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Eaton and SIAEC to Form Component MRO Joint Venture in Malaysia

  • 11 Jul 2023

Eaton and SIA Engineering Company Limited (SIAEC) have entered into a significant agreement to establish a joint venture (JV) focused on component maintenance, repair, and overhaul (MRO) services in Malaysia.  The JV will inspect, test, repair, maintain, modify and overhaul Eaton-manufactured aircraft components installed on airframe and engine fuel systems and hydraulics systems.

As part of this agreement, Eaton will assume a 51% equity stake in the JV, while SIAEC will hold the remaining 49%. The initial issued and paid-up share capital for the venture will amount to US$ 16 million. Both Eaton and SIAEC will subscribe to these shares in accordance with their respective equity positions, contingent upon obtaining the necessary regulatory approvals.

By expanding their collaborative efforts, Eaton and SIAEC intend to strengthen their presence and service capabilities for customers across the Asia Pacific region.

 

Mr Nanda Kumar, President of Aerospace Group, Eaton (left) and Mr Ng Chin Hwee, Chief Executive Officer of SIA Engineering Company (right) at the agreement signing event in Seattle, United States of America. Photo: SIAEC

Mr. Ng Chin Hwee, Chief Executive Officer of SIAEC, expressed the strategic importance of this partnership with Eaton in Malaysia, particularly in the context of its growing component capabilities and increasing the competitiveness of its component Power-by-the-Hour product offering. He noted, “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.”

Nanda Kumar, President of the Aerospace Group at Eaton, highlighted the significance of this new venture, saying, “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. We look forward to building our regional presence to serve customers throughout the product lifecycle in this growing market.”

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