The United Arab Emirates (UAE) defence industrial conglomerate Edge announced on 21 July that it was buying out the 40% stake in aircraft maintenance joint venture AMMROC from Lockheed Martin and Sikorsky.
Under a conditional agreement between the two companies, Edge will acquire the stake for USD307 million.
An Edge spokesperson told Janes that, “The joint venture with Lockheed Martin and Sikorsky over the past decade has significantly helped mature UAE skills and capabilities in the [maintenance, repair and overhaul - MRO] industry, bringing it to an evolution point that today makes sense for EDGE to take on fully”.
AMMROC has been involved in undertaking MRO work on the UAE’s UH-60 Blackhawk helicopters, as well as integrating weapons systems for the armed UH-60M. (Janes/Patrick Allen)
Edge CEO and Managing Director Faisal Al Bannai, added in a statement that, “Lockheed Martin and Sikorsky have played a pivotal role in developing the UAE’s MRO capabilities. As Edge assumes full ownership of AMMROC and continues to pursue the military and civil MRO market with specialist skills, we recognise that such achievements are the outcome of our international partnerships. Going forward, we will continue to explore emerging business opportunities with Lockheed Martin and Sikorsky to further strengthen our relationship”.
However, Lockheed Martin noted in its 2019 annual report that, “substantially all of AMMROC’s current business is dependent on one contract that is currently up for re-competition and if AMMROC is not successful in securing such business on favourable terms or at all, the carrying value of our investment would be adversely affected.”