Spirit AeroSystems (NYSE: SPR) announced today a planned expansion of its aftermarket presence in the Asia-Pacific region by signing a joint venture agreement with Evergreen Aviation Technologies Corporation (EGAT). The new agreement is expected to complement Spirit's recent acquisition of Applied Aerodynamics and last year's acquisition of select Bombardier assets, and further strengthen its global maintenance, repair and overhaul (MRO) capabilities. Under the joint venture agreement, Spirit and EGAT will form a new company, Spirit Evergreen Aftermarket Solutions (SEAS), and will transfer repair capabilities to SEAS, increasing manufacturing expertise and services to meet growing fleet demands in the region.
"Spirit AeroSystems is strategically expanding our capabilities in the Asia-Pacific region because the local fleet operators need affordable, efficient repairs, and we're in a position to deliver on that need with our expertise and quality MRO services," said Jim Lickteig, Senior Director of Aftermarket Solutions at Spirit AeroSystems. "By embarking on these new relationships, we will be better prepared to help passenger and freight carriers in the region remain competitive as the industry continues to recover from the pandemic."
Previously, Spirit entered into a multi-year agreement with EGAT in September 2020 in which Spirit provided maintenance services in the Taiwan facility on products the aerostructures company manufactures, including the 777 GE90/Trent800 nacelle, 737 CFM56-7B thrust reverser, and flight control surfaces along with broader nacelle MRO services on the CF6 powered aircraft and A320. By enhancing this existing commercial agreement with a joint venture agreement, Spirit and EGAT will continue working to expand capabilities to better service customers in the region.
"EGAT is excited to enter into the business venture with Spirit to collectively deliver optimal business propositions to fleet operators and partners in the region. EGAT's corporate values of transparency, honesty and integrity infuses well with Spirits' transparency, collaboration and inspiration," said Kin Chong, executive vice president of Business Coordination Division at EGAT. "Carriers in the region can expect more responsive service solutions."
In addition to Taiwan, Spirit also operates MRO locations in Wichita, Kan., Dallas, Tex., Western Europe, North Africa, and East Asia. To learn more about Spirit's global MRO solutions and recent growth, visit our website.
While the joint venture agreement has been signed, forming the joint venture is subject to the satisfaction of certain conditions precedent including foreign investment approval.