UAE to have aircraft parts factory

The investment arm of Abu Dhabi emirate, Mubadala Development Co, said on Sunday work will begin on June 29 to build a factory to produce composite parts for aircraft, to become operational in 2010.

Mubadala said in a statement that the project, called Strata, has already agreed deals to supply parts to manufacturers including Europe's EADS and Airbus, FACC of Austria and Italy's Finmeccanica subsidiary Alenia Aeronautica.

"Initial contracts valued at more than two billion dollars have already been agreed with these partners," the statement said.