Mubadala Aerospace’s Strata busi­ness to break even in 2018

Kuwait Times - - BUSINESS -

Strata, the man­u­fac­tur­ing busi­ness of Abu Dhabi’s state-owned Mubadala Aerospace, ex­pects to break even in 2018, a se­nior ex­ec­u­tive said yes­ter­day.

Strata is part of the United Arab Emi­rates’ ef­forts to di­ver­sify away from hy­dro­car­bons. The govern­ment hopes to use com­pa­nies such as Strata to build up in­dus­try and high-tech man­u­fac­tur­ing.

The com­pany, which was estab­lished in 2009 and started pro­duc­tion in 2010, has an aero parts man­u­fac­tur­ing fa­cil­ity in Al Ain, an oa­sis town within the Abu Dhabi emi­rate, pro­duc­ing air­craft com­po­nents for Air­bus, Boe­ing and others. “Strata, phase one, in 2018 should start break­ing even now that we have sorted all the re­la­tion­ships and the de­lays and the changes in the mar­ket,” Ho­maid Al-Shim­mari, Mubadala’s head of aerospace and en­gi­neer­ing ser­vices told Reuters on the side­lines of an in­dus­try con­fer­ence in Dubai. “I think Strata will be in a (good) position fi­nan­cially.” Strata cur­rently man­u­fac­tures eight dif­fer­ent air­craft com­po­nents, in­clud­ing for Air­bus A330, A380, A350-900 and Boe­ing 777 and 787 jets. Strata’s Chief Ex­ec­u­tive Badr Al-Olama told Reuters on Sept. 1 2015 the com­pany would break even in 2017 and that it was tar­get­ing rev­enue of 1 bil­lion UAE dirhams ($272.3 mil­lion) by 2020. Al-Shim­mari did not give a rev­enue fore­cast for this year. Its rev­enue was around 400 mil­lion dirhams in 2015, ac­cord­ing to a com­pany state­ment.

In July, Strata said it had won two con­tracts from Air­bus val­ued at $1 bil­lion to man­u­fac­turer parts for the A320 jet and ad­di­tional parts for the A350-900. It also an­nounced a multi-year con­tract to man­u­fac­turer ad­di­tional com­po­nents for the Boe­ing 787. Strata ex­pects to start man­u­fac­tur­ing those parts in 2020 when a new fa­cil­ity opens in Al Ain, AlShim­mari said. —Reuters

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