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MIDA Welcomes More OEMs, Tier 1 Firms To Aerospace Sector

MIDA Welcomes More OEMs, Tier 1 Firms To Aerospace Sector

The Malaysian Investment Development
Authority (MIDA) welcomes more original equipment manufacturers (OEMs) and Tier
1 companies to be involved in the aerospace industry, said its Chief Executive
Officer, Datuk Azman Mahmud.

He said Malaysia’s aerospace sector has tremendous opportunities and has been
identified as a strategic industry under the Malaysian Aerospace Blueprint and
11th Malaysia Plan.

“Hence, MIDA welcomes more OEMs and Tier 1 companies to be involved in the
industry. To develop the aerospace industry we need to create a strong
ecosystem spearheaded by major aviation companies,” he said at the
ceremony to deliver the first fan case produced for Rolls-Royce by UMW Holdings
Bhd’s unit, UMW Aerospace Sdn Bhd, in Serendah, Selangor.

He said UMW Aerospace aimed to achieve full-production capacity of 250 cases
annually in 2020. The engine fan casing, one of the largest and most complex
parts of the engine to manufacture, would bring along many spill-over effects,
said Azman.

“We are excited that this project will provide 166 high-income job
opportunities for Malaysians, whereby the local workforce will be able to
migrate to higher value manufacturing in precision machining and assembly of
aerospace parts,” he said.

Presently, Malaysia is home to 66 companies involved in maintenance, repair and
overhaul (MRO) activities, 33 in aero-manufacturing, 25 in education and
training, 11 in systems & integration as well as engineering & design.

In addition to UMW, local players like SME Aerospace, CTRM Aero Composite,
Sepang Aircraft Engineering, Airod and Malaysian Aerospace Engineering had
demonstrated their capabilities in meeting stringent demand of the OEMs and
thus are successfully involved in the global supply chain.

The industry is projected to contribute revenue of RM20.4 billion for MRO,
RM21.2 billion for aero-manufacturing and RM13.6 billion for engineering and
design services by 2030, he added.

Source: Bernama

29 November 2017