Abu Dhabi-based Mubadala Aerospace, a division of Mubadala Development Company, yesterday signed a multi-faceted supplier agreement with the European aerospace group, EADS (European Aeronautic Defence and Space Company), the parent company of aircraft manufacturer, Airbus.
The partnership, which is expected to generate in excess of $1 billion (Dh3.67bn) of revenue for Mubadala Aerospace over 10 years, would allow EADS to extend its footprint in the Middle East in terms of suppliers and production capabilities.
The plant is scheduled to start operations in 2010, producing composite aerostructures for Airbus and potentially other manufacturers.
Mubadala will spend $500million to build the composite plant.
With the first phase of the plant to be completed by early 2010, Mubadala would invest $161m in the first phase, the company said, adding the plant will be completed over three phases.
"The plant will manufacture hi-tech aerostructures composite components and assemblies in the emirate," Mubadala said in the statement. "The plant is an important development in the synergy of these areas and in the creation of a robust aerospace industry in Abu Dhabi," said Homaid Al Shemmari, Director of Mubadala Aerospace.
"Mubadala has been executing a strategy of leveraging Abu Dhabi's geographic and economic position to build an aerospace hub in the Emirate," said Mubadala Chief Executive Officer and Managing Director, Khaldoon Khalifa Al Mubarak.
For Mubadala, the partnership is an important step in the firm's commercial strategy to evolve the capital's existing aerospace industry into a global aerospace hub, Abu Dhabi's government investment firm said.
The company said EADS Mubadala agreement consists of some core components. For instance, Mubadala's composites plant will develop full design-to-build capabilities, helping Abu Dhabi facilities to become a tier-one supplier for the next-generation commercial aircraft.
Meanwhile, the plant will initially provide spoilers and flap track fairings for Airbus A330, A340, A350 and A380. And the next phase will see manufacturing of primary structures and components.
Furthermore, EADS will work with Mubadala Aerospace to develop an engineering centre as well as research and development facilities in Abu Dhabi, as a part of the agreement.
According to the company, these facilities would help provide complete design and development capabilities for composite aerostructures, as a result of which, aerostructures would be ultimately designed developed and manufactured in Abu Dhabi.
Abu Dhabi Aircraft Technologies (Adat), a fully-owned Mubadala company, and EADS will expand MRO capabilities in the capital.
The numbers
$1bn: Expected revenue for Mubadala Aerospace as a result of the partnership
$500m: Mubadala to spend on building the composite plant. The first phase of the plant is scheduled for completion in 2010
Rolls-Royce and Mubadala launch new aviation JV
Aircraft engine manufacturer, Rolls-Royce, and Abu Dhabi's government investment firm, Mubadala Development Company, yesterday announced the launch of a new joint venture company to serve the Middle East aviation services market.
The company said the joint venture will offer "On-Wing Care" through Abu Dhabi Aircraft Technologies (ADAT), the leading maintenance, repair and overhaul company.
Services will include provision for a wide range of specialist line maintenance support services from boroscoping to engine changes for Rolls-Royce Trent family operators in the region. In addition, it will also launch a new service to provide asset management services for engine system accessories.
"Our partnerships with Rolls-Royce are solidifying the creation of Abu Dhabi's aerospace hub," said Homaid Al Shemmari, Director of Mubadala Aerospace.
There are On-Wing Care service centres in London, Hong Kong, Frankfurt, Indianapolis and Singapore.
The centre in Abu Dhabi will predominantly support the growing Trent engine family.