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American Eurocopter’s New Facility Broadens
EADS North America’s Presence in the U.S.

October 20, 2004

EADS North America today formally opened its first new industrial site since the company’s establishment two years ago, marking a major new step in its strategy to further expand the U.S. presence through investment in facilities and the in-sourcing of jobs.

The new facility, located in Columbus, Mississippi, is a manufacturing and helicopter production center for American Eurocopter – an EADS North America business unit and the U.S. affiliate of EADS Eurocopter, the world’s largest rotary-wing manufacturer.

The new Mississippi facility will have a key role in the business development of Eurocopter in the United States and abroad.

The new Mississippi facility will have a key role in the business development of Eurocopter in the United States and abroad.

© EADS

“This is the most significant event in the history of EADS North America,” said EADS North America CEO Ralph D. Crosby, Jr. in a speech at today’s opening ceremonies. “This is a symbol that reflects our dedication to building our presence in America. We are investing in facilities, and also are investing in the future of our work force.”

American Eurocopter’s new Mississippi site is an 85,500-sq.-ft. plant that has responsibility for the manufacturing, assembly and customization of Eurocopter aircraft. It currently employs 44 persons, with most of the new employees hired locally from the Golden Triangle region of Mississippi in which the facility is located.   Employment is to reach 100 by the end of 2005, with further growth possible in future years as American Eurocopter continues to expand its share of the U.S. rotary-wing marketplace.

Crosby said the facility is to play an important role in the business development of American Eurocopter and Eurocopter, both in the United States and worldwide. It will be the primary center for outfitting and completion of helicopters sold to U.S. local and federal government agencies and for homeland security missions.   Accordingly, it will handle the assembly of all 55 EC 120 helicopters recently ordered by the Department of Homeland Security (DHS) for the U.S. Customs and Border Protection Agency. The first EC 120 for this important contract is taking shape at the Mississippi facility.

In addition, Mississippi will be the home to an assembly line for the popular AS 350 AStar single-engine helicopter.   AStars have been completed at American Eurocopter’s Grand Prairie, Texas, headquarters facility since 1979. The completion of AStars will continue at Grand Prairie, with Mississippi providing additional capacity, while also building parts for the helicopters.

The manufacture of major airframe assemblies for AS 350B2/B3 helicopters already is underway at the new Mississippi site, where an advanced production center has been set up. The Mississippi facility will use new technology in the manufacture of sheet metal parts from raw materials, employing production machinery that includes a fluid-cell hydraulic forming press and a water-jet cutter for stainless steel, aluminum and titanium.

In addition, the Mississippi facility will become a worldwide center of excellence for Eurocopter’s re-engining and modernization work on the global fleet of AS 365 Dauphin helicopters. The American Eurocopter Grand Prairie facility already has performed the re-engining/conversion process on Maryland State Police AS 365 Dauphins, upgrading them from the N1 version to the increased-performance N3 version. The first such conversion at the new Mississippi facility is now being completed on an AS 365 N1 from Pennsylvania’s Hershey Medical Center.

At today’s inauguration ceremonies, EADS Chief Executive Officer Philippe Camus said creation of the new American Eurocopter Mississippi facility represents the key principles of EADS’ business philosophy – the first of which is to deliver the best products and services for customers in the Department of Defense, Department of Homeland Security, the U.S. Coast Guard and U.S. Border Patrol, as well as for state and local law enforcement agencies throughout the country.

The second principle is freedom of choice in the American marketplace, Camus explained. “America is the land and home of freedom and free enterprise,” he said. Our presence here in Mississippi is consistent with the greatness of America. It is our mission in America to build products that present a strong combination of value and performance for the American market.”

He concluded by underscoring EADS’ commitment to being a good “corporate citizen” in the U.S. “When we first broke ground on this facility last year, I stressed we were here to build jobs and communities,” he added. “Now we are delivering. At a time when many companies in the aerospace industry are moving jobs outside the U.S., we are bringing new work into the country. I am very proud to say that – from our standpoint – the U.S. is the best place to make a home.”

Camus also announced at Mississippi that American Eurocopter has signed a contract to provide re-engining kits for 95 U.S. Coast Guard HH-65 Dolphin helicopters. The initial amount release against this contact is $22 million, and the re-engining will significantly improve the Coast Guard’s operational capabilities.

Joining EADS and Eurocopter officials at today’s ceremonies were Mississippi Governor Haley Barbour, Congressman Roger Wicker and Congressman Chip Pickering – all of whom pledged their continued support for the new facility, and who applauded the creation of high-value aerospace jobs in their home state.

Concluding the event was a delivery ceremony for the first EC 120 helicopter assembled at the Mississippi facility. The EC 120 was purchased by California-based Pacer Communities and was accepted by company President Randy Poag, who received ceremonial keys to the aircraft from Governor Barbour and Eurocopter President Fabrice Bregier.

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