(MENAFN - Khaleej Times) Mubadala Aerospace and Boeing on Tuesday announced a 10-year deal to manufacture advanced composite aero structures for the 777 and 787 Dreamliner that will help the emirate to become an aerospace hub.
Mubadala Aerospace's advanced composite aerostructures facility, Strata Manufacturing, will build ribs that support the two aircraft models' frames at its plant in Al Ain.
"Strata will manufacture empennage ribs for the 777 and vertical fin ribs for the 787 Dreamliner, according to a statement.
The two companies formalised a long-term vision for Strata's future role as Tier 1 supplier. In addition, the companies announced a strategic agreement that positions Strata to be a future supplier of the vertical fin for the Dreamliner, a major composite assembly for Boeing's most advanced airplane programme. These milestones grow the strong relationship between Boeing and Mubadala to advance the commercial aviation industry in the UAE and further Abu Dhabi's plans to become a global aerospace hub.
"The deal is comparative to the existing deal with Airbus which is in the range of 1 billion," Mubadala Aerospace's executive director Homaid Al Shemmari told reporters.
Strata also manufactures composite parts for Airbus SAS 330 wide-body jet. "This is an important milestone for Strata," he said.
"The signing of this agreement is testament to how far Strata has come as a company in the short 18 months it has been operational. Mubadala Aerospace is developing a world-class - and crucially - sustainable aerospace industry in the UAE, and Strata is at the heart of this development."
Boeing has already begun to provide tooling, operational early training and other support for those work packages, and Strata's deliveries of those components are scheduled to begin in 2013. In addition, based on its competitiveness and performance, Strata is positioned to become a future supplier of the 787 vertical fin assembly. "Boeing now wishes to elevate Mubadala into a tier one supplier means that they stand a great chance of producing composite structures for the 787-10X, 777-8X and 777-9X - all three are new airplanes that customers like Etihad Airways and Emirates are keen to be involved with an order," Saj Ahmad, chief analyst at London-based StrategicAero Research, told Khaleej Times.
About the possible advantages of deal for the two companies, he said the benefits are immense.
"The UAE is one of Boeing's most important commercial and defense customers, and its leaders have transformed its economy with aerospace investment and development," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes.
"Boeing has been committed for several years to build a partnership with Mubadala Aerospace that bring long-term, mutual benefits to both companies, he said.