The newly formed JVCo has a registered capital of RMB100 million (approximately S$19 million), with ST Engineering holding a 60% stake and SF Airlines owning the remaining 40%.
Singapore Technologies Engineering Ltd (ST Engineering) has announced the establishment of a joint venture company (JVCo) with SF Airlines Co., Ltd. (SF Airlines) in Ezhou, Hubei, China. The newly formed JVCo has a registered capital of RMB100 million (approximately S$19 million), with ST Engineering holding a 60% stake and SF Airlines owning the remaining 40%.
The purpose of the JVCo is to operate a greenfield airframe Maintenance, Repair & Overhaul (MRO) facility at Ezhou Huahu Airport. This facility will offer comprehensive MRO services to cargo and passenger airlines operating in the Asia region, including SF Airlines. The construction of the first hangar facility is anticipated to be completed by 2025.
The establishment of this JVCo aligns with ST Engineering’s strategic plans to expand its presence and capabilities in the Chinese market. By partnering with SF Airlines, ST Engineering aims to leverage their expertise and resources to swiftly establish a robust MRO operation in Ezhou.
Jeffrey Lam, President of Commercial Aerospace, ST Engineering said, “China will be a strong growth driver for Asia’s commercial aerospace sector over the next decade. A presence in Hubei, China, will enhance our MRO network in Asia to better meet and capture the rising regional demand, while our strategic collaboration with an airline partner will enable us to start up a greenfield operation quickly.”
As the demand for MRO services continues to grow in the Asia region, the new airframe MRO facility in Ezhou will play a crucial role in meeting the industry’s requirements. The partnership between ST Engineering and SF Airlines brings together their combined strengths and positions them well to cater to the evolving needs of cargo and passenger airlines.
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ST Engineering remains committed to expanding its MRO network and providing high-quality services to its customers in Asia and beyond. The establishment of the JVCo marks another milestone in the company’s strategic initiatives and reinforces its position as a leading player in the commercial aerospace sector.
