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TWST: Let’s begin with a historical sketch of your company (GFII.PA) and work our way into what you’re doing now.

Mr. Viellard: LISI Stands for, LInked Solutions for Industry. It means that the company brings solutions to improve the assembly lines and fastening for aerospace, automobiles as well as cosmetics. We solve fastening issues with innovative solutions and technology. We can develop solutions, both in metal and plastic using different processes. We provide our customers with a ‘one-stop shopping’ principle consisting of a wide range of innovative solutions.

TWST: What are some of the core focuses you’re developing within the aerospace sector?

Mr. Viellard: For aerospace we are working with every large OEM in the world. Examples are: Airbus, Boeing and also Bombardier and every main airlines manufacturer or equipment manufacturer. We are the market leaders when it comes to the structure or body of the airplane. We provide structural fasteners to solve the kind of issues you’d find in the ACT; which is a huge aircraft that has to be put together with very critical fasteners and that's what we are doing. Today, the activity is much better than one year ago and I think we are working very closely with Airbus to develop the final A380 issues in order to have the first flight in 2005.

TWST: What are the skills and strengths of your management?

Mr. Viellard: Managers are, of course very, very important for us. We are developing a decentralized, flattened, structure. It means that every plant manager is responsible for his own small enterprise. That way we have better flexibility, a better understanding of customer's expectations and that's very important for us in this kind of an organization.

TWST: Can your talk about how the economy has affected what you do in the aerospace sector? Have the orders from Boeing and Airbus been affected?

Mr. Viellard: Yes. Volume is very important for us. Boeing decreased from 650 or more aircraft manufactured in ‘99 to less than 300 right now--of course they decrease their levels of inventory at the same time as they decrease the orders. We have decreased the volume of the activity by half. However, at the same time, Airbus has increased a lot so we offset the decrease of Boeing by the increases of Airbus where we have a greater market share. Now our US operation is manufacturing a lot of parts for Airbus. Approximately 20% of the business is now done for Airbus. Before it was the contrary, we did some business from here to Boeing. We have totally inverted the balance of the group.

TWST: Looking forward, what are some of the challenges or the problems that your sector might face?

Mr. Viellard: We have to continue to develop solutions for our customers, because our customers need to have better products at a cheaper price to increase the air traffic. We participate in this movement by providing more innovative fasteners to our customers. We also need to deliver them a better standard of products. We are currently doing better at a better price, so we continue to improve our productivity. At the same time we are developing a low cost manufacturing base for the small batches. The batches include a lot of labor cost. Today, our Turkish plant is very efficient. It is now more than 150 people and we do think that we can double the size and in a very short period of time.