Magellan sets up JV with QuEST

Magellan Aerospace, a Canada-based manufacturer and supplier of advanced aerospace systems and components, has formed a joint venture with QuEST, a Bangalore-based engineering services provider.

The new venture, which will be on equal partnership basis, is also soon going to set up an independent processing facility in the country to cater to the needs of the aerospace manufacturing industry.

Magellan, which had recorded a revenue of Canadian $600 million, has four processing facilities in the UK and Canada. The JV will help the company establish direct presence in India for the first time.

In the first phase, the JV is planning to invest $3 million in an independent processing facility, which will initially focus on manufacturing key aerostructure and aeroengine components in aluminum, titanium and stainless steel.

The new facility will be located at the special economic zone (SEZ) in Belgaum and will become fully operational by early 2008, Konrad Hahnelt, vice-president "� strategic global outsourcing, Magellan, said.

At present, Magellan has sub-contracting partnership with Cimtools and Maini Precision in India. Last year, the company had announced sourcing landing gear parts from QuEST. Hahnelt said the company would continue to work with the sub-contractors.

According to Aravind Melligeri, president and CEO, QuEST, the facility would have a scalable layout to support the future growth.

"The division will address a critical need of the aerospace manufacturing industry in India by providing solution for manufactured components to be processed within the country."

QuEST, which employs about 1,000 engineers in India, recorded a turnover of $25 million in fiscal 2005-06. In the current fiscal, the company is targeting to achieve a turnover of $40 million.