Strata, Mubadala Investment Company’s aerospace manufacturing unit, is looking to diversify into the health technology sector, as the Covid-19 pandemic fuels demand for medical equipment.
The company is holding talks with potential partners on seven to eight projects to produce personal protective equipment and medical consumables, chief executive Ismail Abdulla told The National.
It seeks to bring more high-tech manufacturing capabilities to the UAE and a decision on new health technology investment could be reached within three to six months, he said.
“The pandemic is an opportunity only. We are looking at projects for the long term,” Mr Abdulla said.
“We don’t want to do short-term business to address the pandemic. We want to make sure we have the right capabilities in the country [and] we are consulting with entities in the UAE to ensure we bring in what is required by the country and to do it competitively.
“The pandemic is not the main driver. If the pandemic [subsides], will we shut down? No, we are looking at long-term opportunities.”
Strata is the region’s biggest producer of advanced composite aircraft parts and one of the anchors of Abu Dhabi’s economic diversification efforts.
Set up by Mubadala in Al Ain a decade ago to position the UAE in the global aerospace supply chain, the company has billion-dollar contracts with Boeing, Airbus, Italy’s Leonardo and Switzerland’s Pilatus Aircraft.
However, the pandemic has devastated the global aviation industry, forced airlines to ground planes and sent ripples through the global supply chain as travel demand declined. As a result, Mr Abdulla said Strata registered a 40 per cent decline in its order book for aircraft parts.
To generate new revenue streams, the manufacturer is looking to expand into new sectors beyond the aerospace sector. It expects to start production of PPE as demand for medical equipment increases due to the spread of the virus.
“We are pivoting into a new area and believe we can generate some exciting opportunities to bridge that 40 per cent reduction in demand,” Mr Abdulla said.
Strata began producing N95 masks in partnership with Honeywell in May and secured enough orders within the country to keep it busy until year-end.
“We are ramping up N95 production for local needs and exports,” he said. “Once local demand is satisfied, we will go international. We will depend on the local market for 10 to 20 per cent of our orders.”
Strata’s pivot to health technology is “in line with the government directive and push to bring some of these capabilities to the UAE”, he said.
“We are knocking on all doors to explore these opportunities.”
Honeywell will have the “lion’s share” of Strata’s health technology projects, Mr Abdulla said, declining to name other potential partners as discussions are still ongoing.
Strata took several other measures to protect its business amid the health crisis.
Mr Abdulla said the aerospace company is in talks with local banks to restructure its debt. However, he declined to discuss the size or tenor of loans as talks are still ongoing.
It also set up a cash-preservation task force to ensure it holds enough resources to navigate the difficult period. This includes delaying capital expenditure on non-essential projects and reducing its operational expenses by renegotiating contracts such as maintenance or logistics.
“It is not about starving the business, it is about aligning expectations,” he said. “Now that the industry is growing at a different pace, we need to revisit capex.”
Strata did not cut any jobs since the outbreak began and has no plans to do so as part of its cash-preservation push, Mr Abdulla said.
Instead, it equipped staff with the skills required to manufacture PPE, with support from Honeywell.
More than half of Strata’s workforce are Emiratis, of which 86 per cent are women. It currently operates below 30 per cent of capacity during each shift to maintain social distancing.
Mr Abdulla noted that plane manufacturers are reviewing business with their global suppliers due to the pandemic but said he is bullish about air travel demand.
He expects air travel demand to recover within three to five years to pre-coronavirus levels but said that will depend on how quickly the world comes up with a vaccine.
“The industry has strong fundamentals over the long term,” he said.
For now, Strata is seeking a “balanced portfolio” between its aerospace and health tech pursuits, Mr Abdulla said.
“We need to be agile,” he said. “Diversification is very important.”
Your Guide to the Home
- Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
- Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
- Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
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UAE's role in anti-extremism recognised
General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.
He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.
"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.
He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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