KUALA LUMPUR (May 19): UMW Holdings Bhd does not rule out the possibility of securing further outsourcing works from Rolls-Royce Plc for aircraft engines parts in future.

In a media briefing after UMW's annual general meeting today, chairman Tan Sri Asmat Kamaludin said the group will have to focus on deliveries to Rolls-Royce at this juncture, to establish a good track record.

"We are the first Tier-1 supplier for this in Malaysia, and since Rolls-Royce has an engine manufacturing plant in Singapore, I believe they might need to outsource some work, as long as we deliver their orders accordingly, I think we stand a good chance to win these outsource in future," he told reporters.

UMW Holdings president and group chief executive officer Badrul Feisal Abdul Rahim said training for the engineering team will start by August this year, and the manufacturing is expected to begin by fourth quarter of 2017.

"The revenue from this business is expected to begin by 2018, but we do not expect the business to report profit straight away," he said, declining to reveal what are the costs and margins involved in this project.

Badrul Feisal also said as of now, the group is not looking to have any tie-up with any other third party aerospace players, apart from Rolls-Royce.

UMW had previously secured a job from Rolls-Royce to supply fan cases for aircraft engines, marking the group's first maiden into the aerospace manufacturing industry.

At market break, UMW Holdings was trading at RM5.56, down six sen or 1.07%, valuing the group at RM6.5 billion.