The SIAEC and Eaton JV will provide comprehensive inspection, testing, and MRO services for Eaton aircraft components installed on the airframe, engine fuel systems and hydraulics systems.
SIA Engineering Company Limited (SIAEC) and Eaton have announced their partnership to establish a joint venture (JV) for component maintenance, repair, and overhaul (MRO) services. The JV aims to provide comprehensive inspection, testing, repair, maintenance, modification, and overhaul services for Eaton-manufactured aircraft components installed on airframe and engine fuel systems and hydraulics systems. This collaboration will strengthen the presence and service capacity of Eaton and SIAEC customers in the Asia Pacific region.
According to the agreement, Eaton will hold a 51% equity stake in the JV, while SIAEC will hold the remaining 49%. The initial issued and paid-up share capital for the JV will amount to USD 16 million. Both companies will subscribe to the shares in cash proportionate to their equity stake. However, the agreement and the services to be provided are subject to regulatory approvals.
Ng Chin Hwee, Chief Executive Officer, SIAEC said, “The relationship with Eaton in Malaysia is strategic for SIAEC as we have been growing component capabilities and increasing the competitiveness of our component Power-by-the-Hour product offering. 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.”
“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,” he further added.
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The transaction 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 on March 31, 2024. None of the Directors or controlling shareholders of SIAEC have any direct or indirect interest in the transaction, except through their shareholdings in SIAEC.
