KUALA LUMPUR: UMW Holdings Bhd
, through its unit UMW Aerospace Sdn Bhd, has allocated RM750 million for capital expenditure over the next two-and-a-half years.
President/Group Chief Executive Officer Badrul Feisal Abdul Rahim said the funds would come from external and internal sources to undertake the company's expansion into the aviation industry.
"The expansion into the aviation industry is a significant step for the UMW group," he told reporters after the company's AGM on Thursday.
Badrul also said UMW was delighted that the group was the first Malaysian company to become a tier 1 supplier for Rolls-Royce.
It was reported that UMW Aerospace had signed a 25-year agreement, with an option for a five-year extension, with Rolls-Royce Plc in August 2015 to manufacture and assemble fan cases for Rolls-Royce's aero engines.
UMW Aerospace Sdn Bhd had also identified 12 hectares of land in Serendah, Selangor, for a manufacturing plant to produce fan cases for Rolls-Royce's Trent 1000 and Trent 7000 aero engines.
The facility would be the anchor tenant to UMW's proposed Aerospace Hard Metal Manufacturing Park in Serendah. - Bernama
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