Technology, defence and engineering group Singapore Technologies Engineering (ST Engineering) and Vietnam Airlines have established a maintenance, repair and overhaul (MRO) joint venture, Vietnam Singapore Technologies Engineering Aerospace (JVCo).
ST Engineering said that its aerospace unit and Vietnam Airlines subsidiary Vietnam Airlines Engineering (Vaeco) have set up the MRO joint venture, marking the entry of the Singaporean company into the Vietnam market.
Both companies had announced a memorandum of understanding on 26 April 2018.
JVCo has a paid-up capital of $3.9m (S$5.3m) and will provide component MRO solutions. ST Engineering has a 49% interest in JVCo and Vaeco 51%.
The joint venture company will invest in new infrastructure at Vietnam Airlines’ facilities at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City for component MRO work.
The new facilities are expected to begin operations this year and will be able to support several aircraft types, including A320, A350, Boeing 787 and ATR72. They will also carry out MRO work on pneumatics, hydraulics, electrical components, wheels and brakes and safety equipment.
ST Engineering aerospace sector president Lim Serh Ghee said: “Asia is a key region driving the growth of the global commercial aerospace sector. A presence in Vietnam, which enjoys double-digit growth in the air travel sector, will enable us to better capture that growth with an expanded MRO network in the region.
“Our partnership with Vietnam Airlines, which has existing maintenance facilities in the country, not only enables us to set-up capabilities within a very short timeframe but also allows us to start operating with a ready base load.”
“Asia is a key region driving the growth of the global commercial aerospace sector.”
ST Engineering provides aircraft component management and support services, including its Maintenance-By-the-Hour programme, through a global network of distribution centres, satellite stores and in-house and external repair shops.
The company also has expertise in airframe and aerostructure MRO, which is expected to help the joint venture firm in its future expansion into a wider range of aircraft maintenance solutions.
ST Engineering specialises in the aerospace, electronics, land systems and marine sectors with offices in Asia, the Americas, Europe and the Middle East.