Strategic objectives

The application of the Group’s four key elements of value creation have resulted in the development of the following strategic objectives in each of the Group’s five key market sectors. The Group’s progress against these objectives is also included in the tables below:

Structures
STRATEGIC OBJECTIVES PROGRESS
  • Extend customer value proposition via increased collaboration across the Group
  • Place significant internal emphasis upon utilisation of internal low-cost Countries such as Malaysia, Thailand and Mexico
  • Continue to focus on operational excellence to drive customer satisfaction and increase market share
  • Develop capabilities and build a business of increased scale in South East Asia including the expansion of process capabilities to enhance added value for customers
  • Invest in new technologies necessary for substantial growth
  • New programme wins with significant aircraft OEMs have resulted from leveraging existing relationships within the Group
  • Capabilities increased at facilities in lower cost countries, and in support of a key customer, a new Senior Aerospace facility in Charleston, South Carolina opened in February 2015
  • On-time delivery improvements have been achieved through continuous focus on key measures and the execution of improvement programmes
  • New manufacturing facility under construction in Thailand for expansion of Structures operation in South East Asia which will include a specialist treatment capability
  • Senior Aerospace is partnering with the AMRC (Advanced Manufacturing Research Centre) at the University of Sheffield for the development of the latest machining and manufacturing techniques. Additionally support for additive manufacturing is ongoing with the MTC (Manufacturing Technology Centre) Coventry
Fluid conveyance systems
STRATEGIC OBJECTIVES PROGRESS
  • Continue to develop products for new platforms
  • Further develop strategic customer relationships
  • Successful execution of new development programmes
  • Expand engineered product portfolio
  • Acquire new or adjacent technologies
  • Development contracts for ducting components secured for the engines that will power the A320neo, A350 and B737 MAX. The A320neo and the A350 are due to enter service in 2015 and the B737 MAX in 2017
  • A targeted approach with strategic OEM’s and tier 1 customers which have generated multi operation opportunities across Senior Aerospace
  • Continued investment in engineering and programme management is ensuring new programmes enter production profitably and in line with customer milestones
  • Additional focus has been given to engineering collaboration across the Group resulting in a more formalised approach with potential additional capabilities and product offerings under consideration
  • New facilities at SSP are due to start production during 2015 in order to satisfy increased customer demand
Gas turbine engines
STRATEGIC OBJECTIVES PROGRESS
  • Target higher value-added engineered or flight critical parts (e.g. rotating)
  • Develop cross-business customer relationships
  • Further develop low-cost country footprint
  • Secure additional content on engines for next generation narrow-body and wide-body commercial aircraft
  • Expand process capabilities via new technology investment
  • First rotating parts in production as part of an outsourcing contract from a significant manufacturer. A centre frame product was manufactured by Ketema in support of the B737 MAX engine development
  • Collaboration and technology sharing between an increasing number of operations is delivering new opportunities
  • Further investment in Thailand and Malaysia has resulted in additional opportunities being developed with existing and new customers
  • Investment in specific improvement projects with the AMRC noted above also supports our activities in gas turbine engines
Land vehicle emission control
STRATEGIC OBJECTIVES PROGRESS
  • Develop product portfolio as emission regulation thresholds increase globally
  • Build programmes with new truck and off-highway customers
  • Invest further in emerging market footprint, in growth markets
  • Investment in passenger car niches to support development of global platform capabilities
  • Development of a new design heavy-duty cooler has resulted in orders for natural gas applications as well as mid-range and smaller engine applications
  • Developed and launched the state-of-the-art Flex-A-Fin® EGR cooler
  • Launched engine tube manufacture in India and now quoting on global programs out of Olomouc, Mexico, Brazil and China
  • Presence of China JV assisted in the award of exhaust flexes which will also be satisfied by our operations in Cape Town and Brazil
  • The production of common rails and exhaust flexes has commenced within China and is expected to increase during 2015
  • New programme wins mean the Group’s French land vehicle operation is expected to see continued improving financial performance in the future
Industrial process control
STRATEGIC OBJECTIVES PROGRESS
  • Expand global presence as emerging markets add local hydrocarbon refining and processing facilities
  • Secure growth from tightening emission standards in developed markets
  • Seek proprietary adjacent products
  • Participate in new technology developments and applications (e.g. combined heat and power fuel cells, concentrated solar power, micro turbines)
  • Secure new major process projects as their capital funding becomes available
  • Acquired Upeca adding product and geographic offering
  • Secured and started delivery on two major Catofin projects. One in South Korea and one in Houston, USA secured several large international damper orders
  • Developed a proprietary heat exchanger for Waste Heat recovery systems
  • Developed fuel system components for Natural Gas engines
  • Supplying key components to several fuel cell manufacturers and micro turbine suppliers in both Europe and North America
  • Collaboration between Group operations in USA, Canada and Brazil is resulting in improved competitiveness and broadening of product offerings
  • Increase in new work awarded as a result of tightening emission regulations leads to additional damper and fabric expansion joint contracts
  • Developed and successfully testing new system to replace ball joints in existing solar energy plants