Paris, France -- GE (NYSE: GE) and Abu Dhabi's Mubadala Development Company today signed an extensive agreement that expands GE's global network of engine maintenance, repair and overhaul (MRO) providers in the Middle East and further advances Mubadala's plans to build a global MRO network centered in Abu Dhabi.
The agreement finalizes one of the remaining components of the broader strategic partnership forged last year between Mubadala and GE, encompassing a broad range of initiatives including commercial finance, clean energy research & development, industry, corporate learning and aerospace.
GE Aviation and its affiliates will provide technical support and services to Mubadala's affiliate MRO companies SR Technics and ADAT, including technical and corporate training support, comprehensive material support, and the granting of licenses to service certain GE engines.
GE Vice Chairman John Rice said, "Our long-term partnership with Mubadala draws on a joint commitment to, and core expertise in, high-growth businesses like aviation and clean energy. Most importantly, both our companies regard knowledge and the development of executive and scientific talent as a competitive advantage."
"A year ago we forged a strategic agreement that would leverage Mubadala's deep experience and exciting vision for growth with GE's unique financial and industrial capabilities," added Rice. "Today's announcement realizes an important part of that vision, allowing both companies to capitalize on what we believe are significant, long-term opportunities in the Middle Eastern aviation market."
Mubadala's Aerospace Associate Director, Homaid Al Shemmari, commented, "The partnership between Mubadala and GE exemplifies the strategy Mubadala Aerospace is taking to building Abu Dhabi's aerospace industry, forming partnerships based on mutual benefit and creating opportunities for Abu Dhabi."
He added: "Part of our ambition is to build a global MRO network and, the partnership with GE significantly advances Mubadala's MRO capabilities in this area. At the same time it provides an essential expansion to GE's network in the region."
Key components of the industrial cooperation include:
Abu Dhabi Aircraft Technologies (ADAT) to become world's first MRO Network provider for GEnx engines.
ADAT is focused on growing the business around next generation products and technologies, and the GEnx engine represents a giant leap forward in propulsion technology. GE will designate ADAT as a network provider in the Middle East and North Africa (MENA) for its next generation GEnx-1B and -2B engines. The shop will become fully operational in 2013 and support the growing fleet of GE engines in the MENA region. That includes Etihad Airways, a key customer of ADAT which yesterday confirmed it has selected the GEnx to power its new fleet of 35 B787 aircraft.
ADAT to acquire GE90 modular and on-wing support capability.
The Middle East has the highest global concentration of GE90 Engines, and this presents a mutual opportunity for GE and ADAT to service the region's GE Engine operators. GE will support ADAT in obtaining capability to perform modular assembly/disassembly for Etihad Airways' fleet of 36 GE90-115B engines (current and on order). In addition, GE will designate ADAT as a member of its global network of On-Wing Support (OWS) providers for GE90-115B engines.
GE to provide Mubadala's affiliate MRO companies engine overhaul and material support for CFM56 & CF6 engines.
GE and CFM International, a 50/50 joint company between GE and Snecma (SAFRAN Group), will provide ADAT (CFM56-5A/B/C, CF6-50/80C) and SR Technics (CFM56-5B/C) with engine overhaul and technical support. This will include sharing of best practices through Six Sigma to further improve ADAT's and SR Technics' shop productivity and reduce costs. In addition, GE and Mubadala confirmed a 10-year OnPoint Solutions agreement to provide its respective MRO companies with new and used serviceable parts, component and accessory repair for the above mentioned engines.
Corporate and technical training for ADAT and SR Technics
Mubadala aerospace companies will utilize the Abu Dhabi Leadership Development Center, the Mubadala GE project which will form part of GE's Global Learning Network. Through this centre and other GE venues, GE will offer Mubadala aerospace companies its world-renowned courses in executive leadership and management level training. GE will provide technical training for employees of ADAT and SRT.
This announcement comes less than three weeks after GE and Mubadala signed agreements relating to the joint venture in Abu Dhabi to establish a USD 8 billion commercial finance company, and to establish the Abu Dhabi Leadership and Development Centre,
In addition, as of March 31, 2009, Mubadala had accumulated 65.8 million shares in GE (approximately 0.62%), in line with its commitment to become a top-ten shareholder in GE as conditions allow.
Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of the Emirate of Abu Dhabi. The company's commercial strategy is built on the management of long-term, capital-intensive, investments that deliver not only strong financial returns but tangible social benefits for the people of Abu Dhabi. In doing so Mubadala is expanding the economic base of the Emirate and in turn significantly contributing to the growth and diversification of the Abu Dhabi economy.
Mubadala brings together and manages a multi-billion dollar portfolio of local, regional, and international investments, projects and initiatives. The company works independently and as an active and diligent partner with leading global organizations to deliver projects across a wide range of industry sectors including energy and industry, healthcare, infrastructure, real estate and information communications and technology. Unbound by convention, Mubadala's dynamism and innovation are complemented by a focused and diligent approach to realizing value.
Mubadala sole shareholder is the Government of the Emirate of Abu Dhabi. For more information about Mubadala, its partnerships and activities please visit www.mubadala.ae.
About GE Aviation
GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as avionics, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings. For more information, visit us at www.ge.com/aviation.
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