Aernnova, all-in-one aerospace solutions
Annual earnings of some 50 million USD make the Mexican operations of this Spanish-based aerospace company a major contributor to global sales.
"A comprehensive solution" is how Aernnova Mexico defines itself. This aerospace company currently rakes in as much as 50 million USD a year and its goal is to triple revenues within the next three years.
Aernnova has been around for less than a decade under its current trademark, although its roots can be traced back to Gamesa Aeronáutica, a Spanish multinational that was engaged in the aerospace sector since the 1980s and that also had a presence on the industrial and automotive markets, among others.
In 2006, we had the chance to do something different, so we went out on a limb with the incorporation of Aernnova, a completely new company," says Javier Pérez Alcaide, CEO of Aernnova's Mexican operations.
Aernnova designs, manufactures, and assembles aircraft structures and renders engineering services in the same sector. "Our core activities are the design and manufacture of aircraft and aircraft structures and the rendering of services for our customers," says Pérez.
In record time, the company began to expand beyond the borders of its native Spain, to the point where it now boasts eleven work centers in its home market, two plants in Mexico, one in Brazil, another in Rumania, and an engineering center in the US.
Why Mexico? According to Pérez, when Aernnova embarked on its internationalization process, it analyzed countries like India, Morocco and China, but in the end opted for Mexico due to the advantages it offered over other contenders.
"The main reason we chose Mexico was its location. It was the country that delivered the best balance between competitiveness and proximity to the customer. Most of our larger customers are in Canada and the US, and Mexico was an excellent base from which to expand the business," says Pérez.
Yet Mexico's strategic geographical location wasn't the only reason Aernnova came here. In addition to quality infrastructure and trained human resources, the company was attracted by a "stable economy closely linked to the dollar and with few surprises. Other parts of the world didn't offer that stability, the kind of stability that has enabled us to plan and act for the long term," says Pérez.
Aernnova's two Mexican plants are in Querétaro and together cover an area of 30,000 square meters and employ approximately 750 people. Mexico, says Pérez, is a special case within the consortium because it offers its customers comprehensive solutions. And it can do that precisely because it has two plants, one for the manufacture of large structures and another that makes metal components.
"We have complete control over the supply chain. The comprehensive services we offer give us a huge competitive edge and what is so unique about Aernnova is that we can design, manufacture and assemble structures and components, which greatly simplifies logistics for customers because it means they only have to negotiate with one supplier. In other words, we offer a tangible advantage," says Pérez.
Bombardier, Beechcraft, Sikorsky, Bell Helicopter, and Embraer are just some of the customers that have availed themselves of Aernnova's solutions.
Pérez sees a promising future for the company in Mexico. "Foreign companies have come to Mexico and the market is expected to post considerable growth in the years to come. The main challenge," he says, "will be to consolidate the supply chain."
In the short term, Aernnova plans to focus on strengthening its two production lines in Mexico and its goal is to end the year with earnings of 70 million USD.
"Three years from now, we aim to be generating revenues of approximately 150 million USD and haven't ruled out the possibility of taking up new initiatives with a view to expanding the business," concludes Pérez.