Welcome to GKN-Advanced
Composite Structures
November 7,2014
GKN plc
GKN has four operating divisions
GKN Aerospace
A leading Tier 1 supplier to the
global aviation industry focused on
aerostructures, engine systems and
products and specialty products.
Each division is a market leader,
outperforming its markets, giving
unrivalled expertise and experience in
delivering cutting-edge technology and
engineering to our global customers
GKN Driveline
A world leading supplier of
automotive driveline systems
and solutions, including
all-wheel drive.
2013 - Sales By Division ~ $12B
$164M
$1420M
GKN Powder Metallurgy
The world’s largest manufacturer of
sintered components,
predominantly to the automotive
sector.
$5,397M
$3,544M
GKN Land Systems
A leading supplier of technologydifferentiated power management
solutions and services to the
agricultural, construction, industrial
and mining sectors.
$1473M
2
GKN Aerospace – Executive Committee
Marcus Bryson
President &
Chief Executive Officer
Aerospace and Land Systems
Kevin Cummings
President & CEO
GKN Aerospace
Mike McCann
CEO Aerospace
Engine Systems
Daniele Cagnatel
President & CEO
Aerostructures
North America
Nick Waters
Chief Financial
Officer
Rich Oldfield
Technical
Director
Ernie Peake
SVP
Commercial
Charles Paterson
SVP Business
Development &
Strategy
Neil McManus
CEO
Aerospace
Europe
Andrew Harvey
SVP Human
Resources
Rob Soen
SVP
Supply Chain
Management
3
Tom Battaglia
SVP GKN
Aerospace NA
& GKN USA
Political Affairs
GKN Aerospace
$3.5 billion International Aerospace enterprise
12,000 people ▪ 35 sites ▪ 8 countries – One GKN
Daniele Cagnatel
GKN Aerospace
Aerostructures
North America
Neil McManus
GKN Aerospace
Europe and Special
Products Group
Mike McCann
Aerostructures North America
Europe & Special Products Group
Engine Systems
GKN Aerospace
Engine Systems
4
Kevin Cummings
CEO
GKN Aerospace
GKN Aerospace – Markets and Customers
Market
Business
Mix
Sector
Customer Base
5
GKN Aerospace – World class product portfolio
Aerostructures
Global
#3
WINGS & FUSELAGE
45% of Sales 2013
Engine structures
Global
#2
NACELLE & PYLON ENGINE SYSTEMS & SERVICES
50% of Sales 2013
Engine structures
B747-8 Exhaust
Special
Products
Global
#1/2
5% of Sales 2013
Transparencies and Protection
Systems
B787 Anti-icing System
A380 Fixed Trailing Edge
B767 Winglet
Engine rotatives
V22 Fuel Tanks
A400M Engine Intake
A350XWB Rear Spar
B787 Floor Grid
Full Engine MRO and support
J-UCAS Fuselage
Ariane 5 Exhaust nozzle
B787 Cabin Windows
F35 Canopy
6
GKN Technology – Targeted Innovation
Future product differentiation
Future wing
technologies
Advanced
fuselage
Nacelle, pylon
and exhaust
Engine
structures
Engine
rotatives
Next generation
composite processes
Advanced
metallic processes
Advanced process development
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Transparencies
and coatings
Ice protection
systems
GKN Aerostructures North America Leadership Team
8
GKN Aerostructures North America
Facility Overview
Bandy - CA
St. Louis - MO
 Hinge center
 Hard Metal Machining
 Small Machined Ti and Al
parts
 High Speed AL Machining
 Metal Bonding
 Composite Structures
ASTECH - CA
 Aircraft Subassembly
 Welded honeycomb
structures and fabrications
Monitor - NY
 FAA-145 repair station
 Titanium machining
technology leader
 High Speed Aluminum
Machining
Mexicali Composites
 Low cost composite center
Orangeburg - SC
 Aircraft subassembly
PreMac - KS
 Titanium machining &
aluminum wing skin
technology leader
 Aircraft Subassembly
Aerostructure
Design Centers
MO and AL
GKN Aerospace
North America
Headquarters TX
9
Tallassee - AL
 Integrated composite
structures & assemblies
GKN ACSOutlook
- Strategic
Outlook
Strategic
– GKN
ACS
GKN ALABAMA
Workforce of 962 employees
Key capabilities
Mid to Complex Composite Parts
Assembly structures with increased level of
automation
Development of Out of Autoclave structures (Engine
Components)
GKN COMPOSITES MEXICALI
Develop Engineering Composite Technology Center
(Panels, Engine Components, Rotorblades)
GKN SOUTH CAROLINA
Workforce growth to 300 employees
Workforce growth to 200 employees
Currently 65
Currently 77
Key capabilities
Key capabilities
Hand Laminates
Carbon/Kevlar/Glass Fabric
Components delivery to GKN AL
Leader in Composite
Structures for the
Aircraft and Engine
Markets
Manual Assembly, minimum
overhead
Large structures, equipment
integration
Business Jet Fuselages, Wings
OEM Floors, Nacelles, Cockpits
10
YTD ESH Status
YTD Av #
EE’s
YTD
LTAs
YTD
Lost
Days
YTD
OSHA
Rec
AFR
ASR
Accidents
DCS
Near Misses
DCS
TRR
Alabama
962
0
0
12
0
0
34
23
1.5
Oburg
65
0
0
1
0
0
4
2
0
Mexicali
77
0
0
0
0
0
6
3
0
Actual
1,104
0
0
13
0
0
44
26
1.5
ACS Targets
1,156
0
0
28
0
0
All
reported
All
reported
2.9
All sites achieved goals for thinkSAFE-Q4 in work; RADAR’s ongoing supporting process
Alabama: Utilizing DWB campaign/Juice event, significant reduction in medical cases, Enviroreduction in water due to cooling tower installation
Oburg: Completed 1st ESH peer audit-action plan in work, hired ESH Mgr, Targeting ISO/OHSAS
2015
MCS: Significant energy savings as a result of BPE for Autoclaves, Targeting ISO/OHSAS 2016
Improvement opportunities: Recycling, MRA Program, DoMore Program, Safety Corners
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Our ACS Safety Guidelines:
Eye and Footwear PPE
100% of Factory
Gloves and Hearing PPE
As applicable in designated areas
Stop, Look, Listen
100% of Factory
X
Use Pedestrian Doors
100% of Factory
12
GKN ACS - Leadership Team
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GKN-ACS Background
1985
1999
2007
2012
Tallassee, Alabama
site established
Montgomery, Alabama
site established
World’s 1st all composite
fan case developed
Extended value stream grows
into 2 new factories
GKN acquires
DOW-UT
1998
1985 – Tallassee, AL is established by
Sikorsky Aircraft to manufacture composite
details for the Blackhawk helicopter
1990 – United Technologies (Sikorsky and
Pratt & Whitney) form a joint venture with
Dow Chemicals
1998 – GKN Westland acquires Dow-UT
1999 – Montgomery, AL is established to
support the transition of assemblies from
Sikorsky, CT
Significant growth of
commercial projects
Hondajet development
awarded to GKN
2003
2008
2000-2002 – Business volume doubles with
the transfer of work from the UK including
Airbus and MRAS
2003 – The site incurs significant new
growth through Lockheed Martin and GE
2007 – GKN invests with GE on the worlds
first all composite fan case – GEnx
2008 – GKN develops a relationship with
Hondajet and is awarded the fuselage
development
2009 – To increase customer satisfaction,
the Tallassee operation is expanded and
the Montgomery facility is closed
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2010 – The Tallassee operation exceeds
1,000 employees
2012 – To support new business, 2 facilities
are opened: Mexicali, Mexico and
Orangeburg, South Carolina
2013 – GKN develops a relationship with
Bell Helicopter and is awarded
development work on the 525 Relentless
Alabama Growth
960
Employees
877
Employees
$228
Million
840
Employees
761
Employees
631
Employees
529
Employees
$68
Million
2003
500
Employees
$85
Million
2004
$170
Million
970
Employees
$230
Million
$276
Million
2013
2012
2010
$127
Million
$250
Million
$282
Million
$214
Million
$150
Million
2009
2008
2007
2005
980
Employees
980
Employees
2006
15
910
Employees
2011
GKN ACS - Market Segments and Key Platforms for Growth
GKN ALABAMA / MEXICALI
 Composite Engine
Components






GE 90 (B777)
GE CF6 (B767)
GE Genx-1B (B787)
P&W 4000/6000
Nacelle Cowlings
Blocker Doors
GKN ALABAMA / MEXICALI
GKN ALABAMA / SC
 Composite Structure Components  Assembly Structures
 Helicopter components and
assemblies
 Commercial Aircraft
 Wing Tips
 Fixed and Movable T/E
 Fixed and Movable L/E
 Fuselage
 Military Aircraft
 Rotor blades
 Integrated Assembly structures
(equipped, heater elements etc.)
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 Honda Fuselage
 Honda Wings
 Commercial Aircraft
Assemblies
 Floors
 Winglets
 Racks
 Center Wing Box
Customer Relationships
Customer Relationships
Strategic Objectives:
Key Strong Existing Relationships
Boeing Military
Airbus
Lockheed Martin
GE Aviation
Bell Helicopter
Pratt & Whitney
Hondajet
Sikorsky
Strategically Targeted
Spirit
Boeing Commercial
Bell
Expansion of content with key existing customers
Capture content with targeted customers
Improve customer balance to reduce market risk
& increase growth potential on the Commercial
Business
Military 2009 78% vs 2014 55 %
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GKN ACS - Core Competencies
Wing & Fuselage
Composite
Bonding and
Assemblies
Large
Composite
Structures
GKN ACS
Build to Print
Crew Door
&
Design and
Build
Engine
Components
Medium to
Large
Assemblies
Blades
18
GKN ACS - Core Competencies
Alabama Design Engineering center launch - 2013
Design and analysis and design for manufacture (DFM) for customers
Initial projects underway
19
GKN ACS - Alabama
Facility Highlights
 ~$280M 2013 sales
 ~1000 employees (non-union)
 Land to expand ~325 acres
 380,000 sq. ft. manufacturing floor
 95,000 sq. ft. clean room
Capabilities
 Lay-up and assembly moderate to highly complex
composite structure
 Product Design Center
 Tool Design and Manufacture
20
GKN ACS - Mexicali
Facility Highlights

80,000 sq. ft. facility, ~ 45,000 sq. ft.
occupied

12,000 sq. ft. clean room

125,000 gallons water reserve sprinkler
& fire hose protection system

2,000 KVA electric substation

7 loading docks and 2 large ramps for
oversize equipment
Equipment

Strategic Objectives
Autoclaves

 Low cost competitive supplier
10’ X 30’

 Provide offset support to OEM’s pursuit of Mexican

market
4’ X 11’

 Capacity enabler to Alabama / ANA

 Sikorsky components successfully transferred

 Qualification for GE underway
21
400⁰F, 100 PSI
Ultrasonic Ply Cutter

Product
500⁰F, 120 PSI
6’ x 10’ cutting bed plus 6’ x 10’
conveyor offload zone
Grieve oven

6’ x 8’ x 8’

500⁰F
GKN ACS - Orangeburg
Orangeburg, SC Facility
150,000 Sq. Ft.
22 Acre site
Dedicated site for assembly only
Production startup Aug 1, 2012
Products:
HondaJet Fuselage and subassemblies
Orangeburg
Facility
Honeywell engine fan duct assembly
787 Floor Beams
22
GKN ACS - Manufacturing Facilities
Clean rooms/ hand lay-up with Laser Ply Projection 95,000 sq. ft.
Ultrasonic cutting systems (4) for composite materials
(2) Gerber tables 60 ft long ;(1) Gerber table 45 ft long
(1) AGFM Ultrasonic Ply Cutter 10’ Long with conveyor offload zone
Autoclaves (10 each, largest is 15’ X 50’)
23
GKN ACS - Manufacturing Facilities
Two CNC Honeycomb machining
GFM single cut tables
CNC machining of parts
24
GKN ACS - Manufacturing Facilities
Quality Inspection Equipment
5-Axis Matec C-Scan Gantry System
Matec configured C-Scan 2-D Tank System
Meccasonics Submersion Ultrasonic Scan Tank
(4) Coordinate Measurement Machines
Fully Equipped M&P Laboratory
Calibration Laboratory
25
GKN Alabama - Quality Assurance
Full Quality Assurance Compliment
ISO 14001:2004 – OHSAS 18001:2008
Quality Certifications
First Article Inspection (FAI)
Non Destructive Inspection
ASNT Level III
Approvals
ISO9001:2008
AS9100 Rev C
NADCAP NDT
NADCAP Composites
NADCAP Chemical Processing (Paint)
United Technologies ASQR-01
Sikorsky Aircraft
Airbus, GE, Lockheed Martin
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Moving forward with the strategic agenda – GKN ACS
Lead in chosen markets
Composite parts and structures in aircraft are
forecasted to grow at CAGR 11.2%
GKN ACS well positioned to capture the
growth – cost competitive, motivated workforce
Leverage global footprint
South Carolina facility for Large Assemblies
Mexicali facility for low cost hand lay-up
Technology driving margin
Out of Autoclave technologies
Flexible manufacturing systems
Operational excellence
Sustain above market
growth
Lean Manufacturing system implemented
as the operational model
Increase Revenue stream by focussing on high
volume and future growth platforms
(787/NEO/737M)
27
GKN Advanced Composite Structures
It’s All About The People!!!
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The Lean Enterprise Model
GKN
Vision
(BPE)
(PrE)
(PE)
Common Language – With Focus Area’s