Mubadala Investment Company’s Sanad Group has signed a five-year contract extension to provide maintenance, repair and overhaul services for Asiana Airlines.
Under the agreement, worth $145 million (Dh532 million), Sanad will maintain 30 per cent of the V2500 engine fleet that powers the South Korean airline's Airbus A321 aircraft at its facilities in Abu Dhabi.
Sanad first signed the agreement with Asiana Airlines in 2018.
The V2500 engine, produced by International Aero Engines, powers a significant fleet of the 7,600 Airbus A320 and A321ceo aircraft worldwide.
Sanad, which has provided maintenance, repair and overhaul (MRO) services for more than 35 years, has serviced more than 600 V2500 engines since 2012.
Its current client base includes more than 30 airlines and 10 strategic partners from across the Middle East, Europe, Africa, the Americas and Asia.
“Sanad's unique standing as the sole V2500 full overhaul MRO centre in the Middle East has been pivotal in supporting V2500 customers worldwide since 2012,” said Mansoor Janahi, managing director and group chief executive of Sanad.
“With over 250 inductions in the past five years, we demonstrate our profound expertise in the aviation MRO sector.”
Consulting firm Oliver Wyman said the global MRO sector will grow almost 3 per cent in 2024, reaching $104 billion, and will expand 1.8 per cent annually on average to 2034.
In the Middle East, it is expected to grow at an annual rate of 2.3 per cent to just over $15 billion by 2034, driven by order book growth and investment in MRO facilities.
Global aviation and aerospace hub
Sanad was formed in 2019 after Mubadala merged three of its units – Sanad Aerotech, Sanad Powertech and Sanad Capital. It provides financing, leasing and maintenance services to the global aerospace, energy and industrial sectors.
Sanad and Strata, based in Al Ain, are key pillars of Abu Dhabi's ambitions to become a global leader in the aerospace industry.
Strata manufactures aircraft components and has billion-dollar contracts with Boeing, Airbus, Leonardo in Italy and Switzerland’s Pilatus Aircraft.
Speaking in 2022, Badr Al Olama, the then executive director of UAE clusters at Mubadala Investment Company, said both companies were “on track to become global leaders”.
In 2023, Strata reported an increase of more than 40 per cent in shipments to the global aerospace and advanced industry sectors.
Strata dispatched 773 shipments, comprising 7,880 components, to major aerospace companies such as Boeing, Airbus, Leonardo, and Pilatus.
Since it was formed in 2010, Strata has delivered 5,902 shipments, encompassing a total of 83,236 components.
Last year, Strata and industrial machines manufacturer John Cockerill signed an agreement with Adnoc to manufacture electrolysers in the UAE for local use and export.
Green hydrogen production involves water electrolysis, where an electrolyser uses electricity to separate water molecules into hydrogen and oxygen.
This process enables the capture and storage of hydrogen, which can then be used as a fuel source.
Hydrogen is expected to become a critical fuel as economies and industries transition to a low-carbon world.
