Wednesday, July 23, 2008

Engine MRO to feature in extensive Mubadala-GE partnership

Middle Eastern investment firm Mubadala is sealing an extensive partnership with General Electric which will include co-operation in engine maintenance among a diverse range of businesses.

Mubadala, which owns maintenance company Abu Dhabi Aircraft Technologies (ADAT), is to explore with GE an expansion of their maintenance activities to support the increasing number of GE aircraft engines in the region.

The agreement follows Mubadala’s decision, revealed last week, to form a joint venture with Rolls-Royce covering maintenance provision on Trent engines, in co-operation with ADAT.

Mubadala has disclosed intentions to assert a strong presence in commercial aerospace and is planning to develop a composites plant in order to supply materials for current and future-generation Airbus aircraft.

Its new partnership with GE will also include establishing a jointly-owned commercial financial services business in Abu Dhabi, to which both sides will allocate $4 billion in equity over a three-year period.

“This partnership is consistent with our global growth initiatives and builds on our long-term relationships in a high-growth region like the Middle East,” says GE chief Jeff Immelt.

His counterpart at Mubadala, Khaldoon Al Mubarak, adds: “Our long-term partnership with GE draws on a joint commitment to, and core expertise in, high-growth businesses like clean energy, project finance and aviation.

“Most importantly, both our companies regard knowledge and the development of executive and scientific talent as a competitive advantage.”

Mubadala and GE will also participate in the oil and gas industries, as well as clean energy, technology and water research. Mubadala plans to become a long-term GE shareholder, and GE says it expects the Middle Eastern firm to become one of its main institutional investors through the open market.

Implementation of the agreement is subject to final negotiations and regulatory approval.

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