Business for CONTRAVES : Contract sign between BHIC and RHEINMETALL AG

CONTRAVES AND RHEINMETALL TO MANUFACTURE AIRBUS ELECTRONICS IN MALAYSIA

Contraves Advanced Devices Sdn Bhd  (Contraves) and Rheinmetall Defence Electronics GmbH (RDE) of Germany have entered into an agreement for the manufacture of Airbus A400M Cargo Loading System electronic subassemblies. The agreement includes a comprehensive technology transfer program and investment in new state of the art facilities for aerospace electronics manufacturing.

In the first phase of the project Contraves will establish a dedicated facility in Malaysia for the manufacture of aerospace electronics to ISO 9100 standards, and will undertake a vendor development program with local SMEs for the manufacture of housing and mechanical components. The second phase will deliver 180 production shipments for confirmed European customers with associated spares. Subsequent phases are planned for expected new A400M aircraft orders, to expand the scope to include the manufacturing of Airbus A330 and A380 aircraft electronics subassemblies, and to establish a regionally oriented MRO for aircraft cargo loading systems.

The value of the initial two phases of the project will likely to exceed RM100m, and if all options are exercised the value of the subsequent phases will exceed RM500m over ten years.

RDE is part of Rheinmetall Defence and is one of Germany's leading defence technology companies for surveillance, fire control and command systems, guided weapon platforms, training and simulation systems, UAVs, and aircraft systems. It is a Tier 1 supplier to Airbus for the design and supply of aircraft cargo loading systems. Rheinmetall AG is an MDAX company listed on the German Stock Exchange.

Contraves is a joint venture company between Boustead Heavy Industries Corporation Berhad and Rheinmetall Defence. The JV Agreement envisages the development of Contraves from an industrial electronics manufacturer to a diversified, high value manufacturer and integrator of aerospace and defence electronics. These aims are consistent with Malaysia's Economic Transformation Program.