Abu Dhabi aircraft parts business Strata expects revenue from existing operations to more than triple by 2020 and plans to open a second factory in the United Arab Emirates in 2017, its chief executive said on Monday.
Strata, the manufacturing arm of Abu Dhabi’s Mubadala Aerospace, is the Gulf’s sole aircraft parts maker and is aiming to join the ranks of the leading global players with its planned expansion.
Revenue at Strata will top Dhs300 million ($81.7 million) this year, CEO Badr al-Olama said, adding that the company will create at least 600 jobs when the second plant opens, nearly doubling its current workforce.
“We will see revenues of Dhs1 billion by 2020 from plant one only,” Olama, who is also a senior vice-president of Mubadala Aerospace, told reporters on the sidelines of a conference.
That forecast is based on Strata’s orders and aircraft sales, Olama said. Strata builds components, including fuselages, for leading planemakers Airbus and Boeing among others.
Strata’s second factory will be located near its existing plant in the desert oasis town of Al Ain but will be more automated and produce at least two or three product lines, Olama said.
The company is in talks with Boeing and Airbus to set up a facility in either America or Europe, Olama added, pointing out that it it needs to achieve netween $1 billion and $2 billion in annual sales to be counted among the top three parts makers.
“We are aiming to achieve that after 2023,” he said.