Bengaluru: Wipro Givon USA, an arm of Wipro Infrastructure Engineering, is buying the Washington manufacturing facility of Boeing supplier TECT Aerospace Group Holdings for $31 million.
Wipro’s bid for the manufacturing site was the only qualified offer submitted, TECT told the US Bankruptcy Court for the District of Delaware, a Bloomberg Law report said. The court gave the go-ahead for the deal.
TECT Aerospace manufactures complex aerostructures components, parts, and assemblies. It produces thousands of assemblies and parts that are used in flight controls, fuselage/interior structures, doors, wings, landing gear, struts & nacelles, and cockpits.
Wipro Infrastructure Engineering has several aerospace parts manufacturing facilities, including in Bengaluru. In 2016, it acquired HR Givon, an Israel-headquartered manufacturer of metallic parts and assemblies for the aerospace industry. Wipro Givon operates a manufacturing site in Everett, WA, less than a mile away from Boeing’s main factory.
TECT said in a statement in April that the company experienced catastrophic financial losses stemming from the suspension of 737 MAX (Boeing) production (in December 2019) followed by the impact of Covid‐19 on industry production rates.
“Following 15 months of diligent work with its lenders, customers, and suppliers, and after exhausting all efforts to restructure out of court, TECT has concluded that an orderly and organised Chapter 11 proceeding is in the best interest of its creditors,” the company said.