issue - STRATA Manufacturing

STRATASPHERE
January – 2016
ISSUE 10
Editor in chief:
Mohammed Shaban
Assistant editor:
Maitha Al Eisaei
INDEX
Message from the CEO
Page 04
Financial Update
Page 04
Mubadala Names New Senior Executives
to Drive Strata ’s Growth
Page 05
Strata driving growth of aerospace
manufacturing across UAE
Page 06
2015 HIGHLIGHTS
Page 07
Abu Dhabi Aerospace Week
Page 08
Strata Embraces Change in the Digital Age
Page 09
Creating a Culture of Quality
Page 10
Programs Update
Page 11
Strata’s Events
Page 12-11
Strata’s Visitors
Page 14-15
STRATAUAE
STRATAUAE
STRATAUAE
2
Strata Manufacturing PJSC
www.strata.ae
communications@strata.ae
+971 3 7071300
January 2016 ISSUE 10
3
Message from the CEO
Values are at the core of everything we do,
and they guide us to make the right decisions,
time and again. They set our company’s
culture, they give us the common purpose
and understanding required to build a great
workforce, and they reinforce our commitment
to our key stakeholders – our shareholders,
our customers and our suppliers.
In short, values hold the key to our success, so
it’s important to get them right.
values to go beyond our workplace and
touch our lives to help drive our passion and
dedication for excellence.
Colleagues, a world-class organization is built
on a solid foundation of core values – values
that will inspire action, teamwork, integrity
and outstanding results. Upholding our soon
to be launched core values is one way of
demonstrating our commitment to Strata and
key stakeholders.
Strata’s Communications Team is reviewing
the company’s core values in line with our
vision, mission and overall business strategy.
We will adopt values that truly capture the
essence of our company, and we want these
By: Badr Al Olama
CEO, Strata
Mubadala Names New Senior Executives
to Drive Strata’s Growth
Strata Announces 44% Revenue Growth
in First Quarter of 2016
Strata’s first quarter financial results for 2016 have been released,
with a 44% increase to AED 92 million, compared to AED 64 million
during the same period last year.
By the end of the first quarter, Strata delivered 82 shipsets consisting
of 1,584 composite aero-structure parts to OEM’s around the world.
Revenue by Program
A330 FTF
Mubadala has made a range of new leadership
appointments at Strata. Cyril Arar has been
appointed as the new chairman of the board
of directors; Ismail Ali Abdulla becomes deputy
chief executive officer; and Murray Hundleby
becomes general counsel.
Arar has held various roles within the aerospace
industry, most recently within Mubadala’s
Aerospace and Engineering Service platform
where he leads the unit’s defense services
vertical. Prior to his role within Mubadala, he
served as the CEO of Al Taif Technical services
for over seven years and also as a lieutenant
colonel in the UAE Armed Forces, specializing
in life cycle management of land systems.
decade of experience in finance and business
development within the aerospace industry.
In his new role, Abdulla will be responsible
with building up capabilities for Strata’s
next phase of development and will also
be responsible for guiding the commercial
department, building management services,
and overseeing business performance and
risk management. He is a senior member
of Mubadala’s Aerospace and Engineering
Services platform, where he previously led the
development of the Nibras Al Ain Aerospace
Park. Ismail brings to the role nearly a
Hundleby has nearly 30 years of international
industry experience across aviation, defense
and manufacturing. With a proven ability to
add strategic and financial value to complex
businesses, he was most recently general
counsel for Peabody Energy Australia,
preceded by a decade long stint with the
Boeing Company operating for periods at both
its manufacturing headquarters in Seattle, US
and in Australia.
A330 Spoiler
A380 FTF
8%
A330 Aileron Assembly
12%
4%
7%
16%
B777 Ribs
B787 Ribs
ATR Rudder
A350 - 900 FTF
20%
A350 - 1000 FSF
28%
4
January 2016 ISSUE 10
5
Strata driving growth of aerospace
manufacturing across UAE
2015 HIGHLIGHTS
• Mubadala’s aerostructure manufacturer contributing to Abu Dhabi Economic Vision 2030
• Innovation, digitization and global value chain development to drive future growth
Strata’s key business highlights for 2015 as
the company continues to focus on expanding
its presence across the aerospace industry
through the development of local and global
supply chains and the expansion of its client
base.
and now more than 50% of Strata’s suppliers
are based in the UAE and have developed
extensive knowledge and experience of the
aerospace industry. Strata also increased
the spend on local procurement to almost 40
percent, an increase of 10 percent from 2014.
Strata’s revenue for 2015 crossed 400 million
dirhams, up 27 percent on 2014 figures.
During the year, Strata delivered over 433
shipsets, consisting of more than 7,511 parts
– representing 29 percent growth in the total
number of parts manufactured in 2014. Strata
also embarked on an expansion project to
increase the shop floor area to 31,500 m2,
adding a new extension of 10,000 m² of
usable production space to accommodate
new work packages.
Deal highlights include:
Commenting on the announcement,
Badr Al Olama, CEO of Strata, said:
“For the last five years we’ve focused on
developing Strata’s capabilities in order to
become a globally competitive aerostructures
manufacturer in line with the Abu Dhabi
Economic Vision 2030, and we are extremely
proud of our achievements to date. In 2016,
we will embark on a year of transformation.
This year we will accelerate into the next stage
of growth – driven by innovation, digitization
and the further development of global value
chains.”
6
During 2015, Strata signed a number of
deals that further drove the company’s global
competitiveness and supply chain capabilities.
Strata also placed a strong emphasis on
growing its local supplier network in 2015,
• First international outsourcing agreement, valued at approximately USD120
million to subcontract its ATR vertical fin
and rudder programs to GSE Industria
Aeronautica srl in Italy
• Sole supplier contract to provide aileron
assemblies to Airbus for the A330 and
A330neo, making Strata the single source
supplier of ailerons assemblies to Airbus for
its A330 programs in a contract worth more
than US$250 million.
• A multimillion US dollar contract to
manufacture Airbus A350-1000 Flap Support
Fairings (FSFs) from Swedish company Saab
Aerostructures through 2023.
With the focus firmly on future growth,
Strata also announced the creation of a
new Research & Development (R&D) unit
to support its growing portfolio of products
and capabilities to develop manufacturing
technologies for current and future work
packages.
The R&D initiatives will be run in collaboration
with Strata’s international partners and local
research facilities established within leading
UAE academic institutions.
“Our new R&D offering promotes
technological development within the
aerospace industry and will strengthen
Strata’s global competiveness – paving the
way for us to become one of the top three
composite aerostructure manufacturing
companies globally,” Al Olama said.
Strata continues to invest in building a leading
Emirati workforce in the aerospace industry,
it celebrated the growth of its national
capabilities within one of the most complex
industries worldwide, Strata currently has 19
Emirati female Team Leaders from a group of
40 team leaders and 2 Emirati females within
a group of 8 Team Supervisors. The company
also celebrated in 2015 the graduation of
41 UAE nationals from the eighth and ninth
classes of its Aerostructures Technician
Training Program.
Created in partnership with the United Arab
Emirates University (UAEU) and Lockheed
Martin in 2010, the program was established
to develop the knowledge base and skill set of
young Emirati technicians in a hands-on and
engaging environment.
Strengthening the program further, The
Ministry of Social Affairs and Strata
signed a Memorandum of Understanding
(MoU) to partner in the advancement and
skill development of UAE Nationals. The
partnership aims to build a leading Emirati
workforce in the aerospace industry, and
strives to enhance the standard of living for
people receiving social support, by providing
them with professional career opportunities.
January 2016 ISSUE 10
7
Abu Dhabi Aerospace Week
About Abu Dhabi Aviation and Aerospace Week
The inaugural Abu Dhabi Aviation and
Aerospace Week (ADAAW) was held from
March 6-10, 2016 under the patronage of
His Highness Sheikh Mohammed bin Zayed
Al Nahyan, Crown Prince of Abu Dhabi and
Deputy Supreme Commander of the UAE
Armed Forces and in collaboration with the
Armed Forces General Headquarters.
ADAAW brought together a collection of worldclass and innovative events, exhibitions,
conferences and seminars across all aspects
of aviation and aerospace.
Strata’s presence during the Global Aerospace Summit
The third edition of the Global Aerospace
Summit (GAS) was held during ADAAW from
March 7-8, 2016 in Abu Dhabi. The summit
is one of the most significant international
forums for decision makers in the global
aerospace, aviation, defense and space
sectors. This year’s overarching theme was
innovation and attendees gathered to discuss
key challenges facing the aerospace, aviation,
space and defense industries.
8
A key highlight for Strata was its participation
at the U.S.-U.A.E. Business Council & AIA
Global Aerospace Summit Reception which
highlighted bilateral aerospace & defense
relationships in the industry.
The event welcomed senior business
executives and government officials on
Sunday March 6, 2016 for an exclusive
reception honouring Emirati and U.S.
participants at the 2016 GAS. Held at the
Ritz Carlton Abu Dhabi, the reception featured
keynote remarks by Badr Al-Olama, Senior
Vice President for Mubadala and CEO of Strata
Manufacturing PJSC, the Honorable Barbara
A. Leaf, U.S. Ambassador to the U.A.E., and
David Melcher, President & CEO of AIA.
Badr Al Olama, STRATA CEO’s keynote
remarks stressed the importance of the
summit in bringing stakeholders together to
invest in solutions for challenges impacting
the aerospace industry. He underscored the
importance of Strata, the only manufacturer
of aircraft composite parts in the Arabian
Gulf, in furthering the Emirate’s economic
diversification plan and highlighted that
Strata’s construction of a second plant in
Al-Ain will develop a new generation of
aircraft components. He also emphasized
the important steps taken by Strata and their
U.S. partners such as Boeing to enhance the
robust relationship between U.S. and U.A.E.
businesses.
Strata’s CFO, Amer Siddiqui speaks at the Global Aerospace Summit
Amer Siddiqui, Strata’s CFO spoke at a
panel on why the aerospace industry is slow
in adopting new technology. The session
discussed how manufacturers are continually
required to upgrade their technologies to
produce products that meet the client’s needs
and business targets. As well as innovating
themselves. The session also discussed
the changes in aerospace manufacturing
and how new technologies are affecting the
advancement of innovation and efficiency.
Strata’s presence during
Abu Dhabi Air Expo
Starta was honoured by the gracious visit
of His Highness Sheikh Hamed bin Zayed
Al Nahyan, Chief of the Abu Dhabi Crown
Prince’s Court during the opening of the Abu
Dhabi Air Expo 2016.
Abu Dhabi Air Expo was dedicated to
general and business aviation. The Exhibition
brings together major players in aviation in
one location, Al Bateen Executive Airport,
Abu Dhabi. During the exhibition, Strata
demonstrated to the public the aircraft parts
it manufactures and its role in developing the
aerospace industry in UAE.
Strata Embraces Change in
the Digital Age
Strata is part of a digital revolution. Led by
Jonathan Bray, the Digital Manufacturing and
Innovation Department (DMI) is steering the
company towards a future that is paperless,
fully digital and tech-savvy. The department’s
five-year goal is to implement a collaborative,
cross-functional working environment for all
employees. It is also working to decrease
lead times and improve product quality by
standardising and simplifying manufacturing
processes across all departments.
The Digital Manufacturing and Innovation
Department is divided into two teams: the
Product Lifecycle Management team (PLM)
and the Numerical Control team (NC). The PLM
team is introducing systems including Enovia,
CATIA and Delmia to help integrate the people,
data and processes involved in the lifecycle
of any Strata product. PLM is also capturing
real time data to improve communication and
analysis; this will ultimately reduce risk and
increase profit.
The DMI has launched two key initiatives: The
Digital Smart Factory and Next Generation
Manufacturing.
The Digital Smart Factory:
Delivering a new way of working
Next Generation Manufacturing: 3D
printing & additive manufacturing
Thanks to the advent of tablets and digital
kiosks, a paperless and mobile work
environment is within reach. The DMI is
working to remove paper-based workflows by
introducing industrial touchscreen monitors
and shop floor touch computers; these
will be used to display 3D work instruction
sheets, live data, manufacturing updates
and much more. Also, an electronic signature
and approval process will be implemented
to help simplify and streamline all business
procedures.
3D printing technology is transforming how
the manufacturing industry operates – and
Strata is embracing this rapidly evolving
technology to produce parts faster and more
efficiently.
The DMI is transforming Strata into a digital
workplace with the ANDON alert system,
which instantly notifies the engineering,
logistics and maintenance teams of any
problem during the manufacturing process.
After testing in the A330 Aileron assembly
area, ANDON will be rolled out across the
company by the end of 2016.
Since 2014, the DMI team has been using a 3D
printer to print complex shapes that cannot be
produced by traditional methods. Led by Huda
al Nuaimi and Darrell Monaghan, the team is
also using a 3D printer to replace aerospace
consumables with 3D parts; this has saved
both time and money. For example, assembly
tooling aids for the A350-900, which originally
cost Dhs.1,000 each, have been printed at a
fraction of the cost and in greater volume.
Currently, the DMI is working with United Arab
Emirates University (UAEU) interns to ‘create’
a 2D aircraft drawing, using CATIA design
applications and a 3D printer. Going forward,
the DMI team will carry out a case study on
consumable tooling in fabrication, assembly
and non-destructive testing to identify the
benefits of 3D printing for Strata in the future.
January 2016 ISSUE 10
9
Program Update
Airbus A330 NEO FTF
The Strata team are currently manufacturing the first parts for the
A330 New Engine Option (NEO) program. The parts will be tested
in Strata’s laboratory to confirm they are meeting the engineering
specification. Following those tests, Strata will produce 3 shipsets
for flight trials this year.
SABCA/ Airbus A350 - 900 FTF
The SABCA work package is now in production and ramping up to
meet the required production rate.
SAAB/ Airbus A350 - 1000 FSF
The first set of fixed fairings have been completed and sent to
SAAB. The movable fairings are now in work and due to complete
and be dispatched to SAAB for fitment to the flight test aircraft.
Airbus A330 Aileron NEO
The Aileron NEO project is progressing. Strata recently received
the new tooling required for the project. There are four new layup
mold tools, four new trim fixtures and modification kits to the
existing assembly tooling. The team will start the qualification
process and deliver the new ailerons later this year.
Boeing 777/787 Ribs
The 777 and 787 ribs packages continue to deliver on time
according to the highest industry standards.
Creating a Culture of Quality
What can explain Strata’s global success
over the past few years? Strategy, yes.
Talent, definitely. The key to our success,
though, also lies in our culture of quality.
Strata fosters a culture where employees
‘live’ quality in everything they do. We
encourage our teams to embrace quality in
the workplace and at home. We empower
employees to generate initiatives that
focus on improving our quality of service.
Also, we inspire our workforce to feel
passionate about quality as a personal
value. In short, Strata employees can see,
hear, feel and talk about quality all around
them.
10
Quality is embedded deep within Strata’s
culture. Employees are made to feel in
control of their jobs and given a sense of
pride and ownership of their work. They are
also encouraged to strive for excellence
and deliver quality products and services
that exceed client requirements. This is all
made possible because Strata promotes
open communication, collaboration with
other departments, and respect and trust
between employees.
and legislations, and meet, if not exceed,
international standards for quality.
Strata is focused on working towards a key
set of high quality deliverables:
In 2016, we have achieved the following:
• A workforce of proud and engaged employees
• Clearly defined roles and responsibilities for all departments and employees
• Performance targets for all departments and employees
• Continuous career development for all employees
• Employee satisfaction and pride in their work
• Best practice recruitment procedures
To help foster a quality of culture, we are
committed to providing a safe, healthy
and secure workplace for our employees.
We comply with all industry regulations
• QMS EN/AS9100 annual surveillance audit – without findings
• NADCAP Composites annual audit
• HSE annual surveillance audit on ISO14001 and OHSAS 18001
• Completed Airbus qualification for major composites repairs
• FACC delegation and Strata employees signed EASA Form 1 (Airworthiness Certificate)
•
Aysha Khalifa Al Kaabi became the first UAE National Strata NDT inspector to complete the X-Ray Level 2 training, in accordance with the international aerospace standard EN 4179
January 2016 ISSUE 10
11
Strata’s Events
Boeing and Strata celebrate delivery of 100th 777 Empennage Rib shipset - 6 March, 2016
Strata participates at the Global
Women’s Forum
23 - 24 February, 2016
Strata Barbecue - 21 January, 2016
Strata surprised its employees with a barbecue at the Al Ain International Airport Park.
Strata wins Bridge of Excellence
award at AmCham Abu Dhabi
Gala - 30 January, 2016
Strata won the Bridge of Excellence
Award at the 2016 AmCham Abu
Dhabi Excellence Awards Gala. The
Award recognizes an organization that
demonstrates commitment to cross-border
business alliances between the United
Arab Emirates and the United States of
America, and bridges the gap in bilateral
trade relations that contributes to building
local capabilities and a knowledge based
economy.
Strata participated at the Global Women’s
Forum and showcased its manufacturing
techniques
The AmCham Abu Dhabi Excellence
Awards Gala is a celebration of the most
distinguished companies, institutions,
and entrepreneurs in Abu Dhabi.
These prestigious awards reflect the
contributions of best-in-class American
and Emirati individuals and organizations
to business in the UAE and U.S.-UAE
commercial relations.
Strata and Boeing celebrated the delivery of 100th 777 Empennage Ribs shipset. The delivery of the 100th Empennage Rib shipset is an
important milestone in reinforcing the value and capability Strata offers Boeing and its airline customers. In 2012, Boeing and Mubadala
announced a 10-year direct contract for Strata to produce carbon fiber composite 777 empennage ribs and 787 vertical fin ribs making
Strata Boeing’s first direct composites supplier in the Arab world.
Strata featured as Platinum
Sponsorship of UAE-UK Pioneers
Forum - 12 March, 2016
Strata was a platinum sponsor of the third
annual UAE-UK Pioneers Forum held in
London, UK. Arranged by the UAE Embassy in
the United Kingdom, the forum gave students
studying in the United Kingdom and European
Union a chance to interact with business
leaders and understand the job opportunities
available to them in the UAE.
In line with Abu Dhabi’s Economic Vision 2030
to promote economic diversification, Strata is
contributing to a diversified and sustainable
knowledge-based economy, with a focus
on developing Emirati talent – at home and
abroad.
During the event, Strata interacted with
students to promote careers in the aerospace
industry – explaining the high growth of
manufacturing composite aircraft components
and career development opportunities for
Emirati’s at Strata.
Strata Participates at the Global
Financial Markets Forum
2 - 3 March, 2016
Hosted by the National Bank of Abu Dhabi
(NBAD), Strata participated in The Global
Financial Markets Forum (GFMF). The Forum
represented an opportunity for networking
and growth; an opportunity for developing
interdependencies that broaden our horizons,
unlocking new possibilities for Strata, and the
UAE economy as a whole.
Strata participates at the
Department of Economic
Development Forum
15 March, 2016
Ismail Abdulla, Deputy Chief Executive Officer,
presented Strata’s story and achievements
during an event held by the Department of
Economic Development – Al Ain Branch.
12
Mother’s Day - 21 March 2016
Strata’s Walk-a-thon - 25 February, 2016
Strata held a walk-a-thon for its employees to promote a healthier lifestyle
International Day of Happiness - 20 March 2016
The winners are: 1- Larah Rebutar 2- Zainab Al Mahdi
Strata celebrated Mother’s Day along with VLCC, and honored
all mothers by providing all employees with special offers
and vouchers for different services as well as distributing
customized cupcakes and roses to employees
January 2016 ISSUE 10
13
‫زوار ستراتا‬
Strata’s Visitors
The Al Nokhba scholarship visit
6 January
CANADIAN AMBASSADOR’S visit
12 January
Embassy of France visit
2 February
14
‫زيــارة برنامــج النخبة إلعداد الكوادر الوطنية‬
‫ يناير‬6
British Embassy visit
17 February
‫زيارة الســفارة البريطانية‬
‫ فبراير‬17
Dassault Systèmes visit
16 March
‫زيارة داســالت سيستمز‬
‫ مارس‬16
‫زيارة سفير كندا‬
‫ يناير‬12
‫زيارة الســفارة الفرنسية‬
‫ فبراير‬2
Aviation camp visit
30 March
‫مخيم الطيران‬
‫ مارس‬30
15