KUALA LUMPUR: The UMW group has proposed to establish an Aerospace Hard Metal Manufacturing Park in Serendah, Selangor, where it will site its manufacturing plant to produce fan cases for Rolls-Royce plc’s aircraft engines..
UMW Holdings Bhd said in a statement that the plant, to be built on 30 acres by its unit UMW Aerospace Sdn Bhd, would act as the anchor tenant.
In August last year, UMW Aerospace Sdn Bhd has signed a 25-year agreement with Rolls-Royce, expiring Dec 31, 2040 (with an option to extend for five years) to manufacture and assemble aerospace engine component products.
The contract was reported to be worth RM830mil.
UMW told Bursa Malaysia then that it would build a facility capable of producing, manufacturing, assembling and supplying fan cases for Rolls-Royce’s Trent 1000 engines, which are used by Boeing’s 787 Dreamliner.
In its statement on Thursday, UMW said the facility would also make fan cases for Trent 7000 aero engines, the exclusive engine for the Airbus A330neo.
“The earthworks on site are progressing as planned and UMW is currently on course to deliver its first unit of Trent 1000 fan case aero engines to Rolls Royce’s assembly facility in Seletar Aerospace Park, Singapore, upon receipt of the first purchase order targeted for October 2017,” the company said.
UMW will also build a pre-production and technology development centre adjacent to the fan case manufacturing facility in Serendah to support its innovation objectives by exploring future manufacturing processes and automation technologies.
UMW Holdings Bhd president and chief executive officer Badrul Feisal Abdul Rahim said in the statement: “We are positioning ourselves into the field of high value manufacturing. We believe that the fan case project will enable us to strengthen our engineering capabilities and establish a strong platform for delivering future value creation for the group.”
UMW noted that Rolls-Royce’s strategy to create a world-class, competitive global supply chain in the region coincided with Malaysia’s plans to establish a strong aerospace industry, as envisaged by the National Aerospace Blueprint 2016-2030. The country aspires to be a maintenance, repair and overhaul South-East Asian hub for the aerospace sector.
“The deal includes a manufacturing know-how and technology sharing programme with Rolls-Royce engineering team in the United Kingdom,” it said.
UMW Aerospace is the first Malaysian-based company to become a Tier 1 supplier to Roll-Royce, which is one of the world’s leading producers of aero engines for large civil aircraft and corporate jets.
UMW Holdings shares gained 2 sen to close at RM6.95 on Thursday.
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