Friday, July 18, 2008

EADS welcomes Mubadala to its base of global suppliers

European Aerospace group EADS and Mubadala Aerospace, a division of Mubadala Development Company of the United Arab Emirates, have signed a multi-faceted supplier agreement.

The partnership will allow EADS to extend its footprint in the Middle East in terms of suppliers and production capabilities.

For Mubadala the agreement is an important step in the company's commercial strategy to rapidly evolve the Emirate of Abu Dhabi's existing aerospace industry into a global aerospace hub.

The cooperation is expected to generate in excess of $1bn of revenue for Mubadala Aerospace over ten years.

The agreement was signed on Monday at Farnborough Airshow.

The EADS Mubadala agreement has three core components:

Firstly, in cooperation with EADS, Mubadala's recently announced composites plant will develop full design-to-build capabilities, significantly leveraging and advancing Mubadala Aerospace's range of products and services. This will help the Abu Dhabi facilities to become a tier one supplier for the next generation of commercial aircraft. The plant will start operations in 2010, producing composite aerostructures for Airbus and potentially other manufacturers. Initially the plant will provide spoilers and flap track fairings for the Airbus A330, A340, A350 and A380. The planned next phase will see the manufacturing of primary structures and components.'

As part of the agreement, EADS will work with Mubadala Aerospace to develop an Engineering Centre as well as Research and Development facilities in Abu Dhabi.

These facilities will be created to provide full design and development capabilities for composite aerostructures.

As a result, ultimately aerostructures will be designed developed and manufactured in Abu Dhabi.

Abu Dhabi Aircraft Technologies (ADAT), a 100% Mubadala owned company, and EADS will expand MRO capabilities in Abu Dhabi.

The agreement will accelerate ADAT's joining of Airbus' global MRO network.

The strength of Abu Dhabi's economic diversification drive and geographical position as a link between East and West makes the Emirate a natural location for a major aerospace hub.

EADS is fully aware of the potential economies of scale and the first mover advantages which result from the link with a manufacturing base in Abu Dhabi.

'Mubadala is a major player in the development of the Abu Dhabi economy and EADS is proud to reinforce its links with such a partner - one that has the ambition to become a major player in the highly technological Aerospace industry', said Louis Gallois, Chief Executive Office of EADS.

Mubadala CEO and Managing Director Khaldoon Khalifa Al Mubarak said: 'Mubadala has been executing a strategy of leveraging Abu Dhabi's geographic and economic position to build an aerospace hub in the Emirate. Today's announcement is a major watershed in this process, and we are delighted to be working with EADS.'

Both companies, recognizing the long term opportunities this partnership presents, have agreed to invest significantly in education and training programs.

Agreements with Universities based in the Emirate of Abu Dhabi and vocational training courses within EADS and Mubadala aerospace facilities are therefore planned.

No comments: