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Fri 1 Jun 2007 12:00 AM

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DAE expects to hit US$7 billion by 2009

Dubai Aerospace Enterprise is on course to reach US$7 billion turnover by 2009, according to its chief executive.

Dubai Aerospace Enterprise is on course to reach US$7 billion turnover by 2009, according to its chief executive.

Bob Johnson told reporters that acquisitions will be crucial to boosting the aerospace company's finances.

The strategy is already underway, with DAE expected to finalise a deal for two maintenance, repair and overhaul (MRO) companies within the next four months.

A $1.8 million sum for Standard Aero Holdings and Landmark Aviation has been agreed with Carlyle Group, subject to US regulatory approval. But Johnson expects the deal to be cleared by the Committee of Foreign Investments following a 90-day review.

Since Johnson's arrival last year, DAE has bought SR Technics, a Zurich-based MRO provider, for $400 million. The company's directors are keen to continue the takeover strategy by acquiring airport assets and green-field projects around the globe. Management also wants to establish DAE as a driving force behind Dubai's aviation industry.

"Dubai Aerospace Enterprise will progress through a series of phases to establish an integrated aerospace industry cluster, which will eventually see the company responsible for contributing between 6-7% to Dubai's economy by 2020," Johnson said.

Dubai-based DAE comprises six divisions, covering several sectors including manufacturing, education and engineering. It's thought the group is heading a consortium that will work on airport projects in Asia and the Middle East, although Johnson refused to confirm the rumours when speaking at a recent press conference.

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