PUTRAJAYA: UMW Group has secured an RM830 million deal with Rolls-Royce Ltd to manufacture and assemble aero engine fan cases.
The 25-year agreement will see UMW M&E Sdn Bhd and subsidiary UMW Aerospace Sdn Bhd making fan cases for Rolls-Royceâ€™s Trent 1000 engines which power the Boeing 787 Dreamliner.
Prime Minister Datuk Seri Najib Tun Razak said the deal showed Rolls-Royceâ€™s confidence in Malaysiaâ€™s economic stability and skilled workforce.
Najib, who is also Finance Minister, said the collaboration was in line with the governmentâ€™s aim to make the private sector the main driver of economic growth as Malaysia heads towards a high-income nation status by 2020.
â€œThe New Economic Model and the Economic Transformation Programme (ETP) were launched in 2010 to help us reach the target of per capita Gross National Income of US$15,000 (RM59,352) by 2020.
â€œThis will be achieved by attracting US$444bil (RM1.75tril) in investments which in turn, will create 3.3 million new jobs,â€ Najib said.
The ETPâ€™s key thrust, he added, was to return the private sector to its role as a major engine of economic growth.
â€œThe bulk of investments, targeted at 92% by 2020, are to be financed by the private sector.
â€œThis new agreement between UMW Group, one of the leading conglomerates in Malaysia, and Rolls-Royce, one of the worldâ€™s renowned names in car and aero-engine manufacturing, is exactly the kind of collaboration we like to encourage,â€ said Najib at the memorandum signing ceremony here yesterday.
Rolls-Royce supply chain development executive Mark Prockter and UMW M&E executive director Megat Shahrul Azmir signed on behalf of their respective organisations in the presence of Najib, International Trade and Industry Minister Datuk Seri Mustapa Mohamad, Minister in the Prime Ministerâ€™s Department Datuk Seri Abdul Wahid Omar and British High Commissioner to Malaysia Victoria Treadell.
Under the agreement, the fan cases manufactured in Malaysia would be delivered to Singapore, where Rolls-Royce engines, including the Trent 1000, are assembled and tested.
It was also revealed that a Rolls-Royce manufacturing plant, at an undisclosed location in Malaysia, is expected to be completed by 2017.
UMW Group chairman Tan Sri Asmat Kamaludin said UMW and Mara would also be working together to establish a training centre to produce high-skilled workforce to support the project.