Rolls-Royce, Mubadala to build aero manufacturing facility

Both companies announce plans for a manufacturing facility and an approved maintenance centre

Tags: ManufacturingMergers and acquisitionsMubadala Development CompanyRolls Royce Motorcars (Limited)
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Rolls-Royce, Mubadala to build aero manufacturing facility Mubadala will create a purpose-built facility that will carry out work on the Trent XWB, an aero engine that powers the Airbus A350 XWB (Getty Images)
By  Aasha Bodhani Published  July 14, 2016

Rolls-Royce and Mubadala Development Company have revealed plans to build a manufacturing facility that will develop aero engine components, based in Abu Dhabi.

The strategy is part of Rolls-Royce's commitment to develop a competitive, capable and flexible Trent Service Network to support the growing number of Trent engines that will enter service as Rolls-Royce increases its installed base to more than 50% of the wide-body passenger market. 

The announcement also includes details on an Approved Maintenance Centre (AMC), which is the second AMC that Rolls-Royce does not hold an equity stake.  

Mubadala will create a purpose-built facility that will carry out work on the Trent XWB, an aero engine that powers the Airbus A350 XWB. Rolls-Royce is also creating a competitive global supply chain within growth regions and key strategic markets and which gives the flexibility required as Rolls-Royce increases engine production.

The Middle East region is forecast to have one of the world's largest concentrations of Trent XWB engines with more than 20% of the 1,600 sold to date, due to be operated by airlines in the region, including the 62 A350s to be operated by Abu Dhabi-based Etihad Airways.

Homaid Al Shimmari, Mubadala, chief executive officer, Aerospace & Engineering Services, said: "The creation of a new Approved Maintenance Centre and an engine component manufacturing facility are both key milestones in the creation of a leading global aerospace hub in Abu Dhabi, further driving economic diversification."

Eric Schulz, Rolls-Royce, president, Civil Aerospace, said: "We're pleased to work with Mubadala as it creates a global aerospace hub in Abu Dhabi. The creation of a new Trent XWB Approved Maintenance Centre, alongside manufacturing capability in the UAE, further demonstrates our commitment to this region, which is now so critical to the growth of our business."

The AMC will service up to 150 engines a year in a new facility located at the Nibras Al Ain Aerospace Park, which is expected to be operational in 2021. The AMC agreement will be finalised in the second half of 2016, and construction of the AMC facility is expected to begin as early as 2017. 

The manufacturing centre at the same site will produce discs for the Trent XWB, with capability to make similar parts for other Trent engine types. It is expected to start operations in 2018. Rolls-Royce and Mubadala have also reached agreements to enter into a number of manufacturing development projects to support Mubadala's goal to become a Tier 1 aerospace industry supplier.

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