Chief executive of manufacturing unit says he aims to break even in two years' time
Strata, the manufacturing unit of Abu Dhabi's state-owned Mubadala Aerospace, expects revenues to grow more than 15 per cent this year and aims to break even in two years' time, its chief executive said on Tuesday.
The company has an aeroparts manufacturing facility at Al Ain, an oasis town within Abu Dhabi, producing aircraft components for Airbus, Boeing and others.
"This year our revenue will cross 400 million dirhams ($108.9 million)," CEO Badr al-Olama told reporters at the company's plant.
Strata generated revenue of 346 million dirhams in 2014 and has a target of 1 billion dirhams by 2020, he said.
He added that the company would break even in 2017 but he did not elaborate or say how much the company was losing at the moment.
Strata is the Gulf's only manufacturer of aircraft parts and plays a role in the United Arab Emirates' economic diversification strategy away from hydrocarbons. The government hopes to use companies such as Strata to build clusters of industry and high-tech manufacturing.
Parts for aircraft are one such industry the authorities are targeting, aided by the country's strong presence in aviation through airlines such as Emirates and Etihad Airways.
Strata plans to build a second plant close to the current Al Ain facility in 2017, Olama said, which would help the company to cater to the next generation of aircraft parts.
Currently, Strata manufactures eight different aircraft components, including moveable wing parts and "flap track fairings" that help to reduce drag when flying at high speed.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.