Boeing Signs $1B Outsourcing Agreement With India

New York, NY (AHN) - The Boeing Company announced on Thursday that it has signed a $1 billion agreement with Hindustan Aeronautics Limited (HAL) of India as a part of manufacturing outsourcing contract.

According to the 10-year pact, HAL will manufacture sub-systems of Boeing's fighter planes including F-18 Super Hornets and Apache Helicopters.

Initially, Boeing will invest around $20 million annually to increase its manufacturing unit size and complexity along with business opportunities in the sub-continent.

The Memorandum of Understanding (MOU) was signed between Jim Albaugh, President of Boeing Integrated Defense System and Chairman Ashok K Baweja, the Indian defense Public Sector Undertaking of HAL.

The Chicago-based Boeing said in a statement on Thursday that it will provide Bangalore-based HAL with its technology to develop manufacturing processes for the production of the sub-systems or hardware for Boeing.

"The agreement represents an important step in our efforts to build solid long-term partnerships in India to make Boeing products more globally competitive, while allowing HAL to grow and expand its potential market around the world," Jim Albaugh said in a statement.

HAL has 18 production units and nine research and design centers in India with 32,000 staff members.