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Mon 28 Mar 2011 03:57 PM

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Mubadala Aerospace, Boeing in talks over supply contract

Abu Dhabi-owned firm in talks for up to four projects this year, executive director says

Mubadala Aerospace, Boeing in talks over supply contract
Mubadala is in talks to make components for US planemaker Boeing

Mubadala Aerospace, the Abu Dhabi-owned maker of parts for
Airbus SAS, is in talks with Boeing Co over a contract to make components for
the US planemaker.

Mubadala Aerospace, a unit of Mubadala Development Co, is
working on three to four new projects including joint ventures for this year, executive
director Hommaid al-Shemmari said.

“We are working with Boeing on multiple levels,” said
Shemmari, when asked about opportunities for making parts for Boeing planes.
“Talks are still at the informal stage. Maybe within the next few months we
could make an announcement.”

Mubadala Aerospace, which also has partnerships with
Finmeccanica and General Electric, aims to break even by 2012, even with the
cost of taking on and developing new projects. It’s building a maintenance facility
costing as much as $200m to service engines for Airbus A380s and Boeing 787s.
Parent company Mubadala generated earnings of AED5.2bn ($1.4bn) from aerospace
interests last year.

Mubadala Aerospace manufactures composite aircraft
structures for Airbus A330s and A340s. It will also start making five other
plane parts this year, including for A380s, the executive said.

“We are hoping to break even this year, even though we will
start new projects and companies, but 2012 is the target date,” said Shemmari.

The aerospace company is constantly on the lookout for
acquisitions and is eyeing a number of opportunities, said Shemmari, declining
to give further details.

Production of fairings for composite-part designer FACC AG
of Austria began last year after the two companies formed an industrial
partnership in 2009. Mubadala Aerospace has now delivered 25 sets of the
fairing that enclose the mechanisms operating the flaps since making its first
shipment in November, and it aims to deliver 90 so-called ship sets by year-end.

Abu Dhabi, home to more than seven percent of the world’s
proven crude reserves, is building itself into a global hub to supply the
aerospace manufacturing industry, part of its economic strategy to diversify
away from oil.

Parent company Mubadala owns stakes in Carlyle Group and
General Electric Co. The value of its aerospace assets increased 26 percent to AED11bn
last year.

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