Submarine-hunting equipment maker Ultra Electronics Holdings Plc announced their venture into a non-military enterprise through China Merchants Group (CMHK) to fuel company growth. The company said they aim to derive 50% of their revenue in the next three years from their non-defense activities. The move came as defense spending in the US and the UK dropped. Consequently, Ultra Electronics said it will be developing its commercial aerospace activities.
Ultra Holdings Chief Executive Officer Rakesh Sharma told Bloomberg through a phone interview that the alliance will enable them to work on the Chinese Comac C919. Should the partnership push through, Ultra will be providing the airliner with landing-gear controls. They will also develop safety systems for the aircraft's fuel tanks aimed at suppressing fires-- a first for the Greenford-based company. Sharma said that they are anticipating a small study contract to be formed this year, which will hopefully pave the way for the signing of a development contract.
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