ST Aerospace to establish Guangzhou aircraft repair facility

ST Aerospace owns 49% of S$136.21mln, 147,000 square metre of commercial aircraft heavy maintenance facility.

ST Engineering on Tuesday announced that its aerospace arm, ST Aerospace, has concluded joint venture (JV) discussions with Guangdong Airport Management Corporation (GAMC) to set up a commercial aircraft heavy maintenance facility in Guangzhou, China. The JV company, ST Aerospace (Guangzhou) Aviation Services Company Limited, will have a total investment of US$99m. ST Aerospace will own a 49% stake of the JV company, while GAMC will own 51%. The JV company will be an associated company of ST Aerospace.

With endorsement already received from the Civil Aviation Administration of China (CAAC) but subject to the approval from the Chinese government, the JV company is expected to begin operations two years after incorporation. Construction of the facility will take about two year s to complete, as reported by ST Engineering.

Located within the Guangzhou Baiyun International Airport, ST Aerospace (Guangzhou) Aviation Services will occupy an initial area of 147,000 square metres, which will be adequate for two hangars. Each hangar will be able to accommodate two wide-body aircraft. The JV company will provide maintenance and modification services for Boeing and Airbus aircraft, and it expects to employ an initial work force of about 500-600.

"The establishment of the JV company in Guangzhou shows the level of commitment that ST Aerospace has to serve the Chinese market. Given their excellent reputation in providing dependable, cost- effective services and quick turnaround times, we are delighted to have ST Aerospace as a partner, as we continue to strive towards building a global aviation hub." ~ LIU Zi Jing, President, Guangdong Airport Management Corporation

"We are pleased to have the support of Guangdong Airport Management Corporat ion, as well as the local government. Guangzhou is a major aviation hub in Asia, and is very well connected to the rest of the region as well as other major aviation hubs in China. We hope to build a strong capability to provide high quality and reliable services for our global customers who operate in and fly into China." ~ CHANG Cheow Teck, President, ST Aerospace

Operated and managed by ST Aerospace as part of its global network of MRO facilities, the JV will leverage ST Aerospace's Total Aviation Support capabilities and global customer base.

The set up of this company increases ST Aerospace's establishments in China to four, and will enhance and complement ST Aerospace's Chinese business operations. The other three business operations include:

• Shanghai Technologies Aerospace Company (STARCO), an aircraft maintenance, repair and overhaul JV with China Eastern Airlines in Shanghai;
• ST Aerospace Technologies (Xiamen) Company (STATCO), an engines MRO and total support services JV with Xiamen Aviation Industry Co ; and
• ST Aerospace Guangzhou Aero-Technologies & Engineering Company Limited, an import / export facility.