SPACE Systems COMPOSITES LIGHT SPORT AIRCRAFT AMPHIBIANS PARTS

Mihaly Hideg Chairman HAIF

www.haif.org

Overview of the Hungarian Aerospace IndustryResearch, product development, diversification, collaboration

December 2012

1. Introducing the Hungarian Aerospace Industry1. Introducing the Hungarian Aerospace Industry

Ministries, HITA, NIO, Authorities

Hungarian Government

Collaboration, research, product development, quality development are key to success

Product developm.

Applied research

Collaboration

Proposals

Strategy developm.Founding Founding

lobb

y

companies Univ. Dep., researchers

Col

labo

ratio

n

Pro

posa

ls

The operating model of the 21st century Aerospace industryThe operating model of the 21st century Aerospace industry

experts

Suppo

rting

2007

2006

2005

2004

2002

2001

1999

1999

Creation of HATP Hungarian Aerospace Technology Platform

Creation of HAC and HARP by Hungarian Aviation Industry Foundation

Corvus Aircraft ltd. introduced its first composite aircraft

HAIF launches the Aerospace Supplier Initiative

Establishment of LH Technik Budapest ltd. and Elektrometall ltd.

Halley ltd. introduces its first Apollo ultralight aircraft

GE Engine Services launches its greenfield sites

Greenfield sites by Hungaerotech ltd. and Flamespray ltd.

Six aeronautical managers establish HAIF 2003

The initial development was driven by part manufacturers and small aircraft developers

2009Corvus, Idea-Aircraft, Avana Industries, BHE ltd., Dioferr ltd., introduced new aircraft

Major milestones of industry developmentMajor milestones of industry development

Establishment of AEROPLEX a Lockheed Martin - MALÉV JV in Budapest for B737/B767 MRO 1992

2012

2011

2010

2010

Corvus signs a 16 mill. $ greenfield JV in China

Grand opening of EL-TECH Aerospace R&D Center in Budapest

2012

By the end of 2011, 30+ Hungarian companies got Aerospace AS9100 B certification

Major milestones of industry development – Major milestones of industry development – cont.cont.

Debut of Corvus Racer in Canada at Red Bull Air Race

Launching the National Aviation and Aeronautical Strategy

Opening of Diehl Aircabin Hungary composite plant

Debut of Corvus Fusion composite LSA

2012

Debut of Apolló Gyro at Aero 2012 exhibition in Germany 2012

2012Beginning of flight test of Hungarocopter

2012Collaboration agreement between HAC and Hungarian Ship Ind. Cluster

GEES VeresegyházGEES Veresegyház Lufthansa Techn. Lufthansa Techn.

BudapestBudapest Elektro-metall Paks Elektro-metall Paks Ltd.Ltd.

• Greenfield site – 100% GE• Repair activity• 15M$ middle size investm.• SME/Supplier category• Not airport dependent• Established in 2000 • Empl. 240 people• Engine component repair • FAA/JAA/AS9100 certified

• Greenfield JV site-15% Malév• Overhaul activity• 17 M$ middle size investm.• Integrator category• Airport location• Established in 2001 as a JV• Empl. 340 people• Airbus320/Boeing737overhaul• FAA/JAR-145 certified

• Greenfield site-100% German• Component manufacture• Small size investment <10m$• SME/Supplier category• Not airport dependent• Established in 2001• Empl. 200 people• Airbus wire harness manufact.• AS 9100 certified

Sulzer Sulzer Hungaero DebrecenHungaero Debrecen Alcoa-Köfém Alcoa-Köfém NemesvámosNemesvámos

Flame Spray Ltd. Flame Spray Ltd. GödöllőGödöllő

• Greenfield site-100% Dutch• Component manufacture• Small investment <10M$• SME/Supplier category• Not airport dependent• Established in 2002• Empl. 40 people• Turbine parts manufacture• AS 9100/NADCAP certified

• Privatizat./Acquis.-100% US• Component manufacture• Middle size investment ?M$• SME/Supplier category• Not airport dependent• Established in 1997/2002• Empl. 110 peolpe• Aerospace fastener manufact.• AS 9100 certified

• Greenfield site - 100% Italian• Thermal spray (APS, HVOF), slurry diffusion, honeycomb brazing• SME / Supplier category• Not airport dependent• Established in 2002• Employs 57 people• AS 9100/NADCAP certified

In 2012 Diehl Aircabin Hungary Llc. opened a new composite site in Nyírbátor

The small aircraft manufacturing sector is growing across the country…

Apollo FoxApollo Fox – Eger– Eger 1999 1999

Avana Larus-TökölAvana Larus-Tököl 2009 2009

5 seat full composite turbopr.

Corvus Corvus FusionFusion - 2012- 2012

2 seat full composite LSA UL certified in 6 countries

BHX -03 BHX -03 – Budapest– Budapest 2008 2008

Electric powered UAV

2 seat compos. amphibian

Hydropteron-MiskolcHydropteron-Miskolc 2009 2009 Corvus Racer 540 - 2010 Corvus Racer 540 - 2010

1 seat acrobatic aircraft

The Present The Present Design/Development 10Component manufacturing 15Small a/c manufacturing 5Parachute manufacturing 1Air Ballon manufacturing 1Maintenance/Overhaul 80 Training 4Consulting 2Parts sale 1Tools manufacturing 3Calibration 1Engineering 3HR services 2Modification 1Marketing 2Industrial organizations 3

Total 133 organizations, 2500 people with 30 companies with AS9100 cert.

In order to increase the number of component manufacturers HAIF launched the Aerospace Supplier Initiative Programme in December 2004. Mainly automotive and ICT component manufacturers were invited to the programme.

In March 2006 HAIF initiated and organized the establishment of

the Hungarian Aerospace Cluster. Now it has 25 membersIn 2008/09 HAIF launced an AS9100 Quality Mgmt program for 30+ SMEs, mainly members of HAC

2. Introducing the Hungarian Aerospace Cluster

2.1. Creation of the Hungarian Aerospace Cluster2.1. Creation of the Hungarian Aerospace Cluster

Organized by HAIF, founded in March 2006 by four small aircraft developer:

1. Corvus Aircraft Ltd. – UL & LSA manufacturer2. Halley Ltd. – UL manufacturer3. Composite One ltd.- amphibian design & prototype developer4. Hungarocopter Ltd. – small helicopter developer

Joined members:

1. Design & Engineering companies (7)Idea-Aircraft Ltd. – Amphibian design&prototype development

eCon Engineering Ltd. – Computer Aided (CAE) solutionsCAD -Terv Engineering Ltd. – Engineering services, Catia Delta -Tech Engineering Ltd. – Special tool&machine designMeshining Engineering Ltd. – CAE solutions

C3D Engineering Ltd. – 3D CAD design, virtual simulationsCFD Engineering Kft.- CAE services, virtual testing

HAC was established to provide an organizational framework for faster growth

2. Prototyping companies (2)Varinex Informatics Plc. – rapid prototypingTechnoplast Ltd. – rapid prototyping

3. Part manufacturing companies (11)Sulzer-Hungaerotech Ltd. - machiningDendrit Ltd. - machiningBorsodi Műhely Ltd. - machiningAvana Industries Ltd – composite partsProduktum Ltd. – aluminium standsOstorhazi Ltd. – special coatingsElektro-Metall Paks Ltd. – wire harnessesELTEC Hungary Ltd. – wire harnessesMacher Ltd. – wire harnessesGravitas 2000 Ltd. - machining ABF Bowdentechnika Ltd. – mechanical control cables

4. Software development & avionics (3)Allied-Visions Ltd. – flight simulator software developmentAviatronic Ltd. – avionics & embedded systemsARTIFEX Ltd. – training and simulation systems

2.2. Objectives of the Cluster2.2. Objectives of the Cluster

1. Speed up the development of the Hungarian Aerospace Industry2. Diversification of the best part manufacturers to aerospace3. Creation of a network of aerospace and related industries4. Development of new Hungarian designed small aerospace vehicles5. Organize the production of these vehicles internationally - JVs6. Organize and develop complementary capabilities among Hungarian firms

to be able to manufacture higher assemblies for large aircraft7. Achieve sinergies and economies of scale using networking in the fields

of design, development, training, logistics, quality (AS 9100), IT, marketing and certification

8. Introduction of modern management methods and principles to the SME sector – six sigma, lean manufacturing

9. Develop new supplier relationships with other countries10. Replace expensive foreign suppliers with local, low cost ones11. Increase the Hungarian participation in EU founded aerospace projects

2.3. Main Characteristics of the Cluster

• Organized on bottom up principle• Non-profit, not a legal entity but with formal membership• Led by 3 managers - 2 founders and HAIF chairman• Barter-type financing • 100 % privately owned -21 Hungarian SMEs and 5 foreign subsidiaries• 100 % SMEs – more than1000 employees• Focusing on product development• Good engineering background• Equipped with modern softwares – Catia, Solidworks, Ansys, etc.• Competences : composites, machining turbine parts, space avionics, CAE• Young, dynamic management• Supported by HAIF, NIO and HITA• Collaboration agreement with Pannon Automotive Cluster, Aviation Valley Poland and Hanse-Aerospace

Collaboration established with local automotive-, energy-, ICT, space industry

2.4. Main Partners

PANAC July 2006 Aviation Valley Sep 2006 Hanse Aerospace Sep 2006

HAC continually seeks international collaboration and partnerships

3. Creation of the Hungarian Aerospace Technology Platform

Founders:• 2 Universities (BUTE, ELTE) • 1 Research organization (KFKI AEKI,)• 4 Companies Bonn Hungary Ltd. SGF Ltd. BL Electronics Ltd. Slot Consulting Ltd.• Hungarian Aviation Industry Foundation

Members: 31

Created:November 2007

www.haif.org/HATP.html

3. Hungarian Aerospace Technology Platform – cont.

Objectives:

To provide organizational framework for Aerospace research in Hungary To close the gap between the EU and Hungary in Aerospace technologies To help the best research organizations to diversify into Aerospace To devise a national strategy for aerospace research To develop and test small aerospace vehicles To launch integrated research projects To participate in space missions, FP7 and Clean Sky research programmes To establish new R&D relationships with other countries

Rosetta incorporates several Hungarian ICT components…

The DABAS onboard system can also be adapted to other sport aircraft

• The system developed by SGF Ltd. measures and evaluates loads during flight

• After landing data can be downloaded into a PC for evaluation

• Numerical evaluation and graphical display is performed by the software developed by SGF Ltd.

• The system can also be used for health monitoring purposes

3.1. Main domestic R&D results3.1. Main domestic R&D results: :

The DABAS central onboard unit

The export of the BXAP 13 UAS begins at the end of 2011

Main features of the UAS developed byBHE Electronics Ltd.:

• high resolution videotransmission• optional infrared transmission• GPS navigation • route planning with 500 waypoints• real time mission modification• 3.15 m wingspan• Gross weight 7.5 kg• useful payload 3 kg (cameras)• speed: 50-140 km/h• max. flight endurance 1hr• civil and military version info:http://www.bhe-mw.eu/?page=rd

3.1. Main domestic R&D results (cont).3.1. Main domestic R&D results (cont).

3.2. Our main research participations in EU programs 3.2. Our main research participations in EU programs In FP7 framework program:In FP7 framework program:SINBAD: Safety improved by new functionality for better awareness on airport approach and departure traffic domain, BEARINGS: New generation of aeronautical bearings for extreme environmental constraints, X3-NOISE: Aircraft external noise research network and coordination, ADDSAFE: Advanced fault diagnosis for safer flight guidance and control,PPlane: Personal plane: assessment and validation of pioneering concepts for personal air transport systems, AEROPORTAL: Support for European aeronautical, SMEs, CEARES: Central European aeronautical research initiative EMBROIDERY - Development of energy efficient / lightweight composite parts and tooling based on Tailored Fibre Placement technology / self heating technologyGABRIEL - Integrated Ground and on-Board system for Support of the Aircraft Safe Take-off and LandingCHATT - Cryogenic Hypersonic Advanced Tank Technologies

In CleanSky program:In CleanSky program:BME Clean Sky 032: Resin, Laminate and Industrial Nanoparticles ApplicationBME Clean Sky 027 : Development of an innovative bio-based resin for aeronautical applications

4. Main focus areas of the National Aeronautical Strategy4. Main focus areas of the National Aeronautical Strategy:

• Development and manufacture of aircraft for General Aviation • Development of Unmanned Aerial Vehicles (UAV)• Development of systems and equipment for general aviation and UAVs• Development of space systems in cooperation with foreign partners• Manufacture of passenger cabin component and systems • Testing of components and systems for aerospace applications• Manufacture of composite parts• Manufacture of turbine parts • Software development and testing – embedded systems, simulation&training• Establish and ramp up collaboration between local and international clusters and platforms – HARP, HATP, Artemis Hungary ‘08, MMP‘08, EACP’09• Find JV partners to manufacture engines for GA in Hungary• Find a strategic „Mentor country” to start our own TAKE OFF program

We need to start a TAKE OFF program similar to the Austrian program

5. Establishment of a new electronics R&D center in Budapest

In July 2010 the ELTEC R&Đ center launched an Aerospace Incubation House for SMEs

Contact :

Mr. Mihaly HidegMr. Mihaly Hideg M.B.A. M.Sc.M.B.A. M.Sc.Chairman

Tel:+36 1 2941351Fax:+36 1 2941351

Mob:+36 30 3748145Email: hidegmihaly@gmail.com aerocluster@gmail.com

Web:www.haif.org

Attachments

The evolution of our industry led to the emergence of new modern vehicles

Apollo Fox was the first ultralight aircraft manufactured in Hungary - 1999

Corvus Racer 540 acrobatic aircraft debuted in Canada Windsor in June 2010

Corvus Fusion 2 seat composite LSA aircraft debuted at Aero 2012 in Germany

In April 2012 Corvus Hungary LLc. CEO Imre Katona has signed the JV agreement with theCAIB at Xi'an. Corvus China Composite Industries will be founded to build up a 10,000 sqm plant in Yanliang to manufacture composite airframes and later the assembly of the Corvus Fusion LSA.

Diehl Aircabin Hungary Ltd. opened a new composite site in Nyírbátor in 2012

The Apollo Gyro debuted at Aero 2012 Friedrichshafen in Germany

The BHX-03 electric powered UAV by Bonn Hungary Electronics

Prototype of the „Diora” coaxial-rotor 1 seat helicopter by Dioferr Ltd.

Flight testing of Hungarocopter started in 2012

Prototype of the „Hydropteron” composite amphibian by Idea-Aircraft Ltd.

Prototype of the „Avana Larus” composite amphibian by AVANA Industries

Hydropteron water tests started in the summer of 2009

Avana Larus flight testing starts – in the summer of 2013

Hydropteron flight tests started in November 2009

The two clusters together will develop the two amphibians further

Collaboration agreement between the two Hungarian ClustersCollaboration agreement between the two Hungarian Clusters

Cluster managers Sándor Götz and Mihaly Hideg signed the agreement in November 2012