by | Major (R) Zailani bin Safari
Trent 900 Offset Programme is the fist of its kind commercial offset programme fully managed by the Offset Management Unit (OMU), MIGHT. It was triggered from an engine procurement program from Rolls-Royce to be fitted on the new Airbus A380 aircraft used by Malaysian Airlines (MAS).
An Offset Agreement between the Government of Malaysia (represented by MOSTI) and Rolls-Royce was signed on 30th March 2006 for a 5-year implementation period. This initiative is the fist offset involving civil aeroengine procurement. The conclusive goal of the initiative is to provide a platform for the country to generate a positive net revenue from the investment made.
The programme is expected to support the development of Malaysian Aerospace industry; develop capacity and capability through transfer of technology (ToT), research skills and capability development and industrial participation & commercialisation; and create high-income/high skill jobs. Six (6) offset projects were identified and developed through this Trent 900 offset programme. The initial total offset credit value obligation of the programme was expected to reach RM 920 million. However, only four (4) out of all the identified projects were successfully implemented due to its suitability, which has benefited local industry with a total contribution to economic development at RM 4.4 billion. This include award of high-tech work packages, transfer of technology and human capital development.
Programmes’ spin-offs and statuses
Project 1 – T56 Authorized Maintenance Centre (AMc) Certification
The project involved granting of a full Authorised Maintenance Centre (AMC) status for T56 Engine MRO to Airod Turbopower (ATP) Sdn. Bhd. The AMC has boosted the MRO capability in Malaysia and position ATP Sdn Bhd in the global map as the 8th AMC in the world and provide global business segment opportunities worth of RM 350 million.
Project 2 – Aerospace contract Manufacturing
The project involved award work packages to the local aerospace manufacturing companies, CTRM Aero Composite (AC). Goodrich, the supplier for Rolls-Royce has awarded the work packages to CTRM AC worth of more than RM 400 million. The offset arrangement has led a business deal worth RM 3.5 billion until year 2023.
Project 3 – Research on Palm-Oil for Aero gas Turbine
This project involved development of a database for biofuel combustion properties for turbine engine involving labs from Cambridge University and University Teknologi Malaysia (UTM). Through this arrangement, Cambridge University has shared the combustion fuel expertise and technology; where the Intellectual Property resulted from the collaborative effort belongs to Government of Malaysia.
Project 4 – Establishment of Aerospace Manufacturing and Innovation Centre (AMIC)
AMIC is anticipated to be a research centre dedicated to develop innovative technology solutions for aerostructures in the aspects of design, manufacturing process and material. Through the offset arrangement, Rolls-Royce as the Tier 1 partner provides funding to facilitate its fist 5-year operation as well as strategic projects identified and agreed by both parties.
Project 5 – Application of Advanced Material
The project focuses on the application development and commercialization of a readily available Malaysian nanotech product. Malaysia Aerogel and Carbon Nano Tube/Nano Graphene are two advanced material products found to have high commercialization value and are ready to penetrate the market. These products are locally made and have similar characteristic and performance of comparable products produced by international parties. Through the offset program, Rolls-Royce provide a platform for commercialization in a high technology based application such as the jet engines.
Project 6 – Production of Super grade Tantalum
The project is a collaboration between University of Cambridge, Metalysis UK Ltd and local institutes to perform R&D&C in producing Super Grade Tantalum powder. The project involves research and development in Malaysia between University of Cambridge, Metalysis Ltd and local partners; SIRIM, USM & UKM.
However, the project has been delayed due to not meeting the technical requirement since year 2011. However, the technical team in Metalysis is still attaining the purity level while both Rolls Royce and MIGHT agree to continue monitor the project.
Offset Program is indeed an initiative by the Government that could be utilised as an effective tool to support national economic development. Based on the overall achievements of the Trent900 Offset Program, the Government of Malaysia has decided to use offset program as one of the platforms to support national economic growth. For instance, the Government has published a new offset policy titled Policy and Guidelines on Industrial Collaboration Programme (ICP) in Government Procurement applied to all government’s procurement related to supply, works and services.
The opportunities offered to MIGHT in managing the Trent900 Offset Programme have allowed MIGHT to structure offset programme as a platform for Malaysia to leap frog the industry development not only in the human capital and capability but also in the overall management of the programme. Based on the success of the Trent900 Offset Program, the Government of Malaysia has decided to use offset program as one of the platforms to support national economic growth.
Recently, the Government has published a new offset policy titled Policy and Guidelines on Industrial Collaboration Programme (ICP) in Government Procurement applied to all government’s procurement related to supply, works and services. To ensure that offset programs are managed systematically, MIGHT has developed Malaysian Offset Management Framework certified with ISO9001:2008 certification. Currently the operation of Technology Depeository Agency (TDA) is guided by the said framework to ensure the governance and transparencies.
Last but not least, MIGHT as the Trent900 Offset Programme Management Unit would like to take this opportunity to thank and congratulate all the stakeholders that have involved and continuously supporting in this initiative since day one it has been proposed. The trust and believe had flourished and contributed to the development of the industry.