ST Engineering Aerospace arm sets up MRO JV with Vietnam Airlines

ST Engineering Aerospace arm sets up MRO JV with Vietnam Airlines:

7 June 2019: The aerospace arm of Singapore Technologies Engineering and Vietnam Airlines Engineering Company (VAECO) has incorporated a new joint venture company, Vietnam Singapore Technologies Engineering Aerospace Co. Ltd. (JVCo), in Vietnam.

By setting up the JVCo, the company can establish its Group's first presence in Vietnam. The JVCo was set up with a paid up capital of US$3.9m (approximately S$5.3m) to offer component Maintenance, Repair & Overhaul (MRO) solutions. VAECO has 51 per cent stake in the JVCo and ST Engineering has a 49 per cent.

The JVCo will leverage Vietnam Airlines' current maintenance facilities at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City by investing in new infrastructure to carry out component MRO work at these facilities.

The new component MRO facilities will start its operations in mid-2019 to cater to Vietnam Airlines' requirements and the region's rising needs for aircraft component MRO services. These facilities will be able to support aircraft types including but not limited to the A320 Family, A350, Boeing 787 and ATR72, and perform MRO work on pneumatics, electrical components, hydraulics, wheels and brakes as well as safety equipment.

"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," said Lim Serh Ghee, President of ST Engineering's Aerospace sector. "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."