Mubadala Investment Company, the Abu Dhabi-based strategic investment firm with US$127 billion in assets, has signed a memorandum of understanding with US industrial conglomerate Honeywell International to partner on launching products and services in the aerospace sector.
The two companies will collaborate to introduce a range of products and services for the manufacturing, development and maintenance, repair and overhaul of aerospace products across the Middle East region, Mubadala said in a statement.
"Mubadala and Honeywell intend to establish Middle East capability for three major Auxiliary Power Units (APUs), including spares pool management, predictive maintenance and associated connectivity," said Badr Al Olama, director of aerospace at Mubadala. "In addition, the alliance intends to explore facilitating aircraft engine and component leasing, as well as next generation air traffic management solutions, and the manufacturing of advanced materials in the region."
The agreement will lead to collaboration between Honeywell and Mubadala units, including Strata Manufacturing, Turbine Services & Solutions and Sanad Aero Solutions.
“As Mubadala continues to invest in an agile and advanced ecosystem of aerospace products and services, our relationship with Honeywell, a Fortune 100 company, gives us access to a leading suite of high-tech offerings that will help differentiate our next phase of growth,” Badr Al-Olama, director of aerospace at Mubadala. “Bringing these regional firsts to the heart of Abu Dhabi’s thriving aerospace hub, alongside a world-class company such as Honeywell, aligns with our commitment to leading-edge, competitive aerospace offerings.”
Mubadala is beefing up its aerospace capabilities as it seeks to create new revenue streams for Abu Dhabi, which is diversifying income away from oil.
“We are proud to work with Mubadala to build local capability through advanced manufacturing and MRO services,” said Norm Gilsdorf, president, Honeywell Middle East, Russia, Turkey and Central Asia, “This alliance represents an important step forward for the regional industry. Together, we can deliver solutions that build a safer, smarter, more sustainable, and more connected world.”