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Boeing, Mubadala Ink Joint Venture Deal

DUBAI — Boeing and Mubadala, the Abu Dhabi government-owned investment firm, on Monday signed “a strategic framework agreement” at the Dubai Air Show covering key areas of collaboration.
 Under the agreement, Boeing and Mubadala plan to develop initiatives in areas where there is strategic alignment between the two, officials of
both companies said.

Describing the deal as strategic to Boeing’s policy to diversify its supply chain bases, the US plane-maker’s Chairman and Chief executive James McNerney said the collaboration with Mubadala would include composite manufacturing, engineering, research and development, commercial maintenance, repair and overhaul, military maintenance and sustainment, pilot training and 
people development.

McNerney declined to give details about the scope of investment needed what he described as Ties One aircraft component manufacturing facility but said the components that would be manufactured at the Abu Dhabi venture would be “technologically advanced but less risky.”

This framework agreement underlines Boeing’s commitment to the UAE and the Middle East region as a whole. “By working with Mubadala on these hi-tech industrial projects, we will strengthen both Boeing and Mubadala’s businesses,” said McNerney.

The agreement is the start of a long-term mutual commitment to boost Abu Dhabi’s plans to become a global aerospace hub, the companies said.
 “Mubadala’s strategy is to make Abu Dhabi a global aerospace hub based around manufacturing, MRO, education and training,” said Homaid Al Shemmari, associate director of Mubadala Aerospace.
“Building Abu Dhabi’s aerospace industry directly supports our mandate to create a high-tech, knowledge intensive economy, and provide career opportunities for the current and future UAE workforce.”
The two companies began exploring ways of working together two years ago, newswire Reuters reported earlier on Monday.

Mubadala has been investing progressively in aerospace deals to boost the Abu Dhabi economy and said last week it would launch an aerospace components maker that is expected to produce advanced composites for firms including Boeing rival Airbus.
 “Around the world there are growing aspirations for increased skills development and technology development,” Shepherd Hill, Boeing’s vice president of strategy and president of Boeing International told the newswire.
“Boeing sees a world that is growing up in terms of its capability where we can reach out and benefit not just in selling products and services but in bringing enhanced capability into Boeing.
— issacjohn@khaleejtimes.com