SIA Engineering Company launches a new engine division and wants to expand into MalaysiaRomain Guillot & Emilie Drab
le 11/03/2021 , Maintenance aéronautique
SIA Engineering Company (SIAEC), the MRO division of Singapore Airlines Group, has created a new Engine Services Division (ESD), specializing in engine services. It intends to accelerate its growth in this area.
ESD will become its lead business channel to complement SIAEC's network of engine Joint Ventures in Singapore. The new division will develop and provide a comprehensive portfolio of engine-related value-added services, including engine maintenance, parts repair, storage and preservation, material management, on-wing services and engine testing.
To do this, SIAEC will invest in a new engine shop to cope with a growing demand in engine quick-turn shop visit. The initial setup of the facility will support maintenance work on the CFM LEAP engines, in line with the maintenance services agreement with Safran Aircraft Engines announced in December 2019. The new facility The facility will require a gradual manpower ramp-up to more than 100 staff when it commences operations by January 2022, with options for future new capability and capacity expansion.
SIAEC also wants to take over the components activities of SR Technics in Malaysia
The Singaporean company has also entered into a memorandum of understanding (MoU) with SR Technics to take over part or all of the activities of SRT Malaysia. This maintenance center set up in 2014 by SR Technics in Selangor, near Kuala Lumpur, specializes in repair, test and overhaul services of Airbus A320, A330, A340 and Boeing 737NG components for operators based in the Asia Pacific region.
SRT Malaysia has repair capabilities for over 800 SKUs and is approved by the FAA, EASA, CAAC as well as regional regulators such as Thailand's CAAT. In addition, this center is only 380 kilometers from Singapore by road.
According to SIAEC, this acquisition project was concluded following an examination of the synergies that SRT Malaysia could bring and the two parties will subsequently enter into negotiations on the terms of this transaction. No date has been put forward for a possible closing of this transaction. Furthermore, SIAEC's announcement does not mention formally SRT's logistics activities in Kuala Lumpur.
On the other hand, we know that component repairs is no longer a priority for the Swiss MRO company, SR Technics having announced a major strategic shift last July by wanting to focus on engine maintenance services as well as on its line maintenance activities.
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