WCA September 2007

51 / 143

Wire & Cable ASIA – September/October 2007 49
From theamericas
Ms Johnsson of the Chicago Tribune (See above) observed
that that new reality, for Boeing, soon could mean facing
tough competition from Russia and China, with their
declared aerospace aspirations. A proactive Boeing has
already hired more than a thousand engineers in Russia, and
is helping a Russian manufacturer develop a regional jet.
But Boeing’s main overseas focus will probably continue
to be Japan, where the American plane maker already
dominates commercial jet sales. On 4th July the Tokyo
newspaper Asahi reported that Boeing may invest in a
project of Mitsubishi Heavy Industries Ltd to build Japan’s
first passenger jetliner.
The biggest machinery maker in Japan, Mitsubishi Heavy
is a key supplier for the Boeing 787 ‘Dreamliner’ scheduled
to enter service in May 2008, and a linchpin of Boeing’s
strategy of maintaining close ties with Japanese aircraft
parts manufacturers and airlines. Mitsubishi Heavy is
expected to make a decision on the jet’s commercial viability
by the end of its fiscal year next April. If it goes ahead,
production would begin in 2012.
China takes an end-run around the
US into the global commercial
satellite market
China would appear to have found a way to circumvent a US
effort to exclude it from the world’s elite space club, while
at the same time advancing its interests in another sphere.
Writing in the International Herald Tribune, Jim Yardley
observed that Beijing is trying to position itself as a space
benefactor to the developing world – the same countries,
in some instances, ‘whose natural resources China covets
here on Earth.’ (‘Blocked by US, China Finds Its Own Way
to Space,’ 23rd May)
An example cited is China’s launch, in May, of a
communications satellite for oil-rich Nigeria. Not only did
China design, build, and launch the satellite: the state-
owned Export-Import Bank of China also granted Nigeria
$200 million in preferential buyer’s credits (ie a loan) to help
toward the roughly $300 million price of the satellite.
A substantial financial package was a key requirement
when the African country put the project out for bidding.
Mr Yardley noted that China has also signed a satellite
contract with Venezuela, another major oil producer.
It moreover is developing an earth observation satellite
system with Bangladesh, Indonesia, Iran, Mongolia,
Pakistan, Peru, and Thailand. And, laying claim to the
prestige of leadership of the alternate space club, it has
organised a satellite association in Asia.
The Nigerian deal might be Beijing’s breakthrough into the
lucrative $100 billion commercial satellite industry. According
to Mr Yardley, Chinese engineers designed and constructed
the geostationary communications satellite Nigcomsat-1.
A Chinese state-owned aerospace company will monitor
the satellite from a ground station in northwestern China.
Great Wall Industry will also train Nigerian engineers to
operate a tracking station in Abuja, the capital. If successful,
the Nigerian satellite could undercut one US rationale
for excluding China from the Western-dominated space
industry: its uncertain technical mastery. Of course, from
the US standpoint the fact that most of China’s satellites
technologies are ‘dual use’ – for both civilian and military
applications – is another matter.
Even as China has participated in different projects with
Europe, Russia and Canada, the US has sought for nearly
a decade to isolate the Chinese space programme. Export
restrictions intended to block the illegal transfer of military
technology prohibit US technology from being used on
satellites launched in China. “The United States also has
blocked Beijing from participating in the international
space station,” Mr Yardley wrote. “[And] Chinese
scientists are often denied visas to attend important
space conferences held in the US.”
Of related interest . . .
A public opinion poll conducted by the Chicago
Council on Global Affairs and WorldPublicOpinion.
org, in conjunction with research centres around the
world, has found that a majority of citizens in eight of
14 countries surveyed (and a plurality in four) expect
China to catch up with the US economically – and
that they are comfortable with this. Majorities in most
countries said they would expect a positive or mixed
outcome from a Chinese ascendancy, with less than a
third of respondents saying it would be ‘mostly negative.’
The results of the poll, published on WorldTribune.com
(15th June), show that a majority of the American people
themselves perceive no danger in a Chinese economic
and military buildup.
Automotive
Honda comes to the rescue
of a dying US auto parts company
Even as much of the tool-and-die industry in the US
continues to decline, a small tool shop in Michigan is
flourishing after a return from near-death engineered by
Japanese auto maker Honda Motor. Only two years ago,
employee-owned Northwest Tool & Die had just taken a
$1 million loss on $10 million in revenues; it had $5 million
in bank debt, owed $1 million to vendors, and had filed for
bankruptcy. Now, after turning its affairs over to Honda – and
following its advice – Northwest is in very good shape indeed.
Having exited bankruptcy court in July 2006, it reported
$12.5 million in revenues and a 6% pre-tax profit margin for
the year. Honda accounts for 40% of that business, up from
20% before the bankruptcy. Northwest is aiming for sales
of $25 million and a 10% margin within two years. It has
won business from new customers, including big Ford and
Chrysler suppliers. Its workforce has gone from 46 to 74.
(‘A Savior from the East,’ Forbes, 4 th June)
As described by Forbes’s Joann Muller, Honda ‘took
Northwest under its wing,’ teaching it more efficient design
and manufacturing techniques while steering millions of
dollars in new business its way – even though its prices
were 50% higher than those of most Asian suppliers. Today,
the new production methods have brought Northwest’s tool
prices to within 15% of its low-cost Asian competitors.
❖
❖