SIA Engineering Company (SIAEC) has inked a deal with New York-listed Eaton to establish a component maintenance, repair and overhaul (MRO) joint venture (JV) company in Malaysia.
SIAEC will hold a 49% stake in the Joint Venture while Eaton will hold the remaining 51%. The JV will have an initial issued and paid-up share capital of $16 million and will inspect, test, repair, maintain, modify and overhaul Eaton-manufactured aircraft components installed on airframe and engine fuel systems and hydraulics systems.
Eaton and SIAEC will each subscribe to the shares in cash and in proportion to their corresponding equity stake. The agreement and services to be provided are subject to regulatory approvals.
“This new venture will combine SIA Engineering Company’s experience and well-respected position in the region with Eaton’s global reach and existing customer base,” said Nanda Kumar, President, Aerospace Group, Eaton. “We look forward to building our regional presence to serve customers throughout the product lifecycle in this growing market.”
“This JV will be an important platform to build capabilities on new-generation aircraft and will complement our existing portfolio of engine and component JVs with other leading original equipment manufacturers,” added Ng Chin Hwee, chief executive, SIAEC.
The MRO facility is expected to build presence and service capacity for both parties’ customers in the Asia-Pacific region, SIAEC said in a statement.
“The relationship with Eaton in Malaysia as strategic for SIAEC, as the group grows its component capabilities and competitiveness of its component power-by-the-hour product offering,” Ng Chin Hwee added.
