Boeing Launches Aircraft with Parts made in Georgia- Company's Financial Report
The Aircraft Parts Enterprise was opened in Tbilisi in 2018 with a $ 93-million investment, co-financed by the Georgian government-owned Partnership Fund and the Israeli technology company Elbit. The company was certified by Boeing in early 2019 and received the status of supplier of composite parts.
A few days ago, the company released its 2020 financial report. The document reveals that the value of the parts supplied by the company to the American giant in 2020 was $ 9 million, or GEL 28.2 million. For comparison, revenue in 2019 was GEL 12.2 million. According to the report, due to the pandemic, the production volume turned out to be smaller than planned, so the company ended 2020 with a loss of 13.2 million GEL.
The financial report states that by 2020, the company had produced a total of 325 units for Boeing. At the same time, it is indicated that due to the pandemic, the number of Boeing 787 orders decreased in 2020, which will have a negative impact on the financial income of the Georgian company. The strategic plan, which is based on the improved expectations from 2023, has also been changed.
"In 2020, the company was able to significantly increase sales, which was due to the full transition to mass production, and also with the launch of a new project (D640, Intercostals), the company was not able to make 2020 profitable, which was expected because such a level of sales can not fully cover costs. The slowdown in sales growth was in turn caused by the global pandemic (COVID-19).
Although revenue from sales increased significantly compared to 2019, the original sales plan envisaged sales of GEL 44.6 million and in fact, 63% of the plan was fulfilled.
The company is currently producing parts for the Boeing 787 Dreamliner. With $ 51.7 million in assets, the company employs 167 people, according to the report.
The cost of the Boeing 787 liner is $ 290 million, so the cost of the parts sold by the American giant's Georgian supplier is still quite small.