ST Aerospace and Marubeni Corporation Partner on Engine Leasing

ST Aerospace and Marubeni Corporation (Marubeni)  announced that the two organizations have concluded joint venture (JV) discussions to form an engine leasing company in Singapore. The new JV company, Total Engine Asset Management Pte Ltd (TEAM), will be equally owned (50:50) by ST Aerospace and Marubeni. Jointly managed by ST Aerospace and Marubeni, TEAM’s initial engine leasing portfolio will include the CFM56-3, CFM56-5B and CFM56-7B engines that mainly power narrow-body aircraft such as the Airbus A320 and Boeing 737. The JV plans to invest approximately US$100m (about S$123.2m) worth of assets within the first two years, with equity injection of up to US$40m (about S$49.3m). TEAM is expected to commence operations in the second half of 2011. The new JV will leverage ST Aerospace’s expertise in total engine support, including engine technical management and engine Maintenance-By-the-Hour (MBH), alongside Marubeni’s  experience in financing and marketing knowledge, to bring value added solutions to customers worldwide. “TEAM adds a new dimension to the engine total support capabilities already in place within ST Aerospace. This new engine leasing business broadens the range of ST Aerospace’s aftermarket services.” CHANG Cheow Teck, president, ST Aerospace


Leave a Reply