Sanad Aerotech wins $6.5bn Rolls-Royce engine maintenance contract
Agreement will increase Abu Dhabi company's workforce by 42%, to almost 500 engineers and technicians
Sanad Aerotech, a subsidiary of Mubadala Investment Company, won a $6.5 billion contract from Rolls-Royce to service engines powering Airbus A330 jets, tripling the volume of its annual maintenance work.
Under the deal, Abu Dhabi's Sanad will provide maintenance, repairs and overhauls on Trent 700 engines to airlines around the world for nine years, the company said on Monday.
It will service 75 engines a year, up from its current annual workload of 25.
"It's definitely a game-changer,” said Mansoor Janahi, Sanad's chief executive.
"It's significant, not just for us at Sanad but also for Abu Dhabi, because it shows its position as a global aviation hub and a part of the global aerospace supply chain."
Abu Dhabi has been building its aerospace industry, making composite parts for plane makers Boeing and Airbus, as part of its drive to diversify its economy away from oil.
The emirate is home to Etihad Airways, which has Airbus A330s in its fleet.
Sanad signed the contract on the first day of the Paris Air Show, a biennial industry event where major deals are announced.
The agreement allows Sanad to become a Rolls-Royce Trent 700 Authorised Maintenance Centre.
The engines drive more than 800 Airbus A330s operated by more than 80 airlines around the world.
Under a previous deal, Sanad had overhauled more than 90 of the Trent 700 engines since the work began in 2013, and this will jump more than sixfold to 600 engines in the new contract period to 2027.
Sanad will increase its workforce by 42 per cent to almost 500 engineers and technicians to meet the additional workload, the company said.
It is also open to new partnerships as part of its expansion plans.
"We are always looking for new opportunities but there's nothing in the pipeline for the moment," Mr Janahi said.
Its focus now is on improving engineering and technology through the use of blockchain and predictive analytics, he said.
Sanad's other partnerships with engine makers include General Electric to service the GEnx that powers Boeing 787 Dreamliners, and International Aero Engines V2500 engines used on Airbus A320-family jets.
Sanad, previously Aerospace Turbine Services and Solutions, also offers engine maintenance services on narrow and wide-body aircraft including Airbus A320 and Boeing 787, 777 and 747 planes.
It serves a global array of customers from South Korea to Chile.
Updated: June 18, 2019 02:50 AM