Abu Dhabi: Strata’s new manufacturing plant in Al Ain is expected to be a game changer for the UAE’s manufacturing industry as it will allow for an increase in the company’s capacity, according to the firm’s chief executive officer.
The investment could be anywhere between $100 million 9Dh367 million) and $500 million depending on what kinds of parts are manufactured and how big the plant would be, Badr Al Olama said.
“The parts themselves are going to be bigger and complex and they will add more technological capability for us. In essence, it will help gain our credibility among our customers to make sure that not only are we delivering smaller parts that go in the wing but we can actually manufacture larger structure,” he said.
Speaking to Gulf News at the World Economic Forum’s Summit on the Global Agenda, which ended on Tuesday in Abu Dhabi, the CEO said that the plant will allow Strata Manufacturing to increase its technological capabilities, and manufacture larger structures for use as aircraft parts.
The company will be focusing on increasing competitiveness in the next five years, according to Al Olama.
“The next five years will be about competitiveness. How do I make sure that I am competitive such that I compete not against companies in Europe and the US but companies in East Asia. Competitiveness will be the focus of our company in the next five years,” he said.
The company will be targeting revenue of Dh1 billion by 2020 and break even in 2017. The revenues of the company are expected to cross $100 million this year.
“Our plans remain on target. What may change is the order of the customers with the aircraft companies. If Boeing or Airbus reduce the number of aircraft that they will sell that would change the dynamics of our financial figures,” the CEO said.
On partnership with Boeing and Airbus, he said they are their two important customers and are helping the company grow in developing certain capabilities.
“We are on one hand a supplier to Airbus, and work with them as a supplier and make sure that our parts are delivered on time to the satisfaction of our customers. On the other side, they are very good partners for the UAE. They help us in growing to develop certain capability that works on a win-win approach.”
Strata also has plans to open a manufacturing facility in North Africa to cater to the South European markets. He did not give a timeline on when it is going to start.
Strata Manufacturing was established in 2010 as a composite aero-structures manufacturing facility based in Al Ain.
The company is wholly owned by Mubadala, the Abu Dhabi-based investment and development company, and is part of Mubadala Aerospace, Communications Technology and Defence Services.
