Since acquiring two businesses, Creuzet in 2011 and Manoir Aerospace one year ago, Lisi Aerospace (Chalet 155, Hall 2b C172) has expanded its offering for OEMs, from major structural components used for engines and airframes, to simple fasteners. “We can now offer a full assembly process to our customers,” said Emmanuel Viellard, CEO of Lisi Aerospace, and one of the stakeholders of France-based Lisi Group.

The structural components division operates under the brand name Lisi Aerospace Creuzet, while the core business of Lisi Aerospace (Lisi Group, Belfort) is metal deformation, complemented by heat treatment, machining, coating and assembly. Overall, aerospace represents more than 60 percent of total business at Lisi Group, which last year amounted to €1.3 billion ($1.45 billion). The group employs almost 7,000 people at 19 manufacturing sites in eight countries. Moreover, Lisi Aerospace is the most profitable and fastest growing subsidiary of the group, which also has automotive and medical subsidiaries. The core business represents 96 percent of the group’s 2014 free cash flow and has grown 33 percent, from €592 million in 2012 to the €788 million achieved in 2014 (respectively $657 million to $874 million). Viellard forecasts even more growth in 2015, even if it’s at a slightly lower rate from the previous year.

Lisi Aerospace is one of the main fastener suppliers to Airbus, Dassault Aviation, Bombardier and Boeing, thanks, in part, to the acquisitions, but also to the strong market in aviation. Fasteners account for two-third of Lisi Aerospace’s revenues.

The French company has enjoyed increases in production rates of components for the Boeing 737 and the Airbus A320 families over the past three years. Combined, the OEMs recently announced planned monthly rates of 52 narrowbodies a month (possibly as many as 60), for the 737 and A320 programs. That’s good news for suppliers such as Lisi. “We will be ready to address this challenge,” commented Viellard. The Dreamliner also represents solid activity, and Lisi Aerospace will have further growth opportunities with the A350 ramp-up.

Since the integration of Creuzet and Manoir Aerospace, Lisi Aerospace has added a new business line incorporating airframe components and sub-assembly, notably for engines and nacelles. For example, Lisi Aerospace provides blades, leading edges and air-intake components for engine programs such as the CFM56 and Leap powerplants. “Leap’s ramp-up is the big challenge for us because a swing [in production] will occur between CFM56 and Leap in the next 24 months,” said Viellard.

In order to prepare, the company has started building two new factories, one in Parthenay (in the west of France) to produce the guide vanes for the Leap engines, and the other at Villefranche-de-Rouergue (southwest France) for Leap fasteners. During the past four years, Lisi Aerospace has invested more than €50 million annually in new factories, not only in France but also in Morocco and Turkey. “We still have some difficulty recruiting workers in France with good skills,” said Viellard.

As a risk-sharing partner, Lisi Aerospace also invests in innovation. At the Paris Air Show, the French company will release a new semi-automated structural blind bolt. Also, Lisi’s brand new titanium leading edge for the Leap engine will be on the company’s stand. “These are very complex parts that we have designed in cooperation with Snecma,” said the CEO.

Lisi Aerospace also serves the helicopter market, though that business has diminished somewhat. It produces cargo hooks and floor coverings for Airbus and AgustaWestland helicopters as well as forged primary parts. The decrease in oil prices didn’t help the oil-and-gas operators, who rely heavily on helicopters. Meanwhile, Lisi’s defense activity could see better-than-expected business in 2015, after Dassault won three export contracts for its Rafale fighter. Through Manoir Aerospace (cast parts), Lisi Aerospace is one of the partners in the Rafale program.