Mahindra Aerostructures, Aernnova announce $300 mn multi-year contract

Mahindra Group and Spain's Aernnova Aerospace on Tuesday announced a multi-year contract valued at about USD 300 million (over Rs 2,585 crore) for the Indian entity's arm Mahindra Aerostructures Pvt Ltd to manufacture metal sub-assemblies and components for a range of Airbus and Embraer aircraft families.

The contract covers the supply to several Aernnova sites in Spain, the UK, Portugal and Brazil, further strengthening a collaboration that began in 2013, Mahindra and Aernnova said in a joint statement.

"This partnership with Mahindra will enable Aernnova to reinforce its supply base to secure production ramp-ups in our factories for all our programs, fulfilling our mission to deliver to our customers," Aernnova CEO Ricardo Chocarro said.

Under the "multi-year contract valued at approximately USD 300 million", Mahindra Aerostructures Pvt Ltd (MASPL) will manufacture metal sub-assemblies and components for a range of Airbus aircraft and also for Embraer aircraft families, including the Embraer C390 Millennium military transport aircraft, the statement said.

Commenting on the development, Mahindra Group CEO & MD Anish Shah said, "As we scale up our operations and make significant investments in our aerospace business, we look forward to enhancing this partnership and scaling new heights."  MASPL Managing Director and CEO Arvind Mehra said this contract builds significantly on the company's existing relationship with Aernnova's UK subsidiary and also opens up several opportunities to make in India.

Aernnova had supported MASPL in the early stages of its facility development in India, with strong contributions to the facility design and development, as well as for skilling and skill assessment, the statement said.

It stepped up to a new level when Aernnova acquired an existing customer of MASPL, Hamble Aerostructures (UK), from GE in 2020.