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The Bourget Aeronautical Show opens its doors to the public, Friday June 20. It is also the day of the visit of the President of the Republic Emmanuel Macron, who notably went to the Safran stand, manufacturer of aircraft engines. Olivier Andriès is the managing director of this flagship of tricolor aeronautics.
Franceinfo: Half of your 100,000 employees are in France, with a hundred sites. And you have planned a new foundry in Rennes. Scheduled for a year, this project has been criticized by environmentalists, which earned you the voice before the National Assembly Commission of Inquiry on the Brakes on Reindustrialisation. “If it is to be welcomed, in a region where 500 jobs are created, by tomatoes, it is not worth it”Did you say.
Olivier Andriès: We had a project, which we still have and I think that in the coming weeks, we will inaugurate the first stone of this project. It is a project to create 500 jobs, to make rooms of civil and military aircraft. It is also a project of sovereignty and it is a job creation project, in a technological and future field. In addition, respecting the criteria of zero net artificialization, since we settle on an old site of Stellantis.
Have you not given up this project, but are you still deeply annoyed?
No way. I must nevertheless point out that this project, we talked about it with the mayor of Rennes, with the Regional Council of Brittany. And we had a very, very good collaboration. And when this project was made public, there have been statements and demonstrations of environmentalists, who are part of the municipal majority in Rennes, protesting against our arrival in Rennes. And there, I do not understand because somewhere, it’s a bit of selfishness, insofar as it is a project that creates 500 jobs. So indeed, I said what I said in the framework of the commission of inquiry, since it brought to the brakes to reindustrialisation.
“You will understand that it is normal for you to try to settle in places where you are welcome. It is human.”
Olivier Andriès, Managing Director of Safranin franceinfo
Does that mean that we will get back to it more?
This means that we have made the decision, for all the next projects that we could have job creations in France, to choose places where we are sure to be welcomed. That’s it.
This year, more than ever, the Bourget meeting is under the sign of defense, due to the geopolitical context?
Absolutely. This show is really placed under the sign of defense. But first, it was marked by a tragic event in India, with the air crash India. It was a Boeing plane, who wanted to stay relatively discreet during this show and not announce orders for commercial aircraft. This is not usual because generally, the lounges of Le Bourget always see a race between the two large aircrafters on orders. In addition to that, as you said, the geopolitical context means that indeed, this week, it was rather a fair -oriented lounge.
For Safran, the defense orders relate to what?
Defense activities represent 20% of Safran’s total turnover. It is essentially activities of combat aircraft and military transport aircraft. So it is the Rafale engine, obviously, the engines of military helicopters, but we also have defense electronics activities. With activities in the field of optronics, navigation, what is called guidance. And so, the show was an opportunity not necessarily to announce major orders, but the opportunity to feed a dialogue with many European players in this area.
“What marked me in this show was that European Defense actors all become aware of the context and the need for greater autonomy.”
Olivier Andrièsin franceinfo
In parallel, Safran is mounting a specific subsidiary dedicated to defense in the United States. For what ?
Absolutely. We already have a certain number of activities, we have what is called an industrial footprint in the United States. In particular because of our civil activities, we have American customers, we are both supplier and partner of Boeing, and supplier and partner of Airbus. And we have made the decision to create a specific entity – Safran Defense and Space Inc – which is under a particular security scheme – a “special Security Agreement” – which allows us to have access to the American military markets, to have access directly to the Pentagon, or to be able to work on defense markets with American aircrafters.
The subsidiary was created, it was announced a year ago. It works. We already have a few hundred million euros in turnover with the US Defense Ministry. So, as part of this particular security agreement, this entity is managed and managed by American citizens.
North America today is 25% of your workforce and one of your flagship product, it is the Leap engine, co-fabricated with the American General Electric. Has the implementation of customs duties by Donald Trump changed your ambitions, projects or value chains?
So, it absolutely does not change our ambitions. With this engine, we are both Airbus partners – since this engine is a motorization solution for the A320 NEO – and Boeing, on the 737 max. So that doesn’t change our ambitions.
Does it change prices?
It is a transatlantic engine, with half of its American content, the other half of its French content. And that therefore our flows of what we call our value chains are very international and very transatlantic. So obviously, we are impacted by the prices that have been put in place by the American administration, of the order of 10%, with a threat of increase in the event that there is no agreement between Europe and the United States. This context led us to make a lot of decisions, optimizing our value chains. We were able to optimize our logistics flows to try to avoid paying prices. There is still a clear exhibition, especially when you deliver to American customers. In this case, we have no choice but to engage a discussion with our customers so that they take a part or even the bulk of this pricing impact, because basically, it is an increase in costs.
“Customs taxes at +10%, it’s not trivial. It’s more than what we devote for the preparation of the future. This is why it cannot last.”
Olivier Andrièsin franceinfo
So we are militating, with Airbus, but it is also true of our American partners and our American customers, so that we return to a situation of exemption from prices for the aeronautical industry. Because the aeronautical industry is an international industry, with international value chains, without the possibility of changing overnight of supplier. Because our priority to everyone is the safety of flights. And so all the parts undergo a whole qualification process and therefore change overnight of supplier, it is something that is not possible.
