ATC launches the production of composite aircraft components in Georgia

The Israeli-Georgian joint venture is to start producing and exporting parts in early 2019

A combination of Georgia’s liberal tax system, its geographic location, an attractive investment environment and existing free trade agreements with the EU as well as China, has allowed the country to develop a composite aircraft parts production capability, which it hopes will woo potential customers such as Airbus, Boeing and Bombardier.

Aero-Structure Technologies Cyclone (ATC), a joint venture between Israeli company Elbit Cyclone and Georgia’s Partnership Fund, has opened a production facility for composite aircraft parts, the first of its kind in the south Caucasian region.

The construction project, which was launched in September 2015, required an investment of US$93 million, Georgia’s Partnership Fund reports.

The facility, located outside Tbilisi International Airport, will be a centre of excellence for the manufacture of composite parts for commercial aircraft, including air-foils and doors, etc. The entire production output will be exported.

The launch of the production line is scheduled for early 2019, once the company completes certification of the facility. ATC Aero is confident that its eventual customer base will include leading aircraft original equipment manufacturers (OEMs), such as Boeing, Airbus and Bombardier.

At the official opening of the facility, Georgia’s Prime Minister Georgiy Kvirikashvili declared that the choice of Georgia as a location for it was defined by a combination of the country’s liberal taxation system, its favourable geographic location, attractive conditions for industry development and free trade agreements with all EU countries as well as China.

In turn, Partnership Fund’s executive director David Saganelidze pointed out that Georgia is able to offer competitive prices on its products due to favourable investment conditions in the country, whilst also adding that at least 90 per cent of the facility’s staff will be Georgian citizens. The company currently employs 80 personnel specifically trained in Israel.

The facility, which is expected to reach its full capacity within five years from production launch, is projecting that annual turnover will reach $60 million and the number of personnel will rise to 300.

Elbit Cyclone is a subsidiary of Elbit Systems, which is primarily known for the design and upgrade of defence-related products. It maintains connections with the global aircraft manufacturers.