350 million people around 55% of the total of Latin America`s population.
Argentina and Colombia have populations of 44-54 million people size so you add them and Brazil, Mexico, Argentina and Colombia are around 70% of the population of Latin america.

Now in Mexico Intel designs computer Chips and many companies do have production of semiconductors ranging from transnationals to domestic.

Costa Rica has a considerable IT industry but Costa rica is a tiny country less than 6 million people, most latin american countries have populations ranging from 5-25 million people.

So to answer you simple there is development like any where else but since Vietnam and the Philipines are as Large as Mexico in population or close to Mexico; China and India are several times Brazil obviously Costa rica will not appear as a developed economy nor as a industrial power or export power.

Do we have poverty? of course no nation is paradise, and some tiny nations in central america suffer more poverty.

So if you look for economic development and Industrial development in Latin America you will need to focus in 5 countries mainly, Brazil, Mexico, Argentina, Colombia and Chile, the rest are countries that eventually will be absorbed by the 5 countries i first mentioned.
 
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In 2023, Colombia increased its non-mining exports to Mexico, China and Costa Rica
Two men, in a mechanic's shop, fixing a car.
Caption: Sales to Mexico were driven by the vehicle sector. US$189.6 million were exported there, an increase of 181.2%.
The vehicle sector boosted exports to Mexico. On the other hand, non-mining sales to China gained market share.
Among the top 17 main destinations for Colombian exports of non-mining energy goods, Mexico, China and Costa Rica stood out in 2023 as the three markets, in addition to Venezuela, to which this type of sales increased.

To these three markets, the country shipped US$1,954.9 million in agricultural, agroindustrial and industrial products last year, for an increase of 10.8% compared to 2022. These three markets represented 9.8% of the Colombian non-mining energy pie, in value.

Now, in volume, exports to these three destinations reached 645,684.9 tons, which represents a growth of 17.3% compared to 2022.

In the joint pie, the vehicle sector was the one that drove these sales. In the year that just ended, exports of this kind of goods to the three countries totaled US$190.6 million, which represents an increase of 178.5% compared to those of 2022. However, it should be noted that 99.5% of these vehicles were sold to Mexico.

Another product that boosted sales to these countries was unroasted coffee. In the year of analysis, exports of the grain totaled US$151.6 million, which translated into a growth of 59.7%. However, 90.5% of the grain was shipped to China.

Other soybean oils also helped push the result to these countries. The export of this product totaled US$56.2 million, an increase of 22.9% compared to 2022.

Freeze-dried coffee also stood out, with sales to Mexico, China and Costa Rica reaching US$54.6 million, with an increase of 11.8%.

They grew the most to Mexico

Of the three destinations to which this type of export grew, it was to Mexico where non-mining sales increased the most. There they reached US$1,185 million, for a positive variation of 12.5% compared to 2022, driven by car exports (US$189.6 million) that grew 181.2%.

Several factors boosted Colombian car exports to this country. According to an analysis by the Ministry of Commerce, Industry and Tourism, based on information from Mexican organizations, in 2023 there was a growing demand in that market for vehicles, especially for multi-use vans, which are the ones Colombia sells to China.

To China, the country shipped US$440 million in non-mining exports in 2023 for an increase of 8.4% compared to 2022. Other unroasted coffees helped boost these sales, registering an increase of 75%.

It should be noted that today this market represents 2.2% of Colombia's non-mining basket.

And in 2023, a total of US$329.8 million was exported to Costa Rica, which translated into a growth of 7.8%. Sales were driven by the airplane and other aircraft sector, since from not exporting in 2022, US$21.2 million worth of this type of merchandise was sold last year.
This was followed by perfumes and toilet waters, of which US$6.4 million were exported for a growth of 20.9%.

 
QUERETARO - German aircraft parts manufacturer Diehl Aviation announced that it has begun construction of a plant in Mexico, which will represent an investment of at least US$45 million, and from which it expects to supply its products to the main global aeronautical firms.

The factory, located in an industrial park in the city of Queretaro, will initially have more than 8,200 square meters of production and office space, which will be expanded by between 4,000 and 6,000 square meters, said the firm in a statement.

The new site will start production in 2025 and is expected to employ around 500 people in the medium term. The first product to be manufactured will be extra-wide trunks for the Airbus A220, which is assembled in Quebec (Canada) and Alabama (USA).

The new location in Mexico will allow Diehl Aviation to strengthen its cooperation with important customers such as Airbus, Boeing, Bombardier, Embraer and major local airlines. The United States is an important growth market for the company,” the statement said.

The construction of the plant was announced in July at the Farnborough (UK) aerospace fair by the governor of Querétaro, Mauricio Kuri, who at the time estimated the investment at US$45.7 million.



Gulfstream Aerospace has announced a MX$370 million (US$19 million) investment to build a new manufacturing plant in Mexicali, Baja California. The new facility will cover over 50,163 square meters and is projected to create 1,500 new jobs. Currently, Gulfstream operates its largest plant outside its headquarters in Mexicali, where it employs over 5,000 people.

The announcement was made during a meeting attended by key figures including John Ortega, Vice President of Gulfstream; Mark Bennet, Global Director of Institutional Relations at Gulfstream; and Kurt Honold Morales, Minister of Economy and Innovation for Baja California. Their presence underscored the collaborative effort between Gulfstream and the local government to advance this project.

“Gulfstream’s expansion in Mexicali marks a significant milestone for our operations in the region. We are excited about the new opportunities this investment will create and are eager to further contribute to the local economy,” said John Ortega, Vice President, Gulfstream.

“This new facility will enhance our production capabilities and reinforce our commitment to Mexicali and the broader Baja California region,” added Mark Bennet, Global Director of Institutional Relations, Gulfstream.

 
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Embraer announced the sale of up to six A-29 Super Tucano aircraft to the Uruguayan Air Force (FAU). The contract is part of a fleet renewal program to expand its operational capacity.

It also provides for the acquisition of five additional units, with deliveries scheduled from 2025, including mission equipment, integrated logistics services and a flight simulator.

With this order, Uruguay becomes the sixth nation to operate the A-29 Super Tucano in South America, along with Brazil, Chile, Colombia, Ecuador and Paraguay.

 
Akaer and FAdeA sign strategic partnership for innovation in the aerospace sector
Ricardo Fan
August 15, 2024
Aviation, Brazil - Argentina
Akaer and FAdeA sign strategic partnership for innovation in the aerospace sector
Akaer, a global leader in aerospace and defense solutions, and FAdeA, an Argentine company specializing in aeronautical products, have signed a collaboration agreement to explore new opportunities in joint projects, ranging from the development of advanced technologies to the production of aerostructures and cutting-edge engineering services.

The agreement, signed under a Memorandum of Understanding (MoU), establishes as its main focus cooperation in strategic projects such as the joint development of new manufacturing technologies and assemblies of structural parts and aeronautical subassemblies, including automation systems and robots.

The strategic collaboration also includes the development of engineering services aimed at modifications, conversions and upgrades of civil and military aircraft.

“The combination of forces between Akaer and FAdeA represents a strategic alliance that has the potential to generate significant technological advances and strengthen the competitiveness of both companies in the international market,” stated Akaer CEO Cesar Silva.

Basis of the agreement

Through this agreement, Akaer and FAdeA agree to combine their skills and resources to develop joint projects.

Akaer will take on product development, final assembly and interaction with customers, while FAdeA will focus on manufacturing parts and subassemblies.

Akaer will also develop engineering services that can be performed by FAdeA at its facilities, expanding the technical capabilities of both companies.

The companies also plan to collaborate in the training of specialized workers in engineering and mechanics, ensuring the strengthening and expansion of their technical teams.

“Akaer is confident in the potential of this partnership, which will certainly contribute to the sustainable growth of both companies, leveraging our experience and capacity for innovation,” highlighted Cesar Silva.

About FAdeA

Founded in 1927, Fábrica Argentina de Aviones (FAdeA) is one of the oldest aircraft companies in Latin America.

Located in Córdoba, FAdeA specializes in the production, maintenance and modernization of military and civil aircraft.

Throughout its almost 100-year history, the company has distinguished itself by manufacturing iconic aircraft, such as the Pampa III.

With approximately 750 employees, FAdeA plays a strategic role in Argentina's defense sector, also contributing to the export of aeronautical technologies.

About Akaer

With 32 years of experience, Akaer is an international reference in cutting-edge engineering for the Defense and Aerospace sectors.

It has actively participated in more than 50 world-renowned aircraft projects, such as the KC-390 freighter, the Gripen E fighter and the Hürjet supersonic jet.

Earlier this year, it became the first Brazilian company in the aerospace sector to qualify as a Tier 1 Global Supplier thanks to an innovative contract with the German company Deutsche Aircraft to manufacture the front fuselage of the sustainable D328eco aircraft.

Akaer is based in São José dos Campos (SP) and has sales offices in Portugal and Turkey.

 
Indeed Embraer is indeed game changer or a disrupted but unfortunately victim of geopolitics.
I would have loved if India would have brought it under mta program.
the past is written the future not perhaps later you will have a partnership
 
New Delhi, India – A delegation of Embraer executives is concluding a visit to India, which was undertaken with the objective of evaluating the possibility of expanding its supply chain in the country. Embraer is evaluating potential suppliers in its defense, commercial aviation and executive aviation businesses in areas such as aerostructures, machining, forging and casting, metal forming, composites, wiring, hardware and software development. The visit is part of the deepening of relations between Brazil and India.

“India has a robust aviation and defense industry and we see great possibilities for Indian manufacturers and systems developers to become suppliers to Embraer,” said Roberto Chaves, Embraer’s Executive Vice President of Global Purchasing and Supply. “We share a common vision of elevating the aeronautical capabilities of Brazil and India to higher levels and, thus, adding value to our customers worldwide.”

India is a strategic market for Embraer in all its business segments. Embraer’s presence in the country exceeds 44 aircraft and includes customers from Commercial Aviation, Executive Aviation, and Defense & Security. In addition, the Indian government and the Indian Air Force operate, respectively, a fleet of five Embraer VIP jets and three EMB 145 AEW “Netra” military aircraft.

A key future opportunity for Embraer in India is the competition in the Indian Air Force’s Medium Transport Aircraft (MTA) Program, where Embraer is well-positioned to offer the C-390 Millennium, the best and most modern transport aircraft in its class, in partnership with Mahindra, a respected player in the industry. The two companies announced a partnership in February 2024.

Embraer sees India as a key partner in the region and expects to implement an extensive local supply chain program in partnership with Mahindra. The initiative may include a C-390 production line in India, once the aircraft is selected under the MTA Program. Combined with a long-term local support program offering, Embraer and Mahindra aim to meet the expectations of the Indian government’s “Make in India” initiative.

 

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