Boeing (NYSE: BA) and Mubadala Aerospace today announced a 10-year direct contract for Strata Manufacturing, Mubadala Aerospace's advanced composite aerostructures facility in Al Ain, to produce commercial composite aerostructures for the 777 and 787 Dreamliner. 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 program.
These milestones grow the strong relationship between Boeing and Mubadala, a business unit of the Abu Dhabi-based Mubadala Development Company, a business development and investment vehicle of the Abu Dhabi government, to advance the commercial aviation industry in the United Arab Emirates (UAE) and further Abu Dhabi's plans to become a global aerospace hub, a key part of the Emirate's economic diversification plans.
"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 brings long-term, mutual benefits to both companies. And we're pleased that its company, Strata, will now support production of the breakthrough 787 Dreamliner and the 777, an airplane that already plays an essential role in the success of our customers."
"This is an important milestone for Strata," said Mubadala Aerospace Executive Director Homaid Al Shemmari. "The signing of this agreement, here at the Global Aerospace Summit in Abu Dhabi, 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."
In Boeing's first direct composites supplier contract in the Arab world, Strata will manufacture empennage ribs for the 777 and vertical fin ribs for the 787 Dreamliner. 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.
Today's announcement builds on agreements signed by Albaugh and Al Shemmari at the 2011 Dubai Airshow to establish Strata as a composite aerostructures supplier and develop a strategic roadmap for Strata to become a major Tier 1 supplier to Boeing.
These recent developments further advance a framework agreement signed by Boeing and Mubadala Aerospace in November 2009 to show their commitment to develop mutually beneficial initiatives in areas where there is strategic alignment between the two companies. Future partnership initiatives could include military maintenance and sustainment activities, as well as pilot training and people development.
Source: The Boeing Company (NYSE: BA)
Date: Apr 17, 2012