Abu Dhabi’s AMMROC Inks Dhs2.3bn Deal With UAE Armed Forces

Abu Dhabi-based company Advanced Military Maintenance, Repair and Overhaul Centre (AMMROC) announced that it has won a Dhs2.3 billion contract from the joint aviation command (JAC) of the UAE Armed Forces to provide maintenance, repair and overhaul (MRO) services.

The contract will be for 21 months and will allow JAC to remain focused on the operation and deployment of the UAE’s military aircraft, the company said in a statement.

The new deal is also expected to facilitate a performance-based logistics (PBL) arrangement between the two organisations when AMMROC opens a new MRO centre at Nibras Al Ain Aerospace Park.

AMMROC, which is a joint venture between Mubadala, Sikorsky Aerospace Services and Lockheed Martin, added that PBL arrangements represent a significant change in the approach to supplying military aviation MRO services in the UAE.

Under this model, all material and maintenance activity are provided under a cost per flight hour model that provides greater flexibility to the armed forces while improving efficiency, the statement said.

“This contract represents the continuing fulfilment of UAE Armed Forces’ longstanding vision to maintain all rotary and fixed wing aircraft through outsourced experts, enabling core JAC personnel to focus on operations and deployment,” said Fahed Ghareeb Al Shamesi, CEO of AMMROC.

The UAE has been investing heavily to ramp up its MRO facilities with a number of deals announced at the recently concluded defense exhibition IDEX 2015.

Another firm Abu Dhabi Ship Building (ADSB), which specialises in providing construction and repair services for naval military vehicles, announced that it signed a deal with defense equipment maker Thales.

As per the deal, ADSB will collaborate with Thales to provide life-cycle management solutions for ships for a number of defense stakeholders in the region.

Defense related deals worth Dhs2.5 billion were signed on February 25, the concluding day of IDEX, organisers said.

Other commercial contracts announced during the show include a Dhs24 million contract between the UAE Armed Forces and Abu Dhabi Autonomous Systems Investments Company to provide spare parts for unmanned vehicles.

The UAE Armed Forces also signed a Dhs18 million deal with Thales to purchase spare parts for military devices.

The Emirates’ military authorities are also finalising a Dhs192 million deal with American firm ATK for an aircraft military system, IDEX organisers said.

Overall, the UAE raked up deals worth Dhs18 billion at the event, up 30 per cent from its spend in 2013.

The Gulf country also sealed a Dhs2.27 billion deal with Boeing for the purchase of two C-17 military transport planes.

Other major contracts announced during the week-long event were a Dhs3.75 billion deal with Airbus and Thales to purchase two satellites and their land control stations, and a Dhs732 million contract with AgustaWestland to buy nine AW139 helicopters.