Middle East investors show interest in next generation aircraft seats

DUBAI — The interest in the multi-million euro joint venture for manufacturing the next generation seats and interiors for aircraft has been evidenced by an overwhelming response from the Middle East investors in general and the UAE and GCC investors in particular, given the growth potential offered by fast-expanding global aviation industry, its UAE-based promoter said.

By (Staff Report)

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Published: Tue 23 Aug 2011, 11:09 PM

Last updated: Tue 7 Apr 2015, 3:47 AM

Sara Ismail Mohamed, Chief Executive Officer of Abu Dhabi-based Al Bashayer Investment, said: “Investors from different Middle East countries are showing great interest in the project with a number of subscriptions already signed on the first day of the launch.

“The joint venture holds immense potential for growth and return on investment due to massive expansion and development of the global aviation industry.”

The lead investor for the project is IPM Investment, a Dubai-based private equity and venture capital company, offering shares of €36 million in United Seating Technologies (UST) to private investors.

IPM has taken a 30 per cent share in UST and has also contracted to set up a regional sales and aftermarket support facility in Dubai for customers in the Middle East, Africa and the CIS for United Seating Technologies Middle East (UST-ME).

IPM has entered into agreement with Corporate Consulta SA of Switzerland for the joint venture project that was structured by and between Aerospace Life-Support Industries and Corporate Consulta, Fribourg-based Swiss corporation, to create United Seating Technologies (UST), Jiahang United Seating Technologies (JUST) and brought in the Italian design firm, Bertone, and aircraft seat engineering company, Optimares, as independent project contract partners. Both Aerospace Life-Support Industries and Corporate Consulta have allocated an initial investment of euro 100 million for JUST.

The promoters are confident about the joint venture’s potential of tapping approximately 20 per cent of the global market business and expect Internal Rate of Return (IRR) of 36 per cent on an average over an initial 10-year span.

“The UAE airlines are a reference in the commercial aviation market providing a major hub in the GCC conveniently connecting to all continents. They have wisely invested in aircraft and airport facilities to increase capacity, for the UAE to handle more than 250 million passengers annually, until 2020,” said Ismail.

· abdulbasit@khaleejtimes.com

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