Singapore Technologies Engineering has entered into a joint venture with Vietnam Airlines Engineering Company (VAECO), a subsidiary of Vietnam Airlines.
The joint venture will create a new company called Vietnam Singapore Technologies Engineering Aerospace (JVCo), based in Vietnam.
The setting up of JVCo, which establishes the group’s first presence in Vietnam, follows a Memorandum of Understanding announced on 26 April 2018.
The JVCo was set up with a paid up capital of $3.9m to provide component maintenance, repair & overhaul (MRO) solutions. ST Engineering has a 49% stake in the JVCo, with the remaining 51% held by VAECO.
The new component MRO facilities are expected to begin operations in mid-2019 to cater to Vietnam Airlines’ requirements and the region’s rising needs for aircraft component MRO services.
These facilities will be equipped to support aircraft types including but not limited to the A320 Family, A350, Boeing 787 and ATR72, and carry out MRO work on pneumatics, hydraulics, electrical components, wheels and brakes as well as safety equipment.
“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," said Mr Lim Serh Ghee, President of ST Engineering’s Aerospace sector. "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.”