Eaton and SIA Engineering Company have signed an agreement to form a component MRO joint venture (JV). The JV will inspect, test, repair, maintain, modify and overhaul Eaton-manufactured aircraft components installed on airframe and engine fuel systems and hydraulics systems.
The JV builds presence and service capacity for Eaton and SIAEC customers in the Asia Pacific region. Under the agreement, Eaton will hold a 51% equity stake in the JV, with SIAEC holding the remaining 49%. The initial issued and paid-up share capital will be USD 16 million. Eaton and SIAEC will each subscribe to the shares in cash and in proportion to their corresponding equity stake. The agreement and services to be provided are subject to the receipt of required regulatory approvals.
“The relationship with Eaton in Malaysia is strategic for SIAEC as we have been growing component capabilities and increasing the competitiveness of our component ‘Power-by-the-Hour’ product offering,” said Ng Chin Hwee, CEO of SIAEC. “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.”
“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,” said Nanda Kumar, president, Aerospace Group, Eaton. “We look forward to building our regional presence to serve customers throughout the product lifecycle in this growing market.”