Finmeccanica unit signs helicopter JV with Tata Sons

Italy’s biggest Aerospace and defense company Finmeccanica unit AgustaWestland signed a Memorandum of Understanding with India’s Tata Sons for the assembly of helicopters in India, the Italian company said on Thursday.

Finmeccanica’s AgustaWestland unit and Mumbai-based Tata will set up joint venture to assemble and deliver the AW119 Helicopters to customers worldwide. Till date 190 orders has been received by this joint organization. They are expected to deliver their first AW119 in 2011.

The joint venture will also supply Reconnaissance and surveillance helicopter program of the India Armed Forces for which AgustaWestland has already proposed the AW119 to be manufactured in India, the statement said.

In July 2008 India issued a request for proposals for 197 military light utility helicopters, of which 133 would be deployed by the army and 64 by the air force.

The request was sent to AgustaWestland, Bell Helicopter, Eurocopter, Kamov and Sikorsky. The new helicopters will replace 1970s-vintage Hindustan Aeronautics Chetak and Cheetah helicopters.

“Establishing an AW119 final assembly line in India will allow us to meet the growing demand in the world market for a modern, single-engine helicopter,” Giuseppe Orsi, AgustaWestland’s chief executive officer said in the statement. The tie-up will “further expand our presence in India, where we see strong future business opportunities.”

According to the Memorandum of Understanding, Tata will enjoy 74% of their venture.