Defence giant Lockheed Martin has acquired an equity stake in Abu Dhabi contractor Advanced Military Maintenance Repair and Overhaul Centre (AMMROC).
The US manufacturer joins the venture’s existing firms, Sikorsky Aerospace Services, which holds an equivalent share, and Abu Dhabi Aircraft Technologies (ADAT), the principal shareholder.
Mubadala confirmed to Arabian
Business that the size of the Lockheed Martin stake in AMMROC will not be
disclosed.
AMMROC, which was launched in July last year, will provide maintenance repair and overhaul (MRO) to all fixed- and rotary-wing aircraft in the UAE military, as well as offering services to other armed forces around the world.
Over $800m has already been invested in the project, which will operate from a new complex at Al Ain International Airport.
“Lockheed’s decision to acquire an equity interest in AMMROC is an important component of our plans to create a world class facility that provides a self- sustaining, and commercially viable platform for the UAE Armed Forces and regional military customers,” said Homaid Al Shemmari, chairman of ADAT – a wholly-owned subsidiary of Mubadala – and AMMROC.
The regional MRO industry is a lucrative one. In Saudi Arabia, Alsalam Aircraft Company – itself a joint venture between Saudi government entities and Boeing – picked up a $380m deal to provide maintenance support for fighter jets in December last year.
Consultancy AlixPartners believes that the Middle East’s aircraft maintenance, repair and overhaul (MRO) sector is set to double to $4.4bn by 2019.
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