ST Engineering’s aerospace arm has entered a joint venture with Vietnam Airlines’ subsidiary Vietnam Airlines Engineering Co. (VAECO) to provide component maintenance, repair and overhaul (MRO) services, the Singapore company said in a filing to SGX Thursday.
“Asia is a key region driving the growth of the global commercial aerospace sector. A presence in Vietnam, which enjoys double-digit growth in the air travel sector, will enable us to better capture that growth with an expanded MRO network in the region,” Lim Serh Ghee, president of ST Engineering’s aerospace sector, said in the statement.
“Our partnership with Vietnam Airlines, which has existing maintenance facilities in the country, not only enables us to set up capabilities
within a very short timeframe but also allows us to start operating with a ready base-load,” he added.
The joint venture, called Vietnam Singapore Technologies Engineering Aerospace, was set up with a paid-up capital of around US$3.9 million, or around S$5.3 million, ST Engineering said.
ST Engineering will have a 49 percent stake, while the remainder is held by VAECO, the filing said.
The joint venture will make use of Vietnam Airlines’ existing facilities at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City, making investments for new infrastructure to carry out component MRO work there, the filing said.
The facilities are expected to begin operations this year to service Vietnam Airlines’ requirements as well as the region’s increasing demand, the filing said.
Aircraft types including the A320 family, the A350, Boeing 787 and ATR72 will be supported, the filing said.
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