Mubadala Expands Partnerships in Aerospace Mfg., MRO

At the recent Dubai Airshow, the United Arab Emirates-based investment agency, Mubadala Development Co., entered into a series of agreements with major aerospace manufacturers Airbus, Boeing, GE Aviation, and Rolls Royce. The agreements expand existing business relationships in the areas of composite and metal aerostructure manufacturing, engine component manufacturing, raw materials supply, and maintenance, repair, and overhaul (MRO). The combined value of the contracts – just including the airplane builders – is US$5 billion. The scope of the agreements also reflects the UAE's expanding role in the global commercial aerospace industry. The announcements regarding the agreements are summarized below.

 

Mubadala Aerospace, Communications Technology, and Defense Services (ACTDS) entered into a new strategic agreement with Airbus to expand its existing partnership relating to aerostructures manufacturing in the UAE.

 

Airbus has made further commitments to awarding work packages to Strata, Mubadala’s advanced composite aerostructures manufacturing plant. 

 

This agreement builds upon the ones already signed by Strata to provide flap track fairings for the manufacturer’s A330, A340, A350 XWB, and A380 aircraft. 

 

Airbus has also made future commitments to procure composite raw material from Mubadala upon commencement of production from a proposed raw materials manufacturing facility to be established in Abu Dhabi. In all, the extra contracts with the European plane maker could be worth as much as US$2.5 billion.

 

Boeing and Mubadala officials announced a new strategic agreement that will increase the long-term role of Mubadala as a Tier 1 supplier to Boeing. Through their agreement, signed at the 2013 Dubai Airshow, Mubadala has the opportunity to supply as much as $2.5 billion in advanced composites and machined metals to Boeing commercial programs, including the 787 and 777X.

 

Boeing and Mubadala have also agreed to work together to develop pre-preg and carbon fiber manufacturing capabilities in the Emirate of Abu Dhabi. This will support the ongoing development of the aerostructures industry and create raw-materials capabilities in the United Arab Emirates.

 

This latest agreement advances the strong relationship between Boeing and Mubadala. Strata Manufacturing, a Mubadala subsidiary, is also positioned to be a supplier of the 787 Dreamliner vertical fin, as well as producing 777 empennage ribs and 787 vertical fin ribs. 

 

Boeing and Mubadala remain committed to continue their close cooperation to develop Emirati aerospace capabilities.

 

Mubadala ACTDS has entered into a new agreement with GE Aviation in relation to next-generation engine maintenance and manufacturing. In 2009, Mubadala ACTDS became the first GEnx engine MRO network partner. The agreement was one of several initiatives including commercial finance, clean energy research and development, and corporate learning.

 

In furtherance of its commitment to establish Abu Dhabi as a key member of its global supply chain ecosystem, GE Aviation will work with Mubadala to develop engine component manufacturing capabilities within the Emirate, with the aim of positioning Mubadala to become a Tier 1 engine supplier in the next decade, and have committed to US$500 million in work packages. 

 

Officials from jet engine manufacturer Rolls-Royce announced a strategic framework agreement with Mubadala ACTDS to establish the Emirate of Abu Dhabi as a key member of Rolls-Royce's global network for maintenance and manufacturing activities.

 

As part of the agreement, Rolls-Royce is supporting Mubadala to become established as an approved Trent XWB engine maintenance, repair, and overhaul (MRO) provider within its global engine MRO network and the first such facility in the Middle East. The region is expected to have one of the highest concentrations of Trent XWB engines in the world in the coming decade.

 

Rolls-Royce also plans to source engine components valued at up to $500 million over a 10 year period from Mubadala once it has a manufacturing capability.

 

In addition, Rolls-Royce has committed to helping establish, and become a founding member of, the first advanced manufacturing research center in the region to support Mubadala's goal to become a Tier 1 aerospace industry supplier.

 

Mubadala Development Co. and Khalifa University have jointly established a research center at the University’s campus in Abu Dhabi. Indicative of the center's importance, the signing ceremony was attended by Sheikh Hamed bin Zayed, chairman of the Abu Dhabi Crown Prince’s Court and vice chairman of the university's board of trustees.

 

The project, valued at nearly US$15 million, will be named Aerospace Research and Innovation Center (ARIC), and will have approximately 50% of the investment placed in establishing state-of-the-art research facilities and capabilities, with the remainder being invested in research and development (R&D) projects that directly relate to the needs of the aerospace industry in the UAE.

 

Responsibility for the center is shared equally between Mubadala and Khalifa University during the agreement’s 5-year term, with the strategic direction of the center to be overseen by a senior management board comprised of members from both organizations. ARIC will be directed by Prof. Wesley Cantwell, whose expertise is in composites and aerospace structures. 

 

The center will initially focus on composite aerostructures and the automation of their manufacturing processes, with the plan to expand in the future into other technical areas such as maintenance, repair, and overhaul (MRO), air transportation, and other technologies to provide a pipeline of innovation.

 

One announced goal for the center is to create a research ecosystem that allows industry and academia to work together. Another strategic goal is to provide the skills and human capital necessary for a sustainable aerospace industry in the UAE.