Boeing Co. (BA:US) awarded a contract valued at $1 billion over 10 years to Mubadala Aerospace’s composite aerostructures unit, which will produce aircraft parts, as the Middle East expands its role as an aviation hub.
The parts will be made at the Strata Manufacturing site in Al Ain, the companies said in a joint-statement today. Strata, a subsidiary of the Mubadala investment fund in Abu Dhabi, will make empennage ribs for the 777 and vertical fin ribs for the 787 Dreamliner, and deliveries will start in 2013.
The deal is “comparative to the existing deal with Airbus which is in the range of $1 billion,” Mubadala Aerospace Executive Director Homaid al-Shemmari told reporters in Abu Dhabi today.
Abu Dhabi, home to about 7 percent of the world’s proven oil reserves, is branching out into aerospace as the United Arab Emirates’ biggest carriers, Emirates and Etihad, beef up their fleets to funnel travelers through the Middle East. Emirates is the biggest customer of Airbus A380 aircraft, and the company ordered more 777 wide-body jets at the Dubai Air show last year as it expands its global network.
Boeing and Mubadala may in future cooperate on “military maintenance and sustainment activities, as well as pilot training and people development,” according to the statement. Strata already manufactures composite parts for Airbus SAS 330 wide-body jet at its factory.
To contact the reporter on this story: Tamara Walid in Abu Dhabi at firstname.lastname@example.org
To contact the editor responsible for this story: Benedikt Kammel at email@example.com