UAE takes larger role in manufacturing Boeing components

UAE takes larger role in manufacturing Boeing components 

GeoStrategy direct w/e 27-Nov-13 

The United Arab Emirates has been awarded an expanded role with a U.S. defense major. 

The UAE'S premier aerospace and defense contractor has been given increased responsibility for producing components for commercial aircraft for Boeing. On Nov. 18, the UAE's Mubadala Development Co. signed what was termed a strategic agreement with Boeing valued at up to $2.5 billion. 

"Today's agreement further strengthens our relationship with Boeing, and provides an important platform as we continue to develop our role as a significant supplier to Boeing of composite aerostructures, and develop Strata into a major Tier 1 industry supplier," Mubadala Aerospace executive director Homaid Al Shemmari said. 

Executives said Mubadala, already a Tier 1 supplier, would produce advanced composites and machined metals for such aircraft as the 787 and 777X. Mubadala was also assigned development of pre-preg and carbon fiber manufacturing capabilities in Abu Dhabi. 

"This will support the ongoing development of the aerostructures industry and create raw-materials capabilities in the United Arab Emirates," Boeing said. 

Mubadala has been operating a subsidiary, Strata Manufacturing, to produce components for Boeing. Executives said Strata was being prepared to supply the vertical fin for the 787 Dreamliner. 

"Boeing is pleased to expand our relationship with Mubadala, a company that is committed to creating globally competitive and strategic aerospace capabilities in the UAE," Boeing Commercial Airplanes president Ray Conner said. 

Mubadala has led the UAE defense industry. In 2009, Mubadala signed a strategic framework agreement with Boeing for composites manufacturing and manpower development, and three years later Strata was assigned to produce vertical fin ribs. Airbus, another leading supplier to UAE airlines, has also pledged to purchase billions of dollars in components from Strata. 

"It's a really important commitment from Airbus and Boeing to grow Strata, and it's also a reinforcement of the kind of credibility they've appreciated in terms of cost, quality and timely delivery out of Al Ain," Strata chief executive officer Bader Al Olama said.