Dubai, August 21, 2011: The interest in the multi-million Euro joint venture for manufacturing the next generation seats and interiors for the aircrafts has been evidenced by an overwhelming response from the Middle East investors in general and the UAE and GCC investors in particular, given the growth potential offered by fast-expanding global aviation industry, its UAE-based promoter said.

Ms. Sara Ismail Mohamed, CEO of Abu Dhabi-based Al Bashayer Investment, said: “Investors from different Middle East countries are showing great interest in the project with a number of subscriptions already signed on the first day of the launch. The joint venture holds immense potential for growth and return on investment due to massive expansion and development of the global aviation industry.”

The lead investor for the project is IPM Investment LLC (IPM), a Dubai based private equity and venture capital company, offering shares of Euro 36 million in United Seating Technologies (UST) to private investors.

IPM has taken a 30 per cent share in United Seating Technologies (UST) and has also contracted to set up a regional sales and aftermarket support facility in Dubai for customers in the Middle East, Africa and the CIS for United Seating Technologies Middle East (UST-ME).

IPM has entered into agreement with Corporate Consulta S.A. of Switzerland for the joint venture project that was structured by and between Aerospace Life-Support Industries and Corporate Consulta, Fribourg-based Swiss corporation, to create United Seating Technologies (UST), Jiahang United Seating Technologies (JUST) and brought in the Italian design firm, Bertone, and aircraft seat engineering company, Optimares, as independent project contract partners.
Aerospace Life-Support Industries is a wholly owned subsidiary of “Fortune 500” state-owned enterprise, Aviation Industry of China (AVIC) with ten large aerospace subsidiary companies under its fold.

Both Aerospace Life-Support Industries and Corporate Consulta have allocated an initial investment of Euro 100 million for Jiahang United Seating Technologies (JUST).

The meetings that promoters had with potential investors in the region has been a huge success in creating awareness about the project and its benefits to the investors and the global aviation industry, especially the Middle East, one of the fastest growing region for acquisition of aircrafts by the airlines.

The promoters are looking at obtaining the commitment of a select group of investors to subscribe for 28.8 million shares in the company for a total commitment of Euro 36 million. Al Bashayer Investment, Abu Dhabi-based investment company, is the placement agent, while Maples Fund Services, based in DIFC, is the administrator and custodian. The auditors are Grant Thornton. The legal advisors on this investment project are Bin Shabib and Associates.

The promoters are confident about the joint venture’s potential of tapping approximately 20 per cent of the global market business and expect Internal Rate of Return (IRR) of 36 per cent on an average over an initial 10-year span.

“The UAE airlines are a reference in the commercial aviation market providing a major hub in the GCC conveniently connecting to all continents. They have wisely invested in aircraft and airport facilities to increase capacity, for the UAE to handle more than 250 million passengers annually, until 2020,” said Ms. Sara Ismail.

A state of the art aircraft seating and interior manufacturing plant nearing completion in Xiangyang, Hubei Province, China, an advanced technology engineering facilities in Italy, regional offices in Washington DC, Italy, the UAE and technical coordination offices at each aircraft manufacturer’s location, have required an overall investment of more than Euro 200 million. Becoming the only commercial aircraft seating and interiors manufacturer in China but with world wide market coverage, Jiahang United Seating Technologies (JUST) plant will have a capacity to manufacture 110,000 passenger places per year, for a 15 to 20 per cent world market share in commercial airline aircraft-seating requirement.

The project’s secure position in the Chinese market, in parallel to a solid share in the international market, is reflected in the commitment of AVIC’s subsidiary to secure orders for no less than 30 per cent of all seats purchased by Chinese airlines and to secure orders for no less than 60 per cent of all seats for aircraft manufactured in China.

“We welcome the involvement of UAE investors for this project which will be long-term beneficial not only for the countries and investors, but also the whole of the aviation industry. The project engages high technology firms from Europe and the manufacturing capabilities of China. The Joint Venture Company will be the trend-setter in the next generation technology of aircraft seats and interiors,” said Prof. XU, member of the board of directors of Aviation Life-Support Industries Ltd. and Chairman of the board of Jiahang United Seating Technologies.

Mr. Dominique Menoud, President of the Commercial and Technical division of JUST, said: "The Economy, Premium and business class seat types were unveiled at the Paris Air Show on June 21st 2011. Aircraft Interiors International Expo in Seattle, 12 – 14 September 2011 will be utilized to introduce a “long range business class lie flat” seat and a “long range business class fully flat seat”.

He said Dubai Airshow, to be held from 13 – 17 November 2011, will see the presentation of a “long range economy class” and a “long range premium economy class seat” while Aircraft International Expo in Hamburg, from 27 – 29 March of 2012, will round up and conclude the third phase of the product launch with a “long range new generation economy class” seat and “new generation extra long range first class seat”. This will complete the initial full range product line of 9 new seats based on five distinct advanced technology structures will be manufactured. The seats and interiors will be certified to international standards including the European Aviation Safety Agency (EASA) standards and in compliance with the European Technical Standard Order (ETSO), he added.

The project’s growth potential is reflected by the expansion in aviation industry globally. The number of airplanes in the worldwide fleet will nearly double from around 19,400 airplanes to more than 39,500 airplanes by the year 2030. Airplane deliveries for fleet growth and replacement of ageing airplanes will total 33,500 over the next 20 years with a value in excess of US$ 4 trillion.

Through the commercial and support office based in Dubai, the UST will have direct access to airlines in the Middle East and North Africa (MENA), with among others Emirates Airlines, Etihad and Qatar Airways, leading in terms of expansion of fleet and acquisition of latest technologies offered to the passengers.