SINGAPORE, 11 July 2023 – Eaton (NYSE:ETN) and SIA Engineering Company Limited (“SIAEC”) have signed an agreement to form a component maintenance, repair and overhaul (“MRO”) joint venture (“JV”).
The JV will inspect, test, repair, maintain, modify and overhaul Eaton-manufactured aircraft components installed on airframe and engine fuel systems and hydraulics systems. The JV builds presence and service capacity for Eaton and SIAEC customers in the Asia Pacific region.
Under the agreement, Eaton will hold a 51% equity stake in the JV, with SIAEC holding the remaining 49%. The initial issued and paid-up share capital will be USD 16 million. Eaton and SIAEC will each subscribe to the shares in cash and in proportion to their corresponding equity stake. The agreement and services to be provided are subject to the receipt of required regulatory approvals.
Mr Ng Chin Hwee, Chief Executive Officer of 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 Mr 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.”
The transaction is not expected to have a material 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.
None of the Directors and controlling shareholders of SIAEC has any interest, direct or indirect, in the transaction other than through their shareholdings (if any) in SIAEC.