Mainboard-listed SIA Engineering Company Limited ("SIAEC") and GE Aviation ("GE") announced that it will be signing a joint venture agreement to form an engine overhaul joint venture based in Singapore. This follows the first announcement of the proposed partnership on 20 June 2017.
Under the agreement, GE will hold a 51% equity stake in the joint venture, with SIAEC holding the remaining 49%. The agreement is subject to regulatory approvals being obtained in the relevant jurisdictions.
The GE90 engine exclusively powers the Boeing 777-300ER and 777-200LR, and the GE9X engine is the sole engine selection for the Boeing 777X aircraft. The joint venture will leverage best practices from GE's "Brilliant Factory" concepts, combining advanced technologies and lean practices with digitization and data analytics to enhance productivity.
Mr. Png Kim Chiang, Chief Executive Officer of SIAEC, said, "SIAEC is pleased to partner with GE to create a state-of-the-art facility in Singapore, which is strategic to broadening our capabilities on next generation aircraft. The joint venture will leverage on the joint strengths of GE's technical knowhow and SIAEC's MRO experience, to offer high quality and competitive maintenance solutions for GE engines."
Ms. Jean M. Lydon-Rodgers, President and Chief Executive Officer of GE Aviation Services, said, "This partnership with SIAEC is a fitting extension of our growing relationship. The new joint venture will ensure our GE90 and GE9X operators have access to high-quality maintenance, repair and overhaul capabilities."
"The new joint venture between GE and SIAEC underscores Singapore's MRO leadership in Asia," said Mr Lim Kok Kiang, Assistant Managing Director of the Singapore Economic Development Board. "Local engineers and technicians can look forward to acquiring sophisticated skillsets in data analytics, advanced materials and automation in this highly advanced facility, and pursue rewarding careers with leading names GE and SIAEC."
The joint venture is not expected to have a material impact on the financial performance of SIAEC in FY2017/18. None of the Directors of SIAEC has any interest, direct or indirect, in the transaction.