The SIAEC and CAIC joint venture will provide line maintenance services at the new Techo International Airport (TIA) in Phnom Penh.
The agreement, set to be signed today, will see SIAEC holding a 51% equity stake in the joint venture, while CAIC will hold the remaining 49%.
SIA Engineering Company Limited (SIAEC) has announced its partnership with Cambodia Airport Investment Co., Ltd (CAIC) to establish a joint venture for line maintenance services in Cambodia. The agreement, set to be signed today, will see SIAEC holding a 51% equity stake in the joint venture, while CAIC will hold the remaining 49%.
The joint venture aims to provide line maintenance services at the new Techo International Airport (TIA) in Phnom Penh. TIA, currently under development, is a greenfield airport located about 19 kilometers from the city center, with a planned total investment budget of USD 1.5 billion. The airport is designed to accommodate 50 million passengers across three phases of development, featuring three runways and a satellite terminal spread over 2,600 hectares. The joint venture will commence operations in March 2025 to coincide with the opening of TIA.
Ng Chin Hwee, Chief Executive Officer, SIAEC said, “This joint venture, in partnership with CAIC, will provide comprehensive line maintenance support with a high level of dispatch reliability and quality engineering services to the airlines operating in TIA. It will strengthen SIAEC’s position as a leading line maintenance provider while offering high quality and efficient maintenance services to valued customers at more overseas locations.”
By leveraging SIAEC’s existing network of Line Maintenance International (LMI) stations, this joint venture is expected to transform into a regional hub for aircraft maintenance, repair, and overhaul within TIA. SIAEC’s engineering capabilities and operational expertise will contribute to the provision of high-quality line maintenance support and efficient engineering services to airlines operating at TIA.
Oknha Dr Pung Kheav Se, Chairman, CAIC said, “We are delighted to form this partnership with SIAEC. We strongly believe that the transfer of technical competencies and aligned work practices with SIAEC are crucial for the long-term success of this joint venture, which will in turn create more high-value job opportunities for our local workforce.”
The joint venture is not expected to have a significant impact on the net tangible assets per share or the earnings per share of the SIAEC Group for the financial year ending 31 March 2024. Furthermore, none of the Directors or controlling shareholders of SIAEC have any direct or indirect interest in the joint venture, apart from their shareholdings in SIAEC.
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This partnership between SIAEC and CAIC signifies a strategic move towards expanding SIAEC’s global presence and providing efficient maintenance services to airlines operating at TIA. With their combined expertise and commitment to excellence, the joint venture aims to deliver top-tier line maintenance solutions and contribute to the growth and success of TIA as a premier aviation hub in the region.
