Arab Organization for Industrialization
Encyclopedia
The Arab Organization for Industrialization (AOI) is an Egypt
-based Arab military
organisation established in 1975 by Egypt, Qatar
, Saudi Arabia and the United Arab Emirates
(UAE) to supervise the collective development of the Arab defence industry. Following a gradual deterioration in relations between the AOI member-states, Egypt became sole owner of AOI in 1993. As well as meeting the requirements of the Egyptian military, AOI directs spare capacity to civilian programmes, including civilian transport and sanitation
equipment, and has stated its intention of entering the wind power
sector.
Initially an institution of pan-Arabism
, Saudi Arabia and the United Arab Emirates
returned their shares in AOI, valued at US$ 1.8 billion, to Egypt
in 1993, leaving AOI wholly owned by the Egypt. AOI has approximately 16,000 employees, out of which 1,250 are engineers. AOI fully owns 10 factories and shares in 2 joint-ventures, besides the Arab Institute for Advanced Technology.
. The initial capitalisation
of AOI was USD 1 billion, contributed in equal part by the four member-states, although with the understanding AOI would be based in Egypt.
, a British aerospace
company, established the Arab British Helicopter Company as a joint venture, but a year later AOI announced the company's liquidation
. In ensuing arbitration
, the International Chamber of Commerce
made an award
, on grounds of breach of the principles of natural law
and good faith
, in favour of Westland Helicopters and against AOI's four member-states. This award was later annulled by the Court of Justice of Geneva
, which annulment was upheld by the Swiss
Federal Supreme Court
, on grounds that the arbitrators had jurisdiction over AOI but not over the organisation's member-states.
suspended and a policy of economic isolation implemented against it. It was in this atmosphere that the three AOI member-states other than Egypt - Qatar, Saudi Arabia and the UAE - withdrew from the AOI, causing its collapse.
In 1983, the Egyptian chief-of-staff
restated his interest in the joint manufacture of weapons, but it was only after the 1987 Arab League summit in Amman
, Jordan, when the Arab League re-admitted Egypt and the other Arab states normalised relations with Egypt, that the possibility of renewed co-operation among the AOI member-states seemed possible.
The UAE seemed similarly eager to reinvigorate the AOI: in 1988, Egypt and the UAE held talks with Qatar about its re-entry into the AOI, at which an agreement for closer co-operation between Egypt and Qatar in the fields of culture and communication was signed.
by Egypt and administered by a Supreme Committee, the chairman of which is the Egyptian president
and which includes several cabinet ministers
, and is considered a division of the Ministry of Military Production
.
and ISO 14001/2004 certified.
The AOI's Aircraft Factory was established in 1950 as the Helwan Aircraft Factory and is a key aerospace manufacturer
in Egypt. It is located in Helwan.
The AOI Aircraft Factory manufactures and assembles aircraft for the Egyptian air force
, including:
The K-8E is an Egyptian variant of the Chinese Hongdu JL-8, exported as the Karakorum-8 (or K-8) to (among others) Pakistan
, Zambia and Myanmar
. The K-8E's manufacture at the AOI Aircraft Factory began in 2000, under an agreement between the AOI and CATIC
, the Chinese state-owned aerospace manufacturer, to produce a total of 60 K-8s over five years. The contract, valued at US$ 347.4 million, was signed in 1999 in connection with the state visit
by Chinese president
Jiang Zemin
that year. Initially, most of the parts were manufactured in China and the aircraft were assembled in Egypt, but by the end of the programme the manufacture was to be carried out entirely at the AOI Aircraft Factory. In the end, 98% of each K-8E was locally-manufactured.
The AOI Aircraft Factory also manufactures aircraft part
s for the Egyptian Civil Aviation Authority
(ECAA), Dassault Aviation
and SAGEM
, and has received certification from the ECAA for its welding
, painting, testing and calibration
operations. The AOI Aircraft Factory also engages in civilian and technological projects.
s. The first engines produced at the Engine Factory were:
In 1975, the Engine Factory was affiliated to AOI, since when it has focused its activities on the manufacture, assembly, repair and overhaul of gas turbine
s and accessories. The AOI Engine Factory has established maintenance facilities for auxiliary power unit
s and SNECMA Atar 09C, T56, CT64, PT6-25 and -64, Larzac 04
, R-13
and R-25
engines.
The AOI Engine Factory directs spare capacity to civilian projects, including the manufacture of fuel injectors
for Robert Bosch GmbH
, air brake systems for Knorr-Bremse
and rail fastening clips for Pandrol
.
Sakr Factory for Development Industries (AOI)
Kader Factory for Development Industries (AOI)
Arab British Engine Co. (ABECO) (AOI)
Arab British Dynamics Co. ABD (AOI)
Arab American Vehicle (AAV)
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
-based Arab military
Military of the Arab League
The Arab League as an Organization has no military force, like the UN or EU, but recently in the 2007 summit, the Leaders decided to reactivate their joint defense and establilsh a peacekeeping force to deploy in South Lebanon, Darfur, Iraq, and other hot spots....
organisation established in 1975 by Egypt, Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
, Saudi Arabia and the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
(UAE) to supervise the collective development of the Arab defence industry. Following a gradual deterioration in relations between the AOI member-states, Egypt became sole owner of AOI in 1993. As well as meeting the requirements of the Egyptian military, AOI directs spare capacity to civilian programmes, including civilian transport and sanitation
Sanitation
Sanitation is the hygienic means of promoting health through prevention of human contact with the hazards of wastes. Hazards can be either physical, microbiological, biological or chemical agents of disease. Wastes that can cause health problems are human and animal feces, solid wastes, domestic...
equipment, and has stated its intention of entering the wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
sector.
Initially an institution of pan-Arabism
Pan-Arabism
Pan-Arabism is an ideology espousing the unification--or, sometimes, close cooperation and solidarity against perceived enemies of the Arabs--of the countries of the Arab world, from the Atlantic Ocean to the Arabian Sea. It is closely connected to Arab nationalism, which asserts that the Arabs...
, Saudi Arabia and the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
returned their shares in AOI, valued at US$ 1.8 billion, to Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
in 1993, leaving AOI wholly owned by the Egypt. AOI has approximately 16,000 employees, out of which 1,250 are engineers. AOI fully owns 10 factories and shares in 2 joint-ventures, besides the Arab Institute for Advanced Technology.
History
AOI was established by its four member-states - Egypt, Qatar, Saudi Arabia and the UAE - in response to the threat posed by the advanced Israeli defence industryMilitary equipment of Israel
The military equipment of Israel includes a wide array of arms, tanks, planes, cannons, armored vehicles. Many of these are purchased overseas. Up until the Six-Day War of 1967, the Israel Defense Forces' principal supplier was France, since then, it has been the United States government and...
. The initial capitalisation
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of AOI was USD 1 billion, contributed in equal part by the four member-states, although with the understanding AOI would be based in Egypt.
Arab British Helicopter Company
In 1978, AOI and Westland HelicoptersWestland Helicopters
Westland Helicopters was a British aerospace company. Originally Westland Aircraft, the company focused on helicopters after the Second World War. It merged with several other British firms in 1961...
, a British aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
company, established the Arab British Helicopter Company as a joint venture, but a year later AOI announced the company's liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
. In ensuing arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
, the International Chamber of Commerce
International Chamber of Commerce
The International Chamber of Commerce is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 130 countries have interests spanning every sector of private enterprise....
made an award
Arbitration award
An arbitration award is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law...
, on grounds of breach of the principles of natural law
Natural law
Natural law, or the law of nature , is any system of law which is purportedly determined by nature, and thus universal. Classically, natural law refers to the use of reason to analyze human nature and deduce binding rules of moral behavior. Natural law is contrasted with the positive law Natural...
and good faith
Good faith
In philosophy, the concept of Good faith—Latin bona fides “good faith”, bona fide “in good faith”—denotes sincere, honest intention or belief, regardless of the outcome of an action; the opposed concepts are bad faith, mala fides and perfidy...
, in favour of Westland Helicopters and against AOI's four member-states. This award was later annulled by the Court of Justice of Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
, which annulment was upheld by the Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
Federal Supreme Court
Federal Supreme Court of Switzerland
The Federal Supreme Court of Switzerland is the supreme court of Switzerland. It is located in Lausanne.According to the Constitution of Switzerland, the court has jurisdiction over violations of:*federal law;*public international law;*intercantonal law;...
, on grounds that the arbitrators had jurisdiction over AOI but not over the organisation's member-states.
Egyptian isolation
Following the signing of the Egypt-Israeli peace treaty (1979), Egypt had its membership to the Arab LeagueArab League
The Arab League , officially called the League of Arab States , is a regional organisation of Arab states in North and Northeast Africa, and Southwest Asia . It was formed in Cairo on 22 March 1945 with six members: Egypt, Iraq, Transjordan , Lebanon, Saudi Arabia, and Syria. Yemen joined as a...
suspended and a policy of economic isolation implemented against it. It was in this atmosphere that the three AOI member-states other than Egypt - Qatar, Saudi Arabia and the UAE - withdrew from the AOI, causing its collapse.
In 1983, the Egyptian chief-of-staff
Chief of Staff
The title, chief of staff, identifies the leader of a complex organization, institution, or body of persons and it also may identify a Principal Staff Officer , who is the coordinator of the supporting staff or a primary aide to an important individual, such as a president.In general, a chief of...
restated his interest in the joint manufacture of weapons, but it was only after the 1987 Arab League summit in Amman
Amman
Amman is the capital of Jordan. It is the country's political, cultural and commercial centre and one of the oldest continuously inhabited cities in the world. The Greater Amman area has a population of 2,842,629 as of 2010. The population of Amman is expected to jump from 2.8 million to almost...
, Jordan, when the Arab League re-admitted Egypt and the other Arab states normalised relations with Egypt, that the possibility of renewed co-operation among the AOI member-states seemed possible.
The UAE seemed similarly eager to reinvigorate the AOI: in 1988, Egypt and the UAE held talks with Qatar about its re-entry into the AOI, at which an agreement for closer co-operation between Egypt and Qatar in the fields of culture and communication was signed.
Organisation
AOI is one of the largest industrial organisations in Egypt with significant international relationships both in the defence and civilian transport sectors. The AOI is wholly state-ownedState ownership
State ownership, also called public ownership, government ownership or state property, are property interests that are vested in the state, rather than an individual or communities....
by Egypt and administered by a Supreme Committee, the chairman of which is the Egyptian president
President of Egypt
The President of the Arab Republic of Egypt is the head of state of Egypt.Under the Constitution of Egypt, the president is also the supreme commander of the armed forces and head of the executive branch of the Egyptian government....
and which includes several cabinet ministers
Cabinet of Egypt
The Cabinet of Egypt is the chief executive body of the Arabic Republic of Egypt. It consists of the Prime Minister and the cabinet ministers....
, and is considered a division of the Ministry of Military Production
Egyptian Military Industry
The Military industry of Egypt is the most important in the Arab world. State-owned enterprises, under control of the Armament Authority headed by a major general, are the main domestic producers of Egypt's defense systems. The Armament Authority was responsible for selecting, developing, and...
.
Current enterprises
All AOI enterprises are ISO 9000/2001ISO 9000
The ISO 9000 family of standards relates to quality management systems and is designed to help organizations ensure they meet the needs of customers and other stakeholders . The standards are published by ISO, the International Organization for Standardization, and available through National...
and ISO 14001/2004 certified.
AOI Aircraft Factory
Aerospace manufacturer
An aerospace manufacturer is a company or individual involved in the various aspects of designing, building, testing, selling, and maintaining aircraft, aircraft parts, missiles, rockets, and/or spacecraft....
in Egypt. It is located in Helwan.
The AOI Aircraft Factory manufactures and assembles aircraft for the Egyptian air force
Egyptian Air Force
The Egyptian Air Force, or EAF , is the aviation branch of the Egyptian Armed Forces. The EAF is headed by an Air Marshal . Currently, the commander of the Egyptian Air Force is Air Marshal Reda Mahmoud Hafez Mohamed...
, including:
- the Helwan HA-200 Al KahirahHispano HA-200-See also:-External links:...
subsonicSubsonic aircraftA subsonic aircraft is an aircraft with a maximum speed less than the speed of sound ....
trainerTrainer (aircraft)A trainer is a class of aircraft designed specifically to facilitate in-flight training of pilots and aircrews. The use of a dedicated trainer aircraft with additional safety features—such as tandem flight controls, forgiving flight characteristics and a simplified cockpit arrangement—allows...
;
- the prototypePrototypeA prototype is an early sample or model built to test a concept or process or to act as a thing to be replicated or learned from.The word prototype derives from the Greek πρωτότυπον , "primitive form", neutral of πρωτότυπος , "original, primitive", from πρῶτος , "first" and τύπος ,...
Helwan HA-300Helwan HA-300-See also:-External links:...
supersonicSupersonic aircraftA supersonic aircraft is designed to exceed the speed of sound in at least some of its normal flight configurations.-Overview:The great majority of supersonic aircraft today are military or experimental aircraft...
fighterFighter aircraftA fighter aircraft is a military aircraft designed primarily for air-to-air combat with other aircraft, as opposed to a bomber, which is designed primarily to attack ground targets...
;
- the Alpha Jet;
- the TucanoEmbraer EMB 312 TucanoThe Embraer EMB 312 Tucano is a two seat turboprop basic trainer developed in Brazil. The prototype first flew in 1980 and initial production units were delivered in 1983. The Tucano family of aircraft became one of Embraer's first international marketing successes, with 600 units produced...
turbopropTurbopropA turboprop engine is a type of turbine engine which drives an aircraft propeller using a reduction gear.The gas turbine is designed specifically for this application, with almost all of its output being used to drive the propeller...
trainer; and
- the K-8EHongdu JL-8The Hongdu JL-8 is a two-seat intermediate jet trainer and light attack aircraft designed in the People's Republic of China by China Nanchang Aircraft Manufacturing Corporation. The primary contractor for this plane is the Hongdu Aviation Industry Corporation...
jet trainer.
The K-8E is an Egyptian variant of the Chinese Hongdu JL-8, exported as the Karakorum-8 (or K-8) to (among others) Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, Zambia and Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
. The K-8E's manufacture at the AOI Aircraft Factory began in 2000, under an agreement between the AOI and CATIC
China National Aero-Technology Import & Export Corporation
China National Aero-Technology Import & Export Corporation is a leading trading corporation of China, its core business is aviation defense product, both import and export.-A Brief Introduction of the CATIC:...
, the Chinese state-owned aerospace manufacturer, to produce a total of 60 K-8s over five years. The contract, valued at US$ 347.4 million, was signed in 1999 in connection with the state visit
State visit
A state visit is a formal visit by a foreign head of state to another nation, at the invitation of that nation's head of state. State visits are the highest form of diplomatic contact between two nations, and are marked by ceremonial pomp and diplomatic protocol. In parliamentary democracies, heads...
by Chinese president
President of the People's Republic of China
The President of the People's Republic of China is a ceremonial office and a part of State organs under the National People's Congress and it is the head of state of the People's Republic of China . The office was created by the 1982 Constitution...
Jiang Zemin
Jiang Zemin
Jiang Zemin is a former Chinese politician, who served as General Secretary of the Communist Party of China from 1989 to 2002, as President of the People's Republic of China from 1993 to 2003, and as Chairman of the Central Military Commission from 1989 to 2005...
that year. Initially, most of the parts were manufactured in China and the aircraft were assembled in Egypt, but by the end of the programme the manufacture was to be carried out entirely at the AOI Aircraft Factory. In the end, 98% of each K-8E was locally-manufactured.
The AOI Aircraft Factory also manufactures aircraft part
Aircraft part
An aircraft part is an article or component approved for installation on a certificated aircraft. Approval for these parts is derived from the jurisdictions of the countries that an aircraft is based...
s for the Egyptian Civil Aviation Authority
Ministry of Civil Aviation (Egypt)
The Ministry of Civil Aviation of Egypt is the ministry in charge of civil aviation in Egypt. Its headquarters are in Cairo.-Ministers of civil aviation:The current minister of the Egyptian civil aviation is Air Marshal Lotfi Mustafa Kamal....
(ECAA), Dassault Aviation
Dassault Aviation
Dassault Aviation is a French aircraft manufacturer of military, regional and business jets, a subsidiary of Dassault Group.It was founded in 1930 by Marcel Bloch as Société des Avions Marcel Bloch or "MB". After World War II, Marcel Bloch changed his name to Marcel Dassault, and the name of the...
and SAGEM
SAGEM
SAGEM was a major French company involved in defence electronics, consumer electronics and communication systems.In 2005, Sagem merged with SNECMA to form SAFRAN...
, and has received certification from the ECAA for its welding
Welding
Welding is a fabrication or sculptural process that joins materials, usually metals or thermoplastics, by causing coalescence. This is often done by melting the workpieces and adding a filler material to form a pool of molten material that cools to become a strong joint, with pressure sometimes...
, painting, testing and calibration
Calibration
Calibration is a comparison between measurements – one of known magnitude or correctness made or set with one device and another measurement made in as similar a way as possible with a second device....
operations. The AOI Aircraft Factory also engages in civilian and technological projects.
AOI Engine Factory
In 1960, the Engine Factory was established by the Egyptian military with German technical assistance as a base to design, develop and produce aircraft engineAircraft engine
An aircraft engine is the component of the propulsion system for an aircraft that generates mechanical power. Aircraft engines are almost always either lightweight piston engines or gas turbines...
s. The first engines produced at the Engine Factory were:
- the E-200 for the Helwan HA-200 Al Kahirah subsonic trainer; and
- the E-300 for the Helwan HA-300 supersonic fighter.
In 1975, the Engine Factory was affiliated to AOI, since when it has focused its activities on the manufacture, assembly, repair and overhaul of gas turbine
Gas turbine
A gas turbine, also called a combustion turbine, is a type of internal combustion engine. It has an upstream rotating compressor coupled to a downstream turbine, and a combustion chamber in-between....
s and accessories. The AOI Engine Factory has established maintenance facilities for auxiliary power unit
Auxiliary power unit
An auxiliary power unit is a device on a vehicle that provides energy for functions other than propulsion. They are commonly found on large aircraft, as well as some large land vehicles.-Function:...
s and SNECMA Atar 09C, T56, CT64, PT6-25 and -64, Larzac 04
SNECMA Turbomeca Larzac
|-References:NotesBibliography* Gunston, Bill. World Encyclopedia of Aero Engines. Cambridge, England. Patrick Stephens Limited, 1989. ISBN 1-85260-163-9-External links:*...
, R-13
Tumansky R-13
|-See also:-Bibliography:* Gunston, Bill. World Encyclopaedia of Aero Engines. Cambridge, England. Patrick Stephens Limited, 1989. ISBN 1-85260-163-9-External links:*...
and R-25
Tumansky R-25
|-See also:-External links:*...
engines.
The AOI Engine Factory directs spare capacity to civilian projects, including the manufacture of fuel injectors
Fuel injection
Fuel injection is a system for admitting fuel into an internal combustion engine. It has become the primary fuel delivery system used in automotive petrol engines, having almost completely replaced carburetors in the late 1980s....
for Robert Bosch GmbH
Robert Bosch GmbH
Robert Bosch GmbH is a multinational engineering and electronics company headquartered in Gerlingen, near Stuttgart, Germany. It is the world's largest supplier of automotive components...
, air brake systems for Knorr-Bremse
Knorr-Bremse
Knorr-Bremse is a manufacturer of braking systems for rail and commercial vehicles that has operated in the field for over 100 years. The company also produces door systems for rail vehicles and torsional dampers. In 2009, the Group's workforce of over 14,000 achieved worldwide sales of EUR 2.761...
and rail fastening clips for Pandrol
Pandrol
Pandrol is a British company, which manufactures clips used on rail tracks.- Overview :The was patented in 1957 by a Norwegian railways engineer, Per Pande Rolfsen. Nowadays it is common worldwide. Pandrol has manufacturing plants in 12 countries and 82 markets. Over 240 railway systems in 91...
.
Other factories and enterprises
AOI Electronics FactorySakr Factory for Development Industries (AOI)
Kader Factory for Development Industries (AOI)
Arab British Engine Co. (ABECO) (AOI)
Arab British Dynamics Co. ABD (AOI)
Arab American Vehicle (AAV)