Austrian aerospace supplier FACC has expanded its collaboration with Indian company Kineco Aerospace. The agreement covers a second work package for the production of fiber composite components for aircraft manufactured by European aircraft manufacturer Airbus.
The components are produced at sites in India, with a volume of several thousand parts per year. Following the successful completion of a qualification milestone with Airbus, series production is scheduled to begin at the end of 2027. This initiative builds on a long-term agreement that both companies signed at the Paris Air Show in June 2025. With this step, FACC aims to geographically diversify its supply chain and establish manufacturing capacity on the growing Indian subcontinent.
Contractual basis and scope of the new agreement
The newly awarded work package encompasses the design and manufacture of highly complex composite components made from carbon fiber and glass fiber composites. These components are used in modern Airbus commercial aircraft, where material weight plays a crucial role in cost-effectiveness. The companies involved did not disclose the exact financial amount of the contract or the specific aircraft types involved in the announcement.
The cooperation is based on a partnership whose foundation was laid in June 2025 at the international air show in Le Bourget, near Paris. At that time, FACC and Kineco agreed on a long-term approach to their collaboration. A prerequisite for the current expansion of the order volume was the achievement of strictly defined quality and auditing criteria, which were reviewed and approved by the aircraft manufacturer Airbus together with FACC. Following the completion of this qualification phase, preparations for the production facilities are now beginning so that series production can commence as planned at the end of 2027.
Capacity building and the importance of the Indian market
For FACC, the group headquartered in Ried im Innkreis, Upper Austria, the cooperation with Kineco represents a building block within its global sourcing strategy. The company, majority-owned by the Chinese aerospace group AVIC, manufactures components for the fuselage, wings, and interiors of commercial aircraft. To meet the increasing production rates of major aircraft manufacturers and simultaneously counteract cost pressures in the supplier sector, FACC is increasingly focusing on partnerships in emerging markets.
In this context, India is developing into one of the key growth centers of global civil aviation. Alongside the massive aircraft orders from Indian airlines, the Indian government is increasingly demanding local value creation through industrial initiatives. Andreas Furthmayr, board member responsible for Aerostructures at FACC, emphasized that the development of manufacturing capacities in India is being carried out gradually and in cooperation with established local suppliers. The aim is to build technological expertise directly on-site, rather than simply engaging in contract manufacturing.
Kineco Aerospace's industrial role
Kineco Aerospace is a subsidiary of the Kineco Group, headquartered in the Indian state of Goa. The company specializes in the production of composite materials for the aerospace, defense, and rail industries. Through a joint venture, the Indian chemical and materials group Supreme Industries also holds a stake in Kineco, providing the manufacturer with access to extensive financial and technological resources.
Kineco Aerospace's Chief Operating Officer, SR Mukherjee, stated that securing the second Airbus work package underscores the company's capabilities in advanced composite technologies. For the Indian company, the contract represents a significant step in establishing itself as a long-term supplier within the network of global aircraft manufacturers. By expanding its production for FACC, Kineco is investing in state-of-the-art manufacturing technologies, automated composite layup systems, and quality control procedures that meet international aerospace standards.
Economic environment and supply chain challenges
The expansion of production to India comes at a time when the aerospace supply industry is under considerable pressure. Following supply chain disruptions in recent years, manufacturers such as Airbus and Boeing continue to struggle with shortages of raw materials, electronic components, and skilled workers. To meet ambitious ramp-up plans for the production of narrow-body aircraft like the Airbus A320neo family, primary system suppliers like FACC rely on securing their production base and creating flexible capacity.
Relocating production to India offers European companies cost advantages in the labor-intensive stages of composite processing. However, establishing new production facilities in emerging markets also carries risks. Delays in certification processes, lengthy customs clearance for specialty chemicals and resins, and logistical distances to Airbus's European final assembly lines in Toulouse and Hamburg necessitate precise supply chain management.
Outlook on the further development of the partnership
With production scheduled to start at the end of 2027, partners FACC and Kineco will have approximately one and a half years for the technical transfer, the development of specialized tools, and the training of operating personnel. The year 2026 will be dedicated to setting up the production lines and manufacturing test components, which will then undergo further testing.
Should the series production launch at the end of 2027 be successful, a later expansion of the scope of cooperation appears possible. Both FACC and Kineco have indicated their intention to further deepen the collaboration under favorable market conditions. The partnership exemplifies how European aerospace suppliers are restructuring their global value chains to meet the dual demands of cost optimization and capacity expansion.