Rockwell Collins Inc. (COL) is in preliminary talks about a partnership with Abu Dhabi-based Mubadala Aerospace as the U.S. aircraft-electronics supplier seeks to boost revenue from foreign markets. <\/p>\n
Rockwell Collins is exploring as tie-up with the unit of Mubadala Development Co. on after-market support, including logistics and repairs on the equipment it sells in the region, Chief Executive Officer Kelly Ortberg said in an interview. <\/p>\n
Wed bring some know-how and theyd bring the market capacity and facility and people, Ortberg said in Abu Dhabi yesterday. Wed find some shared arrangement to do that. <\/p>\n
Rockwell Collins is expanding overseas as core markets such as U.S. defense become pretty soft, Ortberg said. The Cedar Rapids, Iowa-based company currently gets about 40 percent of revenue abroad and plans to increase the proportion to 50 percent over five years, aided by double-digit growth in China, the Middle East and Brazil, the CEO said. <\/p>\n
Rockwell will seek to do more partnering in countries for support of products, repair, overhaul or logistics, he said, with the local payroll likely to expand accordingly. <\/p>\n
An anticipated 9 percent increase in plane deliveries in the Middle East over five years will be a boon for the company given its status as a major supplier to Boeing Co. (BA) and Airbus Group NV (AIR), Ortberg said. Current double-digit annual growth for the business in the region is likely to continue, he added. <\/p>\n
Opportunities include providing broadband connectivity for planes, moving information on and off aircraft using satellite communications, and investing in guidance technology. <\/p>\n
The region is very important to Rockwell Collins, its a growth engine for us, Ortberg said. Saudi Arabia and the United Arab Emirates, which includes Abu Dhabi, are the leading markets, with Qatar showing good growth on the commercial side. <\/p>\n
To contact the reporter on this story: Deena Kamel Yousef in Dubai at dhussein1@bloomberg.net<\/a> <\/p>\n To contact the editors responsible for this story: Benedikt Kammel at bkammel@bloomberg.net<\/a> Ed Dufner, Christopher Jasper <\/p>\n <\/p>\n More:<\/p>\n Rockwell Collins Exploring Mubadala Aerospace Partnership<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Rockwell Collins Inc. Continue reading