Strata plots its stratospheric rise

Press, partners and the public gathered on the Mubadala stand each day as further proclamations were made of new joint ventures and business won.

One of the most significant was the announcement of a strategic agreement to establish Strata as a direct supplier to Boeing, with a plan to become a major tier 1 supplier.

The announcement of deals and deliveries give weight to the high-flying aspirations of the relatively new, but fast-developing, venture. Just 10 months after breaking ground, Strata had built and qualified a new composite airframe manufacturing facility in Al Ain, UAE.

The first shipment of flap track fairings left the facility six months after the opening. Now in its second year, the company has US$2 billion worth of work orders and is on track to becoming a tier 1 supplier to both Boeing and Airbus.

Russ Bradley, CEO, is determined that the pace of development will not slacken: “We will develop into an aviation park, like Seattle and Toulouse, and within a decade we will be a global leader in advanced composite airframe. Simply put, we want to be the Toyota of the aerospace industry.”

While acknowledging the company’s aims as a little ambitious, he also dismisses the old school thinking. “It may be outrageous to aim to do this in 10 years, but the UAE runs on a different timescale. Look at what we have done so far.”

The company specialises in wings and empennage and does not intend to diversify. Bradley has defined his market precisely.

“Composite airframes are part of a revolution. Previously they were all aluminium alloy, now more than 50% of the Boeing 787 will be composite and over 50% of the A350 body is composite. The new 737 aims to be around 70-80% composite. We are looking at a US$4.1 trillion market over the next 20 years.

“But we don’t want to be like other aerostructure manufacturers. We will specialise in wings and empennage. This area has only a few players, whereas the fuselage market has thousands of suppliers.”

He also believes there is a high probability that wings and empennage will remain with composite construction, whereas fuselage may return to aluminium.

Another clear objective is to be a single source for manufactured parts. Bradley said: “We put people into plants and learn how to make the products, then we try to improve on that. We know intimately how to produce the product, then transfer the production to our own facility. We insist on being the sole supplier and supply direct to both Boeing and Airbus.”

Already the factory is looking to expand, having secured significantly more business than it can handle. The current facility comprises 21,600sqm of floor space, of which 4,000sqm is clean room. Parent company Mubadala has stated that it plans to pump more than $500 million (Dh1.8 billion) into composite manufacturing in the UAE over phases one to three of Strata’s long-term development.

A confident Bradley believes the company should be in a position to return Mubadala’s initial $250 million investment in the factory by the end of 2014.

A tour of the factory floor belies the burgeoning order books, as staff quietly progress with the work in a light, airy and distinctly uncrowded space. It is the coloured tape on the floor that gives away the plans for new plant and assembly lines.

The company is run on Toyota’s lean principles, with adaptable floor space and flexible plant. The technology is cutting-edge, with the benefit of no legacy equipment or staff. Ceiling-mounted lasers in the clear area show staff where to lay the fibre and honeycomb cores, speeding up production. Non-destructive testing employs the latest in X-ray, high-pressure water and ultrasonic technology.

Brad Hume, operations director, said: “We constantly look to improve production. We are talking to different companies about new technologies for different resins for different applications. Many of the senior management are still connected to higher education around the world and we make sure we are up to date with the research and development going on.”

In addition to the flap track fairings for Airbus A330/340s and the A380 currently in production, the company will manufacture spoilers for the Boeing 787 and rudder and vertical and horizontal tail assemblies for ATR turboprop aircraft through Alenia Aeronautica.

A contract to provide flap track fairing for the Airbus A350, through SABCA, is currently being finalised.

The current production rate for the A330/340 flap tracks is 2-2.5 ship sets per week. Each ship set consists of 34 major elements. With the factory running 20 hours per day, it takes around 10 days for a single element from start to finish, and that finish is exceptional, according to Hume.

“Airbus has commented on how good the finish is, marking it as very high quality. Our advantage is that we were able to create a sophisticated plant from scratch. We have been able to plan carefully for each new work order we win.”

While the order books are swelling, Strata is not just about the money. As part of Mubadala, the company claims a double bottom line, putting social investment in the UAE and the development of the national workforce, on a par with profit.

Currently the company boasts Emiratisation rates of 30%, with 90% of those staff being female. The company works closely with the adjacent Al Ain International Aviation Academy, which has replicated part of the manufacturing facility and liaised with Airbus to use part of its training programme to train the potential staff.

Bradley said: “We are looking for sustainability and we put a lot of effort into developing people. National high school leavers join the academy for a 10-month training programme, learning about aircraft, composite and parts. We hope to offer positions to those that meet the standard.”

Competition is tough, with more than 300 applicants for 150 positions in the last recruitment wave. The young applicants see the ambitious company as already successful and a place where each person can develop their own career path.

The company ends 2011 with a workforce of 510, expects to employ around 720 staff by the end of 2012, and aims to create more than 1,000 jobs by 2015.

“We have had outstanding results,” said a gleeful Bradley. “We were told that we would not get Emiratis on to the shop floor. Not only have we successfully done so but there is so much passion and enthusiasm that we have to chase them out the door after hours. They are proud to be part of the team. This is a high-tech industry creating high-value jobs.”

The large number of female workers is down to social and physical factors. While young men will travel to Dubai and Abu Dhabi for work when they have graduated, many local families prefer their daughters to remain close to home, providing a pool of highly-educated young women. The company is happy to take on female employees, finding them to have greater dexterity and the ability to pick up the job quickly.

While many of the women are trained in Al Ain, those free to travel have undergone training with companies in Europe and the US, including Boeing.

Hume said: “Our long-term aim is to have a 50:50 mix of nationals and expatriates and we are well on our way.”

There are areas for development. Strata has engineers currently working with machine tool companies as it looks to move away from being labour intensive and introduce robotics to offset costs.

It plans a research facility in order to develop its own intellectual property, partnering with both educational institutions and cutting-edge companies.

There are also supplier discussions to set up factories in the region, to reduce import costs, a proposal that becomes more attractive as other aerospace companies sign up for the Al Ain Aerospace Cluster.

The overall aim of both Strata and Mubadala is clearly stated – they plan to turn Al Ain from the city of education to the city of aerospace.